Lifestyle Communities Ltd reported a fiscal 2026 turnaround, reducing net debt by AUD 186.8 million to AUD 273.7 million as operating cash flow swung to a positive AUD 94.9 million from a negative AUD 7.1 million in the prior year.
Statutory profit after tax for the year ended June 30 reached AUD 46.9 million, while operating profit after tax declined to AUD 25.4 million from AUD 45.2 million in FY25. Net tangible assets stood at AUD 5.59 per share, with the company’s gearing ratio improving to 28.7% from 47.8% a year earlier. The debt-to-equity ratio fell to 0.55, and the current ratio stood at 1.35.
Revenue drivers included a 12.4% increase in site rental income, supported by annual increases and new home settlements, while development margins softened to 10.4%. The average price per settled home decreased to AUD 589,000 from AUD 608,000 in FY25. Net new home sales surged 55.4% to 216 units, with total sales including resales reaching 400. Established home sales grew 55% year-on-year to 184 units, with settlements totaling 171.
Inventory levels improved significantly, with unsold homes reduced by 55% to 121 units. The company now manages 4,368 homes across 25 operating communities, up 5.8% from FY25. The development portfolio includes nearly 1,400 sites, with a total pipeline of 5,750 homes and over 4,300 already occupied, representing a 3-to-4-year land supply. Approximately 640 sites and 738 homes remain to be developed from the land bank.
Management highlighted a 23% increase in brand awareness and a customer satisfaction score of 78.9, the highest since measurement began. The face-to-face appointment-to-sale conversion rate improved to about 25% from a historical level near 22%. Around 28% of net sales opted for an upfront management fee since its introduction.
Looking ahead, Lifestyle Communities expects a 7% cost reduction in FY27 through organizational and operational efficiencies. The next community launch is planned for the second half of FY27, while rental indexation for FY27 is set at 4.6%, effective July 1. The company has provisioned for an unfavorable outcome in the VCAT appeal, with a judgment date of August 18, 2026.
Shares were quoted at AUD 5.34, up 1.71%, after the results were released. The stock remains roughly 14.6% above its 52-week low of AUD 4.47 and 14.6% below its 52-week high of AUD 6.25.
