Frasers Property expects ‘significant’ drop in H1 earnings on fair value losses, impairment

FRASERS Property is expecting to report a “significant decrease” in net profit for the first half of its current fiscal year ended Mar 31 compared with the corresponding prior year period, the company said in a filing to the bourse on Tuesday (Apr 9). 

The company added that it is currently reviewing the valuations and assessing the carrying values of its portfolio of properties as at end-March. 

Based on preliminary results, Frasers Property said it expects to record fair value losses and impairment, chiefly on certain commercial properties in the UK. 

These losses and impairment are non-cash in nature, the group said, and came about mainly due to “weaker market sentiments”. 

Frasers Property said it will announce its unaudited H1 financial results after trading hours on May 10. 

Shares of Frasers Property rose 0.6 per cent or S$0.005 to end Tuesday at S$0.85, prior to the profit guidance announcement.