Slide 1: 2012 Annual Results Presentation
For personal use only 2012 ANNUAL RESULTS PRESENTATION
Slide 2: For personal use only
For personal use only 1. Overview 2. FY12 Financial Results 3. Strategic Review 4. Investment Property Portfolio 5. Funds Management 6. Business Divisions Under Review 7. FY13 Outlook 8. Appendices
Slide 3: 1. Overview
For personal use only 1. Overview
Slide 4: Overview
For personal use only 1. OVERVIEW Statutory reported loss of $99.0 million Property portfolio value uplift over FY12 of $41.8 FY2012 FY2011 million Impairment (before tax) to non-core assets 1 in 2H12 of Statutory profit after tax ($m) (99.0) 17.4 $133.6 million (full year: $154.1 million) Ope
Slide 5: Financial Summary
1. OVERVIEW Financial Summary For personal use only Funds Management Business units under Investment Property (Aspen Parks) review1 AUM $379m $310m $429m Revenue $44.3m $6.0m $28.1m Statutory Profit $39.1m $5.9m ($133.1m) EBITDA $25.6m $6.4m $2.1m2 Ave. Funds Employed $300.2m $18.7m $172.5m Return o
Slide 6: Operational Overview
1. OVERVIEW Operational Overview For personal use only Corporate Strengthened Board with appointment of new Chairman (Frank Zipfinger) and two new Independent Directors (Hugh Martin and Clive Appleton) Strategic review commenced with a focus on simplifying the business and improving the capital
Slide 7: 2. FY12 Financial Results
For personal use only 2. FY12 Financial Results
Slide 8: Group Financial Result – Reconciliation
2. FY12 FINANCIAL RESULTS Group Financial Result – Reconciliation For personal use only FY2012 FY2011 $m $m Statutory Net Profit / (Loss) After Tax (99.0) 17.4 Tax expense / (benefit) 10.4 (4.6) Changes in fair value of investment properties (41.8) 1.2 Impairment of financial assets 82.9 - Impairmen
Slide 9: Operating Profit
2. FY12 FINANCIAL RESULTS Operating Profit FY2012 FY2011 For personal use only $m $m Income from operations Asset sales resulted in: Rental income 39.2 50.2 Reduced net rental income Funds management 29.0 27.5 Other income 1.4 15.8 Mitigated by reduced interest Total Income 69.6 93.5 expense (
Slide 10: Balance Sheet
2. FY12 FINANCIAL RESULTS Balance Sheet 30 June 12 30 June 11 For personal use only $m $m Investment properties up 23% (like Cash 3.1 11.1 for like 1) Subsidiary assets held for sale 119.9 - Investment Properties 379.1 327.4 80% of portfolio (by value) independently valued at June 2012 (excl ATO
Slide 11: Cash Flow
2. FY12 FINANCIAL RESULTS Cash Flow FY2012 FY2011 For personal use only $m $m Reduced operating cash flow driven by: Cash flow from operating activities 17.5 30.5 Asset sales Investment property capex1 (66.7) (12.5) Reduced management fees and interest Sale of investment properties 50.0 108.5
Slide 12: Debt Summary
2. FY12 FINANCIAL RESULTS Debt Summary For personal use only Group Facility Drawn Lease Purpose Maturity ICR2 LVR Covenants Facilities Limit debt Duration ICR 1.5x NAB Core $123.7m $122.9m Long Term Core Facility Feb-14 LVR 60% Facility 1 2.0x 53% 1.923 Lease 2yrs NAB Amortising at $13.5m $13.5m Kar
Slide 13: 3. Strategic Review
For personal use only 3. Strategic Review
Slide 14: Strategic Review to simplify Aspen's business model
3. STRATEGIC REVIEW Strategic Review to simplify Aspen’s business model For personal use only Increase operational efficiency / reduce overheads Enhance recurring income / increase income from rent and management fees Wind up of ADPF Identification and sale of non-core assets / business divi
