Lifestyle Communities’ NPAT to fall in FY22 despite 57% rise in home sales

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Victorian land lease operator Lifestyle Communities has warned shareholders that its FY22 Net Profit After Tax (NPAT) is likely to fall slightly on 12 months earlier due to a dip in property value assumptions.

“Subject to the finalisation of the year-end audit, the Company expects to report net profit after tax attributable to shareholders of $88.4 million-$89.4 million (FY21: $91.1 million),” Lifestyle Communities said in a statement to the ASX.

“Excluding the impact of the changes in property valuation assumptions, the underlying profit after tax is expected to increase from $36.4 million FY21 to a range of $60.5 million-$61.5 million in FY22.”

Lifestyle Communities said the rise is due to an increase in new home sales and in income from a higher number of homes under management.

New home settlements for FY22 were 401 (FY21: 255) and resale settlements attracting a Deferred Management Fee were 143 (FY21: 105), increasing annuity income by 25% to $40.6 million (FY21: $32.4 million).

The company, led by Managing Director and Co-Founder James Kelly, has 26 fully developed, partially developed or awaiting to be developed communities in Melbourne’s North West, Melbourne’s South East, the Mornington Peninsula, Geelong and the Bellarine Peninsula.

“With the land already in the pipeline, the Company is planning to deliver 1,400 to 1,700 new home settlements between FY23 and FY25. FY23 settlements are expected to be consistent with FY22 before a step up in FY24 and FY25 as new projects come online at Woodlea, Phillip Island, St Leonards, Clyde, Leopold, Pakenham, Merrifield and Ocean Grove (pictured),” the company said.

“Resale settlements attracting a Deferred Management Fee are anticipated to be in the range of 550 to 750 over the next three years.”

Lifestyle Communities will announce its audited FY22 financial results on 17 August.