Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — H1 FY2022 Earnings Presentation
33 slides from Lifestyle Communities's earnings presentation, February 2022
Slide 1: Results Presentation – Half year ended 31 December 2021
personal use only Results Presentation Half year ended 31 December 2021
Slide 2: Contents
Contents Appendix Overview 1 A.1 Model of Living 23 Operations Update 7 A.2 Growing Recurring Revenue 24 personal use only Financial Results 13 A.3 Dividend Policy 25 LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Outlook 18 A.4 Sales and Settlements 26 Summary 20 A.5 Deferred Management Fees 27 A.6 C
Slide 3: Our story continues
personal use only 1.1 Our story continues 2012 2004 Major capital raising of Development of first community at $36m to drive future growth Brookfield. First homeowner moves in June 2005 2021 Over 4,000 homeowners. Acquire land for 25th community 1 Community 2 Communities 7 Communities 12 Communities
Slide 4: A business for purpose
1.2 A business for purpose An affordable housing option for Australians aged over 50 personal use only A sustainable financial model where homeowners can prosper An empowering and engaging customer service offering that reimagines traditional retirement LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE H
Slide 5: Overview: Financial Summary
Financial Summary Net profit after tax 1HFY22 ($ Million) $27.5 1HFY21 ($ Million) $14.1 1.3 Overview Total assets $925.9 $643.6 1HFY22 Results snapshot Equity $400.3 $303.5 Dividend 4.5 cents per share 3.0 cents per share Net debt $273.5 $173.4 personal use only Net debt to net debt plus equity 40.
Slide 6: 1HFY22 Highlights
1.4 Overview LI F E ST Y LE CO MMUNI T I E S A BU SI NESS FO R PURP OSE 1HFY22 Highlights personal use only • Lifestyle Meridian launched for sale in September 2021 – 51 sales to end of December • Signed contracts to purchase land at Phillip Island (announced FY21 results), Mickleham, and Ocean Grov
Slide 7: Portfolio overview and land acquisition strategy
1.5 Portfolio overview and land acquisition strategy 25 Communities in planning, development or under management Lifestyle Communities undertakes a personal use only detailed vetting of each potential site, and prioritises acquisitions based on Shepparton Focus remains on Melbourne and Geelong’s the
Slide 8: Portfolio overview
1.6 Portfolio overview Homes occupied or sold and awaiting settlement LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Total homes in Homes sold and Homes sold and Communities communities occupied awaiting settlement No. % personal use only Existing Communities – Sold out Brookfield in Melton 228 228 22
Slide 9: Operations Update
Se ct io n 2 Operations Update personal use only 7 Lifestyle Deanside
Slide 10: Sales and settlements
2.1 Sales and settlements LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE • 168 new home sales personal use only No. of % • Actively selling new communities at Mount Duneed, Kaduna Park, Community Homes Sold % Sold Settled Settled Wollert, Deanside, St Leonards and Meridian Mount Duneed 191 161 84% 139
Slide 11: Sales rates
2.2 Sales rates A BUSINESS FOR PURPOSE • Sales impacted by Covid-19 pandemic and Sales profile from date of first sale personal use only associated restrictions in Melbourne • Wollert in particular was a Covid “hotspot” 180 Historical and sales slower to return average • Sales tactics changed during
Slide 12: Developments in progress
2.3 Developments in progress 6 Communities in development phase LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE personal use only Community complete. Community complete, 84% sold. Clubhouse completed in May 2021. 4% of homes remaining to sell. 44% sold. Clubhouse completed in June 2021. Clubhouse due t
Slide 13: Ocean Grove II
200M Current community 2.4 Ocean Grove II KINGSTON VILLAGE N SHOPPING KINGSTON CENTRE WETLAND RESERVE COAST AL BOU LEVAR D MEDICAL personal use only CENTRE ALDI • Located approximately 3.5km’s from existing project Future community • Walking distance to an established shopping centre BELLARINE VETER
Slide 14: Digital transformation update
2.5 Digital transformation update A BUSINESS FOR PURPOSE • New Website –Phase 1 redesign completed personal use only and went live in September 2021 • SAP Business By Design – Finance System – Design completed and system went live on the 1st of January 2022. • Salesforce – Currently in the build pha
Slide 15: Financial Results
Se ct io n 3 Financial Results personal use only 13 Lifestyle Deanside
Slide 16: Financial results
3.1 Financial results Annuity income will continue to increase through new home settlements, rental increases and resales of existing homes A BUSINESS FOR PURPOSE personal use only There are two components to the annuity Homes Home sites under management stream: 3,500 1. Site Rental Fee 2,958 (2) LI
