Proving that there is responsible profits in the bottom end of the market, the ASX-listed accommodation business has as its target market households that can pay no more than $400 per week in rent or $400,000 purchase price for their housing needs.
Its land lease portfolio of 561 homes delivered a Net Operating Income of $3.49M, made up of $3.4M development profit plus $350K in community operating profit.
In addition Aspen made $8M in revaluation profit.
The company states land lease is attractive in that once established, it is a capital light asset that generates weekly net income.
Aspen Group, whose Joint CEOs are John Carter and David Dixon, said the shortages of accommodation are acute at the more affordable end of the spectrum, with the proportion of residential rentals offered at less than $400 a week collapsed from 42% in 2020 to only 16% in 2023.
The SOURCE: Aspen is targeting part of the population that badly needs its product.
