Aspen Group Limited · ASX:APZ
Aspen — H1 2006 Earnings Presentation
35 slides from Aspen's earnings presentation, Feb 27, 2006
Slide 1: 2006 Half Year Results
Slide 2: Aspen Group - Overview
da . Aspen Group - Overview Financial Results Investment Portfolio Funds Management Board of Directors and Management Summary Half Year Results 2006
Slide 3: Overview
up.Overview « $188M Portfolio of diversified property « 5 funds with $328M GAUM assets - Aspen Parks ~ Aspen Diversified ~ Dunsborough Lakes ~ Living Vilages No 1 & No 2 « Property assets characterised by strong income security through high quality tenants and long term leases » 5.6 yrs WALE * Acqui
Slide 4: APZ Total Return vs S&P/ASX Property Accumulation Index
APZ Total Return vs S&P/ASX 300 Property Accumulation Index 230.00 210.00 190.00 170.00 150.00 130.00 sjulog siseg 110.00 + go-Ayenuer + GO-J@qUI@AON + GQ-Jequieydas + g0-Aine ; GO-ABIN | GO-YoleW + So-AJenuer | ¥O-JOQUISAON + 7O-Jequia}des + vo-Ainr + po-AeW r vO-YoeW + po-Auenuer + £0-4@qUI@AON L
Slide 5: Financial Results Highlights
nancial.Res Highlights promt mortax [Sram Te RE | EPS 6.162cps_ ®# 42% | DPS 45cps of OB% | AUM —$5I7mM mf 72% | NTA $0.90 m 11% ~ Gearing 34% vY 44% Increased market capitalisation from $106 million to $203 million => $40 million placement at $1.025 completed 6 October 05 -» $22 million placement a
Slide 6: Distribution growth has been driven by
Distribution growth has been driven by » Acquisition of properties with attractive yields » Growth in the funds management business » Organic growth in rents HY0O6 DPS 4.5 cents was comprised » 100% distribution from Aspen Property Trust » Trust with 57% tax deferral FY06 DPS forecast of 10.5 cents
Slide 7: HY06 vs HY05 results
HY06 HYOS Change $ $ % Total Revenue 17.92 m 8.92 m + 101% NPAT 7.63m 3.01 m + 154% EPS 6.162 c 4.335 c* + 42% DPS 4.500 c 4.175 c* + 8% * Post consolidated basis Half Year Results 2006
Slide 8: Financial Position
Financial Position 31 Dec 05 30 Jun 05 Change $ $ %o Investment Properties 188.1m 201.5m +7% Other Assets 84.2 m 21.0m + 301% Total Assets 272.3 m 222.5 m + 22% Borrowings 117.14m 133.8m - 13% Other Liabilities 8.5m 5.3m + 60% Total Liabilities 125.6 m 139.1m +10% Net Assets 146.7 m 83.4 m + 76% NTA
Slide 9: Capital and Debt Structure
Capital and Debt Structure Capital Structure _ Substantial Securityholders Stapled Securities on Issue 166.3M UBS Global Asset Management Unlisted Options on Issue 3.8M (80.9378, $1.00, $1.25 Various Exercise dates} Deutche Asset Management Note: Capital consolidation November 2005 ~ 1 for 5 Challen
Slide 10: Investment Portfolio Highlights
Highlights Property » Blue Chip tenants across majority of properties » High occupancy rate across portfolio » Increased sector and geographic diversification » Opportunity identified to add further value Equity Holdings » Equity investments reflect cornerstone position in Aspen controlled funds » A
Slide 11: Current Portfolio Summary
ent-Portfolio Summary Location Sector Book Value Occupancy AG millions Property Investments Septimus Roe Square Perth, WA Office 30.2 94% Alcoa Office Complex Booragoon, WA Office 18.3 100% 564 St. Kilda Road Melbourne, VIC Office 25.1 92% 33 York Street Sydney, NSW Office 3.2 100% Elders Woolstores
Slide 12: Property Diversification
“Property Diversification Portfolio Sector Diversification December 2004 December 2005 Rerail 8% j Retail 19% Office 48% Office 43% Industrial 44% industrial 38% oy “ Ga Portfolio Geographic Diversification December 2004 December 2005 NSW 2% Qld 24% Vic 24% WA 52% 12 Half Year Results 2006
