Aspen Group (APZ) H1 2026 earnings summary

Executive summary

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

• Upgraded guidance for FY26 and FY27, reflecting strong operational and financial momentum.

• Portfolio expansion through disciplined acquisitions, development, and capital recycling, targeting undersupplied segments and optimizing returns.

• Statutory net profit rose 15% year-over-year to $35.9 million for the half-year ended 31 December 2025, with underlying operating earnings up 51% to $24.3 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 AUD 0.107 per share for the half; NAV per security increased 6% to $2.70; DPS up 10% to 5.50 cents.

• Net rental income up 22% to AUD 20.9 million, with NRI margin expanding 4 percentage points to 55%.

• Development profit surged 87% to $10.2 million, with development revenue nearly doubling to $31.8 million.

• EBITDA up 29% to $26.3 million; operating earnings up 51%, now approaching AUD 50 million per annum.

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

Outlook and guidance

• Upgraded FY26 underlying pre-tax EPS guidance by 7% to AUD 0.215, a 28% increase on FY25; initial FY27 EPS guidance at AUD 0.25, up 16%.

• FY26 NRI guidance upgraded by 5% to $41.0 million; development profit guidance up 10% to $21.5 million.

• Settlement guidance for FY26 increased to 160 units; 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.

• Ongoing portfolio growth anticipated through acquisition and development.