Slide 1: 2011 Annual Results Presentation
For personal use only 2011 ANNUAL RESULTS PRESENTATION
Slide 2: Agenda
AGENDA For personal use only 1. Performance Overview 2. Property Portfolio 3. Funds Management 4. Financial Summary 5. Outlook and Guidance Appendices 2 Aspen Group – 2011 FY Results
Slide 3: Delivering on Strategy
PERFORMANCE OVERVIEW Delivering on Strategy Strategic Imperatives from FY10 FY11 Delivery For personal use only − Investment property portfolio provides continued − 62% of Group EBITDA derived source of recurring profits from property portfolio − Look to increase quality of portfolio through recycli
Slide 4: FY11 Results Highlights
PERFORMANCE OVERVIEW FY11 Results For personal use only ► Financial results delivered − Operating profit before tax up 11.4% to $33.4 million Highlights − Statutory profit up 39% to $17.4 million − Operating EPS of 6.24 cents per security (1.8% above guidance) − Cash flow from operations up 18% to $
Slide 5: FY Contribution by Segment
PERFORMANCE OVERVIEW FY 11 Contribution by Segment EBITDA Ave Funds ROC ROC For personal use only AUM F Y11 FY10 Employed FY11 FY10 $M $M $M $M % % Investment Property 327 30.85 33.48 383.15 8.1% 8.2% Funds Management Aspen Living Residential Land 319 7.96 4.52 63.15 12.6% 8.8% Aspen Parks Accom Par
Slide 6: Value Proposition and Source of Income
PERFORMANCE OVERVIEW Value Proposition 60 APZ Source of Income For personal use only $M Total Fund Management Income 50 Investment Property (Net income) ► High discount to NTA, in absolute and 40 relative terms 30 ► Sustainable yield and cash distribution underpin future performance 20 ► Strong and
Slide 7: Property Portfolio
For personal use only Property Portfolio
Slide 8: Property Portfolio Overview
PROPERTY PORTFOLIO Overview For personal use only Key Highlights Sale of two assets – recycled into ATO Building acquisition Direct Property ($m) FY11 FY10 4.4% increase in like for like rental growth Revenue 49.97 51.29 Operating EBITDA 30.85 33.48 Occupancy steady at 93%, with weighted average cap
Slide 9: Summary of Investment Properties
PROPERTY PORTFOLIO Summary of Investment Properties Book Value Cap Rate WALE Occup For personal use only PROPERTY ($m) (%) (yrs) (%) Outlook FY11 FY10 FY11 FY10 Office Portfolio Poised for vacancy take up driven by strong Septimus Roe, WA 87.0 87.0 9.25 9.25 2.64 84% market demand . Average passing
Slide 10: Recycling Strategy & ATO Office Building Acquisition
PROPERTY PORTFOLIO Recycling Strategy & ATO Office Building Acquisition For personal use only Sold St Kilda Rd, Melbourne and Currie Street, Adelaide within 2% of book value Acquired ATO Building in Adelaide for $183.7m - currently under construction (circa 30% complete) with practical completion sc
Slide 11: Property Portfolio Outlook
PROPERTY PORTFOLIO Outlook For personal use only Investment Property Forecast rental growth of 5.8% in FY12 Upside performance on closing out vacancies at Septimus Roe Continued focus on active asset management including: ─ Secure long-term leases with existing tenants to de-risk income streams & in
Slide 12: Funds Management
For personal use only Funds Management
Slide 13: Funds Management Key Highlights and Outlook
FUNDS MANAGEMENT Key Highlights and Outlook Key Highlights For personal use only Aspen Parks equity inflows FY07 to FY11 ► Fee income up 18% on FY10 40 $M ► Strong equity retail inflows: 35 ─ Aspen Park inflows up 22% 30 ─ Raised $11.5m for Enclave syndicate 25 ► Continued growth of : 20 ─ Financial
Slide 14: Funds Management FY11 Earnings Contribution
FUNDS MANAGEMENT Funds Management – FY11 Earnings Contribution For personal use only Aspen Aspen Aspen ADF No.1 Living Parks Diversified Residential Development Tourism and Core Sector Total Estates Projects Accommodation Income FY11 FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11 FY10 $ $ $ $ $ $ $ $ $ $ R
Slide 15: Aspen Diversified Property Fund
FUNDS MANAGEMENT Aspen Diversified Property Fund Revenue Operating EBITDA For personal use only FY11 FY10 FY11 FY10 $M $M $M $M Aspen Diversified 3.91 4.41 3.07 3.70 Key Events ► Improvement in WALE to 4.8 years (FY10: 2.6 years) ► Portfolio occupancy improved to 91% (FY10: 81%) ► Total income for F
Slide 16: Aspen Living FY Overview
