Aspen Group Limited · ASX:APZ
Aspen — H1 2012 Earnings Presentation
38 slides from Aspen's earnings presentation, Feb 24, 2012
Slide 1: 2012 Half Year Results Presentation
For personal use only 2012 Half Year Results Presentation
Slide 2: For personal use only
For personal use only 1. Performance Overview 2. Financial Summary 3. Property Portfolio 4. Funds Management 5. Outlook and Guidance 6. Appendices 2
Slide 3: Performance Overview
For personal use only Performance Overview
Slide 4: Financial Highlights
PERFORMANCE OVERVIEW Financial Highlights For personal use only − Operating profit after tax of $18.6 million, up 13.5% − Statutory profit to $13.7 million, up 77.8% − Operating EPS 3.16 cents per security, up 8.0% − ICR of 3.8 times − NTA $0.68 Performance Highlights − Telstra Super JV settled and
Slide 5: 1H2012 Contribution by Segment
PERFORMANCE OVERVIEW 1H2012 Contribution by Segment For personal use only EBITDA Ave Funds ROC ROC AUM 1H12 1H11 Employed 1H12 1H11 $m $m $m $m % % Investment Property 323 15.04 17.36 372.51 8.1% 8.3% Funds Management Aspen Living Residential Land 298 3.74 2.94 74.13 10.1% 8.7% Aspen Parks Accomodat
Slide 6: Strategic Messages
PERFORMANCE OVERVIEW Strategic Messages For personal use only ► Group − Continued focus on non-core asset sales to enhance liquidity − Looking to reduce financing costs ► Property Portfolio − Maximise expected strong reversionary rents, particularly WA assets − Capture strong rental upside through l
Slide 7: Financial Summary
For personal use only Financial Summary
Slide 8: 1H2012 Financial Results Summary
FINANCIAL SUMMARY 1H2012 Financial Results Summary For personal use only 1H2012 1H2011 $m $m Underlying Net Profit Before Tax 16.6 15.6 Changes in fair value of assets 12.6 (11.2) Changes to group structure 0.6 - Impact of ADF put option (17.8) - Financial instruments marked to market (3.2) 1.2 Othe
Slide 9: Income Statement (underlying earnings)
FINANCIAL SUMMARY Income Statement (underlying earnings ) For personal use only 1H2012 1H2011 $m $m Income from operations Rental income 21.6 27.1 Funds management 13.2 10.7 Other income 3.8 1.4 Total Income 38.6 39.1 Expenses Direct property expenses (7.1) (8.7) Employment (5.5) (5.7) Administrativ
Slide 10: Funds Management Performance
FINANCIAL SUMMARY Funds Management Performance For personal use only Diversified Property 1H2012 1H2011 ► Aspen Diversified – lower contribution Fund ($m) resulting from consolidation at 31 Revenue 1.00 2.15 October 2011 Operating EBITDA 0.60 1.78 ► Aspen Parks continued strong operational performan
Slide 11: Summary Balance Sheet and Cash Flow
FINANCIAL SUMMARY Summary Balance Sheet and Cash Flow For personal use only 31 Dec 2011 30 June 2011 $m $m Total assets 716.1 597.8 Total Liabilities 306.9 207.4 Net Assets 409.2 390.4 NTA 1 $0.68 $0.67 Gearing 35% 28% Look-through Gearing 35% 34% Interest Cover Ratio 3.8x 3.4x 31 Dec 2011 31 Dec 20
Slide 12: Capital Management Initiatives
FINANCIAL SUMMARY Capital Management Initiatives For personal use only ► Secured 50% equity participation for development of ATO building ($34m). ► Secured debt funding for development of ATO building ($117.6m) ► Sale of Alcoa building for $28.3m with settlement to occur in late FY12 ► Initiated sal
Slide 13: Property Portfolio
For personal use only Property Portfolio
Slide 14: Investment Property Overview
PROPERTY PORTFOLIO Investment Property Overview For personal use only Excluding impact of Heaton Street, Rocklea Direct Property ($m) 1H2012 1H2011 vacancy, 4.8% like for like growth in balance of Revenue 24.16 29.07 portfolio (or 1.7% including) Operating EBITDA 15.04 17.36 Independent valuations u
