ASPEN GROUP — AGM Information 2010

Nov 28, 2010

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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 Telephone: 08 9220 8400 Facsimile: 08 9220 8401 Email: homemail@aspengroup.com.au

2010 ANNUAL GENERAL MEETING 29 November 2010

Chairman’s Address

Ladies and Gentlemen, welcome to our 2010 Annual General Meeting. My name is Reg Gillard, I am the Non-Executive Chairman of Aspen Group, and I have the privilege of being your Chairman for this meeting. I advise that a quorum is present and declare the meeting open.

Formalities

I would like to draw your attention to the attendance registers on the table outside this room and ask you to sign either the securityholders or visitors register if you haven't already done so.

I will ask all those present to note that the securityholders register is available for inspection and that the proxies affecting today's resolutions are tabled and available for inspection.

During the course of the meeting, we will provide investors with the opportunity to ask the Board any questions you may have and we have mobile microphones to facilitate the process. I would remind you that only securityholders, corporate representatives and proxy holders are entitled to speak on the business before the Meeting and so I would ask that if you have a question, to hold up your green voting card and state your name prior to the question being asked.

I would also like to welcome Kevin Smout from our auditors, KPMG, who is here to field questions relating to the Aspen Group audit, should you have any.

Agenda

The agenda today will be as follows:

• After my brief address, we will proceed to table the resolution items as set out in the Notice of Meeting.

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• 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 questions you may have.

• At the conclusion of the meeting we would like to invite you all to join us for some light refreshments where you will have the opportunity to meet with your fellow shareholders and Board members on an informal basis.

Board Introduction

Now that the formal procedural matters have been attended to, I would like to introduce my fellow non-executive directors starting from my left, our Managing Director Gavin Hawkins, and our Non-Executive Directors Terry Budge and Seng Fai Chan.

Chairman’s Overview

I am pleased to report that our business performed within our expectations over the past financial year.

Aspen Group has made significant progress over the past 2 years by making some difficult, yet necessary, decisions over that time. Our business today is better capitalised, and with a significantly lower overhead cost structure, is now well positioned for growth.

The business has a clear strategy, which involves growth and continual improvement of the investment property portfolio, active recycling and sale of non-core assets, and expansion of our funds management business.

Over the last few months we have begun executing our strategy for growth, including the sale of the St Kilda Rd office property and the launch of a new residential syndicate “Enclave at St Leonards”. Furthermore, we are currently assessing numerous other transactions in line with our overall strategy.

Looking at management issues, we also announced key changes to both our Board and senior executive team in 2010. I would like to extend the Board’s appreciation at this time to Mr Angelo Del Borrello for the significant contribution he played in the development of the Group over his many years as Managing Director, and also to Mathew McCann who resigned as Non-Executive Director in June this year due to his new employment commitments.

As a result of these changes, your Board of Directors now comprises one executive and three Non-Executive Directors, one less than the desired minimum level determined by our Nomination Committee. Recently we have been actively seeking suitable candidates to assume the vacant Non-Executive Director role and I look forward to presenting an update to the market in this regard over the coming months.

As advised in our Notice of Meeting the Remuneration Committee has been working with external consultants over the last few months to complete a comprehensive review of the

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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 cancellation of certain securities awarded under previous share plans, all of which are the subject of resolutions being sought from securityholders today.

I also note that in formulating this new Remuneration Framework we also actively engaged a major proxy advisor to ensure the policies adopted were reasonable and in line with market practice.

Overview of 2010

I’d like to take a moment now to briefly cover the performance of the Group over the past financial year.

