Slide 1: Aspen Group 2013 Half Year Results Presentation
For personal use only ASPEN GROUP 2013 HALF YEAR RESULTS PRESENTATION 25 February 2013 1
Slide 2: Agenda
1. Overview For personal use only 2. Strategy Overview 3. 1H2013 Financial Results 4. Core Business - Investment Property 5. Core Business - Funds Management 6. FY13 Outlook and Guidance 7. Appendices 2
Slide 3: 1. Overview
For personal use only 1. Overview 3
Slide 4: Aspen is a national ASX-listed property investment and management company
Aspen is a national ASX-listed property investment and management company Aspen is focused on executing its business For personal use only transformation with the aim of becoming a property and funds management group delivering stable, recurring earnings Our Core Business: Aspen directly owned prope
Slide 5: Operational Highlights for 1H2013
1. Overview Operational Highlights for 1H2013 For personal use only • Core Operating Profit after Tax* of $10.4 million (1H2012: $7.5 million) Operating • Net statutory loss of $18.3 million arising from Non-Core asset impairments Results • Distributions recommenced at forecast 1.5cps p.a. paid half
Slide 6: Key Metrics for 1H2013
1. Overview Key Metrics for 1H2013 For personal use only Profitability 31 Dec 31 Dec 2012 2011 Core Operating result in line with guidance Core Operating EPS (cps) 0.87 1.34 Factors impacting a direct comparison of DPS (cps) 0.75 2.10 key metrics to prior period include: Core Interest Coverage1
Slide 7: Understanding movements in Key Metrics for 1H2013
1. Overview Understanding movements in Key Metrics for 1H2013 For personal use only Reconciliation of movement in NTA per security $0.50 $0.40 ($0.12) $0.30 ($0.03) ($0.01) $0.20 $0.41 $0.29 $0.26 $0.25 $0.10 $0.00 30 June 2012 Entitlement Consolidated Net statutory Consolidated NTA Minority NTA att
Slide 8: Core Operating Profit for 1H2013
1. Overview Core Operating Profit for 1H2013 For personal use only Core Operating Profit Non-Core Operating Profit 1H2013 1H2012 1H2013 1H2012 $m $m $m $m Total Assets 476.5 395.8 217.9 320.3 Revenue 28.6 23.7 18.3 14.5 Operating Profit after tax 10.4 7.5 0.5 11.1 Investment Property Funds Managemen
Slide 9: 2. Strategy Overview
For personal use only 2. Strategy Overview 9
Slide 10: Strategy Update
2. Strategy Overview Strategy Update For personal use only • ATO Building completion enhances portfolio quality and WALE Focus on core strengths • Investment Property valuations up 4.0% to drive value • Significant lease extension at Spearwood Industrial Estate, WA (c.39,000sqm for 7 years) • $101 m
Slide 11: Non-Core Asset Review
2. Strategy Overview Non-Core Asset Review For personal use only Group non-core balance • Contracted sales of four assets realising $9.4 million sheet assets • Divestment programme under way • Settled sale of interests in St Leonards Estate for $7.5 million Aspen Living – residential • Enclave at St
Slide 12: 3. 1H2013 Financial Results
For personal use only 3. 1H2013 Financial Results 12
Slide 13: Group Financial Result – Reconciliation
3. 1H2013 Financial Results Group Financial Result – Reconciliation For personal use only 1H2013 1H2012 $m $m Core Operating Profit After Tax 10.41 7.50 Non Core Operating Profit (after tax) 0.46 11.12 Operating Profit After Tax 10.87 18.62 Changes in fair value of investment properties 13.61 13.30
Slide 14: Core Operating Profit 1H2013
3. 1H2013 Financial Results For personal use only Core Operating Profit 1H2013 $m 1H2012 $m 41% growth in net rental income Income from operations following market rent reviews Rental income 24.4 19.5 (like-for-like properties), Funds management 3.0 3.2 primarily WA properties Other income 1.2 1.4
Slide 15: Balance Sheet
