Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — FY2025 Earnings Presentation
45 slides from Lifestyle Communities's earnings presentation, Aug 28, 2025
Slide 1: Results Presentation for the year ended 30 June 2025
Results Presentation for the year ended 30 June 2025
Slide 2: Contents
Contents Appendix Our story 1 VCAT implications and our path forward 19 A.1 Model of living 35 Our purpose 2 VCAT decision — next steps 20 A.2 Portfolio snapshot 36 VCAT decision — recap on changes implemented 21 A.3 Investment property valuation inputs 37 FY25 Operating and financial performance 3
Slide 3: Our story
1 Our story Lifestyle Communities was born with a purpose to be socially responsible in creating affordable, homeowner- centric communities for downsizing Australians. Our product and operating model “We reimagine a Way To Live for has been deliberately designed to independent downsizers”. address i
Slide 4: Our purpose
2 Our purpose We reimagine a Way To Live for independent downsizers. We develop and manage architecturally designed low maintenance homes, together with resort-style communities, that allow downsizers to free up equity from their previous home, and live the life they want. Our approach revives the s
Slide 5: FY25 Operating and financial performance
FY25 Operating and financial performance 3 Progress at Lifestyle Ridgelea May 2025 SECTION 1 FY25 Operating and financial performance Lifestyle Communities®
Slide 6: Early signs of recovery after a challenging FY25
FY25 Operating and financial performance 4 Early signs of recovery after a challenging FY25 Navigated challenging external conditions, with sales beginning to show signs of recovery ... … VCAT decision in July 2025 will result in further business model optimisation in FY26 • Customer sentiment / dem
Slide 7: FY25 results snapshot
FY25 Operating and financial performance 5 FY25 results snapshot Key metrics 1 Measure FY21 FY22 FY23 FY24 FY25 New home settlements Homes 255 401 356 311 268 Established home resettlements Homes 121 156 178 151 115 Total settled homes (end of year) Homes 2,792 3,193 3,549 3,860 4,128 Portfolio + pi
Slide 8: New home sales performance
FY25 Operating and financial performance 6 New home sales performance • Total net sales of 139 for the year (FY24: 375) Sales profile from date of first sale • Demand in FY25 impacted by VCAT case and negative media Meridian 270 coverage in July 2024 (Sep-21) Historical • Recovery in sales in the se
Slide 9: Resales performance
FY25 Operating and financial performance 7 Resales performance FY23 FY24 FY25 Resales volumes have also been No. of resales No. of settlements 178 151 115 affected by market conditions - 1 homes are taking longer to sell Average tenure Years 6.6 7.1 7.4 Average DMF rate % of resale price 17.1% 18.0%
Slide 10: Update on capital management initiatives
FY25 Operating and financial performance 8 Update on capital management initiatives announced in February 2025 $119.8 million change in operating cash flow from negative $115.2 million in FY24 to positive $4.6 million in FY25 1. Debt facility changes during the year Debt maturities • Total debt faci
Slide 11: Debt covenants and key metrics
FY25 Operating and financial performance 9 Debt covenants and Lifestyle has two main financial covenants in addition to a group key metrics guarantor undertaking which are regularly stress tested. They are: Group LVR ICR Guarantor Test Total Assets FY25: 47.8% FY25: 3.0x and EBITDA Lifestyle Communi
Slide 12: De-leveraging
FY25 Operating and financial performance 10 De-leveraging Capital management initiatives delivering ongoing reductions in net debt over the next 6–12 months Indicative pro-forma net debt bridge from 30 June 2025 to 31 December 2025 500 $490m $463m ($22m – $30m) ($10.0m) 450 ($17.0m) ($100m) 400 $12m
Slide 13: Portfolio optimisation — inventory
FY25 Operating and financial performance 11 Portfolio optimisation — inventory Significant reduction in unsold homes “in the system” since 31 December 2024, with ongoing reduction planned in FY26 31-Dec-24 30-Jun-25 Completed Optimal No. completed Homes in No. completed Homes in Homes carrying Inven
Slide 14: Portfolio optimisation — land
FY25 Operating and financial performance 12 Portfolio optimisation — land Excess land Development pipeline remaining • We were carrying 8 sites representing 7+ years land supply Community Homes remaining • This represented circa $273 million of committed capital Communities in progress • Our strateg
Slide 15: Growing annuity income stream
FY25 Operating and financial performance 13 Growing annuity income stream • Our strategy is to sustainably grow the number of Home sites under management homes under management • This generates fees from 4,500 4,128 – Weekly site fees 3,860 4,000 – Management fees (deferred or upfront) 3,549 • Our p
