Aspen Group Limited · ASX:APZ
Aspen — Investor Presentation (September 2005)
22 slides from Aspen's investor presentation, Sep 30, 2005
Slide 1: Capital Raising
Capital Raising September 2005 TI eae
Slide 2: Important notice and disclaimer
This presentation has been prepared by Aspen Group (“Aspen”) in connection with a proposed offer of stapled securities in Aspen. This presentation and its contents have been distributed in confidence and may not be reproduced or disclosed to any other person. By retaining this presentation you warra
Slide 3: Introduction
Introduction Overview of Aspen Group Aspen Diversified Property Fund Aspen Parks Property Fund Aspen Living Village Capital Raising Timetable Reasons to Invest PATERSONS AO
Slide 4: Introduction
1. Introduct » $40M institutional placement « Fully underwritten by Patersons Securities « Funds will be used to: ~ Fund growth of Aspen's Funds Management business ahead of retail syndication ~ Reduce gearing from 58% to 44% « Upon completion of the offer and transactions, Aspen will have: ~ $188M
Slide 5: Aspen Group Overview
2. Aspen.Group~ Overview « Portfolio of diversified * Funds management = Co-invests in funds property assets guision established in April - Strategic stakes « Property assets . characterised by strong » 3 funds ~ Investor confidence income security through ~ Accretive returns high quality tenants an
Slide 6: Current property portfolio of $188M
Current property portfolio of $188M Strong tenancy profile: ~ Major tenants include Elders, Hewlett Packard, Alcoa — Weighted average lease expiry 6.2 years ~ Average occupancy rate of 98% Property income represented 78% of total group income in FY05 ~ Funds management represented balance Targeted i
Slide 7: Funds Management Overview
inds. Management = Overvi Since April 2004, Aspen has established 3 funds ~ Aspen Parks Property Fund ~ Aspen Diversified Property Fund ~ Aspen Living Village GAUM have grown to $106M with a further $44M under contract Targeting significant growth in FY06 ~ $41M in Aspen Parks ($26M contracted to 29
Slide 8: Aspen Parks Property Fund Background
Background Established in 2004 to invest in caravan parks Offers investors access to an asset class that is not readily available GAUM of $57 million as at 1 September 05 High growth market sector: ~- “grey nomads” - permanent living —- mining sector In FY05 investors received a total return of 274%
Slide 9: Current Activities
Current Activities Exchanged contracts on two new acquisitions: ~ 50% of Monkey Mia (Shark Bay, WA) for $8.0M - Yarraby (Echuca, VIC) for $9.25M » Agreed terms on two further acquisitions: ~ Wallamba (Foster, NSW) for $4.2M - Shalimar (Foster, NSW) for $4.7M* « Aspen to increase equity interest in f
Slide 10: Monkey Mia Dolphin Resort and Yarraby
Monkey Mia Dolphin Resort Yarraby Location Shark Bay, WA Location Echuca, VIC Land area 9.0ha Land area 9.43ha Tenure 99 year lease Tenure Freehold Purchase price (50%) $8.0M Purchase price $9.25M Initial yield 10.5% Initial yield 9.1% Licensed bays 236 Licensed sites 270 Airport included with land
Slide 11: Shalimar and Wallamba
Shalimar Wallamba Location North Tuncurry, NSW Location North Tuncurry, NSW Land area 11.026ha Land area 4.0ha Tenure Freehold Tenure Freehold Purchase price $4.7M Purchase price $4.2M Initial yield 10.0% Initial yield 8.0% Licensed sites 196 Licensed sites 76 Spare land to develop 4.047ha Adjacent
Slide 12: Outlook
Outlook Acquired $26M of parks in FY06 to date and expanded geographic diversification into NSW Forecasting an additional $15M in new acquisitions in the second half of FY06 ~ New acquisitions to be debt funded Aspen anticipates a new PDS offer in early FY07 unless significant acquisition opportunit
Slide 13: Aspen Diversified Property Fund Background
Background Launched in April 2005 with the acquisition of $36M of property ~ Subsequently acquired $8.4M property Target property in $5 - $30M range ~ Typically overlooked by larger institutional investors and LPTs whilst too large for individual investors Objective to grow GAUM to $250M within 5 ye
Slide 14: Current activities
Current activities Aspen has exchanged contracts to acquire a $17.45M property in Moorabbin, VIC Contract is subject to lessee not exercising first right of refusal to acquire property on or before 30 September 2005 Moorabbin is a modern industrial complex comprising three separate buildings Occupie
Slide 15: Outlook
Outlook Forecasting $70M of acquisitions in FY06: ~ $22.2M acquired/settled since 1 July ~ $18.5M Moorabbin acquisition ~ $30.0M additional acquisitions forecast Retail inflows currently averaging $2M per month Recruitment of BDM to enhance retail inflows 15 Aspen. Diversified’ Property. Fu: New Acq
Slide 16: Aspen Living Village Background
Background Launched in June 2005 with the establishment of Aspen Living Village No.1 Fund ~ Acquisition of 3 hectare parcel of land in Karratha for $1.0M from Aspen Parks Property Fund Established to manage the development of residential accommodation villages for early retirees and the mining indus
Slide 17: Capital Raising Details
Capital. Raising = Details Placement of 195.1M stapled securities via an institutional placement at $0.205 to raise $40M Fully underwritten by Patersons Securities Offer priced at $0.205: ~ Directors have recently acquired 3.85M securities at $0.205 ~ 8.8% annualised yield compares favourably with p
Slide 18: Placement proceeds to be used as follows
Placement proceeds to be used as follows: ~ $2.3M equity investment in Parks fund ~ $2.8M equity investment in Diversified fund ~ $15.5M underwriting loan to Parks and Diversified ~ Balance to reduce gearing to 44% $9.1M underwriting loan to Parks Fund to remain outstanding until new PDS issued $6.4
Slide 19: Funding the growth of funds management business
« Aspen funding the growth of its funds management business via underwriting loan provides strong returns for its securityholders FY06 Average Capital Employed $15.5M Net Acquisition Fees $3.8M Management Fees $2.2M Interest Income $1.4M Total Income $7.4M 47.7% 23.2% Return on Capital Employed ROCE
Slide 20: Capital Management
Capital M 25M options likely to expire in October 05 Capital Structure Stapled Securities on Issue 719.8M Intention to maintain a fully hedged core Listed Options on Issue (25¢, Oct 05) 24.9M gearing position of c.40% Unlisted Options on Issue 19.7M (18.75c, 20c, 25¢ Various Exercise dates) Preferre
Slide 21: Timetable
Trading Halt 10AM Wednesday, 28 September 2005 Expressions of interest to be received 4PM Wednesday, 28 September 2005 Offer letters distributed 6PM Wednesday, 28 September 2005 Offer acceptances to be returned 9AM Thursday, 29 September 2005 Settlement instructions required 4PM Thursday, 29 Septemb
Slide 22: Reasons to Invest
8...Reasons:to-Invest 1. 8.8% yield which compares favourably to peer group 2. Strong track record of growth in EPS and DPS 3. Significant increase in fund management activities ~ Acquisitions for Parks and Diversified funds for FYO6 ahead of expectations ~ Increased funds management income from new