Aspen Group Limited · ASX:APZ
Aspen — FY2021 Earnings Presentation
47 slides from Aspen's earnings presentation, Aug 19, 2021
Slide 1: Aspen Group Financial Results – FY21
Aspen Group For personal use only Financial Results – FY21 August 2021 Newcastle, NSW 1
Slide 2: Financial Results FY21
For personal use only 1 Financial Results FY21 Four Lanterns Estate, Leppington, NSW 2
Slide 3: Contents
Residents at Four Lanterns Estate, NSW Contents For personal use only 1 Financial Results – FY21 2 Portfolio Summary 3 Operations & Development 4 Managed Funds 5 ESG 6 Appendices Sweet Water Grove – marketing campaign, NSW
Slide 4: Aspen's Business Model
Aspen’s Business Model For personal use only Aspen Provides Quality Accommodation to Australian Households on Competitive Terms Sustainable Ecological Footprint Customer-centric business model servicing households that can Governance afford no more than $400 weekly rent or $400k purchase price Aspen
Slide 5: Portfolio Composition
Portfolio Composition Aspen leases dwellings and land sites to customers within residential, retirement and park communities... For personal use only Types of Properties Dwellings and Land Sites (by # of dwellings/sites) (by number) Land Development Sites 9% Retirement Residential Communities Dwelli
Slide 6: FY21 Performance (compared to FY20) - Capital
FY21 Performance (compared to FY20) - Capital Aspen has continued to grow its business, portfolio and value while managing risks... For personal use only Portfolio Total Total WACR Approved Approved Total 7.7% Book NAV Dwellings Sites to Assets Book Gearing Equity +14% to / Sites Develop +29% to Val
Slide 7: FY21 Performance – Earnings & Distributions
FY21 Performance (compared to FY20) – Earnings & Distributions Aspen has continued to grow its business, portfolio and profits while managing risks... For personal use only Total Property D&T Operating EPS DPS Revenue NOI Profits MER Profit reduced +14% to +10% to +18% to +8% to +220% to 1.8% +36% t
Slide 8: Portfolio Transformation
Portfolio Transformation For personal use only Growing our customer base, equity value and profits while diversifying risks FY19 Portfolio NOI Composition FY21 Portfolio NOI Composition D&T AKV D&T 14% 12% 5% Retirement 12% Residential AKV 10% 30% Total Tourist Parks Total 26% $14.8m Mixed Parks $11
Slide 9: Material Profit Drivers #1
Material Profit Drivers #1 For personal use only Actively pivoting between short stay and long stay leases at our Park Communities during COVID... Average Daily Rate Occupancy Rate Total Park Accommodation Revenue - $m $120 90% $20 80% $18 $100 70% $16 $14 $80 60% $12 50% $60 $10 40% $8 $40 30% $6 2
Slide 10: Material Profit Drivers #2
Material Profit Drivers #2 Growth in Development and Trading activity... For personal use only Development & Trading Activity Development & Trading Gross Margin Aspen’s Approved Land Development Sites (settlements) (book value per site) $3.0M +138% Wodonga $30.0M +121% 140 400 +49% Gardens $2.5M ($3
Slide 11: Material Profit Drivers #3
Material Profit Drivers #3 Steady progress building a new customer base at Aspen Karratha Village... For personal use only AKV Weekly Performance post Woodside ▪ At AKV we pivoted to a short stay model after Woodside’s lease expiry in January 2021 60% $160 ▪ We have internalised management of the pr
Slide 12: Financial Performance – FY21
Financial Performance – FY21 FY21 FY20 For personal use only Key Metrics Change $m $m ▪ Rental and ancillary services revenue up 3% - mainly attributable Statutory Profit 25.39 11.87 114% to higher contributions from Darwin FreeSpirit Resort particularly from its new F&B and entertainment facilities
Slide 13: Balance Sheet and Capital Management
Balance Sheet and Capital Management For personal use only FY21 FY20 Dec 2020 Key Metrics Change $m $m $m Property Assets 228.7 167.0 37% 185.7 ▪ Property Assets up 37% - driven mainly by the Total Assets 246.5 190.7 29% 205.4 acquisition of Cooks Hill and Uniresort co-living communities, Mount Bark
Slide 14: Outlook
Outlook Aspen is well positioned to continue to grow profits and the book value of equity over the medium term and we are aiming for growth of For personal use only at least 10% per annum... ▪ Park Communities: ▪ Residential: - Expect continued volatility due to COVID-19 and associated lockdowns - C
Slide 15: Aspen's Credentials
Aspen’s Credentials ✓Customer-centric provider of quality accommodation on competitive terms For personal use only ✓Highly experienced and disciplined management team with substantial shareholdings in the company ✓Integrated ownership, operating and development platform that is scalable ✓Over 3,400
Slide 16: Portfolio Summary
For personal use only Port Kennedy, Perth 2 Portfolio Summary 16
Slide 17: Current Portfolio Summary
Current Portfolio Summary Current Portfolio Aggregates1 ▪ For personal use only Aspen currently has 20 properties valued at approximately $287m: o Average value of approximately $83k per approved dwelling/site Properties 20 o Only $3.1m per hectare / $310 per sqm of land Land Area 92.4 hectares o WA
Slide 18: Aspen's Competitive Prices and Rents
Aspen’s Competitive Prices and Rents For personal use only Current Metrics1: Portfolio Value $287m Number of Dwellings/Sites 3,433 Average Value per Dwelling/Site $83k WACR 6.93% Houses Apartments Mixed Use Parks Land Lease Communities Co-Living Average Book Value per Dwelling/Site $342k $287k $77k
Slide 19: Aspen's Portfolio Composition & Growth
Aspen’s Portfolio Composition & Growth Portfolio Composition1,2 and Acquisition History ▪ Aspen’s portfolio composition and income streams have improved For personal use only materially over the past few years. + Perth Apartments Portfolio + Wodonga Gardens o Increased weighting to: $m 33% growth p.
