BUZZ-Citi flags earnings hit for Australia's Lifestyle Communities after court rules to scrap exit fees

Reuters
07/08
BUZZ-Citi flags earnings hit for Australia's Lifestyle Communities after court rules to scrap exit fees

** Citi says Lifestyle Communities LIC.AX may take a hit to earnings after local media reported a court ruling to the effect that the company has been charging customers exit fees without proper disclosure and they must be scrapped

** Brokerage sees the real estate developer potentially writing down A$250 million ($162.25 million) of deferred management fees, or exit fees

** The fee is one of LIC's two annuity income streams

** Citi analysts believe LIC may contest the decision in court

** Four analysts rate LIC "buy" or higher, three "hold" and one "sell"; the median price target is A$8.99 - data compiled by LSEG

** YTD, stock down 17.8% as of last close

($1 = 1.5408 Australian dollars)

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

((JasmeenAraIslam.Shaikh@thomsonreuters.com;))

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