Developer and fund manager Aspen Group has announced a $6.2 million writedown of its investment portfolio, driven by a drop in value of its workers accommodation village in Karratha.
Aspen said the Aspen Karratha Village had dropped to a value of $50 million as of June 30, down from $57.6 million in the previous financial year.
The group said the decline in value reflected reduced demand for workforce accommodation in the north of the state.
Overall, Aspen wrote down its portfolio by $6.2 million, after a number of its other investments recorded increases in value.
In Western Australia, the value of Aspen’s Septimus Roe office tower and its Spearwood industrial park held their value, at $105.5 million and $82 million, respectively.
Aspen’s Noble Park industrial property rose in value to $23.5 million, from $22.1 million the previous financial year, while the group’s stake in the Australian Taxation Office tower in Adelaide was steady at $99.5 million.
Aspen said the adjustments would reduce its earnings, but its distribution of 0.75 cents per security would remain payable on August 23.
At close of trade today, Aspen shares were up 3 per cent, at 16.5 cents.