Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — Investor Presentation (August 2009)
29 slides from Lifestyle Communities's investor presentation, Aug 21, 2009
Slide 1: Company Presentation August 2009
For personal use only I August 2009
Slide 2: Overview
Overview For personal use only • Business Strategy • Lifestyle Warragul Case Study • Market Opportunity • Portfolio Status • Financials • Operational Outlook • Management • Capital Management • Summary Commercial in confidence I
Slide 3: Business Strategy
Business Strategy…. For personal use only • To develop and operate villages that provide affordable accommodation for people over the age of 55. • Create secure, long term annuity income streams for shareholders from village operations. • Maintain an appropriate balance between business growth and g
Slide 4: Business Strategy
Business Strategy … For personal use only • Price homes to enable recovery of all cash costs of the development including: • Land • Village infrastructure • House construction • Indirect costs including administration and interest • Lifestyle Communities retains land ownership and leases sites to re
Slide 5: Warragul Case Study
Warragul Case Study… For personal use only Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Site acquisition and planning Outcome Land cost $2.2m Infrastructure, construction and sale of units Outcome All infrastructure and construction costs recovered Cash development profit of $1.4 to $2m Operatio
Slide 6: Warragul Case Study: Valuation
Warragul Case Study… For personal use only Valuation Description and Key Assumptions 2008 2009 Average selling price $209,361 $215,925 Rate of sale (units per month) 4.5 3.0 Capitalisation rate of rental income 8.25% 9.0% Weekly Site Rental $124.55 $135.04 Costs as a % of rental income 33% 28% On co
Slide 7: Market Opportunity
Market Opportunity For personal use only Commercial in confidence I
Slide 8: Market Opportunity: Key Market Drivers
Market Opportunity … For personal use only Key Market Drivers 1. Changing demographics – The number of people over the age of 65 will double by 2021 and then double again by 2051.* 2. Changing sociographics - 50% of people over the age of 65 have less than $300,000 in equity.** 3. Changing perceptio
Slide 9: Population growth 65+
Population growth 65+ For personal use only • Primary growth: Impact of an ageing Australian population on housing demand • Secondary growth: Increased market penetration – more ageing Australians want to live in a community based village • Demand for retirement units over the next 10 years • 75,000
Slide 10: Not everybody is wealthy
Not everybody is “wealthy”… For personal use only • 50% of people over the age of 65 have less than $300,000 in equity ** • 66% of all retirees are seeking housing under $250,000 • The majority of the population over 65 cannot afford traditional retirement accommodation • Affordable over 55’s housin
Slide 11: Portfolio Status
Portfolio Status For personal use only Commercial in confidence I
Slide 12: Portfolio Status
Portfolio Status For personal use only Estimated Sites On available for Villages Completion Current status development Value Brookfield $19.2M 85% sold 230 Warragul $17M 25% Sold 180 Tarneit $12.2M 30% Sold 140 Yet to Commence Shepparton $28.2M Dev. Approval 320 Cranbourne * $21.1M Planning 250 TOTA
Slide 13: Financials
Financials For personal use only Commercial in confidence I
Slide 14: Financials
Financials For personal use only • Highlights • Profit and Loss • Balance Sheet • Cash Flow Commercial in confidence I
Slide 15: Financials: Highlights
Financials … For personal use only Highlights • Second half NPAT of $3.1M • Net debt reduced from a peak of over $36M in Dec 2008 to $22.7M at 30th June 2009 • Second half unit settlements income of $8.3m compared with $4.7 for the first half • Full year site rental income of $1,196k compared with $
Slide 16: Profit and Loss Summary
Financials … For personal use only Profit and Loss Summary FY2009 2nd Half FY2010 Range Item Description Annual 2nd Half Annualised Low High REVENUE Home Sales Settlement of new homes (excluding land) $ 13,016 $ 8,346 $ 16,692 $ 16,276 $ 19,531 Rental Income Site fee income from 90 year lease with r
Slide 17: Profit and Loss Summary (Costs)
Financials … For personal use only Profit and Loss Summary FY2009 2nd Half FY2010 Range Item Description Annual 2nd Half Annualised Low High COSTS Cost Of Sales This is the costs associated with the development of the villages, including village infrastructure, facilities and soft costs allocated on
Slide 18: Balance Sheet 30th June 2009: Assets
Financials… For personal use only Balance Sheet 30th June 2009 Item Description FY2009 Current Assets Cash Cash on hand $ 2,076 Receivables $ 309 Inventories Includes village infrastruture and houses that have been constructed but not yet sold. Released progressively as each unit is sold $ 17,118 Ot
Slide 19: Balance Sheet 30th June 2009: Liabilities
Financials… For personal use only Balance Sheet 30th June 2009 Item Description FY2009 Current Liabilities Payables $ 2,216 Loans $ 113 Provisions $ 235 Tax Payable $ - Total Current Liabilities $ 2,564 Non-Current Liabilities Loans and Borrowings Westpac debt $ 24,526 Provisions $ 90 Deferred Tax L
Slide 20: Summary Operating Cash Flow
Financials… For personal use only Summary Operating Cash Flow For the year ended 30 June 2009 FY 09 Full Year A$ Operating profit/(loss) after income tax $ 705,406 Add back loss on sale of land $ 2,998,724 Operating profit/(loss) after income tax adjusted for loss on sale of land $ 3,704,130 Non-cas
Slide 21: Operational Outlook
Operational Outlook For personal use only Commercial in confidence I
Slide 22: Operational Outlook
Operational Outlook …. For personal use only • Demand for affordable retirement solutions remains strong with sales currently outperforming traditional retirement villages • Three villages now generating development and operational revenue • Targeting ongoing new home sales rate of approximately 100
Slide 23: Unit settlement forecast
Operational Outlook …. For personal use only Unit settlement forecast * Village FY10 FY11 FY12 FY13 Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Brookfield 50 41 32 23 14 5 Tarneit 113 104 95 86 77 68 59 50 41 32 23 14 5 Warragul 156 147 138 129 120
Slide 24: Management
Management For personal use only Board Managing Sales, Marketing Finance and Director and Operations Administration (James Kelly) (Dael Perlov) (Bruce Carter) Project Planning Senior Project Chief Financial Sales Manager Village Mangers and Support Manager Officer Village Sales Administration Projec
Slide 25: Management
Management… For personal use only • David Paranthoiene, Chairman • David was co founder of the Australian Stock Exchange listed telecommunications company Pracom Limited, spending 14 years in senior leadership roles including that of Managing Director. He brings to Lifestyle Communities Limited exte
Slide 26: Capital Management: Debt
Capital Management… For personal use only Debt Description Total borrowings $24m Facility Limit $30m Gross Assets $49.4m Debt to gross asset ratio 48% Target debt to gross asset ratio 35% Current debt facility expiry date Aug 2010 Commercial in confidence I
Slide 27: Capital Management: Equity
Capital Management… For personal use only Equity Total Shares on Issue 462 million Total Shareholders 2,818 No. Shareholders that represent 95% 142 Percentage of shares held by top 40 90.7% Percentage of shares held by directors 70% Market capitalisation $27.7m * * Based on closing price of 6c per s
Slide 28: Summary
Summary For personal use only • Market opportunity • Strong growth with the ageing population in Australia • Affordability is key driver for housing demand in the future • The majority of retirees don’t have $300k+ to spend on housing • Current economic conditions has increased interest in affordabl
Slide 29: For personal use only
For personal use only Commercial in confidence I
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