Co-Founder and Managing Director James Kelly this morning revealed the operating revenue for the Victorian land lease operator’s 21 communities increased to $47.2 million for the FY23 year, an increase of 16%.
Lifestyle Communities’ operating profit increasing by 15.8% to $71.2 million (FY22: $61.4 million) while valuation gains lifted statutory profit after tax to $81.9 million (FY22: $88.9 million).
The company, which is celebrating its 20th year, saw its drawn debt increase from $245 million at the end of FY22 to $371 million at the end of FY23.
“New home settlements were lower than we would have liked in FY23 due to new customers at two projects taking slightly longer to list their homes for sale,” said James in a statement on the company’s Full Year results.
“With the seven new projects that commenced construction this year, we’re expecting to see settlements in FY24 weighted to the second half as we welcome new homeowners to those communities for the first time.
“With the land already in the pipeline and our continuing land acquisition cycle, we are planning to deliver 1,400 to 1,700 new home settlements between FY24 and FY26. Resale settlements attracting a DMF are anticipated to be in the range of 550 to 750 over the next three years.”
Lifestyle Communities revealed it had bought land in Clifton Springs, a coastal town located on the Bellarine Peninsula, near Geelong, and Yarrawonga, a renowned holiday destination in the north of Victoria, which means its total portfolio of completed homes, homes under development, and homes yet to be developed increased to 5,912.
James said it leads the market with its Deferred Management Fee – uncommon in the land lease sector.
“We can see the value of this approach coming through in the prices being achieved for homes being resold within our communities, achieving an average capital growth of 9% per annum. All customers that sold during the year after staying for more than five years, exited with more than the incoming price, after paying the maximum 20% deferred management fee,” he said.
The SOURCE: After 20 years, Lifestyle Communities’ business is still growing.
