This article is from the Australian Property Journal archive
HOLIDAY parks and lifestyle communities operator Aspen Group is expecting a 12% increase in full-year underlying earnings per security, and has netted a strong valuation gain on a Perth complex of residential apartments.
The ASX-listed group said underlying earnings per security will be at least 8.50 cents. The forecast excludes trading profits related to the sale of houses from its Perth house portfolio totalling $1.78 million since FY21, as well as development profits from the sale of residential land lots at Coorong Quays this month. It has received $1.7 million in cash from the sales.
Aspen has had its 126 Peninsula Road property in Perth’s inner eastern suburb of Maylands valued at $15.76 million, or $232,000 per apartment for the 68-unit complex that it is renovating. The total expected cost of the project is $6.9 million, and the valuation uplift relative to total expected cost is $8.86 million. It valued as a single building on a cap rate of 4.50%.
The estimated value of the apartments if individually strata titled is $300,000 per apartment.
Aspen last year acquired a $52 million portfolio of 17 inner Perth apartment complexes with 514 mostly one and two-bedroom apartments with the aim of refurbishing.
Meanwhile, its Aspen Karratha Village property decreased by $500,000, or 3%, to $15.5 million. The valuation assumes stabilised occupancy of 50%, average room rate of $137 per night and NOI of $2.5m, and the implied yield is 16%
The combined total increase in net asset value of $8.36 million equates to 5.4c per security.
Total estimated distributions per security for the full year of 6.60c per security is in line with FY21.
