Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — 1HFY25 Earnings Presentation
34 slides from Lifestyle Communities's earnings presentation, February 2025
Slide 1: Results Presentation for the half year ended 31 December 2024
Results Presentation personal use only for the half year ended 31 December 2024
Slide 2: Contents
Contents Appendix Business update. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A.1 Model of living. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 1HFY25 results snapshot . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 3: A business for purpose
A business for purpose An empowering and engaging homeowner offering that re-imagines traditional retirement. personal use only An affordable housing option for Australians aged over 50. A sustainable financial model where homeowners can prosper. A transparent sales approach that engages High qualit
Slide 4: Business update
Business update personal use only SECTION 1 Business Lifestyle Riverfield Clubhouse update Lifestyle Communities® Life. Unlimited.
Slide 5: 1HFY25 results snapshot
Business update 2 1HFY25 results Reasonable half year result in a snapshot tough operating environment personal use only Key metrics Measure 1HFY25 2HFY24 1HFY24 2HFY23 1HFY23 • New home settlements were higher than the prior New home settlements Homes 137 187 124 215 141 corresponding period (137 v
Slide 6: New home sales performance
Business update 3 New home sales performance Media coverage Trends are encouraging Media coverage commenced commenced Leads in Jan/Feb but there is Appointments personal use only still more work to do • Leads, appointments and sales 257 1,079 247 1,212 1,150 1,169 1,031 1,131 1,163 201 201 195 in Ja
Slide 7: Sales slowed due to economic headwinds then media exposure
Business update 4 Sales slowed due to economic headwinds, then dropped materially following the negative media exposure personal use only External environment Total sales per period (no. of homes) • Low consumer confidence, inflation, and interest rate 300 rises resulted in deteriorating conditions
Slide 8: Resales performance
Business update 5 Resales performance Resales volumes have also been affected by market conditions - homes are taking longer to sell personal use only 1HFY25 2HFY24 1HFY24 2HFY23 1HFY23 No. of resales settlements 1 No. of settlements 58 76 75 90 88 Average tenure Years 7.7 7.0 7.2 7.0 6.2 Average DM
Slide 9: Actions in progress following the material slowdown in sales
Business update 6 Actions in progress following the material slowdown in sales personal use only • As the sales rate has continued to slow, there has been a build up of: Contributing • Victorian Economy • Brand/Reputation – Completed housing inventory factors • Competition • Rising construction cost
Slide 10: Capital management initiatives
Business update 7 Capital management initiatives personal use only Debt facility restructure — February 2025 Previous debt maturities — $700m million facility ($m) • Total debt facility right-sized (down) to $660 million, reflecting reduced 300 285 near-term development requirements 265 • Interest C
Slide 11: Portfolio optimisation — inventory
Business update 8 Portfolio optimisation — inventory Carrying value Optimal personal use only No. completed Dec-24 carrying value homes $m Optimal levels $m Wollert 8 1.9 8 1.9 Deanside 67 15.2 15–20 3.4–4.5 St Leonard - The Shores 33 9.0 15–20 4.1–5.5 Meridian 24 6.0 15-20 3.8–5.0 Woodlea 55 16.9 1
Slide 12: Portfolio optimisation — land
Business update 9 Portfolio optimisation — land personal use only Planning + Est. carrying Excess land civil works value at • By 30 June 2025 we will be carrying 8 sites that will Land cost completed 30-Jun-25 be on pause $m $m $m • This represents circa $273 million of committed capital Land settle
Slide 13: Financial Results
Financial Results 10 At home at Lifestyle St Leonards personal use only SECTION 2 Financial Results Lifestyle Communities® Life. Unlimited.
Slide 14: Growing annuity income stream
Financial Results 11 Growing annuity income stream personal use only There are two components to the Home sites under management 2 annuity income stream: 4,500 Site rental fee 3,997 4,000 3,673 • $220 per single and $254 per couple, per week, per home 3,500 3,334 • Indexed at greater of CPI or 3.5%
Slide 15: Income statement
Financial Results 12 Income statement $000s 1HFY25 2HFY24 1HFY24 2HFY23 1HFY23 Community operations personal use only Site rental 22,597 20,949 20,487 17,283 16,961 • 137 New Home Settlements (1HFY24: 124) and Community operating costs (10,340) (8,946) (9,437) (8,013) (7,206) 58 Resales Settlements
Slide 16: Fair value adjustments
Financial Results 13 Fair value adjustments personal use only Pre-tax • The fair value adjustment typically comprises three Reconciliation of operating fair value adjustment to components: statutory fair value adjustment (pre-tax) 1HFY25 2HFY24 1HFY24 2HFY23 1HFY23 1. The value uplift created when a
Slide 17: Balance sheet
Financial Results 14 Balance sheet personal use only • The inventory balance includes: Balance sheet highlights – $153 million for display homes and houses $000s 1HFY25 2HFY24 1HFY24 2HFY23 1HFY23 in progress Cash and cash on deposit 1,496 4,095 1,839 1,233 1,050 – $191 million for Civil and Infrast
Slide 18: Inventory balances by Project
Financial Results 15 Inventory balances by Project personal use only Civils+ No. homes • At each development, we sell a mix of: Inventory capitalised Housing Total completed No. completed – Build-to-order homes Community phase interest ($m) $m $m not sold display homes – Ready-to-move-in homes Wolle
Slide 19: Cash flow
Financial Results 16 Cash flow personal use only Community operations cash flows: $m 1HFY25 2HFY24 1HFY24 2HFY23 1HFY23 Community operations cash flows • Site rentals continued to increase due to a higher Site rentals 24.1 20.9 20.5 17.2 17.0 number of homes under management Deferred Management Fees
Slide 20: Development cash flows split by project
Financial Results 17 Development cash flows split by project personal use only Cash Projects recovery Cash draw not yet 1HFY25 2HFY24 1HFY24 • Commencement of projects not yet started is subject to Community projects projects started cash flow cash flow cash flow assessment of market conditions once
Slide 21: Debt covenants and key metrics
Financial Results 18 Debt covenants and key metrics Lifestyle has three main debt and lending covenants which are regularly stress tested. They are: personal use only Subsequent Event: The details on this page represent the debt position as at 31 December 2024. In February 2025 the debt facility Sec
Slide 22: Outlook
Outlook 19 personal use only SECTION 3 Outlook Lifestyle Communities® Life. Unlimited.