3. 1H2013 Financial Results Balance Sheet 31 Dec 12 30 June 12 For personal use only $m $m Investment properties down on June Cash 53.2 3.1 2012: Subsidiary assets held for sale 174.2 119.9 Completed ATO Building Investment Properties 366.3 379.1 Valuations up 4% (like-for-like) Equity Investm
Slide 16: Debt Summary
3. 1H2013 Financial Results Debt Summary For personal use only Aspen’s aggregate NAB debt reduction plan remains on track Commitment Achieved Still Required Date $m $m $m Comments June 2013 38.4* 10.8* 27.6 Contracted asset sales for $19m in place Marketing and negotiating balance of non core Dece
Slide 17: 4. Core Business - Investment Property
For personal use only 4. Core Business - Investment Property 17
Slide 18: Investment Property Portfolio
4. Core Business – Investment Property Investment Property Portfolio For personal use only Key Metrics Dec 2012 June 2012 Aspen Group Portfolio Total ($m)1 366 8.78 379 9.34 Wtd. Ave Cap Rate (%) Presenttion Occupancy (%) 99 97 NLA (‘000sqm) 303 175 WALE (years) 4.52 1.98 1 Portfolio for December 20
Slide 19: 1H2013 Overview and Income Profile
4. Core Business – Investment Property 1H2013 Overview Income Profile For personal use only Portfolio enhanced with inclusion of newly completed 36,700 sqm ATO Building 13% 23% WALE improved to 4.52 years via leasing of Spearwood Government Industrial Estate and ATO Building Major Corporate 73
Slide 20: 5. Core Business - Funds Management
For personal use only 5. Core Business – Funds Management 20
Slide 21: Funds Management – Aspen Parks Property Fund
5. Core Business – Funds Management Funds Management – Aspen Parks Property Fund For personal use only Key Metrics Dec 2012 Dec 2011 Equity interest held by Aspen 8.7% 11.8% Funds management income $3.0m $3.2m Share of assoc. profit/(loss) $1.0m $1.1m Monkey Mia Dolphin Resort, Shark Bay WA 21
Slide 22: 1H2013 Overview
5. Core Business – Funds Management 1H2013 Overview For personal use only Aspen Parks Gross Inflow FY07 – FY13 forecast Net equity inflows $15.4 million for 1H2012, up 8.4% on prior corresponding period Actual Forecast 50 $M Recurring management fee income up 3% 45 40 Demand for resource secto
Slide 23: Aspen Parks Development Projects
5. Core Business – Funds Management Aspen Parks Development Projects For personal use only Monkey Mia • Redevelopment of restaurant Maiden’s Inn, Moama •Completion of Marina and upgrade of key • New retaining wall infrastructure • 6 new 3 bedroom cabins • Expected completion in Aug 13 • $2.7m expend
Slide 24: 6. FY13 Outlook and Guidance
For personal use only 6. FY13 Outlook and Guidance 24
Slide 25: Outlook and Guidance
6. FY13 Outlook and Guidance Outlook For personal use only Non-Core asset divestment programme progressing Debt reduction programme progressing Continued overhead reduction Investment Property Portfolio: Performing in line with expectations Focus on securing lease extensions Funds Mana
Slide 26: 7. Appendices
For personal use only 7. Appendices 26
Slide 27: Core Business - Investment Property Portfolio
7. Appendix Core Business - Investment Property Portfolio For personal use only Book Value Property Sector Indep. Valuation Dec-12 Jun-12 1 Cap Rate WALE Occup. Date ($m) ($m) (%) (yrs) (%) Septimus Roe, WA Office June 2012 105.5 105.5 8.75 2.25 92 Spearwood Industrial Estate, WA Industrial Dec 2012
Slide 28: Non-Core Assets held for sale
7. Appendix Non-Core Assets held for sale For personal use only Balance sheet assets held for sale Aspen Living Residential land syndicates Wallamba River, NSW Fern Bay Seaside Village, NSW (45%) McLears Hill, VIC St Leonards Estate, WA Golden River, VIC Aspen Whitsunday Shores, QLD (54%
Slide 29: 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