Aspen Group Limited · ASX:APZ
Aspen — Shareholder Meeting (November 2007)
43 slides from Aspen's shareholder meeting presentation, Nov 26, 2007
Slide 1: Presentation to 2007 Annual General Meeting
For personal use only Aspen Group Presentation to 2007 Annual General Meeting “Creating wealth through intelligent property investment” 1 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 2: Contents
Contents For personal use only 1. Overview 2. 2007 Financial Year in Review 3. 2008 Financial Year To Date 4. Property Portfolio 5. Funds Management 6. Summary and Outlook 2 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 3: Overview: Business Structure
1. Overview Business Structure For personal use only Investment Funds Equity Property Management Investments % Revenue 56% 44% Included in funds management ¾ Portfolio of diversified ¾ Driving DPU and EPU Growth ¾ Co-invests in funds property assets ¾ Efficient use of capital – Strategic stakes ¾ Ch
Slide 4: Personnel
1. Overview Personnel For personal use only BOARD OF DIRECTORS Reg Gillard Non-executive Chairman Terry Budge Non-executive Director Angelo Del Borrello Managing Director Seng Fai Chan Non-executive Director Gavin Hawkins Executive Director Finance Matthew McCann Non-executive Director ASPEN GROUP A
Slide 5: Track Record
1. Overview Track Record For personal use only Aspen continues to drive earnings and distribution growth FY04 (¢) FY05 (¢) FY06 (¢) FY07 (¢) 3YR CAGR EPS* 8.4 +4.2% 8.75 +46.4% 12.81 +21.9% 15.62 23.0% DPS 7.25 +15.2% 8.35 +19.8% 10 +27.5% 12.75 20.7% NTA 70 +15.7% 81 +25.2% 101.4 +30.2% 132 23.5% *
Slide 6: Strong Market Performance
1. Overview Strong Market Performance For personal use only Aspen continues to outperform ASX/S&P 200 Property Index Total Returns 650 610 570 APZ S&P 200 530 490 450 410 370 330 290 250 210 170 130 90 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 6 “Creating wealth through i
Slide 7: Contents
Contents For personal use only 1. Overview 2. 2007 Financial Year in Review 3. 2008 Financial Year To Date 4. Property Portfolio 5. Funds Management 6. Summary and Outlook 7 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 8: 2007 Financial Year in Review: Highlights
2. 2007 Financial Year in Review Highlights For personal use only ¾ 18% growth in property portfolio on $46.1m of revaluations ¾ Underlying EPS increased 22% ¾ DPS increased 28% ¾ Underlying EPS 23% above DPS ¾ Acquisition and successful syndication of three residential land estates ¾ Significant gr
Slide 9: Performance
2. 2007 Financial Year in Review Performance For personal use only FY FY % 2007 2006 Change Net Profit After Tax 73.82 34.49 Å 114% Underlying Net Profit* ($’m) 33.49 18.47 Å 81% Underlying EPS* (cents) 15.62 12.81 Å 22% DPS (cents) 12.75 10.00 Å 28% Underlying Earnings above 2.87 2.81 Å 2% Distribu
Slide 10: Financial Position
2. 2007 Financial Year in Review Financial Position For personal use only FY FY % 2007 2006 Change Gross Assets Under Management ($’m) 1,224 620 Å 97% Investment Property (Revaluations) ($’m) 336 284 Å 18% Gearing 31% 47% Æ 16% NTA (cents) 132 101 Å 31% 10 “Creating wealth through intelligent proper
Slide 11: Contents
Contents For personal use only 1. Overview 2. 2007 Financial Year in Review 3. 2008 Financial Year To Date 4. Property Portfolio 5. Funds Management 6. Summary and Outlook 11 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 12: Capital and Debt Structure
3. 2008 Financial Year To Date Capital and Debt Structure For personal use only Capital Structure Current Substantial Securityholders Stapled Securities on Issue 250.3 million UBS Global Asset Management Unlisted Options on Issue 0.2 million Deutsche (Institutional Group) Market Cap (at $2.68 closin
Slide 13: 2008 Financial Year To Date: Highlights
3. 2008 Financial Year To Date Highlights For personal use only ¾ Increase in distribution from 3.5 cents to 3.875 cents per security ¾ L’Oreal secured as key tenant for St Kilda Rd property ¾ Acquisition of 8 properties for Aspen Parks for $54.6 million ¾ Established Aspen Communities ¾ Additional
Slide 14: Contents
