27 September 2016 ASX Market Announcements ASX Limited Exchange Centre, 20 Bridge Street ...

108 Pages·2016·5.71 MB·English

by  Aspen Group

Aspen Group Limited
ABN 50 004 160 927

Aspen Property Trust
ARSN 104 807 767

Suite 307, Level 3
37 Pitt Street
Sydney NSW 2000

Telephone: [phone]
Facsimile: 02 9151 7599

Email: [email protected]

27 September 2016

ASX Market Announcements
ASX Limited
Exchange Centre, 20 Bridge Street
Sydney NSW 2000

Dear Sir/Madam

2016 Annual Report, Corporate Governance Statement and Appendix 4G

In accordance with Listing Rule 4.7, please find attached the Aspen Group 2016 Annual Report, the
Corporate Governance Statement and Appendix 4G.

Yours faithfully

Mandy Chiang
Company Secretary

Dear Secuurriittyyhhoollddeerrss
I am pleased to pprreesseenntt tthhee 22001166 AAnnnnnuuaall RReeppoorrtt.. IIInnn 22001166,, AAssppeenn GGrroouupp rreeccoorrdddeeedd aa
statutory profi t of $9.9 mmiilllliioonn,, tthhee fifi rrssstt aannnnuuaall ssttaattuuuttoorryy pprroofifi tt tthhee GGrroouupp hhaasss rreeccoorrrdddeedd
since 2011. Distributions declaredd ffoorr tthhee yyeeaarr totalleedd 99..22 cceennttss ppeerr sseeccuurriittyy,, iinn lliinnee wwwiiittthh
guidance.
The balance sheet is strong, with no debt and $49 mmiilllliioonn ooff ccaasshh aatt hhaanndd aasss aatt 3300 JJuunnee
2016. This strong balance sheet allowed us to activattee oouurr oonn--mmaarrkkeett bbuuyybbaaaccckk,, aaccqquuiirriinngg
about 10% of securities on issue during the year at ann aavveerraaggee pprriiccee ooff $$11..222000 ppeerr sseeccuurriittyy..
Operating profi t before tax for the year of $6 million wwaass ddoowwnn 3322%% oonn FFYYY111555.. TThhiiss ffaallll wwaass
largely due to the effect of the sale of Aspen Parks PPrrooppeerrttyy FFuunndd ((AAPPPPPFFF)) aanndd ddiissppoossaall ooff
non-core assets.
It was a year of substantial change within Aspen Group, with the divestmenntt ooff AAssppeenn GGGrrrooouupp’’ss iinntteerreesstt iinn AAPPPPFF aatt
a signifi cant premium to its NAV. Aspen Group’s focus remains on buildiinngg aa ssttrrooonnnggg aaffffoorrddaabbllee aaccccoommmmooddaattiioonn
business, and re-establishing scale of the business. During the year, Aspeenn aaccqquuuiiirrreeeddd ttwwoo aaccccoommmmooddaattiioonn aasssseettss aatt
an average ingoing yield of 9.5%. With cash on hand plus potential debbtt ccaapppaaaccciittyy,, wwee ccoonnttiinnuuee ttoo llooookk aatt aaddddiittiioonnaall
investments, but still maintaining discipline on our fi nancial and strateggiiiccc pppaaarrraaammeetteerrss..
We continue working on capital expenditure plans at our existinggg ppprrroopppppeerrttiieess,, wwiitthh eexxppaannssiioonn ppllaannss aaddvvaanncciinngg aatt aa
number of parks. At the same time, we continue our focus oonn ccoosstt ccooooonnttrrooll;; ggrroouupp oovveerrhheeaaddss wweerree ddoowwnn oovveerr 1100%%
over FY15.
During the year, Frank Zipfi nger resigned as Chairmmaann aanndd DDiirreeccttoorr ooff AAssppppppeenn GGrroouupp.. FFrraannkk jjooiinneedd tthhee BBooaarrdd iinn JJaannuuaarryy
2011 and became Chairman in November 22001111,, pprroovviiddiinngg lleeaaddeerrsshhiipp tttoooooo tthhee ggrroouupp dduurriinngg aa ppeerriioodd ooff ccoonnssiiddeerraabbllee
tumult, and stabilising the Group. I woouuulllddd llliiikkkeee tttooo aaaccckkknnnooowwwllleeedddgggeee aaannnddd ttthhhaaannnnkkkkkk FFrraannkk ffoorr hhiiss sseerrvviiccee ttoo AAssppeenn GGrroouupp..
I also thank the Aspen Group ssttaaffff aanndd mmmyyy fffeeellllllooowww BBBoooaaarrrddd mmmeeemmmbbbeeerrrsss fffooorrr tttthhhheeeeeiirr ddeeddiiccaattiioonn aanndd hhaarrdd wwoorrkk tthhiiss ppaasstt yyeeaarr..