• The Group reported an operating profit of $33.6 million, slightly ahead of the prior year result of $33.2 million, a significant achievement considering the uncertain landscape in which we operated

• This translated to operating earnings per security of 6.04 cents, allowing us to pay distributions of 4.2 cents per security, in line with the market guidance provided

• A statutory profit of $12.6 million was recorded after allowing for accounting standard write downs, a significant improvement on the GFC impacted $64.7m loss posted in 2009

• Our property portfolio continues to deliver solid recurring earnings to the Group. It is important to note that the outcome of recent independent valuations, clearly illustrate a stabilisation in commercial property values that have been under so much pressure over the last few years

• It was also very encouraging to see a recovery in our funds management business, particularly in the residential division after two extremely difficult years

• We delivered on our targeted overheads savings, with a 20% reduction in overhead expenditure compared to 2009. This was done through a number of cost cutting initiatives including streamlining the management team, implementing freezes on executive salaries, directors fees and the rationalisation of non-income producing business units

• And lastly with our carrying values stabilised, we believe our current securityprice represents very good value when compared to the Group’s net tangible assets per security of $0.69.

Outlook

I would like to briefly comment on the Group’s outlook which Gavin will cover in more detail in his presentation.

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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 will lead to growth and an increase in the security price.

Conclusion

On behalf of the Board I would like to take this opportunity to recognise and thank all Aspen staff for their dedication and perseverance over the past year. Their hard work leaves the Group transformed and well placed to take advantage of more positive conditions in the coming years.

On behalf of the Board, executive management team and staff I would like to thank you for your continued support of Aspen Group and I look forward to sharing our future success with you.

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2010 Annual General Meeting Managing Director Presentation

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ASPEN GROUP BUSINESS MODEL

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Rental Income
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‐ Funds management fee income
‐ Investment income
‐ Interest income
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Property Portfolio
(c$400m of property assets):
Investment Property Portfolio
Property Portfolio ‐ $379m
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Development Portfolio Non‐core land assets ‐ $39m

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Funds Management
(c$1 billion of AUM):
Aspen Living Aspen Parks
Residential Tourist &
AUM $315m Accommodation Parks
AUM $271m
Aspen Development Fund Aspen Diversified
Commercial & Residential Commercial
AUM $233m AUM $126m
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KEY MESSAGES

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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 before tax of $34m

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FY10 YEAR IN REVIEW

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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 transactional activity in Funds Asset values stabilised – NTA $0.69 per security

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($M)
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Overheads Interest Expense
Property Funds Operating Profit
Portfolio Management Before Tax
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Property Portfolio

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STRATEGY FOR GROWTH

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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 assets

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PROPERTY PORTFOLIO Summary & Outlook

	Independent	Book	Cap
Investment Property	Valuation Dates	Value ($m)	Rate (%)	Occupancy (%)
Septimus Roe, WA	Dec 09	87.0	9.25	90
Alcoa Office Complex, WA	Dec 09	28.0	9.00	100
Woolstores, WA	Dec 09	52.0	10.00	100
Karratha Village, WA	Jun 10	44.0	18.50	100
564 St Kilda Road, VIC **	Dec 09	34.0	8.50	100
Noble Park, Browns Road, VIC	Jun 10	19.3	10.25	100
51 Heaton Street, Rocklea, NSW	Jun 10	10.5	9.75	100
55 Currie Street, SA	Dec 09	81.0	9.50	92
Sovereign Gardens, Ballina, NSW	‐	23.3	n/a	n/a
T t l / A		379 1	9 40*	94

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Year to Date

1H11 Rental income on track Sold 564 St Kilda for $33.3m (BV $34m vs. Acq value of $25m (‘05)) 94% Occupancy WALE 3.2yrs

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Funds Management

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FUNDS MANAGEMENT STRATEGY FOR GROWTH

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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 initialisation

Extend debt facility maturities well ahead of term

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DIVERSIFIED FUNDS MANAGEMENT BUSINESS c$1.0 billion of assets under management

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Aspen Living
Residential
4 Assets (AUM $315M)
Aspen Parks
Tourism &
Accommodation
25 Assets (AUM $271M)
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ADF No.1
Developments
14 Assets (AUM $233M)
Aspen Diversified
Core Income
8 Assets (AUM $126M)
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FUNDS MANAGEMENT

