Lifestyle Communities: Co-Founder and Managing Director, James Kelly to Retire

Our AUD 8.60 per share fair value estimate for no-moat Lifestyle Communities is unchanged on the retirement announcement of co-founder and Managing Director James Kelly. Kelly co-founded the company 21 years ago and has served as managing director since its 2007 listing on the Australian Securities Exchange. He will step down at the end of 2024. A new CEO is yet to be appointed. However, from Jan. 1, 2025 David Blight, non-executive director and chair, will assume the role of executive chairman until a new CEO is appointed. Although the market initially responded negatively to the announcement, share prices have since stabilized and are flat with the preannouncement price, trading at about a 10% premium to our fair value estimate.