Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — H1 FY2023 Earnings Presentation
33 slides from Lifestyle Communities's earnings presentation, Feb 13, 2023
Slide 1: A Business for Purpose: Results Presentation
A Business for Purpose Results Presentation for the half year ended 31 December 2022 Lifestyle St Leonards indoor pool
Slide 2: Contents
Contents Appendix A business for purpose A.1 Our story and purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A.2 Model of living . . . . . . . . . . . . . . . . . . . .
Slide 3: A business for purpose
A business for purpose An empowering and engaging customer An affordable housing service offering that option for Australians A sustainable aged over 50. reimagines traditional financial model retirement. where homeowners can prosper. High quality resort-style facilities that exceed expectation and
Slide 4: Overview
Artist’s impression of Lifestyle Woodlea Clubhouse SECTION 1 Overview Lifestyle Communities— HY results presentation — December 2022 1
Slide 5: 1HFY23 results snapshot
1HFY23 Overview results snapshot Financial summary Growing annuity income streams ($m) 1HFY23 1HFY22 Site rental fees Deferred management fees Net profit after tax attributable to shareholders 25.2 27.5 $25 Total assets 1,084.3 925.9 Equity 474.3 400.3 $20 $6.3m Dividend (cents per share) 5.5 4.5 $4
Slide 6: 1HFY23 highlights
1HFY23 Overview Artist’s impression of Lifestyle Woodlea Clubhouse highlights • Four new projects launched – Woodlea, Bellarine, Phillip Island, St Leonards – The Shores • Lifestyle Mount Duneed and Lifestyle Kaduna Park completed final settlements • 214 new sales and 141 new home settlements • New
Slide 7: Portfolio overview and land acquisition strategy
Portfolio overview and land Overview acquisition strategy 28 Communities in planning, development or under management Lifestyle Communities undertakes a detailed Shepparton vetting of each potential site, and prioritises acquisitions based on the following criteria: Focus remains on Melbourne and Ge
Slide 8: Portfolio overview 1HFY23
Portfolio Overview overview 1HFY23 Homes occupied or sold and awaiting settlement Total homes Homes sold Homes sold and Communities in communities and occupied awaiting settlement No. % Existing Communities - Sold out Brookfield at Melton 228 228 228 100% Seasons at Tarneit 136 136 136 100% Warragul
Slide 9: Operations update
Artist’s impression of Lifestyle Riverfield Clubhouse SECTION 2 Operations update Lifestyle Communities— HY results presentation — December 2022 6
Slide 10: Sales and settlements
Sales and settlements Operations update No. of • 214 new home sales Community homes Sold % sold Settled % settled • Launched new sites for sale as follows: Wollert North 246 173 70% 129 52% – Woodlea: September 22 Deanside 266 139 52% 104 39% – Bellarine: September 22 St Leonards – The Waves 199 197
Slide 11: Sales rates
Sales rates Operations update • Timing of projects affected aggregate Sales profile from date of first sale sales in the period 220 • Existing projects at Kaduna Park, Mount 200 Duneed and St Leonards are all sold out Meridian St Leonards - The Waves (Sep-21) (Aug-20) • New projects at Woodlea, Bell
Slide 12: Spotlight on Meridian
Operations update Spot light on MERIDIAN LifeSTYLE MERIDIAN 60% Sold 25% Settled One of Lifetstyle Communities smartest communities yet that redefines the downsizing SOLAR-POWERED lifestyle for our homeowners. COMMUNITY It’s the culmination of 20 years of experience and MICRO-GRID intimate knowledge
Slide 13: New Land Acquisition - Warragul II
MELBOURNE CBD New Land Acquisition 106KM / 1 HOUR 26 MINUTES BRA - Warragul II Future SCENIC ND RESERVE YC Community REE KR D • Located approximately 4.3km from our existing Warragul community ELEN CLOSE • Adjacent to future neighbourhood shopping centre PLAYGROUND BROOKER ST WARRAGUL • 8ha site wit
Slide 14: Introducing Club Lifestyle
Introduc in g Operations update Club Lifestyle Club Lifestyle unlocks a world of exclusive benefits, adventures and unique experiences that only come with being a homeowner at Lifestyle Communities. We’re helping our homeowners to live ‘Even Bigger’ lives and creating a differentiated value proposit
Slide 15: Financial results
Artist’s impression of Lifestyle Bellarine Clubhouse indoor pool area SECTION 3 Financial results Lifestyle Communities— HY results presentation — December 2022 12
Slide 16: Financial results
Financial results Financial results There are two components to the Home sites under management annuity stream: 4,000 1. Site Rental Fee 3,500 3,334 2 • $199 per single and $230 per couple, per 2,958 week, per home 3,000 2,625 • Indexed at greater of CPI or 3.5% p.a. 2,500 2,393 • Gross rental incom
Slide 17: Income statement
