Aspen Group Limited · ASX:APZ
Aspen — H1 2025 Earnings Presentation
42 slides from Aspen's earnings presentation, Feb 20, 2025
Slide 1: Aspen Group HY25 Results Presentation
Aspen Group HY25 Results Presentation 20 February 2025 Opening More Doors 1
Slide 2: Contents
D> to Adelaide CB 25 Minutes Contents 1. HY25 Results 2. FY25 Outlook Appendix 1: Statutory Account Summary Appendix 2: Property Portfolio Construction of New Lifestyle Precinct at Highway 21
Slide 3: Aspen Group
Aspen Group Owner Proprietary approach maximising sustainable returns Specialist Provider of Quality Rental for Aspen securityholders – we own 100% of all our Accommodation on Competitive Terms properties and projects - no JV or Fund interests and conflicts to consider Operator Maximising profitabil
Slide 4: New Supply around Decade Low with Limited Solutions in Sight
New Supply around Decade Low with Limited Solutions in Sight National New Dwelling Commencements – Quarterly1 70,000 Average of 60k per Quarter 60,000 Need multi-storey apartments to fill the gap Government Completions Target - Total of 1.2m over 5 Years ~3x development timeframe and ~2x build cost
Slide 5: Apartments are Expensive to Produce v. Affordability and Market Price
Apartments are Expensive to Produce v. Affordability and Market Price Production Cost v. Average Apartment Price ($k) $1,000 Production Cost New Burleigh Heads (for sale) More productive building industry, faster $900 approvals and utility connections, real growth in Average Asking Price household i
Slide 6: HY25 Results Summary
1 HY25 Results Summary 6
Slide 7: Aspen Continues to Deliver ~20% ROE
Aspen Continues to Deliver ~20% ROE1 Audited Statutory Accounts Reflect Aspen Creates Material NAV in Addition to Total Value Creation Underlying Earnings / Cashflow APZ - Pre Tax Comprehensive Income per Security APZ - Underlying EPS2 and Increase in NAV3 $0.60 $0.60 $0.50 $0.50 $0.40 $0.40 $0.30 $
Slide 8: Continued Growth in Underlying Earnings, Distributions and NAV
Continued Growth in Underlying Earnings, Distributions and NAV Underlying EPS1 8.07 cents DPS 5.00 cents NAV2 $2.39 up 18% on HY24 up 18% on HY24 up 7% on 30 June 2024 Underlying EPS (cents) Net Asset Value per Security2 18 $3.00 16 $2.50 14 +18% per annum +20% per annum Guidance 12 $2.00 10 $1.50 8
Slide 9: Underlying Operating Earnings
Underlying Operating Earnings1 $m (unless otherwise stated) HY25 HY24 Change Rent Revenue2 $33.64 $30.14 12% Net Rental Income (NRI) $17.18 $15.17 13% Total annualised revenue has surpassed $100m NRI Margin (%) 51% 50% 1ppt Development Revenue $16.39 $11.96 37% NRI negatively impacted by ~$1m in the
Slide 10: Simplified Balance Sheet – Rentals and Development
Simplified Balance Sheet – Rentals and Development $m (unless stated) HY25 FY24 Change Quality and suitability of portfolio continues to improve Total Dwellings & Sites # 5,099 5,107 0% Rentals Recycling: Dwellings & Sites # 3,995 3,947 1% Sold 55m EGH shares, and 14 Burleigh Heads houses and 6 Pert
Slide 11: Balance Sheet Summary
Balance Sheet Summary $m (unless stated) HY25 FY24 Change Sold 55m EGH shares at a premium to cost and 30 June 2024 book value – residual stake of 55m shares Total Property and Inventory $593 $563 5% Eureka Group (EGH) Stake $34 $58 (42%) Balance sheet strengthened materially in the half: Net Financ
Slide 12: Aspen Living CoVE Maylands and other properties
Aspen Living CoVE Maylands Aspen Living CoVE Upper Mount Gravatt Aspen Lifestyle Sweetwater Grove Aspen Holidays Barlings Beach 12
Slide 13: Rentals – Attractive for Residents and Profitable for Securityholders
Rentals – Attractive for Residents and Profitable for Securityholders HY25 v Rental Pool up 7% x Average Net Rent up 6% = Total Net Rental Income up 13% HY24 Rental Pool Average Weekly Rent per Total Gross Rent and Net Rent Dwelling/Site 3,950 $328 $314 +4% $33.6 $30.1 $276 3,688 $24.8 $167 $17.2 $1
Slide 14: Rentals by Property Type
