Lifestyle Communities on track despite Supply Chain constraints11 May 2022
Lifestyle Communities provided an update on its March quarter saying that their delivery programme was on track despite supply chain constraints.
The company expects to deliver between 390 and 405 new home settlements and between 140 and 150 resale settlements attracting a deferred management fee. As at the end of April 2022 there are currently 322 new homes sold and awaiting settlement; an increase from 252 at 31 December 2021.
The company reaffirms its forecast to deliver 1,100 to 1,300 new home settlements and 450 to 550 resale settlements attracting a deferred management fee between FY22 and FY24.
The unit price for the REIT is however trading down -49% since a peak in October 21 to close on the 6 May at 12.14. By comparison, the AREIT Index is off -11% over the same period. The Groups’ debt had risen above 40% in the December accounts and with interest rates expected to climb, supply chain issues emerging, and limited growth in fees relating to capital growth , the market has written back the value of the REIT.
Managing Director, Mr James Kelly, remains upbeat saying that “The supply chain in the construction industry remained under pressure in recent months but our construction team and strong relationships with key suppliers has ensured our build program remains on track. We recently received a planning permit for our latest development at Woodlea and look forward to commencing construction soon.”
“It’s been an exciting time for the business as we recently welcomed our first homeowners at our latest project at Meridian and launched our new Salesforce platform.”