Lifestyle Communities rallies despite $136m write down drives full-year loss
Make us a preferred source
Make us a preferred source on Google
The news: Embattled property developer Lifestyle Communities was one of the top performers on the ASX 200, even after it swung from a $50 million profit in FY24 to a $195.3 million loss in FY25.
The numbers: Shares were up 12.1% to $5.79 at 2:10pm AEST, having lowered 27.7% over the last 12 months.
The context: Lifestyle Communities' profit line was weighed down by a $135.5 million write down in the carrying value of its investment properties, after the Victorian Civil and Administrative Tribunal (VCAT) ruled last month that deferred management fees (DMF) in the some of the company's residential contracts were void.
The group also reported a $54.5 million tax provision for DMF repayments, collected from previous homeowners.
Lifestyle Communities said it intends to appeal the VCAT decision, flagging that "a material portion of these adjustments will be reversed if the appeal is successful".
It noted that its result was also impacted by lower settlement volumes year on year due to broader market softness, lower transaction volumes and lower clearance rates in the Victorian property market for new homeowners.
What they said: "FY25 was impacted by a challenging external environment, including subdued confidence and softness in the Victorian property market," said CEO Henry Ruiz.
"... During the year the VCAT case impacted buyer confidence, and we now have a path forward which will offer both new and existing homeowners certainty and choice.
"The second half of the year brought a welcome recovery in sentiment, with improved engagement from prospective homeowners and an increasing confidence in our offering."
The source: ASX
