Aspen Group (ASX:APZ), a property investment and management company specialising in affordable housing and lifestyle communities, has upgraded its earnings guidance for FY25. The company now expects underlying earnings per security (EPS) to reach 16.0 cents, a 5% increase over previous forecasts and a 16% rise from FY24’s 13.8 cents. Aspen attributes the earnings upgrade to higher-than-anticipated development profits, driven by strong demand and improved pricing in its lifestyle and residential segments.
In today’s announcement, the group reported a strong long-stay rental market, with minimal vacancies. Short stay rentals were, however, described as “patchy”. In the lifestyle and residential development sector, Aspen plans to double production in FY25 to over 200 new homes and land sites, leveraging stabilised building costs and an average sale price increase of 12% for lifestyle houses.
The company is also strengthening its balance sheet, aiming to reduce net debt to around $130m with proceeds from upcoming asset sales.
CEO David Dixon noted Aspen’s intention to capitalise on development momentum by meeting rising demand and increasing its land rental pool.
Shares are trading 7.17% higher at $2.39.