Slide 15: Key Property Update
PROPERTY PORTFOLIO Key Property Update For personal use only Septimus Roe – Book Value (BV) $96 million − Occupancy now at 92% − Net market rents now $525 sqm vs passing of $440 sqm Aspen Karratha Village – BV $52 million − Going through market review 2nd quarter 2012, with uplift expected ATO Build
Slide 16: Key Property Update – Spearwood Industrial Estate
PROPERTY PORTFOLIO Key Property Update – Spearwood Industrial Estate – BV $58m For personal use only Entire complex sub-leased to AWH expiring June 2012 Leasing campaign started for expected June expiry - strong demand shown Strong rental upside on cessation of lease Warehouse GLA 99k sqm Hardstand
Slide 17: Key Property Update – Spearwood Industrial Estate
PROPERTY PORTFOLIO Key Property Update – Spearwood Industrial Estate For personal use only Existing Lease Metrics Achievable Market Rates Rent Annual Rent Rent Annual Rent sqm $ / sqm $m $ / sqm $m Warehouse A 39,484 47.53 1.88 60 2.37 Lease Area 1 21,697 - 15 0.32 Warehouse B 59,320 47.53 2.82 55 3
Slide 18: Investment Property Outlook
PROPERTY PORTFOLIO Investment Property Outlook For personal use only Geographical Diversification (post ATO Building completion) 2 Portfolio to benefit from overweight position in buoyant WA market WA VIC Perth office vacancy fell to 3.3% from 7.8% in SA, 29% 6 months to January 2012 1 QLD SA Active
Slide 19: Funds Management
For personal use only Funds Management
Slide 20: Aspen Parks equity inflows FY07 to 1H2012
FUNDS MANAGEMENT Aspen Parks equity inflows FY07 to 1H2012 and Forecast FY12 Key Highlights For personal use only 45 $M Forecast Actual ► Strong equity retail inflows with Aspen Parks 40 inflows up 44% 35 30 ► Further expansion of financial advisor 25 networks 20 ► Continued diversified support from
Slide 21: Aspen Diversified Property Fund – 1H2012 Overview
FUNDS MANAGEMENT Aspen Diversified Property Fund – 1H2012 Overview For personal use only ► Portfolio valuation increased $5.6m (4.8%) on June 2011 Key Metrics Dec 2011 June 2011 Weighted Ave Cap 9.18% 9.27% ► Total income for 1H2012 in line with Rate (%) forecast Occupancy (%) 96% 91% ► Castle Hill
Slide 22: Aspen Parks Property Fund – 1H2012 Overview
FUNDS MANAGEMENT Aspen Parks Property Fund – 1H2012 Overview For personal use only Aspen Parks income segment analysis Strong 1H2012 trading performance driven by 18 $M 16 1H2011 1H2012 growth in revenue from mining properties 14 Tourist Parks revenues remained steady 12 10 Positive ongoing operatin
Slide 23: Aspen Living - 1H2012 Overview
FUNDS MANAGEMENT Aspen Living - 1H2012 Overview For personal use only Achieved 55 lot settlements for GRV of $13.9m 1H2012 1H2011 New lots sale contracts secured for FY12 (104 lots Lot settlements at $25.4m) 55 161 (Number) Settlements down on budget (83 lots) due to Lot settlements (Gross $13.9m $3
Slide 24: Aspen Living - Outlook
FUNDS MANAGEMENT Aspen Living - Outlook For personal use only Remaining FY12 2H2012 Contracts 2H2012 New sales Contracts on hand Settlements on hand to be achieved for FY13 Dunsborough 19 6 13 7 Fern Bay 99 47 52 - St Leonards 84 77 7 21 Whitsunday Shores 15 4 11 - Enclave at St Leonards - - - 54 TO
Slide 25: ADF No. 1 – 1H2012 Overview
FUNDS MANAGEMENT ADF No. 1 – 1H2012 Overview For personal use only ATO Building works on budget. Now 71% complete Mariner Apartments in Geraldton occupancy 90% 1H2012 Medical Suites sales – settled 3 suites for $1.6m 19 settlements at Byford for $3.8m Progression of Byford dust buffer planning which
