Aspen Group Limited · ASX:APZ
Aspen — H1 FY2020 Earnings Presentation
30 slides from Aspen's earnings presentation, Feb 21, 2020
Slide 1: Aspen Group Investor Update - First Half FY20
For personal use only ASPEN GROUP Investor Update - First Half FY20 February 2020 BIG4 Koala Shores Holiday Park, NSW
Slide 2: Contents
Residents at Four Lanterns Estate, NSW Contents For personal use only 1 1H FY20 Financial Highlights & Results 2 Operations & Development 3 Portfolio 4 Managed Funds 5 Statutory Accounts Extract Sweet Water Grove – marketing campaign, NSW
Slide 3: 1H FY20 Financial Highlights and Results
For personal use only 1 1H FY20 Financial Highlights and Results BIG4 Koala Shores Holiday Park, NSW 3
Slide 4: Aspen Highlights – 1H FY20
Aspen Highlights – 1H FY20 1.1 Aspen has been transformed: For personal use only ▪ Taking advantage of the full range of opportunities to provide competitively priced accommodation in Australia’s $7 trillion residential, retirement and short stay sectors – this has increased growth potential and imp
Slide 5: Aspen Highlights – 1H FY20 (NAV and guidance)
Aspen Highlights – 1H FY20 1.2 Net Asset Value (NAV): For personal use only ▪ NAV up slightly to $1.14 per security due mainly to retained earnings – no properties were externally revalued in the half ▪ In our opinion, the portfolio is very attractively priced and positions us well to provide compet
Slide 6: Underlying Operating Profit – 1HFY20 v 1HFY19
Underlying Operating Profit – 1HFY20 v 1HFY19 1.3 For personal use only $15.13m $6.36m $0.41m $6.78m +11% +11% vs. $0 +20% Total Operating Property Net Operating and Operating Income Development Profit Revenue Development Net Income $2.42m $4.36m $3.66m $0.71m -15% +55% +55% +60% Net Corporate EBITD
Slide 7: Financial Performance
Financial Performance 1.4 1H FY20 1H FY19 For personal use only Key Metrics Change $m $m Statutory profit 2.29 0.55 319% Operating revenue 15.13 13.64 11% ▪ Operating revenue - Darwin FreeSpirit Resort Operating expenses (8.77) (7.90) underperformed budget by c.$500k as we had to Net Operating Incom
Slide 8: Reconciliation of Statutory Profit to Underlying Earnings
Reconciliation of Statutory Profit to Underlying Earnings 1.5 For personal use only 1H FY20 1H FY19 $m $m Statutory net profit 2.29 0.55 Depreciation and amortisation Depreciation and amortisation 1.34 1.09 ▪ Under IFRS, PP&E is depreciated through P&L, whereas Investment Property is not Asset reval
Slide 9: Balance Sheet and Capital Management
Balance Sheet and Capital Management 1.6 ▪ Property Assets increased by 25% - acquisition of Lindfield Key Metrics 1H FY20 FY 2019 For personal use only Apartments and Perth Residential Portfolio ▪ Debt facility: Property Assets $m 159.7 128.1 o limit increased to $71 million (plus $20m Total Assets
Slide 10: Earnings & Distribution Guidance – FY20
Earnings & Distribution Guidance – FY20 1.7 Total FY20 Guidance remains unchanged – some changes Updated FY20 to components: Underlying Earnings Guidance $m For personal use only ▪ Underlying Earnings per security expected to be in the Property net operating income 12.2 range of 6.75-7.00 cents - an
Slide 11: Operations and Development
BIG4 Merimbula Tween Waters Holiday Park, NSW For personal use only ACP Adelaide Caravan Park, SA 2 Operations and Development 11
Slide 12: Portfolio Evolution
Portfolio Evolution 2.1 No. of Approved Sites For personal use only CAGR ~30% over the last 4 years 2,500 Lindfield Apartments Highway 1 Perth Residential 2,000 Koala Shores Darwin FSR 1,500 AKV 4 Lanterns Barlings Mandurah Beach Tween Tomago Waters 1,000 ACP 2,183 500 774 0 1H FY16 1H FY17 1H FY18
Slide 13: Property NOI – 1HFY20 v 1HFY19
Property NOI – 1HFY20 v 1HFY19 2.2 Rentals Land Lease Mixed Parks Short Stay Corporate For personal use only Perth Four Barlings Tween Residential Lanterns Beach Waters AKV New +6% +47% +57% +3% Lindfield Highway Koala Mandurah Apartments One Shores Gardens +35% to New +42% +8% Budget Adelaide Tomag
Slide 14: Operational Performance and Opportunities
Operational Performance and Opportunities 2.3 Four Lanterns Lindfield Apartments Tomago Village Koala Shores Barlings Beach Tween Waters For personal use only • NOI up 6% on 1H19 • Acquired 20 August • NOI down 14% on • NOI up 42% on 1H19 • NOI up 47% on 1H19 • NOI up 57% on 1H19 with increased rate
Slide 15: Operational Performance and Opportunities
