Aspen Group Limited · ASX:APZ
Aspen — Investor Presentation (February 2022)
45 slides from Aspen's investor presentation, Feb 24, 2022
Slide 1: Aspen Group Investor Update – First Half FY22
Aspen Group Investor Update – First Half FY22 February 2022 Maylands, WA 1
Slide 2: Contents
Residents at Four Lanterns Estate, NSW Contents 1 1H FY22 Highlights 2 Operations 3 Development & Trading 4 Outlook 5 Appendices Sweet Water Grove – marketing campaign, NSW
Slide 3: Highlights 1H FY22
Meadowbrooke Lifestyle Estate, Boyanup, WA – acquired Dec 2021 1 Highlights 1H FY22 3
Slide 4: Aspen Highlights
Aspen Highlights The demand for more affordable accommodation is greater than ever in Australia’s $9.3 trillion residential property market… Fully integrated platform - owner, operator, developer • Experienced management team with a material stake in the company Aspen provides quality • Over 140 emp
Slide 5: 1H FY22 Performance – Underlying Earnings & Distributions
1H FY22 Performance – Underlying Earnings & Distributions Profitability maintained in a challenging environment while portfolio is positioned for growth... Development Property NOI & Trading Operating Profit EPS DPS (8%) Profits +16% +2% maintained $6.49m +196% $6.12m 4.64 cents 3.10 cents $2.88m (c
Slide 6: 1H FY22 Performance - Capital
1H FY22 Performance - Capital Aspen has continued to grow its business, portfolio and value while managing risks... Proportion of Portfolio WACR Total Approved dwellings/sites 6.8% NAV Total Assets Dwellings / Sites under Average Value +15% +46% refurbishment/ +31% per $1.51 per $359m development Dw
Slide 7: Material Value Creation Within Portfolio
Material Value Creation Within Portfolio Aspen creates value for securityholders by enhancing the value of its properties through refurbishment and development, driving growth in rents, net income and asset value... Value Creation: Change in NAV plus Distribution Yield1 Average Cap Rates (weighted b
Slide 8: Operations
2 Operations The Ridge, Mount Barker, SA 8
Slide 9: Residential Communities (41% of portfolio value)
Residential Communities (41% of portfolio value) Residential - Total Residential - Operating Properties Residential - Properties Under Development 1HFY22 1HFY21 Change 1HFY22 1HFY21 Change 1HFY22 1HFY21 Change Revenue - $m $2.79 $1.05 167% $2.16 $0.90 141% $0.63 $0.15 326% NOI - $m $1.06 $0.64 66% $
Slide 10: Residential Properties Under Refurbishment / Development
Residential Properties Under Refurbishment / Development Expected to add $5m NOI post completion and leasing - more than tripling current Residential segment NOI... Residential - Properties Under Development Perth Apartment Portfolio Burleigh Heads Cooks Hill Total Mount Barker Project Type Refurbis
Slide 11: Perth Apartment Portfolio
Perth Apartment Portfolio Refurbishment program on schedule, costs are under control, and rents are tracking above budget... Total Apartments: 514 Initial Guidance – Post Refurbishment Program Average Total Cost per Apartment: $156k (purchase cost of $107k plus refurbishment cost of $49k) Average we
Slide 12: Solid Progress on Perth Apartment Portfolio Refurbishment
Solid Progress on Perth Apartment Portfolio Refurbishment Customised roll out across portfolio – refurbished apartments are well presented, comfortable, and affordable... 23 Kathleen Avenue, Maylands 126 Peninsular Road, Maylands 291 Harborne Street, Glendalough 12
Slide 13: Retirement Communities (20% of portfolio value)
Retirement Communities (20% of portfolio value) Retirement Communities Aspen owns 940 Retirement dwellings/sites in metropolitan and lifestyle locations 1HFY22 1HFY21 Change Revenue - $m $2.24 $1.74 29% Residential Land Leases: NOI - $m $1.32 $1.07 23% - Aspen develops and sells houses and leases th
Slide 14: Park Communities (39% of portfolio value)
Park Communities (39% of portfolio value) Park Communities Park Communities - All Except AKV Park Communities - AKV 1HFY22 1HFY21 Change 1HFY22 1HFY21 Change 1HFY22 1HFY21 Change Revenue - $m $10.93 $12.09 (10%) $9.80 $8.00 23% $1.13 $4.09 (72%) NOI - $m $4.12 $5.34 (23%) $4.11 $3.40 21% $0.01 $1.93