Slide 16: VCAT decision — impacts on the FY25 financial statements
FY25 Operating and financial performance 14 VCAT decision — impacts on the FY25 financial statements Accounting Standards require the FY25 accounts be prepared with regard to the most recent legal interpretation of the DMF provisions, regardless of the intention to appeal that decision. If the appea
Slide 17: Income statement
FY25 Operating and financial performance 15 Income statement $000s FY23 FY24 FY25 Community operations Site rental 34,244 41,436 45,705 Deferred Management Fees 1 12,921 13,220 10,448 • 139 new home sales and 268 new home settlements (down Community operating costs (15,219) (18,383) (20,950) 63% and
Slide 18: Fair value adjustments
FY25 Operating and financial performance 16 Fair value adjustments • The fair value adjustment typically comprises three Pre-tax components: Reconciliation of operating Fair Value Adjustment to statutory Fair Value Adjustment (pre-tax) FY23 FY24 FY25 1. The value uplift created when a customer settl
Slide 19: Balance sheet
FY25 Operating and financial performance 17 Balance sheet • Adjustments to the balance sheet as a result of the Balance sheet highlights VCAT Decision: $000s FY23 FY24 FY25 – Non-Cash write-down of investment property carrying Cash and cash deposit 1,233 4,095 2,473 values - $193.5m Inventories 193,
Slide 20: Cash flow
FY25 Operating and financial performance 18 Cash flow Operating cash flow positive despite lower settlements in FY25 Community operations cash flows: $000s FY23 FY24 FY25 • 10.7% increase in site rentals due to more homes under Community operations cash flows management and inflation linked rental i
Slide 21: VCAT implications and our path forward
VCAT implications and our path forward 19 SECTION 2 VCAT implications Relaxing by the fire at Lifestyle Riverfield and our path forward Lifestyle Communities®
Slide 22: VCAT decision — next steps
VCAT implications and our path forward 20 VCAT decision — next steps Lifestyle Communities intends to appeal the VCAT decision Our position • We take our compliance obligations seriously and have sought legal advice consistently throughout our history • Our DMF fee structure and disclosure is consis
Slide 23: VCAT decision — recap on changes implemented
VCAT implications and our path forward 21 VCAT decision — recap on changes implemented From 7 July 2025 until the appeal is resolved, we are proceeding as follows: For deposit holders and • The DMF calculation methodology will be based on the homeowner’s purchase price and pro-rated over a 5-year pe
Slide 24: We are prioritising our customer base
VCAT implications and our path forward 22 We are prioritising our customer base and not waiting for the appeal process to conclude Listening Acting Evolving Clarifying • CEO led roadshow over recent • Actively incorporated • Intention to introduce more choice • Conviction that DMF has a weeks, visit
Slide 25: Customer certainty through new contract options
VCAT implications and our path forward 23 Customer certainty through new contract options Rationale for the DMF: • We continue to have high conviction that the DMF has a place because: – it enables access for more people to afford this type of living – the additional equity free-up delivered via the
Slide 26: Creating a pathway to modify contracts for existing homeowners
VCAT implications and our path forward 24 Creating a pathway to modify contracts for existing homeowners Existing customers have been asking for the option to move to a modified DMF on entry price contract structure … this provides them with a certain financial outcome irrespective of the VCAT appea
Slide 27: Introducing options to pay upfront or upon sale
VCAT implications and our path forward 25 Introducing options to pay upfront or upon sale Our research shows our customers prefer the deferred management fee model because it enables greater equity free-up to supplement retirement savings ... ... However we will introduce a no exit fee option for cu
Slide 28: Strategy refresh and outlook
Strategy refresh and outlook 26 SECTION 3 Strategy refresh and outlook Lifestyle Communities®
Slide 29: Strategy review and refresh
Strategy refresh and outlook 27 Strategy review and refresh Our renewed company strategy reflects an evolution of purpose—‘Reimagining the way to live for independent downsizers. It is brought to life through 3 strategic pillars: • Be the Go-to-Choice for Downsizers – We’re committed to mastering bo
Slide 30: Operationalising the strategy
Strategy refresh and outlook 28 Operationalising the strategy What’s well underway? • Elevated market orientation: – new home sales pricing – product design and specification – a focus on both sides of the downsizing journey • Increased focus on the homeowner experience • Refreshed and simplified br
