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Frasers Property expects FY2020 attributable profit to drop 60%-70%
MAINBOARD-LISTED Frasers Property Ltd (FPL), hard hit by the pandemic, expects to report a decline of as much as 70 per cent in its attributable profit for FY2020.
The company, in a profit guidance on Tuesday on the unaudited financial results for the financial year ended Sept 30, said the novel coronavirus pandemic and the resulting subdued global economic environment have significantly hit its overall business 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.
Also, it expects impairment and fair-value losses on a portion of its portfolio of properties, primarily its hospitality properties.
Thus, Frasers' attributable profit is expected to reduce by 60 per to 70 per cent year on year from the S$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. 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," it said.
The company will release its financial results before the start of trading on Nov 11.
The counter was one Singapore cent lower at S$1.18 when market closed on Tuesday.