Aspen Group (APZ) investor relations material

Returns and operating model

• Proprietary ownership of 100% of properties and projects, with no joint ventures, profit sharing or fund interests; returns also supported by active operations, development and disciplined capital management.

• Average pre-tax return on equity was 23%, versus 10% for listed peers; NAV grew 2.3x over five years while DPS also grew.

• Underlying pre-tax EPS CAGR was 23% and pre-DTL NAV per security CAGR was 14% from FY19 to FY26.

Housing market and rental strategy

• Annual population growth rose from around 200,000 to 400,000 since the 1980s–90s while housing production stagnated.

• National median dwelling prices and rents were $885k and $713pw; estimated minimum production costs were $600k and $600pw, beyond reach for ~40% of households earning below $100k annually.

• Target customers can afford no more than ~ $500k to buy or $500pw to rent; the strategy focuses on lower-cost housing and rental supply.

• Rental stock rose from ~25% of dwellings in the 1980s to 35% today; residential rentals are the largest and most profitable target market, while lifestyle land rentals represent ~2% of rental stock.

• Apartment sale prices under construction rose at an 8% CAGR and median rents for newly built apartments at a 5% CAGR from 2018 to 2026.

Development pipeline and projects

• Approved pipeline nearly doubled to ~2,100 dwellings/sites across 17 projects, from ~1,100 across 9 projects; equivalent to 8 years of supply at the current development sales rate.

• Development land book value is ~ $100m against expected gross development value of ~ $1.4bn.

• Ravenswood WA: 68 residential lots completed, nearly all under contract at an average $350k; expected development profit ~ $9m. A 295-site over-50s community was approved, with sales expected from FY28.

• Normanville SA: agreement reached for 220 dwellings/sites, including 110 over-50s lifestyle sites and 110 tourism sites; expected gross development value exceeds $70m.