• Strong growth across rental and development activities
• Continued improvement in portfolio quality and balance sheet
• FY25 underlying earnings guidance upgraded by 21% to 16.7 cents per security

Aspen Group (ASX: APZ) is pleased to report strong growth across its rental and development activities, continued improvement in portfolio quality, and a strengthened balance sheet. FY25 underlying earnings guidance has been upgraded from 16.0 to 16.7 cents per security (up 21% on FY24), driven by higher net rental income. Key financial highlights include a 13% increase in total net rental income to $17.2m, a 68% increase in total development profit to $5.5m with a highly attractive margin of 33% and ROIC of 20%, and a 31% increase in underlying operating earnings to $16.1m. The quality and scale of Aspen Group continues to improve through disciplined acquisitions and disposals, and cost-effective refurbishment and development. Aspen has maintained competitive rents and sales prices for its customers, reducing risk and increasing growth prospects for securityholders. Risks were further mitigated by maintaining a measured exposure to development and strengthening the balance sheet. Aspen sees a massive opportunity to profitably increase in scale given the structural shortages of quality accommodation for the majority of Australian households.

Underlying Operating EBITDA of $41.5m - up 29% on FY24; Underlying EPS of 16.7 cents - up 21% on FY24; DPS of 10.0 cents - up 18% on FY24

Aspen Group expects continued strong performance and is pleased to announce an upgrade to FY25 earnings guidance. The company sees a massive opportunity to profitably increase in scale given the structural shortages of quality accommodation for the majority of Australian households.