Aspen Group Limited · ASX:APZ
Aspen — Shareholder Meeting (November 2005)
26 slides from Aspen's shareholder meeting presentation, Nov 28, 2005
Slide 1: 2005 AGM Presentation
Slide 2: Agenda
1. Aspen Group - Overview 2. Financial Overview 3. Property Portfolio Update 4. Funds Management Initiatives 5. Board of Directors and Management 6. Summary
Slide 3: Diversified property investment and management group
> Diversified property investment and management group > Stapled security structure > $200M diversified property portfolio (on-balance sheet) including a 19.9% equity stake in the Aspen Parks Property Fund & a 15% equity stake in the Aspen Diversified Property Fund > Strong track record of earnings
Slide 4: Stapled / Aspen Parks
Stapled Aspen Parks
Slide 5: National property group
National property group Deliver sustainable growth to Securityholders Continue to source new acquisitions across all markets and sectors at attractive yields Organic growth and balance sheet strength from on-balance sheet property assets » Funds management business identified as important source of
Slide 6: Property portfolio book values and key tenants
_ Book Value 7 pnillio’ » Blue Chip tenants 42.8 100% » Acquisition of Garden Town adds to Elders Woolstores number of tenants Septimus Roe Square 30.2 90% St Kilda Road 25.1 94% » Secure lease expiry profile and WALE noble Park 22.3 100% > High occupancy across portfolio Alcoa Office Building 18.3
Slide 7: DPU and EPU History
==)pU'and EPU History Distribution growth has been driven by » Acquisition of properties with attractive yields » Growth in the funds management business » Organic growth in rents FY05 DPU 1.67 cents was comprised » 100% distribution from Aspen » Trust with 57% tax deferral FY06 DPU forecast of 1.8
Slide 8: Portfolio Sector Diversification
Portfolio Sector Diversification 2004 iby value) Retail 13% Industrial 40% Industrial 38% Retail 19% Office 49% Office 41% 2004 Portfolio Geographic Diversification 2005 iby value) WA 49% VIC 25% WA 100% NSW 2% QLD 24%
Slide 9: 2005 Financial Year
2005 Financial Year > > Net Profit inc 84% to $7.45m Distribution rate inc 15.2% from 1.45 cents to 1.67 cents Total assets under management inc from $104m to $300m Aspen Parks raised $25.5m Aspen Parks AUM inc to $57m Launched Aspen Diversified Fund — settled assets totalling $24m Creation of Aspen
Slide 10: Financial Position - June 2005
“Financial Position — 30 Junie’65: Investment Properties 202.5m 98.8m +105% Other Assets 20.9m 4.9m +326% Total Assets 223.4m 403.7m +115% Borrowings 133.9m 65.1m +106% Other Liabilities 5.2m 2.7m + 93% Total Liabilities 139.1m 67.8m +105% Net Assets 84.3m 35.9m +135% NTA 16.2c 14.0c +16% Gearing 59
Slide 11: Financial Performance Overview
Overvie I Performance FYOS FyO4 Change § $ % Property Income 16.48 m 11.73m + 40% Property Expenses (3.68 m)} (2.55m ) + 44% Funds Management Income 3.98m 0.93m + 328% Other Income 0.68m 0.35m + 94% Net Total Income 17.46m 10.46 m + 67% Interest Expense 6.32m 450m + 140% Funds Management Commission
Slide 12: 2006 Highlights So Far
2006 Highlights So Far oe Forecast DPS inc from 1.67 cents (2005A) to 1.80 cents (2006F) Capital raising of $40 million at 20.5 cents completed 6 October 2005 Acquisition of 4 tourist parks for the Aspen Parks Property Fund totaling $27.5m » Monkey Mia Dolphin Resort » The Shalimar, North Tuncurry »
Slide 13: Capital Structure
a se Capitalan Capital Structure Stapled Securities on Issue Unlisted Options on Issue {18.75c, 20c, 25c Various Exercise dates) 723.2M 19.7M Debt Profile Existing Fixed Floating Total Borrowings $94 m Substantial Securityholders Core Debt $81m 100% - UBS Global Asset Management (at 40% gearing) a g
Slide 14: Septimus Roe Square / Alcoa Office Building
