In a statement to the Australian Stock Exchange last Friday, the South Melbourne-based land lease provider defended its actions but acknowledged that the taxpayer-funded broadcaster’s “investigation” might have a detrimental effect.
Already, Victoria’s Minister for Consumer Affairs, Gabrielle Williams, said she is developing a series of reforms, including a standardised site agreement for all residents.
Lifestyle Communities Managing Director and Co-founder James Kelly, who rejects claims about fees and rent made by 80 residents to the Victorian Civil and Administrative Tribunal (VCAT), said the business has written to VCAT “to request an urgent case management hearing with a view to progressing things as quickly as possible."
“Recent media coverage largely focused on exit fees without considering the lower entry price that our homeowners typically pay, nor the other benefits we offer,” James added.
Lifestyle Communities advised shareholders on Friday that FY24 operating profit after tax is expected to be in the range of $52.4 million to $53.4 million (FY23 $71 million).
It also stated a slight reduction in new home settlements: 311 in FY24, compared to 356 in FY23, and in resale settlements (151 in FY24 to 178 FY23).
“Average time on market for established homes sold in FY24 was 63 days (nine weeks) and average annual capital growth on those sales was 10.02%. On average, homeowners made a profit of $86,000 after paying the Deferred Management Fee (DMF)
“We have been heartened by the support from our homeowners across all our communities who felt the portrayal of Lifestyle Communities in the media coverage was not representative of our business or their lived experience. However, due to the difficulty in quantifying the impact the uncertainty caused by recent media coverage might have on future sales and settlements, all forward-looking guidance previously provided is withdrawn,” James added.
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