Investor Presentaiton

Key Risks Key risks and uncertainties associated with the business This section discusses some of the key risks and uncertainties associated with an investment in Lifestyle Communities. A number of risks and uncertainties may adversely affect the business, operations, results of operations, reputation, prospects, liquidity, capital resources, financial performance and financial position of Lifestyle Communities (together, "Lifestyle Communities' Position") and in turn affect the value of Lifestyle Communities shares. These include specific risks associated with an investment in Lifestyle Communities and general risks associated with any investment in listed shares. The risks and uncertainties described below are not the only ones that Lifestyle Communities may face. Additional risks and uncertainties that Lifestyle Communities is unaware of, or that Lifestyle Communities currently deems to be immaterial, may also become important factors that affect it. Potential investors should carefully consider whether the New Shares offered are a suitable investment having regard to their own personal investment objectives and financial circumstances and the risks set out below. If required, potential investors should seek to obtain independent advice from their financial or other professional adviser. Business strategy risk Lifestyle Communities' business strategy is focused on building, owning and operating land lease communities for people seeking to downsize in Victoria. A key element of its strategy and earnings is attributable to development and sale of new homes in its communities. Lifestyle Communities' future growth is dependent on the successful execution of this strategy. Any change or impediment to implementing this strategy may adversely impact on Lifestyle Communities' Position. Development risk Lifestyle Communities has a land and property development pipeline. Such projects have a number of risks including (but not limited to): delays or issues around planning, application and regulatory approvals; development costs overruns; environmental costs; (i) (ii) (iii) (iv) project delays; (v) issues with building and supply contracts; and (vi) this legislation could result in a reduction in resident demand to enter into leases in the communities and therefore impact Lifestyle Communities' business. Land leases are subject to relevant State-related regulations and legislation, including the Residential Tenancies Act 1997 (Vic). Legislative changes, either temporary or permanent, may increase the protections for tenants, resulting in a loss of rent or increased rental arrears. Income and expense growth rates Higher than expected inflation rates could lead to greater development and/or operating costs. While existing leases are subject to rental rate increases, the ability to raise future rents and maintain or grow occupancy may be impacted by resident pension and rental assistance growth. Lifestyle Communities' Position could be impacted where the inflation in operating and development costs exceeds the growth in rental income. Tax implications Lifestyle Communities' future tax liabilities may be impacted by changes to Australian taxation law, including changes in interpretation or application of the law by the courts or taxation authorities in Australia. This in turn could impact the value of trading prices of Lifestyle Communities shares, the taxation treatment of an investment in Lifestyle Communities or the holding costs or disposal of its shares. Litigation Lifestyle Communities may, in the ordinary course of business, be involved in possible litigation, regulatory actions, legal or arbitration proceedings and other dispute processes that may adversely affect Lifestyle Communities' Position. Joint venture arrangement Lifestyle Communities has a joint venture arrangement to manage the communities at Chelsea Heights and Casey Fields. The agreements related to the joint venture arrangement require unanimous consent from all parties for all relevant activities. The ongoing success and viability of the joint venture arrangement could be impacted if the parties cannot agree unanimously on relevant activities. expected sales prices or timing of expected sales or settlements not being achieved. A sustained downturn in the residential property markets due to deterioration in the economic climate could result in reduced development profits through lower selling prices, higher costs or delays in timing of settlements. Increased competition Lifestyle Communities operates in the niche of providing high quality affordable housing to the downsizer market, with a focus on Melbourne's growth corridors as well as key Victorian regional centres. Future developments that directly or indirectly compete with Lifestyle Communities' existing portfolio could impact Lifestyle Communities' current business and financial performance. Rental income While homeowners at Lifestyle Communities own their own home, they lease the land upon which their homes are located, via a weekly site fee and a deferred management fee. The Social Security Act 1991 (Cth) can provide rental assistance in respect of these leases, where homeowners are eligible to receive it. Any change to Dividends Future dividends paid on Lifestyle Communities shares will be determined by the Directors having regard to the operating results, future capital requirements, bank debt covenants and Lifestyle Communities' Position. There can be no guarantee that Lifestyle Communities will continue to pay dividends at the current level or at all. Investment property valuation risk Lifestyle Communities' investment properties are externally valued at least every two years, with changes in their fair market value reflected in its balance sheet. Adverse changes in the fair market value may arise due to changes in valuation assumptions used by independent valuers and the directors, which may include external market factors outside of Lifestyle Communities' control such as rent capitalisation rates, external market price growth assumptions and other available market data. Lifestyle Communities - Equity Raising Presentation - February 2024 19

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