Lifestyle Communities Ltd

LIC: XASX (AUS)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
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Lifestyle Communities: House Sales Hurt by Critical Media Coverage

Lifestyle Communities’ start to fiscal 2025 is weaker than we expected. First-half guidance is for 120 to 130 home settlements, flat with the previous corresponding period. We think negative media coverage in mid-2024 regarding the charging of a deferred management fee, and housing cyclicality delaying resident’s purchase decisions are likely to weigh on the firm’s sales volumes and pricing over fiscal 2025. At current prices, Lifestyle screens as fairly valued.

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