# LIC - Lifestyle Communities



## System (15 August 2010)

Lifestyle Communities Limited (LIC) develops, owns and manages affordable independent living communities for people over the age of 55. Lifestyle Communities has five strategically located sites or villages that are either under management, development or planning with a total capacity of 1100 sites.

http://www.lifestylecommunities.com.au


----------



## PinguPingu (20 August 2015)

According to Commsec/SMH these guys are reporting today, not quite exactly sure what they do here, aged living care you own? Came up on my momentum scanner.


----------



## peter2 (21 January 2019)

Not a popular company it seems.

The chart below is part of a research project and should not be considered a recommendation to buy this stock. If you want to read more about the project log in to read the P2 Weekly Portfolio thread. 

Setup: Weekly key reversal off support with average volume   Grade B due to my bias against sector
Buy limit: 5.30, iSL 4.80, initial target 6.30


----------



## Dona Ferentes (7 January 2020)

peter2 said:


> Not a popular company it seems.



others think differently. That consolidation around $5 lasted into May 2019; the trajectory since then has been steadily up and now $9+

And, by November 2019,







> ...retirement living provider* Lifestyle Communities* earned a 21 per cent upgrade to its price target from Goldman Sachs. The broker lifted its target on Lifestyle Communities to $10 a share, citing accelerating capital recycling that should allow the company to deliver at least two communities a year.
> 
> Goldman says the company remains self-funding with no need for additional equity, adding that its growing annuity asset base and contracting cap rates should allow it to debt-fund land acquisitions and developments.
> 
> The greater-Melbourne area also provides the company a strong tailwind because it has a lot of flat land available for development, higher population growth than the national average, and a growing proportion of retiree-aged people with no retirement savings outside the family home.



With a recent acquisition on the Bellarine Peninsula, Lifestyle Communities’ portfolio has increased by approximately 170 home sites to 3,730 which includes sites in planning, development or under management.

Business Snapshot
LIC Founded in 2003
Develop and manage _*land lease communities*_ which generate long-term sustainable revenue streams:

Focused on affordable housing for the over 55s market
Residents own their home and lease the land upon which their home is located
The Land Lease industry

There are 2,500 Residential Land Lease Communities (RLLC's) and caravan parks around Australia. Of those:
- 1,650 are pure tourist parks
- 750 are mixed use parks with tourists and permanents
- 170 are dedicated RLLC's
 NSW and QLD represent 82% of the industry
 Victoria has the lowest saturation of RLLC's per head of population
 Estimate that 70,000 people in Australia live in RLLC's and mixed use parks (compared to 190,000 people in retirement villages)



> ....The high cost of housing in Australia, stimulated by tax incentives and fuelled by years of cheap credit, and the swelling ranks of senior Australians heading into retirement are perennial topics at the proverbial barbecue.
> 
> Less well known is *the remarkable level of relative poverty*, by global standards, of those retirees. Among the OECD nations, Australia has the third-highest rate of relative income poverty for people aged over 65 at 25.7 per cent, following Korea and Latvia. The OECD metric is based on the proportion of the population with disposable incomes of less than 50 per cent of the median household. By contrast, the Czech Republic, Denmark, France, Luxembourg, the Netherlands and the Slovak Republic have the lowest poverty rates, all between 3 per cent and 4 per cent.
> 
> ...



https://www.afr.com/property/reside...s-a-boom-for-listed-landlords-20180731-h13dto


----------



## Dona Ferentes (12 August 2020)

The "_2020 financial year presented new challenges to trading conditions in Victoria with the onset of the COVID-19 pandemic forcing the business to adapt quickly.  Lifestyle Communities’ conservative balance sheet settings saw it well placed to face the changing trading conditions with strong liquidity and capital management and an agile team.  The COVID-19 pandemic had a modestly negative impact on the FY20 results with some new home settlements taking longer than anticipated to settle due to changing conditions in Victoria’s property market_. 

"Lifestyle Communities’ profit after tax was $42.8 million for the 2020 financial year, down 22.2% on the previous year.* Lower new home settlement numbers *and lower property revaluation gains were primary drivers of this result; however their impact was partially offset by a 25% increase in annuity income from site rentals and deferred management fees, which was up from $22.4 million to $28.1 million. 

