• Aspen is a proven low-cost producer with a strong track record
• Established rental pool of over 4,000 dwellings/sites
• Equity raising to strengthen balance sheet and take advantage of new opportunities

Aspen Group is a specialist provider of quality rental accommodation on competitive terms, with a proven low-cost producer model and a strong track record of offering attractive rents and prices for customers while generating high returns for securityholders. The company has an established rental pool of over 4,000 dwellings/sites with an average weekly rent of $328 and an average book value of only $133,000. Aspen also has an established development pipeline of over 2,300 approved and planned sites at an average book value/cost of around $30,000. The company is on track to deliver FY25 Underlying EPS guidance of 16.7 cents, up 21% on FY24. To position Aspen for continued strong growth, the company is undertaking an equity raising of up to $74 million, comprising an institutional placement of $70 million and a security purchase plan of up to $4 million. The net proceeds will be used to reduce debt, positioning Aspen to take advantage of further opportunities, including the potential acquisition of an Adelaide portfolio. The equity raising is expected to be neutral to Underlying EPS and DPS initially, with Aspen still aiming for at least 10% per annum growth in Underlying EPS over the medium term.

Aspen's FY25 guidance remains unchanged, with Underlying EPS of 16.70 cents and DPS of 10.00 cents. FY26 guidance will be provided with Aspen's FY25 results in late August, with the company continuing to target EPS growth of at least 10% per annum.

Aspen sees increasing opportunities, with vacancy rates in most residential markets across Australia remaining below 2% and economic rents for new residential supply well above $400 per week. The company also expects governments and not-for-profits to continue rationalizing their portfolios and an increase in distressed sales in soft markets such as Victoria.