ASPEN GROUP — Interim / Quarterly Report 2021

Feb 24, 2021

Aspen Group Financial Results – First Half FY21

February 2021

Newcastle, NSW

==> picture [196 x 85] intentionally omitted <==

Residents at Four Lanterns Estate, NSW

Contents

1 Financial Results – 1H FY21

2

3

4

5

6

Operations & Development

Portfolio

Managed Funds

ESG

Statutory Accounts Extract

7 Appendices

Sweet Water Grove – marketing campaign, NSW

==> picture [172 x 12] intentionally omitted <==

----- Start of picture text -----

Barlings Beach Holiday Park, NSW
----- End of picture text -----

Koala Shores, Port Stephens, NSW - recently refurbished cabin

==> picture [468 x 264] intentionally omitted <==

Financial Results 1H FY21[1]

==> picture [103 x 45] intentionally omitted <==

3

1.1

Aspen Group Overview

• Aspen is a leading provider of quality accommodation on competitive terms in the residential, retirement and short stay sectors

• Our customers range from single to large family households of all ages. Our addressable market is worth over $1 trillion - about 6.5 million households (70% of total) are either renting or servicing a mortgage of which 1.5 million are considered “stressed”, paying more than 30% of income on housing costs

• Aspen’s fully integrated platform encompassing operations, asset management, development and capital management enables us to provide a broad spectrum of products and services to our customers under different regulatory regimes and ownership schemes - examples:

Current Lease Offering (by number of dwellings and land sites)

==> picture [250 x 170] intentionally omitted <==

----- Start of picture text -----

Short Stay
c. 40%
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

----- Start of picture text -----

Long Lease
c. 60%
----- End of picture text -----

• Rentals of dwellings

• Shared Equity where Aspen and the customer own different components of the property - eg. Aspen leases land sites to customers who own their dwellings in land lease communities and mixed-use parks

o Sales of dwellings and land

▪ We provide one, some or the entire range of our

accommodation products and services at each of our properties. Our offering is flexible and can be pivoted between products. This enables Aspen to maximise the profitability and value of properties and reduce risk by optimising the customer mix based on demand, length of stay, service offering, relative pricing and expenses, regulation, capital costs and other factors

Operating Revenue Sources (FY20)

==> picture [344 x 184] intentionally omitted <==

----- Start of picture text -----

Other
8%
Leasing Land
28%
Leasing
Dwellings
64%
----- End of picture text -----

4

Aspen’s Competitive Prices and Rents

1.2

==> picture [786 x 497] intentionally omitted <==

----- Start of picture text -----

As at 31 December 2020
Portfolio Value $186m
Number of Dwellings/Sites 2,361
Average Value per Dwelling/Site $79k
WACR 8.3%
Land Lease
Houses Apartments Mixed Use Parks Co-Living
Communities
Average Book Value per
$254k $284k $68k $78k $69k
Dwelling/Site
Average Weekly Rent
$346 $229 [1] $268 [2] $172 $158
(Medium/Long Term)
----- End of picture text -----

1. Includes residents under Retirement Village leases at below-market rent

2. Based on short stay cabin conversions into medium-long term rentals across Mixed Use / Tourist Parks

5

1.3

Results Summary - 1H FY21

Aspen’s affordable accommodation strategy is continuing to deliver strong growth in earnings and distributions…

STRATEGY

FINANCIAL (change from pcp)

==> picture [54 x 57] intentionally omitted <==

• Key strategic priority is positioning for leadership and scale in the provision of truly affordable accommodation

• We are mitigating risks through diversification by property type, customer type, location and regulatory regime, and having a measured exposure to development

• Balance sheet capacity for growth – many profitable opportunities within the portfolio and potential for acquisitions at attractive prices in Australia’s $7 trillion residential markets

==> picture [52 x 53] intentionally omitted <==

• Operating EPS 4.55 cents – up 20%

• DPS 3.10 cents – up 13%

• NAV $1.20 – up 5%

• Portfolio value $186 million – up 16%

• Gearing 23% – reduced from 29%

• Revenue $17.8 million – up 8%

• Operating EBITDA $6.0 million – up 37%

• Operating Profit $5.3 million – up 45%

OPERATIONS

DEVELOPMENT (owned and within funds)

==> picture [67 x 38] intentionally omitted <==

• Dwelling and land sites 2,361

• Longer-term leases generating stable cash flows

• Rental revenue down 2% to $14.9 million, with short stay business impacted by COVID-19

• Material cost reduction (including JobKeeper for 3 months)

• Net operating income $7.05m – up 11%

• Margin expansion – from 42% to 47%

==> picture [64 x 54] intentionally omitted <==

• Aspen’s affordable offering – average prices:

• House & Land $337k

• • House only $296k
• • Land $145k

• 100 home and land sales in the half – up 89% on record FY20 full year result

• 11 at Aspen’s Four Lanterns and Sweetwater Grove

• 86 at CQ and CREST, from which Aspen earns project management fees

• Strong development pipeline of over 618 sites across the platform

6

1.4

Financial Performance – 1H FY21

Key Metrics	1H FY21 $m	1H FY20 $m	Change	FY20	▪Rental and ancillary services revenue– decline of 2% mainly attributable to the	▪Rental and ancillary services revenue– decline of 2% mainly attributable to the
					COVID-19 event, in particular border
Statutory Profit	9.54	3.18	200%	11.87	restrictions impacting tourism trade at
					Adelaide Caravan Park, Tween Waters,
Total Revenue	17.77	16.43	8%	30.38	Highway 1 and Darwin FSR. This was
Operating & Development Net Income	8.02	6.78	18%	12.46	largely offset by the strong performance at Koala Shores, revenue from Darwin FSR’s
Margin	45%	41%		41%	new entertainment facilities, and
- Rental & ancillary services revenue	14.88	15.13	(2%)	28.13	acquisitions including the Perth portfolio, Cooks Hill, and Lindfield apartments
- Direct property expenses	(7.83)	(8.77)		(16.35)	▪Net Operating Income– increase of 11%
Net Operating Income	7.05	6.36	11%	11.78	with margin improving to 47%, driven by
Operating Margin	47%	42%		42%	good cost controls across the business
- Development & trading revenue	2.89	1.30	122%	2.25	(including JobKeeper for 3 months) and higher margins from recently acquired
- Cost of sales	(1.92)	(0.89)		(1.57)	residential properties
Net Development Income	0.97	0.41	135%	0.68	▪Net Development incomeis from the sale
Development Margin Net Corporate overheads	34% (2.05)	32% (2.42)	(15%)	30% (4.43)	of 11 houses at Four Lanterns and Sweetwater Grove at an average margin of $88k (vs. 4 in 1H FY20 at average margin
Operating EBITDA	5.96	4.36	37%	8.03	of $103k)
Net finance expense	(0.67)	(0.71)	(5%)	(1.39)	▪Net corporate overheadsdecreased 15%
Tax	-	-	-	-	reflecting lower travel and external consultant costs. Aspen earned $0.20m in
Operating Profit1	5.29	3.66	45%	6.64	project management fees from the Mill Hill
Securities (weighted)	116.36	96.32	21%	97.59	Capital funds
Operating EPS (cents)	4.55	3.80	20%	6.80	▪Net interest expensedecreased 5% due
DPS (cents)	3.10	2.75	13%	6.00	to lower interest rates

