Slide 1: Aspen Group FY20 Investor Update
Aspen Group FY20 Investor Update 21 August 2020 Barlings Beach, NSW
Slide 2: Contents
Residents at Four Lanterns Estate, NSW Contents 1 FY20 Financial Highlights & Results 2 Operations & Development 3 Projects 4 Portfolio 5 Managed Funds 6 Statutory Accounts Extract 7 Appendices Sweet Water Grove – marketing campaign, NSW
Slide 3: FY20 Financial Highlights and Results
1 FY20 Financial Highlights and Results Four Lanterns Estate, Leppington NSW Sweet Water Grove Estate, Tomago, NSW 3
Slide 4: Aspen Group Overview
Aspen Group Overview 1.1 Current Lease Offering ▪ Aspen is a leading provider of quality accommodation on (by number of dwellings and land sites) competitive terms in the residential, retirement and short stay sectors ▪ Aspen has enormous opportunities within Australia’s $7 trillion residential mark
Slide 5: Aspen's Competitive Value and Rents
Aspen’s Competitive Value and Rents 1.2 As at June 20201 Portfolio Value $174m Number of Dwellings/Sites 2,264 Average Value per Dwelling/Site $77k WACR 8.1% Land Lease Workforce Houses Apartments Mixed Use Parks Communities Accommodation Average Value per Dwelling/Site $252k $276k $67k $77k $61k Av
Slide 6: FY20 Results Summary
FY20 Results Summary 1.3 Aspen’s truly affordable accommodation offering is growing rapidly and generating attractive returns… STRATEGY FINANCIAL ▪ Key strategic priority is positioning for ▪ Portfolio value of $174m1 – up 36% on FY19 leadership and scale in the provision of ▪ Gearing 18.8% - covena
Slide 7: Financial Performance – FY20
Financial Performance – FY20 1.4 FY20 FY19 ▪ Revenue – up 2% mainly attributable to increases at Key Metrics Change $m $m Highway 1, AKV, and the Lindfield apartments and Perth Residential Portfolio acquisitions during the Statutory profit 11.87 (0.96) 1,338% year, largely offset by the collapse in
Slide 8: COVID-19 Impact - Q4 FY20 Profitability
COVID-19 Impact - Q4 FY20 Profitability 1.5 FY20 Q4 FY20 Q4 ▪ The negative impacts of COVID-19 became evident in March 2020 Summary Metrics and affected operating performance over the entire 4Q FY20 $m $m Contribution ▪ During the period, some state governments placed restrictions on Rental and anci
Slide 9: Reconciliation of Statutory Profit to Operating Profit
Reconciliation of Statutory Profit to Operating Profit 1.6 FY20 FY19 Asset revaluations $m $m ▪ 5 properties were externally revalued during the period and the remainder were subject to review by Directors Statutory Net Profit after Tax 11.87 (0.96) ▪ Revaluation gains were recorded at Mandurah Gard
Slide 10: Balance Sheet and Capital Management
Balance Sheet and Capital Management 1.7 FY20 FY19 ▪ Property Assets increased 30% - driven by the acquisition of Key Metrics $m $m Lindfield Apartments and Perth Residential Portfolio during the year and net gains from property revaluations Property Assets4 167.0 128.0 ▪ In June 2020, Aspen raised
Slide 11: FY21 Outlook
FY21 Outlook 1.8 Aspen is not quantifying FY21 EPS and DPS guidance at this stage given the continuously evolving economic and operating conditions during the COVID-19 pandemic - we aspire to continue to grow the business and profitability in FY21 against the competing challenges and opportunities…
Slide 12: Operations and Development & Trading
Treatts Rd – Lindfield Apartments 2 Operations and Development & Trading 12
Slide 13: Property NOI – FY20 vs. FY19
Property NOI – FY20 vs. FY19 2.1 Residential Land Lease Mixed-Use Workforce Short Stay Perth Four Tween Barlings Residential Lanterns AKV Waters Beach New +11% +6% (65%) +14% Koala Lindfield Mandurah Highway Shores Apartments Gardens One1 (10%) New +33% +13% Adelaide CP Sweetwater Grove (25%) (9%) D
