Highlights

  • Aspen Group's (ASX:APZ) pre-tax comprehensive income per security increased 17% to 44.6 cents in FY26 from 38.0 cents.
  • Net rental income rose 21% to A$42.4 million, while realised development profit increased 71% to A$21.7 million.
  • Net financial Debt increased 76% to A$153 million, and the loan-to-value ratio rose to 22% from 17%.
  • FY27 guidance calls for pre-tax EPS of 26.1 cents, operating EBITDA of A$66 million and distributions of 12.0 cents per security.

Aspen Group (ASX:APZ) reported higher financial results for FY26, with pre-tax comprehensive income per security rising 17% to 44.6 cents from 38.0 cents in FY25. The company said this represented an 18% Return on Equity based on its stated methodology.

Underlying EBITDA increased 31% to A$54.2 million from A$41.4 million. Underlying pre-tax EPS rose 30% to 21.8 cents, while underlying post-tax EPS increased 29% to 21.6 cents. Distribution per security also increased, rising 10% to 11.0 cents from 10.0 cents.

Net asset value excluding deferred tax liabilities increased 14% to A$656 million, with NAV per security rising to A$2.88 from A$2.54.

Rental Operations Expand

Aspen's rental portfolio expanded during the year, with average dwellings and sites increasing 6% to 4,222. Average weekly gross rent per dwelling or site rose 6% to A$346.

Total rental Revenue increased 13% to A$76.0 million, while net rental income rose 21% to A$42.4 million. The NRI Margin increased to 56% from 52%, representing a four-percentage-point improvement.

Residential weekly rent averaged A$379, up 4%, while Lifestyle rents increased 5% to A$223 per week. Parks recorded the largest increase among the stated categories, with average weekly rent rising 11% to A$380.

Development Profit Rises

Development activity recorded a substantial increase during FY26. Contracted sales more than doubled to 252 from 116, while settlements increased 45% to 161.

Development revenue increased 65% to A$65.2 million from A$39.5 million. Realised development profit rose 71% to A$21.7 million, while the development profit margin increased to 33% from 32%.

The development pipeline also expanded. Approved and planned development sites increased 33% to 2,904 across 25 projects. Aspen reported approvals for 716 additional dwellings and sites across projects in South Australia and Western Australia.

Balance Sheet and Capital Position

Property and inventory Book Value increased 22% to A$834 million, while the rental pool's book value rose 19% to A$701 million.

However, net financial debt increased 76% to A$153 million from A$87 million. The loan-to-value ratio consequently increased to 22% from 17%, a five-percentage-point rise. The provision for deferred tax liabilities also increased 84% to A$55 million from A$30 million.

Interest cover improved to 6.2 times from 4.6 times. Net asset value increased 10% to A$601 million, while NAV excluding deferred tax liabilities rose 14% to A$656 million.

Subsequent to year-end, Aspen entered conditional agreements involving the Acquisition of 198 residential villas in Adelaide for A$40.5 million and the sale of three properties for a combined A$48.4 million.

FY27 Guidance Upgraded

Aspen has upgraded its FY27 guidance following the FY26 results. Net rental income is forecast at A$44 million, compared with A$42 million in FY26, while realised development profit is expected to rise to A$33 million from A$22 million.

Operating EBITDA is forecast to increase 22% to A$66 million. Pre-tax EPS guidance has been set at 26.1 cents, representing a 20% increase on FY26's 21.8 cents. Distribution guidance has also increased to 12.0 cents per security from 11.0 cents.

Share Performance

Aspen Group shares were trading at A$5.28 on August 18, 2026, up A$0.24, or 4.76%, on the day from the stated previous price of A$5.04.

Conclusion

Aspen Group's FY26 results show increases across rental income, development profit, underlying EBITDA, Earnings per security and distributions, alongside a larger development pipeline. The Balance Sheet also expanded, although net financial debt increased 76% and the LTV ratio moved higher to 22%. For FY27, the company has raised guidance across rental income, development profit, EBITDA, pre-tax EPS and distributions, with the stated outlook dependent on there being no material change in its operating environment.