Slide 1: Creating wealth through intelligent property investment
“Creating wealth throug h intelligent property in vestment”
Slide 2: Overview
Overview Financial Summary Property Portiono Funds Management Summary Annual Results 2006
Slide 3: Introduction
ntroduction ~ > Diversified national property investment and management group > Growing funds management business » Strong track record of out-performance in earnings and NTA growth >» Continuous record of earnings exceeding distributions each year since inception >» Strong Balance Sheet and low gea
Slide 4: Aspen Group — Year in Review
“Aspen Group — Year in Review Z > Significant increase in investment property valuations > Underlying EPS increased 46 % >» DPS increased 20% > Outperformed forecast EPS by 11.4% >» Acquisition and successful syndication of initial residential land subdivision - Aspen Dunsborough Lakes Ltd > Signifi
Slide 5: Aspen Group — Security Price Performance
“Aspen Group — Security Price Perfor Aspen continues to materially outperform ASX 300 LPT Index. Total Returns 290 === Aspen Group neem ASX LPT 300 240 190 » 140 90 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Annual Results 2006
Slide 6: Earnings
Earnings 2006 2005 Change Underlying Net Profit* ($’m) 18.50 7.40 # 148% Underlying EPS* (cents) 12.81 8.75 a 46% DPS (cents) 10.00 8.35 # 20% Underlying Earnings above 2.81 0.40 * 602% Distribution (cents) * Underlying operating earnings are defined as net profit after fax and before non cash items
Slide 7: Earnings and Distributions per Security
Asp ..the upward trend continues Earnings and Distributions per Security (cents) MEPS MDPS 03 04 05 06 Earnings have exceeded distributions since inception 7 Annual Results 2006
Slide 8: Balance Sheet Highlights
=A set WCRBUS Highlights Balance Sheet 2006 2005 Change Assets Under Management ($’m) 632 307 * 106% Property Investment Portfolio ($’m) 284 189 # 50% Gearing 32%* 59% Vv 27% NTA (cents) 109 * 81 § 35% * Following settlement of $50m capital raising and repayment of fund debt in July 2006 Annual Resu
Slide 9: Assets under Management
Assets under Management ($’m) 700.0 600.0 500.0 400.0 300.0 200.0 100.0 — 03 04 05 9 Annual Results 2006
Slide 10: Overview
Overview Financial Summary Property Portfolio Funds Management Directors and Management Summary 10 Annual Results 2006
Slide 11: Aspen Group — Track Record
Aspen Group — Track Record “25 Aspen continues to drive earnings and distribution growth FY03 (¢) FY04 (¢) FY05 (¢) FY06 (¢) 3YR CAGR EPs* 74 84 8.75 12.81 20.1% DPS 5.6 7.25 8.35 10 21.3% NTA 68 81 101.4 14.2% Following settlement of the $50m Institutional Placement in July 2006, the NTA will rise
Slide 12: Group - Financial Performance
a m h’Group - Financial Performance FY06 FYO05 Change $ $ % Property Income 20.441m 16.49m +24% Funds Management Income 15.57m 3.98m +291 % interest on loans to funds 2.61m 0.43m + 506% Total Income 38.59m 20.9m +194 % Property Expenses (4.74m) (3.69m) +21% Interest Expense (7.77m) (6.32m)} +23% Fun
Slide 13: Financial Position
al Position 30 June 06 30 June 05 Change $ $ % Investment Properties 286.6m 202.5m +42% Other Assets 66.9m 20.0m +235% Total Assets 353.5m 222.5m +59% Borrowings 168.3m 133.9m +26% Other Liabilities 17.1m 5.2m + 229% Total Liabilities 185.4m 139.1m +33% Net Assets 168.1m 83.4m +102% NTA $1.014 80.7c
Slide 14: Capital and Debt Structure
Capital and Debt St Capital Structure Stapled Securities on Issue* 202.1M Unlisted Options on Issue 3.79M (93.75¢e, $1.00, $1.25, Various Exercise dates) * Following settlement of $50m capital raising in July Substantial Securityholders Deutsche International Group UBS Global Asset Management AMP Li
Slide 15: Debt Profile
Pre Settlement (June 06) Post Settlement (July 06) Debt Profile Total Fixed Floating Total Fixed © Floating Total Borrowings $166 m . $114m Core Debt (at 40% max gearing) $142 m 100% “ $114m 100% Non-core Debt (above 40% gearing) $24 m 28% 72% $0m ‘NA NA Unused Facility Limit $32 m $84.m Average Cos
