REA Group Limited (ASX:REA) is expecting to see a non-cash impairment charge of about $180 million (pre and post tax) for the financial year ending 30 June 2017.
The online real estate marketer says, the impairment relates to carrying goodwill for its Asian segment and reflects the downturn in Asian property markets, on the back of government and banking regulations.
Despite the impairment, REA says it will not impact its current trading or compliance with its banking covenants.
The company’s final dividend for FY2017 will be based on the groups NPAT, excluding the $180 million impairment charge and the $161.6 million profit from the sale of European operations.
Shares in REA Group Limited (ASX:REA) are trading 1.79 per cent lower to $66.75