Lifestyle Communities (LIC) AGM 2024 summary

Opening remarks and agenda

• Chair welcomed attendees, introduced directors, executive team, and auditor, and outlined hybrid meeting format and procedures for questions and voting.

• Chair David Blight and Managing Director James Kelly welcomed attendees and outlined the meeting's focus on performance, challenges, and future plans.

Financial performance review

• Delivered 311 new home settlements and 151 resale settlements despite a challenging Victorian property market and negative consumer sentiment; both figures down from FY23.

• Operating profit declined 25.7% from $71.1m in FY23 to $52.9m in FY24 due to lower settlements and higher marketing costs.

• Community management/annuity income increased by 16% to $54.7m, and $275m was raised to strengthen the balance sheet and fund land acquisitions.

• Media coverage in July 2024 led to increased cancellations and lower sales, with 25 net sales (55% referred) in the half to October.

• FY25 1H settlements expected at 120–130, with operating earnings after tax projected at $19.5m–$22m; operating cash flow was negative due to development spend front-running settlement revenue.

Board and executive committee updates

• Chair transition completed in September; JoAnne Stephenson joined the board in July.

• Executive search underway for new Managing Director/CEO; retention plan for leadership team being finalized to ensure stability during transition.

• Search underway for an additional Independent Non-Executive Director.

• Board actively involved in daily strategy, risk, and operational discussions.