Operational Performance and Opportunities 2.4 Adelaide CP Highway One Mandurah Gardens AKV Perth Residential Darwin Freespirit For personal use only Portfolio • NOI down 3% on • NOI above budget • NOI up 8% on 1H19 • NOI up 2% on 1H19 • Acquired in late • NOI 50% below 1H19 1H19 with slightly (prope
Slide 16: Development Activity
Development Activity 2.5 Aspen currently generates earnings relating to development Development Activity For personal use only through: Aspen Group + MHC Funds ▪ Developing and selling manufactured houses under a land $7.00 30 lease model (profit of $414k in 1HFY20 from Four Lanterns) $6.00 25 ▪ Ear
Slide 17: Portfolio
For personal use only Four Lanterns Estate, Leppington NSW 3 Portfolio Mandurah Gardens Estate, WA 17
Slide 18: Portfolio Summary
Portfolio Summary 3.1 Portfolio Aggregates ▪ Aspen currently has 13 properties valued at approximately $160m: For personal use only o Average value of $73k per approved site Properties / Portfolios* 13 o WACR of 8.17% Land Area (Hectares) 61 ▪ Aspen also manages 3 major residential / retirement proj
Slide 19: Portfolio Summary
Portfolio Summary 3.2 Land Area Land Area WA Sites NT (Hectares) Sites (Hectares) For personal use only 9 Mandurah 6.8 158 12 Darwin FreeSpirit 10.8 467 Property Type by Location 10 Karratha Village 2.9 180 (value weighted) 11 Perth Residential 3.4 84 12 59% 41% 10 Regional Metropolitan Land Area NS
Slide 20: Aspen Group: Portfolio Summary – December 2019
Aspen Group: Portfolio Summary – 31 December 2019 3.3 New South Wales South Australia WA NT For personal use only Four Lindfield Lindfield Tomago Koala Barlings Tween Adelaide Highway Mandurah Perth Darwin AKV Lanterns Kiah Kalinda Village Shores Beach Waters CP One Gardens Residential FSR Sydney Sy
Slide 21: Portfolio Summary – December 2019
Portfolio Summary – 31 December 2019 3.4 ▪ Aspen’s portfolio composition and income streams have improved Property Type by Lease Tenure For personal use only materially over the past 12-18 months (value weighted) o Increased weighting to: - Metropolitan locations - More stable, less seasonal rental
Slide 22: Portfolio Summary – December 2019
Portfolio Summary – 31 December 2019 3.5 Approved Sites Value per Approved Site ($k) For personal use only 500 300 450 400 250 350 300 200 250 200 150 150 100 100 50 50 0 0 Land Sites Sites with Aspen-owned Dwellings Value per Hectare ($m) Valuation Cap Rate 35 16% 30 14% 25 12% 10% 20 8% 15 6% 10 4
Slide 23: Managed Funds
For personal use only Coorong Quays Alexandrina Cove Lifestyle Village, SA 4 Managed Funds Coorong Quays, SA 23
Slide 24: Funds Managed by Aspen
Funds Managed by Aspen 4.1 Coorong Quays For personal use only ▪ Operating business performing above FY20 budget ▪ Marina berth occupancy up 6% in 1H FY20 ▪ Continued good land sales activity – 18 lots in 1H FY20 ▪ Completed construction of the new Coorong Quays Club facility – a community facility
Slide 25: Statutory Accounts Extracts
For personal use only 5 Aspen Group Statutory Accounts Extracts 16 Treatts Rd, Residence Lindfield Design Image:Apartments, NSW Redevelopment, NSW Tomago Village 25
Slide 26: Statutory Accounts Extract: Statement of Profit and Loss
Statutory Accounts Extract: Statement of Profit and Loss 5.1 Consolidated 31 December 31 December For personal use only 2019 2018 $’000 $’000 Continuing operations Revenue 16,640 13,658 Cost of sales (9,656) (7,925) Gross profit 6,98412,011 5,733 Expenses and other items (7,662) Administration expen
Slide 27: Statutory Accounts Extract: Statement of Financial Position
Statutory Accounts Extract: Statement of Financial Position 5.2 Consolidated 31 December 2019 30 June 2019 $'000 $'000 For personal use only Assets Current assets Cash and cash equivalents 3,989 6,466 Trade and other receivables 3,961 3,913 Inventories 1,799 2,760 Net Investment in sublease 1,044 -
Slide 28: Statutory Accounts Extract: Cash Flow Statement
Statutory Accounts Extract: Cash Flow Statement 5.3 Consolidated 31 December 2019 31 December 2018 For personal use only Notes $’000 $’000 Cash flows from operating activities Receipts from customers (inclusive of GST) 18,954 14,785 Payments to suppliers and employees (Inclusive of GST) (14,597) (14
Slide 29: Statutory Accounts Extract: Segment Information
Statutory Accounts Extract: Segment Information 5.4 For personal use only Residential / Retirement / Corporate Non-core Other Consolidated Short Stay 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 31 Dec 2019 31 Dec 2018 $’000 $’000 $’000 $’000 $’000
Slide 30: 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