This article first appeared on GuruFocus.

• Net Sales: 139 net sales in FY25, with 41 in the first half and 98 in the second half.

• Capital Recouped: $114 million from land sales.

• Write-Downs: $135.5 million after-tax write-down in investment properties and a $54.5 million after-tax provision for DMF repayments.

• Debt Levels: Peaked at $490 million in May, reduced to $460.5 million by year-end.

• Operating Cash Flow: Improved from negative $115.2 million in FY24 to positive $4.6 million in FY25.

• Debt Facility: Reduced from $700 million to $571 million.

• Loan to Value Ratio: Finished at 47.8%.

• Adjusted EBITDA: $73.7 million.

• Interest Paid: $24.8 million.

• Underlying Operating Profit: $64.5 million pre-tax, down 15% from the prior year.

• New Home Settlements: 268 in FY25, compared to 311 in the previous year.

• Annuity Revenue Growth: Approximately 10% growth.

• Development Spend Reduction: Over $100 million reduction during the year.

• New Home Settlement Pipeline: 273 contracts on hand as of August 22, with 162 available for settlement in FY26.

Release Date: August 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Lifestyle Communities Ltd (ASX:LIC) observed early signs of recovery in FY25, with a significant increase in net sales from 41 in the first half to 98 in the second half.

• The company successfully executed contracts to sell parcels of land, generating $114 million in capital, which will help optimize their development pipeline.

• Customer satisfaction remains strong, with an increase from 75.8% to 76.7%, indicating a positive homeowner experience.

• Lifestyle Communities Ltd (ASX:LIC) reported a positive operating cash flow of $4.6 million in FY25, a significant improvement from the previous year’s negative cash flow.

• The company has adjusted its debt facility, reducing it from $700 million to $571 million, and extended the tenor on a portion of the debt, reflecting improved financial management.

• A significant VCAT decision declared the company’s DMF calculation methodology void, resulting in a $135.5 million after-tax write-down in investment properties and a $54.5 million provision for DMF repayments.

• The dividend remains paused until the balance sheet is delivered and sales cadence stabilizes, impacting shareholder returns.

• Debt levels peaked at $490 million during the financial year, although they have since decreased to $460.5 million.

• Development margins were lower due to targeted pricing strategies, impacting overall profitability.

• The company faces uncertainty with the ongoing appeal of the VCAT decision, which could affect future financial outcomes and contract structures.