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Aspen's Geelong Riverview Tourist Park |
THE Perth-based Aspen Group, which operates a network of caravan parks
all over Australia, has announced an after-tax first-half profit of $15.6 million.
According to group managing director Angelo Del Borrello, the operating
result for the half-year ending December 2009 was in line with
expectations and an improvement on the group's previous half-year result,
demonstrating a return to more stable trading conditions.
And he said the group's Aspen Parks division continued to be a "standout
performer" and he expected it to carry on being a strong contributor to
earnings.
The division's share of net profits for the December 2009 half was
$982,000 compared with $460,000 for the corresponding period in 2008.
Aspen Parks was formed in 2004 and now owns a portfolio of 25 quality holiday
destinations in Western Australia, South Australia, Victoria, New South
Wales and Queensland, with a total asset value of over $270 million.
In a statement, the group said income from its parks continued to grow,
buoyed by strong occupancies and improved yield management across the
portfolio.
Resource-based assets had benefited from the start of major resource
projects, and strong occupancies at the tourist and accommodation parks
had demonstrated the resilience of this fund and market segment during the
financial crises.
Aspen Parks remains one of the few property based funds to hold a
recommended "Upper End” rating from a leading research house which has
been a key driver of increased financial adviser interest and consistently
strong equity inflows, up 145 percent on last year's first-half.
This, together with strong cash flows from operations, has enabled the fund
to substantially repay a $20.3 million loan from the Aspen Group.
Following full repayment of the loan – expected in the third quarter of
this year's financial year – surplus cash flows and continued strong equity
inflows will be applied to reduce debt, or applied to earnings accretive
development and acquisition opportunities.
"Aspen Parks continues to be a standout performer in the unlisted property
sector and is well positioned to capitalise on its strong investor
following and financial position to undertake growth opportunities going
forward," Mr Del Borrello said.
A few weeks ago investors in Aspen Parks voted overwhelmingly in favour of
continuing the fund in its existing format with no set future maturity
date, removing the forthcoming fund review date of June, 2011.
"The outcome of the meeting was a strong vote of confidence in the Aspen
Parks team and we expect Aspen Parks to continue as a long term
contributor to funds management earnings," Mr Del Borrello added.
Aspen Parks was created with the aim of acquiring, managing and
growing a portfolio of tourist park and resort properties to a value of at
least $150 million over a five-year time frame.
But acquisitions and strong capital growth from the portfolio helped the
division to achieve the objective in only three years.
The fund continues to seek out attractive investment opportunities which
will further expand its already diverse portfolio of tourist properties
including caravan parks, tourist parks and resorts.
