Aspen Group (APZ) H2 2026 earnings summary

Executive summary

• Achieved strong growth in FY26, with underlying pre-tax EPS up 30%, NAV per security up 13%, and robust operational results surpassing guidance.

• Focused on affordable rental accommodation below AUD 500 per week for households earning less than AUD 100,000, where housing scarcity is most acute.

• Expanded property portfolio and development pipeline, including new approvals for 716 sites and a 33% increase in pipeline to 2,904 sites across 25 projects.

• Management platform expanded, with headcount doubling over seven years and a strong ownership culture.

• Structural shortages in affordable housing and government policy changes have increased opportunities for growth.

Financial highlights

• Pre-tax comprehensive income per security rose 17% to AUD 0.45, with return on equity at 18%.

• Underlying pre-tax EPS reached 21.8 cents, up 30%; underlying EBITDA up 31% to AUD 54.2m; net rental income up 21% to AUD 42.4m.

• Realised development profit surged 71% to AUD 21.7m; NAV per security (ex-DTL) increased 13% to AUD 2.88.

• Margins expanded four points to 56%; average gross rent increased 6% to AUD 346/week, net rent up 15% to AUD 193/week.

• Dividend per share increased by AUD 0.01 to AUD 0.12; DPS up 10% to 11.0 cents.

Outlook and guidance

• FY27 guidance upgraded: settlements expected at 240, with 150 Lifestyle houses and 90 residential land lots.

• Net rental income expected to rise 4% to AUD 44m; development profit forecast to increase 52% to AUD 33m.

• Underlying pre-tax EPS guidance for FY27 at 26.1 cents (+20%); operating EBITDA at AUD 66m (+22%).

• Lifestyle rental leases projected to increase by 15%-20% annually; average gross rent per dwelling/site expected to rise 4-5% per annum.

• Effective tax rate expected to rise to 10-15% as historic tax losses are exhausted.