Contents For personal use only 1. Overview 2. 2007 Financial Year in Review 3. 2008 Financial Year To Date 4. Property Portfolio 5. Funds Management 6. Summary and Outlook 14 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 15: Property Portfolio Overview
4. Property Portfolio Overview For personal use only ¾ Strong revaluation performance in FY07 – 18% increase ¾ Secure lease expiry profile of 4.65 years ¾ St Kilda Rd. tenant risk (Hewlett Packard) eliminated with 10 yr L’Oreal lease ¾ Occupancy rate 96% across portfolio ¾ Sound sector and geographi
Slide 16: Property Portfolio Summary
4. Property Portfolio Summary For personal use only Book Value Location Sector Occupancy A$ millions Septimus Roe Square Perth, WA Office 76.6 100% Alcoa Office Complex Booragoon, WA Office 22.9 100% 564 St. Kilda Road Melbourne, VIC Office 27.6 100% 33 York Street Sydney, NSW Office 3.2 100% Elders
Slide 17: Leasing Profile
4. Property Portfolio Leasing Profile For personal use only Lease expiry profile by financial year 30% 25% Lease % of 20% Key Tenants Expiry Income Elders 2012 16% 15% DIMIA 2015 7% 10% Alcoa 2014 6% L’Oreal 2018 5% 5% Centrelink 2011 5% Total 39% 0% 2008 2010 2012 2014 2016 2018 2020 17 “Creating w
Slide 18: Diversification
4. Property Portfolio Diversification For personal use only 18 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 19: Contents
Contents For personal use only 1. Corporate Structure 2. 2007 Financial Year in Review 3. 2008 Financial Year To Date 4. Property Portfolio 5. Funds Management 6. Summary and Outlook 19 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 20: Funds Management Overview
5. Funds Management Overview For personal use only ¾ Leverages Aspen’s core property management expertise ¾ Provides investment opportunities not really available to investors ¾ Important source of EPS/DPS growth with efficient use of Aspen’s capital ¾ Unlisted open ended Funds provide a natural gro
Slide 21: Divisions
5. Funds Management Divisions For personal use only Aspen Aspen Aspen Aspen Aspen Aspen Branding Parks Diversified Living Developments Villages Communities Development Affordable Retirement Sector Resort Park Core Income Syndicated Land Fund Series Living/Retirement Aged Care Asset value $217 millio
Slide 22: New Initiatives
5. Funds Management New Initiatives For personal use only Aspen Parks and Aspen Diversified to become platform friendly ¾ Targeting personal superannuation investors and model portfolios ¾ Growing popularity of Aspen Parks with financial planners as a portfolio diversifier ¾ Expand current platform
Slide 23: Parks Property Fund: Strategy
5. Funds Management Aspen Parks Property Fund For personal use only Strategy ¾ Strategic land holds - Parks generally in excellent locations with potential for capital appreciation ¾ Potential to develop excess land and generate capital upside ¾ Fragmented industry providing asset growth potential ¾
Slide 24: Parks Property Fund
5. Funds Management Aspen Parks Property Fund For personal use only Coral Bay Monkey Mia Roxby Coogee Downs 24 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 25: Parks Property Fund locations
5. Funds Management Aspen Parks Property Fund For personal use only Kununurra Island Gateway Cooke Point Balmoral Pilbara Exmouth Ningaloo Reef Monkey Mia BRISBANE Roxby Downs Perth Port Augusta Wallamba River Coogee Beach Woodman Point Horseshoe SYDNEY ADELAIDE Wymah Valley Yarraby Twofold Bay Exis
Slide 26: Diversified Property Fund: Strategy
5. Funds Management Aspen Diversified Property Fund For personal use only Strategy ¾ Leverages Aspen’s core commercial property expertise ¾ Target properties in the $5 – $30 million range (too large for individual investors but too small for LPTs, institutional investors) ¾ Competitive distribution
Slide 27: Diversified Property Fund properties
5. Funds Management Aspen Diversified Property Fund For personal use only Property Location Use Acquisition Date Book Value Springvale Road Mulgrave, VIC Industrial Jun 2007 $20.0m Homemaker City Castle Hill NSW Retail Feb 2006 $28.0m Holeproof Complex Nunawading VIC Industrial Dec 2005 $28.0m Mount
Slide 28: Living
