Lifestyle Communities Ltd · ASX:LIC
Lifestyle Communities — FY2012 Earnings Presentation
30 slides from Lifestyle Communities's earnings presentation, Sep 20, 2012
Slide 1: Results Presentation Year ended 30 June 2012
Results Presentation Year ended 30 June 2012 UPDATED 20 September 2012
Slide 2: Contents
CONTENTS 1. Financial Results 2. Market Conditions and Opportunity 3. Business Model 4. Current Status 5. Outlook This document should be read with the Disclaimer at the end of the document Lifestyle Communities Limited Downsize to a Bigger Life 2
Slide 3: Section 1: Financial Results
Section 1 FINANCIAL RESULTS Lifestyle Communities Limited Downsize to a Bigger Life 3
Slide 4: 1.1 Highlights
1.1 HIGHLIGHTS • EBIT: $11.4m Income Growth • Net profit before tax: $8.9m • Net profit after (current) tax: $25,000,000 –– –– $7,000,000 $8.9m ^ • Net profit after tax: $6.0m • Included in profit is $0.5m –– $6,000,000 pre-tax of expenses written- $20,000,000 –– off relating to holding and –– $5,00
Slide 5: 1.2 Profit & Loss
1.2 PROFIT & LOSS FY2012 FY2011 Profit & Loss highlights % Movement ($’000) ($’000) Revenue Unit sales 22,835 22,697 +1% Management income 6,027 4,421 +36% Finance costs (2,764) (1,042) +165% EBIT 11,441 11,497 -0.5% Net profit before tax 8,877 10,422 -15% Net profit after (current) tax^ 8,877 10,42
Slide 6: 1.3 Balance Sheet
1.3 BALANCE SHEET FY2012 FY2011 Balance sheet highlights ($’000) ($’000) Investment properties 65,781 54,982 Total assets 105,408 92,821 Bank borrowings (current) - (2,334) Bank borrowings (non-current) (10,518) - Long-term loan note borrowings (non-current) (40,658) (37,170) Loan to value ratio 48.
Slide 7: 1.4 Cash Flow
1.4 CASH FLOW FY2012 FY2011 Cash flow highlights ($’000) ($’000) Receipts from customers 31,583 29,301 Payments to suppliers and employees^ (33,756) (27,480) Net interest payments (4,947) (659) Cash flows from operations (7,120) 1,163 Project capital expenditure (civil and facilities infrastructure)
Slide 8: 1.5 Supplementary Cash Flow Analysis
1.5 SUPPLEMENTARY CASH FLOW ANALYSIS Chelsea Supplementary Cash Flow Cranbourne Melton Tarneit Warragul Shepparton Heights Hastings Total Analysis for FY2012 (50% JV) (50% JV) Total Number of Homes 228 136 182 217 217 105 141 1,226 Settled FY2012 9 28 20 72 5 – – 134 Capital Cash Flows ($million) La
Slide 9: 1.6 Dividend
1.6 DIVIDEND • Dividend declared on 20 August 2012: • 0.5 cents per share (fully franked) • Record date: 7 September 2012 • Payment date: 26 October 2012 • The Company has recently announced a Dividend Reinvestment Plan (DRP) that is applicable to this dividend • Shareholders that elect to participa
Slide 10: 1.7 Loan Notes
1.7 LOAN NOTES As a result of executing the 10 year ^ $50m loan note facility in May 2011, Lifestyle Communities has been able to acquire land and commence development of new communities. The funding facility has enabled Lifestyle Communities to: • Commence construction at Lifestyle Shepparton and w
Slide 11: Section 2: Market Conditions and Opportunity
Section 2 MARKET CONDITIONS AND OPPORTUNITY Lifestyle Communities Limited Downsize to a Bigger Life 11
Slide 12: 2.1 Key Market Drivers
2.1 KEY MARKET DRIVERS Demographic changes are driving an increase in the size of the potential market The big housing market themes include: Affordability • The median net worth of a single person over the age of 65 is approx. $380,000 • 77% of single people [over 65] rely on pensions as their prim
Slide 13: 2.2 Affordability
2.2 AFFORDABILITY The Lifestyle Communities business model creates a long-term sustainable financial solution for homeowners Rent as a proportion of pension after rental assistance • Lifestyle Communities’ homeowners on the pension are paying $30,000 –– approximately: $25,000 –– 17% Victorian DHS Ta
Slide 14: 2.3 Market Size
2.3 MARKET SIZE It is estimated that the state of Victoria has over 355,000 people aged over 65 who fall within the Lifestyle Communities target wealth bracket(1) 400,000 –– Number of over 65s in Australia 350,000 –– 300,000 –– Rentals 250,000 –– Public Housing Not for Profits 200,000 –– 150,000 ––
Slide 15: 2.4 Market Conditions