Slide 15: Development & Trading
3 Development & Trading Wodonga Gardens Retirement Estate, Vic 15
Slide 16: Development & Trading
Development & Trading Settlements Since 31 December 2021 and Current Settled - 1H FY22 Contracts/Deposits Solid momentum in development and trading activity has Amount $m Per Amount $m Per # Dwellings/Sites # Dwellings/Sites continued in FY22 (exc GST) Dwelling/Site (exc GST) Dwelling/Site Developme
Slide 17: Development & Trading Activity
Development & Trading Activity For our Retirement Community land lease developments we expect to create value two ways: 1. A profit margin from selling the dwelling (sales price less selling costs less total production cost of the dwelling and landscaping) – this profit is reflected in Underlying Ea
Slide 18: Outlook
4 Outlook 18
Slide 19: Outlook
Outlook Aspen is well positioned to grow Net Asset Value and/or Underlying Earnings per security by at least 10% per annum over the medium term... ▪ Residential: - Aspen’s residential properties are currently valued at less than replacement cost - ▪ Development & Trading: building costs and land pri
Slide 20: Aspen's Credentials
Aspen’s Credentials ✓Customer-centric provider of quality accommodation on competitive terms ✓Highly experienced and disciplined management team with substantial shareholdings in the company ✓Integrated ownership, operating and development platform that is scalable ✓Over 3,600 approved dwellings/sit
Slide 21: Appendix A: Aspen's Business and Property Portfolio
Appendix A Koala Shores Holiday Park, NSW Aspen’s Business and Property Portfolio 21
Slide 22: Aspen's Business Model
Aspen’s Business Model 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’s efficient dwellings
Slide 23: Current Portfolio Composition
Current Portfolio Composition Aspen owns, operates and develops residential, retirement and park communities in metropolitan and lifestyle locations where our customers lease dwellings and land sites... Portfolio Value by Property Type Location by Value Total Dwellings/Sites - Operating v. Developme
Slide 24: Current Portfolio Summary
Current Portfolio Summary Current Portfolio Aggregates1 ▪ Aspen currently has 21 properties/portfolios valued at approximately $316m: Properties/Portfolios 21 o Average value of approximately $87k per approved dwelling/site Land Area 101 hectares Approved Sites 3,605 o Only $3.1m per hectare of land
Slide 25: 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 materially over the past few years. + Meadowbrooke Lifestyle Estate + Perth Apartments Portfolio o Increased weighting to: + Wodonga Gardens - Metr
Slide 26: FY22 YTD Acquisitions – building significant scale
FY22 YTD Acquisitions – building significant scale at prices which align with our affordability strategy Perth Apartment Portfolio Meadowbrooke Lifestyle Estate, WA Status: Settled September 2021 Settled December 2021 Purchase Price: $52.0m $3.3m Dwellings/Sites: 514 apartments 184 comprising 17 lea
Slide 27: FY22 YTD Acquisitions – building significant scale
FY22 YTD Acquisitions – building significant scale at prices that align with our affordability strategy Wodonga Gardens Retirement Estate, Vic Coorong Quays, SA Status: Settled August 2021 Merger Proposal Purchase Price: $6.0m $25.0m Dwellings/Sites: 172 comprising 51 leased houses (DMF) and 121 app
Slide 28: Aspen's portfolio is geographically diversified
Aspen’s portfolio is geographically diversified… Land Area NT (Hectares) Dwellings/Sites Land Area WA (Hectares) Dwellings/Sites 18 Darwin FreeSpirit 10.8 461 13 Mandurah 6.8 158 14 AKV 2.9 180 18 15 Perth House Portfolio 2.5 68 Land Area Dwellings/ Queensland (Hectares) Sites 16 Perth Apartment Por
Slide 29: Aspen Group: Portfolio Summary – Residential
