Aspen Group (APZ) H2 2024 earnings summary

Executive summary

• Underlying EPS rose 15% to 13.81 cents, and DPS increased 10% to 8.50 cents compared to FY23.

• Achieved strong FY24 results with significant growth in net asset value, earnings, and distributions, driven by disciplined acquisitions, disposals, and cost-effective development.

• Aspen owns 5,107 dwellings/sites and a 36% stake in Eureka, with $52m in acquisitions and $25m in disposals during FY24.

• Maintained competitive rents and sales prices, supporting risk mitigation and growth prospects.

• NAV per security increased 11% to $2.23, and gearing remained stable at 26%.

Financial highlights

• Rental and ancillary revenue grew 23% year-over-year to $61.81m; net rental income up 27% to $30.79m.

• Development revenue increased 46% to $29.32m, with a 39% rise in development profit to $8.68m.

• Underlying EBITDA rose 31% to $32.21m, and underlying operating earnings climbed 21% to $25.26m.

• Statutory net profit was $48.44m, down from $54.40m due to higher deferred tax expense.

• Distributions of 8.50 cents per security, 89% tax deferred, with a 62% payout ratio.

Outlook and guidance

• FY25 guidance: underlying EBITDA expected at $40m (up 24%), underlying EPS at 15.2 cents (up 10%), and DPS at 10.0 cents (up 18%).

• Continued high occupancy and rental growth anticipated, with residential market rent estimated at $390pw, 12% above FY24.

• Full-year contributions expected from recent acquisitions and ongoing development pipeline growth.

• Upgraded FY25 guidance projects further EBITDA, EPS, and DPS growth.