This article is from the Australian Property Journal archive
WHILE affordable accommodation provider Aspen Group (ASX: APZ) posted a reduced profit in FY24, average rents have seen a significant spike.
The group posted a statutory net profit of $48.44 million, down from $54.40 million in FY23.
Underlying EBITDA was at $32.21 million, up 31% from $24.60 million in FY23. With underlying operating earnings at $25.26 up 21% from $20.90 million in FY23 and underlying operating EPS at 13.81 cents up 15% from 12.0 cents in FY23.
While distributions per security were at 8.50 cents up 10% from 7.75 cents.
Overall, net rental income was up 27% to $30.8 million, development profit was up 39% to $8.7 million.
The group’s development profit margin is on target at 30% and ROIC at 21%, with return on equity at 19%.
Aspen’s lifestyle development profit doubled with sales volume up 64% and average sales price increasing 14% to $418,000.
Average sale prices at developed stages of residential land was up 13% to $200,000.
Aspen’s average rents have seen a significant increase over the year, with total portfolio rent up 15% to $317 per week per dwelling/site.
With residential rent up 20% to $348 pew week per dwelling, which is still competitive with current market rent sitting 12% higher.
Lifestyle rent increased 16% per land site with current average land rent at $187 per week, or 21% below the Commonwealth Rent Assistance cap.
Over the year, Aspen’s net asset value was up 11% to $2.23 per security, with Increases in Property NOI offsetting an assumed WACR increase of 30bps to 6.8%.
Looking forward, Aspen has a strong growth outlook with a low-cost pipeline of 1,152 approved sites already on balance sheet, which equates to 12x FY24 sales.
Aspen’s balance sheet was maintained over the year with gearing at 26% interest cover ratio at 3.7x and net operating cashflow at $22.1 million.
Throughout the year, Aspen continued its attempts at a takeover of Eureka Group Holdings, with its latest offer rejected by the board in May.
