Lifestyle Communities (ASX:LIC) has released its financial results for the first half of FY26, revealing a period of "disciplined progress" despite significant market challenges.
The company reported a statutory profit after tax of $15.8 million, a decrease from the $22.7 million recorded in H1 FY25.
The downturn was primarily attributed to lower new home settlements—dropping from 137 to 128 units—alongside reduced deferred management fee revenue following a recent VCAT decision and rising interest costs.
Net sales for new homes surged by 168% compared to the same period last year, while established home net sales rose by 40%.
Rental income from operating communities also provided a resilient "annuity stream," growing 11.9% to reach $25.3 million, bolstered by CPI-linked increases.
Lifestyle Communities transitioned to a positive operating cash flow of $41.2 million, a massive swing from the $12.9 million deficit in H1 FY25.
This was achieved through a reduction in development expenditure and strategic land sales, which helped slash net debt from $460.5 million to $323.6 million.
At the time of reporting, Lifestyle Communities' share price was $5.23.