The Aspen Group Ltd (ASX: APZ) share price is in focus after the company delivered strong FY26 results, reporting a 17% jump in pre-tax comprehensive income per security to $0.45 and a 31% lift in underlying EBITDA to $54.2 million.
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What did Aspen Group report?
- Pre-tax comprehensive income per security up 17% to $0.45
- Underlying EBITDA rose 31% to $54.2 million
- Net rental income increased 21% to $42.4 million
- Development profit surged 71% to $21.7 million
- Distribution per security (DPS) up 10% to 11.0 cents
- Net asset value per security (excluding DTL) up 13% to $2.88
What else do investors need to know?
Aspen Group continued to grow its rental pool through acquisitions and development, with average dwellings and sites rising 6% to 4,222. Net rental income margin also improved from 52% to 56%, helped by operational management and refurbishment.
Development profit benefited from higher contracted sales and settlements. The company secured approvals for 716 new dwellings and increased its pipeline of approved and planned sites by 33% to 2,904 across 25 projects. Post year-end, Aspen inked conditional deals to acquire Adelaide villas and sell several parks, boosting its residential and lifestyle portfolio.
What did Aspen Group management say?
Joint Chief Executive Officers David Dixon and John Carter said:
Aspen Group has massive opportunities for profitable growth due to its highly competitive cost of production and the structural shortages of quality accommodation for the majority of Australian households.
What's next for Aspen Group?
Aspen has upgraded its FY27 guidance, forecasting strong growth ahead. The company expects net rental income of $44 million, a sizeable 52% jump in realised development profit to $33 million, and operating EBITDA of $66 million. Distribution per security is also forecast to rise 9% to 12.0 cents.
Management highlighted ample balance sheet capacity to fund organic growth and future acquisitions. Higher guidance suggests Aspen remains focused on delivering affordable housing and capitalising on ongoing market shortages.
Aspen Group share price snapshot
Over the past 12 months, Aspen Group shares have risen 28%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.