Aspen Diversified Property Fund

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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 to date Update

• FY10 Contribution as expected

• Successful releasing of Nunawading and Henderson properties, increasing the Fund’s WALE to 4.5 yrs

• Sale of Bagot Road in June 10 > than book value – proceeds of $8.3m applied against debt reduction

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FUNDS MANAGEMENT Aspen Living

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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 price growth

Anticipated price growth will improve margins

Syndicate balance sheets support development of more

stock (previously constrained)

Development pipeline of circa 4,000 zoned lots a key driver of future earnings

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FUNDS MANAGEMENT Aspen Living

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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”

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FUNDS MANAGEMENT

Enclave at St Leonards Residential Estate

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• 15km to the Perth CBD

• Located within the Swan Urban Growth Corridor

• $11.5 million retail equity raising

• 18% target internal rate of return

• Two year project timeframe

• To be managed by Aspen Living

• “...recycling of on-balance sheet asset inline with Group strategy”

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Enclave at St. Leonards Residential Land Syndicate Overview

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• Part of a master‐planned community providing links to nearby parks, recreational facilities, schools and shops

• Urban zoning in place enabling construction to commence in 2H FY10

• 180 lots (200sqm‐450sqm) plus a group housing site

• Located adjacent to Aspen managed St Leonards Private Estate

• Benefits from strong demand for lots at St Leonards and soon to be completed new home display village

• Addresses affordable housing issues in Perth metropolitan housing market

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FUNDS MANAGEMENT Aspen Development Fund

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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 from Tower 8 & Currambine

• Capital management initiatives have reduced short‐term margins (to increase on future stages)

Year to Date Update

Tower 8 – construction has commenced on schedule

• ADF fielding interest from prospective Tower 8 end buyers

Currambine Retirement Village – commencement pushed back to 2H11

Tower 8 – Franklin Street, Adelaide

Key Metrics

• “A Grade” 36,000 sqm office building

• 17 levels, 115 car bays & retail

• 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 Post

• 5,300 sqm commitment

• 10 year lease plus (2 x 5 yr) @ $355 psm gross

On completion value $190m. Est initial yield 7.5%

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AP ATO Vacant
2% 8%
90%
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FUNDS MANAGEMENT Aspen Parks Property Fund

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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 through new investor inflows

• Greater platform dealer group representation and attractive monthly income return (circa 9% pa) support further growth in equity inflows

Year to Date Update

Strong performance from mining portfolio

Some minor impact in resorts profits due to high A$

$10m new equity raised YTD

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Funds Management Platform Positioned for Growth

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50.0

40.0

30.0

($M) 20.0

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10.0
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Income from Funds Management Business

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Interest Income Equity Profits

Non‐Recurring Transactional Fees Recurring Management Fees

Growth in earnings curtailed over the last 2 years due to a substantial drop in transactional fee income and equity profits

Importantly the platforms that previously delivered this growth remain in place with c$1.0b of assets under management

Funds management business well positioned for growth over next few years

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Outlook and Guidance

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OUTLOOK & GUIDANCE

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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 – benefiting from rebounding residential sector with good inventory levels

• Aspen Parks – Solid FY11 earnings growth plus significant upside development / acquisition opportunities

Guidance

Reiterating guidance of 14% increase in FY 11 operating PBT = EPS of 6.13 cps

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DISCLAIMER

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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 any contract or commitment. Prospective investors should make their own independent evaluation of an investment in Aspen. Nothing in this presentation constitutes investment, legal, tax or other advice. The information in this presentation does not take into account your investment objectives, financial situation or particular needs. The information does not purport to constitute all of the information that a potential investor may require in making an investment decision.

Aspen has prepared this presentation based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Aspen , its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

All references to dollar amounts are in Australian currency unless otherwise stated.