APZ: Meeting the need for affordable housing
The political discord has echoed a constant refrain over the last few years. ‘There is a housing affordability crisis!’ The proportion of rentals with rent less than $400 per week is currently less than 6% nationally with the worst cities being Sydney and Canberra. Aspen (ASX:APZ) has latched onto this theme and is doing its best to address it whilst also generating strong profits for shareholders.
Aspen develops, owns and operates affordable housing and temporary accommodation. Its target market is the circa 40% of Australian households with annual incomes less than $90,000, providing accommodation across residential communities, retirement villages and holiday parks.
Their portfolio consists of over 5,100 approved dwellings and land sites with an overall valuation above $550 million. The portfolio is well diversified with properties spread across Australia. Western Australia is their largest market, followed by NSW. 90% of the portfolio is in the highest growth states of WA, NSW, SA and Qld. They also have a mix of metropolitan and regional areas.
Aspen derives revenue from two primary sources: rentals and development. The revenue breakdown is as follows:
Rental Income - 62%Lifestyle home and land sales - 32%Food and beverage...
Aspen develops, owns and operates affordable housing and temporary accommodation. Its target market is the circa 40% of Australian households with annual incomes less than $90,000, providing accommodation across residential communities, retirement villages and holiday parks.
Their portfolio consists of over 5,100 approved dwellings and land sites with an overall valuation above $550 million. The portfolio is well diversified with properties spread across Australia. Western Australia is their largest market, followed by NSW. 90% of the portfolio is in the highest growth states of WA, NSW, SA and Qld. They also have a mix of metropolitan and regional areas.
Aspen derives revenue from two primary sources: rentals and development. The revenue breakdown is as follows:
Rental Income - 62%Lifestyle home and land sales - 32%Food and beverage...