On behalf of the Board, I aallssoo eexxtteenndd aappppprrreeeccciiiaaatttiiiooonnn tttooo ooouuurrr ssseeecccuuurrriiitttyyyhhhooollldddeeerrrrsss fffffooorr yyoouurr ccoonnttiinnuueedd ssuuppppoorrtt ooff AAssppeenn GGrroouupp..
Clive Appletoonn
Chairman
Page iii
AASSPPEENN GGRROOUUPP AANNNNUUAALL RREEPPOORRTT 22001166
About Aspen
Formed in 2001, Aspen Group is an ASX listed property group strategically focused on providing affordable
accommodation, which is considered to have positive long term structural characteristics, with an enduring customer
need and effective capital utilisation.
Our Assets
AFFORDABLE ACCOMMODATION
Aspen Karratha Village AKV is a 180 room, high quality accommodation facility in Karratha, Western Australia.
(AKV) The property provides a superior standard of amenity than traditionally found locally in
the sector, including room sizes which are typically 28 m2 as opposed to the market
standard 14-18m2.
The current lease with Woodside for 150 rooms expires in January 2018. Terms of the
lease include the tenant’s ability to terminate the lease on a change of control of the
Aspen Group subsidiary, Aspen Living Villages Pty Ltd, which is the contracting party to
the agreement.
Four Lanterns Estate Four Lanterns Estate is located within the Leppington Town Centre, part of the major
south-western Sydney metropolitan growth corridor.
Established for over 40 years, the site has 102 existing residential sites, with a 100%
occupancy level. Development potential exists to increase the number of residential
sites by 31 subject to Council approval.
Aspen Karratha Village (AKV) Four Lanterns Estate, NSW
PPaaggee iivv
Mandurah Gardens Mandurah Gardens Estate is located in Mandurah, South of Perth, WA. It is in close
Estate proximity to the regional hospital, the Mandurah Forum shopping centre as well as the
Mandurah beaches and restaurant precinct.
Established in 1999, it has 158 residential sites and a 100% occupancy level.
Tomago Van Village Tomago Van Village is located in Tomago, NSW, 23km to the Newcastle CBD and 159
km to the Sydney CBD.
The property has 160 sites, 136 of which are licenced for long-term utilisation, with the
balance being short-stay sites. There is an existing development consent for a further
24 long term sites with further development opportunities subject to Council approval.
Adelaide Caravan Park Adelaide Caravan Park is located 3km from the centre of the Adelaide CBD and within
walking distance to the Adelaide Zoo and Adelaide Oval.
The property is set on 11 individual titles and has development potential. Currently the
park has 75 sites, 44 cabins and 31 powered sites and all accommodation is short stay.
INDUSTRIAL
Spearwood South Spearwood South is the only material non-core asset remaining, valued at $29.0 million,
representing an 12% yield.
The industrial property is fully leased with an approximate 4 year lease term remaining.
Mandurah Gardens Estate Adelaide Caravan Park
PPaaggee vv
ASPEN GROUP ANNUAL REPORT 2016
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Page vi
ASPEN GROUP LIMITED
(THE COMPANY)
(ABN: 50 004 160 927)
ASPEN PROPERTY TRUST
(THE TRUST)
(ARSN: 104 807 767)
ASPEN FUNDS MANAGEMENT LIMITED
(AS RESPONSIBLE ENTITY)
(ABN: 104 322 278)
FINANCIAL REPORT FOR THE YEAR ENDED
30 JUNE 2016
Page 1
ASPEN GROUP ANNUAL REPORT 2016

ANNUAL REPORT FOR THE YEAR ENDED
30 JUNE 2016

Annual Report table of contents

Directors’ report Page 4
Lead auditor’s independence declaration Page 32
Independent auditor’s report Page 33
Financial statements Page 35
Notes to the financial statements Page 41
Directors’ declaration Page 76

Page 2
Directors’ report contents page

Directors Page 4
Operating and financial review Page 8
Remuneration report Page 15
Corporate governance statement Page 30

Page 3