ASPEN GROUP - Annual Report 2021 | FinancialReports.eu

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Financial Results FY21

Four Lanterns Estate, Leppington, NSW

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Residents at Four Lanterns Estate, NSW

1 Financial Results – FY21

2 Portfolio Summary 3 Operations & Development

4 Managed Funds 5 ESG 6 Appendices

Sweet Water Grove – marketing campaign, NSW

Aspen’s Business Model

Aspen Provides Quality Accommodation to Australian Households on Competitive Terms

Sustainable Ecological Footprint

Aspen’s efficient dwellings use significantly less resources to manufacture and operate than the average Australian home – we also recycle/refurbish dwellings

With solar installed, our dwellings can produce more renewable energy than they consume

We install energy and water saving devices and metering to reduce resource use

Our communities share resources such as common areas, recreation facilities, gardens and transport

Our parks are highly vegetated, and our land management programs reduce degradation and environmental risks

Aspen’s carbon emission reduction target for the assets that it controls is in accordance with the 2015 Paris Agreement

Customer-centric business model servicing households that can afford no more than $400 weekly rent or $400k purchase price

We provide a range of products demanded by our customers in residential, retirement and park communities

We foster a safe, social, diverse, and inclusive culture in our communities by providing on-site management, customer services, and community facilities which gives our residents a sense of home and meaningful connections to the community

Total value of real estate in Aspen’s addressable market >$1 trillion

Average Average Land Average Dwelling Rent of Site Rent of Dwelling Sales $248 per Week $166 per Week Price of $287k

Some of our properties are located in past and present Indigenous communities, and we actively seek to help these communities and conserve heritage items

Governance

Aspen Group comprises Aspen Group Limited and Aspen Property Trust with two separate independent Boards

Aspen provides equal employment opportunities regardless of gender, gender-identity, age, culture, race, religion and lifestyle choices

We continuously strive for the highest WH&S standards at our properties to keep our employees, suppliers and customers safe

Our Joint CEOs own a combined stake of 8.7% in Aspen Group and 50% of their remuneration package is deferred for up to 3 years and subject to performance hurdles and vesting conditions

Additional information on Aspen’s ESG program is contained in Section 5.

Portfolio Composition

Aspen leases dwellings and land sites to customers within residential, retirement and park communities...

Types of Properties Dwellings and Land Sites (by # of dwellings/sites) (by number) Land Development Sites 9% Retirement Residential Communities Dwellings 22% 21% that Aspen Leases to Customers Land Sites 41% that Aspen Leases to Park Communities Customers 57% 50%

FY21 Performance (compared to FY20) - Capital

Aspen has continued to grow its business, portfolio and value while managing risks...

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Portfolio
Total Total WACR
Approved Approved Total 7.7% Book NAV
Dwellings Sites to Assets Book Gearing Equity +14% to
/ Sites Develop +29% to Value of 29% +14% to $1.31 per
+25% to +149% to $247m $83k per $153m security
2,747 249 Dwelling
/ Site
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Added five properties to the portfolio including Cooks Hill Co-living Community, Mount Barker Land, Burleigh Heads Residential Build to Rent, Upper Mount Gravatt Co-living Community and Lewis Fields Retirement Village (all acquisition costs written off)

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NAV per Security
Barker Land, Burleigh Heads Residential Build to Rent, Upper Mount Gravatt Co-living
Community and Lewis Fields Retirement Village (all acquisition costs written off) $1.35 +14%
▪ Our entry prices continue to be very attractive despite a general firming in cap rates $1.30
and increase in property prices across all of Aspen’s markets – we continue to find
$1.25
opportunities to acquire and redevelop property at well below the local costs of
buying existing property and developing new property $1.20
▪ Good balance of operational and development sites – average cost of approved $1.15
development sites of $40k is a fraction of prices being paid by others
$1.10
▪ Started recycling capital from our Perth House Portfolio, where prices have recovered
$1.05
to around replacement cost and net yields are <3%, into other areas where we can
provide more affordable accommodation to our customer base and generate higher
$1.00
returns 30 June 2019 30 June 2020 30 June 2021
▪ Gearing of 29%, below long term target range of 30-40%
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FY21 Performance (compared to FY20) – Earnings & Distributions

Aspen has continued to grow its business, portfolio and profits while managing risks...

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Total Property D&T Operating EPS DPS
MER
Revenue NOI Profits Profit
+14% to +10% to
reduced
+18% to +8% to +220% +36% to 7.73 6.60
to 1.8%
$36.0m $12.7m to $2.2m $9.0m cents cents
▪ Continued strong growth in EPS and DPS despite increased weighting to lower yielding / EPS and DPS (cents)
higher growth metropolitan residential properties and land assets, and after issuing
new securities in late FY20
+14%
▪ Highly cash-generative business – annual operating cashflow (after interest expense) 8.00
+10%
has averaged $10.4m and 9.75cps over past 2 years 7.50
7.00 7.73
▪ Property NOI up 8% despite a 52% decline in NOI from Aspen Karratha Village while we 6.50
6.80
6.60
build a new customer base - Darwin Freespirit Resort NOI was up 332% driven by the 6.00
new F&B and entertainment facilities, some recovery in short stay accommodation and 5.50 6.00
cost reductions 5.00
4.50 5.15 5.00
▪ We continue to methodically grow development and trading (D&T) pipeline, revenues 4.00
and profits – D&T profits were a measured 15% of total portfolio NOI 3.50
3.00
▪ Margin expansion – property operations up 2 points to 44% and D&T up 1 point to 31% FY19 FY20 FY21
▪ Management Expense Ratio (MER) has reduced by more than 50% since FY19 to 1.8% EPS DPS
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Portfolio Transformation

Growing our customer base, equity value and profits while diversifying risks

FY19 Portfolio NOI Composition

FY21 Portfolio NOI Composition

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D&T AKV
D&T
14% 12%
5%
Retirement
12% Residential
AKV
30% 10% Total
Tourist Parks
Total $14.8m
26%
Mixed Parks $11.8m
24%
Retirement
15%
Tourist Parks
29%
Mixed Parks
23%
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Material Profit Drivers #1

Actively pivoting between short stay and long stay leases at our Park Communities during COVID...

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Average Daily Rate Occupancy Rate Total Park Accommodation Revenue - $m
$120 90% $20
80% $18
$100
70% $16
$14
$80 60%
$12
50%
$60 $10
40%
$8
$40 30%
$6
20% $4
$20
10% $2
$0 0% $0
FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21
Dwellings Sites Combined Dwellings Sites Combined Dwellings Sites Combined
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At the start of the pandemic in early 2020 we quickly moved to leasing our traditional tourist cabins for longer stay residential purposes – we have subsequently pivoted between short stay and longer stay leasing depending on the season and the ever-changing lockdown status
Across our whole portfolio of these cabins and sites, this strategy has resulted in lower average rates, but higher occupancy and total revenue - the cost of servicing longer stay residents is lower than for short stay, therefore total NOI has also increased
Our two parks most impacted by COVID-19, Tween Waters near the NSW-VIC border and Adelaide Caravan Park near the Adelaide CBD, still experienced material declines in NOI – we expect NOI to recover once lockdowns end

Excludes Aspen Karratha Village which was leased to Woodside under a long term arrangement until late January 2021

Material Profit Drivers #2

Growth in Development and Trading activity...

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Development & Trading Activity
Development & Trading Gross Margin Aspen’s Approved Land Development Sites
(settlements)
(book value per site)
+121% $3.0M +138% Wodonga
$30.0M 140 400 Gardens
+49%
$2.5M ($35k)
$25.0M 120 350
Lewis Fields
$20.0M 100 $2.0M 300 ($24k)
+149%
80 250
$15.0M +96% $1.5M Number of Sales - Mount Barker
60 +77% 200 Aspen Balance Sheet ($46k)
$10.0M $1.0M
40
150
$5.0M 20 $500.0K 100 SweetwaterGrove ($44k)
$0.0K 0
$0.0K 50
FY19 FY20 FY21 Four Lanterns
FY19 FY20 FY21
0 ($95k^)
Aspen Owned Managed Funds No. of Sales (RHS) Development & Trading Profit Gross Fee Income
FY19 FY20 FY21 FY22 YTD
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Development and trading activity continues to increase
Aspen achieved over $25m of development revenues from its own and funds’ projects - over time we expect an increasing proportion of development activity and returns to be on Aspen’s balance sheet
The repositioning and upgrade of Sweetwater Grove into a land lease retirement community has been well received by new customers – both prices and volumes of new house sales have increased
We are still in the planning phase for the Mount Barker development – optimising the configuration and mix of residential and land lease sites (STCA)
The acquisition of the Lewis Fields and Wodonga Gardens retirement communities adds 175 approved land development sites to Aspen’s pipeline at a very low cost
We expect to continue to rapidly grow D&T profits – we have already secured 31 deposits/contracts/sales in FY22 compared to 26 sales on balance sheet in FY21
Wodonga Gardens value is Aspen’s contracted purchase price – not yet externally valued. ^Four Lanterns sites are fully developed with all site infrastructure installed

Material Profit Drivers #3

Steady progress building a new customer base at Aspen Karratha Village...

