• Offer existing homeowners option to move to new DMF model
• Aims to generate goodwill and strengthen brand reputation
• Potential $117M adjustment to carrying value of DMF component

Lifestyle Communities Limited (ASX: LIC) will offer all existing homeowners the option to move to the New DMF Model once the VCAT appeal is determined, regardless of the outcome of the appeal. In July 2025, Lifestyle Communities changed its Deferred Management Fee (DMF) to be consistent with the findings of the VCAT ruling handed down on 7 July 2025. This New DMF Model calculates the fee on the homeowner's purchase price and pro-rates it over a 5-year period to a maximum of 20% of this price. Due to the VCAT decision, the carrying value of the DMF component of investment properties for existing homeowners on Lifestyle Communities' balance sheet as at 30 June 2025 was written down to zero. Lifestyle Communities has been considering offering existing homeowners the option to move to the New DMF Model and wishes to ensure its homeowners are in a position to make a fully informed decision. The key advantages of offering the New DMF Model to all existing homeowners after the VCAT appeal is determined include generating substantial goodwill and sentiment amongst its homeowner community, potentially contributing to homeowner satisfaction and a strong sales referral rate, and strengthening the brand and reputation of Lifestyle Communities for all homeowners based on transparency and consistency of the business model. Lifestyle Communities will amend the carrying value of the DMF component of investment properties during the period that any existing homeowners choose to move to the New DMF Model. The estimated potential adjustment to the 30 June 2025 carrying value of the DMF component of investment properties would be up to $117.0m if 100% of existing homeowners at that date were to move to the New DMF Model.