Astro Japan Property : FY14 Earnings Guidance

ASX/Media Release

14 July 2014

Astro Japan Property Group (ASX: AJA) today announced earnings guidance for the year ended
30 June 2014. Underlying after-tax profit is expected to be in the range of $26.8 - $27.2 million compared to $28.8 million for the previous year.
This forecast result reflects the determination of a performance fee of $2.54 million payable to AJA's Japan Asset Manager, Spring Investment Co., Ltd (Spring). The forecast result also takes into account AJA's entitlement to participate in 25% of Spring's profits, including that fee.
The fee is calculated by comparing the total return of AJA to the S&P/ASX 200 Property Accumulation Index. The fee is equal to 5% of outperformance up to 2% outperformance, and 15% of outperformance above 2% outperformance, calculated by reference to the market capitalisation (which was based upon the 10 day VWAP ended on 9 July 2014). In calculating the fee, any cumulative under-performance over the three year period prior to the calculation date must be recovered. In the year to 30 June 2014, AJA's total return exceeded that of the Index by approximately 29.1% and over three years, the maximum relevant period for the calculation, by approximately 16.9%.
The payment of the distribution of 10 cents per security for the six month period to 30 June 2014, which is payable on 29 August 2014, will not be affected as Spring has agreed to deferment of the performance fee.
AJA expects that the fee will be met from the proceeds of a capital management initiative, such as an asset sale or refinancing, rather than from operating cash flow.
The forecast represents earnings per security in the range of 39.9 - 40.5 cents compared to 46.3 cents for FY13, impacted by the issue of 8.76 million AJA securities in January 2013.
Full details of AJA's financial results for the 12 month period to 30 June 2014 are expected to be announced on Wednesday, 27 August 2014.

Eric Lucas John Pettigrew

Senior Advisor Chief Financial Officer

Phone: +61 2 8987 3900 (Australia) Phone: +61 2 8987 3902

+81 3 3238 1671 (Japan)

Astro Japan Property Group is a listed property group which invests in the Japan real estate market. It currently holds interests in a portfolio comprising 32 retail, office and residential properties. Asset management services in Japan are generally undertaken by Spring Investment Co., Ltd.

AJA is a stapled entity comprising Astro Japan Property Trust (ARSN 112 799 854) and Astro Japan Property Group Limited (ABN 25 135 381 663). For further information please visit our website: www.astrojapanproperty.com.

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