Aspen Group has joined the chorus of listed property investment and funds management groups to post strong profit results, this week announcing its net profit increased 248 per cent this financial year to $34.5 million.
Key factors of this achievement include its funds management income of $13.8 million, up 246 per cent in the year, as well as fee income from its 230-hectare Dunsborough Lakes Golf Course Estate and continued strong rental income from its property portfolio assets.
Aspen’s four key funds management activities – resort/ caravan parks, a syndicated land sub-division business, core income fund and affordable retirement/ resource industry sectors – have continued to post strong results, with acquisitions into these funds totalling more than $140 million during the period.
Revaluations have also been kind to its property portfolio, adding a total of $30 million before tax, aided by an occupancy rate of 93 per cent across the portfolio, improved tenancy profiles and commercial exposure to the Western Australian market.
Of note is the revaluation of its Adelaide Terrace asset Septimus Roe Square in May, which increased in value by $20 million to $50.2 million.
Aspen’s office assets now comprise 58 per cent of the value of its property portfolio, up from 41 per cent in 2005.
In contrast, the group has reduced its industrial sector from 41 per cent to 28 per cent out of the value of its total portfolio, while the value of its retail assets now make up 13 per cent, down from 19 per cent in 2005.
The remaining 1 per cent of the portfolio relates to new accommodation assets.
Geographically, the group’s property portfolio has changed too, following a diversification strategy under which South Australia has lifted its share of the business to 23 per cent share, while WA’s share has fallen from 49 per cent to 40 per cent of Aspen’s total portfolio.
Aspen Group managing director Angelo Del Borrello said the group’s strong earnings performance had resulted in the delivery of a 20 per cent increase in distributions to its investors over the year.
