Forecast earnings up, increased distribtion rate for Aspen Group

Perth based property developer Aspen Group has provided an updated full year earnings forecast for the 2006 financial year and has announced an increased distribution rate for the June quarter.

Following continued strong growth of the Group's fund management income and property portfolio, the company expects to exceed the previous forecast earnings guidance of 11.5 cents by at least 0.5 cents. The revised earnings floor of 12 cents per stapled security for FY 2006 compares to the 2005 earnings of 8.75 cents per stapled security and represents a total earnings increase of 37 per cent for the 2006 year.

The Group said it's strong earnings have enabled it to announce a further increase in the quarterly distribution rate, from 2.625 cps to an estimated 2.875 cps, effective from the June 06 quarter.

Following the June quarter payment the total distribution paid for the 2006 year will be 10 cps, a 20 per cent increase over the 2005 total distribution of 8.35 cps (on a post consolidation basis).

Fee income from the Dunsborough Lakes project, growth in both the Aspen Parks and Aspen Diversified Property Funds, along with the continued strong rental income from Aspen's property portfolio assets, have all contributed to the strong earnings growth in the second half of FY06.

Aspen Group managing director Angelo Del Borrello said the Group was very pleased to be in a position to announce a further earnings upgrade for the 2006 year, and distribution increase.

"This further increase in forecast earnings reflects extremely positively on Aspen's business model and on the stringent manner in which we have continued to implement our fund management growth strategy", he said.

The Group expects the positive earnings outlook to continue in the 2007 financial year and will announce its FY 2007 earnings guidance in July.