• Continued growth in underlying earnings, distributions and NAV
• Attractive for residents and profitable for securityholders
• Scaling up development while remaining highly profitable

Aspen Group reported a strong 1HFY25 result, with continued growth in underlying earnings, distributions and net asset value (NAV). Underlying earnings per security (EPS) increased by 18% to 8.07 cents, while distributions per security (DPS) rose 18% to 5.00 cents. NAV per security, excluding deferred tax liability, increased by 7% to $2.39. The company's rental business saw a 13% increase in net rental income, driven by a 7% increase in the rental pool and a 6% rise in average weekly net rent. The development business also performed well, with a 68% increase in development profit and a 47% increase in profit per sale. Aspen's balance sheet was strengthened, with gearing reduced to 21% and interest cover ratio improved to 4.0x. The company has also made a new acquisition of a 33-hectare land parcel in Ravenswood, Western Australia, which it plans to develop into a mix of lifestyle and residential lots. Looking ahead, Aspen has provided upgraded guidance for FY25, including a 21% increase in underlying EPS to 16.7 cents and an 18% increase in DPS to 10.0 cents.

Underlying 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 expects continued strong performance in both its rental and development businesses, driven by solid occupancy, rental growth and an increased pipeline of lifestyle and residential projects. The company is aiming to increase completed inventory to provide more flexibility and optionality on sales.