Aspen Group (APZ) investor relations material

Executive summary

• Focus on affordable, quality rental accommodation for households earning under AUD 100,000, with rents and prices significantly below national averages, targeting the most undersupplied market segment.

• Upgraded guidance for FY26 and FY27, reflecting strong operational and financial momentum, with continued rapid business growth expected due to persistent supply constraints and strong demand.

• Portfolio expansion through disciplined acquisitions, development, and recycling of capital, with strategic growth in house-friendly states and value-for-money segments.

• Statutory net profit rose 15% to $35.9 million for HY26, with underlying operating earnings up 51% to $24.3 million, and total comprehensive income before tax at $50 million.

• Rental pool expanded 5% to 4,359 dwellings/sites, and the development pipeline grew 28% to 2,612 sites.

Financial highlights

• Underlying EPS rose 33% to 10.7 cents per share for the half; DPS up 10% to 5.50 cents; NAV per security increased 6% to $2.70.

• Revenue from ordinary activities increased 37% to $69.97 million; net rental income up 22% to $20.9 million; NRI margin expanded from 51% to 55%.

• EBITDA up 29% to $26.3 million; underlying operating earnings up 51% to $24.3 million.

• Realised development profit surged 87% to $10.2 million, with a margin of 32%; development revenue nearly doubled to $31.8 million.

• Portfolio expanded 10% to 6,971 dwellings/sites; book value of property and inventory up 13% to $770 million.

Outlook and guidance

• Upgraded FY26 guidance: Net Rental Income $41.0 million (+17% YoY), Realised Development Profit $21.5 million (+69% YoY), Underlying Pre Tax EPS 21.5 cents (+28% YoY), DPS 11.0 cents (+10% YoY); initial FY27 EPS guidance at 25.0 cents, up 16%.

• Settlement guidance for FY26 is 160 units, up 44% from FY25; FY27 guidance raised to 220 units.

• Average gross rent per dwelling/site expected to rise 4-5% per annum; lifestyle leases growing 15-20% annually.

• Market conditions expected to remain reasonable over the next 12-24 months, with housing supply constraints supporting rent and price levels.

• Effective tax rate expected to rise from 3-5% in FY26 to 10-15% in FY27 as historic tax losses are exhausted.