Slide 20: FY22 YTD Acquisitions – Attractively Priced and Building Significant Scale
FY22 YTD Acquisitions – Attractively Priced and Building Significant Scale Wodonga Gardens Retirement Estate, Victoria Perth Apartments Portfolio For personal use only Status: Contracted July 2021 Contracted August 2021 Purchase Price: $6.01m $52.0m Dwellings/Sites: 172 comprising: 51 Homes and 121
Slide 21: H2 FY21 Acquisitions – Attractively Priced
H2 FY21 Acquisitions – Attractively Priced Uniresort Co-Living, Upper Mount Gravatt, QLD Lewis Fields Retirement Village, Strathalbyn, SA For personal use only Status: Settled April 2021 Settled June 2021 Purchase Price: $18.5m $2.36m Approved Sites/Dwellings: 308 80 comprising: 26 Homes and 54 appr
Slide 22: Operations and Development & Trading
Warnbro Beach, Waikiki, Perth For personal use only Aspen Karratha Village, WA Burleigh Heads, QLD 3 Operations and Development & Trading 22
Slide 23: Property NOI – FY21 vs. FY20
Property NOI – FY21 vs. FY20 Residential Communities Retirement Communities Park Communities For personal use only Perth Four Barlings Darwin Cooks Hill Lanterns Lewis AKV Residential Fields Beach FSR Under +6% -52% development +139% New +18% +332% Lindfield Mandurah Highway Koala Uniresort Apartmen
Slide 24: Development & Trading Activity
Development & Trading Activity Solid momentum in development and trading activity has continued in Development & Trading Activity No. of Sales For personal use only FY21 with 26 house settlements v. 7 for FY20: Sales (settlements) $30.0M +121% 140 ▪ Development and sales of houses under a land lease
Slide 25: Managed Funds
For personal use only 4 Managed Funds Marina at Coorong Quays, SA 25
Slide 26: Funds Managed by Aspen – FY21
Funds Managed by Aspen – FY21 Coorong Quays For personal use only ▪ Operating profit 16% above FY21 ▪ Marina berth occupancy up 12% ▪ Excellent land sales with 131 contracts in FY21 compared to 23 for FY20. 80 land and house lots are due for settlement in FY22 at 30 June 2021 ▪ Land prices have move
Slide 27: ESG
For personal use only ESG 5 27
Slide 28: Environmental, Social and Corporate Governance Program
Environmental, Social and Corporate Governance Program Social For personal use only • Aspen improves society and reduces inequality by providing quality accommodation on affordable terms to a wide variety of Australian households in residential, retirement and park communities. We typically rent dwe
Slide 29: Environmental, Social and Corporate Governance Program – Governance
Environmental, Social and Corporate Governance Program Governance For personal use only • Aspen Group comprises the stapled head entities Aspen Group Limited and Aspen Property Trust. Aspen Group Limited is a company with a Board of Directors. Aspen Property Trust is a trust governed by a Responsibl
Slide 30: Appendix A – Property Details
For personal use only Appendix A Koala Shores Holiday Park, NSW Property Details 30
Slide 31: Aspen's portfolio is geographically diversified
Aspen’s portfolio is geographically diversified… Land Area Dwellings/ NT (Hectares) Sites Land Area WA Dwellings/Sites For personal use only (Hectares) 17 Darwin FreeSpirit 10.8 461 13 Mandurah 6.8 158 14 AKV 2.9 180 17 15 Perth House Portfolio 3.0 82 Land Area Dwellings/ Queensland (Hectares) Sites
Slide 32: Aspen Group: Portfolio Summary
Aspen Group: Portfolio Summary New South Wales Victoria Queensland For personal use only Four Lindfield Sweetwater Koala Barlings Tween Wodonga Lindfield Kiah Cooks Hill Total NSW Uniresort Burleigh Heads Total QLD Lanterns Kalinda Grove Shores Beach Waters Gardens6 Sydney Albury- Region Sydney Metr
Slide 33: Aspen Group: Portfolio Summary
Aspen Group: Portfolio Summary Western Australia South Australia NT Australia For personal use only Mandurah Perth House Perth Apartment Adelaide Highway Darwin AKV Total WA Mount Barker Lewis Fields Total SA Gardens Portfolio Portfolio6 CP One FSR Region South Coast Pilbara Perth Metro Perth Metro