Slide 23: Outlook
Outlook 20 Outlook Despite the near-term market conditions, the fundamental drivers of retirement living demand remain strong and underpin our confidence in the long-term outlook for our business personal use only Trading Pipeline status as of 23 February 2025 • Lead indicators showing early signs o
Slide 24: New CEO appointment
Outlook 21 New CEO appointment personal use only Henry Ruiz appointed Chief Executive Officer commencing on the 5th of March. Mr Ruiz is a seasoned executive with over 25 years’ experience in the property, digital media and technology sectors. For the last 15 years Henry has been with REA Group, whe
Slide 25: Appendix
Appendix 22 personal use only Appendix Lifestyle Communities® Life. Unlimited.
Slide 26: A.1 Model of living
Appendix 23 A.1 Model of living How does the Lifestyle Communities® model of living work? Homeowners at Lifestyle Communities® own their own home and lease the land upon personal use only which their homes are located, via a weekly site fee and a deferred management fee. 75-80% On average, homes typ
Slide 27: A.2 Growing recurring revenue stream
Appendix 24 A.2 Growing recurring revenue stream Lifestyle Communities® business has two core elements personal use only 1. Creating communities 2. Managing communities A mix of equity and debt capital is used to develop greenfield Completed communities generate recurring revenue streams which are s
Slide 28: A.3 Portfolio snapshot 1HFY25
Appendix 25 A.3 Portfolio snapshot 1HFY25 Homes occupied or sold Total homes Homes sold Homes sold and and awaiting settlement Communities in communities and occupied awaiting settlement No. % personal use only Established Communities 16 fully completed Communities 3,063 3,063 3,063 100% Communities
Slide 29: A.4 Portfolio overview
Appendix 26 A.4 Portfolio overview Yarrawonga Shepparton Focus remains on Melbourne and Geelong’s growth corridors: • Cluster approach – each growth 33 Communities in planning, corridor can sustain multiple communities development or under management. personal use only • Capitalise on brand North •
Slide 30: A.5 Dividend policy
Appendix 27 A.5 Dividend policy personal use only Dividends declared over time As a general principle, Lifestyle Communities® intends to pay dividends out of post-tax operating cashflow 14 generated from community management including: • Operating cash flow generated from community 12 11.5 managemen
Slide 31: A.6 Sales and settlements
Appendix 28 A.6 Sales and settlements personal use only New home settlements Net sales commitments Resale home settlements 1HFY25 1HFY24 1HFY25 1HFY24 1HFY25 1HFY24 Existing Communities - Sold out 57 66 Existing Communities - Under Construction Wollert North 11 29 2 19 Deanside 5 19 3 13 St Leonards
Slide 32: A.7 Cash flow analysis 1HFY25
Appendix 29 A.7 Cash flow analysis 1HFY25 Completed St Leonards Pakenham Clyde Phillip Ocean Communities Communities 3 Wollert Deanside - The Shores East Meridian Riverfield Woodlea Island Bellarine Merrifield Grove 2.0 Yarrawonga in planning 4 Total personal use only Community operations cash flows
Slide 33: A.8 Cash flow analysis 1HFY24
Appendix 30 A.8 Cash flow analysis 1HFY24 Ocean personal use only Completed Wollert Pakenham Clyde Phillip Grove Communities Communities3 North Deanside St Leonards East Meridian Riverfield Woodlea Island Bellarine Merrifield 2.0 Yarrawonga in planning4 Total Community operations cash flows Site ren
Slide 34: Important notice and disclaimer
31 Important notice and disclaimer personal use only This Presentation contains general background information about Lifestyle Communities® Limited (LIC) and its activities current at 31 December 2024 unless otherwise stated. It is information in a summary form and does not purport to be complete. I