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AKV Weekly Performance post Woodside
60% $160
$140
VALUATION ASSUMPTIONS – OCCUPANCY & ARR
50%
$120
40%
$100
30% $80
$60
ESTIMATED BREAKEVEN OCCUPANCY AT CURRENT ROOM RATE
20%
$40
10%
$20
0% $0
FEB 21 Occupancy (lhs) Average Room Rate JULY 21
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At AKV we pivoted to a short stay model after Woodside’s lease expiry in January 2021
We have internalised management of the property and relocated our park manager from Darwin Freespirit Resort – we now have greater control over the operations and distribution, and we have also reduced costs
We are upgrading cabins and common areas which will further enhance AKV as one of the best parks in the region
Occupancy has been building well across a very diverse customer base and room rates are materially higher than than under Woodside’s lease
Discussions are ongoing with major corporates for longer term leases – much of the potential growth in Karratha is contingent on Woodside greenlighting its major projects which has taken longer than we expected, but will hopefully occur in 1HFY22
AKV’s NOI was down 52% in FY21 compared to FY22 and -$78k in the second half – it has become profitable again in recent times and has been steadily building towards the calendar 2022 valuation assumptions, being:
Occupancy 52.5%
ARR $134 per night
NOI $2.9m
However, AKV NOI is very uncertain and likely to remain volatile while we operate it under a short stay model - Aspen is now in a stronger position to take this risk with the potential benefit of higher returns

Financial Performance – FY21

Key Metrics	FY21 $m	FY20 $m	Change
Statutory Profit	25.39	11.87	114%
Total Revenue	35.95	30.37	18%
Operating & Development Net Income	14.84	12.46	19%
Margin	41%	41%
- Rental & ancillary services revenue	29.07	28.13	3%
- Direct property expenses	(16.39)	(16.34)
Net Operating Income	12.68	11.78	8%
*Operating Margin*	44%	42%
- Development & trading revenue	6.88	2.25	206%
- Cost of sales	(4.72)	(1.57)
Net Development & Trading Income	2.16	0.68	220%
*Development & Trading Margin*	31%	30%
Net Corporate overheads	(4.50)	(4.43)	1%
Operating EBITDA	10.34	8.03	29%
Net finance expense	(1.34)	(1.39)	(3%)
Tax	-	-	-
Operating Profit1	9.00	6.64	36%
Securities (weighted) Operating EPS (cents)	116.4 7.73	97.6 6.80	19% 14%
DPS (cents)	6.60	6.00	10%

Rental and ancillary services revenue up 3% - mainly attributable to higher contributions from Darwin FreeSpirit Resort particularly from its new F&B and entertainment facilities, pivoting between short and long stay leases, and contributions from acquisitions including the Perth House Portfolio, Cooks Hill and Uniresort CoLiving communities
Net Operating Income up 8% - margin improved to 44% driven by good cost controls across the business
Net Development & Trading Income up 220% - sale of 26 houses mainly at Sweetwater Grove and Four Lanterns at an average margin of $83k (7 in FY20 at average margin of $96k)
Net corporate overheads up 1% - lower management expense ratio of 1.8%. Includes project management fees of $0.4m from the Mill Hill Capital funds
Net interest expense down 3% - lower interest rates offset higher borrowings
Nil tax – Aspen has a material amount of historic tax losses that currently shelters taxable profits
EPS up 14%
DPS up 10%
The insurance payout relating to the NSW South Coast bushfires in early 2020 has not been included in Operating Profit

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Non-IFRS measure used by management to assess the underlying performance of Aspen - excludes depreciation and amortisation, revaluations, and one-off and non-operating items. Refer to definition in financial statements.

Balance Sheet and Capital Management

Key Metrics	FY21 $m	FY20 $m	Change	Dec 2020 $m
Property Assets	228.7	167.0	37%	185.7
Total Assets	246.5	190.7	29%	205.4
- Cash	8.3	8.2		7.9
- Gross Debt	74.7	42.5		53.6
Net Debt	66.4	34.3	93%	45.7
Gearing1	27.9%	18.8%		23.1%
Loan to Value Ratio2	30.2%	20.6%		25.0%
Interest Cover Ratio3	7.1x	5.5x		6.9x
Net Asset Value (NAV)	152.6	134.0		140.2
Securities at period end	116.4m	116.3m		116.4m
NAV per Security	$1.31	$1.15	14%	$1.20

Property Assets up 37% - driven mainly by the acquisition of Cooks Hill and Uniresort co-living communities, Mount Barker land, Burleigh Heads build to rent community, and the Lewis Fields Retirement Village, and revaluation gains
Drawn debt of $74.7m, gearing of 27.9% and LTV of 30.2% - comfortably below covenant limit of 50%
Interest Cover Ratio (ICR) of 7.1x - comfortably above facility covenant limit of 2.0x
NAV up 14% over the year

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Net Debt divided by Total Assets less Cash less RV Resident Obligations (target range of 30-40%). 2. Debt facility LTV covenant is 50%. 3. Debt facility ICR covenant is 2.0x

Outlook

Aspen is well positioned to continue to grow profits and the book value of equity over the medium term and we are aiming for growth of at least 10% per annum...

▪ Residential:

Currently achieving average rent increase of 13% on lease renewals for our Perth houses post ending of WA’s moratorium in late March 2021
At Upper Mount Gravatt Co-Living occupancy is ahead of expectations and we have reduced costs quickly – NOI yield was over 7% annualised in first 3 months of ownership (versus initial guidance of 5% within 18 months)

▪ Park Communities:

Expect continued volatility due to COVID-19 and associated lockdowns
Tween Waters and Adelaide Caravan Park have been impacted the most and are expected to be more profitable once lockdowns end
Darwin Freespirit Resort is currently in its high season and is performing above last year
Burleigh Heads refurbishment is underway, and we expect the first 8 houses to be completed and leased by December 2021 with the remainder by June 2022. Total cost is expected to be $8.7m and net yield over 5.5%. Prices and rents have increased in this market since acquisition
We remain positive about Karratha’s growth prospects - AKV occupancy has been building well and room rate is well above the prior rate with Woodside, but NOI will remain volatile until a new short stay customer base is more established and or we enter into longer term leases with corporate customers
Cooks Hill Co-living redevelopment into 50 self-contained apartments has been approved and works are about to commence. We expect the project to be completed by the end of FY22 and start contributing to earnings in FY23. Total cost is expected to be $9.1m and net yield over 5.5%. Prices and rents have increased in this market since acquisition
Plenty of opportunities to improve our accommodation offering and profits through refurbishment / repositioning / redevelopment

▪ Development & Trading:

▪ Retirement Communities:

Land rents continue to increase at around 2-4% per annum – Mandurah Gardens increase was delayed due to the WA moratorium
Number of land leases continues to grow due to development activity - sales volumes and prices have been increasing for new houses at Sweetwater Grove and we expect Four Lanterns to be sold out this year
Development of new houses: already deposited/contracted/sold 31 in FY22 compared to 26 sales in all of FY21
Existing houses: selectively recycling capital from Perth houses at c.$100k profit margin on cost and <3% net yield – already deposited/contracted/sold 9 houses in FY22 compared to 2 sales in all of FY21

▪ Acquisitions:

Already 3 DMF rolls at Lewis Fields since acquisition – residents are supportive of our proposal to change to a land lease model for new houses
Wodonga Gardens acquisition is expected to settle in late August
Today we announced a new major acquisition of the Perth Apartment Portfolio at a price of $101k per apartment - this further enhances Aspen’s leading position in truly affordable accommodation

Aspen’s Credentials

✓ Customer-centric provider of quality accommodation on competitive terms

✓ Highly experienced and disciplined management team with substantial shareholdings in the company ✓ Integrated ownership, operating and development platform that is scalable

✓ Over 3,400 approved dwellings/sites generating diversified and reliable revenue streams

✓ Ample organic growth opportunities within the portfolio through refurbishment/repositioning/redevelopment ✓ Acquisitions constantly under review - addressable market worth over $1 trillion and growing ✓ Opportunities to recycle capital to fund profitable growth

✓ Strong ESG credentials – taking care of households that need more affordable accommodation, the environment, employees, suppliers and shareholders

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Port Kennedy, Perth

Portfolio Summary[2]

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Current Portfolio Summary

Current Portfolio Aggregates1
Properties	20
Land Area	92.4 hectares
Approved Sites	3,433
Dwellings owned by Aspen	1,695
Density: - sites per hectare	37
Portfolio Value: - per hectare	$287m $3.1m
- per approved dwelling/site	$83k
Valuation WACR	6.93%

Aspen currently has 20 properties valued at approximately $287m:
Average value of approximately $83k per approved dwelling/site
o Only $3.1m per hectare / $310 per sqm of land
WACR of 6.93%
Aspen also manages two major residential and retirement projects and earns project management fees for this service
General traits that Aspen seeks in properties it acquires:
Desirable locations – particularly metropolitan
Large land parcels that are under-utilised
Existing dwellings priced at well below replacement cost that have alternative uses and can be refurbished / repurposed
Land and development cost at the low end of (or below) local competition
o Competitive operating costs (e.g. tax incentives / subsidies) o Flexibility / optionality o Strong potential for higher value use over time

Increasing Property Value – providing our customers attractive lifestyles options at competitive prices and rents

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Camping / Sites Cabins Manufactured Homes Residential Homes Apartments / Co-Living
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Including the acquisitions of Wodonga Gardens Retirement Estate and Perth Apartments Portfolio at purchase price (before acquisition costs) which contracted post FY21 and have not yet settled

Aspen’s Competitive Prices and Rents

		Current Metrics1: Portfolio Value Number of Dwellings/Sites Average Value per Dwelling/Site WACR	Current Metrics1: Portfolio Value Number of Dwellings/Sites Average Value per Dwelling/Site WACR	$287m 3,433 $83k 6.93%
	Houses	Apartments	Mixed Use Parks	Land Lease Communities	Co-Living
Average Book Value per Dwelling/Site	$342k	$287k	$77k	$79k	$60k
Average Weekly Rent (Medium/Long Term)	$358	$2682	$3403	$166	$207

Including the acquisitions of Wodonga Gardens Retirement Estate and Perth Apartments Portfolio at purchase price (before acquisition costs) which contracted post FY21 and have not yet settled 2. Includes residents under Retirement Village leases at below-market rent

