Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — H1 FY2015 Earnings Presentation
25 slides from Lifestyle Communities's earnings presentation, Feb 18, 2015
Slide 1: Results Presentation Half-year ended 31 December 2014
For personal use only Results Presentation Half-year ended 31 December 2014 18 February 2015
Slide 2: Overview: Business Snapshot
OVERVIEW Business Snapshot 9 years of growing annuity income streams Annuity Income For personal use only • Founded in 2003 $6,000,000 –– $5,000,000 –– • Develop and manage land lease communities which $4,000,000 –– generate long-term sustainable revenue streams $3,000,000 –– $2,000,000 –– • Focused
Slide 3: Community Locations
COMMUNITY LOCATIONS For personal use only Community Homes Settled Melton 228 100% Shepparton Tarneit 136 100% Warragul 182 97% Cranbourne 217 92% Shepparton 221 33% Chelsea Heights 186 55% Wollert Melton Hastings 141 60% Tarneit Wollert 154 - Chelsea Heights Officer Geelong 164 - Geelong Cranbourne
Slide 4: Executive Summary
EXECUTIVE SUMMARY Lifestyle Communities had another positive result during the first-half of FY2015 For personal use only Home sites under management (1) 1000 –– • Solid half-year of settlements (98) and sales (105)(1) 900 –– • 1,004 occupied home sites(1) 800 –– • Portfolio of 1,929 home sites(1)(2
Slide 5: Key Metrics - Sales, Settlements & Annuities
KEY METRICS - SALES, SETTLEMENTS & ANNUITIES Settlements and Sales 150 –– For personal use only 125 –– 100 –– 75 –– 50 –– • Another strong half-year of settlements and 25 –– sales 1HFY2012 2HFY2012 1HFY2013 2HFY2013 1HFY2014 2HFY2014 1HFY2015 - 98 home settlements in 1HFY2015 (1) compared to 109 in
Slide 6: Key Metrics - Net Assets & Gearing
KEY METRICS - NET ASSETS & GEARING Net Assets For personal use only $105,000,000 –– $90,000,000 –– $75,000,000 –– $60,000,000 –– $45,000,000 –– $30,000,000 –– $15,000,000 –– • Net assets $102.7 million (at 31 December 2014) up from $95.0 million (at 30 June 2014) FY2011 FY2012 FY2013 FY2014 1HFY2015
Slide 7: Community at Hastings
COMMUNITY AT HASTINGS Our product keeps evolving in appeal For personal use only Lifestyle Communities Limited Downsize to a Bigger Life 7
Slide 8: Annuity Streams
ANNUITY STREAMS Over Nine Years of Growing Annuity Income Streams For personal use only Annuity Income $6,000,000 –– $5,000,000 –– $4,000,000 –– • 98(1) annuities added to the community management business $3,000,000 –– during the half-year $2,000,000 –– • 17 existing home sales attracting $1,000,00
Slide 9: Business Model
BUSINESS MODEL Lifestyle Communities has a low risk sustainable business model that does not require further equity from the market For personal use only Development Business Community Management Business Cash break even after allocation Dividend flow te r as of costs to management business lf Ho ta
Slide 10: Land Acquisition
LAND ACQUISITION In the first-half of FY2015 we have secured: For personal use only 1. A new site located in Rosebud, on Melbourne’s 2. A new site located in Officer between Berwick Mornington Peninsula. This site has added 150 and Pakenham in the south-eastern suburbs of homes to the pipeline. The
Slide 11: Sales and Settlements - 1HFY2015
SALES AND SETTLEMENTS - 1HFY2015 New homes - Resale homes - New home Resale homes net sales net sales settlements settlements commitments commitments For personal use only 1HFY 1HFY 1HFY 1HFY 1HFY 1HFY 1HFY 1HFY 2015 2014 2015 2014 2015 2014 2015 2014 • Continue to expect on or around 230 new home s
Slide 12: Portfolio Update - December 2014
PORTFOLIO UPDATE - 31 DECEMBER 2014 Lifestyle Communities’ portfolio continues to grow For personal use only Home sites Homes occupied or sold Total home Home sites sold & and awaiting settlement Communities sites in sold & awaiting communities occupied # % settlement Existing Communities – Sold out
Slide 13: Monthly Sales and Settlements
MONTHLY SALES AND SETTLEMENTS Referrals provided 33% of settled homes in the first-half For personal use only Sales Commitments Settlements • 105 new home sales in 1HFY2015(1) • 98 settlements in 1HFY2015(1) • Current committed sales bank as of 31 December • First settlements at Chelsea Heights expa
