The ASX share GemLife Communities Group (ASX: GLF) could be a compelling business to own for the foreseeable future because of the potential for its earnings to grow.
Fund managers at Wilson Asset Management picked the business as one to keep an eye on. It was one of the largest 20 positions in the portfolio of listed investment company (LIC) WAM Research Ltd (ASX: WAX) at the end of February 2026.
WAM Research aims to own the most compelling undervalued growth opportunities in the Australian market. It also holds stocks such as Aussie Broadband Ltd (ASX: ABB), Gentrack Group Ltd (ASX: GTK) and Tuas Ltd (ASX: TUA).
Let's take a look at why GemLife is an attractive business to own.
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What does GemLife do?
The ASX share is not one of the most well-known businesses on the ASX. The fund manager described the business as an Australian 'pureplay' developer, builder, owner and operator in Australia's land lease community (LLC) sector, delivering resort-style communities for homeowners aged 50 and over.
WAM notes that it has more than 30 communities and projects across Australia, primarily spanning Queensland, New South Wales and Victoria.
FY25 result
The fund manager was pleased to see that the business announced a "positive" FY25 result in February, reporting robust growth and declaring that its performance had exceeded prospectus forecasts.
Revenue grew by 5.8% to $281.7 million, underlying operating profit (EBITDA) climbed by 9.4% to $110 million, and underlying net profit increased 10.1% to $90 million.
WAM also highlighted that GemLife announced positive capital management initiatives, refinancing existing debt to improve the organisation's balance sheet.
Its $700 million debt facility was originally scheduled to mature in June 2029. This has been refinanced into three tranches with staggered maturities. The cost of debt was also renegotiated, reducing the overall cost by 25 basis points (0.25%) compared to the previous facility.
Positive outlook for the ASX share
Turning to FY26, the business is focused on delivering active sites, providing identifiable earnings growth over the coming years.
It's expecting its underlying earnings per security (EPS) to grow by between 20% to 27% in 2026, reaching between 28.5 cents and 30 cents.
Upfront infrastructure works are expected to be delivered at several new communities, leading to a greater number of active projects contributing to settlements from FY27 onwards.
At 31 December 2025, there were 300 homes completed or under construction, up from 260 at 30 June 2025. It expects to settle over 420 homes in FY26, though the focus will continue to be on underlying earnings and profitability to support the ASX share's organic growth strategy.
