Lifestyle Communities shares lift on September quarter result
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More news: Lifestyle Communities has seen its share price lift after the property developer released its first quarter trading result for financial year 2026, which demonstrated “positive progress” amid a “generally soft” residential property market in Victoria.
At 1:54pm AEDT, shares in Lifestyle Communities had lifted 5.4% to $5.63.
Lifestyle Communities flags flat sales during first quarter
The news: Property developer Lifestyle Communities said it has made "positive progress" in the first quarter despite a "generally soft" residential property market in Victoria, and after the Victorian Civil and Administrative Tribunal (VCAT) ruled in July that some of the company's deferred management fees were void.
The numbers: Net sales of 50 during the quarter was up from 48 in the previous quarter.
The group said targeted selling during the quarter has resulted in a continued reduction in inventory balances. It reported a total of 216 unsold completed homes at 30 September, down from 257 at 30 June.
As at 6 October, net debt is $347.7 million, down from $460.5 million at 30 June, driven by land sale proceeds of $100 million and a $19 million working capital release.
The company reported 237 contracts on hand, with 160 homes that will be available for settlement in FY26. Of those 160 contracts, 52 customers are booked to settle prior to 30 June 2026 and have unconditional contracts on their current homes.
It also reported that 53 customers were actively marketing their own homes for sale, while 55 customers have placed deposits and are yet to list their homes for sale.
The context: Lifestyle Communities said its operating environment is "showing signs of stabilisation and our business performance is becoming more consistent across quarters".
The group said its new marketing campaign, launched last month, has led to an "immediate increase in appointment rates".
What they said: "After a challenging start to the financial year following an unexpected VCAT finding, I am proud of the commitment our team have demonstrated toward our homeowners and future prospects, and this was reflected in the pleasing sales performance in Q1 of FY26," said Lifestyle CEO Henry Ruiz.
"The fundamental drivers of demand for homeowners seeking to downsize (financial and lifestyle) remain strong. We are confident that these drivers together with the changes we are driving through our business will underwrite the long-term outlook."
The source: ASX