Slide 13: Current Portfolio Property Tenant Summary
1rent-Portfolio Property Tenant Summary Lease ‘% of Major Tenants Expiry income Elders 2012 25% KL 0 . Alcoa 2014 9% Hewlett Packard 2008 7% ALEO yan Acme Furniture 2012 5% Palazzo Distribution Services 2009 5% Lease Expiry Profile by Income Total 51% OY evn 31% 30% poe 20% 10% 0%» 2006 «2007 «2008
Slide 14: Septimus Roe Square and Alcoa Office Building
Septimus Roe Square ‘Address Building Area Tenants Occupancy Lease Terms Book Value Yieid Level 8, 256 Adelaide Terrace, Perth WA 16,883 sqm plus 126 car bays 38 tenants including Westpac, BankWest, Fujitsu, Mitchell Corp, lluka Resources, Surt Micro and Commonwealth Govt. 84% Variable $30.2 million
Slide 15: St Kilda Rd and 33 York Street
Ce Ee LEE EE LED E OE St. Kilda Rd Address: Building Area Tenants Occupancy Lease Terms Book Value Yield 564 St. Kilda Rd, Melbourne Vic 8,470.2 sqm plus 173 car parking bays Hewlett Packard 92% Average 3.5 years $25.1 mifion 9.1% 33 York Street, Sydney. Address Building Area Tenants Occupancy Lease
Slide 16: Property Portfolio: Office Update
Property Po Office Update Septimus Roe Square Strong Perth CBD office market and aggressive leasing has lifted occupancy to 94% Proposed forecourt re-development in 2006 adds to buildings appeal New leasing deals reflect circa 20% rental increases Alcoa Market review in progress St Kilda Rd Valuatio
Slide 17: Industrial properties
LLL Industrial Elders Woolstores Noble Park LLL Rocklea Address Spearwood WA {near Fremantle) Address 2415 Browns Rd, Noble Park, Melbourne Vic Address: 51-63 Heaton Rd, Rocklea, Brisbane Qid Building Area 100,800 sqm Building Area 42,747 sam plus 400 parking bays Building Area 14,555 sqm plus 150 c
Slide 18: Property Portfolio: Industrial Update
perty olio: Industrial Update Elders Woolstores Yield compression in WA industrial property market due to supply shortage Strong WA economy a positive Substantial increase in surrounding land values of both light industrial and residential Noble Park Expression of interest from existing tenant for f
Slide 19: Garden Town, Toowoomba
eee _ : Garden Town, Toowoomba Q Address Cnr Margaret & Victoria St, Toowoomba QLD Building Area 12.434sqm plus 750 car bays Tenants Super IGA Supermarket, two sub-major and multiple speciality tenancies Occupancy 94% Lease Terms Variable Book Value $36.6 million Yield 8.5% In early stages of review
Slide 20: Funds Management Overview
Overview »Aspen currently has 5 funds management activities » Aspen Parks Property Fund » Aspen Diversified Property Fund » Aspen Dunsborough Lakes Limited » Aspen Living Villages No.1 » Aspen Living Villages No.2 »Leverages Aspen’s core property management expertise »Provides investment opportuniti
Slide 21: se z A
se z A na ccc NNN 24 Half Year Results 2006
Slide 22: Overview and Strategy
Overview and Strategy Unlisted Property Fund — stapled security Established April 2004 Caravan Park Home Resorts: Asset class not readily available to investors Parks generally in excellent locations with potential for capital appreciation Potential to develop excess land and generate capital upside
Slide 23: Highlights
Highlights » AUM increased to $85 million well on track to reach 5 year objective of $150 million from June 2004 » Acquisition of 4 tourist parks during FY06 for $27.8 million » Provided investors with 10% income distribution in 2005, and 17.4% capital growth >» $33 million equity raised to date cir
Slide 24: Funds Management: Aspen Parks property locations
