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19 June 2009

DISTRIBUTION FOR PERIOD ENDING 30 JUNE 2009

Babcock & Brown Japan Property Trust (ASX: BJT) today announced the
following in respect of its estimated distribution for the six month period ending 30
June 2009:

Estimated distribution 5.0 cents per unit
First date on which units will trade ex-distribution 24 June 2009
Record date 30 June 2009
Estimated payment date On or about 28 August 2009

This takes the total distribution for the 12 month period ending 30 June 2009 to
9.0 cents per unit.

Mr Allan McDonald, Chairman of Babcock & Brown Japan Property Management
Limited, the Responsible Entity of the Trust said, “It has been a positive and
transformational 12 months for BJT reflecting the internalisation of its
management rights and the steps taken to strengthen its capital position.
Considering the challenging global economic conditions and the one off payments
related to the internalisation of the Trust’s management rights, the Board views
the payment of a 9 cent per unit total distribution for the 2009 financial year a
satisfactory outcome.”

For the 12 months ending 30 June 2009, net operating cashflow is expected to be
approximately 12.5 cents per unit compared with the forecast of approximately 13
cents per unit made at the commencement of the period. After allowing for the
payment of the June 2009 half distribution and including the proceeds from the
sale of Shinjuku Sanei, BJT’s net free cash position as at 30 June 2009 is
expected to be approximately A$63 million (12.5 cents per unit).

BJT’s continuing discussions with its foreign exchange hedge counterparty are
expected to be completed shortly. The estimated distribution for the period takes
into account the expected range of outcomes.

Mr Eric Lucas, Senior Advisor to the Board said “Net operating cashflow of
approximately 12.5 cents per unit reflects a solid performance considering the
For the 12 months ending 30 June 2009, net operating cashflow is expected to be
approximately 12.5 cents per unit compared with the forecast of approximately 13
cents per unit made at the commencement of the period. After allowing for the
payment of the June 2009 half distribution and including the proceeds from the
sale of Shinjuku Sanei, BJT’s net free cash position as at 30 June 2009 is
expected to be approximately A$63 million (12.5 cents per unit).

BJT’s continuing discussions with its foreign exchange hedge counterparty are
expected to be completed shortly. The estimated distribution for the period takes
into account the expected range of outcomes.

Mr Eric Lucas, Senior Advisor to the Board said “Net operating cashflow of
approximately 12.5 cents per unit reflects a solid performance considering the

softer operating conditions being experienced in Japan. Our asset management
team continues to focus on the operational performance of our portfolio and we
continue to seek opportunities to proactively manage our capital position and
property portfolio to maximise long term value for Unitholders.”

The Board’s intention is to maintain a consistent level of distributions to its
Unitholders to the extent possible within the bounds of a responsible capital
management programme.

Taxable Income

For the 12 months ending 30 June 2009 the Trust’s taxable income is expected to
be approximately 19.5 cents per unit. The Trust estimates that the foreign tax
credits arising from the payment of withholding tax in Japan and available as a
credit against Australian tax payable by Unitholders for the 12 months ending 30
June 2009 will be approximately 2.5 cents per unit.

The Trust’s expected taxable income is in excess of the distribution for a number
of reasons, including:
• In August 2008, BJT realised an A$18.8 million taxable profit on the
monetisation of the Trust’s capital hedges
• In April 2009, BJT secured a A$7.7 million discount on the 2006 Trust
Performance fee
• In May 2009, the Shinjuku Sanei office property was sold for an Australian
taxable profit of approximately A$16.7 million.

Full details of the tax components of the distribution will be provided to
Unitholders in the Annual Tax Statement to be mailed in August 2009.

Distribution Reinvestment Plan (“DRP”)

BJT also confirmed today that the DRP will not be in operation for the distribution
for the six months ending 30 June 2009.