APZ - Aspen Group

[pavilion103]

Potential break?

 

[pixel]

The 10:1 consolidation has made them probably more attractive for bigger players, who as a rule shun stocks that trade in the sub-$1 range. As for me, I don't really care whether I buy 100k at 15c or 10k at $1.50.
Last Friday, I bought on the Trinity signal, accepting the distribution as a sweetener that gave me a bit more wriggle room before I had to stop out. So far, so good: The 7.5c distribution have already been regained - as I figured they would, even though the speed at which it happened is rather pleasing.

 

[divs4ever]

Aspen Group
Financial Guidance and Distribution Announcement
Aspen Group (ASX: APZ) is pleased to provide the following financial guidance for FY22:
§ Underlying Earnings per Security1 is expected to be at least 8.50 cents, a 12% increase
on FY21 - this forecast excludes:
- Trading Profits relating to the sale of houses from the Perth house portfolio totalling
$1.59m (1.16 cps) in FY22 and $0.19m (0.16 cps) in FY21
- Development Profits relating to the sale of residential land lots at Coorong Quays in
June. At the time of entering into contracts for the acquisition, these sales were included
in the estimate of net working capital, not development inventory. Aspen has received
about $1.7 million of cash from these sales since the acquisition was settled on 1 June
2022
§ Net Asset Value (NAV) is expected to increase at 30 June 2022. Two properties have
recently been valued by CBRE:
- 126 Peninsula Road, Maylands - 68 refurbished and leased apartments in the Perth
Apartment Portfolio: valued at $15.76m ($232k per apartment) at completion. The total
expected cost of this project, including renovations soon to be completed but included
in the valuation, is $6.90m. The valuation uplift relative to total expected cost is $8.86m
(128%). The property was valued as a single building on a cap rate of 4.50%. The
estimated value of the apartments if individually strata titled is $300k per apartment
- Aspen Karratha Village: $15.50m, a decrease of $0.50m (3%) from the previous
valuation. The valuation assumes stabilised occupancy of 50%, average room rate of
$137 per night and NOI of $2.5m, and the implied yield is 16%
The combined total increase in NAV of $8.36m for these two properties equates to 5.4 cents
per APZ security.
§ Estimated Distribution per Security (DPS) of 3.50 cents for the second half of FY22:
Ex-Distribution Date: Wednesday 29 June 2022
Record Date: Thursday 30 June 2022
Payment Date: On or about Thursday 25 August 2022
Total estimated DPS for FY22 of 6.60 cents is in line with FY21.
Aspen Group Limited
ABN 50 004 160 927
Aspen Property Trust
ARSN 104 807 767
Suite 21 285A Crown Street
Surry Hills NSW 2010
Telephone: 02 9151 7500
Email: homemail@aspengroup.com.au
1. Underlying Earnings per Security (also referred to as “net profit after tax before non-underlying items”) is a non-IFRS measure that is determined
to present, in the opinion of the directors, the operating activities of Aspen in a way that appropriately reflects Aspen’s operating performance.
Please refer to further information in Aspen Group’s financial reports
Aspen Group’s Distribution Reinvestment Plan remains suspended.
Aspen Group expects to release its full year results on 18 August 2022. The forecast results
above are subject to satisfactory completion of the audit of Aspen’s FY22 financial results.
Registry: Our registry services provider is Automic. If you wish to update any of your details,
please visit its website at https://investor.automic.com.au/#/home.



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(DYOR)

i hold APZ

has been a patience-tester

 

[Dona Ferentes]

not much been posted on this outfit. couldn't execute a takeover using scrip..
.
Eureka Group Holdings (EGH) notes Aspen Group Limited’s ASX announcement dated 29 May 2024 regarding the expiry of its unsolicited all-scrip off-market takeover offer to acquire all of the ordinary shares in Eureka.

Aspen’s bid to gain control of Eureka was unsuccessful, with the majority of shareholders demonstrating support for the Eureka Board and its existing build-to-rent strategy by rejecting Aspen’s offer. Aspen’s holding in Eureka is 35.87% following Cooper Investors’ acceptance of the Offer for its 22.08% shareholding.

Aspen received acceptances of less than 1.0% from Eureka’s remaining shareholders.

The Board of Eureka had unanimously recommended that shareholders reject the Offer and stated in its Target’s Statement that Eureka has an attractive future as the only listed pure play provider of affordable seniors’ rental accommodation in Australia, with a resilient revenue stream underpinned by inflation-indexed Government payments. .

 

[Dona Ferentes]

Aspen Group FY24 Results
Continued Strong Growth Across the Platform
​

The quality and scale of Aspen continues to improve through disciplined acquisitions & disposals and cost-effective refurbishment & development. Net asset value, earnings and distributions increased materially and we maintained competitive rents and sales prices for our customers which reduces risk and increases growth prospects. Risks were mitigated further by maintaining a measured exposure to development,
tight controls on inventories and a strong balance sheet.

Highlights
§ Aspen’s average rents have increased significantly yet remain highly competitive and attractive to customers:
- Total portfolio rent increased 15% to $317pw per dwelling/site
- Residential rent increased 20% to $348pw per dwelling – current market rent is 12% higher
- Lifestyle rent increased 16% per land site – current average land rent (excluding ancillary services) of $187pw is 21% below the rent at which CRA caps out
§ Property NOI margin increased 2ppt to 50% mainly through improved operational management and structural improvements in our portfolio

§ Record production, sales and average prices for new development:
- Lifestyle development profit doubled with sales volume increasing 64% and average sales price increasing 14% to $418k – still well below local median house prices and some competing villages
- Developed stages of Residential land essentially sold out with average sales price increasing 13% to $200k - allows new homes to be developed cheaper than local existing house prices
- Development Profit margin on target at 30% and ROIC was 21%
- Significant growth outlook with low-cost pipeline of 1,152 approved sites already on balance sheet equating to 12x FY24 sales

Risks mitigated – entire development assets represent only c.7% of total assets, spread across 9 active projects diversified by geography, regulation, customers, and builders

§ Continued recycling of capital from Residential properties with relatively high rents at c.3% yield into properties with lower rents more suited to Aspen’s customer base with higher expected returns

§ Strong balance sheet maintained – gearing of 26% and interest cover ratio of 3.7x

 

[Dona Ferentes]

now $2.23... has had a bit of a lift last few months. Still richly priced

Upgrade to FY25 Earnings Guidance
§ Underlying EPS of 16.0 cents – 5% increase on initial guidance and 16% increase on FY24
§ The upgrade mainly reflects higher expected development profit of $2.5 million, more than offsetting reduced earnings due to the disruptions to our corporate and student customers this half which are probably one-off, and from selling Eureka Group shares with the proceeds initially applied to debt reduction
§ Aspen’s underlying earnings does not include the uplift in the value of newly leased Lifestyle sites above production cost which is expected to be about 1.0 cent per security in FY25. It also does not include the expected realised profit on the sale of Eureka Group shares of about 4.4 cents per Aspen security. These items will be included in Aspen’s statutory profit and increase Aspen’s net asset value