Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — FY2011 Earnings Presentation
22 slides from Lifestyle Communities's earnings presentation, Aug 19, 2011
Slide 1: Results Presentation for the Year Ended 30 June 2011
For personal use only Results Presentation for the Year Ended 30 June 2011 August 2011 I
Slide 2: Contents
Contents For personal use only 1. Financial Results 2. Market Conditions and Opportunity 3. Business Model 4. Current Status 5. Outlook 6. Summary This document should be read with the Disclaimer at the end of the document Affordable Seniors Housing I
Slide 3: Financial Results
Financial Results For personal use only • Highlights • Profit and Loss • Balance Sheet • Cash Flow • Dividend • Loan Notes Affordable Seniors Housing I
Slide 4: Highlights
Income growth For personal use only Highlights $25,000,000 $5,000,000 • Net profit before tax: $10.4m $20,000,000 $4,000,000 • Net profit after (current) tax: $10.4m * • Net profit after tax: $6.8m Management income • Dividend: 0.5 cents per share (fully $15,000,000 $3,000,000 Unit sales franked) •
Slide 5: Profit & Loss
Profit & Loss For personal use only Profit and loss highlights FY2011 FY2010 ($'000) ($'000) % movement Revenue Unit sales 22,697 20,755 + 9% Management income 4,421 3,140 + 41% Net profit before tax 10,422 8,477 + 23% Net profit after (current) tax* 10,422 8,477 + 23% Earnings per share (based on N
Slide 6: Balance Sheet
Balance Sheet For personal use only Balance sheet highlights FY2011 FY2010 ($'000) ($'000) Investment properties 54,982 39,802 Total assets 92,821 62,681 Bank borrowings (current) (2,334) (22,830) Loan note borrowings (non-current) (37,170) - Loan to value ratio 42.6% 36.4% Total liabilities (56,701
Slide 7: Cash Flow
For personal use only Cash Flow Cash flow highlights Change from FY2010 FY2011 ($'000) ($'000) Receipts from customers + 4,045 to 29,301 Payments to suppliers and employees* + 4,667 to (27,480) Net interest payments + 494 to (659) Cash flows from operations - 1,115 to 1,163 New project capital expen
Slide 8: Dividend
For personal use only Dividend • Dividend declared on 19th August 2011: o 0.5 cents per share (fully franked) o Record date – 16th September 2011 o Payment date – 28th September 2011 • It is the intention of the Company to implement a Dividend Reinvestment Plan prior to any further distributions • T
Slide 9: Loan Notes
For personal use only Loan Notes In May 2011 Lifestyle Communities entered into a 10 year* $50m loan note facility. The new funding facility: • Swaps short-term debt with long-term debt providing certainty of funding • Facilitates the recycling of capital from maturing developments into new projects
Slide 10: Market Conditions and Opportunity
Market Conditions and Opportunity For personal use only Affordable Seniors Housing I
Slide 11: Key Market Drivers
Key Market Drivers For personal use only Housing affordability and security are key considerations of our target market. Recently undertaken Newspoll research* identified the following issues at the forefront of our customers mindset: • 52% of respondents agreed that the majority of their wealth was
Slide 12: Affordability
Affordability For personal use only Our typical customer relies on the government pension for the majority of their income with their equity tied up in the family home. There are two stages of affordability, one being the initial home purchase and two being the ongoing costs of living. Rent as propo
Slide 13: Senior's Housing Market Segmentation
Senior’s Housing Market Segmentation For personal use only • There are approximately 2.1 million people within households aged over 65 in the population • Over 35% (more than 700,000 people) are within Lifestyle Communities target market • Lifestyle’s penetration of the market is less than half of 1
Slide 14: Market Conditions
For personal use only Market Conditions Key Indicators Monthly customer commitments - last 2 years 20 • Affordability continues to be a key driver of enquiry 18 16 • Customer commitments 14 steadily increasing 12 10 • Outer suburban residential 8 property demand still positive 6 4 • Overall settleme
Slide 15: Business Model
Business Model For personal use only • Lifestyle is a developer, owner and Gross Management Income manager of affordable senior housing $5,000,000 communities • Lifestyle operates as a “land lease” $4,000,000 model and is NOT a retirement village • Residents lease the sites, where their $3,000,000 h
Slide 16: Current Status
Current Status For personal use only Affordable Seniors Housing I
Slide 17: Current Status
Current Status For personal use only Current Villages - projected on completion valuations $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 Cranbourne* Warragul $40,000,000 Tarneit Brookfield $30,000,000 $20,000,000 $10,000,000 $- 2008 2009 2010 2011 *Represents 100% of the on completion
Slide 18: Outlook
Outlook For personal use only Net profit before tax and significant items • Received 22 settlements YTD for 12,000,000 FY2012 • The current committed sales bank (as 10,000,000 of 12th August) is 144 (representing over $32m of committed revenue), of 8,000,000 this 85 commitments are contracted and aw
Slide 19: Outlook: Development forecast
Outlook For personal use only Development forecast Community FY12 FY13 FY14 FY15 FY16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Brookfield (Melton) Seasons (Tarneit) Warragul Cranbourne Shepparton Chelsea Heights Hastings Drouin The above timescale reflects current forecasts of the
Slide 20: Summary
Summary For personal use only • FY2011 key financial highlights: • Gross revenue $28.0 (FY2010: $23.9m) • Net profit before tax $10.4m (FY2010: $8.5m) • Net tangible assets $36.1m (FY2010: $29.1m) • Status of existing communities (correct at 17 August 2011): • Brookfield: 100% of sites sold • Tarnei
Slide 21: Disclaimer
For personal use only Disclaimer While every effort is made to provide accurate and complete information, Lifestyle Communities Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms
Slide 22: Commercial in confidence
For personal use only Commercial in confidence I