Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — H1 FY2018 Earnings Presentation
24 slides from Lifestyle Communities's earnings presentation, Feb 14, 2018
Slide 1: A Business for Purpose - Results Presentation
A Business for Purpose For personal use only Results Presentation Half-Year ended 31 December 2017 14th February 2018 LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 1
Slide 2: Our Story to Date
OUR STORY TO DATE For personal use only James Kelly, Dael 2003 Perlov and Bruce Carter develop business plan Development of first community at Brookfield. 2004 Opened in June 2005 Listed on the 2007 Australian Stock Exchange Major capital 2012 raising of $36m 1,000th homeowner moves in 2014 2,000th
Slide 3: A Business for Purpose
A BUSINESS FOR PURPOSE For personal use only • An affordable housing option to the 50% of Australians who have less than $520,000 in total equity • An affordable and sustainable financial model where homeowners can prosper • A respectful but highly engaging service strategy • High quality resort sty
Slide 4: Overview: Business snapshot and financial summary
OVERVIEW Business snapshot For personal use only Financial Summary 31-Dec-17 31-Dec-16 Net profit after tax attributable to shareholders $15.8 million $12.0 million Dividends (interim) 2.0 cents per share 1.5 cents per share 31-Dec-17 30-Jun-17 Total assets $275.8 million $266.1 million Equity $169.
Slide 5: Portfolio Overview
PORTFOLIO OVERVIEW 15 communities in planning, development For personal use only or under management Focus remains in Victoria • Favourable planning legislation Community Homes Settled • Better access to zoned, flat land for development Brookfield at Melton 228 100% • Low saturation of land lease co
Slide 6: Portfolio Overview: portfolio snapshot
PORTFOLIO OVERVIEW Lifestyle Communities’ portfolio continues to grow Portfolio snapshot For personal use only 31 December 2017 Home sites occupied or sold Total home sites in Home sites sold & Home sites sold & and awaiting settlement Communities communities occupied awaiting settlement # % Existin
Slide 7: 1HFY2018 Highlights
Lifestyle Communities had another positive OVERVIEW result during 1HFY2018 Home sites (annuities) under management (1) 1HFY2018 Highlights For personal use only 1800 1700 Business Snapshot 1600 • Solid half-year of settlements (150) and sales (181) 1500 • 1,776(1) occupied home sites 1400 • 2,631 ho
Slide 8: Updates
UPDATES Lifestyle Bittern For personal use only • Commenced construction • 120 sales achieved up until 31 December 2017 • Strong interest from the immediate catchment Lifestyle Ocean Grove • Commenced construction • 55 sales achieved up until 31 December 2017 • Significant enquiry on database awaiti
Slide 9: Financial Results: Annuity income streams
FINANCIAL RESULTS Annuity income streams For personal use only $11,000,000 There are two components to the annuity stream: $10,000,000 $9,000,000 1. Site Rental Fee $8,000,000 • Approximately $173 per single and $200 per couple per week per home $7,000,000 • Indexed at greater of CPI or 3.5% p.a. $6
Slide 10: Sales & Settlements
SALES & SETTLEMENTS 55% of 150 settlements came from referral Sales Commitments Settlements For personal use only • 181 net new home sales in 1HFY2018 • 150 settlements in 1HFY2018 • Lyndarum at Wollert and Officer are both sold out • 51 settlements at Berwick Waters, 35 at Lyndarum, 22 each at Geel
Slide 11: Sales & Settlements Continued
SALES & SETTLEMENTS Continued For personal use only New homes - net sales Resale homes Resale homes - net New home settlements commitments settlements sales commitments 1HFY18 1HFY17 1HFY18 1HFY17 1HFY18 1HFY17 1HFY18 1HFY17 Brookfield - - - - 8 7 4 7 Tarneit - - - - - 2 - 1 Warragul - - - - 4 7 3 7
Slide 12: Sales Rates
