Lifestyle Communities (LIC) H2 2026 earnings summary

Executive summary

• Net new home sales increased 55.4% year-over-year to 216, despite a subdued Victorian property market, driven by targeted pricing and brand initiatives.

• Unsold inventory reduced by 55% to 121 homes, and homes under management grew to 4,368 across 25 communities.

• Customer satisfaction reached a record 78.9, supporting high referral rates and improved sales conversion.

• Net debt reduced by $186.8 million to $273.7 million, strengthening the balance sheet.

• Introduced a new DMF model and an Upfront Management Fee option, with 28% of new customers choosing the upfront model.

Financial highlights

• Statutory profit after tax was $46.9 million, rebounding from a $195.3 million loss in FY25; operating profit after tax was $25.4 million, down from $45.2 million.

• Operating cash flows reached $94.9 million, supporting debt reduction and balance sheet strengthening.

• Rental income grew 12.4% year-over-year to $51.4 million, driven by new settlements and annual increases.

• Investment properties valued at $952.9 million, with NTA at $5.59 per share.

• Inventory reduced to 121 unsold homes, aligning with optimal targets.

Outlook and guidance

• FY27 settlements expected to be subdued due to prior period sales lag; 146 contracts on hand for FY27 settlements.

• Focus remains on disciplined growth, operational discipline, and long-term shareholder value creation.

• Positive operating cash flows anticipated for FY27 as projects continue capital recovery.

• New community launch planned for the second half of FY27, subject to market conditions.

• Annual rental increase of 4.6% effective from 1 July 2026.