Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — H1 FY2021 Earnings Presentation
32 slides from Lifestyle Communities's earnings presentation, Feb 15, 2021
Slide 1: Results Presentation Half year ended 31 December 2020
Results Presentation Half year ended 31 December 2020 February 2021
Slide 2: Contents
Contents Appendix Overview 1 A.1 Model of Living 22 Operations Update 8 A.2 Growing Recurring Revenue 23 Financial Results 13 A.3 Dividend Policy 24 Outlook 18 A.4 Sales and Settlements 25 Summary 20 A.5 Deferred Management Fees 26 A.6 Cash Flow Analysis 1HFY21 27 A.7 Cash Flow Analysis 1HFY20 28 A
Slide 3: Our story
1.1 Our story 2012 Major capital raising of 2004 $36m to drive future growth Development of first community at Brookfield. First homeowner 2020 moves in June 2005 Over 3,800 homeowners. Acquire land for 23rd community. New home referral rate >42% 1 Community 2 Communities 7 Communities 12 Communitie
Slide 4: A business for purpose
1.2 A business for purpose An affordable housing option for Australians aged over 50 A sustainable financial model where homeowners can prosper An empowering and engaging customer service offering that reimagines traditional retirement A BUSINESS FOR PURPOSE LIFESTYLE COMMUNITIES High quality resort
Slide 5: Financial Summary 1HFY21
Financial Summary 1HFY21 ($ Million) 1HFY20 ($ Million) 1.3 Overview Net profit after tax attributable to shareholders $14.1 $15.1 1HFY21 Results snapshot Total assets $643.6 $499.7 Equity $303.5 $267.2 Dividend (interim) 3.0 cents per share 3.0 cents per share Net debt $173.4 $126.7 Net debt to net
Slide 6: Overview 1HFY21 Highlights
1.4 Overview 1HFY21 Highlights • 72 new home sales and 88 new home settlements • 38 resale settlements of which 32 attracted a deferred management fee • Sales and settlements impacted by Covid-19 pandemic and associated restrictions in Melbourne • Profit after tax attributable to shareholders decrea
Slide 7: Portfolio overview and land acquisition strategy
1.5 Portfolio overview and land acquisition strategy 23 Communities in planning, development or under management Lifestyle Communities undertakes a detailed vetting of each potential site, and prioritises acquisitions based on Shepparton Focus remains on Melbourne and Geelong’s the following criteri
Slide 8: Portfolio continues to grow organically
Lifestyle Communities’ portfolio continues 1.6 Overview to grow organically through recycling capital Portfolio snapshot 1HFY21 Homes occupied or sold and awaiting settlement Total homes in Homes sold and Homes sold and Communities communities occupied awaiting settlement No. % Existing Communities
Slide 9: Operations Update
Section 2 7 Operations Update Walking the pups at Lifestyle Ocean Grove
Slide 10: Sales and settlements
2.1 Sales and settlements A BUSINESS FOR PURPOSE • 72 new home sales and 88 new home settlements No. of % % • Sales and settlements impacted by Covid-19 pandemic and Community Homes Sold Sold Settled Settled associated restrictions in Melbourne Shepparton 300 300 100 298 99 • Actively selling new co
Slide 11: Sales rates
2.2 Sales rates A BUSINESS FOR PURPOSE • Sales impacted by Covid-19 pandemic and Sales profile from date of first sale associated restrictions in Melbourne 125 • Sales tactics changed during lockdown – Historical average Focus shifted to knowledge building and Kaduna Park (Sep-18) information sharin
Slide 12: Developments in progress
2.3 Developments in progress 6 Communities in development phase A BUSINESS FOR PURPOSE LIFESTYLE COMMUNITIES Fully complete. 10 homes left to settle. 66% sold. Clubhouse due for 59% sold. Clubhouse completed and open completion in February 2021. for homeowner use. First homeowners settled in First h
Slide 13: Mount Duneed project fly-through
11 LIFESTYLE LIFESTYLE COMMUNITIES A BUSINESS COMMUNITIES A BUSINESS FOR PURPOSE FOR PURPOSE http://bit.ly/ProjectFly-through 2.4 Mount Duneed project fly-through
Slide 14: Financial Results
Se ct io n 3 Financial Results 12 A rendered image of the courtyard at Lifestyle St Leonards
Slide 15: Financial results
3.1 Financial results Annuity income will continue to increase through new home settlements, rental increases and resales of existing homes A BUSINESS FOR PURPOSE There are two components to the Homes Home sites under management annuity stream: 2,625 (2) 2,700 1. Site Rental Fee LIFESTYLE COMMUNITIE
Slide 16: Income statement
3.2 Income statement A BUSINESS FOR PURPOSE • New home settlements were 88 for the first half compared 1HFY21 1HFY20 % with 109 for the same period in the prior year Income statement ($’000) ($’000) Movement • Settlements were impacted by Covid-19 and the associated Home settlement revenue 34,373 40
