Astro Japan Property Group says it will likely proceed with plans to sell its near $1 billion property portfolio into a new Japanese-listed property trust despite only steady economic growth in the country and global volatility.
Addressing the annual general meeting Astro chairman Allan McDonald said the Japanese government had only managed a small improvement in its attempts to stimulate economic activity and would closely monitor the ASX-listed group's options.
"The longer term outlook for the group is of course influenced by the success of the Japanese government's strategy to stimulate the Japanese economy, which so far has produced only modest improvements in the face of a sluggish global economy," Mr McDonald said.
"Directors believe that Astro's continued strong liquidity position and both recent and long-term return outperformance vs the A-REIT index, dictate that attempting a J-REIT transaction should only occur with some certainty over execution risk and security holder benefit."
Ready to act
"Accordingly, examination of this potential option will continue and updates will be made promptly if there is any substantial development."
Astro achieved an increase in net property income on a like-for-like portfolio basis of 4.9 per cent in fiscal 2016.
The portfolio revaluation uplift, together with strengthening of the Japanese yen, resulted in an increase in net tangible assets of 28.3 per cent to $8.26 at June 30 2016.
Astro senior adviser Eric Lucas said: "Further acquisitions and dispositions remain under consideration."
