Astro Japan Property : AJA Half Year Results to 31 December 2016

ASX/Media Release

22 February 2017

AJA HALF YEAR RESULTS TO 31 DECEMBER 2016

Please find attached the following documents relating to Astro Japan Property Group's Half Year Results to 31 December 2016:

1. ASX Appendix 4D

2. Interim Financial Report for the half year ended 31 December 2016

ENDS Investor & Media Enquiries:

Eric Lucas John Pettigrew

Senior Advisor Chief Financial Officer

Phone: [phone] (Australia) Phone: [phone]

[phone] (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.

Appendix 4D Half Year Report

ASTRO JAPAN PROPERTY GROUP

[The financial information in this Appendix 4D represents the consolidated financial information of Astro Japan Property Trust (ARSN 112 799 854), Astro Japan Property Group Limited (ABN 25 135 381 663) and its controlled entity.]

1. Details of the reporting period

   Current Period:

   1 July 2016 - 31 December 2016

   Previous Corresponding Period:1 July 2015 - 31 December 2015

2. Results for announcement to the market

   $A'000
   2.1 Revenue from ordinary activities1	down 56.8% to	6,385
   2.2 Net (loss) for the period attributable to stapled securityholders	% movement not applicable2	(22,445)
   2.3 Underlying profit3	up 6.3% to	18,256
   2.4 Distributions	Amount per security	Franked amount per security
   Current Period: Final distribution Interim distribution	N/A 21.00¢4	N/A N/A
   Previous Corresponding Period: Final distribution Interim distribution	N/A 18.00¢	N/A N/A
   Refer to Section 3 below and to the associated ASX results announcement

3. Record date for determining entitlements to the 30 December 2016 interim distribution

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

5. 1 Revenues from ordinary activities comprise financing income and distribution 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 half year after tax before fair value adjustments to the 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 on disposal of investment properties, expenses associated with TK refinancings, net foreign exchange loss/(gain) and deferred tax on fair value adjustments.

   4 There is no foreign conduit income attributed to this distribution.

6. Analysis of financial performance

   The Group's statutory loss after tax for the half year ended 31 December 2016 was $22.5 million. The following table summarises key reconciling items between the Group's statutory result and underlying profit5.

   3.1 Reconciliation between the Group's statutory result and	31 December	31 December
   underlying profit:	2016	2015
   $A'000	$A'000
   Net (loss)/profit attributable to stapled securityholders6	(22,445)	54,220
   Fair value adjustment to the unlisted investments	32	1,352
   Foreign currency translation impact on the fair value of the TKs	42,066	(23,959)
   TK operator share of TK distributions	26	44
   Fair value adjustments to investment property	(2,909)	(10,656)
   Fair value adjustments to interest bearing debt	(58)	2,843
   Gain on disposal of investment properties	(50)	-
   Expenses associated with TK refinancings	-	779
   Net foreign exchange loss/(gain)	4,368	(2,489)
   Deferred tax on fair value adjustments	(2,774)	(4,958)
   Underlying profit after tax	18,256	17,176

7. Net tangible asset backing per security

   31 December 2016	30 June 2016
   Net tangible asset backing per ordinary security	$7.68	$8.26

8. Control gained or lost over entities during the period

   N/A

9. Details of distributions

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

10. Details of distribution reinvestment plan

    The Distribution Reinvestment Plan will not be activated for the distribution for the half year ended 31 December 2016.

    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 or loss (representing investments in the TKs), and detailed in the segment reporting disclosure in Note 1. The adjustments between statutory profit after income tax and underlying profit are set out in table 3.1 (this reconciliation has not been audited in accordance with Australian Auditing Standards).

    6 All items in table 3.1 are as set out in Note 1 Segment reporting.

11. Details of associates and joint venture entities

    N/A

12. Accounting standards used by foreign entities

    Refer to the attached Financial Statements Note 8 Statement of significant accounting policies of the Interim Financial Report.

13. Independent audit review

14. The auditor's review report is attached to the Interim Financial Report which accompanies this appendix, and is not subject to a modified opinion, emphasis of matter or other matter paragraph.