Aspen Group: Portfolio Summary Residential Segment WA NSW QLD SA Perth Apartment Perth House Lindfield Kiah Lindfield Kalinda Cooks Hill Uniresort Burleigh Heads Mount Barker Total Residential Portfolio Portfolio Region Perth Metro Perth Metro Sydney Metro Sydney Metro Newcastle Metro Brisbane Metro
Slide 30: Aspen Group: Portfolio Summary – Retirement Communities
Aspen Group: Portfolio Summary Retirement Communities Segment NSW WA VIC SA Four Sweetwater Mandurah Gardens Meadowbrooke Wodonga Gardens Lewis Fields Total Retirement Lanterns Grove Region Sydney Metro Newcastle Region South Coast South Coast Albury-Wodonga Fleurieu Land Ownership Freehold Freehold
Slide 31: Aspen Group: Portfolio Summary – Park Communities
Aspen Group: Portfolio Summary Park Communities Portfolio Total Segment NSW SA NT WA Australia Barlings Koala Tween Highway Adelaide Darwin AKV Total Parks Beach Shores Waters One CP FSR Region South Coast Central Coast South Coast Adelaide Metro Adelaide Metro Darwin Metro Pilbara Land Ownership Fr
Slide 32: Appendix B: Financial Accounts
Appendix B Financial Accounts Sweetwater Grove, Tomago, NSW 32
Slide 33: Operating Profit – 1H FY22
Operating Profit – 1H FY22 1H FY22 1H FY21 Key Metrics Change $m $m Statutory Profit up 207% - includes revaluation gains Statutory Profit 29.27 9.54 207% Total Revenue 26.00 17.77 46% Operating Profit up 16% Operating & Development Net Income 9.37 8.02 17% Margin Rental and ancillary services reven
Slide 34: Summary Balance Sheet and Capital Management
Summary Balance Sheet and Capital Management Drawn Expiry Limit Available 31 Dec 21 30 June 21 $m 31 Dec 2021 Key Metrics Change $m $m Debt Facilities April 2024 $156.00 $112.70 $43.30 Property Assets 338.8 228.7 48% Total Margin (above BBSW) 2.000% Total Assets 358.7 246.5 46% Swaps - Floating to F
Slide 35: Reconciliation of Statutory Profit to Operating Profit
Reconciliation of Statutory Profit to Operating Profit 1H FY22 1H FY21 % Change Asset revaluations $m $m ▪ In the half Darwin Freespirit Resort, Four Lanterns, Sweetwater Grove, Koala Statutory Net Profit after Tax 29.27 9.54 207% Shores and the Lindfield Apartments we revalued by external valuers.
Slide 36: Statutory Accounts Extract: Statement of Profit and Loss
Statutory Accounts Extract: Statement of Profit and Loss ^ ^ ^The above should be read in conjunction with the accompanying notes contained in the financial statements 36
Slide 37: Statutory Accounts Extract: Balance Sheet
Statutory Accounts Extract: Balance Sheet ^ ^ ^ 37 ^The above should be read in conjunction with the accompanying notes contained in the financial statements
Slide 38: Statutory Accounts Extract: Cash Flow Statement
Statutory Accounts Extract: Cash Flow Statement 38
Slide 39: Statutory Accounts Extract: Segment Information
Statutory Accounts Extract: Segment Information 39
Slide 40: Appendix C: ESG
Appendix C ESG Highway 1 Caravan and Tourist Park, Bolivar South, SA – installed Xodboxes which are highly energy efficient 40
Slide 41: Environmental, Social and Corporate Governance Program
Environmental, Social and Corporate Governance Program Social • 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 dwellings for under $400
Slide 42: Environmental, Social and Corporate Governance Program
Environmental, Social and Corporate Governance Program Environmental (continued) o Recycling and composting facilities - composting food reduces CO2 emissions relative to burying food o Relatively high levels of vegetation that absorbs CO2 o Replacing our vehicles with more efficient or electric/hyb
Slide 43: Appendix D: Distribution & Tax History
Appendix D Distribution & Tax History Tween Waters Holiday Park, NSW 43
Slide 44: Distribution & Tax History
Distribution & Tax History Aspen Group Ltd Aspen Property Trust1 Total Amount Paid Period / Quarter Ended Payment Date Distribution Type Tax Deferred / Non CPS 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 20/10/2017 Special Capita
Slide 45: 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