Aspen Group Limited · ASX:APZ
Aspen — Shareholder Meeting (November 2010)
26 slides from Aspen's shareholder meeting presentation, Nov 29, 2010
Slide 1: 2010 Annual General Meeting - Chairman's Address
Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767 Level 8, Septimus Roe Square 256 Adelaide Terrace, Perth Western Australia, 6000 For personal use only Telephone: 08 9220 8400 Facsimile: 08 9220 8401 Email: homemail@aspengroup.com.au 2010 ANNUAL GENERAL MEETING 29 Novembe
Slide 2: Chairman's Address: Agenda, Board and Overview
We will then invite our Managing Director, Mr Gavin Hawkins, to provide an overview of the performance of the Group in 2010, as well as the Group’s outlook for FY2011. Following Gavin’s presentation we will open the floor and you will be provided with the opportunity to ask the Board any questio
Slide 3: Overview of 2010 and Outlook
remuneration structure in order to align it more closely with the Group’s growth objectives for 2011 and beyond. The result of this review was the adoption of a simpler, more transparent Remuneration Framework. This Framework includes the introduction of a new Performance Rights Plan and the cancell
Slide 4: Chairman's Conclusion
We have made significant progress this year in transforming and repositioning the business. Whilst we remain disappointed that our hard work has not as yet been reflected in our security price, your Board is confident that Aspen has the right team and platform in place to execute its strategy which
Slide 5: 2010 Annual General Meeting - Managing Director Presentation
For personal use only 2010 Annual General Meeting Managing Director Presentation
Slide 6: Aspen Group Business Model
For personal use only ASPEN GROUP BUSINESS MODEL Aspen Group ASX: APZ ‐ Funds management fee income Rental Income ‐ Investment income ‐ Interest income Property Portfolio Funds Management (c$400m of property assets): (c$1 billion of AUM): Aspen Living Aspen Parks Residential Tourist & AUM $315m Acco
Slide 7: Key Messages
For personal use only KEY MESSAGES Return to earnings growth in FY10 Strong operating cash flows Asset values stabilised “New look” executive team with a clear strategy Well positioned for continued solid earnings growth Positive FY11 earnings outlook ‐ Targeting 14% increase in operating earnings b
Slide 8: FY10 Year in Review
For personal use only FY10 YEAR IN REVIEW FY10 operating EPS and DPS guidance met (6.04 cps and 4.20 cps) Operating profit before tax up 23% to $29.9m Strong operating cash flows of $31m ‐ up from $15m Property rents increased 14% (9% like for like) Funds management fee income subdued through lower
Slide 9: Property Portfolio
For personal use only Property Portfolio
Slide 10: Strategy for Growth: Property Portfolio
For personal use only STRATEGY FOR GROWTH PROPERTY PORTFOLIO Ensure investment property portfolio continues to be a source of solid recurring income Increase quality of portfolio through recycling assets Work to increase the Portfolio WALE Sale or syndication of non‐core on balance sheet development
Slide 11: Property Portfolio Summary & Outlook
PROPERTY PORTFOLIO Summary & Outlook For personal use only Independent Book Cap Year to Date Valuation Value Rate Occupancy 1H11 Rental income on Investment Property Dates ($m) (%) (%) track Septimus Roe, WA Dec 09 87.0 9.25 90 Sold 564 St Kilda for Alcoa Office Complex, WA Dec 09 28.0 9.00 100 $33.
