This article is from the Australian Property Journal archive
AFTER a period of strong portfolio growth, Lifestyle Communities Limited (ASX:LIC) reported a net profit after tax of $27.5 million in the first half, up 95.1% from the $14.1 million in 2021.
LIC’s gross profit was at $16 million, up from $7.65 million in the first half of 2021, while net profit before tax was up 92.2% from $20.4 million to $39.2 million.
LIC reported to delivering 166 new home settlements over the first half of FY22, as well as 68 resale settlements and entering contracts to acquire three new land parcels.
The group’s homes under management increased to 2,958, up from 2,625 in the previous corresponding period, while also more than doubling resale settlements attracting a deferred management fee.
This represents an increase in total assets from $643.6 million in the pcp to $925.9 million.
“I continue to be impressed by the way our team responds to the frenetic pace of change in the current environment. The supply chain in the construction industry has come under substantial pressure in the last few months and our construction team and our supply partners have done an outstanding job leveraging loyal relationships built over many years to keep our build program on track,” said James Kelly, managing director at LIC.
While LIC’s portfolio of completed existing communities are sold out, at 100% occupancy, the group’s total portfolio occupancy, including those under construction is at 61%.
LIC’s existing debt facility increased over the period from $275 million to $375 million, in order to support the acquisition of three new sites and the growth of its development pipeline.
LIC’s equity was at $400.3 million, up from $303.5 million on the pcp, while net debt increased from $173.4 million to $273.5 million.
Meanwhile the groups cash and cash on deposit was down 77.4% from $2.3 million to around $519,000.
While gearing was up to 40.6%, a 22.4% increase from the pcp’s 33.2%.
LIC also reaffirmed its plans to deliver between 1,100 to 1,3000 new home settlements and 450 to 550 resale settlements during the period between FY22 and FY24.
The board declared an interim fully franked dividend of 4.5 cps, up from the 3.0 cps that was paid in the pcp.
