While many investors are focussed on the larger players in the aged care sector such as Estia Health Ltd (ASX: EHE) and Regis Healthcare Ltd (ASX: REG) there are other companies which are carving out attractive niche businesses for themselves in the independent living sector for retirees.
Lifestyle Communities Limited (ASX: LIC) is one such company and judging by the interim results it released today, it's on a solid growth path. Here are the highlights from the announcement…
- Revenue from home site annuity rentals increased 22% to $5.5 million
- Revenue from deferred management fees increased by 52% to $1.2 million
- Net profit after tax increased 24% on an underlying basis to $8.9 million
- Net debt increased to $43.3 million and the net debt to equity ratio increased to 24%
- A fully franked dividend of 1 cent per share (cps) was declared. The shares will trade ex-dividend on March 10 with payment due on April 8
- 110 homes settled during the half year, taking the total number of home sites under management to 1,256
- An acquisition of land during the half took the total portfolio of home sites to 2,255
Looking forward
Lifestyle Communities operates in a sector that enjoys a favourable tailwind from an aging Australian population.
The group has provided guidance for the dividends in financial year (FY) 2016 to be greater than the total dividends paid in FY 2015 of 1.5 cps.
The company also stated that settlements in FY 2016 are likely to be lower than FY 2015 due to the timing of community developments. Pleasingly for shareholders however, profits in the current financial year are expected to be roughly the same as last year with the lower settlement rate being offset by increased contributions from rental and deferred management fees.
