Perth-based commercial property investor Aspen Group Ltd has announced an underlying net profit after tax of $33.5 million, up 81 per cent on the previous year's results.
Perth-based commercial property investor Aspen Group Ltd has announced an underlying net profit after tax of $33.5 million, up 81 per cent on the previous year's results.
The company's revenue increased by 55.7 per cent to $56 million, while the rate of earnings per security rose almost 22 per cent to 15.62 cents each, up from the 12.81 cents earned in the 2005-06 reporting period.
In an announcement, Aspen attributed the profit increase to higher revenues from its property portfolio, following the acquisition of MTAA House in Adelaide, coupled with investor demand for property related investment funds which underpinned higher fund management income.
Property revaluations resulted in an 18.1 per cent, or $46.1 million, uplift in the company's property portfolio, while the value of assets under management rose 155 per cent to $883 million.
Among the most significant of these was the 51 per cent valuation increase of Perth's Septimus Roe Square Building, which the company said had become competitive in the city's tight rental market.
Funds management income was 56.7 per cent higher following substantial asset growth and establishment of several new syndicated funds, while the value of property assets under management increased 155 per cent to $883 million.
The news came as beauty company L'Oreal Australia signed on to become the major tenant for the Aspen-owned 564 St Kilda Rd in Melbourne, taking 50 per cent of the net lettable area of the building after signing a 10-year lease over the site.
L'Oreal will replace Hewlett Packard as major tenant when the company lease expires in February.
The full text of an announcement on the Melbourne property is pasted below
Aspen Group (ASX:APZ) is pleased to announce it has secured the world's largest beauty company, L'Oréal as a major tenant for its office building at 564 St.Kilda Road, Melbourne.
L'Oréal Australia has committed to a 10 year lease for 4,278 sqm, representing 50% of the net lettable area of the building. L'Oréal is moving its Australian headquarters to the St Kilda Road site.
Aspen Group Managing Director Mr Del Borrello said "it is a tremendous achievement to have secured a multi-national tenant of the stature of L'Oréal who will also assume the buildings naming rights."
The lease, which commences in March 2008, is a significant coup for the property with existing major tenant Hewlett Packard due to end their lease over this area in February 2008. Occupancy for the property will remain at 100%.
"This is an outstanding result for the Group, a reflection of the combined efforts of our national asset management team," said Mr Del Borrello.
Following commencement of this lease the building will boast an impressive weighted average lease term in excess of 7 years adding further strength to the Group's property portfolio
