Aspen Group Limited · ASX:APZ
Aspen — FY2024 Earnings Presentation
34 slides from Aspen's earnings presentation, Aug 15, 2024
Slide 1: Aspen Group FY24 Results Presentation
Aspen Group FY24 Results Presentation 15 August 2024 Aspen is a Leading Provider of Quality Rentals on Competitive Terms
Slide 2: Contents
Alexandrina Cove Lifestyle Village, Coorong Quays SA Contents 1. FY24 Results 2. FY25 Outlook and Guidance Appendix A: Property Portfolio Appendix B: Earnings and Balance Sheet 2
Slide 3: Aspen's Business Model and Integrated Platform
Aspen’s Business Model and Integrated Platform Owner Proprietary approach - 100% focused on maximising sustainable returns for Aspen Provider of Quality Rentals on securityholders Competitive Terms Operator Intensive management of properties to boost profitability through provision of various lease
Slide 4: Aspen is Helping Solve Australia's Housing Problem
Aspen is Helping Solve Australia’s Housing Problem Proportion of Rentals Listed at <$400 per Week 70% Acute undersupply in all capital cities at less than 10% with limited solutions in sight 60% 50% 40% 37% 30% 20% 10% 6% 0% Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin ACT Combined April 2
Slide 5: FY24 Results Summary
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Slide 6: FY24 Highlights
FY24 Highlights Underlying EPS1 13.81 cents DPS 8.50 cents NAV2 $2.23 up 15% on FY23 up 10% on FY23 up 11% on 30 June 2023 Average Rent3 $317pw 50% NOI margin Increasing Scale Average Selling Price $332k Aspen owns 5,107 dwellings/sites 30% Development Profit margin plus plus 36% of Eureka with c.1,
Slide 7: Underlying Operating Earnings
Underlying Operating Earnings1 $m (unless otherwise stated) FY24 FY23 Change Cents Underlying EPS and DPS Rent and ancillary revenue $61.81 $50.26 23% 16.0 Average per Operational Dwelling/Site per Week2 $317 $276 15% 14.0 22% per annum compound growth in Net Rental Income3 $30.79 $24.31 27% EPS ove
Slide 8: Operations
Operations 4,000 Rental Portfolio – Avg. # Dwellings/Sites $400 Rental income has become more robust over time: 3,500 Aspen’s average rent has increased +7% ü Increased weighting to deep metropolitan markets only 3% per annum over past 5yrs volume 3,000 $350 ü Properties improved through refurbishme
Slide 9: Aspen Value-Add is Driving NOI Growth
Aspen Value-Add is Driving NOI Growth Contributions to Growth in Total Net Rent 70% Aspen aims to generate above-market returns by adding value to its properties and maintaining highly competitive rents 60% Vast majority of increase in net rent over past 5 years driven by value-add activities - acqu
Slide 10: Development
Development ü Creation of Lifestyle annuity land rentals and sale of Residential land Lifestyle - Total Settled Sales and Average Price lots typically within mixed communities +14% 80 avg. price $450,000 ü 9 active projects – diversified by geography, regulation, builders, 70 Lifestyle development p
Slide 11: Approved Development Pipeline
Approved Development Pipeline Sales to Date and Approved Pipeline (#) Lifestyle Four Lanterns NSW Sweetwater Grove NSW 62 Wodonga Gardens VIC 112 Alexandrina Cove SA 118 Lewis Fields SA 43 Highway 1 SA 41 Coorong Quays Mixed Park SA 200 Meadowbrooke WA 158 Sierra WA 141 Residential Coorong Quays SA
Slide 12: Normanville SA Project
Normanville SA Project § Normanville SA is an attractive lifestyle location on the west coast of the Fleurieu Peninsula only 77kms or 70-minute drive to Adelaide CBD § Nearby attractions include the Normanville township, white sandy beaches, Lady Bay Golf Resort (across the road), Marina St Vincent,
Slide 13: Normanville Development Application
Normanville Development Application 13
Slide 14: Improving Portfolio Dynamics
Improving Portfolio Dynamics Segment Underlying Profit Contribution ($m) The quality, diversity and long-term growth $45 Segment prospects of Aspen’s portfolio have improved WACR1 dramatically over the past 5 years $40 ü Increased weighting to deep, densifying Improving growth prospects and decreasi
Slide 15: Portfolio – Simplified Balance Sheet
Portfolio – Simplified Balance Sheet $m (unless stated) FY24 FY23 Change Net Asset Value per Security4 Total Dwellings & Sites # 5,107 4,794 7% $2.50 Rentals – Dwellings & Sites # 3,955 3,702 7% Book Value (ex. spare development land) $516 $431 20% 15% per annum compound growth in NAV over past 5 ye
Slide 16: $52m of Acquisitions in FY24
$52m of Acquisitions in FY24 Lindfield Apartments Sierra Lifestyle Village and Apartments Normanville SA land $200k per apartment $20k per approved dwelling/site $242k per HA July 2023 July 2023 September 2023 Burwood VIC Apartments $100k per apartment March 2024 Land at HWY 1 $104k per HA Additiona
Slide 17: Latest Acquisition – Viveash WA
Latest Acquisition – Viveash WA § Viveash is a Perth metropolitan suburb adjacent to Midlands and only 18kms or 30-minute drive to Perth CBD § The property spans almost 1 hectare and is operated as Over 55s residential with a community centre, 36 self-contained apartments averaging about 45sqms, and
