Developer British Land has posted its first loss for 20 years on falling commercial property values.
The company, which is the biggest developer in London, recorded a loss for the year of £1.56 billion compared to a £2.45 billion profit last year.
Net income from rent was flat at £561 million, while income from fees fell to £70 million from £83 million last year.
Overall, property values fell from £14 billion in 2007 to £10.5 billion in 2008.
The decline in property values continues but has slowed in 2008 to date, the company said in its statement.
British Land said there are increased signs of investor interest at current levels; however, sentiment remains volatile.
Chief executive Stephen Hester said: "In 2007/8 British Land's portfolio outperformed the property market indices, benefiting from attractive rental growth.
"Nevertheless values fell, driven by broader market turbulence. We remain in a stressed economic and market environment.
"However, British Land has never been in better shape to weather the downturn and emerge with growth prospects intact or even enhanced. The anchor of our business - strong, secure cash flow, exceptional balance sheet security - is firmly in place."
Although net asset value dropped 20 per cent, analysts had been predicting worse, and British Land gained 6p, or 0.8 per cent, to 794 pence at 8:20 BST in London.
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