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Lifestyle Communities Ltd (AU:LIC)
:LIC
Australian Market
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Lifestyle Communities Ltd (LIC) AI Stock Analysis

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AU

Lifestyle Communities Ltd

(Sydney:LIC)

Rating:62Neutral
Price Target:
AU$4.50
▼(-3.23%Downside)
Lifestyle Communities Ltd shows a mixed outlook. The most significant factor is the financial performance, with strong revenue growth but declining profitability and cash flow challenges suggesting caution. Technical analysis indicates bearish momentum, which could pressure the stock price further. However, the valuation appears attractive with a low P/E ratio, providing some potential upside if operational improvements are realized.
Positive Factors
Financial Management
Greater confidence in LIC managing its cash flow to protect the balance sheet.
Future Growth
Expect growth in FY25 driven by LIC's development pipeline and softer inflation figures.
Growth Potential
The company is well positioned to ramp development when market conditions normalise.
Negative Factors
Customer Sentiment
Management noted customer sentiment has been negatively impacted due to recent media coverage.
Earnings Impact
Our FY25/26 EBITDA is -16%/-11% on our updated settlement outlook.
Valuation Concerns
Current valuation assuming LT growth is structurally impaired, which is disagreed upon.

Lifestyle Communities Ltd (LIC) vs. iShares MSCI Australia ETF (EWA)

Lifestyle Communities Ltd Business Overview & Revenue Model

Company DescriptionLifestyle Communities Limited, together with its subsidiaries, provides housing for its homeowners in community in Australia. The company operates 26 communities, including 19 in operation and 7 in planning or development. It serves working, semi-retired, and retired people. The company was formerly known as Namberry Limited and changed its name to Lifestyle Communities Limited in June 2007. The company was incorporated in 1997 and is based in Melbourne, Australia.
How the Company Makes MoneyLifestyle Communities Ltd generates revenue primarily through the sale of homes within its communities and the ongoing management fees associated with operating these communities. The company's business model involves acquiring land, developing it into residential communities, and selling individual homes to residents. Once a community is established, LIC earns recurring income through management fees, which cover the provision of community services and amenities. Additionally, LIC may benefit from capital appreciation of the properties it develops. Significant factors contributing to its earnings include the demand for affordable housing solutions for the aging population in Australia and strategic land acquisitions to expand their portfolio.

Lifestyle Communities Ltd Financial Statement Overview

Summary
Lifestyle Communities Ltd exhibits a mixed financial performance. While revenue growth is strong, profitability metrics have weakened, indicating potential margin pressures. The balance sheet shows a solid equity base, but rising leverage could increase financial risk. Cash flow challenges may impact the company's ability to reinvest or service debt, warranting caution moving forward.
Income Statement
65
Positive
Lifestyle Communities Ltd shows consistent revenue growth over the years, with a notable increase from 2023 to 2024. However, the net profit margin decreased significantly from 2023 to 2024, indicating reduced profitability. The gross profit margin has also declined, pointing to increased cost pressures or pricing challenges. Despite this, the company maintains a respectable EBIT and EBITDA margin, reflecting operational efficiency.
Balance Sheet
74
Positive
The company has maintained a healthy equity ratio, indicating a stable capital structure. The debt-to-equity ratio has increased over the years, reflecting higher leverage, which could pose risks in economic downturns. However, the return on equity remained strong, suggesting effective use of shareholder funds for generating profits.
Cash Flow
58
Neutral
Cash flow analysis reveals challenges in generating positive operating and free cash flows. The operating cash flow has turned negative in recent years, and free cash flow has significantly deteriorated, which could affect liquidity. The high operating cash flow to net income ratio in previous years now shows signs of strain, implying potential operational inefficiencies.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue258.37M242.43M232.29M224.41M137.90M127.28M
Gross Profit47.73M64.96M52.54M53.12M33.17M33.34M
EBITDA29.49M27.04M38.72M38.82M23.97M23.68M
Net Income51.95M49.98M81.90M88.87M91.11M42.82M
Balance Sheet
Total Assets1.58B1.51B1.20B1.01B782.62M597.97M
Cash, Cash Equivalents and Short-Term Investments1.50M4.09M1.23M1.89M2.30M16.38M
Total Debt360.75M328.26M376.06M245.41M190.62M145.78M
Total Liabilities729.79M679.88M670.71M554.38M404.52M306.60M
Stockholders Equity848.26M831.75M524.86M453.46M378.10M291.37M
Cash Flow
Free Cash Flow-38.05M-126.20M-38.94M38.66M-37.49M3.09M
Operating Cash Flow-31.79M-115.23M-30.41M41.73M-31.93M5.70M
Investing Cash Flow-86.97M-88.15M-82.04M-80.67M-21.13M-32.77M
Financing Cash Flow118.41M206.25M111.80M38.53M38.98M38.47M

Lifestyle Communities Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.65
Price Trends
50DMA
6.61
Negative
100DMA
7.19
Negative
200DMA
8.08
Negative
Market Momentum
MACD
-0.66
Positive
RSI
32.58
Neutral
STOCH
30.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LIC, the sentiment is Negative. The current price of 4.65 is below the 20-day moving average (MA) of 5.87, below the 50-day MA of 6.61, and below the 200-day MA of 8.08, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 32.58 is Neutral, neither overbought nor oversold. The STOCH value of 30.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LIC.

