Fund Manager Summary
The fund managers believe that the outlook for Aspen Group Ltd presents a significant opportunity, particularly in the value for money accommodation sector under a build to rent model. In their opinion, Aspen is a company that operates under the radar while steadily enhancing its strengths. The management's emphasis on return on invested capital (ROIC) is expected to yield strong returns for shareholders, as evidenced by their recent acquisition of a budget-housing community in W.A. This strategic move is anticipated to benefit investors in the long term. Both Ingenia and Aspen are well-positioned to serve a demographic sweet spot of budget-conscious buyers and renters, especially given the lack of supply in this market. The fund managers assert that returns in this sector should remain above average for the foreseeable future.
Source: Trading View
Commentary From The Managers
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Perpetual Asset Management
31 Oct 2025
$5.28
Summary
- Aspen Group’s strong performance in October (+12.82%) reflects positive market sentiment.
- Acquisition of a greenfield master plan community site in Wallaroo, South Australia, secured at an attractive entry price.
- This acquisition represents a strategic expansion into a coastal location with significant council infrastructure investment.
- The development plan includes land lease sites, build-to-rent dwellings, and traditional land lots.
- Early-stage engagement from local council indicates a constructive approval pathway.
- While income generation is several years away, the transaction highlights Aspen's ability to source accretive off-market opportunities in supply-constrained regional markets.
- Post-acquisition, gearing remains conservative with a healthy pipeline of similar deals emerging.
- Aspen is executing its strategy of delivering affordable housing solutions in areas of acute undersupply.
- The company’s disciplined capital allocation and focus on scalable developments position it well for growth.
- Perpetual Asset Management continues to hold because Aspen is well-positioned to capitalize on sustained structural tailwinds in the residential accommodation sector.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Perpetual Asset Management
31 Oct 2025
$5.28
- Aspen Group’s strong performance in October (+12.82%) reflects positive market sentiment.
- Acquisition of a greenfield master plan community site in Wallaroo, South Australia, secured at an attractive entry price.
- This acquisition represents a strategic expansion into a coastal location with significant council infrastructure investment.
- The development plan includes land lease sites, build-to-rent dwellings, and traditional land lots.
- Early-stage engagement from local council indicates a constructive approval pathway.
- While income generation is several years away, the transaction highlights Aspen's ability to source accretive off-market opportunities in supply-constrained regional markets.
- Post-acquisition, gearing remains conservative with a healthy pipeline of similar deals emerging.
- Aspen is executing its strategy of delivering affordable housing solutions in areas of acute undersupply.
- The company’s disciplined capital allocation and focus on scalable developments position it well for growth.
- Perpetual Asset Management continues to hold because Aspen is well-positioned to capitalize on sustained structural tailwinds in the residential accommodation sector.
Summary
Perpetual Asset Management
30 Sept 2025
$4.68
- Perpetual Asset Management notes that Aspen Group’s performance in September was strong, with a growth of 7.8%.
- Aspen acquired a greenfield master plan community site in Wallaroo, South Australia, secured at an attractive price from administration.
- This acquisition represents a strategic expansion into a coastal location with significant council infrastructure already in place.
- The development plan includes land lease sites, build-to-rent dwellings, and traditional land lots.
- Early engagement with local council suggests a constructive approval pathway for the development.
- While income generation is several years away, the transaction shows Aspen's ability to build a pipeline of rental and development assets.
- Aspen continues to source value-accretive opportunities in supply-constrained markets.
- Post-acquisition, Aspen maintains conservative gearing, positioning the company well for future execution of its strategy.
- The focus on affordable housing solutions in undersupplied areas aligns with market demand.
- Aspen’s disciplined capital allocation and emphasis on scalable developments in key growth corridors enable it to capitalize on structural tailwinds in the residential accommodation sector.
Summary
Airlie Funds Management
30 Sept 2025
$4.68
- Aspen Group reported FY25 earnings that were +22% on pcp and ahead of market expectations.
- The stock has re-rated significantly since our initial purchase as the market gained greater visibility on the Company’s pipeline of affordable housing developments.
- There is greater confidence in the margins and returns that can be extracted from these developments.
- Airlie Funds Management continues to hold due to the Company’s capability to deploy capital into an underserviced part of the housing market.
Summary
Airlie Funds Management
16 July 2025
$3.82
- Aspen Group (ASX: APZ) is a small-cap property platform addressing Australia’s housing affordability crisis and ageing population.
- The company operates in two segments: Development (building affordable homes with ~30% margins) and Operating (generating recurring income through land leases).
- Aspen is shifting towards lifestyle communities, selling homes to older Australians while retaining land ownership.
- The company acquires land and civils for around AUD 100k per site, constructs homes for AUD 280k, and sells them for AUD 400k, earning ~AUD 120k profit.
- Land is leased for ~AUD 180/week, generating net rental income of around AUD 6,200 annually, a 6% yield on land cost.
