Aspen Group (ASX:APZ) has delivered a stellar third-quarter update for the nine-month period ended March 31, confirming that the provider of affordable accommodation is firmly "on track" to meet its full-year earnings guidance.
The group reported a 45% increase in EBITDA, climbing to $43.1 million, while pre-tax earnings per share jumped 47% to reach 17.6 cents.
The robust results are underpinned by a dramatic 153% surge in realised development profit, which hit $19 million following a doubling of property settlements compared to the previous year.
The rental division continues to provide a stable backbone for the group, with net rental income rising 20% to $31.4 million.
Aspen's long-term accommodation remains essentially at full occupancy, bolstered by an average residential rent increase of 5% per annum.
Management noted that Perth residential rents remain 10–15% below market, suggesting further upside potential, while a waiting list has already formed for new two-bedroom houses in Australind, set to lease from May at $440 per week.
The Darwin Freespirit Resort outperformed expectations by providing accommodation to those displaced by northern Australia's floods.
With booked revenue for the June quarter already up 70% compared to the prior year, Aspen enters its peak season with significant momentum.
Investors remain focused on the FY26 guidance, with the group currently chasing a target of 21.5 cents in pre-tax EPS as it nears the final quarter.
At the time of reporting, Aspen Group’s share price was $4.90.