• Early signs of recovery after a challenging FY25
• Update on capital management initiatives
• Renewed company strategy to reimagine the way to live for independent downsizers

Lifestyle Communities Ltd provided an update on its FY25 performance, navigating challenging external conditions with the Victorian property market beginning to show signs of recovery. The company experienced a decline in net sales in the first half of FY25 before recovering in the second half. Lifestyle Communities has a portfolio of 4,128 homes occupied by 5,800+ homeowners, with 1,622 homes remaining to be developed from existing and land bank communities. The company also provided an update on its capital management initiatives, including right-sizing its debt facility, inventory and working capital management, land optimisation, and a pause on dividends to preserve capital. The macro themes that have underpinned Lifestyle Communities' success over the last 20 years, such as ongoing demand for affordable housing, demographic shifts, and the national housing crisis, remain and are intensifying. The company has renewed its strategy, reflecting an evolution of purpose to 'Reimagining the way to live for independent downsizers', which is brought to life through three strategic pillars: being the go-to-choice for downsizers, renowned for the homeowner experience, and powering its growth engine. Lifestyle Communities is entering FY26 with a clear plan and the right team in place, focused on execution and positioning the business for the next development cycle, which is expected to emerge in late FY26 as property market conditions improve.

In FY26, shareholders can expect to see further de-leveraging of the balance sheet and positive operating cash flow due to further targeted inventory reduction, communities in progress having passed their peak development spend phase, and sufficient supply in communities in progress with no new project launches planned (subject to market conditions).

Lifestyle Communities is well-positioned to realise its long-term potential, with the fundamental drivers of demand for independent downsizer living options remaining strong, and the company maturing its operating model. The company is focused on execution and positioning the business for the next development cycle, which is expected to emerge in late FY26 as property market conditions improve.