• Double-digit growth in new home sales, up 168% from 1HFY25
• Steady growth in rental income, up 11.9% from 1HFY25
• Positive operating cash flows of $41.2m, up from negative $12.9m in 1HFY25

Lifestyle Communities Ltd (ASX: LIC) has released its results for the first half of FY26 (1HFY26). Statutory profit after tax was $15.8m, compared with $22.7m in 1HFY25, reflecting lower new home settlements, reduced DMF revenue, and higher interest costs. Operating profit after tax was $16.1m for 1HFY26 (1HFY25: $22.7m). Key highlights include double-digit growth in net sales from new homes, up 168% from 1HFY25 and 12% from 2HFY25, as well as a 40% increase in established net sales. Rental income from operating communities grew 11.9% from 1HFY25, demonstrating the resilience of the rental annuity stream. The company reported positive operating cash flows of $41.2m for 1HFY26, up from negative $12.9m in 1HFY25, due to reduced development expenditure and inventory realisation. Net debt has been further reduced, down from $460.5m at June 2025 to $323.6m at December 2025, following land sales and inventory realisation. The company has also restructured its debt facilities, reducing the overall limits and providing longer tenor with no Interest Cover Ratio covenant until June 2028. The directors have decided to continue pausing dividends and retain capital within the business until the external environment improves.

In 2HFY26, shareholders can expect to see further de-leveraging of the balance sheet and full-year positive operating cash flow. The company will continue to be market-led in its development and sales approach, noting that lower prior period sales rates will temper future settlements.