Aspen’s Portfolio Composition & Growth

Portfolio Composition[1,2] and Acquisition History

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+ Perth Apartments Portfolio
+ Wodonga Gardens
$m 33% growth p.a. over the last 5+ years…
+ Mount Barker
300
+ Burleigh Heads 286.6
+ Cooks Hill
+ UMG
+ Lewis Fields
250
+ Lindfield Apartments
+ Perth Residential Portfolio 228.6
+ Highway 1
200
+ Koala Shores 189.3
+ Darwin FSR
+ Tween Waters
+ Barlings Beach 149.1
150
AKV
Four Lanterns 120.8
Mandurah
Tomago
100 ACP 93.5
68.9
50
0
2016 2017 2018 2019 2020 2021 2022 YTD
Park Communities Retirement Communities Residential
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Aspen’s portfolio composition and income streams have improved materially over the past few years.
Increased weighting to:
- Metropolitan locations
- More stable, less seasonal rental income
- Capital growth v. income profile
- More liquid properties - individual houses and apartment buildings in metropolitan locations are easier and quicker to rent and sell
Continued pivoting between short stay and long stay offer when conditions change to maximise profits
AKV weighting has reduced considerably – Aspen is in a stronger position to be able to optimise risks/rewards

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Based on property carrying values at FY21. Including the acquisitions of Wodonga Gardens Retirement Estate and Perth Apartments Portfolio at purchase price (before acquisition costs) which contracted post FY21 and have not yet settled 2. Excludes value of CREST and Coorong Quays which are managed by Aspen Group and owned by Funds

FY22 YTD Acquisitions – Attractively Priced and Building Significant Scale

Wodonga Gardens Retirement Estate, Victoria

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Perth Apartments Portfolio

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Status: Contracted July 2021 Purchase Price: $6.01m Dwellings/Sites: 172 comprising: 51 Homes and 121 approved development sites Land Area: 8.8 hectares

Contracted August 2021

$52.0m 514 apartments 4.7 hectares

Value Metric:

Per Site/

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$35k per site

$101k per apartment

H2 FY21 Acquisitions – Attractively Priced

Uniresort Co-Living, Upper Mount Gravatt, QLD

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Lewis Fields Retirement Village, Strathalbyn, SA

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Status:	Settled April 2021 Settled June 2021
Purchase Price:	$18.5m $2.36m
Approved Sites/Dwellings:	308 80 comprising: 26 Homes and 54 approved development sites
Land Area:	1.2 hectares 3.7 hectares
Value Metric:
- Per Site/dwelling	$60k per room or $280k per apartment $30k per site

Warnbro Beach, Waikiki, Perth

3 Aspen Karratha Village, WA Burleigh Heads, QLD Operations and Development & Trading

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Property NOI – FY21 vs. FY20

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Residential Communities Retirement Communities Park Communities
Cooks Hill ResidentialPerth LanternsFour FieldsLewis Barlings Beach Darwin FSR AKV
developmentUnder +139% +6% New +18% +332% -52%
Lindfield Mandurah Highway Koala
Uniresort Gardens [1] One Shores
Apartments
New -5% -2% +48%
+83%
Adelaide
Burleigh Sweetwater
CP
Heads Grove
-34%
Under -4%
development
Mount
Barker Tween
Waters
Under
development 110%
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Adjusted for abnormal land tax refund in FY20

Development & Trading Activity

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Solid momentum in development and trading activity has continued in Development & Trading Activity No. of Sales
FY21 with 26 house settlements v. 7 for FY20: Sales (settlements)
$30.0M +121% 140
▪ Development and sales of houses under a land lease model:
$25.0M 120
- 23 house settlements in FY21 v. 7 for FY20
100
$20.0M
- Four Lanterns: profit of $1,195k from the sale of 11 houses ($676k 80
$15.0M
profit in FY20) +96% 60
- $10.0M
Sweetwater Grove sales commenced in FY21 generating profit of 40
$693k from the sale of 12 houses $5.0M 20
-
The average sales margin at Four Lanterns was $109k and $58k at $0.0K 0
Sweetwater Grove FY19 FY20 FY21
-
Mandurah Gardens Estate: profit of $84k was recorded on the sale of Aspen Owned Managed Funds No. of Sales (RHS)
the manager residence that is no longer required
▪ Project management of MHC Funds’ residential and retirement Development & Trading Gross Margin
developments:
-
Fee income of $400k ($350k in FY20) $3.0M +138%
▪ Resale of homes in our communities where Aspen acts as agent: $2.5M
$2.0M
- Gross fee income [1 ] of $175k from the resale of 15 homes at Mandurah
$1.5M
Gardens Estate excluding manager residence ($125k in FY20) +77%
$1.0M
▪ Trading profits from sale of existing properties:
$500.0K
-
We continue to selectively sell houses from the Perth residential house $0.0K
portfolio where it is more beneficial to sell than to re-lease once tenants FY19 FY20 FY21
vacate and refurbishment works are completed. In FY21 profit of $187k
was recorded on the sale of 2 houses at an average sales margin of
Development & Trading Profit Gross Fee Income
$93k.
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Before sales fees

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Marina at Coorong Quays, SA

4 Managed Funds

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Funds Managed by Aspen – FY21

Coorong Quays

Operating profit 16% above FY21
Marina berth occupancy up 12%
Excellent land sales with 131 contracts in FY21 compared to 23 for FY20. 80 land and house lots are due for settlement in FY22 at 30 June 2021
Land prices have moved up across the development with similar lots selling in FY21 for over 50% more than in FY20.
Completed civil works on 72 residential land lots in 1H FY21 and commenced works on a further 70 lots for completion in 1H FY22.
Preparation on a further 65+ land lots to be developed in 2H FY22
6 houses in ACLV have sold or contracted in FY21. We have 1 house in inventory and a further 4 houses under construction We are now developing a pipeline of off-plan sales with 1 already completed.
Project on track for at least a 2-3x equity multiple

CREST @ Woodside

All civil works are approaching completion, with all titles expected to be created in 1HFY22.
20 houses and 9 land lots (29 in total) settled in FY21 compared to 15 for FY20.
There are contracts on a further 31 house and land lots to be settled in FY22.
Final 12 homes are undergoing their refurbishments with completion expected by Oct 2022.
Currently undertaking feasibility and planning for the creation of further lots on a c.3ha portion of the site
Project on track to generate 2-3x equity multiple

Rockleigh

All lots have now been sold and settled

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Coorong Quays, SA – a developed and sold-out land stage from FY21
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Alexandrina Cove Lifestyle Village, Coorong Quays, SA – new homes
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[5] ESG

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Environmental, Social and Corporate Governance Program

Social

Aspen improves society and reduces inequality by providing quality accommodation on affordable terms to a wide variety of Australian households in residential, retirement and park communities. We typically rent dwellings for under $400 per week and land sites for under $200 per week and sell new houses at our land lease communities for under $400,000.
We support our customers in a variety of ways so that they can live happier and healthier lives. For instance, we foster a social, diverse and inclusive culture in our communities by providing onsite management, customer services and community spaces and facilities. This gives our customers a sense of home and meaningful connections to the community.
Some of our properties are located in past and present Indigenous communities and we actively seek to help these communities and conserve heritage items. For instance, to help protect the Barlings Beach Aboriginal Place, we recently completed an archaeological dig within our Barlings Beach park community with the assistance of the Mogo Local Aboriginal Land Council. Another example is the protection and proposed public display of an Aboriginal Scar Tree within our Mount Barker property.

Environmental

Looking after the environment, today and for future generations is essential. We recognise the need to continually reduce environmental impacts, work towards sustainable resource use and ensure emissions are at or below levels that can be reabsorbed without harm.
Aspen has a carbon emission reduction target for the assets that it controls that is in accordance with the 2015 Paris Agreement.
In reviewing our environmental performance and objectives we consider not only the impact of our own operations but the performance of the dwellings within our communities that are owned by our customers. We continually embrace new technologies to deliver innovative products and services to our customers whilst minimising costs and our ecological footprint.
Reduced resource use, energy intensity and CO2 emissions are inherent in Aspen’s business model because we provide accommodation with some or all the following attributes:
Communal living – more efficient sharing of resources such as living, dining, entertaining and recreational spaces, and transport (community bus)
Dwelling size less than half the Australian average for new homes – about 40% of household energy use is for temperature control (heating and cooling) and this is proportional to floorspace
New homes and community facilities with improved building techniques, designs and materials that must meet current regulated building standards including energy efficiency (eg. replacing obsolete vans/annexes with highly insulated Xodboxes that require significantly less energy to operate)
Renewable energy installations such as rooftop solar, solar-boosted gas/electric water heaters and solar street lighting - we intend to install batteries at our properties if they become economic for our customer base
Water saving devices and recycling - clean water requires energy to produce and distribute
Community gardens - local food production reduces transport requirements and absorbs CO2
Recycling and composting facilities - composting food reduces CO2 emissions relative to burying food
Relatively high levels of vegetation that absorbs CO2
Replacing our vehicles with more efficient or electric/hybrid versions when appropriate
Metering – making customers more aware of their electricity, gas and water use and charging directly for it to influence behaviour

Environmental, Social and Corporate Governance Program

Governance

Aspen Group comprises the stapled head entities Aspen Group Limited and Aspen Property Trust. Aspen Group Limited is a company with a Board of Directors. Aspen Property Trust is a trust governed by a Responsible Entity, Evolution Trustees Limited which is independent from Aspen Group Limited and has its own Board. Between the two entities’ Boards, there are currently 6 members of which 5 are considered independent. The only member who is considered non-independent is the Joint Chief Executive Officer by virtue of his executive role and substantial shareholding in Aspen Group.
Aspen's governance framework is led by the Aspen Group Limited Board and the senior executives. They currently focus on the following from a sustainability perspective:
The health and safety of employees, contractors, customers and visitors

o Legal and regulatory requirements

o Environmental impacts

o Stakeholder engagement

The Board has ultimate responsibility for ensuring that Aspen’s sustainability strategies are robust and that systems are in place for managing Aspen's key areas of sustainability risk and opportunity.
Our senior executives ensure that the organisation continues to perform in a way that demonstrates integrity on our environmental position, our commitment to the communities in which we operate and the opportunities we provide for our people and business partners to contribute to current and future generations.
Our current Key Management Personnel are the Joint Chief Executive Officers. They are aligned to the long-term performance of Aspen Group through their substantial personal shareholdings and the structure of their remuneration packages where 50% of total remuneration is deferred for up to 3 years and subject to vesting conditions including qualitative and quantitative performance measures.