- This land-lease model allows older Australians to access affordable home-ownership without large upfront costs.
- Government support enhances this model, enabling Aspen to recycle capital efficiently and build a long-term annuity income stream.
- With rental vacancy rates at record lows, Aspen targets the bottom 40% of income earners, offering land-lease rentals under AUD 200/week.
- Government policy supports Aspen’s model, with the over-65 population projected to grow significantly by 2030.
- The management team, led by Joint CEOs David Dixon and John Carter, holds around 10% ownership, aligning interests with shareholders.
- Aspen has achieved ~20% compound annual growth in NAV and EPS, with underlying EPS up 15% in FY24 and forecast to grow 21% in FY25.
- The company has an approved pipeline of around 1,100 sites and aims for 140 settlements in FY26 and 170 in FY27.
- Trading at roughly 20× FY26 earnings with forecast mid-teens earnings growth, Aspen is viewed as scalable and capital-efficient.
- Jack McNally (on behalf of Airlie Funds Management) believes Aspen’s model effectively addresses affordability issues while delivering strong investment returns.
Summary
Airlie Funds Management
30 June 2025
$3.95
- Aspen Group (APZ.ASX) is a small-cap real estate platform addressing the housing affordability crisis and the ageing population in Australia.
- The business operates in two segments: Development (earning ~30% margins) and Operating (generating recurring rental income).
- Aspen has shifted focus towards lifestyle communities, responding to growing demand and contributing a rising share of profits.
- The land lease model allows Aspen to sell homes while retaining land ownership, generating stable rental income.
- Aspen's management, led by David Dixon and John Carter, is highly experienced and aligned with shareholders, holding almost 10% of the company.
- Aspen initiated a position at ~$2.50, viewing it as a multi-year opportunity with ~20% CAGR in NAV and underlying EPS.
- The land lease model separates dwelling ownership from land ownership, making it attractive for older Australians.
- With low rental vacancy rates and rising rents, Aspen's typical product rents for under $200 per week, significantly lower than market rates.
- Aspen targets the bottom 40% of income earners, aligning with government efforts to address low-cost housing undersupply.
- The population over 65 is projected to grow, increasing demand for affordable, low-maintenance housing.
- Aspen's management has a history of disciplined execution, with ~20% annual growth in earnings per share over the past five years.
- Current pipeline includes 1,100 approved sites, with plans to double this and significant settlement targets for FY26 and FY27.
- Aspen trades on 20x FY26 earnings, with expected midteens earnings growth in the medium term.
- In May, Airlie Funds Management toured Aspen’s communities, including Sierra, Australind, and Meadowbrooke, showcasing their revitalization efforts.
Summary
Firetrail Investments
30 June 2025
$3.95
- Firetrail Investments continues to hold its position in Aspen Group Ltd.
- Aspen rallied after raising $70 million in May to strengthen its balance sheet.
- The funds will assist Aspen in pursuing both organic growth and acquisitions.
- Aspen entered exclusive due diligence on a $20 million Adelaide metro portfolio, expected to boost earnings.
- This acquisition is anticipated to support future growth.
- Gearing is set to fall from 27% to 17%, providing the company with more financial flexibility.
- Management reaffirmed its target of 10% annual EPS growth, indicating confidence in Aspen’s scalable model.
Summary
Perpetual Asset Management
30 June 2025
$3.95
- Aspen Group delivered a strong return over the quarter (+43.4%).
- Investors responded positively to the company’s clear strategic direction.
- Aspen is exposed to Australia’s pressing structural theme: housing affordability.
- The portfolio includes lifestyle and residential communities offering dwellings below the national median.
- Site rents are well beneath government support thresholds, enhancing social relevance and economic resilience.
- Aspen completed a $70 million institutional placement and raised an additional $18 million via an oversubscribed Security Purchase Plan.
- Proceeds are aimed at strengthening the balance sheet and funding selective acquisitions.
- A flagged $20 million portfolio acquisition in Adelaide is planned.
- The strength of investor demand reflects confidence in Aspen’s scalable business model and disciplined capital deployment.
- With ongoing rental inflation, low vacancy rates, and constrained affordable housing supply, Aspen is well positioned to grow earnings.
- Aspen delivers a defensive income stream supported by long-term demographic and economic tailwinds.
Summary
Cooper Investors
30 June 2025
$3.95
- Cooper Investors continues to hold Aspen Group (APZ) due to its strong performance and value potential.
- Last year, they "high graded" affordable housing exposure by transitioning from Eureka Group to Aspen Group.
- Aspen has shown multiple earnings upgrades and has made value accretive acquisitions.
- The stock was initially underappreciated, presenting a significant opportunity for growth.
- There is latent value in Aspen’s rapidly growing land lease business, which remains largely unnoticed.
- The company has strategically assembled its land bank, enabling it to offer affordable price points for quality products.
- This affordability leads to high sales velocity, minimal capital tie-up, and strong returns.