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

7

1.5

Reconciliation of Statutory Profit to Operating Profit

	1H FY21	1H FY20
	$m	$m
Statutory Net Profit after Tax	9.54	3.18
Adjustments:
Depreciation of PPE	0.35	0.25
Asset revaluations	(4.83)	0.07
Transaction costs and other	0.24	0.16
Operating Profit	5.29	3.66
Net finance expense	0.67	0.71
Operating EBITDA	5.96	4.36
Net corporate overheads and other	2.05	2.42
Operating and Development Net Income	8.02	6.78

Asset revaluations

• Aspen Karratha Village (AKV) was externally revalued during the period and all other properties were subject to Director reviews

• A revaluation gain of $5m was recorded at AKV. AKV’s net operating income (NOI) was $3.9 million in FY20 while the Woodside agreement was in place. The property is now being operated under a short stay model and the external valuation assumes 17% cap rate and stabilised NOI of $2.9m based on 52% occupancy and $134 average room rate after a period of building new short stay patronage over the first 12 months

• No material revaluation adjustment was recorded in relation to the other properties

Depreciation / R&M / SIBC

• Aspen spent $0.71m during the half maintaining its properties:

• R&M totalled $0.35m - expensed at the property level, therefore already deducted from NOI

• SIBC totalled $0.36m - initially capitalised to the balance sheet

==> picture [125 x 56] intentionally omitted <==

8

1.6

Balance Sheet and Capital Management

Key Metrics	Dec 2020 $m	Dec 2019 $m	Change	Jun 2020 $m
Property Assets	185.7	159.7	16%	167.0
Total Assets	205.4	173.3	19%	190.7
- Cash	7.9	4.0		8.2
- Gross Debt	53.6	52.5		42.5
Net Debt	45.7	48.5	(6%)	34.3
Gearing1	23.1%	28.7%		18.8%
Loan to Value Ratio2	25.0%	31.0%		20.8%
Interest Cover Ratio3	6.9x	6.2x		5.5x
Net Asset Value (NAV)	140.2	109.7		134.0
Securities at period end	116.4m	96.3m		116.3m
NAV per Security	$1.20	$1.14	5%	$1.15

• Property Assets increased 16% over the year - driven mainly by the acquisition of Cooks Hill coliving community, Mount Barker land, and the Burleigh Heads build to rent community, and revaluation gains

• Drawn debt of $53.6m, gearing of 23% and LTV of 25% - comfortably below covenant limit of 50%

• ▪ Debt facility limit is $71m of which $17.4m was undrawn at balance date

• Interest Cover Ratio (ICR) of 6.9x – comfortably above facility covenant limit of 2.0x

• NAV up 5% over the year

==> picture [282 x 143] intentionally omitted <==

----- Start of picture text -----

NAV ($) per security
1.15 1.20
1.13
FY19 FY20 1H FY21
----- End of picture text -----

1. Net Debt divided by Total Assets less Cash. 2. Net Debt divided by Property Assets as defined in the debt facility - covenant is 50%. 3. ICR as defined in the debt facility - covenant is 2.0x

9

1.7

FY21 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. However, business conditions and profitability may remain volatile over the short term:

• Rents are expected to continue to increase steadily across our residential and land lease properties, particularly for our Perth portfolio once WA’s COVID-19 related moratorium on rent increases ends on 28 March 2021

• The outlook for our short stay business is clouded by the COVID-19 event. International travel is likely to remain off limits for at least the next 12 months which should benefit domestic holiday parks, but only if travel and gathering restrictions become less chaotic

• We have pivoted to a short stay operating model at AKV after the expiry of Woodside’s long-term agreement in late January 2021 which has increased volatility and will result in reduced income in the short term as we build our customer base – we expect to ultimately make higher profits

• The development and trading component of our business is positioned for strong growth in the years ahead - sales of new houses at our land lease communities have increased materially and our pipeline is larger than ever. Good momentum has continued into 2H – we have already secured 12 sales contracts/deposits at our land lease communities which is above total settlements in 1H

• If Perth residential rents and prices continue to increase, opportunities may arise to sell individual houses and recycle the capital into other areas of our portfolio where we can offer cheaper rents to our customer base and earn higher returns

==> picture [382 x 477] intentionally omitted <==

10

FY21 Outlook

1.8

Demand for Aspen’s accommodation is increasing

▪ Population is growing in our markets

• Our properties are typically in “lifestyle” locations close to jobs

▪ New technology and shifts in consumer preferences are enhancing, not disrupting, demand:

• Our new dwellings are efficiently designed and well insulated which reduces their environmental footprint, energy use and operating costs

• Rapidly improving communication networks and internet services have enabled our customers to spend more time at home, working and living

• Our relatively low rents have become more attractive in the weaker economic environment and they are well supported by government subsidies:

• We do not provide leasing incentives to our customers, which makes rents more affordable (not artificially inflated), reduces credit risk and improves income growth potential

▪ Our relatively low prices have also become more attractive:

• Very low interest rates and rising house prices are increasing the need and incentive for retirees to free up capital in their houses and move into our communities

We continue to seek new opportunities to grow the business and portfolio on a profitable basis in the residential, retirement and short stay sectors through acquisitions and development:

• We have plenty of opportunities to recycle capital within the portfolio to grow NAV and EPS

==> picture [103 x 45] intentionally omitted <==

• Some segments of Australia’s accommodation industry are stressed, and this is presenting acquisition opportunities for Aspen

11

1.9

Capital Recycling to Grow NAV and EPS

From low yielding properties into other areas of the portfolio where we can offer lower rents to our customer base while making higher investment returns...