FUNDS MANAGEMENT Aspen Living ‐ FY 11 Overview Revenue Operating EBITDA For personal use only FY11 FY10 FY11 FY10 $M $M $M $M Aspen Living 11.04 6.93 7.96 4.52 Key Events Achieved 269 lot settlements for GRV of $61.5m (up 258% on FY10) Settlements down on forecast (393 lots) due to FY11 FY10 invento
Slide 17: Aspen Living Outlook
FUNDS MANAGEMENT Aspen Living ‐ Outlook Contracts Forecast FY12 New sales to be New lots to be For personal use only SALES SUMMARY currently on Titled stock Settlements achieved constructed hand Dunsborough 28 12 16 28 - Fern Bay 76 44 32 4 72 St Leonards 161 113 48 15 146 Whitsunday Shores 29 5 24
Slide 18: ADF No. 1 FY Overview
FUNDS MANAGEMENT ADF No. 1 ‐ FY 11 Overview Revenue Operating EBITDA For personal use only FY11 FY10 FY11 FY10 $M $M $M $M ADF No. 1 5.22 2.79 2.90 0.99 Key events Sale of ATO Building (Tower 8) to Franklin Street Property Trust for $183.7m completed. Works continue on budget having reached circa 30
Slide 19: ADF No. 1 Outlook
FUNDS MANAGEMENT ADF No. 1 ‐ Outlook For personal use only Key Strategies & Outlook ATO Building – $2.7m in fees to be recognised over the construction period in FY12. Management team continue to seek mitigation of ATO lease tail in existing premises Sell out remaining medical suites and hospital ca
Slide 20: Aspen Parks Property Fund FY Overview
FUNDS MANAGEMENT Aspen Parks Property Fund ‐ FY 11 Overview Revenue Operating EBITDA For personal use only FY11 FY10 FY11 FY10 $M $M $M $M Aspen Parks 7.81 7.47 5.25 4.74 Key events Strong FY11 trading performance driven by growth in revenue from resource sector assets (up 17.6% on FY10) Tourist Par
Slide 21: Aspen Parks Property Fund Outlook
FUNDS MANAGEMENT Aspen Parks Property Fund ‐ Outlook Key Strategies & Outlook For personal use only Focus on organic development/acquisition opportunities - $20m of developments/acquisitions budgeted Maintain strong operating cash flows from continued improvement in park facilities and increased onl
Slide 22: Financial Summary
For personal use only Financial Summary
Slide 23: FY Results Overview
FY 11 RESULTS OVERVIEW Overview For personal use only Statutory profit after tax of $17.4m up 39% from FY10 profit of $12.6m Operating profit before tax up 11.4% to $33.4m Operating EPS of 6.24cps and distributions of 4.2cps Net rental income from investment properties down 3% - two properties sold
Slide 24: Income Contribution by Segment
FY 11 RESULTS OVERVIEW Income Contribution by Segment For personal use only Six year earnings trend: FY06 to FY11 60 $M 50 Interest Income 40 Equity Profits 30 Non‐Recurring Transactional Fees 20 Recurring Management Fees 10 Investment Property (Net 0 income) FY06 FY07 FY08 FY09 FY10 FY11 24 Aspen G
Slide 25: Summary Balance Sheet and Cash Flow
FY 11 RESULTS OVERVIEW Summary Balance Sheet and Cash Flow 30 June 30 June For personal use only Investment Properties principally commercial and 2011 2010 industrial, fair valued at 30 June 2011 $M $M Includes ATO Building $50m under construction. Cash and receivables 29.6 26.1 50/50 JV with Telstr
Slide 26: Summary of Group Debt Position
FINANCIAL SUMMARY Summary of Group Debt Position For personal use only 30 June 2011 30 June 2010 Core Debt Maturity (Nab) February 2014 February 2012 Drawn Debt (Core) $160m $225m Gearing (Target 25‐35%) 28% 34% Look through gearing 34% 39% Weighted Ave Cost of Debt 8.96% 8.32% Earnings Interest Cov
Slide 27: Outlook and Guidance
For personal use only Outlook and Guidance
Slide 28: Outlook & Guidance
OUTLOOK & GUIDANCE For personal use only Outlook Continuing stable rental income with potential for asset growth Funds Management growth through: ─ Aspen Living – All estates under various development/sale stages, St Leonards Estate continuing standout performance with Enclave contributing for first
Slide 29: Appendices
For personal use only Appendices
Slide 30: Appendices Contents
APPENDICES Contents Page For personal use only Appendix 1. Corporate Structure 2. Organisation Structure 3. Income Statement (Operating Earnings) 4. Reconciliation of Operating Profit to Headline Profit 5. Balance Sheet 6. Cashflow Summary 7. Summary of Group Debt Facilities 8. Summary of Investment
Slide 31: Corporate Structure
APPENIDIX 1 Corporate Structure For personal use only Property Portfolio Funds Management $300m AUM $1.0B AUM Equity / Investment Property Fund Sector Structure % Owned Loans AUM Portfolio $327m* Tourist & Accom Unlisted $18.1m Aspen Parks Nil $288m Non‐Core Assets $28m Parks Retail Fund 12% (to
