Frasers Property profits expected to sink 70% for FY2020

The company announced significant impacts by COVID-19.

Frasers Property Limited announced that it has been hit hard by the coronavirus pandemic and is expecting major loss of profit for FY2020.

According to Frasers profit guidance, the expected loss is up to 60% to 70% from the $560.3m recorded in the financial year ended 30 September 2019.

Tenant support packages, international travel restrictions, decline in occupancies, and temporary closures of hospitality properties dealt a huge blow against them, the report said.

“While the Board considers it prudent to draw the attention of shareholders and potential investors of FPL to this information, the overall business and financial position of the Group remains healthy. The Group has been taking proactive actions 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,” said Frasers.

Frasers’ Unaudited FY2020 financial results will be released before the start of trade on 11 November.