Lifestyle Communities FY24 financial performance

Lifestyle Communities (ASX: LIC) reported a 25.7% decline in operating profit for FY24, down to $52.9 million from $71.1 million in FY23. The decline is attributed to low consumer confidence, high inflation, and rising interest rates impacting the Victorian property market. Despite these challenges, revenue from established community management increased by 16%.

Lifestyle Communities FY24 results and FY25 outlook

Lifestyle Communities (ASX: LIC) faced a challenging FY24 with a significant drop in operating profit due to market conditions. The company is navigating difficulties such as negative media coverage, impacting sales and leading to increased cancellations. Their strategy includes restoring reputation, adjusting costs, and managing leadership transitions. The company completed a $275 million equity raise for future growth and is focusing on cost management and customer engagement to counteract media impacts. They expect between 120 to 130 settlements in 1HFY25 and forecast operating earnings after tax of $19.5 million to $22 million. Medium-term opportunities exist due to macroeconomic factors like an aging population.

Executive insights on Lifestyle Communities' FY24 performance

The company's FY24 performance was impacted by low consumer confidence due to high inflation and rising interest rates, adversely affecting the Victorian property market. This resulted in a 25.7% decline in operating profit, from $71.1 million in FY23 to $52.9 million in FY24. Despite these challenges, revenue from established community management increased by 16%.