Rentals by Property Type HY25 Average Weekly Gross Rent1 Residential (dwellings) Lifestyle (land sites) Parks (mixture) Total Portfolio $373 $212 $342 $328 Underlying growth of >10% pa Positioned well in highest growth through development plus 3-4% pa markets – Perth, Brisbane and low Generally flat
Slide 15: Rentals Summary
Rentals Summary Residential (Dwellings) Lifestyle (Sites) Parks (Mixture) Total Portfolio HY25 HY24 Change HY25 HY24 Change HY25 HY24 Change HY25 HY24 Change # Dwellings/Sites 1,058 868 22% 691 610 13% 2,200 2,210 0% 3,950 3,688 7% (Period Average) Average Weekly Rent1 $373 $344 9% $212 $209 1% $342
Slide 16: Aspen Lifestyle Highway 1
Aspen Lifestyle Highway 1 16
Slide 17: Development – Metrics Improving
Development – Metrics Improving HY25 v Settled Sales up 14% x Profit per Sale up 47% = Total Development Profit up 68% HY24 Settled Sales (#) Average Sale Price & Profit ($k) Total Development Profit ($m) Skewing to More Profitable Lifestyle $470 + NAV uplift on newly 40 leased Lifestyle sites $1.18
Slide 18: Scaling Up Development while Remaining Highly Profitable
Scaling Up Development while Remaining Highly Profitable Development Asset and Returns $60 35% 30% $50 25% $40 20% $30 15% $20 10% $10 5% $0 0% FY21 FY22 FY23 FY24 HY25 Development Assets - $m ROIC (rhs) Profit Margin (rhs) 1. Development Assets is the average of opening and closing book value of al
Slide 19: Development Summary
Development Summary Lifestyle Residential Total HY25 HY24 Change HY25 HY24 Change HY25 HY24 Change # Settled Sales 30 20 50% 18 22 (18%) 48 42 14% Average Sale Price (inc. GST) $470k $427k 10% $218k $208k 5% $376k $313k 20% Total Revenue (ex. GST) $12.83m $7.80m 64% $3.56m $4.17m (15%) $16.39m $11.9
Slide 20: Profit Diversity Materially Reduces Risk
Profit Diversity Materially Reduces Risk NRI1 & Development Profit by Property Type ($m) NRI1 and Development Profit ($m) $25 $25 Aspen is underpinned by very solid Portfolio diversity has improved rental income streams materially over the past several years $8.2 Plenty of scope to increase and $5.5
Slide 21: New Acquisition - Aspen Living and Lifestyle Ravenswood WA
New Acquisition - Aspen Living and Lifestyle Ravenswood WA 21
Slide 22: New Acquisition – Land at Ravenswood WA
New Acquisition – Land at Ravenswood WA Attractive § 78km South of Perth with major freeways providing easy access, Lifestyle 10kms from the coastline and major town facilities in Mandurah Location § High proportion of retirees and relatively low household income Sierra Viveash Perth Apartments § Pe
Slide 23: Ravenswood Site and Current Residential ODP
Ravenswood Site and Current Residential ODP Everleigh Public Reserve Residential land subdivision ~500sqm lots ~$250k >60% complete Planned Public Wetland Reserve Aspen Living & Lifestyle Lakeside Ravenswood Fully developed traditional Retirement Village with 243 houses Only one house currently offe
Slide 24: Aspen Living and Lifestyle Ravenswood
Aspen Living and Lifestyle Ravenswood Historic Ravenswood Hotel Nearby 24
Slide 25: FY25 Outlook and Guidance Upgrade
2 FY25 Outlook and Guidance Upgrade 25
Slide 26: FY25 Outlook and Guidance Upgrade
FY25 Outlook and Guidance Upgrade Rentals FY25 Guidance § Net Rental Income (NRI) tracking slightly ahead of expectations despite the unexpected one-off disruptions in 1H Upgraded2 § Long stay occupancy and rental growth are expected to remain solid given low vacancy rates in (changes compared to FY
Slide 27: FY25 Outlook and Guidance Upgrade
FY25 Outlook and Guidance Upgrade Eureka stake (55m shares) - we assume it makes underlying EPS of 3.00 cents in FY251 - Eureka has provided guidance of 3.26 cents and has not yet reported its HY25 results FY25 Guidance Upgraded2 Net Interest Expense – a larger than usual portion of our interest rat
Slide 28: Appendix 1 Statutory Accounts Summary
Appendix 1 Statutory Accounts Summary 28
Slide 29: Statutory Profit and Underlying Operating Earnings
Statutory Profit and Underlying Operating Earnings HY25 HY24 HY25 HY24 Summary Change Rentals & Development Change $m $m $m $m Comprehensive income before deferred tax 42.47 33.58 26% Rentals Rental & ancillary services revenue 33.64 30.14 12% Revaluation of PP&E – Darwin FSR (0.15) (2.21) Direct pr