_Lifestyle Communities’ shareholders will receive a final *fully franked dividend of 2.5 cents per shar*e, taking the total dividend for the year to 5.5 cents per share, in line with 5.5 cents per share in the prior year."
_
_goes on to say_: "The easing of restrictions in June led to an immediate increase in enquiry back to pre-COVID levels, which gives us confidence that demand will quickly pick back up when restrictions lift again.”
_Quite likely a beneficiary, in the longer term? I'd suspect the elderly 'customers' would prefer to defer any move to Aged Care, and try to stay in these 'communities' for longer. Maybe the focus and service delivery could morph to meet this expectation? 
_


----------



## Dona Ferentes (3 September 2021)

surging ahead .... closing at $21.67.  ATH.... probably a 'rebound' stock?


........ and included  in the S&P200 Index


----------



## Dona Ferentes (17 September 2021)

Funding Lifestyles of the Rich and somewhat famous:

how to wipe 10% off, from $22 to sub $20.  But rebounding a bit today


> Lifestyle Communities founder and MD James Kelly sold a $43 million stake to .. institutional investors, in a trade handled by Goldman Sachs.
> The line crossed the market on Wednesday morning at $21.50 a share, which was a 2.3 per cent discount to the prior close.




His holding went from 8.8% to 6.8%


----------



## Dona Ferentes (18 March 2022)

*Ally Selby:  *Welcome to Buy Hold Sell. I’m Ally Selby, and we have a very special one for you today. We scoured the top holdings of some of the country’s finest small-cap managers and today we’ll be taking a look at some of their favourite stocks. Today, I’m joined by Ben Rundle from Hayborough Investment Partners and Martin Hickson from 1851 Capital.

Next up we have fundie favourite Lifestyle Communities, which nearly doubled its net profit after tax in the first half. Ben over to you, is it a buy, hold, or sell?

*Ben Rundle (HOLD):*_ I think it’s a hold only on the valuation grounds. It’s one of my favourite companies. I think the management team is absolutely first class. They’ve done a great job of showing why high levels of customer service can be such a success. I really like the business, they’ve grown without using extra capital, and will continue to do so. It’s just super expensive, so it’s a hold for me._

*Ally Selby:* Its share prices sunk around 21 per cent year to date. Is it looking a little bit cheaper now? Is it a buy, hold, or sell?

*Martin Hickson (HOLD):* _It’s definitely looking cheaper than it was, but I think it’s still quite expensive on 30 times PE. They’ve done a fantastic job over the last few years, got the tailwind of an ageing population supporting that business. But I think given that valuation, it’s a hold.

........................._ though I'm with Aust Foundation (AFI), which mentioned it as a full disposal in the last reporting season (when it was in the $18-23 range, closing at $20 by end of Dec) ; AFI viewed the "_long term prospects for Lifestyle were increasingly challenged as competitive intensity increases". ... _and sold out. Now around $17


----------



## Dona Ferentes (4 May 2022)

and probably another casualty of RBA rate action? The headwind of more expensive money outweighing the tailwind of demography??
  ..... Lifestyle Communities down 8% today, to $13.50. Less sales, less financing, less social mobility?


----------



## Dona Ferentes (10 May 2022)

Dona Ferentes said:


> ..... Lifestyle Communities down 8% today, to $13.50.



now $12.21 down 0.8% which is probably up as the ASX is tanking.

Lifestyle Communities expects to deliver between 390 and 405 new home settlements and between 140 and 150 resale settlements attracting a deferred management fee.

The company reported 322 new homes were sold and awaiting settlement at the end of April, up from 252 at the end of December.

The company reaffirmed its forecast to deliver 1100 to 1300 new home settlements and 450 to 550 resale settlements attracting a deferred management fee between FY22 and FY24.


> “_The supply chain in the construction industry remained under pressure in recent months, but our build program remains on track,”_ said LIC managing director, James Kelly. “_We recently received a planning permit for our latest development at Woodlea and look forward to commencing construction soon._”


----------

