Lifestyle Communities (LIC) H1 2026 earnings summary

Executive summary

• Statutory net profit after tax for 1HFY26 was AUD 15.8 million, rebounding from a significant loss in 2HFY25 but lower than prior periods due to reduced settlements and DMF revenue following the VCAT decision.

• Net new home sales rose 168% year-over-year to 110, with settlements at 128, down from 137 in 1HFY25.

• Operating cash flow was AUD 41.2 million, supported by inventory reduction and land sales.

• Net debt reduced to AUD 323.6 million from a peak of AUD 490 million in May and AUD 460.5 million at June 2025, reflecting deleveraging efforts.

• Customer satisfaction improved to 78.0 in September 2025, up from 75.7 in March 2024.

Financial highlights

• Operating profit after tax was AUD 16.1 million, down from AUD 22.7 million in 1HFY25, impacted by lower settlements and margins.

• Gross rental income grew 11.9% year-over-year to AUD 25.3 million, with total annuity revenue at AUD 26.7 million.

• Home settlement margin declined to 11.0% from 14.9% in 1HFY25 due to targeted price adjustments.

• Net assets increased to AUD 648.1 million at December 2025.

• Fair value uplift on investment properties was AUD 21.3 million, with VCAT-related adjustments of AUD 5.2 million and land sale adjustments of AUD 3.3 million.

Outlook and guidance

• Focus remains on execution of the new strategy, further deleveraging, and positive operating cash flow in 2HFY26.

• No new project launches planned for FY26; emphasis on selling through built stock and inventory reduction.

• Lower prior period sales rates expected to temper future settlements due to lag effect.

• Demand fundamentals for downsizer living remain strong due to an aging population and housing affordability pressures.