Further information on Aspen’s ESG program including our approach to sustainable procurement, employees, and OH&S is available on our company website.

Appendix A

Koala Shores Holiday Park, NSW

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Property Details

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Aspen’s portfolio is geographically diversified…

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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Land Area|Dwellings/|
|NT|
|(Hectares)|Sites|
|Land Area|
|WA|Dwellings/Sites|
|(Hectares)|17|Darwin FreeSpirit|10.8|461|
|13|Mandurah|6.8|158|
|14|AKV|2.9|180|
|17|
|15|Perth House Portfolio|3.0|82|
|Land Area|Dwellings/|
|Queensland|
|16|Perth Apartment Portfolio|4.7|514|(Hectares)|Sites|
|18|Burleigh Heads|0.9|18|
|19|Uniresort UMG|1.2|308|
|$18m (6%)|
|14|
|Portfolio Value|[1]|: ~$287m|NSW|Land Area (Hectares)|Dwellings/Sites|
|19|
|1|Four Lanterns|3.9|131|
|$22m (8%)|18|
|$110m (38%)|2|Sweetwater|Grove|6.0|214|
|3|Lindfield Kiah|0.19|20|
|4|Lindfield|Kalinda|0.16|22|
|16|15|$55m (19%)|5|Koala Shores|5.1|144|
|13|
|10|i|$76m (27%)|5|2|8|6|Barlings Beach|8.8|260|
|1|3/4|
|9|11|
|12|7|Tween Waters|1.9|98|
|ii|
|6|8|Cooks Hill|0.19|55|
|Land Area|Dwellings/|20|7|
|SA|
|(Hectares)|Sites|$6m (2%)|
|9|Adelaide CP|1.5|97|
|10|Highway One|9.9|322|
|11|Mount Barker|11.5|97|Land Area|Dwellings/|
|Victoria|
|12|Lewis Fields|3.7|80|(Hectares)|Sites|
|i|CREST|[2]|22|98|20|Wodonga Gardens|8.8|172|
|ii|Coorong Quays|[2]|225|471+|

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Including the acquisitions of Wodonga Gardens Retirement Estate and Perth Apartments Portfolio at purchase price (before acquisition costs) which contracted post FY21 and have not yet settled
CREST and Coorong Quays are owned by Funds managed by Aspen Group

Aspen Group: Portfolio Summary

										Victoria Queensland Wodonga Gardens6 Uniresort Burleigh Heads Total QLD Albury- Wodonga Brisbane Metro Gold Coast Freehold Freehold Freehold Retirement Village Rental Rental 8.8 1.2 0.94 2.1 51 308 18 326 121 0 0 0 172 308 18 326 20 256 19 152 51 308 18 326 30% 100% 100% 100% $6.01 $18.50 $3.52 $22.02 N/A 5.68% N/A 5.68% $3.40 $15.35 $3.74 $10.26 $34,942 $60,065 $195,500 $67,543	Victoria Queensland Wodonga Gardens6 Uniresort Burleigh Heads Total QLD Albury- Wodonga Brisbane Metro Gold Coast Freehold Freehold Freehold Retirement Village Rental Rental 8.8 1.2 0.94 2.1 51 308 18 326 121 0 0 0 172 308 18 326 20 256 19 152 51 308 18 326 30% 100% 100% 100% $6.01 $18.50 $3.52 $22.02 N/A 5.68% N/A 5.68% $3.40 $15.35 $3.74 $10.26 $34,942 $60,065 $195,500 $67,543	Victoria Queensland Wodonga Gardens6 Uniresort Burleigh Heads Total QLD Albury- Wodonga Brisbane Metro Gold Coast Freehold Freehold Freehold Retirement Village Rental Rental 8.8 1.2 0.94 2.1 51 308 18 326 121 0 0 0 172 308 18 326 20 256 19 152 51 308 18 326 30% 100% 100% 100% $6.01 $18.50 $3.52 $22.02 N/A 5.68% N/A 5.68% $3.40 $15.35 $3.74 $10.26 $34,942 $60,065 $195,500 $67,543	Victoria Queensland Wodonga Gardens6 Uniresort Burleigh Heads Total QLD Albury- Wodonga Brisbane Metro Gold Coast Freehold Freehold Freehold Retirement Village Rental Rental 8.8 1.2 0.94 2.1 51 308 18 326 121 0 0 0 172 308 18 326 20 256 19 152 51 308 18 326 30% 100% 100% 100% $6.01 $18.50 $3.52 $22.02 N/A 5.68% N/A 5.68% $3.40 $15.35 $3.74 $10.26 $34,942 $60,065 $195,500 $67,543
	New South Wales									Victoria	Queensland
	Four Lanterns	Lindfield Kiah	Lindfield Kalinda	Sweetwater Grove	Koala Shores	Cooks Hill	Barlings Beach	Tween Waters	Total NSW	Wodonga Gardens6	Uniresort	Burleigh Heads	Total QLD
Region	Sydney Metro Sydney Metro Sydney Metro Central Coast Central Coast Central Coast South Coast South Coast									Albury- Wodonga	Brisbane Metro Gold Coast
Land Ownership	Freehold Freehold Freehold Freehold Free/Leasehold Freehold Freehold Freehold									Freehold	Freehold Freehold
Resident Tenure	Land Lease Rental Rental Land Lease / Rental Short Stay Rental Land Lease / Short Stay Short Stay									Retirement Village	Rental Rental
Total Land Area (HA)1	3.9 0.19 0.16 6.0 5.1 0.19 8.8 1.9								26.3	8.8	1.2 0.94		2.1

Operational Sites	121 20 22 126 144 55 260 98								846	51	308 18		326
Pipeline - Undeveloped Sites	10 0 0 88 0 0 0 0								98	121	0 0		0
Total Approved Sites2	131 20 22 214 144 55 260 98								944	172	308 18		326
- per Ha	33 104 140 36 28 289 30 50								36	20	256 19		152
Owned Dwelling Inventory3	0 20 22 1 40 55 33 33								204	51	308 18		326
- per Approved Site	0% 100% 100% 0% 28% 100% 13% 34%								22%	30%	100% 100%		100%

Book Value4 ($m)	$12.44 $7.00 $5.06 $13.63 $9.75 $3.87 $16.45 $8.10								$76.31	$6.01	$18.50 $3.52		$22.02
Valuation Cap Rate5	6.50% 3.74% 3.97% 8.50% 8.85% N/A 7.75% 9.00%								7.31%	N/A	5.68% N/A		5.68%
Value Per HA ($m)	$3.17 $36.31 $32.26 $2.27 $1.92 $20.38 $1.88 $4.16								$2.91	$3.40	$15.35 $3.74		$10.26
Value Per Approved Site	$94,977 $350,200 $229,909 $63,710 $67,708 $70,400 $63,269 $82,653								$80,837	$34,942	$60,065 $195,500		$67,543

Aspen Group: Portfolio Summary

	Western Australia	Western Australia	Western Australia	Western Australia	Western Australia	South Australia	South Australia	South Australia	South Australia	South Australia	NT	Australia
	Mandurah Gardens	AKV	Perth House Portfolio	Perth Apartment Portfolio6	Total WA	Adelaide CP	Highway One	Mount Barker	Lewis Fields	Total SA	Darwin FSR
Region	South Coast Pilbara Perth Metro Perth Metro					Adelaide Metro Adelaide Metro Adelaide Hills					Darwin Metro
Land Ownership	Freehold Freehold Freehold Freehold					Freehold Freehold Freehold					Freehold
Resident Tenure	Land Lease Short Stay Rental Rental					Short Stay Short Stay / Land Lease Retirement Village					Short Stay / Rental
Total Land Area (HA)1	6.8 2.9 3.3 4.7				17.8	1.5 9.9 11.5 3.7				26.6	10.8	92.4

Operational Sites	158 180 82 514				934	97 322 0 26				445	461	3,063
Pipeline - Undeveloped Sites	0 0 0 0				0	0 0 97 54				151	0	370
Total Approved Sites2	158 180 82 514				934	97 322 97 80				596	461	3,433
- per Ha	23 62 25 108				53	65 33 8 22				22	43	37
Owned Dwelling Inventory3	0 180 82 514				776	47 115 N/A 26				188	150	1,695
- per Approved Site	0% 100% 100% 100%				83%	48% 36% N/A 33%				32%	33%	49%

Book Value4 ($m)	$13.73 $16.00 $28.05 $52.00				$109.78	$13.10 $28.35 $4.59 $8.827				$54.86	$17.59	$286.58
Valuation Cap Rate5	7.58% 17.00% 3.01% 4.00%				6.09%	8.01% 8.24% N/A N/A				8.17%	9.00%	6.93%
Value Per HA ($m)	$2.03 $5.47 $8.40 $10.96				$6.18	$8.73 $2.87 $0.40 $2.38				$2.06	$1.63	$3.10
Value Per Approved Site	$86,899 $88,889 $342,073 $101,167				$117,537	$135,052 $88,043 $47,361 $110,250				$92,054	$38,161	$83,477

