Aspen Group (ASX:APZ)a real estate investment and management company specializing in affordable housing and lifestyle communities, has updated its earnings forecast for fiscal year 25. The company now expects underlying earnings per stock (EPS) to reach 16, 0 cents, a 5% increase from previous forecasts and a 16% increase from 13.8 cents in fiscal 24. Aspen attributes the earnings increase to higher-than-expected development profits, driven by strong demand and from improvement of prices in the lifestyle and residential segments.
In today’s announcement, the group reported a strong long-stay rental market, with minimal vacancies. Short-stay rentals, however, have been described as “irregular.” In lifestyle and residential development, Aspen expects to double production in fiscal 25 to more than 200 new homes and lots, leveraging stabilized construction costs and an average sales price increase of 12% for lifestyle homes.
The company is also strengthening its balance sheet, aiming to reduce net debt to approximately $130 million with proceeds from upcoming asset sales.
CEO David Dixon highlighted Aspen’s intent to take advantage of development momentum by meeting growing demand and increasing the rental land pool.
The shares are trading up 7.17% at $2.39.