Aspen Group (ASX:APZ) Reports Higher Property Valuations and Distribution Increase
Property Valuation Highlights
Aspen Group (ASX: APZ) reported that independent property valuations have increased by 6.6% over the book value as of 30 June 2024. The valuations were conducted on six properties, which constitute 15% of Aspen’s total investment property value. The increased valuations are anticipated to enhance net rental income for FY25 as compared to FY24.
Detailed Valuation Changes
The weighted average capitalisation rate (WACR) remained stable; however, assumed cap rates have generally expanded by 25-50 basis points. Notably, the cap rate for 126 Peninsula Road, Maylands has contracted by 75 basis points. The valuation data highlights significant growth in several properties, with the value of 126 Peninsula Road increasing by 11.9% to $23 million.
Distribution Announcement
In conjunction with the property valuations, Aspen Group declared an interim distribution of 5.00 cents per security, reflecting an 18% increase from the previous corresponding period. This distribution represents 50% of the minimum guidance of 10.00 cents per security for FY25. The ex-distribution date is scheduled for 30 December 2024, with a record date on 31 December 2024.
Management’s Outlook
Joint Chief Executive Officer David Dixon stated, “The independent valuations affirm our strategic focus on acquiring and managing high-quality properties in growth locations.” Furthermore, Aspen Group plans to release its half-year results on 20 February 2025. The Distribution Reinvestment Plan remains suspended for the interim period.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aspen Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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