_... Septimus Roe Square ‘Address Building Area Tenanis Occupancy Lease Terms Book Value Yield Level 8, 256 Adelaide Terrace, Perth WA 16,883 sqm plus 126 car bays 38 tenants including Westpac, BankWest, Fujitsu, Mitchell Corp, lluka Resources, Sun Micro and Commonwealth Govt. 80% Variable $30.2 mil
Slide 15: Elders Woolstores / Noble Park
Elders Woolstores yecasomsesiasy LLL Address, Buiding Area ASHP Sreases Occupancy Lease Terms Book Value Yield Speanwood WA {near Fremantie} 100,800 sqm Elders Limited (subsidiary of Futuris Limited} Annual 4.25% increases 100% 45 years from July 1997 $42.8 million 8.5% Note: Yield is current net in
Slide 16: Rocklea / St. Kilda Rd
Rocklea LLL ‘Address 51-63 Heaton Ra, Rocklea, Brisbane Qld Building Area 14,585 sqm plus 150 car bays Tenants Acme Fine Furniture Occupancy 100% Lease Terms 8 years from settlement Book Value $9.5 million Yield 2.4% Note: Yield is current net income divided by book value 16 St. Kilda Rd LLL EEE ‘Ad
Slide 17: Garden Town, Toowoomba / 33 York Street, Sydney
Garden Town, Toowoomba ‘Address Building Area Tenants Occupancy Lease Terms Book Value Yield Cnr Margaret & Victoria St, Toowoomba QLD 12.434sqm plus 750 car bays Super IGA Supermarket, two sub-major and multiple speciality tenancies 96% Variable $36.6 million 8.5% Z 43 York Street, Sydney Address B
Slide 18: Property portfolio by location and sector
Location Sector Book Value Property AS millions Occupancy Septimus Roe Square Perth, WA Office 30.2 91% Alcoa Office Complex Booragoon, WA Office 184 100% Elders Woolstores Spearwood, WA Industrial 42.8 100% Noble Park Melbourne, VIC Industrial 22.3 100% Rocklea Brisbane, QLD Industrial 95 100% 564
Slide 19: Aspen funds management activities
»Aspen currently has 3 funds management activities » Aspen Parks Property Fund » Aspen Diversified Property Fund » Aspen Living Villages »Leverages Aspen’s core property management expertise »Provides investment opportunities not readily available to investors »Important source of EPS/DPS growth wit
Slide 20: Aspen Parks Property Fund
Aspen Parks Property Fund fanagemen Background Unlisted Property Fund — stapled security Established April 2004 Caravan Park Home Resorts: Asset class not readily available to investors Aspen holds ~19.9% of the fund Current AUM of $85 million with 5 year objective of $150 million AUM from commencem
Slide 21: Funds-Management Initiative: Aspen Parks
4. Funds-Management Initiative Highlights Location of properties owned by Aspen Parks » Fragmented industry providing asset growth potential; Aspen growing the fund through Coore Pont acquisition Casi Evoury Care | Cee eS | » Parks generally in excellent locations with potential for capital apprecia
Slide 22: Aspen Diversified Property Fund
Aspen Diversified Property Fund Background: » Launched March 2005 » Leverages Aspen’s core property expertise » Target properties are too large for private investors and DIY Superannuation but too small for LPTs » AUM $80 million » Aspen holds 15% comprising 6 properties (2 retail, 2 industrial, 3 o
Slide 23: Aspen Living Villages
Aspen Living Villages Background: » 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 early, minin
Slide 24: Aspen Living Villages Syndicates No. 1 and No. 2
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 following the ac
Slide 25: Board of Directors and Management
lanag Board of Directors Reg Gillard Non-executive Chairman Angelo | Del Borrello Managing Director Gavin Hawkins irector Finance Andrew Mai in Non- executive Director Seng Fai Chan Non- executive D ector Terry Budge Non-executive Director Management Team Stuart Price Head of Property St rart M: Mar
Slide 26: 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 » Organic growth and balance sheet strength from on balance sheet property assets >» Growth from new funds