Slide 1: 2008 Annual Results Presentation
For personal use only Aspen Group 2008 Annual Results Presentation 18 August 2008 “Creating wealth through intelligent property investment” Annual Results 2008 1
Slide 2: Corporate Structure
Aspen Group Corporate Structure For personal use only Investment Funds Equity Property Management Investments • 12 properties • 7 Divisions • 8 Investments Assets Managed • $394M • $1,053M • $82M • Portfolio of diversified • Driving DPU and EPU Growth • Co-invests in funds property assets - Strategi
Slide 3: Contents
Contents For personal use only 1. Highlights 2. Financial Summary 3. Property Portfolio 4. Funds Management 5. Outlook 6. Appendix 1 – Property Portfolio Annual Results 2008 3
Slide 4: Highlights Overview
1. Highlights Overview For personal use only ¾ Continued strong track record of underlying EPS and DPS growth ¾ Distributions continue to be paid from underlying earnings ¾ Strong property portfolio performance ¾ Launch of 4 funds – Aspen Villages, Aspen Communities, Aspen Select and Aspen Parks Who
Slide 5: DPS and EPS Track Record
1. Highlights DPS and EPS Track Record For personal use only Underlying EPS/ DPS Growth Profile 18 100% 17.0 Underlying Earnings and distribution growth has been driven by: 16 15.6 15.5 80% ¾ Growth in the funds management business 14 ¾ Expansion of syndicated land estates 12.8 12.8 ¾ Aspen’s active
Slide 6: Contents
Contents For personal use only 1. Highlights 2. Financial Summary 3. Property Portfolio 4. Funds Management 5. Summary 6. Appendix 1 – Property Portfolio Annual Results 2008 6
Slide 7: 2. Financial Summary
2. Financial Summary Consistent Track Record For personal use only Annual Results 2008 77
Slide 8: Financial Performance
2. Financial Summary Financial Performance For personal use only FY08 ($M) FY07 ($M) Change % Income from operations Rental income 32.6 31.6 Funds management 35.7 24.3 Other Income 10.2 5.1 78.5 61.0 29% Expenses Direct property expenses (9.6) (8.7) Commissions (1.3) (0.9) Administrative expenses (1
Slide 9: Funds Management Revenue
2. Financial Summary Funds Management Revenue For personal use only Annual Results 2008 99
Slide 10: Reconciliation of Net Profit After Tax to Underlying Earnings
2. Financial Summary Financial Performance For personal use only Reconciliation of Net Profit After Tax to Underlying Earnings FY08 ($M) FY07 ($M) Underlying Net Profit 43.8 33.5 Swap revaluations 1.4 2.0 Property revaluations 33.7 46.1 Share option expense (3.5) (1.1) Property revaluations underlyi
Slide 11: Financial Position
2. Financial Summary Financial Position For personal use only 30 Jun 08 30 Jun 07 Key Changes Assets $m $m $m Current Assets Cash and Other 84.7 87.5 Non Current Investment Properties 393.8 341.3 52.5 Equity Investments 81.9 93.3 Other 92.3 14.8 77.5 Total Assets 652.7 536.9 Current Liabilities Borr
Slide 12: Capital Structure
2. Financial Summary Capital Structure For personal use only Stapled Securities on Issue 264.6 million Market Cap (at $1.24 closing price, 30 June 2008) 328.1 million Total Security holders Circa 3,600 Institutional 63% Retail 37% Aspen was included in the S&P ASX 300 Index in March 2008 Annual Resu
Slide 13: Debt Structure – Aspen Property Trust
2. Financial Summary Debt Structure – Aspen Property Trust For personal use only Debt Profile (30 June 2008) Gearing 33% Percentage Hedged 52% Average Hedge Maturity Profile 2.6 yrs Weighted average cost of funds 7.46% Senior Debt Facility Expiry Oct 2011 Look-through gearing 41% Net interest cover
Slide 14: Debt Structure
2. Financial Summary Debt Structure For personal use only Application of Debt Facilities (30 June 2008) Core: Property portfolio $116.6m (Net of cash) Non-core:* Funds management loans $60.6m Assets held for sale/seeded $34.0m * To be repaid as equity and/or debt is secured within each funds managem
Slide 15: Contents
Contents For personal use only 1. Highlights 2. Financial Summary 3. Property Portfolio 4. Funds Management 5. Outlook 6. Appendix 1 – Property Portfolio Annual Results 2008 15
