Frasers Property warns of significant fall in profit for 2023 but expects to remain in the black 

FRASERS Property expects to report a significant drop in attributable profit for FY2023 following fair-value losses on some of its investment properties. 

The group said that it is in the process of finalising valuations but based on preliminary results, it is expecting fair-value losses primarily on its commercial properties in the United Kingdom and industrial and logistics properties in Europe. 

“Nevertheless, the group’s overall business performance and core operating earnings have not been significantly impacted as compared to the previous financial year, and the group expects to remain profitable for FY2023,” Frasers said on Thursday (Oct 12) in a profit guidance that was filed with SGX.

It is expected to release its unaudited financial results for the full year on Nov 10 after the market close. 

In its third-quarter business update released in August, Frasers noted that Europe continues to face headwinds due to the ongoing war in Ukraine, manpower challenges, higher energy costs as well as inflationary pressures.

For FY2022, Frasers posted a net profit of S$871.4 million, 12.4 per cent higher than the previous year, due to the resumption of international travel as well as contributions from residential projects in Singapore and Thailand.

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Shares of Frasers Property closed flat at S$0.81 on Thursday.