5. Funds Management Aspen Living For personal use only Aspen Aspen Fern Bay West Swan Seaside Dunsborough Whitsunday Total Estate Lakes Shores Village Number of Lots 1,143 669 1135 850 3,797 Remaining Gross Realisable 406 189 334 238 1,167 Value ($’m) Location Bowen Perth Stockton Dunsborough WA QLD
Slide 29: Living: Strategy
5. Funds Management Aspen Living For personal use only Strategy ¾ Leverages Aspen’s expertise in residential subdivision to provide attractive returns to investors and long term recurring funds management income for Aspen. ¾ Aim to acquire advanced developments which are revenue generating at purcha
Slide 30: Living: Aspen Dunsborough Lakes
5. Funds Management Aspen Living For personal use only Aspen Dunsborough Lakes 30 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 31: Living: Fern Bay and Whitsunday Shores
5. Funds Management Aspen Living For personal use only Fern Bay Seaside Village Whitsunday Shores 31 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 32: Aspen Development Fund No1: Background
5. Funds Management Aspen Developments For personal use only Aspen Development Fund No1 Background ¾ Acquisition of the Caversham Property Group (property division of Futuris) ¾ Settled May 2007 ¾ Off market transaction ¾ First in series of proposed development funds Key Elements of Futuris Transact
Slide 33: Aspen Development Fund No.1 Portfolio Breakdown
5. Funds Management Aspen Developments For personal use only Aspen Development Fund No.1 Portfolio Breakdown Estimated Key Location Value Projects Residential Subdivisions $64.4 million - Byford By The Scarp WA - Chittering Valley WA - Geraldton WA Commercial Construction $71.5 million - City Centra
Slide 34: Developments
5. Funds Management Aspen Developments For personal use only 34 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 35: Campbelltown Private Hospital
5. Funds Management Aspen Developments For personal use only Campbelltown Private Hospital 35 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 36: Campbelltown Retirement Village
5. Funds Management Aspen Developments For personal use only Campbelltown Retirement Village 36 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 37: Villages: Strategy
5. Funds Management Aspen Villages For personal use only Strategy ¾ Management of the development of residential accommodation villages ¾ Acquisition of sites through development land controlled by Aspen (eg. Aspen Parks and Aspen Living) but will also acquire sites from third parties ¾ Baby boomers
Slide 38: Communities: Strategy
5. Funds Management Aspen Communities For personal use only Strategy ¾ Announced division commencement in August 2007 ¾ 200-300 home villages on 7-12ha land ¾ Utilise development expertise of Aspen Developments (formerly Caversham Property) ¾ Capitalise on strong and growing demand for over 65’s liv
Slide 39: Contents
Contents For personal use only 1. Corporate Structure 2. 2007 Financial Year in Review 3. 2008 Financial Year To Date 4. Property Portfolio 5. Funds Management 6. Summary and Outlook 39 “Creating wealth through intelligent property investment” Annual General Meeting 2007
Slide 40: DPS and EPS Track Record
6. Summary DPS and EPS Track Record For personal use only EPS/ DPS Growth Profile 16 15.6 15.5 4 Year EPS Earnings and distribution growth has CAGR 20.5% 14 been driven by: 12.8 12.8 ¾ Growth in the funds management business 12 4 Year DPS C e n t s P e r S e c u rit y ¾ Expansion of syndicated land
Slide 41: Strong Asset Growth
6. Summary Strong Asset Growth For personal use only Assets Under Management ($m) 1,400 ¾ Strong pipeline of acquisitions for funds 1,200 ¾ Extensive networks to source deal 1,000 flow ¾ Proven ability to develop unique funds 800 ¾ Strong team of professionals 600 ¾ Proven capital raising track reco
Slide 42: Outlook
6. Outlook For personal use only ¾ Strong balance sheet will enable further asset acquisition opportunities for investment portfolio ¾ Growth from new and existing funds management initiatives ¾ Focus on earnings growth through astute investment selection (not just growth for growth's sake) ¾ Contin
Slide 43: 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