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  • As a result of the fires burning through Australia’s eastern coast, property provider Aspen Group (APZ), expects to be economically impacted by at least $500,000
  • The company has properties along the New South Wales South Coast which is suffering major losses of housing, infrastructure and the lives of people and wildlife
  • Aspen’s local management teams are doing their best to keep all customers safe and will continue to do so
  • Positively however, the company says better-budgeted performance over the past six months will partially offset the losses
  • Aspen is down slightly by 0.42 per cent and shares are trading for $1.18 each

Property provider Aspen Group (APZ), has announced that none of its properties have been directly damaged by the bushfires in New South Wales.

In saying that however, its business is being economically impacted at the New South Wales South Coast properties, Barlings Beach and Tween Waters.

Fires are still burning along the NSW South Coast and this tragedy has resulted in major loss of housing, infrastructure and people’s lives.

According to reports, all major service roads in the region have been closed. This has significantly interrupted the supply of food, water, power and telecommunication to tourists and residents.

Aspen claims its local management teams are doing their best to keep all the company’s customers safe by providing free and discounted accommodation and services.

While it doesn’t know when trading conditions will return to normal, the company will continue to provide support to the communities impacted.

So far, Aspen expects both revenue and net operating income (NOI) to be negatively impacted by at least $500,000.

However, longer-term impacts are likely to be significantly higher – but the company cannot predict this for certain.

Aspen maintains insurance over its property assets and gross profits, and may be able to successfully recover some of the losses.

The accommodation provider isn’t the only business to be negatively impacted by the rampant fires.

Kangaroo Island Plantation Timbers and fruit and vegetable grower Costa Group have reported financial losses recently.

Additionally, Bega Cheese reported its employees and suppliers have been affected despite its two New South Wales-based facilities not being directly damaged.

Positively, Aspen Group says the impacts have been partially offset by better-budgeted performance over the past six months.

At this stage, its guidance for the 2020 financial year remains at 6.75 to 7 cents of underlying earnings per security and 6 cents of distributions per security.

Aspen is down slightly by 0.42 per cent and shares are trading for $1.18 each at 12:30 pm AEDT.

APZ by the numbers
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