- Aspen’s ability to deploy capital opportunistically is expected to create significant value over time.
- Recent projects, like the rejuvenation of a derelict Perth apartment block, have yielded returns exceeding 50%.
- Aspen’s acquisition of a lithium producer’s workers’ accommodation asset was made at a significant discount to its original capital investment.
- The depreciation schedule of the asset aligns closely with the purchase price, providing a tax shield.
- Despite the dominance of large capitalisation stocks, smaller companies like Aspen can benefit from this dynamic.
- Both Aspen and Regis are poised for potential index inclusion in the next 6–12 months, which could enhance their market performance.
Summary
Milford Asset Management
30 June 2025
$3.95
- Milford Asset Management notes a strong performance from Aspen Group, which increased by 16.9% following a successful equity raise.
- Aspen Group is recognized as a leading provider of quality affordable accommodation for the 40% of Australians with a household income under $100k per annum.
- The company is involved in the ownership, development, and operation of various types of communities, including residential, retirement, and holiday parks across Australia.
- Milford Asset Management continues to hold its position in Aspen Group due to these strong fundamentals and growth potential.
Summary
Oracle Advisory Group
31 Mar 2025
$2.79
- Aspen Group Ltd focuses on "value for money" accommodation under a build to rent model.
- The company operates under the radar, steadily enhancing its strengths.
- Management emphasizes return on invested capital (ROIC) for each project to deliver strong returns for shareholders.
- Post the quarter balance date, Aspen made a significant acquisition of a budget-housing community in W.A, which is expected to benefit investors long-term.
- Aspen and Ingenia are positioned well to tap into a demographic sweet spot: budget-conscious buyers and renters.
- There is a lack of supply in this demographic, making Aspen well-positioned to capitalize on this trend throughout the decade.
- Housing supply issues are not resolved quickly, leading to above-average returns in this sector for the foreseeable future.
Summary
Oracle Advisory Group
31 Dec 2024
$2.46
- Oracle Advisory Group has updated their investment thesis on Aspen Group Ltd (APZ).
- Aspen is a property company outside of the ASX REIT index.
- The company has demonstrated strong historical growth and a promising outlook.
- Aspen’s focus on Return on Invested Capital (ROIC) enhances its investment appeal.
- The founder-led management team is seen as a key differentiator.
- Aspen's emphasis on affordable housing positions it uniquely in the market.
- There is a strong belief that Aspen could continue to generate high returns well above its cost of capital.
- This potential is expected to create significant shareholder value.
- Aspen has shown solid performance since Oracle Advisory Group first invested in the company.
Summary
Firetrail Investments
30 Nov 2024
$2.59
- Firetrail Investments continues to hold because of Aspen Group's position as an affordable accommodation provider.
- Aspen Group has outperformed following its AGM.
- The company delivered a positive trading update and upgraded its FY 2025 guidance, projecting a +16% increase in underlying EPS compared to the previous year.
- Aspen highlighted momentum in its development business, indicating it is on track to more than double production in FY 2025, supported by stabilizing build times and construction costs.
- In its rental business, vacancies remain minimal, and the rental pool is growing at +10% pa.
- Passing rents across Aspen’s current portfolio are generally below market, which is expected to continue to underpin future growth.
- Aspen's focus on affordable housing positions it well to capitalize on the rising demand for cost-effective accommodation in Australia.
- This focus contributes to its robust performance and outlook for the coming fiscal year.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"While often overlooked, there seems to be a compelling case for Aspen Group Ltd. Their strategic focus on budget-conscious accommodations may just position them to thrive as housing supply struggles to catch up with demand, potentially rewarding investors in the long run."
Last Updated: 31 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Aspen Group Ltd (ASX:APZ)?
Fund managers including Oracle Advisory Group, Cooper Investors, Airlie Funds Management, Firetrail Investments , Milford Asset Management and Perpetual Asset Management have invested in Aspen Group Ltd (ASX:APZ).
Why do fund managers invest in Aspen Group Ltd?
Fund managers invest in Aspen Group Ltd due to its strategic focus on "value for money" accommodation through a build-to-rent model. The company's strong emphasis on return on invested capital (ROIC) ensures robust shareholder returns. Recent acquisitions, like a budget-housing community in Western Australia, position Aspen to benefit from the ongoing demand among budget-conscious renters, particularly in a market with limited supply. This demographic alignment suggests sustained above-average returns for the foreseeable future.
What happened to Aspen Group Ltd (ASX:APZ)?
Fund managers are investing in Aspen Group Ltd due to its strong earnings growth and strategic acquisitions in the affordable housing sector. Recent reports highlight a 22% increase in FY25 earnings and positive market sentiment following the acquisition of a greenfield master plan community in Wallaroo, South Australia. This site offers significant potential for development, including land lease and build-to-rent options, supported by local council infrastructure. Aspen's disciplined capital allocation and focus on scalable projects in supply-constrained markets position it to benefit from ongoing demand for affordable housing.