New Development

• Net income yield on cost >10% from installing new dwellings at existing properties and leasing

• Development profits: >30% margin when selling new dwellings under a land lease model

==> picture [129 x 74] intentionally omitted <==

==> picture [130 x 72] intentionally omitted <==

==> picture [133 x 83] intentionally omitted <==

Net Yield at ROCE Market Price >10% <3% ROCE >5%

Redevelopment / refurbishment

• Net income yield on total cost >5% from refurbishing / repurposing buildings and leasing

• Capital growth: >30% valuation uplift on completion, above CPI over the long run and also cyclical

Fully Developed Residential

• Net income yield c.3% - price typically set by owner-occupiers who don’t pay land tax and are usually highly geared at low interest rates

• Capital growth: above CPI over the long run and also cyclical

==> picture [119 x 85] intentionally omitted <==

==> picture [143 x 85] intentionally omitted <==

==> picture [121 x 84] intentionally omitted <==

==> picture [122 x 84] intentionally omitted <==

12

==> picture [469 x 264] intentionally omitted <==

----- Start of picture text -----

Treatts Rd – Lindfield Apartments
----- End of picture text -----

Sweetwater Grove Estate, Tomago, NSW

2 Operations and Development & Trading

==> picture [103 x 45] intentionally omitted <==

13

2.1

Property NOI – 1H FY21 vs. 1H FY20

==> picture [786 x 497] intentionally omitted <==

----- Start of picture text -----

Residential Land Lease Mixed-Use Short Stay Workforce
Perth Four Barlings Darwin AKV
Residential Lanterns Beach FSR
+6%
New +14% +7% 42%
Lindfield Mandurah Highway Koala
One Shores
Apartments Gardens [1]
New +7% (8%) 48%
Cooks Hill Adelaide
Sweetwater
Co-Living CP
Grove
New (56%)
(4%)
Burleigh Tween
Heads
Waters
New (7%)
----- End of picture text -----

1. Excludes the impact of historic land tax refunds recorded in 1H FY20

14

2.2

Operational Performance and Opportunities

==> picture [41 x 55] intentionally omitted <==

• Residential

• Perth Portfolio Lindfield Apartments Cooks Hill Co-Living

• ▪ Settled in November 2019 ▪ Settled in August 2019 ▪ Settled in July 2020 for average price of $68k[1] per room

• Burleigh Heads

• ▪ Settled in December 2020 for average price of $175k[1] per house

• Modern family dwellings acquired at ▪ Treatts Road refurbishment an average price $238k[1] program almost complete with only 3 units with RV tenants remaining

• [[2]]

• Plans submitted to Council for redevelopment into a co-living community with 50 self-contained studio apartments

• Median price of 3 bedroom houses in Burleigh Heads up 4% over past 12 months to $850k (Domain.com.au)

• Portfolio is fully leased[[2]] , quality of tenancies has improved and arrears ▪ Both Treatts Road and Pacific have declined Highway properties are fully leased[2] and market rents have been

• ▪ Perth metro vacancy rate <1% recovering from cyclical lows during

• ▪ Average rents remain around $350 the depths of COVID per week despite rapidly increasing market rents, due to a COVIDrelated moratorium on rent increases for sitting tenants until 28 March 2021

• ▪ Perth house prices are increasing ▪ We may sell individual houses as ▪ Review of Retirement Village there are attractive opportunities to scheme status at Treatts Road recycle the capital into other parts ▪ Pacific Highway property is zoned of our portfolio at higher returns, higher density residential

• whilst offering lower rents to our customer base

• Median price of 1 bedroom units in Newcastle up 8% over past 12 months to $510k (Domain.com.au)

• Gain DA, complete redevelopment ▪ Fix outstanding issues with works for total cost of c.$4-5m ($80infrastructure and refurbish houses 100k per unit) at total cost of c.$4m ($222k per house)

