Aspen Group Limited · ASX:APZ
Aspen — Shareholder Meeting (November 2014)
18 slides from Aspen's shareholder meeting presentation, Nov 10, 2014
Slide 1: Aspen Group Annual General Meeting 2014 ASX Announcement
Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767 Level 3, Newspaper House 129 St Georges Terrace, Perth Western Australia, 6000 Telephone: 08 9220 8400 Facsimile: 08 9220 8401 ASX ANNOUNCEMENT For personal use only Email: homemail@aspengroup.com.au ASX ANNOUNCEMENT 10 Nov
Slide 2: Chairman's Address
Chairman’s Address Ladies and Gentlemen, welcome to our 2014 Annual General Meeting. My name is Frank Zipfinger. I am the Non-Executive Chairman of Aspen Group, and I have the privilege of being your Chairman for this meeting. For personal use only In my Chairman’s Report this year I will provide yo
Slide 3: Chairman's Address (continued)
broadening our national footprint, in particular increasing the NSW and Queensland weighting of our portfolio Our remuneration outcomes in 2014 mirrored our simplification strategy. In particular: - all key management personnel remuneration and directors’ fees were fixed at prior year levels; - a si
Slide 4: Chief Executive Officer presentation
For personal use only Chief Executive Officer presentation Clem Salwin 4
Slide 5: Refocussed strategic direction
Refocussed strategic direction Transition Aspen to be a leading A-REIT focussed on ‘value for money’ accommodation For personal use only Creation of a leading business is the surest path to the restoration of shareowner value Building blocks are in place to create a leading REIT: Compelling cu
Slide 6: Path forward – foundation laid
Path forward – foundation laid Building on delivery of FY14 strategic priorities For personal use only Key priorities Progress Exposure Sale and settlement of 3 out of 4 commercial assets reduced to Spearwood sole key asset remaining commercial properties and Development asset exposure reduced
Slide 7: Path forward – foundation laid: major shift in the portfolio
Path forward – foundation laid Major shift in the portfolio already achieved For personal use only Current 1 30 June 2013 9% 11% 14% 49% 40% 77% Accommodation Non-accommodation Cash Accommodation Non-accommodation Cash 1. As per September 2014 quarterly update, pro-forma look through assets 7
Slide 8: Customer / industry trends: Strong demographics
Customer / industry trends 1. Strong demographics For personal use only Strong demographic trends, Net growth in population aged 65+ underpinned by ageing population 160,000 140,000 Sustained increase in number of people turning 65 each year 120,000 100,000 Retirement savings often inadequate
Slide 9: Customer / industry trends: Shift in relativities of house prices
Customer / industry trends 2. Shift in relativities of house prices For personal use only Median house prices have increased Sydney house prices: average wages 12.0 significantly compared to average wages In Sydney in 1980 the median 9.0 house price was about 6 times average annual earnings In
Slide 10: Customer / industry trends: Affordable housing
Customer / industry trends 3. Affordable housing For personal use only Public sector is no longer a substantial direct supplier of affordable housing Indirect public sector support for provision by private sector Dwelling approvals - public sector% of total approvals 12% 10% 8% 6% 4% 2% 0% 1984
Slide 11: Capital management
Capital management For personal use only Part way in process to close the Aspen security price discount to NTA AGM 2013 – 23% discount AGM 2014 – 12% discount Our focus to further close this gap and build a sustainable distribution: Complete the sale of non-accommodation assets Acquisiti
Slide 12: Competitive advantage
Competitive advantage For personal use only Ten year operational track record Nationwide footprint Expertise across multiple customer and product types Scale allows in-house expertise (eg. marketing) as well as technology Development track record Projects completed across a range of prop
Slide 13: Path forward – key priorities
Path forward – key priorities For personal use only Spearwood Industrial Estate Contamination classification process and leasing Committed to sale but only at appropriate value Finalise sale of last development assets Operational focus on the existing accommodation properties Cost discip
Slide 14: Development projects – short term
Development projects – short term For personal use only Dubbo Parklands •20 additional sites under consideration Shady River • Residential expansion opportunity •Development approval submitted for up to 82 new permanent sites Perth Vineyards Ashley Gardens, Melbourne • Residential expansion/ • 14 ad
Slide 15: Path forward – acquisitions
Path forward – acquisitions For personal use only Accommodation asset acquisitions Fragmented industry ownership facilitates acquisition opportunities Asset yields provide an attractive spread Increases business scale Focus on permanent residential, either as part of mixed assets (with sho
Slide 16: Acquisition case study: Harrington Holiday Park, NSW
Acquisition case study Harrington Holiday Park, NSW For personal use only Popular northern NSW coastal location Attractive yield spread at 12%, post acquisition costs Tourism and permanent mix Further development potential upside 16
Slide 17: Conclusion
Conclusion For personal use only Achievements for FY14 have provided the foundation to move forward - business is much more simple with much lower debt Strategic priorities for FY15 Sale of the remaining commercial property Optimise performance in the existing portfolio Seize strong return
Slide 18: 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