Lifestyle Communities shares slump after lower FY profit
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The news: Property developer Lifestyle Communities has reported a slump in full-year profit after recent media reports of unethical behaviour impacted new home settlements, sending its shares lower.
The numbers: Statutory profit for the year to June slumped 39% to $49.9 million, while operating profit also fell to $52.9 million, down nearly a quarter from a year ago and in the middle of its guidance range.
It prompted the company to cut its final dividend to 5 cents a share from 6 cents a year ago.
Lifestyle shares were down 5.5% to $8.53 in early trading on the ASX.
The context: Lifestyle said new home settlements fell to 311 from 356 in FY23, while pre-sales and marketing costs for new projects increased during the year.
CEO James Kelly said the business was facing headwinds including the impact of recent adverse media coverage and continued softness in the residential property market.
Last month, Lifestyle withdrew its future settlements guidance after media reports 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 source: ASX announcement
