Aspen Group Limited · ASX:APZ
Aspen — Shareholder Meeting (November 2023)
12 slides from Aspen's shareholder meeting presentation, Nov 22, 2023
Slide 1: Aspen Group Annual General Meeting
Aspen Group Annual General Meeting 22 November 2023 Coorong Quays and Alexandrina Cove Lifestyle Village
Slide 2: Aspen’s Business Model and Platform
Aspen’s Business Model and Platform Portfolio Optimisation Disciplined acquisitions highly suited to our core customer base Repositioning out of properties with higher rent / price points Measured balance of rent (80%) and development profit (20%) Mission Provide Quality Accommodation on Operations
Slide 3: Residential Markets to Remain Undersupplied over the Medium Term
Residential Markets to Remain Undersupplied over the Medium Term National Vacancy Rate3 Severe (and worsening) Housing Shortages for Aspen’s Core Customer Base q Population growth currently >2% pa1 3.5% Proportion of Rentals Offered at <$400pw4 q New dwelling approvals down 14% past 3.0% 60% year2 2
Slide 4: Aspen’s Performance
Aspen’s Performance Earnings and Distributions per Security (cents) Net Asset Value per Security 12.50 $2.10 $1.90 10.50 21% per annum $1.70 8.50 20% per annum $1.50 6.50 $1.30 4.50 $1.10 $0.90 2.50 $0.70 0.50 FY20 FY21 FY22 FY23 $0.50 Underlying Operating Earnings Distributions FY20 FY21 FY22 FY23
Slide 5: CoVE Cooks Hill, Newcastle NSW
CoVE Cooks Hill, Newcastle NSW All 50 apartments leased within 12 weeks... 5
Slide 6: CoVE Maylands, Perth WA
CoVE Maylands, Perth WA Strong leasing enquiry prior to completion... Rendered furniture 6
Slide 7: Operations
Operations Residential1 Lifestyle Parks Diverse mix of “permanent” Current Commonwealth Rent tenants through to shorter stay Est. Average Market Rent2 Assistance Cap3 tourists and workers $380pw $232pw Dynamic Yield Management (rate v. lease term v. occupancy) +10% Current Average In-place Rent 25%
Slide 8: Development
Development Development Sales1 - # Development Sales1 and Pipeline - # 100 1,400 90 Pipeline >10x Current Sales Rate 1,200 c.30% profit margin FY24 YTD - 80 alre ady achieved c.20% ROIC 73% of FY23 1,000 70 Result Plent y of runway for profitable 60 growth... 800 50 600 40 30 400 20 200 10 0 0 FY19
Slide 9: Income and Value Creation - Residential Build to Rent Projects
Income and Value Creation - Residential Build to Rent Projects Strata titling $900,000 15% under way – capital recycling candidate $800,000 Total Valuation Uplif t 13% $59m or 54% of cost $700,000 11% $600,000 9% $500,000 7% $400,000 5% $300,000 3% $200,000 1% $100,000 $0 -2% Burleigh Heads Cooks Hi
Slide 10: Recycling Capital to Optimise Portfolio and Returns
Recycling Capital to Optimise Portfolio and Returns 2. Sold 36 Houses Past Two Years Sales Price $18m ($500k / dwelling) Average Rent ~$480pw / Yield on Sales Price ~3.0% 3. Capital Redeployed - Example 1. Initial Perth House Portfolio – 84 Houses Residential Build-to-Rent Total Cost $110m ($182k /
Slide 11: Outlook
Outlook q Aspen is well positioned for continued growth in earnings, distributions APZ Stock Me trics @ $1.70 and NAV FY24 Guidance Price : NAV 0.85x q Residential markets likely to remain undersupplied, particularly at lower EPS 12.50-13.00 cents rent and price points Earnings yield 7.4 - 7.7% DPS
Slide 12: 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