Construction and property group Lendlease expects to declare a full-year statutory loss of $230 million to $340 million, compared to a $467 million profit last year.
Lendlease said exiting its engineering business will cost it around $550 million, the high end of previous estimates, while COVID-19 has reduced the value of its $4 billion investment portfolio by around $130 million to $160 million.
The company said its full-year core profit after tax, not including the engineering impacts, would be $50 million to $150 million.
It said that Lendlease Corporation wouldn't declare a final dividend this year, although the trust that owns its property portfolio should pay a small distribution.
"Obviously it's been a tough year, and clearly COVID's had a significant impact," chief executive Steve McCann told analysts on a conference call.
Lendlease said that COVID-19 has delayed a number of its urbanisation projects including the Melbourne Quarter, Barangaroo and International Quarter London, as well as a number of construction projects overseas.
The company said it had agreed to sell a 25 per cent stake of One Sydney Harbour, its under-construction 72-storey residential tower in Barangaroo, to Mitsubishi Estate.
Lendlease didn't disclose the purchase price but said the sale would contribute to about $100 million profit after tax in FY21.
Lendlease said the sale of its engineering business to Spanish conglomerate Acciona for $180 million should complete early in fiscal 2021.
The company said it enters FY21 with gearing expected to be below 10 per cent and total liquidity of more $5 billion, representing cash on hand and undrawn debt facilities.
"We've done everything we can to progress transactions despite the external environment, and to put us in a position where we go into FY21 with a lot more clarity on where we're headed," Mr McCann said.
"We are in a position now with very strong liquidity, and going forward into FY21 and beyond, we believe there will be significant opportunity to invest our capital in attractive returns."
At 1250 AEST, Lendlease shares were down 1.8 per cent to $12.13 each.