Investor Presentaiton
Upfront Investment Delivers Long-term Annuity-like Cash Flows
• Need for capital early in life of
project for land acquisition and
development
• Capital recovery from c. years 4-6
for greenfield developments
Illustrative example of unlevered Greenfield development cash flow profile (years) (2)
4-6 year development
and settlement
Aim to recover 100% of
cash cost of development,
including land, and recycle
capital
Long-term, annuity-like
payments from Rental Fees
and Deferred Management
Fees ("DMF")
-
Homes are priced with the aim
Phase 1
Development
Phase 2
Settlement
Capital recovery
period...
-
of recovering 100% of
development costs (1)
On average, homes typically
priced at 75-80% of the median
house price in the target
catchment
• Released capital is then recycled
into future projects
• Completed communities generate
Capital
intensive
development
phase
recurring income streams, which
continue to grow as newly
developed communities are added
to LIC's portfolio
.. proceeds recycled
into other
development projects
Phase 3
Management
1
2
3
4
5
6
7
Development
Rent
DMF
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Cumulative cash flows (separate scale to columns)
(1) Includes land, sales and marketing, holding costs and a share of corporate overheads. (2) This is an example only. The actual cash flow profile for a specific development will depend on a range of factors (many of which are
outside LIC's control) and may not reflect this example. Please also refer to "Development Risk" in the Key Risks section.
Lifestyle Communities - Equity Raising Presentation - February 2024
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