Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Aspen Group Posts Strong FY26 Growth as Housing Portfolio and Development Pipeline Expand
Highlights:
Aspen Group Reports Strong FY26 Performance
Aspen Group (ASX: APZ) announced its FY26 results on 18 August 2026, reporting stronger earnings across its rental and development operations. Pre-tax comprehensive income per security increased 17% to 44.6 cents, while net asset value excluding deferred tax liabilities rose 14% to AU$2.88 per security.
Net rental income reached AU$42.4 million, up from AU$35.0 million in FY25. Rental income climbed 13% to AU$76.0 million in FY26, alongside a 6% increase in the average rental portfolio to 4,222 dwellings and sites. Average weekly rent also rose 6%, reaching AU$346 per dwelling or site.
Development Business Drives Earnings Growth
Aspen’s development division delivered a significant increase in activity during FY26. Contracted sales more than doubled to 252, while settlements rose 45% to 161. Development revenue climbed 65% to AU$65.2 million, helping realised development profit rise 71% to AU$21.7 million.
The company also expanded its development pipeline. The development pipeline expanded to 2,904 approved and planned sites across 25 projects, representing a 33% increase from FY25. During the year, development approvals were secured for 716 additional dwellings and sites across locations in South Australia and Western Australia.
Balance Sheet and Portfolio Expand
Aspen’s total approved and planned dwellings and sites increased to 7,222 by 30 June 2026, while the book value of its rental pool reached AU$701 million. Net asset value excluding deferred tax liabilities rose to AU$656 million. The loan-to-value ratio increased to 22%, while interest cover improved to 6.2 times.
The company subsequently entered conditional agreements involving the acquisition of 198 residential villas in Adelaide for AU$40.5 million and the sale of selected properties for a combined AU$48.4 million.
Outlook
Aspen upgraded its FY27 guidance, targeting AU$44 million in net rental income, AU$33 million in realised development profit and AU$66 million in operating EBITDA. Pre-tax EPS is forecast at 26.1 cents, while distribution per security is expected to reach 12.0 cents.
The company’s FY27 focus will centre on expanding rental operations, progressing development projects and utilising its enlarged pipeline to support future growth.
Note- All data presented is based on information available at the time of writing.
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