Slide 16: Overview
Overview Financial Summary Property Portfolio Funds Management Directors and Management Summary 16 Annual Results 2006
Slide 17: Blue Chip tenants
Blue Chip tenants Revaluation of investment properties realised significant gains Secure lease expiry profile of 4.7 years Occupancy rate 96% across portfolio Increased sector and geographic diversification Investment portfolio reflects Aspen’s acquisition strategy >» $30-70 million » Attractive run
Slide 18: Major Tenants Expiry
Major Tenants Expiry mt Elders 2012 17% DIMIA 2014 7% Alcoa 2014 6% Australian Bureau of Statistics 2008 6% HP Aust Pty Ltd 2008 5% Acme Fine Furniture 2012 A% Total 45% 30% 25% 20% 15% 10% | 5% 0% © 18 Lease Expiry Profile by Income 24% 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014+ Annual Resu
Slide 19: Property portfolio
FO Aspen: ——_ nn Property Location Sector Book Value AS millions OCCuPANcy MTAA Super House Adelaide, SA Office 67.0 89% Septimus Roe Square Perth, WA Office 50.2 96% Alcoa Office Complex Booragoon, WA Office 18.4 100% Elders Woolstores Spearwood, WA Industrial 45.0 100% Noble Park Melbourne, VIC In
Slide 20: Diversification
Diversification Industrial 40% Retail 19% Office 41% 2005 Portfolio Sector Diversification iby value) Office 58% Retail 13% Accammodation 1% Industrial 28% WA 49% VIC 25% NSW 2% QLD 24% 2005 Portfolio Geographic Diversification (by value) 2006 WA 40% NSW 2% VIC 18% SA 23% . QLD 17% —————~f 20 Annual
Slide 21: MTAA Super House
»A Grade building purchased at $67m, or $2600 psm of net lettable space »Large floor plates of 1500-2000 sq.m attractive to large tenants » Strong lease expiry profile » Major tenants include DIMIA, ABS, Department of Family and Community Services and Centrelink 21 Annual Results 2006
Slide 22: Septimus Roe Square and Alcoa Office Building
_ Septimus Roe Square > Property valuation increased 66% to $50.2m » New tenants include Conner Wagner and WA Police on 6/ 7 year leases. Latest deais at $220 psm » Redevelopment of fagade and retail areas ready for tenant occupation in Sept 06 22 Alcoa Office Building LIAS AAS TESST Visi Wah » Attr
Slide 23: Elders Woolstores and Noble Park
Elders Woolstores ania EEE ALES » Major industrial holding - 100,800 sq.m of NLA on a 29.37 ha site » Valuable land bank for the Group >Land values have risen as surrounding residential development continues » Triple net lease with minimum 4. 25% annual increas: 23 — Noble Park DIESE UD sieieainan n
Slide 24: Industrial complex and 564 St Kilda Road
Ce .hLLULCitiC SSIS Well designed two building industrial complex >Fully leased to Acme Fine Furniture — largest furniture producer in Australia > 8 year triple net lease. Tenant responsible for all outgoings and repairs »DA received for two new retail tenancies on ground floor » Hewlett Packard hav
Slide 25: Garden Town, Toowoomba and 33 York Street, Sydney
Garden. Town, Toowoomba >impressive retail centre >Major tenant is Super IGA Supermarket >investigating addition of new mini major discount variety store 33.York Street, Sydney » Strata titled office occupied by Aspen Group » Space surplus to current requirement is sub let 25 Annual Results 2006
Slide 26: Overview
Overview Financial Summary Property Portfolio Funds Management Directors and Management Summary 26 Annual Results 2006
Slide 27: Key funds management activities
» Aspen currently has 4 key funds management activities: » Resort/ Caravan Park Sector ~ “Aspen Parks Property Fund” * Core Income Fund ~ “Aspen Diversified Property Fund” » Syndicated Land Subdivision Business ~ “Aspen Dunsborough Lakes Limited” » Affordable Retirement / Resourse Industry Sectors ~
Slide 28: Aspen Parks Property Fund