Sweetwater Grove land area excludes "Environmental Conservation" land that is not currently approved for development
Approved Sites is the total number of underlying units or land sites currently permitted on the property under title, licence or other conditions
Owned Dwelling Inventory are houses, apartments, cabins, vans, commercial/retail space etc. that Aspen owns that can be sold or leased on short to long term basis to customers
Property values are a mixture of Directors’ and external valuations
Valuation cap rate that has been applied by external valuers in the most recent external valuations. Perth apartment portfolio is current estimate of stabilised yield
Acquisition of Wodonga Gardens Retirement Estate and Perth Apartments Portfolio at purchase price (before acquisition costs) which contracted post FY21 and have not yet settled 7. Based on gross book value

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Operational Performance and Opportunities

	Residential Communities Perth Portfolio Lindfield Apartments Cooks Hill Co-Living Burleigh Heads UMG ▪ Modern family dwellings acquired in Nov 2019 for $20.0m1 equating to average price of $238k per dwelling ▪ Portfolio is generally fully leased2, quality of tenancies has improved and arrears have declined ▪ Achieved average rent increase of 13% on lease renewals ▪ Portfolio has been externally revalued at $28.05m, representing over 40% increase on cost ▪ Treatts Road refurbishment program almost complete and only 3 Retirement tenants remaining ▪ Both Treatts Road and Pacific Highway properties are generally fully leased2 and market rents have been recovering from cyclical lows during the depths of COVID ▪ Acquired in July 2020 for $3.75m1 equating to only $68k per room ▪ Council have approved plans to redevelop and expand into a co- living community with 50 self- contained studio apartments ▪ The building has been fully vacated in preparation for building works which are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $9.1m ($182k per unit) and net yield over 5.5% ▪ Acquired in December 2020 for $3.15m1 equating to average price of $175k per house ▪ Engineering and refurbishment works have commenced and are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $8.7m ($483k per house) and net yield over 5.5% • Acquired in April 2021 for $18.5m1 equating to an average of $60k per room or $280k per apartment. • Occupancy increase and cost reduction achieved quickly • NOI yield was over 7% annualised in first 3 months of ownership (versus initial guidance of 5% within 18 months) ▪ We continue to selectively redeploy capital from our Perth residential portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed. In FY22 we have so far settled the sale of five houses and entered into conditional contracts on another four at an average price of $435k and average profit margin per house of $107k after all costs ▪ Review of Retirement Village scheme status at Treatts Road ▪ Pacific Highway property is zoned high density residential ▪ Median price of 1 bedroom units in Newcastle is $530k (Domain.com.au) ▪ Median price of 3 bedroom houses in Burleigh Heads is $913k (Domain.com.au) ▪ The land is zoned High Density Residential Up to 8 stories, and about 24,000sqm of gross floor area can be developed which is over twice the current density	Residential Communities Perth Portfolio Lindfield Apartments Cooks Hill Co-Living Burleigh Heads UMG ▪ Modern family dwellings acquired in Nov 2019 for $20.0m1 equating to average price of $238k per dwelling ▪ Portfolio is generally fully leased2, quality of tenancies has improved and arrears have declined ▪ Achieved average rent increase of 13% on lease renewals ▪ Portfolio has been externally revalued at $28.05m, representing over 40% increase on cost ▪ Treatts Road refurbishment program almost complete and only 3 Retirement tenants remaining ▪ Both Treatts Road and Pacific Highway properties are generally fully leased2 and market rents have been recovering from cyclical lows during the depths of COVID ▪ Acquired in July 2020 for $3.75m1 equating to only $68k per room ▪ Council have approved plans to redevelop and expand into a co- living community with 50 self- contained studio apartments ▪ The building has been fully vacated in preparation for building works which are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $9.1m ($182k per unit) and net yield over 5.5% ▪ Acquired in December 2020 for $3.15m1 equating to average price of $175k per house ▪ Engineering and refurbishment works have commenced and are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $8.7m ($483k per house) and net yield over 5.5% • Acquired in April 2021 for $18.5m1 equating to an average of $60k per room or $280k per apartment. • Occupancy increase and cost reduction achieved quickly • NOI yield was over 7% annualised in first 3 months of ownership (versus initial guidance of 5% within 18 months) ▪ We continue to selectively redeploy capital from our Perth residential portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed. In FY22 we have so far settled the sale of five houses and entered into conditional contracts on another four at an average price of $435k and average profit margin per house of $107k after all costs ▪ Review of Retirement Village scheme status at Treatts Road ▪ Pacific Highway property is zoned high density residential ▪ Median price of 1 bedroom units in Newcastle is $530k (Domain.com.au) ▪ Median price of 3 bedroom houses in Burleigh Heads is $913k (Domain.com.au) ▪ The land is zoned High Density Residential Up to 8 stories, and about 24,000sqm of gross floor area can be developed which is over twice the current density	Residential Communities Perth Portfolio Lindfield Apartments Cooks Hill Co-Living Burleigh Heads UMG ▪ Modern family dwellings acquired in Nov 2019 for $20.0m1 equating to average price of $238k per dwelling ▪ Portfolio is generally fully leased2, quality of tenancies has improved and arrears have declined ▪ Achieved average rent increase of 13% on lease renewals ▪ Portfolio has been externally revalued at $28.05m, representing over 40% increase on cost ▪ Treatts Road refurbishment program almost complete and only 3 Retirement tenants remaining ▪ Both Treatts Road and Pacific Highway properties are generally fully leased2 and market rents have been recovering from cyclical lows during the depths of COVID ▪ Acquired in July 2020 for $3.75m1 equating to only $68k per room ▪ Council have approved plans to redevelop and expand into a co- living community with 50 self- contained studio apartments ▪ The building has been fully vacated in preparation for building works which are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $9.1m ($182k per unit) and net yield over 5.5% ▪ Acquired in December 2020 for $3.15m1 equating to average price of $175k per house ▪ Engineering and refurbishment works have commenced and are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $8.7m ($483k per house) and net yield over 5.5% • Acquired in April 2021 for $18.5m1 equating to an average of $60k per room or $280k per apartment. • Occupancy increase and cost reduction achieved quickly • NOI yield was over 7% annualised in first 3 months of ownership (versus initial guidance of 5% within 18 months) ▪ We continue to selectively redeploy capital from our Perth residential portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed. In FY22 we have so far settled the sale of five houses and entered into conditional contracts on another four at an average price of $435k and average profit margin per house of $107k after all costs ▪ Review of Retirement Village scheme status at Treatts Road ▪ Pacific Highway property is zoned high density residential ▪ Median price of 1 bedroom units in Newcastle is $530k (Domain.com.au) ▪ Median price of 3 bedroom houses in Burleigh Heads is $913k (Domain.com.au) ▪ The land is zoned High Density Residential Up to 8 stories, and about 24,000sqm of gross floor area can be developed which is over twice the current density	Residential Communities Perth Portfolio Lindfield Apartments Cooks Hill Co-Living Burleigh Heads UMG ▪ Modern family dwellings acquired in Nov 2019 for $20.0m1 equating to average price of $238k per dwelling ▪ Portfolio is generally fully leased2, quality of tenancies has improved and arrears have declined ▪ Achieved average rent increase of 13% on lease renewals ▪ Portfolio has been externally revalued at $28.05m, representing over 40% increase on cost ▪ Treatts Road refurbishment program almost complete and only 3 Retirement tenants remaining ▪ Both Treatts Road and Pacific Highway properties are generally fully leased2 and market rents have been recovering from cyclical lows during the depths of COVID ▪ Acquired in July 2020 for $3.75m1 equating to only $68k per room ▪ Council have approved plans to redevelop and expand into a co- living community with 50 self- contained studio apartments ▪ The building has been fully vacated in preparation for building works which are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $9.1m ($182k per unit) and net yield over 5.5% ▪ Acquired in December 2020 for $3.15m1 equating to average price of $175k per house ▪ Engineering and refurbishment works have commenced and are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $8.7m ($483k per house) and net yield over 5.5% • Acquired in April 2021 for $18.5m1 equating to an average of $60k per room or $280k per apartment. • Occupancy increase and cost reduction achieved quickly • NOI yield was over 7% annualised in first 3 months of ownership (versus initial guidance of 5% within 18 months) ▪ We continue to selectively redeploy capital from our Perth residential portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed. In FY22 we have so far settled the sale of five houses and entered into conditional contracts on another four at an average price of $435k and average profit margin per house of $107k after all costs ▪ Review of Retirement Village scheme status at Treatts Road ▪ Pacific Highway property is zoned high density residential ▪ Median price of 1 bedroom units in Newcastle is $530k (Domain.com.au) ▪ Median price of 3 bedroom houses in Burleigh Heads is $913k (Domain.com.au) ▪ The land is zoned High Density Residential Up to 8 stories, and about 24,000sqm of gross floor area can be developed which is over twice the current density	Residential Communities Perth Portfolio Lindfield Apartments Cooks Hill Co-Living Burleigh Heads UMG ▪ Modern family dwellings acquired in Nov 2019 for $20.0m1 equating to average price of $238k per dwelling ▪ Portfolio is generally fully leased2, quality of tenancies has improved and arrears have declined ▪ Achieved average rent increase of 13% on lease renewals ▪ Portfolio has been externally revalued at $28.05m, representing over 40% increase on cost ▪ Treatts Road refurbishment program almost complete and only 3 Retirement tenants remaining ▪ Both Treatts Road and Pacific Highway properties are generally fully leased2 and market rents have been recovering from cyclical lows during the depths of COVID ▪ Acquired in July 2020 for $3.75m1 equating to only $68k per room ▪ Council have approved plans to redevelop and expand into a co- living community with 50 self- contained studio apartments ▪ The building has been fully vacated in preparation for building works which are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $9.1m ($182k per unit) and net yield over 5.5% ▪ Acquired in December 2020 for $3.15m1 equating to average price of $175k per house ▪ Engineering and refurbishment works have commenced and are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $8.7m ($483k per house) and net yield over 5.5% • Acquired in April 2021 for $18.5m1 equating to an average of $60k per room or $280k per apartment. • Occupancy increase and cost reduction achieved quickly • NOI yield was over 7% annualised in first 3 months of ownership (versus initial guidance of 5% within 18 months) ▪ We continue to selectively redeploy capital from our Perth residential portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed. In FY22 we have so far settled the sale of five houses and entered into conditional contracts on another four at an average price of $435k and average profit margin per house of $107k after all costs ▪ Review of Retirement Village scheme status at Treatts Road ▪ Pacific Highway property is zoned high density residential ▪ Median price of 1 bedroom units in Newcastle is $530k (Domain.com.au) ▪ Median price of 3 bedroom houses in Burleigh Heads is $913k (Domain.com.au) ▪ The land is zoned High Density Residential Up to 8 stories, and about 24,000sqm of gross floor area can be developed which is over twice the current density
	Residential Communities
	Perth Portfolio	Lindfield Apartments	Cooks Hill Co-Living	Burleigh Heads	UMG
Highlights	▪ Modern family dwellings acquired in Nov 2019 for $20.0m1 equating to average price of $238k per dwelling ▪ Portfolio is generally fully leased2, quality of tenancies has improved and arrears have declined ▪ Achieved average rent increase of 13% on lease renewals ▪ Portfolio has been externally revalued at $28.05m, representing over 40% increase on cost	▪ Treatts Road refurbishment program almost complete and only 3 Retirement tenants remaining ▪ Both Treatts Road and Pacific Highway properties are generally fully leased2 and market rents have been recovering from cyclical lows during the depths of COVID	▪ Acquired in July 2020 for $3.75m1 equating to only $68k per room ▪ Council have approved plans to redevelop and expand into a co- living community with 50 self- contained studio apartments ▪ The building has been fully vacated in preparation for building works which are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $9.1m ($182k per unit) and net yield over 5.5%	▪ Acquired in December 2020 for $3.15m1 equating to average price of $175k per house ▪ Engineering and refurbishment works have commenced and are anticipated to take approximately 9 months to complete ▪ Total cost is expected to be $8.7m ($483k per house) and net yield over 5.5%	• Acquired in April 2021 for $18.5m1 equating to an average of $60k per room or $280k per apartment. • Occupancy increase and cost reduction achieved quickly • NOI yield was over 7% annualised in first 3 months of ownership (versus initial guidance of 5% within 18 months)
Opportunities	▪ We continue to selectively redeploy capital from our Perth residential portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed. In FY22 we have so far settled the sale of five houses and entered into conditional contracts on another four at an average price of $435k and average profit margin per house of $107k after all costs	▪ Review of Retirement Village scheme status at Treatts Road ▪ Pacific Highway property is zoned high density residential	▪ Median price of 1 bedroom units in Newcastle is $530k (Domain.com.au)	▪ Median price of 3 bedroom houses in Burleigh Heads is $913k (Domain.com.au)	▪ The land is zoned High Density Residential Up to 8 stories, and about 24,000sqm of gross floor area can be developed which is over twice the current density

