The news: Under fire property developer Lifestyle Communities has reported improved sales in the March quarter but expects the rate to be subdued amid a challenging operating environment.

The numbers: The company reported net sales of 50 homes in the three months to March, up from 20 in the preceding quarter. However, cancellations were also up to 21 from 17 earlier. 

It said targeted selling in the quarter resulted in positive momentum in inventory, with unsold inventory homes down to 242 by March-end, from 269 at December-end. It had 59 unsold homes under construction, down from 90 at December-end.

The context: Lifestyle has been under pressure since July last year after media reports of unethical behaviour impacted new home settlements and prompted the company to withdraw its future settlements guidance.

On Monday, newly-appointed CEO Henry Ruiz said he was encouraged by the directional improvement of the sales rate in the March quarter after a challenging period last year. The company is advancing on its goal of releasing $80 million to $100 million from land sales, with the proceeds to be used for paying down debt. 

 “We expect the Q4 sales rate to remain subdued, impacted by seasonality, the Easter holiday period and the upcoming federal election,” he said in a statement.