Slide 16: Property Portfolio Overview
3. Property Portfolio Overview For personal use only Key Indicators ¾ Weighted Average Lease Expiry 4.0 years ¾ Weighted Average Occupancy 97% ¾ Weighted Average Cap rate 7.8% Highlights ¾ Capitalised on Perth CBD office strength with 22% lift in Septimus Roe Square valuation, based on market rent a
Slide 17: Rental Growth Outlook
3. Property Portfolio Rental Growth Outlook For personal use only 45 23% 40 ¾ Capitalise on record low vacancy rates in Perth CBD 35 8% 30 ¾ Capitalise on positive outlook for Adelaide CBD market (18 year low in vacancy rates) $ Millions 25 20 ¾ Karratha Village comes on line with long 15 term Woods
Slide 18: Capitalisation Rates & Valuation Outlook
3. Property Portfolio Capitalisation Rates & Valuation Outlook For personal use only Portfolio View ¾ Calendar 2008 valuations in place for 5 of 10 properties ¾ Average underlying rent growth across all properties of 8% for FY08 and projected 23% for FY09 due to exposure to strong WA and SA markets
Slide 19: Capitalisation Rates & Valuation Outlook cont.
3. Property Portfolio Capitalisation Rates & Valuation Outlook cont. For personal use only 564 St. Kilda Road ¾ Last valuation (Dec 07) of $31.9m at a cap rate of 7.00% with market rent assumption of $330psm gross Recent deals covering 6,237.1sqm (74% of NLA) have ranged between $344psm and $384psm
Slide 20: Capitalisation Rates & Valuation Outlook cont.
3. Property Portfolio Capitalisation Rates & Valuation Outlook cont. For personal use only 55 Currie Street ¾ Last valuation (Dec 07) of $93.5m at a cap rate of 7.25% with market rent assumption of $330psm. Current market rent forecast at $375-$400psm. Garden Town ¾ Last independent valuation (June
Slide 21: Property Portfolio Summary
3. Property Portfolio Summary For personal use only Latest Cap Book Value Income Property Location Sector Occupancy Valuation Rate ($m) Septimus Roe Square Perth, WA Office December 2007 7.75% 93.9 100% Alcoa Office Complex Booragoon, WA Office February 2008 7.50% 26.2 100% 564 St. Kilda Road Melbou
Slide 22: Diversification
3. Property Portfolio Diversification For personal use only Annual Results 2008 22 22
Slide 23: Leasing Profile
3. Property Portfolio Leasing Profile For personal use only Lease Expiry Profile by Financial Year Key Tenant Expiry 25.0% Financial % of Tenant Year Income 20.0% Elders* 2012 15% DIMIA 2015 7% Centrelink 2011 5% 15.0% L’Oreal 2018 4% Minister for Works 2014 4% Alcoa 2014 3% 10.0% Total 38% * Key le
Slide 24: Karratha Village
3. Property Portfolio Karratha Village For personal use only ¾ Construction of a 180 room modular home village. ¾ Woodside committed to a 5 year lease (+ 5 year option) over 160 rooms. ¾ Initial annualised revenue of $10.2 million. Artist’s Impression of Karratha Village ¾ Total project costs circa
Slide 25: Contents
Contents For personal use only 1. Highlights 2. Financial Summary 3. Property Portfolio 4. Funds Management 5. Outlook 6. Appendix 1 – Property Portfolio Annual Results 2008 25
Slide 26: Funds Management Overview
4. Funds Management Overview For personal use only ¾ Leverages Aspen’s core asset management expertise ¾ Growing fee income base across multiple sectors and asset types (Increase of 47% on FY07) ¾ In-house skill sets across all property sectors ¾ Efficient use of Aspen capital i.e High ROI ¾ 6 estab
Slide 27: Divisions
4. Funds Management Divisions For personal use only Aspen Aspen Aspen Aspen Aspen Aspen Branding Parks Diversified Living Developments Villages Communities Modular Product Tourism and Residential Development Retirement Sector Core Income Affordable Accomodation Estates Fund Series Aged Care Accommod
Slide 28: Distribution Profile
4. Funds Management Distribution Profile For personal use only ¾ Majority of funds closed end with wholesale/sophisticated investor base ¾ Only two funds provide liquidity options (limited scope for outflows) Parks $250K per quarter, Diversified 6% of NTA p.a. ¾ Established national business devel
