This article is from the Australian Property Journal archive
FRESH from expanding its retirement living portfolio in South Australia, Aspen Group has upgraded its distribution by 18% and at the same time reported valuation gains.
Aspen latest independent valuation of six properties resulted in a 6.6% increase above 30 June 2024 book value, with some assets recording double-digit increases.
The six properties represent 15% of Aspen’s total portfolio and the weighted average capitalisation rate (WACR) is unchanged, however the assumed cap rate expanded 25-50bps for all properties except 126 Peninsula Road, Maylands which contracted by 75bps.
All these properties are expected to generate higher net rental income in FY25 compared to FY24.
As a result, Aspen has upgraded its half year distribution by 18% increase to 5.00 cents per security.
This latest announcement comes as Aspen continues to expand its portfolio, with the recent acquisition of a 1-hectare land lot at Coorong Quays, adjacent to its Alexandrina Cove Retirement Village in South Australia.
Aspen has spent much of the year focused on its unsuccessful takeover of rival Eureka Group and has since divested a majority of its stake in lifestyle communities rival Eureka Group following an unsuccessful takeover.
| Book Value 30 June 2024 | Independent Valuation December 2024 | |||||
| Property | Segment | Valuation $m | Cap Rate | Valuation $m | Cap Rate | Change in Value |
| 126 Peninsula Road, Maylands WA | Residential | $20.55 | 5.25% | $23.00 | 4.50% | 11.9% |
| 16 Treatts Road, Lindfield NSW | Residential | $8.12 | 3.65% | $9.00 | 4.17% | 10.8% |
| 466 Pacific Highway, Lindfield NSW | Residential | $5.90 | 3.65% | $6.60 | 4.13% | 11.9% |
| Four Lanterns NSW | Lifestyle | $20.26 | 4.75% | $20.50 | 5.13% | 1.2% |
| Meadowbrooke WA | Lifestyle | $3.74 | NA* | $4.70 | NA* | 25.7% |
| Barlings Beach NSW | Park | $22.49 | 7.25% | $22.60 | 7.50% | 0.5% |
| Total / WACR | $81.06 | 5.41% | $86.40 | 5.42% | 6.6% | |