• Lease units post refurbishment to achieve ROCE >5%

• Lease houses post refurbishment to achieve ROCE >5%

==> picture [166 x 111] intentionally omitted <==

==> picture [166 x 111] intentionally omitted <==

1. Pre-transaction costs

15

1. Excluding dwellings which are under refurbishment

2.3

Operational Performance and Opportunities

		Land Lease Mixed-Use Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 14% on 1H FY20 with increased rate, increased number of sites leased and good cost control ▪ 7 new house sales were settled in 1H at an average price of $321k (inc. GST) ▪ NOI up 7% on 1H FY20 (adjusted for land tax reversal in pcp) with good cost control, but rents have not increased due to moratorium on rent increases ▪ Enquiries and sales of existing houses were slow in 1H, but momentum has picked up in 2H as Perth residential vacancies have declined and residential rents and prices have increased ▪ NOI down 4% on 1H FY20 due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses underway - main civil works and 13 houses completed, further 16 houses to commence shortly ▪ 4 new house sales were settled in 1H at an average price of $237k (inc. GST) and land rent of $160 per week ▪ NOI up 7% on 1H FY20 due to increase in rates and good cost control ▪ NOI down 8% on 1H 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% ▪ 3 houses contracted/deposited so far in 2H, of which 1 has settled – first stage sold out ▪ There are 13 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ Property approved for higher density residential and local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Rent will increase from 28 March 2021 post end of moratorium ▪ Increase rate of sales – already 5 settlements/contracts in 2H ▪ 9 houses contracted/deposited so far in 2H, of which 5 have settled ▪ New house pipeline increased by 21 to 100 by freeing up land ▪ Increased pricing on new houses ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into LL / rental community ▪ Upgrade of park facilities and infrastructure to commence shortly post 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 ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land ▪ Infrastructure upgrades to improve efficiency and amenity	Land Lease Mixed-Use Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 14% on 1H FY20 with increased rate, increased number of sites leased and good cost control ▪ 7 new house sales were settled in 1H at an average price of $321k (inc. GST) ▪ NOI up 7% on 1H FY20 (adjusted for land tax reversal in pcp) with good cost control, but rents have not increased due to moratorium on rent increases ▪ Enquiries and sales of existing houses were slow in 1H, but momentum has picked up in 2H as Perth residential vacancies have declined and residential rents and prices have increased ▪ NOI down 4% on 1H FY20 due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses underway - main civil works and 13 houses completed, further 16 houses to commence shortly ▪ 4 new house sales were settled in 1H at an average price of $237k (inc. GST) and land rent of $160 per week ▪ NOI up 7% on 1H FY20 due to increase in rates and good cost control ▪ NOI down 8% on 1H 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% ▪ 3 houses contracted/deposited so far in 2H, of which 1 has settled – first stage sold out ▪ There are 13 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ Property approved for higher density residential and local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Rent will increase from 28 March 2021 post end of moratorium ▪ Increase rate of sales – already 5 settlements/contracts in 2H ▪ 9 houses contracted/deposited so far in 2H, of which 5 have settled ▪ New house pipeline increased by 21 to 100 by freeing up land ▪ Increased pricing on new houses ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into LL / rental community ▪ Upgrade of park facilities and infrastructure to commence shortly post 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 ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land ▪ Infrastructure upgrades to improve efficiency and amenity	Land Lease Mixed-Use Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 14% on 1H FY20 with increased rate, increased number of sites leased and good cost control ▪ 7 new house sales were settled in 1H at an average price of $321k (inc. GST) ▪ NOI up 7% on 1H FY20 (adjusted for land tax reversal in pcp) with good cost control, but rents have not increased due to moratorium on rent increases ▪ Enquiries and sales of existing houses were slow in 1H, but momentum has picked up in 2H as Perth residential vacancies have declined and residential rents and prices have increased ▪ NOI down 4% on 1H FY20 due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses underway - main civil works and 13 houses completed, further 16 houses to commence shortly ▪ 4 new house sales were settled in 1H at an average price of $237k (inc. GST) and land rent of $160 per week ▪ NOI up 7% on 1H FY20 due to increase in rates and good cost control ▪ NOI down 8% on 1H 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% ▪ 3 houses contracted/deposited so far in 2H, of which 1 has settled – first stage sold out ▪ There are 13 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ Property approved for higher density residential and local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Rent will increase from 28 March 2021 post end of moratorium ▪ Increase rate of sales – already 5 settlements/contracts in 2H ▪ 9 houses contracted/deposited so far in 2H, of which 5 have settled ▪ New house pipeline increased by 21 to 100 by freeing up land ▪ Increased pricing on new houses ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into LL / rental community ▪ Upgrade of park facilities and infrastructure to commence shortly post 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 ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land ▪ Infrastructure upgrades to improve efficiency and amenity	Land Lease Mixed-Use Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 14% on 1H FY20 with increased rate, increased number of sites leased and good cost control ▪ 7 new house sales were settled in 1H at an average price of $321k (inc. GST) ▪ NOI up 7% on 1H FY20 (adjusted for land tax reversal in pcp) with good cost control, but rents have not increased due to moratorium on rent increases ▪ Enquiries and sales of existing houses were slow in 1H, but momentum has picked up in 2H as Perth residential vacancies have declined and residential rents and prices have increased ▪ NOI down 4% on 1H FY20 due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses underway - main civil works and 13 houses completed, further 16 houses to commence shortly ▪ 4 new house sales were settled in 1H at an average price of $237k (inc. GST) and land rent of $160 per week ▪ NOI up 7% on 1H FY20 due to increase in rates and good cost control ▪ NOI down 8% on 1H 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% ▪ 3 houses contracted/deposited so far in 2H, of which 1 has settled – first stage sold out ▪ There are 13 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ Property approved for higher density residential and local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Rent will increase from 28 March 2021 post end of moratorium ▪ Increase rate of sales – already 5 settlements/contracts in 2H ▪ 9 houses contracted/deposited so far in 2H, of which 5 have settled ▪ New house pipeline increased by 21 to 100 by freeing up land ▪ Increased pricing on new houses ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into LL / rental community ▪ Upgrade of park facilities and infrastructure to commence shortly post 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 ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land ▪ Infrastructure upgrades to improve efficiency and amenity	Land Lease Mixed-Use Four Lanterns Mandurah Gardens Sweetwater Grove Barlings Beach Highway One ▪ NOI up 14% on 1H FY20 with increased rate, increased number of sites leased and good cost control ▪ 7 new house sales were settled in 1H at an average price of $321k (inc. GST) ▪ NOI up 7% on 1H FY20 (adjusted for land tax reversal in pcp) with good cost control, but rents have not increased due to moratorium on rent increases ▪ Enquiries and sales of existing houses were slow in 1H, but momentum has picked up in 2H as Perth residential vacancies have declined and residential rents and prices have increased ▪ NOI down 4% on 1H FY20 due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses underway - main civil works and 13 houses completed, further 16 houses to commence shortly ▪ 4 new house sales were settled in 1H at an average price of $237k (inc. GST) and land rent of $160 per week ▪ NOI up 7% on 1H FY20 due to increase in rates and good cost control ▪ NOI down 8% on 1H 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% ▪ 3 houses contracted/deposited so far in 2H, of which 1 has settled – first stage sold out ▪ There are 13 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ Property approved for higher density residential and local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time ▪ Rent will increase from 28 March 2021 post end of moratorium ▪ Increase rate of sales – already 5 settlements/contracts in 2H ▪ 9 houses contracted/deposited so far in 2H, of which 5 have settled ▪ New house pipeline increased by 21 to 100 by freeing up land ▪ Increased pricing on new houses ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into LL / rental community ▪ Upgrade of park facilities and infrastructure to commence shortly post 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 ▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land ▪ Infrastructure upgrades to improve efficiency and amenity
		Land Lease			Mixed-Use
		Four Lanterns	Mandurah Gardens	Sweetwater Grove	Barlings Beach	Highway One
	Highlights	▪ NOI up 14% on 1H FY20 with increased rate, increased number of sites leased and good cost control ▪ 7 new house sales were settled in 1H at an average price of $321k (inc. GST)	▪ NOI up 7% on 1H FY20 (adjusted for land tax reversal in pcp) with good cost control, but rents have not increased due to moratorium on rent increases ▪ Enquiries and sales of existing houses were slow in 1H, but momentum has picked up in 2H as Perth residential vacancies have declined and residential rents and prices have increased	▪ NOI down 4% on 1H FY20 due to development works which has reduced the number of leased dwellings/sites ▪ Stage 1 of community upgrade and addition of 29 new houses underway - main civil works and 13 houses completed, further 16 houses to commence shortly ▪ 4 new house sales were settled in 1H at an average price of $237k (inc. GST) and land rent of $160 per week	▪ NOI up 7% on 1H FY20 due to increase in rates and good cost control	▪ NOI down 8% on 1H 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	▪ 3 houses contracted/deposited so far in 2H, of which 1 has settled – first stage sold out ▪ There are 13 developed land sites available for the final stage and we have commenced selling new houses off the plan ▪ Property approved for higher density residential and local vacant land prices are higher than book value ▪ Improvement / churn of existing dwellings over time	▪ Rent will increase from 28 March 2021 post end of moratorium ▪ Increase rate of sales – already 5 settlements/contracts in 2H	▪ 9 houses contracted/deposited so far in 2H, of which 5 have settled ▪ New house pipeline increased by 21 to 100 by freeing up land ▪ Increased pricing on new houses ▪ Improvement / churn of existing dwellings over time ▪ Expect cap rate compression from 8.50% as property is converted into LL / rental community	▪ Upgrade of park facilities and infrastructure to commence shortly post 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	▪ Expanding affordable long term cabin rental and land lease product on under utilised land ▪ Opportunities to acquire adjoining land ▪ Infrastructure upgrades to improve efficiency and amenity

