Slide 1: Aspen Group FY22 Financial Results Presentation
Aspen Group FY22 Financial Results Presentation August 2022 Newcastle, NSW Maylands, WA 1
Slide 2: Contents
Residents at Four Lanterns Estate, NSW Contents 1 FY22 Results Summary 2 Portfolio Performance 3 Outlook & Guidance 4 Appendices Sweet Water Grove – marketing campaign, NSW
Slide 3: FY22 Results Summary
1 FY22 Results Summary Darwin Freespirit Resort, NT - winner of Best Family Friendly Venue (Awards for excellence 2022) 3
Slide 4: FY22 – Operating Earnings & Distributions
FY22 – Operating Earnings & Distributions Profits increased materially in a challenging environment with portfolio positioned for continued growth... Property NOI Total Revenue Operating Earnings1 Operating EPS DPS $14.8m +17% $46m $11.8m 8.65 cents 6.60 cents Development Profit Retained more Earnin
Slide 5: FY22 - Capital
FY22 - Capital Aspen has continued to grow its business, portfolio and value while managing risks... Portfolio WACR1 Net Debt Approved dwellings/sites Total Asset Value NAV per security 6.4% $117m 4,646 $452m $1.79 Value per dwelling/site Gearing3 +69% +84% +36% $85k 28% (compared to FY21) Net Asset
Slide 6: Material Value Creation
Material Value Creation 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 by asset value) Av
Slide 7: Portfolio Performance
2 Portfolio Performance Alexandrina Cove Lifestyle Village, Coorong Quays, SA 7
Slide 8: Residential Portfolio (48% of portfolio value)
Residential Portfolio (48% of portfolio value) $m unless stated Residential Portfolio CPI – Cost of New Dwelling for Owner Occupiers ▪ Aspen’s portfolio has been acquired at well below FY22 FY21 Change 25% replacement cost which enables us to charge competitive rents while also generating attractive
Slide 9: Perth Apartment Portfolio – Case Study: Peninsula Road, Maylands
Perth Apartment Portfolio – Case Study: 126 Peninsula Road, Maylands Valuation uplift of $8.8m - 127% above total cost ▪ Single building with 4 levels, 68 two bedroom apartments, on grade and underground parking ▪ Apartment refurbishment works complete – only external works remaining (mainly landsca
Slide 10: Residential Portfolio – Expected Stabilised NOI and Potential NAV Uplift
Residential Portfolio – Expected Stabilised NOI and Potential NAV Uplift $m $m Residential Portfolio NOI Residential Projects - Expected Value Add $9.00 $140.00 $8.00 Implied average portfolio rent of $120.00 $20.4m Average Perth Apartments Portfolio (PAP) Imbedded $287pw at 55% NOI margin value of
Slide 11: Retirement Communities (17% of portfolio value)
Retirement Communities (17% of portfolio value) $m unless stated Retirement Communities Evolution of Aspen's LLC Development Pipeline FY22 FY21 Change Total Approved Sites (Current Book Value per Site) ▪ Land Lease Community land rental rates are 600 typically increasing 3-5% per annum – we # Dwelli
Slide 12: Park Communities (35% of portfolio value)
Park Communities (35% of portfolio value) $m unless stated Park Communities FY22 FY21 Change # Dwellings / Sites 2,192 1,562 40% Park Community portfolio NOI has been robust over the past few years despite COVID, bushfires, floods, building industry turmoil and expiry of Woodside’s lease at Aspen Ka
Slide 13: Outlook & Guidance
3 Outlook & Guidance UMG Co-Living (Uniresort), Qld 13
Slide 14: Outlook & Guidance
Outlook & Guidance Outlook ▪ Aspen’s platform has improved materially – more of the executive team is located closer to our ▪ Building industry turmoil: assets and we have upgraded the “cluster” manager structure in favour of more enthusiastic, - Generally, our projects have been delayed 3-6 months
Slide 15: Appendix A: Aspen's Business and Property Portfolio
Appendix A Aspen’s Business and Property Portfolio Highway 1 Tourist & Caravan Park 15
Slide 16: Aspen's Business Model
Aspen’s Business Model Aspen Provides Quality Accommodation on Competitive Terms to Australian Households 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 17: Massive Demand for Aspen's Lower Cost Accommodation
Massive Demand for Aspen’s Lower Cost Accommodation Aspen’s core target market is the c.40% of Australian households who can afford to pay no more than $400pw in rent... Market in Equilibrium: • Supply / Demand in Balance • Average / Normal Returns Aspen’s Target Market Market Dislocation: • Demand
Slide 18: Current Portfolio Summary
Current Portfolio Summary Current Portfolio Aggregates – Including Land Development Inventory Aspen portfolio is valued at $396m: ▪ Average value of $85k per approved dwelling/site Land Area 178 hectares ▪ Only $2.2m per hectare of land (including the value of dwellings) Approved Sites 4,646 ▪ WACR
Slide 19: Portfolio Diversity
Portfolio Diversity 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 Operating and Development Mix Park Regional Leased Lease
Slide 20: Geographic Diversity
Geographic Diversity Land Area NT (Hectares) Dwellings/Sites Land Area WA (Hectares) Dwellings/Sites 19 Darwin FreeSpirit 10.8 461 14 Mandurah 6.8 158 15 AKV 2.9 180 19 16 Perth House Portfolio 2.5 67 Land Area Dwellings/ Queensland (Hectares) Sites 17 Perth Apartment Portfolio 4.7 514 18 Meadowbroo
Slide 21: Acquisition of MHIF / Coorong Quays Completed June 2022
Acquisition of MHIF / Coorong Quays Completed 1 June 2022 Retirement Community ▪ Coorong Quays, Hindmarsh Island, South Australia: - Masterplanned community with over 3,000 approved sites across c.300 hectares - Over 1,650 sites developed and income producing (including over c.1,200 residential site
