Aspen Group Limited · ASX:APZ
Aspen — Investor Presentation (June 2006)
32 slides from Aspen's investor presentation, Jun 27, 2006
Slide 1: Aspen Group Acquisition and Placement
Slide 2: Important notice and disclaimer
This presentation has been prepared by Aspen Group Limited and Aspen Funds Management Limited as the responsible entity of Aspen Property Trust (“Aspen”), in connection with a proposed offer of stapled securities in Aspen. This presentation and its contents have been distributed in confidence and ma
Slide 3: Agenda
1. Overview of the Offer 2. Acquisition overview and key benefits 3. Aspen overview and update 4. Acquisition and portfolio impact 5. Offer details Appendix A — Funds Management
Slide 4: 1. Overview of the Offer
1. Overview of the Offer
Slide 5: Aspen is seeking to raise $50 million through a conditional placement
Aspen Group (Aspen) is seeking to raise $50 million through a conditional placement (Offer) Proceeds of the Offer will be used to partly fund the acquisition of the MTAA Super House (Acquisition) for $66.98 million - A-grade office property located in Adelaide CBD Acquisition is consistent with Aspe
Slide 6: 2. Acquisition overview and key benefits
2. Acquisition overview and key benefits
Slide 7: Acquisition of MTAA Super House
- Proceeds of the Offer will be used to partly fund the acquisition of MTAA Super House for the Aspen Property Trust - A-grade office property located in Adelaide CBD - scheduled to settle early July 2006 » Acquisition increases Aspen Property Trust’s property portfolio by 32% from $217 million to $
Slide 8: Financials
Financials » Marginally accretive to FYO07 EPS — FY06 EPS 12.0 cps — increase of 37.1% over FYO05 EPS — FY06 DPS 10.0 cps — increase of 19.8% over FYO5 DPS » Gearing decreases to 32.7% which facilitates future growth of funds management platform » Increases NTA » Increases assets under management wh
Slide 9: Portfolio
Portfolio Lease exniry profile by portfolio net income post Acquisition « WALE of 4.6 years 100% « Increase in NLA by 25,655 sqm (12.6%) to 229,987 80% sqm 60% « Improved tenant quality 40% ~— Commonweaith Government tenants contribute 80% of MTAA Super House income and 25% of the 20% portfolio post
Slide 10: 3. Aspen overview and update
3. Aspen overview and update 10
Slide 11: $287 million portfolio of diversified property assets
$287 million portfolio of diversified property assets Property assets characterised by strong income security through high quality tenants and long term leases = Established in April 2004 = 5 funds with $342m AUM «Aspen Parks ($99m) » Aspen Diversified ($142m) » Dunsborough Lakes ($89m) « Living Vil
Slide 12: Funds Management Summary
Funds Management Summary » Aspen currently has 5 funds under management Aspen fund Aspen Parks Aspen Diversified Dunsborough Living Village No 1’ | Living Village No 2' Lakes Asset value : $99m $142m $99m : : Commenced : ; ‘April 2004 : April 2005... November 2005 > dune 2005 : September 2005. Targe
Slide 13: FY06 achievements
FY06 achievements December July $22m placement for Initfal 5 properties settled Funds Management for Aspen Diversified October business and 3 February May Property Fund and Aspen Settlement of November properties settled for Diversified Property Fund Second capital raising Parks Property Fund proper
Slide 14: Aspen continues to drive earnings and distribution growth
nav Aspen continues to drive earnings and distribution growth » EPS, DPS and NTA (adjusted for 5 for 1 consolidation) have grown substantially since inception FYO3 FY04 FYO5 FYO6 3yr CAGR EPS (cents) TA 8.75 12.0 17.5% DPS (cents) 5.6 8.35 10.0 21.3% NTA per 0.68 0.81 1.077 16.3% security ($) 'NTA p
Slide 15: 4. Acquisition and portfolio impact
4. Acquisition and portfolio impact 415
Slide 16: A-grade commercial office building located in Adelaide CBD