Slide 12: Funds Management
For personal use only Funds Management
Slide 13: Funds Management Strategy for Growth
FUNDS MANAGEMENT For personal use only STRATEGY FOR GROWTH picture FUNDS MANAGEMENT Maximise on the significant opportunities within existing funds Expand core fund management platforms of residential and tourist and accommodation parks Explore new fund platforms through acquisition or initialisatio
Slide 14: Diversified Funds Management Business
DIVERSIFIED FUNDS MANAGEMENT BUSINESS c$1.0 billion of assets under management For personal use only Aspen Living ADF No.1 Residential Developments 4 Assets (AUM $315M) 14 Assets (AUM $233M) Aspen Parks Aspen Diversified Tourism & Core Income Accommodation 8 Assets (AUM $126M) 25 Assets (AUM $271M)
Slide 15: Aspen Diversified Property Fund: Key Strategies & Outlook
FUNDS MANAGEMENT Aspen Diversified Property Fund For personal use only Key Strategies & Outlook Continue to actively implement the Fund’s revised strategy of holding and repositioning assets for valuation re‐ratings and potential sale as markets recover Continue excellent recent leasing record Year
Slide 16: Aspen Living: Key Metrics and Outlook
FUNDS MANAGEMENT Aspen Living For personal use only Key Metrics FY11 (f) FY10 (a) Lot settlements 393* 75 Average lot prices $200k‐$268k $200k‐$246k Gross Margin (pre interest) 23% 20% Gross Margin (after interest) 14% 10% Key Strategies & Outlook * 77% of forecast secured YTD Undersupply is driving
Slide 17: Aspen Living: Year to Date Update
FUNDS MANAGEMENT Aspen Living For personal use only Year to Date Update Final Project Plan approvals for Fern Bay obtained Solid lot sales and FY11 target on track 77% of the forecast 393 settlements secured YTD Launch of “Enclave at St Leonards” 13 Aspen Group – 2010 AGM
Slide 18: Enclave at St Leonards Residential Estate
FUNDS MANAGEMENT Enclave at St Leonards Residential Estate For personal use only f 15km to the Perth CBD f Located within the Swan Urban Growth Corridor f $11.5 million retail equity raising f 18% target internal rate of return f Two year project timeframe f To be managed by Aspen Living “...recycli
Slide 19: Enclave at St. Leonards Residential Land Syndicate
Enclave at St. Leonards Residential Land Syndicate Overview For personal use only f Part of a master‐planned community providing links to nearby parks, recreational facilities, schools and shops f Urban zoning in place enabling construction to commence in 2H FY10 f 180 lots (200sqm‐450sqm) plus a gr
Slide 20: Aspen Development Fund: Key Strategies & Outlook
FUNDS MANAGEMENT Aspen Development Fund For personal use only Key Strategies & Outlook Tower 8 – construction commenced 1H11 with fees recognised over the construction period once sold Currambine Retirement Village – construction expected to commence 2H11 FY11 Group earnings guidance excludes fees f
Slide 21: Tower - Franklin Street, Adelaide
Tower 8 – Franklin Street, Adelaide Key Metrics “A Grade” 36,000 sqm office building 17 levels, 115 car bays & retail For personal use only 5 Star Green Star and 4.5 Star NABERS Energy Rating Australian Tax Office 30,000 sqm commitment 15 year lease plus (2 x 5 yr) @ $520 psm gross Australia Pos
Slide 22: Aspen Parks Property Fund: Key Strategies & Outlook
FUNDS MANAGEMENT Aspen Parks Property Fund For personal use only Key Strategies & Outlook Significant organic development/acquisition opportunities Seeking opportunities for worker accommodation at the Northwest WA properties (similar to Aspen Karratha Village) Ensure gearing 45% ‐ 50% in FY11 throu
Slide 23: Funds Management Platform Positioned for Growth
For personal use only Funds Management Platform Positioned for Growth Income from Funds Management Business Growth in earnings curtailed over the last 2 years due to a 50.0 substantial drop in Interest Income transactional fee income and equity profits Equity Profits 40.0 Importantly the platforms N
Slide 24: Outlook and Guidance
For personal use only Outlook and Guidance
Slide 25: Outlook & Guidance
For personal use only OUTLOOK & GUIDANCE Outlook More efficient and disciplined overhead cost structure Securing new extended debt facilities for Aspen Group and Funds Funds Management growth through: ADF – development projects commencing FY11 for FY12 earnings recognition Aspen Living – benefit
Slide 26: 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