Aspen Group targets 20% EPS growth on strong rental returns
- Aspen Group posted first-quarter FY27 financial results that exceeded internal expectations, led by performance in its rental pool.
- The company confirmed it remains on track to achieve at least 20% growth in underlying earnings per share for the full year.
- Growth is being driven by shifting property agreements towards residential leases while divesting tourist-centric park assets.
Aspen Group (ASX:APZ) released its first-quarter FY27 market update, confirming it remains on track for at least 20% growth in underlying earnings per share.
The outperformance in rental revenue provides early operational momentum relative to historical full-year targets.
The company's business model generated a 23% average pre-tax return on equity from FY21 through FY26, compared to a 10% average across listed peers.
Management stated that profitability will continue to be driven by buying and building residential properties, converting retirement village and park agreements into residential leases, and selling tourist-focused park assets.
Following the announcement, the Aspen Group share price was unchanged at $4.49.
The group operates an integrated business model, acting as owner, operator, developer, and capital manager across value-for-money accommodation assets.
By maintaining full 100% ownership of its properties and avoiding joint venture structures, the company seeks to maximise returns while avoiding profit-sharing arrangements.
