CapitaLand Limited has guided that its operating PATMI is expected to drop by 20% to 30% from $1.06 billion recorded in the FY2019 ended December.

Cash PATMI, which comprises operating PATMI and portfolio gains is expected to reduce by 35% to 45% from the $1.49 billion in FY2019.

The company also expects to recognise fair value losses on a portfolio of the group’s portfolio of properties, as well as impairments on certain residential projects and equity investments.

According to CapitaLand, the company’s share of fair value losses is expected to range between $1.55 billion to $1.65 billion compared to a gain of $674.8 million in FY2019.

SEE: CapitaLand Limited launches 2030 sustainability master plan, aims to triple its sustainable finance portfolio to $6 bil

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The fair value loss represents about 4.7% of the group’s investment properties portfolio value.

The company also expects to recognise higher impairment losses between $800 million to $900 million in FY2020, compared to $31.6 million in FY2019.

The fair value and impairment losses are non-cash in nature, and are primarily attributable to the events related to the Covid-19 pandemic.

As a result, the company expects to report a loss for FY2020.

However, it adds that cash PATMI for FY2020 is expected to be “healthy” and that shareholders may continue to receive dividends for the FY2020.

CapitaLand will be releasing its FY2020 results on the morning of Feb 24.

Shares in CapitaLand closed 5 cents lower or 1.4% down at $3.40 on Jan 22, prior to the announcement.