Slide 30: Reconciliation of Statutory Profit to Underlying Operating Earnings
Reconciliation of Statutory Profit to Underlying Operating Earnings HY25 HY24 $m $m Statutory Net Profit before deferred tax 42.32 31.37 Deferred tax (expense)/benefit recognised (11.15) (9.09) Underlying Operating Earnings is intended to approximate underlying Funds from Operations (FFO) on average
Slide 31: Summary Balance Sheet and Capital Management
Summary Balance Sheet and Capital Management 31 December 24 30 June 24 Key Metrics Change $m $m Total Assets 681.3 669.0 2% Conservative gearing of 21% - well below Aspen’s long-term target of 30-40% Net Debt 133.9 161.5 (17%) Net Asset Value (NAV) 457.4 433.7 5% Not all asset and property value is
Slide 32: Appendix 2 Property Portfolio
Appendix 2 Property Portfolio 32
Slide 33: Aspen is Helping Solve Australia's Housing Problems
Aspen is Helping Solve Australia’s Housing Problems Creating competitively priced housing through disciplined acquisition and development processes § upcycling older buildings which are often unlivable § building new homes at relatively low cost Indigenous Programs § working with local indigenous gr
Slide 34: Portfolio Summary
Portfolio Summary Total Dwellings/Sites – Location1 Operating v. Development2 Portfolio Aggregates Total Regional Rental Pool Dwellings/Sites # 3,995 Leased 29% Dwellings Leased Sites Dwellings (inc. under refurbishment) 1,892 37% 41% Land Sites 2,103 Metropolitan 71% Land Approved Development Pipel
Slide 35: Residential Overview
Residential Overview $m unless stated Residential Residential Rental Pool – Average # Dwellings HY25 FY24 Change 1,200 # Dwellings (close) 1,083 1,065 2% Rental Pool 1,059 1,065 -1% 1,000 1,058 Refurbishment Pipeline 24 0 n/a 800 868 Total Book Value $268 $261 3% 768 Per dwelling $247k $245k 1% 600
Slide 36: Residential Properties
Residential Properties Residential1 WA NSW QLD VIC SA Perth Perth House Lindfield Burleigh Total Apartment Viveash Cooks Hill Uniresort Burwood Normanville Portfolio Apartments Heads Residential Portfolio Newcastle Brisbane Gold Coast Melbourne Fleurieu Region Perth Metro Perth Metro Perth Metro Syd
Slide 37: Lifestyle Overview
Lifestyle Overview $m unless stated Lifestyle Lifestyle Rental Pool – Average # Sites HY25 FY24 Change 800 # Sites (close) 1,309 1,308 0% 700 Rental Pool 703 674 4% 691 600 610 Development Pipeline 606 634 -4% 500 517 Total Book Value $103 $92 12% 400 Per site $78k $70k 11% 300 WACR 6.1% 6.2% -10 bp
Slide 38: Lifestyle Properties
Lifestyle Properties Lifestyle NSW WA VIC SA Four Sweetwater Mandurah Wodonga Alexandrina Meadowbrooke Sierra Strathalbyn Total Lifestyle Lanterns Grove Gardens Gardens Cove Newcastle Albury- Region Sydney Metro South Coast South Coast Darling Range Fleurieu Fleurieu Region Wodonga Land Ownership Fr
Slide 39: Park Overview
Park Overview $m unless stated Park Communities Parks Rental Pool – Average # Dwellings HY25 FY24 Change 2,220 # Dwellings / Sites (close) 2,448 2,458 0% 2,210 2,210 Rental Pool 2,208 2,217 0% 2,200 2,200 Development Pipeline 240 241 0% 2,190 Total Book Value $189 $186 2% 2,180 Per dwelling/site $77
Slide 40: Park Properties
Park Properties Parks NSW SA NT WA Barlings Koala Tween Highway Adelaide Coorong Darwin Aspen Total Parks Beach Shores Waters One CP Quays FSR Karratha Adelaide Adelaide Region South Coast Central Coast South Coast Fleurieu Darwin Metro Pilbara Metro Metro Land Ownership Freehold Free/Leasehold Free
Slide 41: Residential Land Development
Residential Land Development Residential Land Development Inventory SA SA Total Residential Total Property Investment Property Mount Barker CQ Residential Land Development Portfolio Region Adelaide Hills Fleurieu Land Ownership Freehold Freehold Total Land Area (HA) 200 7.2 22.7 29.9 230 Rental Pool
Slide 42: Disclaimer
Disclaimer This presentation has been prepared by Aspen Group Limited on behalf of Aspen Group Limited and Aspen Property Trust (“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 s