Frasers Property set to see up to 70% fall in profit
Sign up now: Get ST's newsletters delivered to your inbox
Mainboard-listed Frasers Property (FPL) expects to report a decline of as much as 70 per cent in its attributable profit for this year.
Its profit guidance on the unaudited financial results for the financial year ended Sept 30 said that the pandemic and the resulting hit to the global economy have significantly hurt its overall performance.
The tenant-support packages that were given to the group's commercial and retail tenants, the decline in occupancies and temporary closures of its hospitality properties have dented its financials.
It also expects impairment and fair-value losses on some of its properties, primarily hospitality assets, it said on Tuesday.
Attributable profit is expected to fall by 60 per cent to 70 per cent this year from the $560.3 million recorded last year.
"The group has been taking proactive action to strengthen its financial position, including optimising cash flows and liquidity, reducing operational costs, and deferring uncommitted capital expenditure," it said.
"FPL has sufficient liquidity to meet its operations and financial commitments, and the group continues to maintain a high level of business and financial discipline."
The firm will release its results before the start of trading on Nov 11.
FPL shares closed down 0.85 per cent at $1.17 yesterday.
THE BUSINESS TIMES
