• Operating profit after tax increased 9.5% in 1HFY25
• Debt facility restructured to provide improved covenant headroom
• Broader business environment and property market in Victoria remains subdued
• Mr. Henry Ruiz appointed as new Chief Executive Officer

Lifestyle Communities Ltd (ASX: LIC) has released its results for the first half of FY25, reporting a 9.5% increase in operating profit after tax from $20.8 million in the first half of FY24 to $22.8 million in the first half of FY25. This was underpinned by higher new home settlements over the period compared to 1HFY24 and continued strong performance from the company's operating business. The company has also restructured its debt facility to provide improved covenant headroom, increased tenor, and a reduction in the overall facility size to reduce commitment fees and better reflect capital requirements. However, the broader business environment and property market in Victoria remains subdued, with lower levels of activity in most segments of the residential property market. The sales cadence remains slow, but improvements in lead indicators in January and February show positive momentum. The Board has resolved to pause the dividend for this period and retain capital in the business until market conditions improve and the sales cadence shows sustained improvement. The company remains confident in its position regarding the upcoming Victorian Civil and Administrative Tribunal (VCAT) hearing scheduled for May 2025. Lifestyle Communities has also appointed Mr. Henry Ruiz as the new Chief Executive Officer, effective 5 March 2025. Mr. Ruiz is a seasoned executive with over 25 years' experience in the property, digital media, and technology sectors, and has served in various leadership roles at REA Group.

The immediate focus is on driving sales from executing the inventory management strategy and strengthening the balance sheet. The revised banking facilities provide additional headroom to navigate the relatively subdued operating environment while the company undertakes management initiatives to reposition the business to capitalise on future growth opportunities.