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Lifestyle Communities Limited (ASX:LIC)

ALERT: Price-sensitive ASX Announcement for LIC
Current share price for LIC : $5.270 -0.16 (-2.95%)+
Announcement
Release
9 Dec 2025 8:27AM
Price at Release
$5.430
Full Release
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Summary
Lifestyle Communities Limited (ASX: LIC) announced that it will offer its existing homeowners the option to transition to a new Deferred Management Fee (DMF) model following a VCAT ruling. This new model calculates the DMF based on the homeowner’s purchase price capped at 20% over five years. The previous model, deemed void by VCAT, calculated DMF on the sale price, leading to a write-down of the DMF component to zero in financial records as at 30 June 2025. The company aims to provide homeowners the opportunity to make informed decisions post-appeal, regardless of the outcome, and anticipates that this could enhance goodwill, satisfaction, and sales referrals. A potential adjustment to the DMF carrying value, estimated at $117 million, could occur if all homeowners opt into the new model.
Key Points
  • Lifestyle Communities Limited offers a new DMF model to existing homeowners post-VCAT ruling.
  • The new DMF model is based on the homeowner's purchase price, capped at 20% over five years.
  • The previous DMF model, based on sale price, was deemed void by VCAT.
  • The DMF component was written down to zero in financial records as at 30 June 2025.
  • All homeowners can transition to the new DMF model after the appeal, irrespective of the outcome.
  • The change is expected to generate goodwill and strengthen sales referrals.
  • Potential adjustment to the DMF carrying value could be up to $117 million if all homeowners opt in.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.