Slide 18: FY25 Outlook and Guidance
2 FY25 Outlook and Guidance 18 18
Slide 19: FY25 - Expected Outlook and Guidance Upgrade
FY25 - Expected Outlook and Guidance Upgrade ü Continued high occupancy - significant demand at Aspen’s competitive rents FY25 Guidance1 ü Higher average rent: ⁃ Estimated market rent for Residential portfolio is currently $390pw - 12% above FY24 result ⁃ Lifestyle land rent increasing around 4% per
Slide 20: Appendix A: Property Portfolio
CoVE Maylands WA Appendix A Property Portfolio 2020
Slide 21: Aspen is Helping Solve Australia's Affordable Housing Problem
Aspen is Helping Solve Australia’s Affordable Housing Problem Creating affordable housing through disciplined acquisition and development processes § upcycling older buildings which are often unlivable Indigenous Programs § building new homes at relatively low cost § working with local indigenous gr
Slide 22: Portfolio Summary – 30 June 2024
Portfolio Summary – 30 June 2024 Total Dwellings/Sites – Location1 Operating v. Development2 Portfolio Aggregates Total Regional Total Operational Dwellings/Sites 3,955 Leased 29% Dwellings Leased Sites Dwellings 1,883 37% 41% Land Sites 2,072 Metropolitan Land 71% Development Pipeline 1,152 Develop
Slide 23: Residential Overview
Residential Overview $m unless stated Residential Residential Rental Pool – Avg. # Dwellings FY24 FY23 Change 1,000 $400 # Dwellings (close) 1,065 992 7% # Operational 1,065 872 22% 900 $350 # Refurbishment Pipeline 0 120 (100%) Total Book Value $261 $215 20% 800 $300 Average per dwelling $245k $217
Slide 24: Residential Properties
Residential Properties Residential1 WA NSW QLD VIC SA Perth Apartment Perth House Lindfield Burleigh Cooks Hill Uniresort Burwood Normanville Total Residential Portfolio6 Portfolio Apartments Heads Region Perth Metro Perth Metro Sydney Metro Newcastle Metro Brisbane Metro Gold Coast Metro Melbourne
Slide 25: Lifestyle Overview
Lifestyle Overview $m unless stated Lifestyle Lifestyle Rental Pool – Avg. # Sites FY24 FY23 Change 700 $400 # Sites (close) 1,308 1,090 20% # Operational 674 561 20% $350 # Development Pipeline 634 529 20% 600 Total Book Value $92 $75 23% Average per site $70k $69k 1% $300 500 WACR 6.2% 6.2% 0bps O
Slide 26: Lifestyle Properties
Lifestyle Properties Lifestyle NSW WA VIC SA Four Sweetwater Mandurah Wodonga Alexandrina Meadowbrooke Sierra Lewis Fields Total Lifestyle Lanterns Grove Gardens Gardens Cove Region Sydney Metro Newcastle Region South Coast South Coast Darling Range Albury-Wodonga Fleurieu Fleurieu Land Ownership Fr
Slide 27: Parks Overview
Parks Overview $m unless stated Park Communities Parks Rental Pool – Avg. # Dwellings/Sites FY24 FY23 Change 2,500 $400 # Dwellings / Sites (close) 2,458 2,395 3% # Operational 2,217 2,149 3% $350 # Development Pipeline 241 246 (2%) 2,000 Total Book Value $186 $163 14% $300 Average per dwelling/site
Slide 28: Park Properties
Park Properties Parks NSW SA NT WA Barlings Koala Tween Highway Adelaide Darwin Coorong Quays Aspen Karratha Total Parks Beach Shores Waters One CP FSR Region South Coast Central Coast South Coast Adelaide Metro Adelaide Metro Fleurieu Darwin Metro Pilbara Land Ownership Freehold Free/Leasehold Free
Slide 29: Land Development
Land Development Residential Land Development Inventory SA SA Total Residential Total Property Investment Property Mount Barker CQ Residential Land Development Portfolio Region Adelaide Hills Fleurieu Land Ownership Freehold Freehold Resident Tenure N/A N/A Total Land Area (HA) 200 7.2 24.4 31.6 231
Slide 30: Appendix B: Earnings and Balance Sheet
Sweetwater Grove, NSW Appendix B Earnings and Balance Sheet 30
Slide 31: Statutory Profit and Underlying Operating Earnings
Statutory Profit and Underlying Operating Earnings FY24 FY23 FY24 FY23 Summary Change Operations & Development Contributions Change $m $m $m $m Comprehensive income before deferred tax 69.85 62.25 12% Operations Revaluation of PP&E – Darwin FSR (5.58) (6.52) Rental & ancillary services revenue 61.81
Slide 32: Reconciliation of Statutory Profit to Underlying Operating Earnings
Reconciliation of Statutory Profit to Underlying Operating Earnings FY24 FY23 $m $m Underlying Operating Earnings is intended to Statutory Net Profit before deferred tax 64.27 55.74 approximate underlying Funds from Operations (FFO) on average over time. Deferred tax (expense)/benefit recognised (15
Slide 33: Summary Balance Sheet and Capital Management
Summary Balance Sheet and Capital Management 30 June 24 30 June 23 Key Metrics Change $m $m Gearing is below Aspen’s long-term target 30-40% Total Assets 669.0 553.2 21% Net Debt 161.5 129.6 25% Not all property value is currently included in the Net Asset Value (NAV) 433.7 361.2 20% debt facility c
Slide 34: 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