ASPEN GROUP Aspen Group
Financial Results Presentation - 1H FY23
February 2023 | UniResort, Upper Mount Gravatt, QLD |
Maylands, WA1
Contents
1
2
Appendix A
Appendix B
Appendix C
Results Summary - 1H FY23 | Page 3 |
Outlook and FY23 Guidance | Page 17 |
Business and Portfolio | Page 20 |
Statutory Accounts | Page 41 |
Distribution and Tax History | Page 49 |
1
Results Summary
1H FY23
New homes at Wodonga Gardens Retirement Village, VIC
3
1H FY23 - Operating Earnings Summary
Extreme shortages of affordable accommodation driving rents and profits up materially across all parts of the business...
Rent & Ancillary Revenue
$24.8m +55%
Property NOI
$12.1m +87%
Margin 49%
Operating Earnings1
$12.0m
+159%
Development Revenue
$12.1m +204%
Development Profit
$4.1m +193%
Margin 34%
Operating EPS
7.08 cents
+102%
DPS
3.50 cents
+13%
Corporate Overheads
$2.95m +1%
MER2 1.1%
FY23 EPS
Guidance Upgrade
11.5-12.0 cents
+1.75 cents (+17%)
on previous guidance
Operating EPS (cents)
12.00
10.00
+14%
+11%
8.00
+32%
6.00
4.00
2.00
0.00
FY19 FY20 FY21 FY22
+33-39%
Guidance 2H
1H
FY23
(compared to 1H FY22)
1. Operating Earnings 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 - refer to financial report for full definition. Result excludes | 4 |
Trading Profits from the sale of Perth Houses which are treated as Investment Property. 2. Management Expense Ratio = Net Corporate Overheads / Total Assets |
Key Earnings Growth Drivers for 1H FY23
Contributions
- Extreme shortage of accommodation nationwide, especially at the more affordable end of the spectrum - residential vacancy rate c.1% nationwide
- Post Covid - population growth has increased and people are on the move again needing long and short stay accommodation
- Dwelling and land rents increasing - dwellings outperforming
- Pivoted back to short stay for our Park dwellings - materially higher rent and profitability than the long stay offered during Covid
- Net effective rents only - no leasing incentives to fund or amortise
- More dwellings and land sites added to the available rental pool through acquisition, development and refurbishment
- Operating costs have been well-controlled and margins have expanded
- Development activity continues to ramp up - attractive margin of 34% maintained (despite spike in building costs and timeframes)
- Tight control of corporate overheads - up only 1% on pcp
- $70m of interest rate exposure hedged against rising interest rates
Drags (mainly positioning for future growth)
- Retirement land rents grew less than CPI and remain below the Commonwealth Rent Assistance (CRA) cap - supporting our customer base and development sales
- Sold another two Perth Houses - capital will ultimately be redeployed into other parts of the business to achieve higher returns
- Removed some of our dilapidated income-generating dwellings to make way for future development (eg. Highway 1 and Sweetwater Grove)
- No Project Management Fees from MHC Marina Hindmarsh Island Fund (Coorong Quays) post acquisition in June 2022
- New equity raised in September 2022 for debt reduction - to reduce risk and position for acquisitions while interest rates are normalising
- Increased interest cost on floating rate debt
5
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Aspen Group Ltd. published this content on 20 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 February 2023 03:59:06 UTC.
