Aspen Group - Strong Start in FY27
Key points
- 1Q FY27 financial results exceeded expectations
- Net Rental Income (NRI) increased by 16%
- Realised Development Profit surged by 96%
Full summary
Aspen Group (ASX: APZ) reported strong financial results for the first quarter of FY27, exceeding initial expectations. Net Rental Income (NRI) increased by 16% to $12.7 million, driven by a 10% rise in rental revenue. The NRI margin expanded from 55% to 58%, reflecting improved operational management and property refurbishments. Realised Development Profit saw a significant 96% increase to $7.9 million, with average sale prices for Lifestyle houses at $520,000, well below the national average of $1.1 million. Development profit margin expanded by 5 percentage points to 36%. The company remains cautious due to weakening economic conditions but reiterates its guidance for continued strong growth in earnings and net asset value.
Guidance
FY27: Net Rental Income $44m, Realised Development Profit $33m, EBITDA $66m, Pre Tax EPS 26.1 cents
Outlook
Aspen Group remains cautiously optimistic about continued growth in FY27, despite economic uncertainties, due to strong demand and structural shortages in the housing market.
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