Melbourne-based Lifestyle Communities, which owns and operates a total of 5,231 homes occupied or in development, is clearly doing things right.
It posted a net profit after tax of $27.5 million for HY2022, a 95% increase in profit on the prior corresponding period due to higher settlement numbers. In addition, it reported its assets have increased from $643.6 million to $925.9 million over the same period.
Over the six months to 31 December, the company’s 68 resales – up from 32 in the same period a year earlier – more than doubled its DMF revenue to $4.7 million.
“As we are capital recyclers and do not raise equity, we are dependent on driving a high sales rate so that we can build a community, get our capital back and then build another one. So, our sales rates are driven by low house prices relative to the catchments in which we build, our amazing marketing, which is above and through the line with laser-like digital focus, and 50% of our sales coming through referral from our customer centric culture,” said Co-Founder and CEO James Kelly.
“It’s been the same model for nearly 20 years and our EPS growth and ROE are the proof in the pudding for our shareholders.”
In fact, investing in Lifestyle Communities five years ago would have seen your shares rise 355%. The total shareholder return over the same period, which includes dividends is 36% per year.
Lifestyle Communities has focused entirely on Melbourne and Geelong’s growth corridors.
