Lifestyle Communities shares slump after guidance pulled
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More news: Shares in Lifestyles Communities slumped nearly 13% to $9.65 in early trading after the property developer flagged lower profit for FY24 and withdrew future guidance.
This was a result of recent media reports of unethical behaviour created uncertainty over its future settlements.
The stock has now lost a quarter of its value since the ABC reported earlier this week that residents at one of its projects in Melbourne had alleged unethical conduct and lodged complaints with the Victorian Civil and Administrative Tribunal (VCAT).
Lifestyle Communities flags lower profit, withdraws guidance
The news: Property developer Lifestyle Communities has flagged a lower profit for FY24 and withdrawn future guidance after recent media reports of unethical behaviour hit future settlements.
The numbers: The company expects FY24 operating profit to be between $52.4 million and $53.4 million, down about a quarter from the $71.1 million reported in FY23. It also withdrew guidance about future settlements, citing the difficulty in quantifying the impact of recent adverse media reports.
Lifestyle shares are down more than 11% so far this week after an ABC news report that residents at one of its projects in northwest Melbourne had accused it of unethical conduct and lodged complaints with the Victorian Civil and Administrative Tribunal (VCAT).
The context: Lifestyle CEO James Kelly attributed the weak FY24 results to interest rate rises, persistent high inflation, and ongoing insolvencies in the building sector which impacted consumer confidence. The company achieved 376 new home sales during the year.
The company again rejected complaints made in the VCAT regarding exit fees at its projects and said it had requested an urgent case management hearing to defend itself.
What they said: “However, due to the difficulty in quantifying the impact the uncertainty caused by recent media coverage might have on future sales and settlements, all forward-looking guidance previously provided is withdrawn,” Kelly said.
The source: ASX announcement
