Terrace Hill Group’s EPRA net asset value per share has dropped 23.9% to 25.4p as the firm fell into the red.
The fall in share price in the year to 30 September is attributed to losses incurred through residential sales during the period.
During the same period, the developer made a loss before tax of £10.2m, compared to a £17.9m profit in the year to 30 September 2010.
Terrace Hill said it would dispose of its residential arm over the next 12-18 months.
The company said: “We have decided to reflect the discounted prices we are likely to achieve on sale by changing the basis of valuation of the properties from their individual vacant possession value, to their discounted investment value which we now consider to be more appropriate.”
The investment and development group also reported balance sheet gearing reduced to 95.1% from 127.6% in the previous year. Net debt was also reduced to £51.4m from £90.7m.
Robert Adair, Terrace Hill chairman, said: “We believe that the greatest potential for the business lies in focusing on our key strengths of commercial property development and trading, and as we execute this strategy, I remain confident we will perform well over the medium-term and add value to the business for our shareholders.”
He added that the foodstore business is maturing well with the committed programme of development now standing at 652,000 sq ft, with a projected end value of £240m.
joanna.bourke@estatesgazette.com
