Aspen Group Limited · ASX:APZ
Aspen — Shareholder Meeting (November 2009)
28 slides from Aspen's shareholder meeting presentation, Nov 20, 2009
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 19 November 2009 Chai
Slide 2: Chairman's Address (continued)
It is worth pointing out that Aspen Group was one of the last LPT’s to reduce its distribution levels, and is one of the few remaining groups that retain a quarterly For personal use only distribution payment, with many reverting to an annual payout. The decision by the Board to reduce the distribut
Slide 3: Chairman's Address (continued)
Importantly our recurring rental income base continued to grow, and although our funds management business delivered substantially lower profits in 2009, the For personal use only completion of capital management initiatives now position our funds management business for future growth Group gearing
Slide 4: Chairman's Address close and About Aspen Group
we now look forward to diverting our full attention towards further strengthening and growing the business. For personal use only Finally, I would like to thank all our securityholders for your continued loyalty and valued support over the past year. End For further information in relation to this a
Slide 5: 2009 Annual General Meeting Presentation
For personal use only 2009 Annual General Meeting Presentation
Slide 6: Agenda
Agenda For personal use only Aspen Overview Business Fundamentals 1. 2009 Group Results Summary 2. Financial Summary 3. Capital Management 4. Property Portfolio 5. Funds Management 6. Outlook Questions 2
Slide 7: Aspen Overview: Corporate Structure
Aspen Overview Corporate Structure For personal use only 3
Slide 8: Business Fundamentals
Aspen Overview Business Fundamentals For personal use only Confidence in our 100% of headstock assets independently valued asset values Dec 08 – June 09 Cap rate (excl Karratha) up 220 points to 10.02% 89% of AUM independently valued Dec 08 – June 09 Strengthened Balance sheets strengthened balance
Slide 9: 2009 Group Results Summary
1. 2009 Group Results Summary For personal use only Satisfactory operating profit given difficult market conditions Strong operating performance from investment properties Funds management income subdued given fewer transactions in funds Balance sheet well positioned post June 2009 equity raising Ge
Slide 10: Financial Summary
For personal use only 2. Financial Summary
Slide 11: FY2009 Overview
2. Financial Summary FY2009 Overview For personal use only FY09 FY08 Financial Performance Total revenue $70.2m $77.3m Operating profit after tax $33.2m $43.8m Statutory profit / (loss) after tax ($64.7m) $70.8m Operating earnings per security 11.91 c 18.06 c Interest Cover (EBITDA / Interest expens
Slide 12: Capital Management
For personal use only 3. Capital Management
Slide 13: Capital Management: Aspen Group Overview
3. Capital Management Aspen Group Overview For personal use only Completion of capital management initiatives has allowed the Group to negotiate enhanced facility terms with lenders Maturity term on senior debt extended to February 2012 Equity raising reduced bank debt by $73 million and gearing to
Slide 14: Summary of Group Facilities
3. Capital Management Summary of Group Facilities For personal use only Facility Facility Limit Purpose Maturity Covenants* NAB Core $213m Long Term Feb 2012 LVR 69% to maturity Facility Core Facility NAB Karratha $22.5m Karratha Dec 2013 LVR as per Core Facility Village Facility Amortising @ $250k
Slide 15: Managed Funds Overview
3. Capital Management Managed Funds Overview For personal use only All managed Funds have negotiated enhanced facility terms with lenders Weighted average maturity term across all fund facilities extended from 1.5 years to 2.0 years All debt facilities remain fully compliant with banking covenants F
Slide 16: Property Portfolio
For personal use only 4. Property Portfolio
Slide 17: FY2010 Year to Date & Outlook
4. Property Portfolio FY2010 Year to Date & Outlook For personal use only Year to date First quarter results in line with budget with investment properties performing strongly Aspen Karratha Village at full occupancy and recording strong cashflows Encouraging signs from recent leasing activity Outlo
Slide 18: Outlook supported by Key Metrics
4. Property Portfolio Outlook supported by Key Metrics For personal use only Blue Chips account for 70% of tenants Lease Expiry Profile by Financial Year (% of rental income) Occupancy 94% 0% 5% 10% 15% 20% 25% 30% 35% 40% WALE 3.6 yrs 2010 2011 Weighted average cap rate 10.02% 2012 2012 – Elders *
Slide 19: Funds Management
For personal use only 5. Funds Management
Slide 20: Divisions Summary
5. Funds Management Divisions Summary For personal use only Aspen Branding Aspen Diversified Aspen Aspen Developments Parks Living Tourism and Sector Core Income Residential Estates Development Fund Series Accommodation Asset value $269 million $139 million $328 million $313 million Aspen ownership
Slide 21: FY2010 Year to Date
5. Funds Management FY2010 Year to Date For personal use only Key recapitalisation initiatives within a number of managed Funds completed in first quarter Development funds now well positioned to progress their respective development projects Aspen Living syndicates have delivered a significant incr
Slide 22: Funds Management Outlook
5. Funds Management Outlook For personal use only General Nil acquisition fees included in FY2010 guidance – so upside exists if any transactional activity Funds management fees expected to be skewed to the second half on the back of further development activity in that period Aspen Parks With easin
Slide 23: Funds Management Outlook: Aspen Living and Development Fund
5. Funds Management Outlook For personal use only Aspen Living Stronger contribution expected in FY2010 from Aspen Living as a result of execution of Stage 1 of St Leonards Estate and a revitalised residential sector FY2010 will see all 4 residential land developments in development and sales mode A
Slide 24: Outlook
For personal use only 6. Outlook
Slide 25: Aspen well positioned
6. Outlook Aspen well positioned For personal use only We certainly see some early signs of a recovery across most property markets Return of more normalised property fundamentals expected to see less pressure on market values Landmark resource projects (Gorgon, Pluto, Iron-Ore projects, Olympic Dam
Slide 26: FY2010 Guidance and Growth Areas
6. Outlook For personal use only Operating Earnings guidance for FY2010 remains 6.00 cps to 6.70 cps Distribution guidance for FY2010 unchanged - around 70% of operating earnings Our focus is on growth in areas where we have a demonstrated track record at generating strong returns Potential for retu
Slide 27: Questions
For personal use only Questions
Slide 28: 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