Slide 32: Organisational Structure
APPENDIX 2 Organisational Structure For personal use only “Experienced and streamlined Senior Executive Team” Gavin Hawkins Managing Director Eric Lee Lino Brolese Jeff Holloway Jamie Smith Philip Barker Chris Lewis Simon Martin Head Of Head of Company Head of Funds CEO Head of CFO Secretary Commerc
Slide 33: Income Statement (Operating Earnings)
APPENDIX 3 Income Statement (operating earnings *) For personal use only FY11 FY10 Change $m $m (%) Income from operations Rental income 50.2 51.3 (2.2) Funds management 26.4 19.8 33.8 Other income 1.7 0.4 312 Total Income 78.3 71.5 9.6 Expenses Direct property expenses (16.2) (16.3) (1.3) Employmen
Slide 34: Reconciliation of Operating Profit to Headline Profit
APPENDIX 4 Reconciliation of Operating Profit to Headline Profit FY11 2H11 FY10 2H10 For personal use only ($M) ($M) ($M) ($M) Operating Net Profit Before Tax 33.4 17.8 29.9 16.2 Swap revaluation 1.7 0.5 (1.2) (1.8) Change in fair value of retirement living (0.9) (0.9) - - assets Net movement in fai
Slide 35: Balance Sheet
APPENDIX 5 Balance Sheet For personal use only 30 June 11 30 June 10 Assets $m $m Current Assets Cash and other 43.9 38.7 Non-Current Investment Properties 327.4 379.2 Equity Investments 81.0 83.1 Inventories & assets held for sale 23.5 27.2 Loans to associates 81.2 73.0 Other 40.7 45.7 Total Assets
Slide 36: Cash Flow Summary
APPENDIX 6 Cash flow Summary For personal use only FY11 FY10 Mvt Note $m $m $m Cashflow from operating activities 36.8 31.1 5.7 1 Key cashflows from investing activities Acquisition of property, plant and equipment (0.3) (0.3) - Redevelopment Works / Acquisition of inventories (11.5) (15.7) 4.2 Acqu
Slide 37: Summary of Group Debt Facilities
APPENDIX 7 Summary of Group Debt Facilities For personal use only Aspen Facility Purpose Maturity Hedging ICR LVR Covenants Group Limit (interest) Facilities NAB Core Long Term Core ICR 1.5x $130.8m Feb-14 Facility 1 Facility LVR 62.5% and 60% from 1/1/12 103% 2 2.0x 3 59% As per core NAB $16.5m Kar
Slide 38: Summary of Investment Properties
APPENDIX 8 Summary of Investment Properties For personal use only Latest FY11 Change Property Independent Book Value to Cap Rate WALE Occupancy Valuation ($m) Book Value (%) (yrs) (%) Date (%) Septimus Roe, WA Jan 10 87.0 - 9.25 2.64 84 Alcoa Office Complex, WA Dec 09 28.0 - 9.00 2.92 100 Woolstores
Slide 39: Investment Property Diversification
APPENDIX 9 Investment Property Diversification For personal use only Sector Diversification Geographical Diversification (post ATO Building completion) (post ATO Building completion) 1 3% 13% 6% 28% 26% 61% 63% Commercial Industrial Other WA SA VIC QLD Note 1 Direct Portfolio excludes Ballina NSW co
Slide 40: Funds Management - Assets Under Management
APPENDIX 10 Funds Management ‐ Assets Under Management For personal use only Aspen Living ADF No.1 Residential Developments 5 Assets (AUM 14 Assets (AUM $319M) $254M) Aspen Parks Aspen Diversified Tourism & Core Income Accommodation 9 Assets (AUM $131M) 25 Assets (AUM $288M) 40 Aspen Group – 2011 FY
Slide 41: Aspen Living Pipeline
APPENDIX 11 Aspen Living ‐ Pipeline For personal use only Enclave at St Leonards Mar 181 lots 1 GRV $40.5 Jun mil 2013 Whitsunday Shores 855 lots 12 Estate GRV Feb $256mil 2024 St Leonards Estate 5 985 lots Jan GRV $273mil Jun 2007 2016 881 lots Seaside Fernbay 10 Jan GRV Sep $260mil 2006 2020 1,376
Slide 42: ADF No. 1 Forecast Development Timetable
APPENDIX 12 ADF No. 1 – Forecast Development Timetable For personal use only Project Sector FY12 FY13 FY14 FY15 FY16 GRV ($m) Byford by the Scarp Residential Land Subdivision 85 Chittering Rural Residential Subdivision 42 Upper Swan Subdivision Land Bank 57 Mariner Apartments 50% interest Tourist Ac
Slide 43: Additional Fund Metrics
APPENDIX 13 Additional Fund Metrics For personal use only Aspen Fund Bank Maturity Total Assets Debt Facility Aspen Dunsborough Lakes* Nab FY14 $98m $34m Aspen Whitsunday Shores* Nab FY13 $50m $6m Fern Bay Seaside Village* Bankwest FY12 $78m $32m St Leonard's Estate* Nab FY14 $81m $30m Enclave at St
Slide 44: Disclaimer
DISCLAIMER For personal use only 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
Slide 45: For personal use only
For personal use only