Slide 17: Balance sheet
3.3 Balance sheet A BUSINESS FOR PURPOSE • Inventories increased due to: 1HFY21 2HFY20) % – Some settlement delays on finished houses due to Balance sheet highlights ($’000) ($’000) Movement Covid-19 Cash and cash on deposit 1,601 16,381 (90.2)% – Ramp-up in the build program at Wollert, Plumpton, a
Slide 18: Cash flow
3.4 Cash flow • The $25.4m outflow from operations included $35m cash draw for development activities at Mount Duneed, Kaduna Park, Wollert North, Plumpton and St Leonards A BUSINESS FOR PURPOSE • Included in payments to suppliers and employees is $35.1m for 1HFY21 1HFY20 community infrastructure wh
Slide 19: Outlook
Section 4 Outlook 17 Homeowners at Lifestyle Ocean Grove enjoying their private cinema
Slide 20: Settlement progress
4.1 Settlement progress Developing communities A BUSINESS FOR PURPOSE • Currently funded and resourced to acquire at least two new sites per year, subject to identification of appropriate sites Community FY21 FY22 FY23 • With the current pipeline of projects, the business reaffirms its Q1 Q2 Q3 Q4 Q
Slide 21: Summary
Summary A shot of the Geelong clubhouse 19
Slide 22: Summary
5.1 Summary • Enquiries, sales, and settlements impacted by A BUSINESS FOR PURPOSE Covid-19 pandemic and associated restrictions in Melbourne • 1HFY21 delivered 88 new home settlements and 32 resale settlements that attracted a DMF • Sales tactics changed during lockdown – focus shifted to knowledge
Slide 23: Appendix
Appendix 21 A rendered streetscape image at Lifestyle St Leonards
Slide 24: Model of living
A.1 Model of living How does the Lifestyle Communities’ model of living work? A BUSINESS FOR PURPOSE Homeowners at Lifestyle Communities own their own home and lease the land upon which their homes are located, via a weekly site fee. Homes typically priced at 75-80% 75-80% of the median house price
Slide 25: Growing recurring revenue streams
A.2 Growing recurring revenue streams Lifestyle Communities’ business has two core elements A BUSINESS FOR PURPOSE 1. Creating communities 2. Managing communities A mix of equity and debt capital is used to develop greenfield Completed communities generate recurring revenue streams sites to create n
Slide 26: Dividend policy
A.3 Dividend policy A BUSINESS FOR PURPOSE As a general principle, Lifestyle Communities intends to pay dividends out of post-tax operating cashflow generated from community management including: • Operating cash flow generated from community management (net rental and DMF) • Apportionment of corpor
Slide 27: Sales and settlements
A.4 Sales and settlements New home A BUSINESS FOR PURPOSE settlements Net sales commitments Resale home settlements Existing Communities - sold out 1HFY21 1HFY20 1HFY21 1HFY20 1HFY21 1HFY20 Brookfield at Melton 9 4 Seasons at Tarneit 2 Warragul 1 4 Casey Fields at Cranbourne (1) 2 3 Shepparton 6 14
Slide 28: Deferred management fees
A.5 Deferred management fees A BUSINESS FOR PURPOSE Casey Chelsea Berwick Ocean Brookfield Seasons Warragul Fields Shepparton Heights Hastings Lyndarum Officer Geelong Waters Bittern Grove Total Historical resales (1) 146 32 67 54 22 46 39 11 16 7 9 4 1 454 Average tenure (years) 6.8 5.9 4.5 4.3 3.9
Slide 29: Cash flow analysis 1HFY21
A.6 Cash flow analysis 1HFY21 A BUSINESS FOR PURPOSE Supplementary Cash Flow Completed Ocean Mount Kaduna Wollert Communities Analysis for 1HFY21 Communities Grove Duneed Park North Plumpton St Leonards in Planning Total Total Number of Homes 2,284 220 191 169 246 266 199 1,099 4,674 Settled 1HFY21
Slide 30: Cash flow analysis 1HFY20
A.7 Cash flow analysis 1HFY20 A BUSINESS FOR PURPOSE Supplementary Cash Flow Completed Berwick Ocean Mount Kaduna Wollert Communities Analysis for 1HFY20 Communities Shepparton Geelong Waters Bittern Grove Duneed Park North Plumpton in Planning Total Total Number of Homes 1,395 300 164 216 209 220 1
Slide 31: Important notice and disclaimer
Important notice and disclaimer warranty, express or implied, beliefs of LIC’s management cautioned not to place undue is made as to the fairness, as well as assumptions made reliance on forward-looking accuracy, completeness or by and information currently statements and LIC assumes correctness of
Slide 32: Lifestyle Communities Limited
Lifestyle Communities Limited Level 1, 9-17 Raglan Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au
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