Lifestyle Communities Land Acquisition Update

Lifestyle Communities Limited (ASX: $LIC) has made significant progress following the $275 million capital raising in February 2024. The company has agreed commercial terms on three land opportunities identified in the capital raising presentation and is currently in an exclusive due diligence phase on each site. Managing Director, Mr James Kelly, expressed optimism about the future growth potential as these acquisitions are expected to add approximately 740 homes to the development pipeline.

Executive Commentary on FY24 Trading Update

Mr James Kelly, Managing Director, highlighted that Lifestyle Communities is on track with its construction program and remains confident in delivering homes for settlement as needed. Despite the challenges in the beachside and northwest Melbourne locations, the company achieved 110 new home sales in the first quarter of calendar year 2024, indicating sustained demand for its product. Mr Kelly also mentioned that the resale settlements for FY24 are expected to be between 145 and 155, with average capital growth at 9.8% and average time on market for resales at 65 days.

Summary of Land Acquisition and FY24 Trading Update

Lifestyle Communities (ASX: $LIC) has advanced its land acquisition process post the capital raising, setting the stage for future growth in FY27 and beyond. The company's construction program remains on track, with an estimated 290 to 310 new home settlements for FY24, slightly below the previous expectation. However, the company anticipates a target new home settlement range of 1,080 to 1,130 for FY23 to FY25 and remains comfortable with the FY24 to FY26 range of 1,400 to 1,700 new home settlements. Additionally, the resale settlements for FY24 are expected to be between 145 and 155, with strong average capital growth and efficient transactions in the resale homes segment. Lifestyle Communities continues to perform well operationally, welcoming first homeowners to its communities and completing the clubhouse at Lifestyle Woodlea, setting a new standard of design and amenity.