Slide 15: 4. Investment Property Portfolio
For personal use only 4. Investment Property Portfolio
Slide 16: Investment Property Portfolio Overview
4. INVESTMENT PROPERTY PORTFOLIO Overview For personal use only FY12 rental growth of 9.6% (like-for-like) Key Metrics June 2012 June 2011 14.6% rental growth at Septimus Roe Portfolio Total ($m) 379 327 W. Ave Cap Rate (%) 9.34% 9.47% Market review (April 12) at Aspen Karratha Village Occupan
Slide 17: Summary of Investment Properties
4. INVESTMENT PROPERTY PORTFOLIO Summary of Investment Properties For personal use only Indep. Book Value Cap Rate WALE Occup Property Sector Valuation Jun-12 Jun-11 (%) (yrs) (%) Date ($m) ($m) Septimus Roe, WA Office Jun 12 105.5 87.0 8.75 2.54 91 Spearwood Industrial Estate, WA Industrial Jun 12
Slide 18: 5. Funds Management
For personal use only 5. Funds Management
Slide 19: Retail Inflows: FY07-FY12 (Aspen Parks)
5. FUNDS MANAGEMENT Retail Inflows: FY07-FY12 (Aspen Parks) Overview For personal use only 50 $M Gross equity inflows in Aspen Parks up 45 82% (net: +51%) 40 35 Continued strong performance of Aspen 30 Parks and investor demand for income 25 20 Capacity to leverage distribution network 15 for
Slide 20: Aspen Parks Overview
5. FUNDS MANAGEMENT Aspen Parks Overview For personal use only Aspen Parks income segment analysis 40 $M Strong trading performance driven by 35 mining and tourist properties 30 Gearing reduced from 44.4% (June 2011) 25 to 30.8% (net of cash) 20 FY2011 15 FY2012 Annualised distribution rate in
Slide 21: 6. Business Divisions Under Review
For personal use only 6. Business Divisions Under Review
Slide 22: Aspen Diversified Property Fund
6. BUSINESS DIVISONS UNDER REVIEW Aspen Diversified Property Fund For personal use only Key Metrics FY2012 FY2011 Unitholders approved orderly sale of assets Equity interest held by Aspen 43.6% 35.9% and wind-up Book value – equity $13.9m1 $11.5m Nunawading under binding contract (July 12) Book
Slide 23: Aspen Living and ADF No.1
6. BUSINESS DIVISONS UNDER REVIEW Aspen Living and ADF No.1 Aspen Living Key Metrics FY2012 FY2011 For personal use only Lot settlements (Number) 177 269 Further deterioration in residential Lot settlements (GRV) $46.0m $61.5m market despite falling interest rate Ave. equity interest held by Aspen
Slide 24: 7. FY13 Outlook
For personal use only 7. FY13 Outlook
Slide 25: Outlook
7. FY13 OUTLOOK Outlook For personal use only Sound property portfolio fundamentals with forecast net rental income growth of $10 million (+30%) in FY13, and actively pursuing lease extensions Significant growth capacity within Aspen Parks to drive funds management income Repositioning Aspen G
Slide 26: 8. Appendices
For personal use only 8. Appendices
Slide 27: Corporate Structure
8. APPENDICES Corporate Structure For personal use only Aspen Group (APZ) Stapled Securities Rental income Funds management fees, equity profits, interest revenue Property Portfolio Funds Management Activities Under Review $379m1 AUM $310m AUM $429m AUM Sector Tourist & Asset AUM Accom Parks Asset L
Slide 28: Additional Fund Metrics
8. APPENDICES Additional Fund Metrics For personal use only Debt LVR Aspen Fund Lender Maturity LVR Actual Facility Covenant Aspen Parks St George $136m July-14 55% 51% Aspen Living: • Aspen Dunsborough Lakes NAB $26m Sept-13 63% 60% • Aspen Whitsunday Shores NAB $7m Mar-13 60% 55% • Fern Bay Seasid
Slide 29: Disclaimer
For personal use only DISCLAIMER 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