SALES RATES For personal use only Sales SALES PROFILE FROM DATE OF FIRST SALE • Lifestyle Communities’ focus has 200 shifted to improve early sales. This reduces risk by supporting a more 180 Berwick aggressive construction program to Chelsea Heights enable faster capital recycling 160 Officer Cranb
Slide 13: Segment Differentiation
SEGMENT DIFFERENTIATION Market starting to differentiate between Lifestyle For personal use only Communities and retirement & others Re Se As tire Age moving in Age moving in Age niors Rental sisted Living ment Villag 65+ 75+ d Care Lifestyle e Communities s Age Move-in age getting younger and there
Slide 14: Profit and Loss
PROFIT AND LOSS For personal use only • Net profit attributable to shareholders up 32% to 1HFY2018 1HFY2017 % Profit loss highlights ($’000) ($’000) Movement $15.8 million Home settlement revenue 46,637 36,160 29% • Gross profit from home settlements increased to Cost of sales (35,762) (29,160)
Slide 15: Balance Sheet
BALANCE SHEET Balance sheet remains strong For personal use only • Gearing (net debt to net debt plus 31 Dec 17 30 June 17 % equity) was 18.8% at year end Balance sheet highlights ($’000) ($’000) Movement • Total bank facility of $120.0 million Cash and cash on deposit 1,824 3,653 of which $41.2 mil
Slide 16: Cash Flow
CASH FLOW A half-year of strong operational cashflows For personal use only • Cash flows from operations 1HFY2018 1HFY2017 increased to $8.2 million, adjusted Cash Flow highlights ($’000) ($’000) cash flows from operations Receipts from customers 63,683 49,117 (excluding project capital Payments to
Slide 17: Dividend Policy
DIVIDEND POLICY For personal use only As a general principle, the Board of 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
Slide 18: Settlement Goals - New Sales
SETTLEMENT GOALS - NEW SALES Settlements growing with increased sales rates For personal use only and new projects FY2017 FY2018 FY2019 1HFY2018 settlements settlement settlement settlements (actual) range range TOTAL 278 150 260-290* 300-340 Shepparton 50 20 35-45 30-45 Lyndarum 68 35 40 - Geelong
Slide 19: Likely Settlement Program
LIKELY SETTLEMENT PROGRAM Currently 2,827 homes in the portfolio For personal use only Community FY18 FY19 FY20 FY21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Shepparton Lyndarum Geelong Officer Berwick Waters Bittern Ocean Grove Mt Duneed (1) Kaduna Park (1) Represents tail of development whi
Slide 20: Deferred Management Fees
DEFERRED MANAGEMENT FEES For personal use only Casey Chelsea Brookfield Seasons Warragul Shepparton Hastings Total Fields Heights Historical resales(1) 107 19 46 32 8 22 23 257 Average tenure (years) 5.71 4.80 4.12 3.19 2.58 2.63 2.36 4.38 Average price growth p.a. 3.9% 2.3% 3.2% 6.0% 4.0% 17.8% 13.
Slide 21: Cashflow Analysis 1HFY2018
CASHFLOW ANALYSIS 1HFY2018 Arm- Supplementary Cash Flow Casey Chelsea Berwick Ocean Officer Total For personal use only Brookfield Seasons Warragul Shepparton Hastings Lyndarum Geelong Officer Bittern strong Analysis for FY2017 Fields(3) Heights(3) Waters Grove South Creek Total Number of Homes 228
Slide 22: Summary
SUMMARY A proven business that is structured For personal use only for sustainable growth • 1HFY2018 delivered a solid year of home settlements (150) and net new home sales (181) • The Officer South acquisition (announced in August 2017) has increased the total portfolio to 2,827 homes(1) • Communit
Slide 23: Important Notice and Disclaimer
Important Notice • This Presentation contains general indirect loss or damage which presentation, the words “forecast”, and disclaimer background information about may be suffered by any recipient “estimate”, “expect”, “anticipated” Lifestyle Communities Limited through use or reliance on anything a
Slide 24: Lifestyle Communities Limited
For personal use only LIFESTYLE COMMUNITIES LIMITED Level 2, 25 Ross Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au LIFESTYLE COMMUNITIES LIMITED A BUSINESS MAKING A DIFFERENCE 23
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