Aspen Group Limited · ASX:APZ
Aspen — Credit Suisse Presentation (May 2012)
22 slides from Aspen's conference presentation, May 10, 2012
Slide 1: Aspen Group Credit Suisse Presentation
For personal use only Aspen Group Credit Suisse Presentation 10 May 2012
Slide 2: For personal use only
For personal use only 1. Group Overview 2. Aspen Business Environment 3. Property Portfolio 4. Funds Management 5. Outlook and Summary 2
Slide 3: Group Overview
For personal use only Group Overview
Slide 4: Group Overview
For personal use only GROUP OVERVIEW − Forecast 10% like for like FY12 property portfolio net rental increase − High growth revenue outlook from Property Portfolio for FY13 − Strong leasing enquiry at Spearwood Industrial Estate − Significant increase in retail equity inflows experienced − Aspen Par
Slide 5: Board Renewal – Non executive independent members
GROUP OVERVIEW Board Renewal – Non executive independent members For personal use only Frank Zipfinger – Chairman (appointed January 2011) - Former Partner of Mallesons Stephen Jaques specialising in property - Chairman of Mallesons from 2005 to 2009 and Partner for 27 years Terry Budge – Non Execut
Slide 6: Aspen Business Environment
For personal use only Aspen Business Environment
Slide 7: Aspen Business Environment
ASPEN BUSINESS ENVIRONMENT Aspen has significant exposure to WA economy: Aspen Group AUM - Geographical For personal use only Diversification by state − WA economy produces 46% of Australia’s exports – mainly minerals and energy resources 1 SA, 14% − Significant investment in WA resource projects an
Slide 8: Aspen Business Environment
ASPEN BUSINESS ENVIRONMENT Improving funds management metrics: For personal use only − Investor confidence slowly returning in quality unlisted property funds − Lower fixed deposit interest rate environment − Growth in SMSF sector and reallocation of cash holdings − Increasing demand for high yield
Slide 9: Capital Management
ASPEN BUSINESS ENVIRONMENT Capital Management For personal use only Capital management remains a focus Key Metrics April 2012 Portfolio sales to reduce debt by $22m in May 2012 and increase facility capacity by $10m NTA 1 67.9 cps EPS (FY12) 6.43 cps Refinancing for investment term debt for ATO Dist
Slide 10: Property Portfolio
For personal use only PROPERTY PORTFOLIO 10 Aspen Group – May 2012
Slide 11: Investment Property Overview
PROPERTY PORTFOLIO Investment Property Overview For personal use only Asset sales concluded: − Settled sale of Alcoa Building May 2012 − Settlement of Rocklea premises expected mid May 2012 for $7.35m Septimus Roe Building – secured tenants at new benchmark net rent – 23% above average passing Aspen
Slide 12: Spearwood Industrial Estate
PROPERTY PORTFOLIO Spearwood Industrial Estate For personal use only Entire complex sub-leased to Key Metrics GLA (sqm) Passing rent Market rent AWH expiring June 2012 $m $m Spearwood Industrial 199,693 4.70 7.74 Strong rental upside on cessation of lease Leasing campaign showing strong demand Wareh
Slide 13: Funds Management
For personal use only FUNDS MANAGEMENT 13 Aspen Group – May 2012
Slide 14: Aspen Parks equity inflows to April 2012 and Forecast FY12
FUNDS MANAGEMENT Aspen Parks equity inflows to April 2012 and Forecast FY12 Overview For personal use only 50 $M Forecast 45 ► Strong retail equity inflows - up 82% on pcp 40 Actual ► Strategic focus on building new investor 35 30 networks across institutional, high net worth 25 and advisor segments
Slide 15: Aspen Parks Property Fund
FUNDS MANAGEMENT Aspen Parks Property Fund For personal use only Overview FY12 trading performance on track Major growth in revenue driven by mining properties FY12 distribution payout ratio of 82% Gearing reduced to 34.4% (June 2011: 44.4%) Outlook Strong equity inflows support asset growth going f
Slide 16: Aspen Diversified Property Fund
FUNDS MANAGEMENT Aspen Diversified Property Fund For personal use only Overview Key Metrics April 2012 Dec 2011 ► FY12 performance to date in line with Weighted Ave Cap 9.18% 9.18% Rate (%) forecast Occupancy (%) 96% 96% ► Property fundamentals improved however WALE (years) 5.39 5.47 secondary asset
Slide 17: Aspen Living
FUNDS MANAGEMENT Aspen Living For personal use only Overview Market conditions remain inconsistent, especially in eastern states and regional markets Perth north east corridor sales in line with expectations Settlements impacted by inventory lag and clearance delays Aspen Living – current lot produc
Slide 18: Aspen Living Outlook
FUNDS MANAGEMENT Aspen Living For personal use only Outlook Lots Region Estate Outlook remaining Activity has been flat although there are signs North Queensland 800 investor activity is increasing. Pressure remains on price as stock becomes aged. Enquiry levels and sales conversion subdued, Newcast
Slide 19: ADF No. 2
FUNDS MANAGEMENT ADF No. 1 For personal use only Overview ATO Building works now 86% complete Capital management challenges impacting on asset delivery strategy - development support being provided by Group Mariner Apartments in Geraldton occupancy in position to be sold down (90% occupancy) Norwest
Slide 20: Outlook and Summary
For personal use only Outlook and Summary
Slide 21: Outlook and Summary
For personal use only OUTLOOK AND SUMMARY − Capitalise on current strategic positioning of WA weighting to drive rental and asset value growth − Look to continue growth of our retail funds management business to be a market leader in this area − Development of new fund opportunities, both retail and
Slide 22: Disclaimer
For personal use only DISCLAIMER This presentation has been prepared by Aspen Group (“Aspen”) and should not be considered in any way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anyth