Pre-transaction costs. 2. Excluding dwellings under refurbishment or for sale

Operational Performance and Opportunities

	Retirement Communities Park Communities Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 6% on FY20 with increased rate, increased number of sites leased and good cost control ▪ 11 new house sales were settled in FY21 at an average price of $338k ▪ NOI down 5% on FY20 (adjusted for land tax reversal in pcp) reflecting the moratorium on rent increases which was lifted on 28 March 2021 ▪ 16 houses were sold in FY21 (vs 9 in FY20), with 13 being sold in H2 as Perth residential vacancies have declined and residential rents and prices have increased • We have reduced our sales commission rate to encourage higher internally managed sales ▪ The repositioning and upgrade into a land lease retirement community has been well received by new customers ▪ NOI down 4% on FY20 primarily due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses well underway - 12 new house sales were settled in FY21 at an average price of $230k and land rent of $160 per week ▪ NOI up 18% on FY20 due to increase in rates, pivoting the traditional tourist cabins between short stay and longer stay leases sat optimal times, and because FY20 was impacted by the summer bushfires ▪ NOI down 2% on FY20 with short stay tourism and corporate custom being impacted by COVID and chaotic travel and gathering restrictions ▪ Trial of 4 new Xodboxes has been very successful – quickly leased for residential use at rents of $275- $325 per week, achieving marginal ROCE >15% ▪ 10 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ 6 houses contracted/deposited so far in FY22 ▪ Local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Steady sales in FY22 with 4 settlements/contracts already ▪ Increased pricing on new houses ▪ 8 houses contracted/deposited in FY22 already ▪ New house pipeline increased by freeing up land – still 88 sites remaining ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into higher quality retirement community ▪ Upgrade of park facilities and infrastructure has commenced following completion of heritage study ▪ Potential to further differentiate site fees in accordance with location (beachside v. landside) ▪ Potential to sell our beachfront tourist cabins and lease the land sites to increase ROCE ▪ Infrastructure upgrades to improve efficiency and amenity ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land	Retirement Communities Park Communities Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 6% on FY20 with increased rate, increased number of sites leased and good cost control ▪ 11 new house sales were settled in FY21 at an average price of $338k ▪ NOI down 5% on FY20 (adjusted for land tax reversal in pcp) reflecting the moratorium on rent increases which was lifted on 28 March 2021 ▪ 16 houses were sold in FY21 (vs 9 in FY20), with 13 being sold in H2 as Perth residential vacancies have declined and residential rents and prices have increased • We have reduced our sales commission rate to encourage higher internally managed sales ▪ The repositioning and upgrade into a land lease retirement community has been well received by new customers ▪ NOI down 4% on FY20 primarily due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses well underway - 12 new house sales were settled in FY21 at an average price of $230k and land rent of $160 per week ▪ NOI up 18% on FY20 due to increase in rates, pivoting the traditional tourist cabins between short stay and longer stay leases sat optimal times, and because FY20 was impacted by the summer bushfires ▪ NOI down 2% on FY20 with short stay tourism and corporate custom being impacted by COVID and chaotic travel and gathering restrictions ▪ Trial of 4 new Xodboxes has been very successful – quickly leased for residential use at rents of $275- $325 per week, achieving marginal ROCE >15% ▪ 10 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ 6 houses contracted/deposited so far in FY22 ▪ Local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Steady sales in FY22 with 4 settlements/contracts already ▪ Increased pricing on new houses ▪ 8 houses contracted/deposited in FY22 already ▪ New house pipeline increased by freeing up land – still 88 sites remaining ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into higher quality retirement community ▪ Upgrade of park facilities and infrastructure has commenced following completion of heritage study ▪ Potential to further differentiate site fees in accordance with location (beachside v. landside) ▪ Potential to sell our beachfront tourist cabins and lease the land sites to increase ROCE ▪ Infrastructure upgrades to improve efficiency and amenity ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land	Retirement Communities Park Communities Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 6% on FY20 with increased rate, increased number of sites leased and good cost control ▪ 11 new house sales were settled in FY21 at an average price of $338k ▪ NOI down 5% on FY20 (adjusted for land tax reversal in pcp) reflecting the moratorium on rent increases which was lifted on 28 March 2021 ▪ 16 houses were sold in FY21 (vs 9 in FY20), with 13 being sold in H2 as Perth residential vacancies have declined and residential rents and prices have increased • We have reduced our sales commission rate to encourage higher internally managed sales ▪ The repositioning and upgrade into a land lease retirement community has been well received by new customers ▪ NOI down 4% on FY20 primarily due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses well underway - 12 new house sales were settled in FY21 at an average price of $230k and land rent of $160 per week ▪ NOI up 18% on FY20 due to increase in rates, pivoting the traditional tourist cabins between short stay and longer stay leases sat optimal times, and because FY20 was impacted by the summer bushfires ▪ NOI down 2% on FY20 with short stay tourism and corporate custom being impacted by COVID and chaotic travel and gathering restrictions ▪ Trial of 4 new Xodboxes has been very successful – quickly leased for residential use at rents of $275- $325 per week, achieving marginal ROCE >15% ▪ 10 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ 6 houses contracted/deposited so far in FY22 ▪ Local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Steady sales in FY22 with 4 settlements/contracts already ▪ Increased pricing on new houses ▪ 8 houses contracted/deposited in FY22 already ▪ New house pipeline increased by freeing up land – still 88 sites remaining ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into higher quality retirement community ▪ Upgrade of park facilities and infrastructure has commenced following completion of heritage study ▪ Potential to further differentiate site fees in accordance with location (beachside v. landside) ▪ Potential to sell our beachfront tourist cabins and lease the land sites to increase ROCE ▪ Infrastructure upgrades to improve efficiency and amenity ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land	Retirement Communities Park Communities Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 6% on FY20 with increased rate, increased number of sites leased and good cost control ▪ 11 new house sales were settled in FY21 at an average price of $338k ▪ NOI down 5% on FY20 (adjusted for land tax reversal in pcp) reflecting the moratorium on rent increases which was lifted on 28 March 2021 ▪ 16 houses were sold in FY21 (vs 9 in FY20), with 13 being sold in H2 as Perth residential vacancies have declined and residential rents and prices have increased • We have reduced our sales commission rate to encourage higher internally managed sales ▪ The repositioning and upgrade into a land lease retirement community has been well received by new customers ▪ NOI down 4% on FY20 primarily due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses well underway - 12 new house sales were settled in FY21 at an average price of $230k and land rent of $160 per week ▪ NOI up 18% on FY20 due to increase in rates, pivoting the traditional tourist cabins between short stay and longer stay leases sat optimal times, and because FY20 was impacted by the summer bushfires ▪ NOI down 2% on FY20 with short stay tourism and corporate custom being impacted by COVID and chaotic travel and gathering restrictions ▪ Trial of 4 new Xodboxes has been very successful – quickly leased for residential use at rents of $275- $325 per week, achieving marginal ROCE >15% ▪ 10 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ 6 houses contracted/deposited so far in FY22 ▪ Local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Steady sales in FY22 with 4 settlements/contracts already ▪ Increased pricing on new houses ▪ 8 houses contracted/deposited in FY22 already ▪ New house pipeline increased by freeing up land – still 88 sites remaining ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into higher quality retirement community ▪ Upgrade of park facilities and infrastructure has commenced following completion of heritage study ▪ Potential to further differentiate site fees in accordance with location (beachside v. landside) ▪ Potential to sell our beachfront tourist cabins and lease the land sites to increase ROCE ▪ Infrastructure upgrades to improve efficiency and amenity ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land	Retirement Communities Park Communities Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 6% on FY20 with increased rate, increased number of sites leased and good cost control ▪ 11 new house sales were settled in FY21 at an average price of $338k ▪ NOI down 5% on FY20 (adjusted for land tax reversal in pcp) reflecting the moratorium on rent increases which was lifted on 28 March 2021 ▪ 16 houses were sold in FY21 (vs 9 in FY20), with 13 being sold in H2 as Perth residential vacancies have declined and residential rents and prices have increased • We have reduced our sales commission rate to encourage higher internally managed sales ▪ The repositioning and upgrade into a land lease retirement community has been well received by new customers ▪ NOI down 4% on FY20 primarily due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses well underway - 12 new house sales were settled in FY21 at an average price of $230k and land rent of $160 per week ▪ NOI up 18% on FY20 due to increase in rates, pivoting the traditional tourist cabins between short stay and longer stay leases sat optimal times, and because FY20 was impacted by the summer bushfires ▪ NOI down 2% on FY20 with short stay tourism and corporate custom being impacted by COVID and chaotic travel and gathering restrictions ▪ Trial of 4 new Xodboxes has been very successful – quickly leased for residential use at rents of $275- $325 per week, achieving marginal ROCE >15% ▪ 10 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ 6 houses contracted/deposited so far in FY22 ▪ Local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Steady sales in FY22 with 4 settlements/contracts already ▪ Increased pricing on new houses ▪ 8 houses contracted/deposited in FY22 already ▪ New house pipeline increased by freeing up land – still 88 sites remaining ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into higher quality retirement community ▪ Upgrade of park facilities and infrastructure has commenced following completion of heritage study ▪ Potential to further differentiate site fees in accordance with location (beachside v. landside) ▪ Potential to sell our beachfront tourist cabins and lease the land sites to increase ROCE ▪ Infrastructure upgrades to improve efficiency and amenity ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land
	Retirement Communities			Park Communities
	Four Lanterns	Mandurah Gardens	Sweetwater Grove	Barlings Beach	Highway One
Highlights	▪ NOI up 6% on FY20 with increased rate, increased number of sites leased and good cost control ▪ 11 new house sales were settled in FY21 at an average price of $338k	▪ NOI down 5% on FY20 (adjusted for land tax reversal in pcp) reflecting the moratorium on rent increases which was lifted on 28 March 2021 ▪ 16 houses were sold in FY21 (vs 9 in FY20), with 13 being sold in H2 as Perth residential vacancies have declined and residential rents and prices have increased • We have reduced our sales commission rate to encourage higher internally managed sales	▪ The repositioning and upgrade into a land lease retirement community has been well received by new customers ▪ NOI down 4% on FY20 primarily due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses well underway - 12 new house sales were settled in FY21 at an average price of $230k and land rent of $160 per week	▪ NOI up 18% on FY20 due to increase in rates, pivoting the traditional tourist cabins between short stay and longer stay leases sat optimal times, and because FY20 was impacted by the summer bushfires	▪ NOI down 2% on FY20 with short stay tourism and corporate custom being impacted by COVID and chaotic travel and gathering restrictions ▪ Trial of 4 new Xodboxes has been very successful – quickly leased for residential use at rents of $275- $325 per week, achieving marginal ROCE >15%
Opportunities	▪ 10 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ 6 houses contracted/deposited so far in FY22 ▪ Local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time	▪ Steady sales in FY22 with 4 settlements/contracts already	▪ Increased pricing on new houses ▪ 8 houses contracted/deposited in FY22 already ▪ New house pipeline increased by freeing up land – still 88 sites remaining ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into higher quality retirement community	▪ Upgrade of park facilities and infrastructure has commenced following completion of heritage study ▪ Potential to further differentiate site fees in accordance with location (beachside v. landside) ▪ Potential to sell our beachfront tourist cabins and lease the land sites to increase ROCE	▪ Infrastructure upgrades to improve efficiency and amenity ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land