16

2.4

Operational Performance and Opportunities

					Workforce Darwin Freespirit AKV ▪ NOI up 42% on 1H FY20 with COVID materially impacting accommodation revenue, but more than offset by the introduction of new entertainment facilities, tight cost controls and longer stay leasing ▪ New energy efficient hot water systems installed ▪ New electricity meters installed on cabins to pass through the cost to residential customers ▪ NOI up 6% on 1H 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) ▪ Recovery in short term accommodation revenues once COVID passes ▪ More infrastructure upgrades to improve efficiency and amenity ▪ Potential for strong growth in business activity in Karratha, particularly if Woodside’s various gas projects and Perdaman’s Urea Plant are greenlighted ▪ Can switch back to long term lease agreement at any time if in demand ▪ Current book value is c.50% of replacement cost	Workforce Darwin Freespirit AKV ▪ NOI up 42% on 1H FY20 with COVID materially impacting accommodation revenue, but more than offset by the introduction of new entertainment facilities, tight cost controls and longer stay leasing ▪ New energy efficient hot water systems installed ▪ New electricity meters installed on cabins to pass through the cost to residential customers ▪ NOI up 6% on 1H 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) ▪ Recovery in short term accommodation revenues once COVID passes ▪ More infrastructure upgrades to improve efficiency and amenity ▪ Potential for strong growth in business activity in Karratha, particularly if Woodside’s various gas projects and Perdaman’s Urea Plant are greenlighted ▪ Can switch back to long term lease agreement at any time if in demand ▪ Current book value is c.50% of replacement cost
		Short Stay				Workforce
		Adelaide CP	Koala Shores	Tween Waters	Darwin Freespirit	AKV
	Highlights	▪ NOI down 56% on 1H 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 1H FY20 due to increased occupancy, improved room and site inventory, higher rates and good cost controls ▪ 10 cabins refurbished	▪ NOI down 7% on 1H FY20 with COVID and chaotic travel and gathering restrictions materially impacting revenue, offset largely by tight cost controls and longer stay leasing (peak January business was also materially impacted by the VIC border closure)	▪ NOI up 42% on 1H FY20 with COVID materially impacting accommodation revenue, but more than offset by the introduction of new entertainment facilities, tight cost controls and longer stay leasing ▪ New energy efficient hot water systems installed ▪ New electricity meters installed on cabins to pass through the cost to residential customers	▪ NOI up 6% on 1H 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)
	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	▪ Planning in place for upgrade of common facilities including pool and conference room	▪ Recovery in profits once COVID passes ▪ Property is well located and approved for higher density with 10m height limit – potential apartment development in future	▪ Recovery in short term accommodation revenues once COVID passes ▪ More infrastructure upgrades to improve efficiency and amenity	▪ Potential for strong growth in business activity in Karratha, particularly if Woodside’s various gas projects and Perdaman’s Urea Plant are greenlighted ▪ Can switch back to long term lease agreement at any time if in demand ▪ Current book value is c.50% of replacement cost

17

2.5

Development & Trading Activity

Development & Trading Activity

Solid momentum in development and trading activity has continued in FY21:

==> picture [725 x 440] intentionally omitted <==

----- Start of picture text -----

Sales ($m) 1H FY21 performance exceeded the full FY20 result No. of Sales
Development and sales of houses under a land
$25 120
lease model:
- 11 house settlements in 1H FY21 v. 7 for all of $20 100
80
FY20
$15
60
- Four Lanterns: profit of $719k from the sale of 7 $ sales up 46% HALF
houses ($421k profit in 1H FY20) $10 FULL # sales up 64% YEAR 40
YEAR
- Sweetwater Grove sales commenced in FY21 $5 FULL 20
YEAR
generating profit of $254k from the sale of 4 $- 0
houses FY2019 FY2020 1H FY21
- The average sales margin at Four Lanterns was Aspen Owned Managed Funds No. of Sales
(settled) (contracted)
$103k and $63k at Sweetwater Grove
Development & Trading Gross Profit
Project management of MHC Funds’ residential and
retirement developments: Gross Profit ($m)
- Fee income of $200k (in line with 1H FY20) $1.4
$1.2
$1.0
Resale of homes in our communities where Aspen
$0.8
acts as agent:
$0.6 HALF
- YEAR
Fee income of $19k from the resale of 3 homes at $0.4 FULL FULL
Mandurah Gardens Estate ($14k in 1H FY20) YEAR YEAR
$0.2
$-
FY19 FY20 1H FY21
Trading profits from sale of properties:
- None in the half
Development & Trading Profit Gross Fee Income
----- End of picture text -----

• Development and sales of houses under a land lease model:

• Project management of MHC Funds’ residential and retirement developments:

• Resale of homes in our communities where Aspen acts as agent:

▪ Trading profits from sale of properties:

18

2.6

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 & Lot Inventory – 31 Dec 2020	House & Lot Inventory – 31 Dec 2020	House & Lot Inventory – 31 Dec 2020
	No. of Sales4			Average Sales Price		Built Houses	Developed Land Lots	Future Pipeline (Approved)
	1H FY21	1H FY20	Variance	1H FY21	1H FY20
Development and Sale of Houses1
Four Lanterns	7 4 75% $321k $359k 1 13 -
Sweetwater Grove	4 0 N/A $237k N/A 9 16 71
Mount Barker	- - - - - - - 97
Total	11 4 175% $291k $359k 10 29 168
Project Management2
Coorong Quays (CQ)	61 12 408% $148k $167k 1 32 450+
CREST	23 6 283% $277k5 $311k 57 49 0
Rockleigh	2 5 (60%) $115k $156k - - -
Total	86 23 274% $182k $202k 58 81 450+
Resale of Homes3:Mandurah Gardens	3 2 50% $130k $160k
Total	100 29 245% $192k $221k 68 110 618+

1. At our Four Lanterns and Sweetwater Grove LLCs we develop and sell houses only (and lease the underlying land sites); at Mount Barker we are aiming to change the current development approval from 97 residential land lots to about 50 residential land lots and 140 LLC sites

