Aspen Group (ASX: APZ), a real estate investment trust focused on affordable accommodation and property development across Australia, has announced strong operational and financial results for the nine-month period ending 31 March 2026. The company confirmed it is well on track to achieve its earnings guidance for both FY26 and FY27, underpinned by significant growth across key metrics.
For the period, Net Rental Income (NRI) climbed by 20% to $31.4 million, while Realised Development Profit saw a substantial 153% increase to $19.0 million compared to the prior corresponding period. This strong performance translated into a 45% rise in EBITDA to $43.1 million and a 67% jump in pre-tax earnings to $40.0 million, with pre-tax earnings per share reaching 17.6 cents, up 47%. Aspen’s long-term accommodation portfolio remains essentially full, with residential rents increasing by approximately 5% per annum, and developments like the Australind transportable conversion are progressing well with strong tenant interest.
The Group’s development activities are also progressing strongly, having achieved 88% of its FY26 Development Profit guidance by March, with 100% expected by May. Aspen currently holds 44 contracts, representing 20% of its FY27 settlement guidance of 220. New stages at Mount Barker and Ravenswood are launching, contributing a combined 90 residential land lots. The company highlighted expanding development profit margins and fixed-price contracts as protection against potential market slowdowns and building industry disruptions, reinforcing its focus on providing lower price point accommodation.
Aspen’s balance sheet is robust, featuring gearing of just 18% and an interest cover ratio approaching 6x. This strong financial position, supported by solid and diversified rental streams and low corporate overheads, provides ample capacity for funding organic growth initiatives and pursuing new acquisition opportunities as they arise. The company reiterated its expectation for continued strong growth across the business over the medium and long term.
