Aspen Group (ASX: APZ), a property group focused on affordable accommodation and lifestyle communities, has announced its FY25 results, surpassing previous guidance. The company, which owns and operates a diversified portfolio of residential, park, and commercial properties, reported strong financial performance across key metrics, setting a positive tone for FY26. Total Comprehensive Income before tax reached $77.0 million, equating to 38.0 cents per security. Net Asset Value (excluding Deferred Tax Liability) increased by 14% to $2.54 per security, while Underlying Operating Earnings rose by 22% to 16.8 cents per security.
The company also reported growth in its rental pool, which included 4,156 dwellings/sites. The average number of dwellings/sites in the rental pool increased by 6% to 3,984. Average gross rent was up 3% to $325 per week, and average weekly net rent increased by 7%. Development activities also contributed significantly, with a 47% increase in Development Profit to $12.7 million. Total settled sales increased by 14% to 111, and the Return on Invested Capital was 18%. Aspen Group highlighted a strengthened balance sheet with 13% gearing and a 4.6x Interest Cover Ratio. EBITDA increased by 29% to $41.4 million, and Underlying Operating Earnings rose by 35% to $34.1 million.
Aspen Group has increased its distribution by 18% to 10.0 cents per security, with 90.7% tax deferred. Looking ahead to FY26, Aspen anticipates continued strong performance and has issued guidance well above FY25 levels. The company projects Underlying Operating EBITDA of $47.0 million, representing a 14% increase. Underlying Earnings Per Share (EPS) is expected to rise by 13% to 19.0 cents, and the Distribution Per Security (DPS) is projected to increase by 10% to 11.0 cents. The company believes it has substantial opportunity to grow due to the structural shortages of quality accommodation for most Australian households.
The announcement, authorised by the Board of Aspen Group Limited, underscores the company’s commitment to disciplined acquisitions, cost-effective refurbishment, and development strategies. Aspen Group aims to maintain competitive rents and sales prices, mitigating risks and enhancing growth prospects for its securityholders. Detailed information, including the assumptions underlying the FY26 guidance, can be found in Aspen’s FY25 Financial Report and Results Presentation released on the ASX.