2. Aspen earns Project Management fees equal to 7% of total project costs on the Mill Hill Capital Funds’ projects

3. Aspen earns 10% commission for the sale of existing houses owned by customers (we usually share these fees with local real estate agents)

4. Sales represents settled sales for Aspen-owned properties, and both settled and contracted/deposited sales for the managed funds

5. Lower average price reflects the change in sales mix to more land lots vs house and land sales compared to the prior corresponding period

==> picture [103 x 45] intentionally omitted <==

19

2.7

Key Development Projects & Pipeline

Attractive investment opportunities exist within the current portfolio to increase profits and value…

		Time Frame	Time Frame	Time Frame	Time Frame
Key Projects	Project Dwellings / Sites1	FY21	FY22	FY23	FY24 and Beyond
Development –new income producing sites / enhance quality of broader asset and tenancies / capital return and trading profit opportunities…
1. Four Lanterns 14 Develop and sell houses under land lease model
2. Sweetwater Grove 96 Develop and sell houses under land lease model on spare land / upgrade remainder of park dwellings as rental or LL product
Total 110
Redevelopment/Refurbishment –achieve higher rents at existing sites / enhance quality of asset and tenancies / increase asset value…
3. Lindfield Apartments 3 Refurbish remaining 3 RV units when available / review RV scheme
4. Burleigh Heads Townhouses 18 Complete civil works / refurbish houses
Total 21
Future Projects – Planning Stage
5. Cooks Hill Co-Living Community 50 Redevelop into 50 self-contained units
6. Mount Barker 97+ Change current DA – develop combination of residential land lots and LLC
7. Highway 1 50+ Expansion and reconfiguration - additional rental and land lease sites
8. Adelaide Caravan Park 100+ Redevelop into higher density mixed-use
Total 297+
Grand Total 428+

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

20

==> picture [468 x 264] intentionally omitted <==

==> picture [468 x 264] intentionally omitted <==

----- Start of picture text -----

Newcastle, NSW
Highway 1 Caravan and Tourist Park, Bolivar South, SA – newly installed XodboxeNewca s tle, NSW
----- End of picture text -----

Portfolio[3]

==> picture [103 x 45] intentionally omitted <==

21

Portfolio Summary

3.1

Portfolio Aggregates[1]

	Properties* Land Area	16 74 hectares
	Approved Sites	2,361
	Dwellings Owned by Aspen	859
	Density:
	- sites per hectare	32
	- dwelling / sites ratio	36%
	Portfolio Value:	$186m
	- per hectare	$2.5m
	- per approved dwelling/site	$79k
	Valuation WACR	8.3%

• Aspen currently has 16 properties valued at approximately $186m: o Average value of approximately $79k per approved dwelling/site

• Only $2.5m per hectare / $250 per sqm of land

• WACR of 8.3%

• 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

• Competitive operating costs (e.g. tax incentives / subsidies)

• Flexibility / optionality

• Strong potential for higher value use over time

• Perth Residential Portfolio of 84 dwellings is counted as 1

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

==> picture [753 x 123] intentionally omitted <==

----- Start of picture text -----

Camping / Sites Cabins Manufactured Homes Residential Homes Apartments / Co-Living
----- End of picture text -----

22

3.2

Aspen’s portfolio is geographically diversified…

==> picture [786 x 497] intentionally omitted <==

----- Start of picture text -----

WA (Hectares)Land Area Dwellings/Sites NT (Hectares)Land Area Dwellings/Sites Property Type by Location
12 Mandurah 6.8 158 15 Darwin FreeSpirit 10.8 461 (value weighted)
13 AKV 2.9 180
Total
14 Perth Residential 3.4 84 15 Dwellings/
Sites
2,361
Regional
(40%)
$17m (9%)
Metropolitan
13
(60%)
$51m (28%) Portfolio Value: ~$186m
$3m (2%)
16
Land Area Dwellings/
Queensland
$41m (22%) (Hectares) Sites
16 Burleigh Heads 0.94 18
14
12 10 i $73m (39%) 5 2 8 NSW Land Area (Hectares) Dwellings/Sites
1 3/4
9 11 1 Four Lanterns 3.9 131
ii
6 2 Sweetwater Grove 6.0 214
SA Land Area Dwellings/ 7 3 Lindfield Kiah 0.19 20
(Hectares) Sites
9 Adelaide CP 1.5 97 4 Lindfield Kalinda 0.16 22
10 Highway One 9.9 322 5 Koala Shores 5.1 144
11 Mount Barker 11.53 97 6 Barlings Beach 8.8 260
i CREST [1] 22 106 7 Tween Waters 1.9 98
ii Coorong Quays [1] 225 483+
8 Cooks Hill 0.19 55
----- End of picture text -----

1. CREST and Coorong Quays are owned by Funds managed by Aspen Group

23

Perth Portfolio: Acquisition timing and rationale supported 3.3

WA’s mining industry is growing strongly…

==> picture [324 x 207] intentionally omitted <==

----- Start of picture text -----

Most of this activity is in the Pilbara (Karratha) region
----- End of picture text -----

Fueling economic activity and population growth…

==> picture [334 x 207] intentionally omitted <==

Leading to higher demand for housing, lower vacancy rates, increasing rents…

==> picture [325 x 190] intentionally omitted <==

----- Start of picture text -----

Residential Portfolio
acquired
Source REIWA and
Member Survey
----- End of picture text -----

==> picture [128 x 12] intentionally omitted <==

----- Start of picture text -----

…and increasing values
----- End of picture text -----

==> picture [372 x 193] intentionally omitted <==

----- Start of picture text -----

Residential Portfolio
acquired
Source Landgate/REIWA
----- End of picture text -----

24

3.4

Aspen Karratha Village (AKV)

We expect economic activity to increase in Karratha, underpinned by major projects…

• We are transitioning to a short stay operating model at AKV after the expiry of Woodside’s long-term agreement in late January 2021

• AKV provides highly attractive workforce accommodation in the region – offering large rooms, excellent facilities, food packages, and a community atmosphere when working remotely

• We expect to earn higher profits over the long run under a short stay model given the additional operating intensity and volatility

==> picture [215 x 121] intentionally omitted <==

==> picture [214 x 122] intentionally omitted <==

New land and jobs in regional WA but still a housing crisis

• ABC Pilbara / By Susan Standen Posted Thursday 13 August 2020

Western Australia has seen around 5,000 workers migrate to the state for work since COVID-19 border restrictions have been in force.

