Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — Investor Presentation (November 2007)
14 slides from Lifestyle Communities's investor presentation, Nov 23, 2007
Slide 1: November 07 – Agenda and Snapshot
For personal use only November 07 Commercial in confidence I Agenda • Snapshot • Business overview • Customer profile • Market summary • Business today • Financial overview • Wrap up and questions Commercial in confidence I Snapshot • Develop and manage affordable, high quality, age-qualified villag
Slide 2: What we do – How it works
What we do ….. Two key activities and revenue streams For personal use only Commercial in confidence I How it works • Typical land size: 5-10 hectares • Generate 22-28 units per hectare • Can support land price of $200,000 - $850,000 per hectare • Focus on outer suburban and regional areas Commercia
Slide 3: Development – a unique model; Generate annuity income
How it works For personal use only Commercial in confidence I Development – a unique model • Sale proceeds fully recover sunk costs including: • Primary infrastructure • House construction • Lifestyle Communities retains ownership of land • Building permit exempt • Land tax exempt • Stamp duty exemp
Slide 4: Focus group findings – Who will buy?
Focus group findings For personal use only Commercial in confidence I Who will buy? A typical customer: • Over 55 and could be working or retired • Living in existing home for last 30 – 40 years • Neighbourhood has changed • House needs some improvement / maintenance • Garden needs too much maintena
Slide 5: Another customer … Joy Briggs
Another customer … Joy Briggs For personal use only • Lived in Melton and moved into the village in June 06 • Bought at Brookfield Village because there was nothing else around that offered her independence in being able to cook her own meal and her life not be ruled by a clock • Retired as a nurse
Slide 6: Market Summary
Market Summary For personal use only Commercial in confidence I Drivers of industry growth 3 key drivers 1. Changing demographics – the ageing of Australia 2. Changing perceptions with consumers • Increased acceptance of independent living within a gated community 3. Changing perceptions with financ
Slide 7: Changing perceptions
Changing perceptions For personal use only • Australian industry is in its infancy when compared to markets in USA & UK • 4% of market penetration in Australia compared to 12% in USA Commercial in confidence I Not everybody is “wealthy”… • 66% of all retirees are seeking housing under $250,000 • 75%
Slide 8: Business today – Development pipeline
Business today For personal use only Commercial in confidence I Development pipeline Cost per Land cost Sites available Sites & raw cost hectare Current status per site for development Brookfield $150k 60% sold $6,000 230 9 hectares (1.35M) Warragul Planning and $134k dev. approval $11,000 180 15 he
Slide 9: Strategies for growth
Strategies for growth For personal use only • Capitalise on existing development pipeline • Acquisition of additional sites: • Metro Melbourne • Regional Victoria • Interstate • Possible acquisition of existing “like” businesses • Ongoing investigation of other affordable concepts • Objective: 2500
Slide 10: Financial overview – profit & loss
Key people For personal use only Commercial in confidence I Financials Commercial in confidence I Financial overview – profit & loss $’000 FY07 Revenue 9,245 Asset revaluation 7,187 Expenses (9,159) NPAT 7,274 Commercial in confidence I
Slide 11: Financial overview – balance sheet
Financial overview – balance sheet For personal use only $’000 FY07 Current Assets 9,814 Non-Current Assets 19,526 Total Assets 29,340 Current Liabilities (7,066) Non-Current Liabilities (3,289) Total Liabilities (10,355) Net Assets 18,985 Commercial in confidence I Financial overview - debt facilit
Slide 12: Summary of income streams
Summary of income streams For personal use only Commercial in confidence I Indicative development income - per unit Earnings before interest and tax Low High Revenue House sale (ex GST) $ 170,000 $ 240,000 Less average costs House construction costs $ 90,000 $ 90,000 Selling and administration expen
Slide 13: Director shareholdings
Indicative income from share of For personal use only resale (DMF) - per site Low High Property resale price $ 180,000 $ 280,000 OMC % 15% 15% Gross income $ 27,000 $ 42,000 Expected annual turnover 10% 10% Average annual income $ 2,700 $ 4,200 Commercial in confidence I Director shareholdings As at
Slide 14: Summary
Summary For personal use only • Market opportunity • Exponential growth with the ageing population in Australia • Affordability is key driver for housing demand in the future • Most people don’t have $300k+ to spend on housing • Lifestyle Communities • Services the affordable, age qualified housing
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