Lifestyle Communities shares fall on lower settlements forecast
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The news: Affordable housing provider Lifestyle Communities will acquire three new land sites but has also cut its full-year target for home settlements.
The numbers: The company said it has agreed commercial terms for three land sites, to be funded from the proceeds of a $275 million share sale in February. Meanwhile, it has trimmed its target for home settlements this fiscal year to between 290 and 310, down from its previous estimate of 350.
Lifestyle shares slumped nearly 10% to $12.85 in early trading on the ASX.
The context: The developer downgraded its home settlements expectations following slower than predicted settlements in beachside and northwest Melbourne locations, largely due to delays in customers' sale of their existing homes. It expects the number to rise to between 425 and 475 in fiscal 2025.
Meanwhile, the three new land sites being acquired are expected to add 740 homes to its development pipeline, with the developer saying it continues to assess a number of other opportunities but will remain disciplined in deployment of capital.
Managing director James Kelly said average capital growth remained strong at 9.8% so far this year, while average time on market in the resales business was steady at 65 days.
The source: ASX announcement