Operational Performance and Opportunities

				Darwin Freespirit AKV ▪ NOI up 332% on FY20 driven by the introduction of new entertainment facilities, longer stay leasing, improved domestic tourism trade when borders were open, and tight cost control ▪ New energy efficient hot water systems installed ▪ New electricity meters installed on cabins to pass through the cost to residential customers ▪ NOI down 52% on FY20 ▪ Aspen has assumed management of the property and will operate a short stay model post expiry of Woodside agreement in January 2021 ▪ Activity in Karratha Region has been robust (airline passenger arrivals have largely recovered from the COVID-lows) ▪ Cabin upgrade and refurbishment program progressing ▪ Occupancy is gradually increasing from a varied customer base including both tourism and workforce ▪ Continued recovery in short term accommodation revenues once COVID passes including new domestic routes (e.g. Adelaide, Canberra) ▪ More infrastructure upgrades to improve efficiency and amenity ▪ Potential for strong growth in business activity in Karratha, particularly if Woodside’s various projects are greenlighted ▪ Can switch back to long term lease agreement at any time if in demand and profitable ▪ Current book value is c.50% of replacement cost	Darwin Freespirit AKV ▪ NOI up 332% on FY20 driven by the introduction of new entertainment facilities, longer stay leasing, improved domestic tourism trade when borders were open, and tight cost control ▪ New energy efficient hot water systems installed ▪ New electricity meters installed on cabins to pass through the cost to residential customers ▪ NOI down 52% on FY20 ▪ Aspen has assumed management of the property and will operate a short stay model post expiry of Woodside agreement in January 2021 ▪ Activity in Karratha Region has been robust (airline passenger arrivals have largely recovered from the COVID-lows) ▪ Cabin upgrade and refurbishment program progressing ▪ Occupancy is gradually increasing from a varied customer base including both tourism and workforce ▪ Continued recovery in short term accommodation revenues once COVID passes including new domestic routes (e.g. Adelaide, Canberra) ▪ More infrastructure upgrades to improve efficiency and amenity ▪ Potential for strong growth in business activity in Karratha, particularly if Woodside’s various projects are greenlighted ▪ Can switch back to long term lease agreement at any time if in demand and profitable ▪ Current book value is c.50% of replacement cost
	Park Communities
	Adelaide CP	Koala Shores	Tween Waters	Darwin Freespirit	AKV
Highlights	▪ NOI down 34% on FY20 largely due to the impacts of COVID and chaotic travel and gathering restrictions ▪ Heritage church leased to commercial tenant and heritage house refurbished and leased	▪ NOI up 48% on FY20 due to increased occupancy, improved room and site inventory, higher rates and good cost controls ▪ 10 cabins refurbished	▪ NOI up 110% on FY20 reflecting material impact of bushfires in the summer of FY20, pivoting between short and longer stay leasing, and tight cost control ▪ However, NOI still being negatively impacted by lockdowns due to COVID, particularly given NSW-VIC border location	▪ NOI up 332% on FY20 driven by the introduction of new entertainment facilities, longer stay leasing, improved domestic tourism trade when borders were open, and tight cost control ▪ New energy efficient hot water systems installed ▪ New electricity meters installed on cabins to pass through the cost to residential customers	▪ NOI down 52% on FY20 ▪ Aspen has assumed management of the property and will operate a short stay model post expiry of Woodside agreement in January 2021 ▪ Activity in Karratha Region has been robust (airline passenger arrivals have largely recovered from the COVID-lows) ▪ Cabin upgrade and refurbishment program progressing ▪ Occupancy is gradually increasing from a varied customer base including both tourism and workforce
Opportunities	▪ Recovery in profits once COVID passes ▪ Zoned for higher density residential – currently assessing masterplan options for new apartments and townhouses, co-living and caravan park complex	▪ Continued recovery in short term accommodation revenues once COVID passes	▪ Recovery in profits once COVID passes ▪ Property is well located and approved for higher density with 10m height limit – potential apartment development in future	▪ Continued recovery in short term accommodation revenues once COVID passes including new domestic routes (e.g. Adelaide, Canberra) ▪ More infrastructure upgrades to improve efficiency and amenity	▪ Potential for strong growth in business activity in Karratha, particularly if Woodside’s various projects are greenlighted ▪ Can switch back to long term lease agreement at any time if in demand and profitable ▪ Current book value is c.50% of replacement cost

Key Development Projects & Pipeline

Attractive investment opportunities exist within the current portfolio to increase profits, build income streams, and create value…