Slide 14: Long-Term Debt Re-finance
LONG-TERM DEBT RE-FINANCE Re-finance of core debt facility For personal use only • Negotiated to repay the $25 million loan-note facility early • New facility: Bank: Westpac Amount: $27,055,000 Term: Three years Rate: < 4.5% Light ICR and LVR covenants tied to the Brookfield, Tarneit and Warragul co
Slide 15: Marketing Update
MARKETING UPDATE • Continued investment in market research to understand buyer behaviour of ‘affordability’ sub-segment of baby boomer For personal use only cohort • Ongoing analysis of homeowner satisfaction through annual Website Enquiries Homeowners’ Sentiment Survey. Customer insights drive 100
Slide 16: Profit & Loss
PROFIT & LOSS 1HFY2014 1HFY2015 % Profit & Loss highlights ($’000) ($’000) Movement For personal use only Home settlement revenue 28,266 25,549 10% • Underlying net profit attributable to shareholders Rental and utilities revenue 3,246 4,482 38% up 11% for the half-year to $7.2 million compared to $
Slide 17: Balance Sheet
BALANCE SHEET For personal use only • Investment properties includes the 30 JUN 14 31 DEC 14 % Balance sheet highlights new site at Officer that is contracted to ($’000) ($’000) Movement settle in October 2015. A liability has Cash and cash on deposit 6,756 11,172 been recorded to reflect the settle
Slide 18: Cash Flow
CASH FLOW 1HFY2014 1HFY2015 For personal use only Cash flow highlights ($’000) ($’000) Receipts from customers 35,206 34,213 Payments to suppliers and employees^ (34,406) (26,529) Income taxes paid - (1,043) • Adjusted cash flows from operations Net interest payments (1,269) (3,452) (excluding proje
Slide 19: Market Environment
MARKET ENVIRONMENT For personal use only Housing Market • The continued strength of the Melbourne housing market has improved consumer confidence and their ability to sell existing homes Land Access • Focused on acquiring land in key growth corridors of Melbourne. We have been successful in acquirin
Slide 20: Outlook
OUTLOOK FY2014 For personal use only • Market sentiment in Victoria remains positive and the Lifestyle Communities brand continues to appeal to the emerging baby boomer generation • Assuming market conditions do not change materially we expect new home settlements for FY2015 to be on or around 230(1
Slide 21: Likely Settlement Programme
LIKELY SETTLEMENT PROGRAMME Currently 1,929 homes in the portfolio(1) For personal use only Community FY15 FY16 FY17 FY18 FY19 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Warragul Cranbourne Shepparton Chelsea Heights Hastings Wollert Geelong Rosebud Officer Represents tail-end of developm
Slide 22: Cash Flow Analysis - 1HFY2015
CASH FLOW ANALYSIS - 1HFY2015 Chelsea Supplementary Cash Flow Analysis for 1HFY2015 Melton Tarneit Warragul Cranbourne(3) Shepparton Hastings Wollert Geelong Rosebud Officer Total Heights(3) Total Number of Homes 228 136 182 217 221 186 141 154 164 150 150 1,929 For personal use only Settled 1HFY201
Slide 23: Summary
SUMMARY For personal use only • The first-half of FY2015 delivered another solid result for net sales commitments (105) and home settlements (98)(1) • Homes under management are now 1,004 and this resulted in growing community annuity income (net of expenses) to $3.2 million compared to $2.1 million
Slide 24: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only • This Presentation contains general background information about Lifestyle Communities Limited (LIC) and its activities current at 18 February 2015 unless otherwise stated. It is information in a summary form and does not purport to be complete.
Slide 25: Lifestyle Communities Limited contact details
For personal use only Lifestyle Communities Limited Level 2, 25 Ross Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au OFFICER - ROSEBUD - GEELONG - WOLLERT - HASTINGS - CHELSEA HEIGHTS - SHEPPARTON - CRANBOURNE - WARRAGUL - TARNEIT - MELTON
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