ASPEN GROUP — Investor Presentation 2012

May 9, 2012

Aspen Group Credit Suisse Presentation 10 May 2012

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1. Group Overview

2. Aspen Business Environment 3. Property Portfolio

3. Funds Management 5. Outlook and Summary

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Group Overview

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GROUP OVERVIEW
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• Forecast 10% like for like FY12 property portfolio net rental increase

• High growth revenue outlook from Property Portfolio for FY13

• Strong leasing enquiry at Spearwood Industrial Estate

• Significant increase in retail equity inflows experienced

• Aspen Parks Property Fund asset growth strategy progressing

• Strategic review of ATO building JV investment underway

• Sales of $35m settling in May 2012 for Rocklea and Alcoa properties

• − Board renewal complete

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GROUP OVERVIEW
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Board Renewal – Non executive independent members

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Frank Zipfinger – Chairman (appointed January 2011)

• Former Partner of Mallesons Stephen Jaques specialising in property

• Chairman of Mallesons from 2005 to 2009 and Partner for 27 years

Terry Budge – Non Executive Director (appointed May 2005)

• Over 35 years experience in banking industry with NAB and Bankwest

• Managing Director Of Bankwest from 1997 to 2004

Hugh Martin – Non Executive Director (appointed 30 April 2012)

• Former Executive Director of Lend Lease Development

• CEO of Mirvac and Lend Lease JV from 1997 to 2001

• Extensive property experience with major property and construction organisations including Baulderstone, Stockland and Dexus

Clive Appleton – Non Executive Director (appointed 30 April 2012)

• Former Managing Director of the Gandel Group

• Executive Director for APN Property Group Private Funds Division

• Extensive retail property and funds experience including role of Managing Director

Aspen Business Environment

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ASPEN BUSINESS ENVIRONMENT
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Aspen has significant exposure to WA economy:

Aspen Group AUM - Geographical Diversification by state

• WA economy produces 46% of Australia’s exports – mainly minerals and energy resources[1]

• Significant investment in WA resource projects and infrastructure. As at Dec 2011, over A$180b is

committed to new WA projects[1]

• Forecast creation of 50,000 construction jobs and

• 15,000 permanent jobs in WA from resource activity[1]

• Perth CBD office vacancy currently 2% (lowest since 2008)[3]

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Value of advanced resource projects by state (2011) $A174b[2]

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VIC 3%
NT < 1%
SA < 1%
TAS < 1%
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ASPEN BUSINESS ENVIRONMENT
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Improving funds management metrics:

• Investor confidence slowly returning in quality unlisted property funds

• Lower fixed deposit interest rate environment

• Growth in SMSF sector and reallocation of cash holdings

• Increasing demand for high yield products

Lower interest rate environment expected to impact:

• Reduced debt costs

• Stimulate sluggish land sales environment

• Foster improved residential expectations for WA, with some growth in NSW, improvement in Qld

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ASPEN BUSINESS ENVIRONMENT
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Capital Management

Capital management remains a focus

Portfolio sales to reduce debt by $22m in May 2012 and increase facility capacity by $10m

Refinancing for investment term debt for ATO Building is well progressed - option of 5 year term with Telstra Super remains

Some limited support to certain syndicates to progress development, including interest capitalisation

Key Metrics	April 2012
NTA1	67.9 cps
EPS (FY12)	6.43 cps
Distribution FY12	4.20 cps
Gearing2	34.2%
Debt maturity (core debt)	Feb 2014
W. Ave cost debt (core debt)	8.61%
Hedging %	87%

1. excludes non dilutive employee shares

2. Post settlement of Alcoa building

Sell down of non-core assets in focus

Facility maturities – approximately 10% of total debt maturing within 12 months, principally Fern Bay

PROPERTY PORTFOLIO

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PROPERTY PORTFOLIO
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Investment Property Overview

Asset sales concluded:

• Settled sale of Alcoa Building May 2012

• Settlement of Rocklea premises expected mid May 2012 for $7.35m

Septimus Roe Building – secured tenants at new benchmark net rent – 23% above average passing

Aspen Karratha Village – market review under way

ATO Building development on track for October 2012 completion

Portfolio occupancy 97%

Outlook

Portfolio to benefit from overweight position in buoyant WA market

Expected uplift on ATO Building upon completion

Office vacancy in Perth currently at 2%[1]

Strong reversionary rent potential in Aspen portfolio – assisted by short WALE

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PROPERTY PORTFOLIO
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Spearwood Industrial Estate

Entire complex sub-leased to AWH expiring June 2012

Strong rental upside on cessation of lease

• Leasing campaign showing strong demand

• Warehouse GLA 99k sqm

• Hardstand GLA 100k sqm

• Shortage of industrial land and warehousing in WA

• Strong demand from resource sector

Key Metrics	GLA (sqm)	Passing rent $m	Market rent $m
Spearwood Industrial	199,693	4.70	7.74