Slide 29: Distribution Channels
4. Funds Management Distribution Channels For personal use only Funds raised by Aspen Managed Funds Cumulative 240 220 200 180 Retail 160 Wholesale 140 #039;M 120 100 80 60 40 20 - Jun-05 Jun-06 Jun-07 Jun-08 Number of BDM’s 1 WA 1 WA 2 WA/SA 2 WA/SA 1 NSW 2 NSW/Qld 2 NSW 1 VIC/Tas 1 Qld 1 VIC/Tas Annu
Slide 30: Aspen Parks Property Fund
4. Funds Management Aspen Parks Property Fund For personal use only Strategy To acquire, manage and expand a portfolio of park properties providing regular income and capital growth, capture benefits of well located land holdings with high income yields Year in Review ¾ Acquisitions of $64.1m increa
Slide 31: Aspen Parks Property Fund
4. Funds 5. Funds Management Management Aspen Aspen Parks Parks Property Property Fund Fund For personal use only Geographically diverse network of 25 Parks Annual Annual Results Results 20082008 31 31
Slide 32: Aspen Parks Property Fund Acquisitions FY08
4. Funds Management Aspen Parks Property Fund For personal use only Acquisitions FY08 ¾ Myall Grove, Roxby Downs, SA - $11.5m ¾ Seven Park Portfolio - Victoria and NSW - $43.1m ¾ Monkey Mia - Remaining 50% share - $9.5m Monkey Mia Developments FY08 ¾ 21 cabins developed across Pilbara, Wymah Valley,
Slide 33: Aspen Diversified Property Fund
4. Funds Management Aspen Diversified Property Fund For personal use only Strategy To acquire commercial property assets in the $5m – $30m range with a focus on high yielding assets and/or with value add opportunities Year in Review ¾ Total return since inception 11.8% pa ¾ 4 acquisitions totalling
Slide 34: Aspen Diversified Property Fund
4. Funds Management Aspen Diversified Property Fund For personal use only Latest Valuation Book Property Location Sector Date Value 5 Memorial Drive Shellharbour, NSW Office/ Retail Dec 2007 $8.5m 2 Apollo Place Lane Cove, NSW Office Dec 2007 $9.2m 3 Apollo Place Lane Cove, NSW Office Dec 2007 $7.8m
Slide 35: Aspen Diversified Property Fund
4. Funds Management Aspen Diversified Property Fund For personal use only Cardno BSD Centre, CBD Subiaco, WA West Perth Annual Results 2008 35
Slide 36: Aspen Diversified Property Fund
4. Funds Management Aspen Diversified Property Fund For personal use only Trailcraft Industrial Complex, Riseley Corporate Centre, Henderson , WA Booragoon, WA Annual Results 2008 36
Slide 37: Aspen Living
4. Funds Management Aspen Living For personal use only Strategy Leverages Aspen’s in-house expertise in residential land subdivision to develop quality land estates, provide attractive returns to investors and long term recurring funds management income for Aspen. Year in Review ¾ Generally difficul
Slide 38: Aspen Living
4. Funds Management Aspen Living For personal use only Aspen Aspen Fern Bay St Leonards Seaside Dunsborough Whitsunday Total Estate Lakes Shores Village Number of Lots Remaining 1,319 828 1,138 886 4,171 Projected Gross Realisable Value $469m $245m $351m $266m $1,331m Location Dunsborough Bowen Pert
Slide 39: Aspen Developments
4. Funds Management Aspen Developments For personal use only Strategy To create a series of development funds using in-house development and sector expertise i.e. health, retirement, commercial and residential. Year in Review (Aspen Development Fund No1) ¾ Tower One - Adelaide CBD, received National
Slide 40: Aspen Developments – Adelaide City Central
4. Funds Management Aspen Developments For personal use only Adelaide City Central e i a h g b d c Key f a. Office Tower b. Office Tower c. Bar/restaurant d. Office Tower e. Office Tower f. Adelaide GPO/Retail g. Hotel/ Residential h. Office Tower i. Residential apartments Tower `b` with Tower `a` i
Slide 41: Norwest Private Hospital (Construction progress)
4. Funds Management Aspen Developments For personal use only Norwest Private Hospital (Construction progress) Annual Results 2008 41
Slide 42: Norwest Private Hospital (artists impression)