Slide 31: FY26 - the reset year of our 5 year growth plan
Strategy refresh and outlook 29 FY26 - the reset year of our 5 year growth plan Growth in population of people over 55 FY26 FY27 FY28 FY29 FY30 in Victoria 1 9,207,912 Get strong Grow stronger • Strategic reset • Unlock existing sites within our land bank 61.5% 3,139,874 7,008,074 increase • Market-
Slide 32: The macro themes that have underpinned LIC's success
Strategy refresh and outlook 30 The macro themes that have underpinned LIC’s success over the last 20 years remain and are intensifying Demographics Demographics — over 50s middle-market expansion • By 2030, approximately 19% (5.7m) of Australians are projected to be over the age of 65, based on a f
Slide 33: Increasing importance of life longevity and health
Strategy refresh and outlook 31 Increasing importance of life longevity and health When compared to other Australians and Victorians aged over 55, Lifestyle Communities homeowners report a greater sense of satisfaction in all aspects of their lives Global life Standard Health Achieving Personal Pers
Slide 34: Our evolved pricing model is responding to market conditions
Strategy refresh and outlook 32 Our evolved pricing model is responding to market conditions • The LIC business model has been built on the premise that an equity Melbourne home price growth (YoY) release for new homeowners is a key part of the sales proposition 4.0% • There is no doubt the property
Slide 35: Outlook
Strategy refresh and outlook 33 Outlook We enter FY26 with a clear plan and the right team in place. We are focused on execution and positioning the business for the next New home settlements pipeline status development cycle, which we expect to emerge in late FY26/early FY27 as property market cond
Slide 36: Appendix
34 Appendix Lifestyle Communities®
Slide 37: A.1 Model of living
Appendix 35 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 which their homes are located, via a weekly site fee and a deferred management fee. 80% On average, homes typically priced at 80% of
Slide 38: A.2 Portfolio snapshot
Appendix 36 A.2 Portfolio snapshot Homes occupied or Total homes in Homes sold and Homes sold and sold and awaiting communities occupied awaiting settlement settlement Established communities 16 fully completed communities 3,063 3,063 3,063 100% Communities in progress Wollert 246 225 7 232 94% Dean
Slide 39: A.3 Investment property valuation inputs
Appendix 37 A.3 Investment property valuation inputs Cap rate (%) DMF values per home ($) Net rental per home ($) Valuation ($m) Last independent Land cost Valuation summary valuation date FY25 FY24 FY25 FY24 FY25 FY24 FY25 FY24 ($m) Brookfield Jun-25 5.25% 5.00% 14,474 65,570 7,796 7,353 37.2 48.5
Slide 40: A.4 Investment property valuations
Appendix 38 A.4 Investment property valuations At fair value ($m) Investment properties Total homes 1 Homes occupied at cost ($m) FY25 FY24 2 Mature Communities Brookfield at Melton 228 228 6.8 37.2 48.5 Seasons at Tarneit 136 136 3.7 15.7 24.5 Warragul 182 182 2.5 29.1 36.1 Casey Fields at Cranbour
Slide 41: A.5 Fair value breakdown
Appendix 39 A.5 Fair value breakdown Investment properties breakdown ($’m) Indicative example (per house) Cash flow P&L Sale price (incl. GST) 592,900 1,200 1,141.4 962.2 1,000 326.0 915.1 Sale price (excl. GST) 539,000 539,000 850.2 227.9 800 235.2 636.5 229.3 Land (104,000) 245.9 204.3 69.0 600 13
Slide 42: A.6 Reconciliation of statutory profit to operating profit
Appendix 40 A.6 Reconciliation of statutory profit to operating profit $’m FY25 FY24 Statutory profit/(loss) before tax (278.8) 71.5 Add back changes to investment property carrying values post the 193.5 VCAT Decision on DMF Add back DMF provision for repayment 77.8 Add back one-off non-repeat costs
Slide 43: A.7 Cash flow analysis for FY25
Appendix 41 A.7 Cash flow analysis for FY25 Ocean Completed Clyde Phillip Grove – Communities Communities 3 Wollert Deanside St Leonards Meridian Bellarine Woodlea Riverfield Island Ridgelea Merrifield Yarrawonga The Cove in planning 4 Total Community operations cash flows Site rentals 35.1 2.7 2.1
Slide 44: A.8 Cash flow analysis for FY24
Appendix 42 A.8 Cash flow analysis for FY24 Completed Clyde Phillip Ocean Communities Communities 3 Wollert Deanside St Leonards Ridgelea Meridian Riverfield Woodlea Island Bellarine Merrifield Grove II Yarrawonga in planning 4 Total Community operations cash flows Site rentals 31.9 2.2 1.8 2.4 - 2.
Slide 45: Important notice and disclaimer
43 Important notice and disclaimer This Presentation contains general background information about Lifestyle Communities® Limited (LIC) and its activities current at 28 August 2025 unless otherwise stated. It is information in a summary form and does not purport to be complete. It should be read in