This article is from the Australian Property Journal archive
Land lease community operator Lifestyle Communities is recovering from the negative publicity, posting a stronger first half operating profit and at the same time appointing Henry Ruiz as its new chief executive officer.
Lifestyle Communities announced an operating profit after tax of $22.8 million, a 9.5% increase from $20.8 million in the previous corresponding period.
Executive chair David Blight said the result highlighted the company’s resilience in navigating challenging market conditions, including negative media coverage and a soft residential property market.
Sales momentum remains slow, with 168 new home settlements completed and 281 deposits in hand. Of these, 175 homes are expected to settle in FY25, while 106 will be completed in FY26 and beyond.
The company has paused its dividend to retain capital, awaiting sustained improvements in sales cadence and market conditions.
“We remain disciplined in our approach and will continue to make changes as appropriate to navigate these headwinds and position the business for when the cycle turns,” he said.
The company has also restructured its debt facility, providing improved covenant headroom and a $40 million reduction in unused headroom, as well as a strategic review of land holdings aimed at reducing debt by $80–$100 million. Development expenditure has been cut by $100 million, with a focus on selling through existing projects until market conditions improve.
Meanwhile Henry Ruiz will take over as CEO next month, taking over from cofounder James Kelly who announced he was stepping down last year.
Ruiz brings 25 years’ experience in property, digital media, and technology, including 15 years at REA Group, where he served as CEO of REAx, Chief Strategy and Product Officer, Chief Digital Officer and CEO of REA Asia.
“Henry has extensive global experience having worked in Australia, US, Europe and Asia successfully leading large and diverse teams. He has an outstanding record of commercial and operational discipline, strong strategic acumen and a track record of empowering high performing teams,” said Blight.
Ruiz added, “It’s very motivating to join such a purpose driven company – creating a homeowner lifestyle that helps over 50s thrive in their best years of life. I feel very honoured to have the opportunity to work alongside such an incredibly dedicated & talented team and contribute to innovative thinking that sustainably enhances the lives of downsizers; fosters greater human connection and practically works to address housing affordability.”
