Aspen Group Inc. shares jumped more than 15% on Wednesday after the healthcare real estate investment trust posted quarterly results that exceeded analyst expectations.
The company reported revenue of $124.7 million for the three months ended Sept. 30, up 8% from the same period last year and ahead of the $118.3 million consensus estimate. Net income rose to $22.1 million, or 48 cents per share, compared with $19.8 million, or 43 cents per share, in the prior-year quarter. Adjusted funds from operations (AFFO) per share totaled 52 cents, topping the 49-cent forecast.
Aspen attributed the outperformance to higher occupancy rates across its portfolio of medical office buildings and continued demand for outpatient care facilities. The company also raised its full-year AFFO guidance to a range of $2.05 to $2.10 per share, up from the prior $1.95 to $2.00 per share.
Analysts at Stifel reiterated a buy rating on the stock, citing the improved operational metrics and raised guidance. The shares were last up 16.2% at $28.45 in early trading, extending gains following the results.
Aspen Group, which owns and operates medical office properties in 28 states, has seen its stock gain roughly 25% over the past three months as investors bet on steady demand for healthcare real estate amid an aging U.S. population.