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|||||
|---|---|---|---|
|Project Dwellings|
|Key Projects|FY22|FY23|FY24 and Beyond|
|/ Sites|[1]|
|Development –|new income producing sites / enhance quality of broader asset and tenancies / capital return and trading profit opportunities…|
|1. Four Lanterns|10|Develop and sell remaining houses|
|2. Sweetwater Grove|88|
|Develop and sell houses under LLC model on spare land / upgrade remainder of park dwellings as rental or LL product|
|3. Lewis Fields|54|Change current DA for undeveloped land –|develop and sell houses under a LLC model|
|4. Wodonga Gardens|121|
|Change current DA for undeveloped land –|develop and sell houses under a LLC model|
|Total|273|
|Redevelopment/Refurbishment –|achieve higher rents at existing sites / enhance quality of asset and tenancies / increase asset value…|
|Refurbish remaining 3 RV units when|
|5. Lindfield Apartments|3|available / review RV scheme|
|6. Burleigh Heads Townhouses|18|Complete civil works / refurbish houses|
|7. Cooks Hill Co-Living Community|50|Redevelop into 50 self-contained units|
|Total|71|
|Future Projects – Planning Stage|
|8. Mount Barker|97+|Change current DA – develop combination of residential land lots and LLC|
|9. Highway 1|50+|
|Expansion and reconfiguration - additional rental and land lease sites|
|10. Adelaide Caravan Park|100+|Redevelop into higher density mixed-use|
|Total|247+|
|Grand Total|591+|

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The number of dwellings/sites that are being developed/redeveloped in each project – some sites are subject to council approvals

Development & Trading Activity

Strong growth continues in the profitable development and trading of house and land inventory…

	House and Land Sales Summary	House and Land Sales Summary	House and Land Sales Summary	House and Land Sales Summary	House and Land Sales Summary	House and Land Sales Summary	Houses & Lots	Houses & Lots	Houses & Lots
	No. of Sales6			Average Sales Price (Inc. GST if applicable)			Built Houses	Developed Land Lots	Future Pipeline (Approved)
	FY21	FY20	FY19	FY21	FY20	FY19

Development and Sale of Houses
Four Lanterns	11 7 5			$338k $352k $357k			- 10 -
Sweetwater Grove	12 - -			$230k - -			- 17 71
Perth House Portfolio1	2 - -			$425k - -			82 - -
Mandurah Gardens Estate	1 - -			$144k - -			- - -
Lewis Fields2	- - -			- - -			- 4 50
Wodonga Gardens2	- - -			- - -			- 20 101
Mount Barker3	- - -			- - -			- - 97
Total	26 7 5			$287k $359k $357			86 47 319

Project Management4
Coorong Quays (CQ)	56 21 21			$148k $202k $118k			1 20 450+
CREST	29 11 0			$295k $285k -			52 44 2
Rockleigh	2 5 7			$111k $156k $165k			- - -
Total	87 37 28			$196k $220k $130k			53 64 452+

Resale of Homes5:Mandurah Gardens	15 9 4			$130k $160k $178k

Total	128 53 37			$207k $215k $166k			139 111 771+

We continue to selectively sell houses from the Perth residential house portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed

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Partially developed DMF Retirement Villages. We are aiming to gain approvals to development the remaining sites under a land lease model. Wodonga Gardens was contracted to purchase in July 2021 and settlement is expected in August 2021
We are aiming to change the current development approval from 97 residential land lots to about 50 residential land lots and 140 LLC sites
Aspen earns Project Management fees equal to 7% of total project costs on the Mill Hill Capital Funds’ projects
Aspen earns 5% commission for the sale of existing houses owned by customers (we usually share these fees with local real estate agents) 6. Sales represents settled sales

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Appendix B

Mandurah Gardens Estate, WA

Statutory Accounts Extracts

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Reconciliation of Statutory Profit to Operating Profit

		FY21	FY20
		$m	$m
Statutory Net	Profit after Tax	25.39	11.87
Adjustments:
Depreciation of PPE		0.73	0.52
Asset revaluations		(17.79)	(3.40)
Transaction costs and other		2.12	0.77
Insurance claim proceeds		(0.58)	-
Tax benefit		(0.87)	(3.12)
Operating Profit Net finance expense		9.00 1.34	6.64 1.39
Operating EBITDA		10.34	8.03
Net corporate overheads and other		4.50	4.43
Operating and Development Net Income		14.84	12.46

Asset revaluations

In H2 the Perth House portfolio, Highway 1, Adelaide Caravan Park, and Barlings Beach Holiday Park were revalued, following the revaluation of Aspen Karratha Village (AKV) in H1. All other properties were subject to Director reviews
Revaluation gains were primarily recorded on the Perth House portfolio ($7.0m), Highway 1 ($3.4m), Adelaide Caravan Park ($1.1m), Barlings Beach Holiday Park ($1.5m), Koala Shores Holiday Park ($1.1m) and Aspen Karratha Village ($4.5m)
No material revaluation adjustments were recorded in relation to the other properties

Depreciation / R&M / SIBC

Aspen spent $1.63m during the half maintaining its properties:
R&M totalled $0.79m - expensed at the property level, therefore already deducted from NOI
SIBC totalled $0.84m - initially capitalised to the balance sheet and written off

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Statutory Accounts Extract: Statement of Profit and Loss

^The above should be read in conjunction with the accompanying notes contained in the financial statements

Statutory Accounts Extract: Balance Sheet

^The above should be read in conjunction with the accompanying notes contained in the financial statements

Statutory Accounts Extract: Cash Flow Statement

^The above should be read in conjunction with the accompanying notes contained in the financial statements

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Statutory Accounts Extract: Segment Information

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Appendix C

Highway 1 Caravan and Tourist Park, Bolivar South, SA – Xodboxes

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Distribution & Tax History

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Distribution & Tax History


Period / Quarter Ended	Date Paid	Distribution Type		Aspen Group Ltd	Aspen Property Trust1		Total Amount Paid cents
				CPS	CPS	Tax Deferred / Non assessable income
Dec-17	28/02/2017 Ordinary
Jun-17	29/08/2017 Ordinary
Oct-17	20/10/2017 Special Capital
Dec-17	27/02/2018 Ordinary
Jun-18	30/08/2018 Ordinary
Dec-18	26/02/2019 Ordinary
Jun-19	30/08/2019 Ordinary
Dec-19	28/02/2020 Ordinary
Jun-20	28/08/2020 Ordinary
Dec-20	25/02/2021 Ordinary
Jun-21	20/08/2021 Ordinary

30 June 2021	Aspen Group Ltd		Aspen Property Trust
	Gross ($m)		Gross ($m)
Revenue tax losses
Capital tax losses

APT has elected to adopt the Attribution Managed Investment Trust regime from 1 July 2016

Disclaimer

This presentation has been prepared by Aspen Group Limited on behalf of Aspen Group Limited and Aspen Property Trust (“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.

This presentation contains forward looking information. Indications of, and guidance on, future earnings, distributions and financial position and performance are forward looking statements. Forward looking statements are based on Aspen’s current intentions, plans, expectations, assumptions, and beliefs about future events and are subject to risks, uncertainties and other factors which could cause actual results to differ materially. Aspen and its related bodies corporate and their respective directors, officers, employees, agents, and advisers do not give any assurance or guarantee that the occurrence of any forwardlooking information, view or intention referred to in this presentation will actually occur as contemplated. All references to dollar amounts are in Australian currency.

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AI assistant

ASPEN GROUP — Annual Report 2021

64404_rns_2021-08-18_48311ba4-8f5a-43d1-9760-38cee37de9f3.pdf

Contents

Aspen’s Business Model

Aspen Provides Quality Accommodation to Australian Households on Competitive Terms

Portfolio Composition

FY21 Performance (compared to FY20) - Capital

Aspen has continued to grow its business, portfolio and value while managing risks...

FY21 Performance (compared to FY20) – Earnings & Distributions

Aspen has continued to grow its business, portfolio and profits while managing risks...

Portfolio Transformation

Material Profit Drivers #1

Actively pivoting between short stay and long stay leases at our Park Communities during COVID...

Material Profit Drivers #2

Growth in Development and Trading activity...

Material Profit Drivers #3

Financial Performance – FY21

Balance Sheet and Capital Management

Outlook

Aspen is well positioned to continue to grow profits and the book value of equity over the medium term and we are aiming for growth of at least 10% per annum...

▪ Residential:

▪ Park Communities:

▪ Development & Trading:

▪ Retirement Communities:

▪ Acquisitions:

Aspen’s Credentials

Current Portfolio Summary

Increasing Property Value – providing our customers attractive lifestyles options at competitive prices and rents

Aspen’s Competitive Prices and Rents

Aspen’s Portfolio Composition & Growth

Portfolio Composition[1,2] and Acquisition History

FY22 YTD Acquisitions – Attractively Priced and Building Significant Scale

H2 FY21 Acquisitions – Attractively Priced

Property NOI – FY21 vs. FY20

Development & Trading Activity

Funds Managed by Aspen – FY21

Coorong Quays

CREST @ Woodside

Rockleigh

[5] ESG

Environmental, Social and Corporate Governance Program

Social

Environmental

Environmental, Social and Corporate Governance Program

Governance

Appendix A

Aspen’s portfolio is geographically diversified…

Aspen Group: Portfolio Summary

Aspen Group: Portfolio Summary

Operational Performance and Opportunities

Operational Performance and Opportunities

Operational Performance and Opportunities

Key Development Projects & Pipeline

Attractive investment opportunities exist within the current portfolio to increase profits, build income streams, and create value…

Development & Trading Activity

Strong growth continues in the profitable development and trading of house and land inventory…

Appendix B

Reconciliation of Statutory Profit to Operating Profit

Asset revaluations

Depreciation / R&M / SIBC

Statutory Accounts Extract: Statement of Profit and Loss

Statutory Accounts Extract: Balance Sheet

Statutory Accounts Extract: Cash Flow Statement

Statutory Accounts Extract: Segment Information

Appendix C

Distribution & Tax History

Disclaimer

More from ASPEN GROUP

ASPEN GROUP Annual Report 2021