Aspen Group (APZ) H1 2026 earnings summary

Executive summary

• Focuses 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 to optimize 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.

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

Financial highlights

• Underlying EPS increased by 33% to AUD 0.107 per share for the half; NAV per security rose 6% to $2.70.

• Net rental income increased by 22% to $20.9 million; NRI margin expanded 4 points to 55%.

• Revenue from ordinary activities increased 37% to $69.97 million year-over-year.

• Development profit surged 87% to $10.2 million, with a margin of 32%.

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

Outlook and guidance

• Upgraded FY26 EPS guidance by 7% to AUD 0.215, a 20%-28% increase on FY25; initial FY27 guidance at AUD 0.25 EPS, up 16%.

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

• Settlement targets raised to 160 for FY26 and 220 for FY27, with at least 150 lifestyle houses.

• Average gross rent per dwelling/site expected to rise 4%-5% per annum; lifestyle leases have fixed 3.5% annual increases and are projected to grow 15%-20% per annum.

• Ongoing portfolio growth is anticipated through acquisition and development.