ASX-listed Aspen Group, which owns and operates residential, land lease and park communities, upgraded its earnings guidance by 17% for FY23, which represents a rise of 33.39% on the previous 12 months.
The Sydney-based business said it is now generating around $50 million of rental on an annual basis, with the operating margin for residential and retirement 60-65%.
“Our land rents are below the level of which Commonwealth Rent Assistance caps out which improves affordability for our residents, and sustainability and growth prospects for our security holders,” said Aspen, whose joint CEOs are John Carter and David Dixon.
It has 553 land lease sites in the pipeline.
In addition, it is redeveloping land at Four Lanterns retirement community in Leppington, 38km southwest of Sydney’s CBD, where the margin on three house sales was 31%. It also is upgrading Sweetwater Grove, in Tomago, Newcastle, with 15 new houses in production and all under contract, and another 14 houses ordered.