New modelling by the Chamber of Minerals and Energy shows a need for more than 8,000 new workers for the resources sector over the next 12-18 months.

From Broome to Esperance, people are looking to buy land and settle in WA, according to Development WA (Landcorp), but the resources-rich northern WA city of Karratha is the hotspot.

But although there is an impending influx of workers for the new resources boom in Karratha, in the north-west of the state, there is still a housing shortage. And that's despite both state and local governments having put in money to bring down land costs to stimulate new builds.

Housing stock is short in Karratha with only 40 houses available to buy and sales have increased 72 per cent for the March to June quarter 2020

Project Examples:

Woodside: Scarborough & Pluto Train 2 Project[1]

Perdaman Industries: Urea project[2]

• Awaiting final investment decision

• ▪ $4 billion total investment

• Final investment decision expected 2H 2021

• ▪ $15.8 billion capex in WA to 2051

• 3,200 peak construction workforce

• 2,000 peak construction workforce including 200 permanent jobs at the plant

Woodside Karratha LNG Gas Plant

• 1.Source: https://www.woodside.com.au/what-we-do/australian-growth-projects/scarborough 2.Source: https://perdaman.com.au/perdaman-industries-chemicals-fertilisers/

25

3.5

1H FY21 Acquisitions – Attractively Priced

==> picture [786 x 497] intentionally omitted <==

----- Start of picture text -----

1 Mount Barker, SA 2 Build to Rent Townhouses 3 Cooks Hills, NSW Co-living
Development Land Burleigh Heads, Qld
Status: Settled December 2020 Settled December 2020 Settled July 2020
Purchase Price: $4.51m $3.15m $3.75m
Dwellings/Sites: 97 Sites 18 Houses 55 Rooms
Land Area: 11.53 hectares 9,388 sqm 1,948 sqm
Value Metrics:
- Per Dwelling/Site $46k $175k $68k
- Per Sqm Land $39 $336 $1,925
----- End of picture text -----

26

3.6

Aspen’s Portfolio Composition & Growth

• 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 – Aspen is in a stronger position to be able to optimise risks/rewards

==> picture [6 x 5] intentionally omitted <==

==> picture [6 x 5] intentionally omitted <==

Property Type[2] (value weighted)

==> picture [34 x 64] intentionally omitted <==

==> picture [65 x 64] intentionally omitted <==

==> picture [78 x 71] intentionally omitted <==

Short Stay Mixed-Use Residential Land Lease AKV

==> picture [6 x 5] intentionally omitted <==

==> picture [6 x 5] intentionally omitted <==

Property Type[2] (NOI weighted)

==> picture [68 x 72] intentionally omitted <==

==> picture [65 x 69] intentionally omitted <==

==> picture [65 x 65] intentionally omitted <==

Short Stay Mixed-Use Residential Land Lease AKV

==> picture [753 x 241] intentionally omitted <==

----- Start of picture text -----

Portfolio Composition [1,2] and Acquisition History + Mount Barker
+ Burleigh Heads
+ Lindfield Apartments
$m + Perth Residential Portfolio + Cooks Hill
200 AKV + Koala Shores + Highway 1 $174m $186m
180 Four Lanterns + Tween Waters 9%
+ Darwin FSR 9%
160 Mandurah + Barlings Beach $141m 21%
140 23%
Tomago 11%
$116m
120 ACP
100 total value of $90m 14% 28% 19% 24%
80 $67m properties 18% 34%
28% 23% 21%
60 24% 44% 13%
40
20 58% 16% 40% 33% 26% 25%
18% 22%
0
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 1H FY21
Short Stay Mixed-Use Residential Land Lease AKV
----- End of picture text -----

• 1: Value weighted based on property values

27

1. Excludes value of CREST and Coorong Quays which are managed by Aspen Group and owned by Funds

3.7

Aspen Group: Portfolio Summary

	New South Wales	New South Wales	New South Wales	New South Wales	New South Wales	New South Wales	New South Wales	New South Wales	New South Wales	Queensland
	Four Lanterns	Lindfield Kiah	Lindfield Kalinda	Sweetwater Grove	Koala Shores	Cooks Hill Co-Living Community	Barlings Beach	Tween Waters	NSW TOTAL	Burleigh Heads
Region	Sydney Metro Sydney Metro Sydney Metro Greater Newcastle Greater Newcastle Greater Newcastle South Coast South Coast									Gold Coast
Land Ownership	Freehold Freehold Freehold Freehold Free/Leasehold Freehold Freehold Freehold									Freehold
Customer Tenure	Land Lease Rental Rental Land Lease / Rental Short Stay Rental Land Lease / Short Stay Short Stay									Rental
Total Land Area (HA)1	3.9 0.19 0.16 6.0 5.1 0.19 8.8 1.9 26.3									0.94
Approved Sites2	131 20 22 214 144 55 260 98 944									18
- per Ha	33 104 140 36 28 289 30 50 36									19
Owned Dwelling Inventory3	8 20 22 53 40 55 33 33 264									18
- per Approved Site	6% 100% 100% 25% 28% 100% 13% 34% 28%									100%
Property Value4 ($m)	12.4 6.9 5.0 13.1 8.7 3.8 14.8 8.2 72.9									3.2
Valuation Cap Rate5	6.50% 3.74% 3.97% 8.50% 8.85% 4.50%6 8.75% 9.00% 7.34%									N/A
Value Per HA ($m)	3.2 35.8 31.9 2.2 1.7 20.1 1.7 4.2 2.8									3.4
Value Per Approved Site ($k)	95 345 228 61 60 69 57 84 77									175

1. Sweetwater Grove land area excludes "Environmental Conservation" land that is not currently approved for development

==> picture [137 x 52] intentionally omitted <==

1. Approved Sites is the total number of underlying units or land sites currently permitted on the property under title, licence or other conditions

2. 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

3. Property values are a mixture of Directors’ and external valuations

4. Valuation cap rate that has been applied by external valuers in the most recent external valuations

5. The valuation utilised a capitalisation rate range of 7 – 7.5% based on their adopted gross annual rent. We have adjusted this a net rate assuming 60% margin