Slide 14: Operational Performance and Opportunities
Operational Performance and Opportunities 2.2 Residential Land Lease Mixed-Use Perth Portfolio Lindfield Apartments Four Lanterns Mandurah Gardens Sweetwater Grove Highway One • Purchased in late • Acquired 20 August • NOI up 11% on FY19 • NOI up 33% on FY19 • NOI down 9% on FY19 • NOI up 13% compar
Slide 15: Operational Performance and Opportunities
Operational Performance and Opportunities 2.3 Mixed-Use (continued) Workforce Short Stay Barlings Beach AKV Adelaide CP Koala Shores Tween Waters Darwin Freespirit • NOI up 14% on FY19 • NOI up 6% on FY19 • NOI down 25% on FY19 • NOI down 10% on FY19 • NOI down 65% on FY19 • NOI 61% below FY19 follo
Slide 16: Development & Trading Activity
Development & Trading Activity 2.4 Aspen continued to grow its development and trading Development & Trading Activity No. of Sales income in FY20: Sales 60 $12.0M 50 ▪ Development and sales of houses under a land $10.0M Value up 96% lease model: Volume up 43% 40 $8.0M - Profit of $676k from the sale
Slide 17: Development & Trading Activity
Development & Trading Activity 2.5 Strong growth in the profitable development and trading of house and land inventory… House and Land Sales Summary House & Lot Inventory - FY2020 No. of Sales Average Sales Price Houses for Developed Future Pipeline Sale Land Lots (Lots) FY2020 FY2019 Variance FY202
Slide 18: Projects
Treatts Rd – Lindfield Apartments 3 Projects BIG4 Koala Shores Holiday Park, NSW 18
Slide 19: Sweetwater Grove Transformation
Sweetwater Grove Transformation 3.1 Welcome to Sweetwater Grove, a warm and relaxed lifestyle community in NSW’s Hunter Region… New House – asking price $229,000 Modern and spacious kitchen in New House ▪ Rebranded from Tomago Van Village ▪ The whole community is being enhanced with new facilities i
Slide 20: Darwin Freespirit Resort - Entertainment Facilities
Darwin Freespirit Resort - Entertainment Facilities 3.2 ▪ Over the past 12 months Darwin Freespirit Resort’s entertainment offering has been significantly enhanced with the installation of a new marquee and a sports lounge and gaming room ▪ These additions are very complimentary to the existing acco
Slide 21: Highway - New Cabins & Masterplanning
Highway 1 - New Cabins & Masterplanning 3.3 ▪ Aspen is continuously considering ways to provide its customers with quality accommodation products at the lowest possible prices and rents ▪ Trial of new high-tech cabins – four currently being installed: o Modern design, space & energy efficient, cheap
Slide 22: Treatts Road Lindfield – Tenant Remix & Refurbishment
Treatts Road Lindfield – Tenant Remix & Refurbishment 3.4 ▪ This property is currently registered as a Retirement Village (RV) ▪ Upon acquisition in August 2019, 12 of the apartments were occupied by RV tenants and the remainder by residential tenants ▪ We have offered all the RV tenants the opportu
Slide 23: Sustainability & Cost Saving Initiatives
Sustainability & Cost Saving Initiatives 3.5 ▪ Aspen has undertaken various initiatives to reduce its environmental impact - these measures also generally result in lower operating costs ▪ Current projects include: - Installation of solar panels: currently installed at 6 properties, with further rol
Slide 24: Key Development Projects & Pipeline
Key Development Projects & Pipeline 3.6 Ample investment opportunities exist within the current portfolio to deliver attractive returns… Development Timeline Available Key Projects FY20 FY21 FY22 FY23 Sites1 Developments – new income producing sites / enhance quality of broader asset and tenancies /
Slide 25: Portfolio