Aspen Parks Property Fund Has significantly exceeded growth target of $150m over 5 years - $100 million and 14 parks by July 2006 Parks generally in excellent locations with potential for capital appreciation and development of excess land Fragmented industry providing asset growth potential Continu
Slide 29: illite
aa illite Airlie Beach Ay yy, Ly Vy Twofold
Slide 30: Aspen Parks Property Fund property locations
ar s Property Fund Location of properties owned by Aspen Parks Cooke Point : ExmoutH Care Monkey Mia DOLPHIN RESORT NWVALLANES RIVER COoGEE BEACH Woooman Point Port Augusta Toro. Bay HorsesHor YARRABY 30 Annual Results 2006
Slide 31: Aspen Diversified Property Fund
Aspen Diversifi ed P roperty Fund Launched April 2005 — objective to achieve AUM $250 million within 5 years Excellent year one growth with $134 million in assets by June 2006 Fund continues to mature and now shows excellent diversification across sectors and states Leverages Aspen’s core commercial
Slide 32: itt
Va itt Annual Results 2006
Slide 33: Aspen Diversified Property Fund
ben Diversified Property Fund Asset State Asset Book Value Sector Diversification Type Abemethy Park WA Office $11.5M Champion Drive WA Retail $9.3M Industrial 36% Shopping Centre Riseley Corporate WA Office $7.7M Office 33% Centre Midland Cinema WA Retail $5.5M Retail 31% Complex Cardno BSD Centre
Slide 34: Aspen Living Villages
> Launched June 2005 » Established to manage the development of residential and affordable accommodation villages >» Baby boomers who retire early, mining industry and annuals — requirement for low cost residential accommodation >» Commenced with Aspen Living Village No1 Fund following the acquisiti
Slide 35: Residential Estate Fund Division
esidential’EState Fund Division > Introduced to develop residential land subdivision projects on a syndicated basis > Low risk/ high return syndicated model > Utilise the Group’s expertise in project management and sales. > First project (Aspen Dunsborough Lakes Limited) has shown a strong first hal
Slide 36: Aspen Dunsborough Lakes Limited - Background
esidentia ate Development Divisior Aspen Dunsborough Lakes Limited Background Acquired the 230ha Dunsborough Lakes golf course estate for $93.7M in January 2006 Equity of $40M raised from institutional/sophisticated investors Aspen hold 20% equity and acts as Project Manager Provides Aspen with sign
Slide 37: Aspen Dunsborough Lakes Limited - Performance
esidential Estate Development Divisio Aspen Dunsborough Lakes Limited Performance » Valuation has increased from $99m at acquisition to The eel $119M at 30 June | board theeling. >» 136 lots, worth $32.8m sold to 30 June, outperforming first years budget in 5 months » Forecast project profit of c$11
Slide 38: Aspen Dunsborough Lakes Limited
la Estate Developmen Aspen Dunsborough Lakes Limited icici NNT “and Busselton (including Dunsborough) on the south west cape of WA epitomise ascendant new coastal cities” Bernard Salt, The Big Shift, 2004 38 Annual Results 2006
Slide 39: Outlook and growth initiatives
- Continued Growth in existing Managed Funds with the aid of Aspen Group’s strong balance sheet » Strong Growth in Residential Estate Division through off balance sheet syndicated projects. Number of significant projects under review. - Wholesale Fund opportunities being considered » Affordable hous
Slide 40: Overview
Overview Financial Summary Property Portfolio Funds Management Summary 40 Annual Results 2006
Slide 41: National property group
National property group Strong track record of earnings in excess of distributions and forecasts Strong financial position to fund further growth in investments and Managed Funds Continue to source new acquisitions across all markets and sectors at appropriate returns Diversified income streams Grow
Slide 42: 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 anything in it shall form the basis of