Lifestyle Communities shares fall on co-founder departure
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More news: Shares in Lifestyle Communities sank in morning trade on the ASX after the property developer announced the retirement of its co-founder and managing director James Kelly.
Shares were down 5.6% to $8.88 by 11:30am AEDT, making it the second-worst performing stock across the ASX 200.
The company's shares have halved in value since January, weighed down by softness in the residential property market and media reports of unethical behaviour in new home settlements.
Lifestyle Communities co-founder and MD James Kelly to retire
The news: Property developer Lifestyle Communities has announced the retirement of its co-founder and managing director James Kelly.
The numbers: Kelly co-founded Lifestyles Communities 21 years ago and has served as the company's managing director since it listed on the ASX in 2007.
Lifestyle shares were down 3.7% to $9.05 in early trading and over the last 12 months have plummeted 42.5%.
The context: Lifestyle Communities said it has started the process to appoint a new CEO. Kelly intends to retire on 31 December, while Lifestyle Communities chair David Blight will assume the role of executive chair from 1 January 2025 until the new CEO is appointed.
In July, Lifestyle Communities shares tumbled after media reports of unethical behaviour impacted new home settlements. Kelly said at the time that the business was facing headwinds from the media coverage along with continued softness in the residential property market. Its statutory profit slumped 39% to $49.9 million for the year to June.
What they said: "James has been the driving force behind Lifestyle Communities, creating a thriving business grounded in purpose and strong culture," Blight said.
"While we are saddened by his departure, we have been discussing the timing of James' retirement for some time and we remain deeply grateful for his contributions and the positive impact he has made in the lives of many."
Kelly said: "I feel immense pride in what we've built together, starting from that first meeting with Bruce and Dael in a Melbourne cafe in February 2003, where I sensed we were creating something special".
"As I 'rewire' into the next chapter of my life I am looking forward to new adventures — spending more time with family and friends and perhaps exploring a few new business ventures," he said.
The source: ASX announcement
