dont understand?, page-4

Yes most LPTs do operate this way. Australian LPTs have traditionally attracted investers through high dividends, they aim to pay out all their regular profits.

Foreign exchange losses are once off and offset by asset gains anyway. That is why they aren't included. You will notice that they remove any gain(loss) in property values from the calculated profit. So if property values fall then this won't affect the dividend payouts.

LPTs aim to maintain high leverage so they pay out profits. What happens if property prices drop? Bad stuff. They have grown out of a boom market and truth be told they are designed for a constantly booming market. If property prices drop they need to decrease leverage fast through equity raising or asset sales.

In my opinion the Japan is much more insulated from a property down turn that most developed nations. Japanese property is coming off multi decade lows in 2006. Australia most certainly is not.