Core Viewpoint - Keyton, a retirement community operator spun off from Lendlease, aims to operate 20,000 retirement living units, focusing on expansion along Australia's East Coast [1] Company Overview - Keyton currently operates approximately 13,500 housing units, making it one of Australia's largest retirement community operators, adding 200 to 300 units annually [4] - The CEO, Nathan Cockerill, emphasizes the intention to accelerate growth through acquisitions, leveraging existing land reserves for development [5][7] - Keyton's existing scale has been achieved through a series of acquisitions, targeting small developers who struggle to manage multiple projects [7] Growth Strategy - The company plans to sell its 10-project portfolio in Western Australia (approximately 1,600 units) to concentrate on East Coast development [8] - Keyton's operational cash yield is between 3% and 3.5%, with equity returns of 8% to 10%, driven by project value appreciation [8] Industry Context - The retirement property sector is experiencing heightened interest, with a significant portion of new projects being multi-story/apartment-style buildings [10] - The average price per unit for Keyton is around AUD 650,000, with various purchasing models available [10] - The current vacancy rate for retirement housing in Australia is only 4%, with average unit prices at 59% of the local median house price, indicating a strong market position [11] Demographic Trends - By 2040, the population aged 75 and above in Australia is projected to increase from 2 million to 3.7 million, an 85% growth, while only 12,000 new units are expected to be added in the next five years, leading to a significant supply-demand mismatch [11]