Azzet reports on three ASX stocks with notable trading updates today.
Lifestyle Communities tanks after landmark court decision
Shares in Lifestyle Communities (ASX: LIC) were down around 38% at the open after retirement communities company was hit with a not unexpected major legal blow following the trading halt imposed on Monday.
Late yesterday afternoon, management updated the market on the landmark tribunal decision finding in favour of disgruntled residents at its two Melbourne estates.
Extending well beyond Lifestyle Communities, the entire retirement and land lease sector has been put on notice following the tribunal’s conclusion that the company’s lucrative deferred management fees (DMF), or exit fees, charged to residents were invalid under state tenancy laws.
While the Victorian Civil and Administrative Tribunal (VCAT) has directed the company to scrap certain exit fees, Lifestyle Communities intends to appeal the decision and apply for a stay of the orders until after the appeal is heard.
Meanwhile, until the appeal is resolved, the company plans to proceed as follows:
- For deposit holders and future homeowners, the company will amend the DMF calculation method to comply with Justice Woodward’s findings. It will be based on the homeowner’s purchase price and prorated over a 5 year period to a maximum of 20% of this price.
- For existing homeowners selling and leaving Lifestyle Communities, it will continue to operate under the existing contractual arrangements, pending the issuance of any orders by VCAT.
- Notwithstanding that the continued charging of rent after a homeowner's passing was found permissible under the Act, Lifestyle Communities will no longer charge rent on deceased estates.
- All other aspects of existing contractual arrangements will remain the same.
Commenting on last night’s outcome, Lifestyle Communities CEO Henry Ruiz acknowledged homeowners' rights to seek clarity through VCAT on matters where they have been unable to reach agreement via usual engagement channels.
“We take our compliance obligations very seriously and have sought and obtained legal advice at various stages in our history to ensure our contracts are compliant with all relevant legislation,” said Ruiz.
“We are disappointed with the outcome of the VCAT proceedings and intend to lodge an appeal.”
While the land lease sector is now bracing for tougher rules to protect seniors, it’s Lifestyle Communities that appears like to be most impacted given the unique nature of its blended fee model.
While Lifestyle Communities is expected to release its full year FY25 result 21 August, within today’s update the company expects Q4 sales rates to remain subdued impacted by seasonality, the Easter holiday period, and the federal election.
Other relevant financial information for the year ended 30 June 2025 includes:
- New home settlements – 268 (FY24: 311)
- Established home settlements 118 (FY24:151)
- Closing balance of drawn debt $463 million
“Given the challenging landscape; we were pleased with the final settlement results for FY25 and finishing the year by welcoming the first homeowners to our newest community in Pakenham, Lifestyle Ridglea,” said Ruiz.
Lifestyle Communities' market cap is $586 million; the share price is down 60% in one year and down 32% in the last week.
The stock’s shares appear to be in a strong near-term rally within a longer-term bearish trend.
Consensus is Moderate Buy.
BPM Minerals trades lower on sell-down update
Shares in BPM Minerals (ASX: BPM) were trading 2% lower heading into lunch after the gold stock announced plans to sell its Claw gold project located in WA’s Murchison region for $1.5 million to large-cap gold miner Capricorn Metals (ASX: CMM) which own the nearby Mount Gibson and Karlawinda gold projects.
Capricorn Metals’ investors weren’t crowing about the deal either with the share price down over 4% in late morning trading.
The transaction comprises a $100,000 cash deposit and a further $500,000 cash payment after the deal completes, according to a statement issued by BPM.
The remaining $900,000 balance will be paid in either Capricorn shares or cash.
Capricorn has also agreed to pay BPM up to $1.5 million in contingent and deferred milestone payments as follows:
- $750,000 in cash upon the announcement by Capricorn of a JORC compliant Mineral Resource Estimate in excess of 75,000oz of gold on the Claw Gold Project.
- $750,000 in cash upon the announcement by Capricorn of a board decision to commence a commercial mining operations on the Claw Gold Project.
Upon the completion of the Claw Gold Project transaction, BPM will have around $3.5m in cash with which to fund the recently acquired high-grade Forelands Gold Project, with near term resource conversion opportunities and significant exploration potential within 150km of Kalgoorlie WA.
BPM Minerals has a market cap of $4.1 million; its share price is down 18% in one year and up 84% in the last week.
While the stock’s shares appear to be in a long-term bearish trend confirmed by a falling 200-day moving average, there are rallies occurring in shorter timeframes.
Consensus does not cover this stock.
Telix Pharmaceuticals rises after updating on securities termination
Shares in Telix Pharmaceuticals (ASX: TLX) were up around 5% in early afternoon trading after the ASX 200 radiopharmaceuticals stock announced the cessation of certain securities, specifically 67,000 share rights and 436,190 share appreciation rights, due to the lapse of conditional rights that were not met or became incapable of being satisfied.
The market appears to have reacted favourably to what should be a positive impact on the company’s capital structure.
Investors should watch out for company updates on what today’s update means to stakeholders' perceptions, especially regarding the company’s operational and financial strategies.
The company is focused on developing diagnostic and therapeutic products, particularly in oncology. Headquartered in Melbourne, Telix maintains strategic international operations across the United States, Brazil, Canada, Europe (Belgium and Switzerland), and Japan.
In mid-June Telix reminded investors that it had started FY 2025 strongly, having delivered continued growth in global sales during the first quarter. This was driven largely by its flagship product, Illuccix – a PSMA-PET imaging agent.
For the three months, Telix generated US$151 million in Illuccix revenue, marking a 35% increase year on year. A further US$33 million of revenue came from its recently acquired RLS Radiopharmacies business.
The company also flagged that its second PSMA imaging agent, Gozellix has launched in the U.S. making Telix the only company to offer two FDA-approved agents in this domain.
The company believes it can expand its total addressable market (TAM) to over US$6.7 billion - compared to its current PSMA imaging TAM of $2.5 billion to $3.5 billion.
Telix Pharmaceuticals has a market cap of $8.5 billion; the share price is up 40% in one year and up 2.5% year to date.
The stock’s shares are in a downtrend confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