28

3.8

Aspen Group: Portfolio Summary

	WA	WA	WA	WA	South Australia	South Australia	South Australia	South Australia	NT	GROUP
	Mandurah Gardens	AKV	Perth Residential	WA TOTAL	Adelaide CP	Highway One	Mount Barker	SA TOTAL	Darwin FSR	TOTAL
Region	South Coast Pilbara Perth Metro				Adelaide Metro Adelaide Metro Adelaide Metro				Darwin Metro
Land Ownership	Freehold Freehold Freehold				Freehold Freehold Freehold				Freehold
Customer Tenure	Land Lease Short Stay Rental				Short Stay Short Stay / Rental / Land Lease Under Review				Short Stay / Rental
Total Land Area (HA)1	6.8 2.9 3.4 13.1				1.5 9.9 11.5			22.9	10.8	74.0
Approved Sites2	158 180 84 422				97 322 97			516	461	2,361
- per Ha	23 62 24 32				65 33 8			23	43	32
Owned Dwelling Inventory3	1 180 84 265				47 115 N/A			162	150	859
- per Approved Site	1% 100% 100% 63%				48% 36% N/A			31%	33%	36%
Property Value4 ($m)	13.7 16.0 21.3 51.1				11.9 24.9 4.5			41.4	17.1	185.7
Valuation Cap Rate5	7.50% 17.00% 4.25% 9.12%				8.25% 9.25% N/A			7.95%	9.00%	8.34%
Value Per HA ($m)	2.0 5.5 6.2 3.9				7.9 2.5 0.4			1.8	1.6	2.51
Value Per Approved Site ($k)	87 89 254 121				123 77 46			80	37	79

1. Sweetwater Grove land area excludes "Environmental Conservation" land that is not currently approved for development

2. Approved Sites is the total number of underlying units or land sites currently permitted on the property under title, licence or other conditions

==> picture [137 x 52] intentionally omitted <==

1. 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

2. Book values are a mixture of Directors’ and external valuations

3. Valuation cap rate that has been applied by external valuers in the most recent external valuations

29

==> picture [468 x 264] intentionally omitted <==

==> picture [468 x 264] intentionally omitted <==

----- Start of picture text -----

Coorong Quays Marina and Tavern, SA
----- End of picture text -----

4 Managed Funds

==> picture [103 x 45] intentionally omitted <==

30

4.1

Funds Managed by Aspen – 1H FY21

Coorong Quays

• Operating profit 5% above forecast

• Marina berth occupancy up 11%

• Excellent land sales with 61 contracts in 1H FY21 compared to 23 for all of FY20

• Completed civil works on 32 residential land lots in 1H FY21 and commenced works on a further 40 lots for completion in 2H FY21. Preparing for construction of a further 69 lots in 1H FY22

• Commenced 2[nd] stage of new house construction in the Alexandrina Cove Lifestyle Village after selling 3 of the 4 houses in stage 1

• Project on track to generate 2-3x equity multiple

CREST @ Woodside

New lifestyle village houses at Alexandrina Cove

• Stage 1 and 2A civil works are complete allowing for the titling and sale of the first 49 lots and 15 more houses to be leased or sold with a licence to occupy

• 11 houses and 10 land lots (21 in total) settled in 1H FY21 compared to 15 for all of FY20.

• The balance of civil works and house refurbishments for the site are now contracted and underway with civil works expected to complete in FY21 and further 24 house refurbishments in 1H FY22

• Project on track to generate 2-3x equity multiple

Rockleigh

• All lots have now been sold and settled

==> picture [347 x 232] intentionally omitted <==

31

==> picture [468 x 264] intentionally omitted <==

----- Start of picture text -----

Burleigh Heads, QLD
----- End of picture text -----

==> picture [468 x 264] intentionally omitted <==

5 Ethical, Social, and Corporate Governance

==> picture [103 x 45] intentionally omitted <==

32

5.1

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 the residential, retirement and short stay sectors. Many of our customers are disadvantaged with below-average wealth and income, and therefore find it difficult to secure suitable accommodation

• 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 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

• We continually embrace new technologies to deliver innovative products and services to our customers whilst minimising costs and our ecological footprint. For instance, where feasible, our communities include:

• New homes and community facilities with improved building techniques, designs and materials that must meet current regulated building codes that are usually equivalent to the top 6 Star NABERS rating (eg. replacing obsolete caravans with highly insulated Xodboxes that require significantly less energy for heating and cooling)

• Energy and water monitoring systems that enable us and our customers to better regulate and reduce energy and water use

• Solar installations (eg. rooftop solar panels, solar-boosted hot water heaters, solar lights for pathways and gardens)

• Appliances and devices that consume less energy and water (eg. LED lighting, low-flow shower heads, automated shut down of air conditioners)

• Recycled water systems (eg. recycling wastewater for grounds watering)

• Recycled waste collection facilities

• Shared community facilities including pools, gym facilities, tennis courts and garden/vegetable/fruit pods

• Shared vehicles for group transport (eg. community bus) and bike storage areas

33

5.2

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 and 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

• The Boards have 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, subject to vesting conditions including qualitative and quantitative performance measures

34

==> picture [157 x 12] intentionally omitted <==

----- Start of picture text -----

Darwin Freespirits Resort, NSW
----- End of picture text -----

==> picture [194 x 13] intentionally omitted <==

----- Start of picture text -----

Aspen Karratha Village, WAFour Lanterns Estate, Leppington NSW
----- End of picture text -----

6

Aspen Group Statutory Accounts Extracts

==> picture [205 x 59] intentionally omitted <==

----- Start of picture text -----

16 Treatts Rd, Lindfield Apartments, NSWBarlings Beach Holiday Park, NSWPerth, WA
----- End of picture text -----

==> picture [208 x 11] intentionally omitted <==

----- Start of picture text -----

Seabreeze Villa cabins – Barlings Beach, NSW
----- End of picture text -----

==> picture [103 x 45] intentionally omitted <==

35

Statutory Accounts Extract: Statement of Profit and Loss

6.1

^ PLACEHOLDER ^ Notes can be viewed in the financial statements 36

6.2

Statutory Accounts Extract: Balance Sheet

	^	^	^
	^No	tes can be	37 viewed in the financial statements

Statutory Accounts Extract: Cash Flow Statement

6.3

PLACEHOLDER

38

6.4

Statutory Accounts Extract: Segment Information

PLACEHOLDER

39

==> picture [468 x 264] intentionally omitted <==

----- Start of picture text -----

Burleigh Heads, QLD
----- End of picture text -----

==> picture [468 x 264] intentionally omitted <==

7 Appendices

==> picture [103 x 45] intentionally omitted <==

40

7.1

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
	30 June 2020		Aspen Group Ltd		Aspen Property Trust
			Gross ($m)		Gross ($m)
	Revenue tax losses
	Capital tax losses

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

41

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 forward-looking information, view or intention referred to in this presentation will actually occur as contemplated. All references to dollar amounts are in Australian currency.

==> picture [145 x 63] intentionally omitted <==