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FUNDS MANAGEMENT

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FUNDS MANAGEMENT
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Aspen Parks equity inflows to April 2012 and Forecast FY12

Overview

• Strong retail equity inflows - up 82% on pcp

• Strategic focus on building new investor networks across institutional, high net worth and advisor segments for existing and planned fund products

• Continued diversified support from advisers through major platforms

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50
$M Forecast
45
40 Actual
35
30
25
20
15
10
5
0
FY07 FY08 FY09 FY10 FY11 FY12
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Outlook

Aspen Parks Wholesale Fund – Platform Supporters

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Colonial AMP Other
► Recent interest rate cuts likely to favour First State 3.9% 2.4%
unlisted property sector 4.2%
Macquarie
11.7%
► BT Wrap
Strong growth from Aspen Parks
39.6%
►
New fund offerings being assessed on back of
strong distribution network
Netwealth
20.7%
Asgard
17.5%
14
Aspen Group – May 2012
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FUNDS MANAGEMENT
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Aspen Parks Property Fund

Overview

FY12 trading performance on track

Major growth in revenue driven by mining properties

FY12 distribution payout ratio of 82%

Gearing reduced to 34.4% (June 2011: 44.4%)

Outlook

Strong equity inflows support asset growth going forward

Actively pursuing strategic acquisitions to complement portfolio diversification

Progress planning and development opportunities

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FUNDS MANAGEMENT
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Aspen Diversified Property Fund

Key Metrics	April 2012	Dec 2011
Weighted Ave Cap Rate (%)	9.18%	9.18%
Occupancy (%)	96%	96%
WALE (years)	5.39	5.47

Overview

• FY12 performance to date in line with forecast

• Property fundamentals improved however secondary asset markets remain soft

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Outlook

• Portfolio occupancy of 96% provides for select asset sales

• Gearing to be reduced through asset sales

• Unitholders meeting in 2012 to consider Fund strategy

72-96 Station St, Nunawading, VIC

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FUNDS MANAGEMENT
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Aspen Living

Overview

Market conditions remain inconsistent, especially in eastern states and regional markets

• Perth north east corridor sales in line with expectations

• Settlements impacted by inventory lag and clearance delays

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Aspen Living – current lot production by state

• Housing sector finance remains tight leading to higher than average cancellation rates in some markets

• Current lot production bias towards WA assets

First large scale display village secured at Dunsborough Lakes

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FUNDS MANAGEMENT
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Aspen Living Outlook

Region	Estate	Lots remaining	Outlook
North Queensland		800	Activity has been flat although there are signs investor activity is increasing. Pressure remains on price as stock becomes aged.
Newcastle, NSW		760	Enquiry levels and sales conversion subdued, however interest rate cuts and maturing further stages likely to create more sales.
Perth Metro		180	Demand has remained strong for well located assets. Evidence of moderate price growth in north east corridor.
		700
South West WA		1,070	Sales enquiry and conversion remains low. Activity only occurring in lower end of the market - sub $400k house and land. Pressure remains onprice as stock becomes aged.

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FUNDS MANAGEMENT
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ADF No. 1 Overview

• ATO Building works now 86% complete

• Capital management challenges impacting on asset delivery strategy - development support being provided by Group

• Mariner Apartments in Geraldton occupancy in position to be sold down (90% occupancy)

• Norwest medical suites selling down with renewed enquiry

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ATO Building under construction, Adelaide

• Byford residential patchy with modest result expected

Outlook

• Expectation of moving to 75% ownership of ADF in November 2012

• Progress office / entertainment precinct planning in Adelaide Planning approvals on land bank being progressed

• Successful appeal on Norwest car park expected to deliver uplift in value. Realisation of suites and car park circa $12.5m

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Outlook and Summary

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OUTLOOK AND SUMMARY
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• Capitalise on current strategic positioning of WA weighting to drive rental and asset value growth

• Look to continue growth of our retail funds management business to be a market leader in this area

• Development of new fund opportunities, both retail and wholesale investors

• Remain active in capital management initiatives to relieve funding constraints

• Interest rate environment provides scope for further recovery in development fund areas and funds management growth

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DISCLAIMER
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This presentation has been prepared by Aspen Group (“Aspen”) and should not be considered in any way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Prospective investors should make their own independent evaluation of an investment in Aspen. Nothing in this presentation constitutes investment, legal, tax or other advice. The information in this presentation does not take into account your investment objectives, financial situation or particular needs. The information does not purport to constitute all of the information that a potential investor may require in making an investment decision.

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

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