Slide 17: Income statement
3.2 Income statement A BUSINESS FOR PURPOSE • New home settlements were 166 for the first half, compared 1HFY22 1HFY21 % personal use only with 88 in the prior year Income statement ($’000) ($’000) Movement • Cost of sales includes $19.8m for the share of community Home settlement revenue 72,491 34,
Slide 18: Balance sheet
3.3 Balance sheet A BUSINESS FOR PURPOSE personal use only • The value of inventory held has increased due to: 1HFY22 2HFY21 % – the ramp-up of civil costs at Wollert, Deanside and St Balance sheet highlights ($’000) ($’000) Movement Leonards to facilitate housing construction and future Cash and ca
Slide 19: Cash flow
3.4 Cash flow LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE • Receipts from customers increased due to increased settlements, increasing annuity revenue, and increased 1HFY22 1HFY21 personal use only deferred management fees Cash Flow Highlights ($’000) ($’000) Receipts from customers 101,478 54,650
Slide 20: Outlook
Section 4 Outlook personal use only 18 St Leonards, Arnold
Slide 21: Outlook
4.1 Outlook Projected Project Phasing A BUSINESS FOR PURPOSE • Lifestyle Communities has a focused strategy to service a niche - providing high quality affordable housing to the over 50s Community FY22 FY23 FY24 personal use only • Currently funded and resourced to acquire two to three new Q1 Q2 Q3
Slide 22: Summary
Section 5 Summary personal use only 20 Electric car at Kaduna Park
Slide 23: Summary
5.1 Summary A BUSINESS FOR PURPOSE • 18 operating communities, 7 communities in personal use only planning/under construction • Sales launched at Meridian – 51 homes sold • 1HFY22 delivered 166 new home settlements and 68 resale settlements that attracted a DMF • We enter the second half with 252 ne
Slide 24: Appendix
Appendix personal use only 22 Maxine and Olivia provide a warm welcome at reception
Slide 25: Model of living
A.1 Model of living How does the Lifestyle Communities’ model of living work? LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Homeowners at Lifestyle Communities own their own home and lease the land upon which their homes are located, via a personal use only weekly site fee and a deferred management f
Slide 26: Growing recurring revenue stream
A.2 Growing recurring revenue stream Lifestyle Communities’ business has two core elements A BUSINESS FOR PURPOSE personal use only 1. Creating communities 2. Managing communities A mix of equity and debt capital is used to develop greenfield Completed communities generate recurring revenue streams
Slide 27: Dividend policy
A.3 Dividend policy Meridian Clubhouse As a general principle, Lifestyle Communities intends to pay dividends out of post-tax operating cashflow personal use only generated from community management including: • Operating cash flow generated from community management (net rental and DMF) • Apportion
Slide 28: Sales and Settlements
A.4 Sales and Settlements New home settlements Net sales commitments Resale home settlements LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Communities 1HFY22 1HFY21 1HFY22 1HFY21 1HFY22 1HFY21 personal use only Existing Communities – Sold out Brookfield at Melton 8 9 Seasons at Tarneit 10 2 Warragul
Slide 29: Deferred Management Fees
A.5 Deferred Management Fees LIFESTYLE COMMUNITIES A BUSINESS FOR PURPOSE Casey Chelsea Berwick Ocean Brookfield Seasons Warragul Fields Shepparton Heights Hastings Lyndarum Officer Geelong Waters Bittern Grove Total personal use only Historical resales(1) 157 47 73 74 42 55 50 16 20 16 15 20 10 595
Slide 30: Cash flow analysis 1HFY22
A.6 Cash flow analysis A BUSINESS FOR PURPOSE Supplementary Cash Flow Completed Communities Analysis for 1HFY22 Communities Ocean Grove Mount Duneed Kaduna Park Wollert North Deanside St Leonards Meridian in planning Total personal use only Total Number of Homes 2,284 220 191 169 246 266 359 274 1,2
Slide 31: Cash flow analysis 1HFY21
A.7 Cash flow analysis A BUSINESS FOR PURPOSE Supplementary Cash Flow Completed Communities Analysis for 1HFY21 Communities Ocean Grove Mount Duneed Kaduna Park Wollert North Deanside St Leonards in planning Total personal use only Total Number of Homes 2,284 220 191 169 246 266 199 1,099 4,674 Sett
Slide 32: Important notice and disclaimer
Important notice and disclaimer warranty, express or implied, beliefs of LIC’s management cautioned not to place undue is made as to the fairness, as well as assumptions made reliance on forward-looking personal use only accuracy, completeness or by and information currently statements and LIC assum
Slide 33: Lifestyle Communities Limited
personal use only Lifestyle Communities Limited Level 1, 9-17 Raglan Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au
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