The ASX-listed affordable housing group has shown the vociferous demand for its products as it released its HY25 Financial Result on Thursday.
Aspen Group’s revenue increased by 20.1% to $50.9 million, and its profit surged by 39.9% to $31.2 million compared to the same period in the previous year. The underlying operating earnings before tax also rose by 30.9% to $16.1 million.
The Sydney-based business' mission is serving the 40% of Australian households with income less than $100,000 annually who can afford to pay more than about $400 per week to run a home. Aspen's two key business components are rentals (leasing dwellings and land sites to tenants) and development (land lease communities and residential land lots).
Joint CEO David Dixon announced on Thursday the Group had purchased 26ha of developable land at Ravenswood, 88km south of Perth and 12km southeast of Mandurah (pictured below).
"Ravenswood WA has an approved structure plan already in place for 360 standard residential lots. Aspen intends to seek approvals to develop an Over-50s Lifestyle village with at least 200 houses on part of the site and standard residential lots on the rest to cater to the very different customer bases who need more affordable housing," David told The Weekly SOURCE.
"We hope to gain approvals within the next 12 months. We are aiming to sell lifestyle houses from around $400,000 and residential land lots from around $250,000.
"We already own Aspen Lifestyle Mandurah Gardens down the road which is a fully developed, mature community with 180 houses. Aspen also owns the Meadowbrooke (Boyanup) and Sierra (Wundowie) Lifestyle villages in WA."
David also said the Group's proposed conversion of Adelaide Caravan Park into the $70 million CoVE Apartments (Build to Rent) and townhouses is still with Norwood, Payneham and St Peters Council.
"Discussions with council have been productive and we hope to gain approval within the next few months," he added.
Aspen, founded in 2001, reported its development profit increased 68% to $5.45 million at a margin of 33%. Total rental and ancillary service revenue grew by 12% to $33.64 million and total rental income increased 13% to $17.18 million and net rental margin ticked up from 50% to 51%.
Browse Aspen Group's over-55s accomodation on the #1 listings website villages.com.au