Lifestyle Communities Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCWP
76
Outperform
AU$610.58M11.5411.86%3.65%32.36%109.17%
AUHMC
70
Neutral
AU$1.59B6.8015.75%3.12%107.77%257.12%
63
Neutral
$6.74B18.42-1.93%7.60%4.67%-25.44%
AULIC
62
Neutral
AU$565.26M10.467.50%2.26%8.28%-39.60%
AUCOF
55
Neutral
AU$728.75M-8.21%10.69%-9.52%47.94%
AUINA
54
Neutral
AU$2.14B36.213.77%2.15%22.09%-19.31%
AUAOF
53
Neutral
AU$75.62M-26.33%7.39%-7.19%-94.37%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:LIC
Lifestyle Communities Ltd
4.64
-4.90
-51.36%
AU:COF
Centuria Office REIT
1.22
0.14
12.96%
AU:AOF
Australian Unity Office Fund
0.46
-0.05
-9.80%
AU:INA
Ingenia Communities Group
5.22
0.26
5.24%
AU:CWP
Cedar Woods Properties Limited
7.41
2.85
62.50%
AU:HMC
Home Consortium Ltd
3.77
-3.79
-50.13%

Lifestyle Communities Ltd Corporate Events

JPMorgan Becomes Substantial Holder in Lifestyle Communities
Jul 16, 2025

JPMorgan Chase & Co. and its affiliates have become a substantial holder in Lifestyle Communities Ltd, a company involved in the development and management of residential communities. As of July 14, 2025, JPMorgan holds a 5.18% voting power in the company, which may influence its strategic decisions and market positioning.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$10.40 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

Citigroup Acquires Substantial Stake in Lifestyle Communities
Jul 10, 2025

Citigroup Global Markets Australia Pty Limited has become a substantial shareholder in Lifestyle Communities Ltd, acquiring a 5.8664% voting power through various securities lending agreements. This acquisition marks a significant stake in the company, potentially influencing its strategic decisions and impacting stakeholders, as Citigroup’s involvement could bring additional resources and expertise to Lifestyle Communities Ltd.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$10.40 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

Lifestyle Communities Faces Legal Setback Over Contractual Clauses
Jul 8, 2025

Lifestyle Communities Ltd is facing a legal challenge regarding its deferred management fee (DMF) clause in residential site agreements, which was ruled void due to inadequate disclosure. The company plans to appeal the decision and has already begun amending its contracts to comply with the ruling. Despite the legal setback, the company assures that its financial covenants remain unaffected, and it will not charge rent on deceased estates moving forward.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$10.40 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

Lifestyle Communities Considers Appeal After VCAT Ruling
Jul 8, 2025

Lifestyle Communities Ltd has received a judgement from the Victorian Civil and Administrative Tribunal (VCAT) regarding its deferred management fee agreements. While the legitimacy of the fee concept was upheld, some agreements were declared void, prompting the company to consider an appeal. The company is in a trading halt pending further legal advice and will update the market on the implications for its operations and stakeholders.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$10.40 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

Lifestyle Communities Ltd Initiates Trading Halt Pending VCAT Decision
Jul 6, 2025

Lifestyle Communities Ltd has requested a trading halt on its securities pending an announcement related to a decision by the Victorian Civil and Administrative Tribunal (VCAT). The trading halt is expected to last until the company releases an announcement regarding the VCAT decision or until normal trading resumes on 9 July 2025. This move indicates a significant development in the company’s operations, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$10.40 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

Lifestyle Communities Awaits VCAT Judgment Impact
Jul 3, 2025

Lifestyle Communities Ltd has announced that the Victorian Civil and Administrative Tribunal (VCAT) will deliver a judgment on July 7, 2025, regarding a proceeding involving the company. The outcome of this judgment could have significant implications for the company’s operations and its stakeholders, and Lifestyle Communities plans to assess the judgment’s impact and communicate further details to the market promptly.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$10.40 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

Lifestyle Communities Ltd Enhances Financial Flexibility with Equity Securities Issuance
Jul 1, 2025

Lifestyle Communities Ltd announced the issuance and conversion of unquoted equity securities, reflecting a strategic move to enhance its financial flexibility. This development could potentially strengthen the company’s market position by increasing its capital base, thereby supporting future growth initiatives and benefiting stakeholders through improved operational capabilities.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$10.40 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

JPMorgan Reduces Stake in Lifestyle Communities Ltd
Jun 29, 2025

Lifestyle Communities Ltd, a company involved in providing housing solutions, has seen a change in the substantial holding of its shares. JPMorgan Chase & Co. and its affiliates have reduced their voting power from 6.91% to 5.25%, indicating a significant shift in their investment strategy regarding the company. This change in shareholding could impact the company’s market perception and influence its future strategic decisions.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$9.00 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

JPMorgan Increases Stake in Lifestyle Communities Ltd
Jun 24, 2025

Lifestyle Communities Ltd, a company involved in the real estate sector, has experienced a change in the interests of its substantial holder, JPMorgan Chase & Co. and its affiliates. The substantial holder’s voting power has increased from 5.40% to 6.91% as of June 20, 2025. This change reflects JPMorgan’s increased stake in the company, which may impact the company’s market positioning and influence shareholder dynamics.

The most recent analyst rating on (AU:LIC) stock is a Buy with a A$9.00 price target. To see the full list of analyst forecasts on Lifestyle Communities Ltd stock, see the AU:LIC Stock Forecast page.

Lifestyle Communities Awaits VCAT Decision on Legal Proceedings
May 6, 2025

Lifestyle Communities Ltd is currently involved in proceedings before the Victorian Civil and Administrative Tribunal (VCAT) concerning preliminary legal issues. The hearings have concluded, and a decision is awaited from President Justice Woodward. The company has committed to keeping its shareholders informed as the situation develops.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025