Aspen Group (APZ) H1 2025 earnings summary

Executive summary

• Achieved strong HY25 results with 31% growth in underlying operating earnings and a 40% increase in statutory net profit year-over-year, driven by robust rental and development activities and improved portfolio quality.

• Upgraded FY25 underlying earnings guidance to 16.7 cents per security, a 21% increase on FY24, with underlying EBITDA of $41.5m and DPS of 10.0 cents, reflecting higher net rental income and disciplined capital management.

• EPS for the HAF was AUD 0.081 per share, up 18% year-over-year, in line with historical growth rates.

• Disciplined acquisitions, including the Ravenswood WA site, and cost-effective refurbishments have enhanced scale and quality.

• No significant changes in the state of affairs or subsequent events affecting future operations.

Financial highlights

• HY25 underlying operating earnings rose to $16.14m, up 31% year-over-year; statutory net profit after tax reached $31.17m, up 40% from HY24.

• Net rental income grew 13% to $17.18m; development profit surged 68% to $5.45m; EBITDA increased 33% to $20.4m.

• NAV per security (pre-DTL) increased 7% to $2.39; total property and inventory book value up 5% to $593m.

• Distribution per security increased 18% to 5.00 cents, with 88% tax deferred and a 62% payout ratio.

• Revenue from rent increased to $3.68 million (up from $2.95 million year-over-year); changes in fair value of investment properties contributed $6.02 million.

Outlook and guidance

• Upgraded FY25 guidance: underlying EBITDA $41.5m (+29%), underlying EPS 16.7c (+21%), DPS 10.0c (+18%).

• FY25 NRI forecast at $35m, with long-stay occupancy and rental growth expected to remain solid due to low vacancy and limited new supply.

• Targeting 110 settlements in FY25, 140 in FY26, and 170 in FY27; significant growth outlook supported by a low-cost approved pipeline of ~1,100 sites, aiming to double this pipeline.

• Board expects distributions payable at 31 December 2024 to be funded from existing cash reserves or available financing facilities.

• Continues to pursue growth opportunities in the accommodation sector aligned with strategic focus.