4. Funds Management Aspen Developments For personal use only Norwest Private Hospital (artists impression) Annual Results 2008 42
Slide 43: Aspen Select Property Fund
4. Funds Management Aspen Select Property Fund For personal use only Strategy Open ended hybrid product seeking to provide exposure across traditional and non-traditional sectors (parks, communities, villages) and access to wholesale closed end opportunities Total return target of 12% pa with income
Slide 44: Aspen Villages
4. Funds Management Aspen Villages For personal use only Strategy To acquire, develop and manage residential accommodation villages utilising modular home product, specifically targeting early retirees requiring affordable accommodation solutions in a secure resort style village. Offer homes at 40-6
Slide 45: Aspen Villages
4. Funds Management Aspen Villages For personal use only Annual Results 2008 45
Slide 46: Aspen Communities
4. Funds Management Aspen Communities For personal use only Strategy To develop and manage built form retirement villages and aged care facilities in a sustainable community environment. Typical sites will comprise 200-300 living units on 7-12ha land. Year in Review ¾ Fund launched in August 2008 wi
Slide 47: Aspen Communities
4. Funds Management Aspen Communities For personal use only Annual Results 2008 47
Slide 48: Contents
Contents For personal use only 1. Highlights 2. Financial Summary 3. Property Portfolio 4. Funds Management 5. Outlook 6. Appendix 1 – Property Portfolio Annual Results 2008 48
Slide 49: Strength in the Business Model
5. Outlook Strength in the Business Model For personal use only Current Market Issues Aspen Position Debt Facilities/Gearing ¾ Gearing at 33% within Aspen’s target range with scope to further reduce ¾ Senior facility expiry October 2011 ¾ 52% hedged and average swap term 2.6 years Distribution payme
Slide 50: FY09 Strategic Initiatives
5. Outlook FY09 Strategic Initiatives For personal use only ¾ Maintain gearing at lower end of target range ¾ Disciplined overhead management ¾ Selective acquisition strategy Potentially more modest growth Off market advantageous terms ¾ Maximise significant potential within existing portfolio a
Slide 51: Why Aspen?
5. Outlook Why Aspen? For personal use only There will be winners and losers from the changed landscape, so why is Aspen well placed to prosper? ¾ Growing rental income stream from property portfolio (not reliant on asset disposals) ¾ Long term financing in place ¾ Simple and understandable business
Slide 52: Compelling Value
5. Outlook Compelling Value For personal use only Movement in earnings and share price Annual Results 2008 52
Slide 53: 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
Slide 54: Appendix Property Portfolio – Office
Appendix 1 Property Portfolio Office For personal use only Septimus Roe Square, Perth Alcoa Office Building, Perth Building Area 16,883 sqm plus 126 car bays Building Area 7888 sqm plus 230 car bays Tenants 38 tenants including BankWest, Subway, Dome Cafe, Sun, State Police Tenants Alcoa of Australi
Slide 55: Appendix Property Portfolio – Office
Appendix 1 Property Portfolio Office For personal use only 55 Currie Street, Adelaide St. Kilda Rd, Melbourne 33 York Street, Sydney Building Area 25,655 sqm plus 95 car parking bays Building Area 8,470 sqm plus 173 car parking bays Building Area 539 sqm plus 3 car bays Tenants Tenants L’Oreal Tenan
Slide 56: Appendix Property Portfolio – Industrial
Appendix 1 Property Portfolio Industrial For personal use only Elders Woolstores, Fremantle Noble Park. Melbourne Rocklea, Brisbane Building Area 100,800 sqm Building Area 42,747 sqm plus 400 parking bays Building Area 14,555 sqm plus 150 car bays Tenant Elders Limited (subsidiary of Futuris Limited
Slide 57: Appendix Property Portfolio – Retail
Appendix 1 Property Portfolio Retail For personal use only Garden Town, Toowoomba Building Area 12.434sqm plus 750 car bays Tenants Super IGA Supermarket, two sub-major and multiple speciality tenancies Occupancy 90% Book Value $30.0 million Annual Results 2008 57