Lifestyle Communities achieves strong FY23 results amid expansion plans

Lifestyle Communities (ASX: LIC), a developer of affordable independent living residential land lease communities, has reported robust financial results for the fiscal year 2023, driven by growth in community management revenue and operational profits. The company’s full-year report reveals a 16% increase in revenue from community management, increasing from $40.6 million to $47.2 million. Operating profit after tax grew substantially, rising from $61.4 million in FY22 to $71.2 million in FY23, excluding property valuation impact.

New home settlements for FY23 were recorded at 356 homes, compared to 401 in FY22. Resale settlements also demonstrated an upward trend, reaching 178 compared to 156 in the previous fiscal year. Shareholders are set to benefit from a final fully franked dividend of 6.0 cents per share, culminating in a total dividend of 11.5 cents per share for the year.

In an ASX release, Managing Director, Mr James Kelly said “Lifestyle Communities celebrates 20 years of operations this year and it is a privilege to have settled our 3,500th home and welcomed our 5,000th homeowner in this milestone year. Adding to our existing trademarks, we successfully registered the trademark for the words “Lifestyle Communities”, a proud moment for me personally, and an important step in protecting the substantial investment we have made in developing our brand over many years”.

Despite challenges in new home settlements due to listing delays, Lifestyle Communities maintains a positive outlook for FY24. With seven projects under construction, settlements are expected to rise in the year’s second half. The company plans to welcome 1,400 to 1,700 new homeowners between FY24 and FY26. Resale settlements with a Deferred Management Fee (DMF) are projected to range from 550 to 750 over the next three years. Lifestyle Communities also eyes expansion opportunities in Melbourne’s growth corridors and regional centres.

In the release, Mr Kelly highlighted the financial relief provided by Lifestyle Communities’ model in an inflationary environment, citing equity release and lowered living costs. The company’s long-term business approach is reflected in its 3-year settlement guidance, incorporating new land acquisitions.

Based in Melbourne, Lifestyle Communities boasts a portfolio of thirty residential land lease communities under various stages of development, management, and planning.

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