» A-grade commercial office building located in Adelaide CBD - 12 levels of office space - 95 basement car parking spaces » Weighted average lease expiry of 4.3 years » 80% leased to Commonwealth Government tenants Major tenants % OF GLA 21.5% duly. 2014 18.5% ».. February 2007* 9.9% ‘April 2007 . 2
Slide 17: Portfolio pre and post Acquisition
Number of properties . i rrsr—~——C—=iC Portfolio - pre Acquisition Portfolio — pest Acquisition ee eee kg Ses Number of tenants Value ($m) Total NLA (sqm) WALE (years) ~ Asset diversification by vaiue Garden 33 York St MTAA Super 564 St House Kilda Rd 2a 10% Rockiea 4% . Septimus Noble Park Roe 8% 1
Slide 18: Property portfolio acquisition and valuation summary
Asset Acquisition date Valuation | Acquisition / valuation Wi (years) % property portfolio (by. total cost ($m) yield (%) Valuation) MTAA Super House, Adelaide, SA July 2008. 79.9 gg Ag es 8A Septimus Roe Square, Perth, WA October 2002 ‘50.2 95 SA oor 175° Alcoa Office Complex, Booragoon, August 200
Slide 19: 5. Offer details
5. Offer details 19
Slide 20: Conditional placement of $50 million
» Conditional placement of $50 million - Pricing to be determined by a bookbuild within a range of $1.48 to $1.54 » Securityholder meeting to approve placement Placement, ; Acquisition of MTAA ‘Super : : » House > : . Debt. en 21.2. Stamp duty and other 02 “42 transaction costs 20
Slide 21: Offer details: amount, pricing and ranking
» Amount to be raised: $50 million via a conditional placement » Pricing: Price to be determined by bookbuild in the range of $1.48 to $1.54 « Ranking: New Securities will rank pari passu from allotment (ie. 9 August 2006) and will be entitled to the full distribution from 1 July 2006 Price analysis
Slide 22: Offer of $50 million through a conditional placement
Offer of $50 million through a conditional placement The proceeds of the Offer will be used to partly fund the acquisition of the MTAA Super House for $66.98 million Increases assets under management which will deliver greater recurring earnings ~ pro-forma FY06 EBITDA composition 66% trust / 34% co
Slide 23: Indicative timetable
Note: These dates are indicative only and may change 23 26 June 2006. 26 June 2006 27 June 2006 3 July 2008 2 August 2006 8 August 2006 9 August. 2006
Slide 24: Appendix A — Funds Management
Appendix A — Funds Management 24
Slide 25: Aspen Parks Property Fund
Aspen Parks Property Fund Established April 2004 with objective to achieve AUM of 5.0% $150 million within 5 years ; wee . . 4.5% of total assets Initial portfolio acquired from Fleetwood Corp Current AUM of $99 million with 13 parks Caravan Park Home Resorts: asset class not readily available to re
Slide 26: a - . Twofold
a - . Twofold ~~ ~C. Bay a Woodman Point
Slide 27: ISLAND GATEW
ISLAND GATEW
Slide 28: Aspen Diversified Property Fund
Appen Aspen Diversified Property Fund Launched April 2005 — objective to achieve $250 million AUM within 5 years Leverages Aspen’s core commercial property expertise and active asset management approach Target properties in the $5 — $30 million range (too large for individual investors but too small
Slide 29: ill
ill A
Slide 30: Aspen Diversified Property Fund
Aspen Diversified Property Fund Sector diversification Portfolio overview Retail 34% Industrial “Office 11.0 36% WA Retail BA WA “os Office + 7B WA 0 Reta 8 Office 33% WA. : ; Office. 2: vo BA vos tps WA ~. ndustrial 9.0... Geographic diversification new “of gga aCe ~ es VIC 21% “NSW 0 Retail. 29.5
Slide 31: Aspen Dunsborough Lakes Limited
Aspen Dunsborough Lakes Limited ® Established to acquire the 230ha Dunsborough Lakes golf course estate for $93.7 million in off market transaction Established 18 hole championship golf course $40 million of equity raised from institutional/sophisticated investors Aspen holds 20% equity and acts as
Slide 32: Busselton and Dunsborough as new coastal cities
*“...and Busselton (including Dunsborough) on the south west cape of WA epitomise ascendant new coastal cities” Bernard Salt, The Big Shift, 2004 32