Four Lanterns Estate, Leppington NSW Newcastle, NSW 4 Portfolio Newcastle, NSW 25
Slide 26: Portfolio Summary
Portfolio Summary 4.1 Portfolio Aggregates1 ▪ Aspen currently has 15 properties valued at approximately $174m: o Average value of approximately $77k per approved dwelling/site Properties* 15 o WACR of 8.1% Land Area 62.5 hectares ▪ Aspen also manages 3 major residential and retirement projects and e
Slide 27: FY20 Acquisitions – Attractively Priced and Profitable
FY20 Acquisitions – Attractively Priced and Profitable 4.2 Apartments House Portfolio Co-Living Community Townhouses 1 Lindfield 2 Perth 3 Cooks Hills, Newcastle 4 Burleigh Heads, Qld Status: Settled August 2019 Settled November 2019 Settled July 2020 Under Contract Purchase Price: $8.65m $20m $3.75
Slide 28: Aspen's Portfolio Composition & Growth
Aspen’s Portfolio Composition & Growth 4.3 ▪ Aspen’s portfolio composition and income streams have Property Type Property Type improved materially over the past 12-18 months (value weighted) (NOI weighted) o Increased weighting to: - Metropolitan locations - More stable, less seasonal rental income
Slide 29: Aspen's portfolio is geographically diversified…
Aspen’s portfolio is geographically diversified… 4.4 Land Area Land Area WA Sites NT (Hectares) Sites Property Type by Location (Hectares) 11 Mandurah 6.8 158 14 Darwin FreeSpirit 10.8 461 (value weighted) 12 AKV 2.9 180 13 Perth Residential 3.4 84 14 Total Sites 2,264 up 10% on FY19 Regional (39%)
Slide 30: Aspen Group: Portfolio Summary
Aspen Group: Portfolio Summary 4.5 New South Wales Queensland Cooks Hill Four Lindfield Sweetwater Koala Barlings Tween NSW Burleigh Lindfield Kiah Co-Living Lanterns Kalinda Grove Shores Beach Waters TOTAL Heads7 Community6 Sydney Sydney Sydney Greater Greater Greater South South Region Metro Metro
Slide 31: Aspen Group: Portfolio Summary
Aspen Group: Portfolio Summary 4.6 WA South Australia NT GROUP Mandurah Perth Adelaide Highway Darwin AKV WA TOTAL SA TOTAL TOTAL Gardens Residential CP One FSR South Region Coast Pilbara Perth Metro Adelaide Metro Adelaide Metro Darwin Metro Land Ownership Freehold Freehold Freehold Freehold Freeho
Slide 32: Managed Funds
5 Managed Funds Coorong Quays, SA 32
Slide 33: Funds Managed by Aspen
Funds Managed by Aspen 5.1 Coorong Quays ▪ Operating business performance was significantly above FY20 forecast ▪ Marina berth occupancy up 9% in FY20 ▪ Continued good land sales activity – 23 lots in FY20 ▪ Completed construction of the new Coorong Quays Club facility – a community facility for the
Slide 34: Aspen Group Statutory Accounts Extracts
6 Aspen Group Statutory Accounts Extracts 16 Treatts Rd, Lindfield Apartments, NSW Seabreeze Villa cabins – Barlings Beach, NSW 34
Slide 35: Statutory Accounts Extract: Statement of Profit and Loss
Statutory Accounts Extract: Statement of Profit and Loss 6.1 PLACEHOLDER 35
Slide 36: Statutory Accounts Extract: Balance Sheet
Statutory Accounts Extract: Balance Sheet 6.2 36
Slide 37: Statutory Accounts Extract: Cash Flow Statement
Statutory Accounts Extract: Cash Flow Statement 6.3 PLACEHOLDER 37
Slide 38: Statutory Accounts Extract: Segment Information
Statutory Accounts Extract: Segment Information 6.4 PLACEHOLDER 38
Slide 39: Appendices
7 Appendices 16 Treatts Perth, WA Rd, Lindfield Apartments, NSW Seabreeze Villa cabins – Barlings Beach, NSW 39
Slide 40: Distribution & Tax History
Distribution & Tax History 7.1 Aspen Group Ltd Aspen Property Trust1 Period / Quarter Total Amount Paid Date Paid Distribution Type Tax Deferred / Ended cents Cps Cps Non 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 Cap
Slide 41: 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