Slide 34: Operational Performance and Opportunities – Residential Communities
Operational Performance and Opportunities Residential Communities For personal use only Perth Portfolio Lindfield Apartments Cooks Hill Co-Living Burleigh Heads UMG ▪ Modern family dwellings acquired in ▪ Treatts Road refurbishment ▪ Acquired in July 2020 for $3.75m1 ▪ Acquired in December 2020 for
Slide 35: Operational Performance and Opportunities – Retirement and Park Communities
Operational Performance and Opportunities Retirement Communities Park Communities For personal use only Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 6% on FY20 with increased ▪ NOI down 5% on FY20 (adjusted ▪ The repositioning and upgrade into ▪ NOI up 18% on F
Slide 36: Operational Performance and Opportunities – Park Communities
Operational Performance and Opportunities Park Communities For personal use only Adelaide CP Koala Shores Tween Waters Darwin Freespirit AKV ▪ NOI down 34% on FY20 largely due ▪ NOI up 48% on FY20 due to ▪ NOI up 110% on FY20 reflecting ▪ NOI up 332% on FY20 driven by ▪ NOI down 52% on FY20 to the i
Slide 37: Key Development Projects & Pipeline
Key Development Projects & Pipeline Attractive investment opportunities exist within the current portfolio to increase profits, build income streams, and create value… For personal use only Project Dwellings Key Projects FY22 FY23 FY24 and Beyond / Sites1 Development – new income producing sites / e
Slide 38: Development & Trading Activity
Development & Trading Activity Strong growth continues in the profitable development and trading of house and land inventory… For personal use only House and Land Sales Summary Houses & Lots No. of Sales6 Average Sales Price (Inc. GST if applicable) Developed Future Pipeline Built Houses Land Lots (
Slide 39: Appendix B – Statutory Accounts Extracts
For personal use only Appendix B Mandurah Gardens Estate, WA Statutory Accounts Extracts 39
Slide 40: Reconciliation of Statutory Profit to Operating Profit
Reconciliation of Statutory Profit to Operating Profit For personal use only FY21 FY20 Asset revaluations $m $m ▪ In H2 the Perth House portfolio, Highway 1, Adelaide Caravan Park, and Barlings Beach Holiday Park were revalued, Statutory Net Profit after Tax 25.39 11.87 following the revaluation of
Slide 41: Statutory Accounts Extract: Statement of Profit and Loss
Statutory Accounts Extract: Statement of Profit and Loss ^ For personal use only ^The above should be read in conjunction with the accompanying notes contained in the financial statements 41
Slide 42: Statutory Accounts Extract: Balance Sheet
Statutory Accounts Extract: Balance Sheet ^ For personal use only 42 ^The above should be read in conjunction with the accompanying notes contained in the financial statements
Slide 43: Statutory Accounts Extract: Cash Flow Statement
Statutory Accounts Extract: Cash Flow Statement For personal use only ^ ^The above should be read in conjunction with the accompanying notes contained in the financial statements 43
Slide 44: Statutory Accounts Extract: Segment Information
Statutory Accounts Extract: Segment Information For personal use only 44
Slide 45: Appendix C – Distribution & Tax History
For personal use only Appendix C Highway 1 Caravan and Tourist Park, Bolivar South, SA – Xodboxes Distribution & Tax History 45
Slide 46: Distribution & Tax History
Distribution & Tax History Aspen Group Ltd Aspen Property Trust1 For personal use only Period / Quarter Date Paid Distribution Type Total Amount Paid cents Ended Tax Deferred / Non CPS CPS assessable income Dec-17 28/02/2017 Ordinary - 2.10 - 2.10 Jun-17 29/08/2017 Ordinary - 2.50 - 2.50 Oct-17 20/1
Slide 47: 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