Slide 22: Portfolio Growth and Management
Portfolio Growth and Management ▪ Aspen’s portfolio composition and income streams have Acquisition Track Record1 improved materially over the past few years. + Coorong Quays o Increased weighting to: $m + Meadowbrooke Lifestyle Estate + Perth Apartments Portfolio - Metropolitan locations + Wodonga
Slide 23: Residential Portfolio
Residential Portfolio Residential1 WA NSW QLD Perth Apartment Perth House Lindfield Kiah Lindfield Kalinda Cooks Hill Uniresort Burleigh Heads Total Residential Portfolio6 Portfolio Region Perth Metro Perth Metro Sydney Metro Sydney Metro Newcastle Metro Brisbane Metro Gold Coast Metro Land Ownershi
Slide 24: Residential Portfolio (48% of portfolio value)
Residential Portfolio (48% of portfolio value) Perth Apartment Portfolio (PAP) UMG Co-Living Community (UniResort) ▪ 514 apartments (17 buildings) being refurbished-to-rent ▪ 64 units / 304 ensuited rooms (plus caretakers unit) – currently leased predominantly to students ▪ Expected total cost inclu
Slide 25: Retirement Community Portfolio
Retirement Community Portfolio Retirement NSW WA VIC SA Four Sweetwater Mandurah Gardens Meadowbrooke Wodonga Gardens Lewis Fields Alexandrina Cove Total Retirement Lanterns Grove Region Sydney Metro Newcastle Region South Coast South Coast Albury-Wodonga Fleurieu Fleurieu Land Ownership Freehold Fr
Slide 26: Retirement Communities
Retirement Communities Four Lanterns (134 total sites – 4 in development pipeline) ▪ 9 houses sold in FY22 at an average price of $433k (inc. GST) ▪ Converting 1 old house and an amenities block into 4 sites - new houses being installed and expected to sell in 1H FY23 Sweetwater Grove (215 total sit
Slide 27: Park Community Portfolio
Park Community Portfolio Park Communities NSW SA NT WA Barlings Koala Tween Highway Adelaide Darwin Coorong Quays AKV Total Parks Portfolio Beach Shores Waters One CP FSR Region South Coast Central Coast South Coast Adelaide Metro Adelaide Metro Fleurieu Darwin Metro Pilbara Land Ownership Freehold
Slide 28: Park Communities – Significant Value-Add Opportunities
Park Communities – Significant Value-Add Opportunities Park Communities portfolio is valued on a WACR of 9.2% – high relative to bond rates and most ACP Value Comparison - Indexed other real estate asset classes $150 $140 These properties also have significant growth potential through redevelopment
Slide 29: Appendix B: Financial Accounts
Appendix B New cabins for sale from $100,000 at Barlings Beach Holiday Park, NSW Financial Accounts 29
Slide 30: Operating Profit – FY22
Operating Profit – FY22 FY22 FY21 Key Metrics Change Statutory Profit up 197% - includes revaluation gains $m $m Statutory Profit 75.38 25.39 197% Operating Earnings up 34% to $11.84m – Operating EPS up 14% to 8.65 cents Total Revenue 46.02 35.07 31% Rental and ancillary services revenue up 22% to $
Slide 31: Reconciliation of Statutory Profit to Operating Profit
Reconciliation of Statutory Profit to Operating Profit FY22 FY21 % Change $m $m Statutory Net Profit after Tax 75.38 25.39 197% Depreciation / R&M / SIBC ▪ PPE Depreciation of $0.99m under IFRS does not reflect the true expense Adjustments: ▪ A total of $1.61m was spent in FY22 maintaining the prope
Slide 32: Summary Balance Sheet and Capital Management
Summary Balance Sheet and Capital Management Utilised 30 June 22 30 June 21 Expiry Limit Available Key Metrics Change $m 30 June 2022 $m $m Debt Facilities April 2024 $156.00 $129.00 $27.00 Total Assets 452.5 246.5 84% Total Margin (above BBSW) 2.000% - Property Assets 412.6 228.7 80% Swaps - Floati
Slide 33: 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 33
Slide 34: Statutory Accounts Extract: Balance Sheet - Assets
Statutory Accounts Extract: Balance Sheet - Assets The above should be read in conjunction with the accompanying notes contained in the financial statements 34
Slide 35: Statutory Accounts Extract: Balance Sheet – Liabilities and Equity
Statutory Accounts Extract: Balance Sheet – Liabilities and Equity The above should be read in conjunction with the accompanying notes contained in the financial statements 35
Slide 36: Statutory Accounts Extract: Cash Flow Statement
Statutory Accounts Extract: Cash Flow Statement The above should be read in conjunction with the accompanying notes contained in the financial statements 36
Slide 37: Statutory Accounts Extract: Segment Information
Statutory Accounts Extract: Segment Information ^ The above should be read in conjunction with the accompanying notes contained in the financial statements 37
Slide 38: Appendix C: ESG
Appendix C ESG 38
Slide 39: 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 40: Environmental, Social and Corporate Governance Program
Environmental, Social and Corporate Governance Program Environmental (continued) - Recycling and composting facilities - composting food reduces CO2 emissions relative to burying food - Relatively high levels of vegetation that absorbs CO2 - Replacing our vehicles with more efficient or electric/hyb
Slide 41: Appendix D: Distribution & Tax History
Appendix D Aspen Karratha Village, WA Distribution & Tax History 41
Slide 42: Distribution & Tax History
Distribution & Tax History Aspen Group Ltd Aspen Property Trust1 Period / Quarter Total Amount Paid Payment Date Distribution Type Ended 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 43: 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