Aspen Group Limited · ASX:APZ
Aspen — Shareholder Meeting (November 2008)
24 slides from Aspen's shareholder meeting presentation, Nov 21, 2008
Slide 1: Chairman's Address to Annual General Meeting
Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767 Level 8, Septimus Roe Square 256 Adelaide Terrace, Perth Western Australia, 6000 Telephone: 08 9220 8400 Facsimile: 08 9220 8401 For personal use only Email: homemail@aspengroup.com.au ASX ANNOUNCEMENT 20 NOVEMBER 2008 CHAI
Slide 2: Chairman's Address: Board response to market conditions
A price/earnings ratio of approximately 3 and a share price at a discount of approximately 65% to Net Tangible Assets demonstrates that the market pendulum has now swung too far and is being led solely by market fear. How long this malaise will continue is unknown but perhaps one previously unsung v
Slide 3: Contact details and About Aspen Group
For further information please contact: Angelo Del Borrello John McGlue Managing Director, Aspen Group FD Third Person Phone: (08) 9220 8400 Phone: (08) 9386 1233 For personal use only Mobile: 0419 335 411 Mobile: 0417 926 915 Or visit www.aspengroup.com.au About Aspen Group Aspen Group is an ASX li
Slide 4: 2008 Annual General Meeting Presentation
For personal use only Aspen Group 2008 Annual General Meeting Presentation “Creating wealth through intelligent property investment” 1 AGM Presentation November 2008
Slide 5: Corporate Structure
Aspen Group Corporate Structure For personal use only Investment Funds Equity Property Management Investments • 12 Properties • 7 Divisions • 8 Investments Assets Managed • $412M • $1,099M • $82M • Portfolio of diversified • Driving DPU and EPU Growth • Co-invests in funds property assets - Strategi
Slide 6: Contents
Contents For personal use only 1. 2008 Results Summary 2. State of the Market 3. Aspen Group Update 4. Outlook 3 AGM Presentation November 2008
Slide 7: 2008 Results Summary: Consistent Track Record
1. 2008 Results Summary Consistent Track Record For personal use only Five year Cumulative Annual Growth Rate EPS 18.1% DPS 22.6% 44 AGM AGMPresentation PresentationNovember November2008 2008
Slide 8: 2008 Results Summary: Highlights
1. 2008 Results Summary Highlights For personal use only ¾ Continued strong track record of underlying EPS and DPS growth ¾ Distributions continued to be paid from underlying earnings ¾ Strong property portfolio performance ¾ St Kilda Rd building secured a 10 year lease with L’Oreal for circa 50% of
Slide 9: Key Results Summary
1. 2008 Results Summary Key Results Summary For personal use only FY08 FY07 Change % Underlying Operating Revenue $76.9m $60.0m 28% Profit from Underlying Earnings after tax $43.8m $33.5m 31% Underlying Earnings per Security 17.01 cents 15.62 cents 9% Distribution per Security 15.50 cents 12.75 cent
Slide 10: Contents
Contents For personal use only 1. 2008 Results Summary 2. State of the Market 3. Aspen Group Update 4. Outlook 7 AGM Presentation November 2008
Slide 11: State of the Market: Key Factors
2. State of the Market Key Factors For personal use only Concerns ¾ General sentiment in the listed property sector ¾ Lack of liquidity and changed asset allocations (movement to cash) has severely restricted buyers in the market ¾ Tight credit conditions have put downward pressure on property value
Slide 12: State of the Market: Outlook
2. State of the Market Outlook For personal use only ¾ The recent 200 bps interest rate reduction and projected further falls should have a positive impact on demand for property ¾ Expect availability of debt to remain tight in the short term ¾ Deteriorating economic conditions may flow through to s
Slide 13: Contents
Contents For personal use only 1. 2008 Results Summary 2. State of the Market 3. Aspen Group Update 4. Outlook 10 AGM Presentation November 2008
Slide 14: FY09 Year to Date
3. Aspen Group Update FY09 Year to Date For personal use only ¾ Karratha Village on track to complete ahead of schedule (Dec 08) and on budget ¾ Alcoa office building partially re-leased to State Government tenant adding upside to book value ¾ Lower interest rates will benefit the Group’s variable r
Slide 15: FY09 Full Year Earnings Outlook
3. Aspen Group Update FY09 Full Year Earnings Outlook For personal use only Key factors driving FY09 result: 1. Earnings breakdown: ¾ 75% earnings from rental income and recurring management fees ¾ 21% from transactional based management fees (i.e. ADF No1 fund and Aspen Living funds) ¾ 4% from acqu
Slide 16: Debt Structure - Aspen Property Trust
3. Aspen Group Update Debt Structure - Aspen Property Trust For personal use only Debt Profile (31 October 2008) Gearing 36% Percentage Hedged 53% Average Hedge Maturity Profile 2.2 yrs Weighted average cost of funds 6.96% Senior Debt Facility Expiry Oct 2011 Look-through gearing 43% Net interest co
Slide 17: Rental Growth Outlook
3. Aspen Group Update Rental Growth Outlook For personal use only 45 23% 40 ¾ Capitalise on exposure to strong Perth and 35 8% Adelaide CBD office markets which have 30 experienced record low vacancy rates $ Millions 25 20 ¾ Karratha Village rental income commences secured by long term lease to Wood
Slide 18: Investment Property Valuations
3. Aspen Group Update Investment Property Valuations For personal use only ¾ Market evidence (based on limited “fire sale” transactions) suggests cap rates have further softened since June 2008 ¾ As outlined in our 2008 results presentation, the Group’s properties are well placed to absorb this soft
Slide 19: Funds Management
3. Aspen Group Update Funds Management For personal use only Aspen Aspen Aspen Aspen Aspen Aspen Branding Parks Diversified Living Developments Villages Communities Tourism and Core Income Residential Development Fund Modular Affordable Retirement Sector Accommodation Estates Series Accommodation Ag
Slide 20: Funds Management
3. Aspen Group Update Funds Management For personal use only Maturing division as indicated by higher asset management income in FY08 17 AGM Presentation November 2008
Slide 21: Contents
Contents For personal use only 1. 2008 Results Summary 2. State of the Market 3. Aspen Group Update 4. Outlook 18 AGM Presentation November 2008
Slide 22: Outlook: Strength in the Business Model
4. Outlook Strength in the Business Model For personal use only Current Market Issues Aspen Position Debt Facilities / Gearing ¾ Gearing at 36% within Aspen’s target range with scope to reduce ¾ Senior facility expiry October 2011 ¾ 53% hedged and average swap term 2.2 years Distribution payments fr
Slide 23: Outlook: Why Aspen?
4. Outlook Why Aspen? For personal use only There will be winners and losers from the changed landscape, so why is Aspen well placed to prosper? ¾ Growing rental income stream from property portfolio (not reliant on asset disposals) ¾ Current NTA of $1.34 ¾ 85% of property portfolio located in growt
Slide 24: 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