Astro Japan Property : Interim Financial Report of Stapled Company

ASX/Media Release

22 February 2017

INTERIM FINANCIAL REPORT OF STAPLED COMPANY

Astro Japan Property Group (ASX: AJA) earlier today announced its half year results to 31 December 2016 and released the Appendix 4D (Half Year Report) and the Interim Financial Report covering the operations of the Astro Group as a whole.

In accordance with the Corporations Act 2001 (Cth), the Astro Group prepares two interim financial reports for release to the ASX: one report which covers the operations of the Astro Group as a whole (released earlier today); and another smaller report which covers the listed stapled company, Astro Japan Property Group Limited and its controlled entity.

Please find attached the Interim Financial Report for Astro Japan Property Group Limited for the period ended 31 December 2016 covering the operations of only the stapled company and its controlled entity. This report should be read together with the Interim Financial Report of the Astro Group released earlier today.

ENDS

Investor & Media Enquiries:

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)

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 27 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.

(ABN 25 135 381 663)

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual financial report for the year ended 30 June 2016 and any public announcements made by Astro Japan Property Group during the interim reporting period in accordance with the continuous disclosure requirements of the ASX Listing Rules and the Corporations Act 2001 (Cth).

Through our website, we have ensured that our corporate reporting is timely, complete and available globally at minimum cost to the Astro Group. All press releases, financial reports and other information are available on our website: www.astrojapanproperty.com

Directors' Report 1

Auditor's Independence Declaration 2

Consolidated Statement of Profit or Loss and Other Comprehensive Income 3

Consolidated Statement of Financial Position 4

Consolidated Statement of Cash Flows 5

Consolidated Statement of Changes in Equity 6

Notes to the Financial Statements 7

1. Financial assets carried at fair value through profit or loss (FVTPL) 7

2. Fair value measurement of financial instruments 7

3. Profit/(loss) per security 8

4. Contributed equity 8

5. Segment reporting 9

6. Contingent assets and liabilities 9

7. Lease commitments 9

8. Statement of significant accounting policies 9

9. Events occurring after the end of the reporting period 10

Directors' Declaration 11

Independent Auditor's Review Report 12

DIRECTORS' REPORT

for the half year ended 31 December 2016

The Directors of Astro Japan Property Group Limited (ABN 25 135 381 663) ("AJCo") present their report together with the consolidated financial statements of AJCo and its controlled entity ("AJCo Group") for the half year ended 31 December 2016.

The Astro Japan Property Group

The Astro Japan Property Group ("Astro Group") comprises Astro Japan Property Trust (ARSN 112 799 854) ("AJT"), AJCo and its controlled entity. The shares in AJCo are stapled to the units in AJT on a 'one for one' basis and together are referred to as "stapled securities". AJCo and AJT are separate legal entities under the Corporations Act 2001 (Cth) so are therefore required to separately comply with the reporting and disclosure requirements under the Corporations Act 2001 (Cth), Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board and Urgent Issues Group Interpretations (UIG). This report is in respect of the AJCo Group.

The registered office and principal place of business of AJCo is Suite 4 Level 10, 56 Pitt Street, Sydney NSW 2000.

Principal activities

The principal activities of AJCo are:

• ownership of Astro Japan Property Management Limited ("Responsible Entity"), the Responsible Entity of AJT; and

• ownership of a 25% economic interest in Spring Investment Co., Ltd, ("Japan Asset Manager" or "Spring"), which is the manager of the Astro Group's Japanese property interests.

Financial and operating review

AJCo Group made a profit after income tax of $5,825 for the half year ended 31 December 2016 (31 December 2015: loss after income tax of $738,053).

Dividends

The Directors have not declared any dividends for the half year ended 31 December 2016 (31 December 2015: nil).

Significant changes in the state of affairs

In the opinion of the Directors, there were no changes in the state of affairs of AJCo that occurred during the half year under review.

Matters subsequent to the end of the half year

The Directors are not aware of any matter or circumstance occurring since 31 December 2016 not otherwise dealt with in the half year financial report that has significantly or may significantly affect the operations of the AJCo Group, the results of those operations, or the state of affairs of the AJCo Group in subsequent financial years.

Directors

The Directors of AJCo at any time during and since the period end are:

Auditor's independence declaration

The auditor's independence declaration is included on the page following this Directors' Report.

Dated 22 February 2017.

Signed in accordance with a resolution of the Directors pursuant to s.306(3) of the Corporations Act 2001 (Cth).

Allan McDonald Director

Astro Japan Property Group Limited

Page 1 ASTRO JAPAN PROPERTY GROUP LIMITED