Slide 26: Outlook and Guidance
For personal use only Outlook and Guidance
Slide 27: Outlook and Guidance
OUTLOOK & GUIDANCE Outlook For personal use only Continuing stable rental income with potential for asset growth Funds Management growth through: ─ Aspen Living – Improved 2H2012 with 69% of full year forecast settlements presold ─ ADF No. 1– ATO Building on schedule and forecast to be 92% complete
Slide 28: Appendices
For personal use only Appendices
Slide 29: Appendices Contents
APPENDICES Contents For personal use only 1. Corporate Structure 2. Organisation Structure 3. Balance Sheet 4. Cashflow Summary 5. Summary of Investment Properties 6. Funds Management - Assets Under Management 7. Aspen Living Pipeline 8. Additional Fund Metrics Aspen Group – 1H2012 Results 29
Slide 30: Corporate Structure
APPENDIX 1 Corporate Structure For personal use only Aspen Group (APZ) Stapled Securities Rental income Funds management fees, equity profits, interest revenue Property Portfolio Funds Management $394 AUM $1.0B AUM Equity / Asset AUM Fund Sector Structure % Owned Loans AUM Investment Tourist & Unlis
Slide 31: Organisational Structure
APPENDIX 2 Organisational Structure For personal use only Gavin Hawkins Managing Director Eric Lee Lino Brolese Jeff Holloway Jamie Smith Philip Barker Chris Lewis Brett Fullarton Head Of Head of Company Head of Funds CEO Head of CFO Commercial Commercial Secretary Management Aspen Parks Residential
Slide 32: Balance Sheet
APPENDIX 3 Balance Sheet For personal use only 31 Dec 11 30 June 11 $m $m Current Assets Cash and other 74.3 43.9 Subsidiary assets held for sale 122.1 - Non-Current Investment Properties 323.4 327.4 Equity Investments 37.1 81.0 Inventories 24.9 23.5 Loans to associates 82.3 81.2 Other 52.0 40.8 Tot
Slide 33: Cash flow Summary
APPENDIX 4 Cash flow Summary For personal use only 1H2012 1H2011 Mvt Note $m $m $m Cashflow from operating activities 13.1 10.2 2.9 1 Key cashflows from investing activities Acquisition of property, plant and equipment (0.4) - (0.4) Development / improvement of investment properties (26.9) (5.7) (21
Slide 34: Summary of Investment Properties
APPENDIX 5 Summary of Investment Properties For personal use only Latest 1H2012 Property Independent Book Value Change in Cap Rate WALE Occupancy Valuation ($m) Valuation (%) (yrs) (%) Date ($m) Septimus Roe, WA Oct 11 96.0 9.0 8.75 2.57 92 Spearwood Industrial Estate, WA June 11 58.0 - 9.75 0.42 10
Slide 35: Funds Management - Assets Under Management
APPENDIX 6 Funds Management - Assets Under Management For personal use only Aspen Living ADF No.1 Residential Developments 5 Assets (AUM 14 Assets (AUM $298M) $239M) Aspen Parks Aspen Diversified Tourism & Core Income Accommodation 9 Assets (AUM $122M) 25 Assets (AUM $290M) Aspen Group – 1H2012 Resu
Slide 36: Aspen Living - Pipeline
APPENDIX 7 Aspen Living - Pipeline For personal use only 181 lots Enclave at St Leonards 1 GRV Jun $40.7 mil 2013 Whitsunday Shores 855 lots 12 GRV Estate $275mil Feb 960 lots 2026 St Leonards Estate 5 GRV $286mil Jan Oct 2007 2016 881 lots Seaside Fernbay 10 GRV $262mil Jan Oct 2006 2020 1,376 lots
Slide 37: Additional Fund Metrics
APPENDIX 8 Additional Fund Metrics For personal use only Aspen Fund Lender Maturity Total Assets Debt Facility Aspen Dunsborough Lakes 1 Nab FY14 $79m $31m Aspen Whitsunday Shores 1 Nab FY13 $46m $6m Fern Bay Seaside Village 1 Bankwest FY12 $81m $28m St Leonard's Estate 1 Nab FY14 $78m $30m Enclave
Slide 38: Disclaimer
For personal use only DISCLAIMER 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