reason for hedges - jid

JID, re your question, the main reason is that BJT is listed in ASX and has to paid out AUD in distribution while it is earning JPY from its Japanese property and therefore it is subjective to swings in AUD/JPY exchangre rate. By hedging AUD/JPY for the next few years, it has locked in the rates that it could convert JPY into AUD over the next few years.

Given they have effectively locked in the rates up to Feb 2012 for distribution, in terms of working out distribution guidance, they only need to worry about their JPY rental income which should be relatively stable. The whole idea is just to take out as much uncertainty as possible.

Imagine if there is no hedges in place, BJT's distribution would be up and down every 6 months due to exchange rate.