• Navigated challenging external conditions, with sales beginning to show signs of recovery
• VCAT decision in July 2025 will result in further business model optimisation in FY26
• Statutory loss in FY25 due to financial adjustments as a result of the VCAT case

Lifestyle Communities Ltd presented its full year results for the year ended 30 June 2025. The company navigated challenging external conditions, with sales beginning to show signs of recovery in the second half of the year after being impacted in the first half. The VCAT decision handed down on 7 July 2025 declared the DMF calculation methodology in LIC's contracts void, resulting in a $135.5 million after tax write-down in the carrying value of investment properties and a $54.5 million after tax provision for repayment of DMFs previously collected. Lifestyle Communities intends to appeal the decision and expects a material proportion of these adjustments to be reversed if the appeal is successful. The company also executed contracts to sell four parcels of land to right-size the development pipeline, recouping circa $114 million in capital. Lifestyle Communities' portfolio and pipeline stands at 5,750 homes, of which 4,128 homes are occupied by 5,800+ homeowners. The company has a renewed focus on optimising its land bank and inventory levels, as well as de-leveraging its balance sheet through various capital management initiatives.

Lifestyle Communities is encouraged by the gradual recovery in sales in the second half of FY25 and has had a solid start to FY26, consistent with an indicative improvement in the residential property market. The company intends to appeal the VCAT decision and expects a material proportion of the resulting adjustments to be reversed if the appeal is successful. Lifestyle Communities is focused on further optimising its business model and balance sheet in FY26 as it navigates the impacts of the VCAT decision.