Astro Japan Property : AJA Full Year Results to 30 June 2017

ASX/Media Release

24 August 2017

Please find attached the following documents relating to Astro Japan Property Group's Full Year Results to 30 June 2017:

1. ASX Appendix 4E

2. Annual Financial Report for the year ended 30 June 2017

   ENDS Investor & Media Enquiries:

   Eric Lucas John Pettigrew

   Senior Advisor Chief Financial Officer

   Phone: +81 3 3238 1671 (Japan) Phone: +61 2 8987 3902

   About Astro Japan Property Group (AJA)

   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 29 retail, office, residential and hotel 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.

   Appendix 4E Preliminary Final Report Astro Japan Property Group

   [The financial information in this Appendix 4E represents the consolidated financial information of the Astro Japan Property Group comprising Astro Japan Property Trust (ARSN 112 799 854),

   Astro Japan Property Group Limited (ABN 25 135 381 663) and its controlled entity.]

3. Details of the reporting period

   Current Period:

   1 July 2016 - 30 June 2017

   Previous Corresponding Period:1 July 2015 - 30 June 2016

4. Results for announcement to the market

   $A'000
   2.1 Revenue from ordinary activities1	up 12.8% to	20,387
   2.2 Net (loss) for the period attributable to stapled securityholders	% movement not applicable2	(12,424)
   2.3 Underlying profit3	up 9.8% to	34,550
   2.4 Distributions4	Amount per security	Franked amount per security
   Current Period: Final distribution Interim distribution	21.00¢ 21.00¢	N/A N/A
   Previous Corresponding Period: Final distribution Interim distribution	18.00¢ 18.00¢	N/A N/A
   Refer to associated ASX results announcement.

5. Record date for determining entitlements to the 30 June 2017 distribution

6. Provide a brief explanation of any of the figures reported above necessary to enable the figures to be understood:

7. 1 Revenues from ordinary activities comprise financing income, distribution income and other income.

   2 Percentage movement cannot be calculated as the result in the previous corresponding period was a net profit.

   3 Net (loss)/profit for the year after tax before fair value adjustments to unlisted investments, foreign currency translation impact on the fair value of the TKs, TK operator share of TK distributions, fair value adjustments to investment property, fair value adjustments to interest bearing debt, (gain)/loss on disposal of investment properties, Spring distribution in relation to SSA disposal net of tax, expenses associated with TK refinancing, net foreign exchange loss/(gain) and deferred tax on fair value adjustments.

   4 There is no foreign conduit income attributed to these distributions.

8. Analysis of financial performance

   The Group's statutory loss after tax for the year ended 30 June 2017 was $12.4 million. The following table summarises key reconciling items between the Group's statutory result and underlying profit5.

   3.1 Reconciliation between Group's statutory result and operating	30 June	30 June
   profit:	2017	2016
   $A'000	$A'000
   Net (loss)/profit after tax for the year6	(12,424)	132,134
   Fair value adjustment to unlisted investments	506	862
   Foreign currency translation impact on the fair value of the TKs	51,358	(82,291)
   TK operator share of TK distributions	39	65
   Fair value adjustments to investment properties	(8,573)	(19,187)
   Fair value adjustments to interest bearing debt	(590)	3,815
   (Gain)/loss on disposal of investment properties	(165)	193
   Spring distribution in relation to SSA disposal, net of tax	(3,042)	-
   Expenses associated with TK refinancings	-	779
   Net foreign exchange loss/(gain)	4,057	(8,510)
   Deferred tax on fair value adjustment	3,384	3,600
   Underlying profit after tax	34,550	31,460

9. Statement of Profit or Loss and Other Comprehensive Income with notes

   Refer to the Consolidated Statement of Profit or Loss and Other Comprehensive Income in the attached financial statements.

10. Statement of Financial Position with notes

    Refer to the Consolidated Statement of Financial Position in the attached financial statements.

11. Statement of Cash Flows with notes

    Refer to the Consolidated Statement of Cash Flows in the attached financial statements.

12. Statement of Changes in Equity showing movements

    Refer to the Consolidated Statement of Changes in Equity in the attached financial statements.

13. Details of distributions

    Refer to the attached financial statements Note 4 Distributions paid or payable and the Directors' report.

    5 Underlying profit is used to provide a better understanding of the Astro Group's financial performance and comparison of performance between the different financial periods. It is a non-IFRS measure which adjusts the balances that are unrelated to the underlying performance of the business to reflect the Directors' assessment of the Astro Group's underlying business activities having regard to the guidance from ASIC's RG 230 Disclosing Non-IFRS information. These principles include providing a clear reconciliation between statutory profit and underlying profit in the Directors' Report, including both positive and negative adjustments and maintaining consistency between reporting periods. The adjustments include non- cash fair value movements within the financial assets at fair value through profit and loss (representing investments in the TKs), and are detailed in the segment reporting disclosure in Note 1. The adjustments between statutory profit after income tax and underlying profit have not been audited in accordance with Australian Auditing Standards.

    6 All items below are included in the underlying TKs' fair value determination as set out in Note 1 Segment reporting.

14. Net tangible asset backing per security

    30 June 2017	30 June 2016
    * Net tangible asset backing per security	$7.63	$8.26

    * Under the listing rules NTA Backing must be determined by deducting from total tangible assets all claims on those assets ranking ahead of the ordinary securities (i.e, all liabilities, preference shares, outside equity interests etc).

15. Control gained or lost over entities during the period

    N/A

16. Details of associates and joint venture entities

    N/A

17. Other significant information

    Refer to the attached Directors' report.

18. Accounting standards used by foreign entities

    Refer to the attached financial statements Note 20 Statement of other significant accounting policies.

19. Details of distribution reinvestment plan

    The Distribution Reinvestment Plan was not activated for the distribution for either the six months ended 31 December 2016 or the six months ended 30 June 2017.

20. Commentary on results

21. 15.1 Earnings per security
    Refer to the attached financial statements Note 5 Earnings per stapled security.
    15.2 Returns to shareholders:	30 June	30 June
    2017	2016
    $A'000	$A'000
    Distributions	25,474	21,835