This article is from the Australian Property Journal archive
ASX-listed Aspen Group has reported a strong set of numbers for the first quarter of the new financial year, with all of its residential, lifestyle and park community segments generating growth in revenue and net operating income.
Underlying operating EBITDA was up 18% to 22% on FY23 to $29 million to $30 million.
Underlying operating earnings per security was 12.50 to 13.00c, up 4% to 8%.
Minimum distributions per security was up 10% to 8.50c.
Aspen says its core target customer base is the approximately 40% of Australian households who can afford to pay no more than $400 per week in rent or $400,000 purchase price for their housing needs. It owns over 5,000 dwellings and sites in residential, lifestyle and park communities including over 1,000 in value-add development and refurbishment projects.
Aspen said its residential and lifestyle properties remain “essentially full” including the newly completed CoVE Cooks Hill which is now 100% let, while rents are increasing across the board.
The CoVE Maylands refurbishment project at Guildford Road is “exceeding our expectations” and completion has moved forward to 3Q FY24, and expected average rent has increased from $350 to at least $375 per week, and expected stabilised NOI is now over $1.5 million per annum, from $1.4 million.
The group has secured a new lease for 21 refurbished motel rooms at its recently acquired Sierra Residential community.
Occupancy is “fairly stable” and average rate is higher than a year ago. Darwin Freespirit Resort’s performance over the recent peak season match last year’s, and corporate demand over the low season is tipped to be stronger. Economic activity in the Karratha region is “buoyant”, the group said, and Aspen Karratha Village’s profitability improved materially to about $1 million in the first quarter alone, on 72% occupancy and $163 per night average rate.
Bookings for the upcoming peak summer holiday season at its NSW coastal parks are ahead of the same time last year.
Aspen said its residential land enquiries were slow in the quarter but have picked up recently with five sales in October already.
“We expect sales rates to improve as existing house prices increase, interest rates stabilise, and capacity frees up in the building industry.”