2.4 MARKET CONDITIONS Sales rates improved in 2HFY2012, with an increasing level of enquiry • Affordability continues to be a key driver of enquiry • Residential property demand remains positive in Cranbourne and pre-sales enquiries at Hastings and Chelsea Heights have • Sales rates have rebounded i
Slide 16: Section 3: Business Model
Section 3 BUSINESS MODEL Lifestyle Communities Limited Downsize to a Bigger Life 16
Slide 17: 3.1 Business Model
3.1 BUSINESS MODEL Lifestyle Communities has a strongly differentiated business model that produces long term CPI indexed annuity streams for its investors Features Benefits Lifestyle Communities is the developer, Lifestyle Communities control all touch points with its sales agent and manager of its
Slide 18: 3.2 Annuity Streams
3.2 ANNUITY STREAMS The level of annuity income increases with each new home settlement There are 2 components Annuity Streams to the Annuity Stream: $5,000,000 –– 1. Site Rental Fee $4,500,000 –– • Approximately $160.00 per week $4,000,000 –– per home $3,500,000 –– • Indexed at the greater of CPI o
Slide 19: Section 4: Current Status
Section 4 CURRENT STATUS Lifestyle Communities Limited Downsize to a Bigger Life 19
Slide 20: 4.1 Current Status: Community Portfolio
4.1 CURRENT STATUS COMMUNITY PORTFOLIO Sites sold Sites sold Sites sold, Communities Sites and occupied and yet to be occupied and yet settled to be settled # % Brookfield (Melton) 228 226 1 227 99 Seasons (Tarneit) 136 127 7 134 99 Warragul 182 111 22 133 73 Cranbourne^ 217 92 40 132 61 Shepparton
Slide 21: 4.1 Current Status (cont.)
4.1 CURRENT STATUS (CONT.) Current Communities - projected on completion valuation $140,000,000 –– $120,000,000 –– Hastings Chelsea Heights * $100,000,000 –– Shepparton $80,000,000 –– Cranbourne * Warragul $60,000,000 –– Seasons (Tarneit) Brookfield (Melton) $40,000,000 –– $20,000,000 –– FY2008 FY20
Slide 22: 4.1 Supplementary Investment Property Analysis
4.1 SUPPLEMENTARY INVESTMENT PROPERTY ANALYSIS Community Valuation Summary Investment properties per On-completion independent 30 June 2012 financials 30 June 2012 valuations Investment Rental DMF Homes At fair value + DMF asset2 Total fair Total homes properties at component component Total ($m) oc
Slide 23: 4.1 Supplementary Investment Property Analysis
4.1 SUPPLEMENTARY INVESTMENT PROPERTY ANALYSIS Community Valuation Metrics Rental Metrics DMF metrics (extracts from valuations) (extracts from valuations) DMF Average sale Rental cap. DMF Net rental per home terminal cap. value rate discount rate rate (GST excl.) Mature Communities Brookfield 8.5%
Slide 24: Section 5: Outlook
Section 5 OUTLOOK Lifestyle Communities Limited Downsize to a Bigger Life 24
Slide 25: 5.1 Outlook
5.1 OUTLOOK • The current committed sales bank (as of 14 September 2012) is 153 (representing over $36m of committed revenue); this compares to a sales bank of 112 as at 31 Net profit before tax and significant items/EBIT December 2011. $12,000,000 –– • 78 net customer commitments were received betw
Slide 26: 5.2 Expected Settlement Profile
5.2 EXPECTED SETTLEMENT PROFILE Community FY13 FY14 FY15 FY16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Brookfield (Melton) Seasons (Tarneit) Warragul Cranbourne Shepparton Chelsea Heights Hastings The above timescale reflects current estimates of the settlement period for the existing develop
Slide 27: Contact Details
CONTACT DETAILS For further information please contact: Lifestyle Communities Limited James Kelly Bruce Carter Managing Director Executive Director-Finance Ph: (03) 9682 2249 Ph: (03) 9682 2249 Email: [email protected] Email: [email protected] Geoff Hollis Chief Financial
Slide 28: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER While every effort is made to provide accurate and complete information, Lifestyle Communities Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms i
Slide 29: Lifestyle Seasons Clubhouse at Dusk
LIFESTYLE SEASONS CLUBHOUSE AT DUSK Lifestyle Communities Limited Downsize to a Bigger Life 29
Slide 30: Lifestyle Communities Limited
Lifestyle Communities Limited Level 2, 35 Market Street South Melbourne VIC 3205 Ph: (03) 9682 2249 www.lifestylecommunities.com.au S H EP PARTON - C RANB OU RNE - WARRAGUL - CHEL SEA H EIGH T S - HA S T I NG S - TA R NE I T - M E LTO N