Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — Investor Presentation (February 2024)
24 slides from Lifestyle Communities's investor presentation, Feb 22, 2024
Slide 1: Equity Raising Presentation
Equity Raising Presentation A business for purpose 22 February 2024
Slide 2: Important notice and disclaimer
Important notice and disclaimer This investor presentation (“Presentation”) is dated 22 February 2024 and has been prepared by Lifestyle FINANCIAL INFORMATION Communities Ltd (ABN 11 078 675 153) (“Lifestyle Communities”). By attending an investor presentation or All figures in this Presentation are
Slide 3: Important notice and disclaimer
Important notice and disclaimer No representation is made by Lifestyle Communities, the underwriter and their respective advisors, affiliates, ● exclude and disclaim all liability (including without limitation for negligence) in respect of and make no related bodies corporate, directors, officers, p
Slide 4: Executive Summary
Executive Summary ● Lifestyle Communities (LIC) now has a portfolio of 22 communities in operation with over 5,300 homeowners ● LIC has 10 projects in active development(1) and two scheduled for launch in FY24, which are expected to underpin increased Business settlements over the next 3-years Updat
Slide 5: Market Backdrop
SECTION 1 Market Backdrop Lifestyle Communities – Equity Raising Presentation – February 2024
Slide 6: Macro themes underpinning our strategy
Macro themes underpinning our strategy Ageing Structural growth Meeting needs of population in sector customers ● Today: ~9.3m of the Australian population >50 ● Increasing need for affordable housing options ● Insufficient savings: a significant number of years old Forecast: ~16.1 million by 2063 ●
Slide 7: Land Market Dynamics
Land Market Dynamics Australian Private Residential Building Approvals (since 2019) Challenging conditions… Unfavourable house and land market: 24,000 … Subsequent declining housing Sharp rise in − Affordability headwind: 13 consecutive interest rate approvals leading some building approvals landown
Slide 8: Positioning for Growth
SECTION 2 Positioning for Growth Lifestyle Communities – Equity Raising Presentation – February 2024
Slide 9: Market leadership and focused strategy
Market leadership Market leadershipand focused and strategy focused strategy Highly focused and experienced in Victoria ● 22 communities in operation(1) ● LIC was founded in 2003, and now has 21 years of ● 3,673 homes under management experience in developing land lease communities ● 6,382 homes in
Slide 10: Positioning for the next phase of growth
Positioning for the next phase of growth ● Existing portfolio has a concentration of projects settling over FY25-26 Settlement Profile of Communities in Development (with release of capital for re-investment post settlement) Community FY24 FY25 FY26 FY27 FY28+ ● Current market conditions give opport
Slide 11: Upfront Investment Delivers Long-term Annuity-like Cash Flows
Upfront Investment Delivers Long-term Annuity-like Cash Flows ● Need for capital early in life of Illustrative example of unlevered Greenfield development cash flow profile (years)(2) project for land acquisition and development Aim to recover 100% of Long-term, annuity-like 4–6 year development cas
Slide 12: LIC has a proven track record of delivering growth
LIC has a proven track record of delivering growth Driving value for shareholders Consistent execution of strategy Long-term growth in annuity-like income and for the community ● Sustained, long-term growth in homes under ● LIC has a track record of delivering strong ● LIC has demonstrated a consist
Slide 13: Offer Details
SECTION 3 Offer Details Lifestyle Communities – Equity Raising Presentation – February 2024
Slide 14: Overview of the Equity Raising
Overview of the Equity Raising Offer structure ● Fully underwritten 1-for-6.08 Accelerated Non-renounceable Entitlement Offer to raise approximately $275 million (“Entitlement Offer”) and price − The Entitlement Offer represents approximately 17.2 million New Shares, or approximately 16.4% of total
Slide 15: Sources and Uses
Sources and Uses Sources and Uses of Funds Use of Proceeds Source ($ million) ● The Entitlement Offer provides LIC with funding capacity to support an expansion of its greenfield development strategy (acquire land, Entitlement Offer Proceeds 275 develop site, recycle capital) Total Sources 275 − Pot
Slide 16: Strengthening Balance Sheet
Strengthening Balance Sheet Dec-23 Impact Pro forma ● Pro-forma balance sheet shown $ million reported of Offer(2) Dec-23 Post-Offer(3) assumes Entitlement Offer net proceeds of $267 million are initially Cash and cash equivalents 2 2 applied to repay debt Investment properties 1,109 1,109 ● Post th
Slide 17: Indicative Timetable
Indicative Timetable Key Event Date(1) Trading halt and announcement of Entitlement Offer, Institutional Entitlement Offer opens Thursday, 22 February 2024 Institutional Entitlement Offer closes (1.00am AEDT) Friday, 23 February 2024 Announce results of Institutional Entitlement Offer Friday, 23 Feb
Slide 18: Appendix
Appendix Lifestyle Communities – Equity Raising Presentation – February 2024
Slide 19: Key Risks
Key Risks Key risks and uncertainties associated with the business this legislation could result in a reduction in resident demand to enter into leases in the communities and This section discusses some of the key risks and uncertainties associated with an investment in Lifestyle therefore impact Li
Slide 20: Key Risks (cont’d)
Key Risks (cont’d) Funding, sales and settlement risk Due to the capital recycling nature of its business model, Lifestyle Communities is reliant on continuing sales and Accounting standards settlements to fund its development pipeline and remain compliant with the financial covenants in its funding
Slide 21: Key Risks (cont’d)
Key Risks (cont’d) Pandemic vi. the announcement of acquisitions, strategic partnerships, joint ventures or capital commitments by Lifestyle Communities or its competitors; Lifestyle Communities’ Position, and those of its suppliers and contractors, as well as its homeowners, may be adversely affect
Slide 22: Key Risks (cont’d)
Key Risks (cont’d) Underwriting risk Offer; Lifestyle Communities has entered into an underwriting agreement under which the underwriter has agreed to ● Lifestyle Communities or any of its directors or specified senior executives engage in fraud or are charged in fully underwrite the Entitlement Off
Slide 23: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of Lifestyle Communities in Language of documents in Canada. Upon receipt of this document, each investor in Canada hereby confirms any jurisdiction in which it would be unlawful. In par
Slide 24: International Offer Restrictions (cont’d)
International Offer Restrictions (cont’d) New Zealand No offering or marketing material relating to the New Shares has been, nor will be, filed with or approved by any This document has not been registered, filed with or approved by any New Zealand regulatory authority under Swiss regulatory authori
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