Income statement Financial results 1HFY23 1HFY22 Movement • New home settlements were 141 (1HFY22: 166) Income statement ($000) ($000) (%) • Project phasing impacted settlements: Home settlement revenue 67,219 72,491 (7.3%) Cost of sales 1 (52,948) (56,490) (6.3%) – Projects Completed: Mount Duneed,
Slide 18: Balance sheet
Balance sheet Financial results 1HFY23 1HFY22 Movement • The inventory balance includes: Balance sheet highlights ($000) ($000) (%) Cash and cash on deposit 1,050 519 102.3% – $78.8m for display homes and houses in progress Inventories 151,150 146,739 3.0% – $72.3m for Civil and Infrastructure works
Slide 19: Cash flow
Cash flow Financial results 1HFY23 1HFY22 • Receipts from customers decreased due to lower settlements Cash flow highlights ($000) ($000) but was partly offset by higher sales prices and increased Receipts from customers 99,769 101,478 annuity revenue and deferred management fees Payments to supplie
Slide 20: Outlook
Lifestyle Meridian Howitt kitchen and dining area SECTION 4 Outlook Lifestyle Communities— HY results presentation — December 2022 17
Slide 21: Outlook
Outlook Outlook • Lifestyle Communities has a focused strategy to service a niche Settlement Profile of Communities in Development – providing high quality affordable housing to the over 50s FY23 FY24 FY25 • Currently funded and resourced to acquire up to three new sites per year, subject to identif
Slide 22: Appendix
APPENDIX Still image from out latest TV commercial Appendix Lifestyle Communities— HY results presentation — December 2022 19
Slide 23: A.1 Our story and purpose
A.1 Our story and purpose APPENDIX We’re champions for facilitating a We build communities because our homeowners have But, most of all, we champion bigger, more enhanced worked hard for what they have, and they deserve lives for our homeowners because we know that bigger life for our homeowners. be
Slide 24: A.2 Model of living
A.2 Model of living APPENDIX How does the Lifestyle Communities’ model of living work? Homeowners at Lifestyle Communities own their own home and lease the land upon which their homes are located, via a weekly site fee and a deferred management fee. Homes typically priced at 75-80% of the 75-80% med
Slide 25: A.3 Macro themes providing resilience through the cycle
A.3 Macro themes providing APPENDIX resilience through the cycle Baby Boomers and First Home Buyers driven to action regardless of the cycle Lifestyle Communities provides a credible option even in falling market • Downsizing releases equity to improve living Ageing Population First Home Buyers stan
Slide 26: A.4 Growing recurring revenue stream
A.4 Growing recurring APPENDIX revenue stream Lifestyle Communities’ business has two core elements 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 sites to create new co
Slide 27: A.5 Dividend policy
A.5 Dividend policy APPENDIX 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 corporate overheads
Slide 28: A.6 Sales and settlements
A.6 Sales and settlements APPENDIX New home settlements Net sales commitments Resale home settlements 1HFY23 1HFY22 1HFY23 1HFY22 1HFY23 1HFY22 Existing Communities - Sold out Brookfield 13 8 Seasons 2 10 Warragul 3 2 Casey Fields 1 5 10 Shepparton 7 7 Chelsea Heights 1 5 4 Hastings 5 5 Lyndarum 7 2
Slide 29: A.7 Deferred management fees
A.7 Deferred management fees APPENDIX Casey Chelsea Berwick Ocean Mount Kaduna Brookfield Seasons Warragul Fields Shepparton Heights Hastings Lyndarum Officer Geelong Waters Bittern Grove Duneed Park Total Historical resales 181 52 81 84 62 65 58 28 30 21 22 33 22 1 2 742 Average tenure (years) 7.6
Slide 30: A.8 Cash flow analysis 1HFY23
A.8 Cash flow analysis 1HFY23 APPENDIX Fully settled Mount Kaduna Wollert Phillip Future Supplementary cash flow analysis communities Duneed Park North Deanside St Leonards Meridian Riverfield Woodlea Island Bellarine Communities Total Total number of homes 2,504 191 169 246 266 358 274 230 180 260
Slide 31: A.9 Cash flow analysis 1HFY22
A.9 Cash flow analysis 1HFY22 APPENDIX Completed Communities Supplementary cash flow analysis Communities Ocean Grove Mount Duneed Kaduna Park Wollert North Deanside St Leonards Meridian in planning Total Total number of homes 2,284 220 191 169 246 266 358 274 1,222 5,230 Settled 1HFY22 1 27 42 24 2
Slide 32: Important notice and disclaimer
Important notice and disclaimer This Presentation contains general background information about Lifestyle Communities Limited (LIC) and its activities current at 13 February 2023 unless otherwise stated. It is information in a summary form and does not purport to be complete. It should be read in co
Slide 33: Lifestyle Communities contact details
Level 1/9 – 17 Raglan Street South Melbourne VIC 3205 1300 50-55-60 lifestylecommunities.com.au
Lifestyle Communities — H1 FY2023 Earnings Presentation on 6ix