unds.Management™ Location of properties owned by Aspen Parks Cooke POINT BALMORAL PPsara ___ ISLAND GarTeway Monkey MIA DOLPHIN RESORT Bens Shai Man Coocee Beac [au WOODMAN POINT Tworoio BAy ™ Vannaby A Location of properties owned by Aspen Parks 24 Half Year Results 2006
Slide 25: Overview and Strategy
nag Overview and Strategy Launched April 2005 Leverages Aspen’s core commercial property expertise Target properties in the $5 — $30 million range (too large for individual investors but too small for LPTs, institutional investors) 8.75% yield — paid monthly Aspen to hold 20% cornerstone investment
Slide 26: Highlights
Highlights ra Recent acquisition of 4 properties for $102.7 million Trailcraft Industrial Complex, Henderson, WA Mount Street Office Building, North Sydney, NSW Holeproof Complex, Nunawading, Vic Homemaker Centre, Castle Hill, NSW Portfolio increased to 9 assets Key tenants - Pacific Brands (Holepro
Slide 27: Geographic Diversification
Geographic Diversification Asset State Asset Book Value Type Abernethy Park WA Office $11.0M Champion Drive WA Retail $8.4M Shopping Centre Riseley Corporate WA Office $7.8M Centre Midland Cinema WA Retail $6.6M Complex Cardno BSD Centre WA Office $5.4M Trailcraft WA _ Industrial $9.0M Mount Street
Slide 28: Overview and Strategy
Overview and Strategy » Aspen Dunsborough Lakes Ltd established to acquire the 230ha Dunsborough Lakes golf estate for $93.7M » Equity of $40M to be raised from institutional/sophisticated investors » Aspen will co-invest $8M and act as Project Manager » The scale and expected 12.5yr life of the pro
Slide 29: Busselton and Dunsborough on the south west cape of WA
“,.and Busselton (including Dunsborough) on the south west cape of WA epitomise ascendant new coastal cities” Bernard Salt, The Big Shift, 2004 29 Half Year Results 2006
Slide 30: Funds Management - Aspen Dunsborough Lakes Highlights
_.Funds.Manage' ent - Aspen Dunsboro, Highlights ca Anticipated revenue of c$392M over project life — estimated 1447 lots 187 titled lots available for immediate sale — circa revenue $50m greatly reduce project risks Established 18 hole championship golf course Forecast project profit of c$111M, wit
Slide 31: Funds Management - Living Villages Overview and Strategy
nagement = Living Villag Overview and Strategy » Launched June 2005 » Established to manage the development of residential accommodation villages » Utilises development land controlled by Aspen (eg Aspen Parks Property Fund) but will also acquire sites from third parties » Baby boomers who retire ea
Slide 32: Highlights
Highlights Aspen Living Villages Syndicate No. 1 » Commenced 30 June 2005 following the acquisition of 3 hectare parcel of land in Karratha, WA for $1.0 million from Aspen Parks Property Fund » Local authority approval pending Aspen Living Villages Syndicate No. 2 » Established September 2005 follow
Slide 33: Board of Directors and Management
Stuart Price Head of Property (Perth) Stuart Martin Head of Property (Sydney) Brendan Acott Project Manager Corey Johnson Asset/ Leasing Manager Reg Gillard Angelo Del Borrello Gavin Hawkins Andrew Martin Seng Fai Chan Terry Budge Phil Barker Corporate & Investor Services lan Lanser BDM — NSW/QLD/VI
Slide 34: National property group
» National property group » Well positioned to deliver sustainable growth - Continue to source new acquisitions across all markets and sectors at appropriate yields » Diversified income streams — investments and funds management - Organic growth and balance sheet strength from on balance sheet prope
Slide 35: 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 anything in it shall form the basis of