Development Securities expects that sales will help it deliver a strong performance this year following a subdued set of results for 2011.
The listed investor and developer saw its net asset value drop by 6% to 256p a share as it slid into the red, posting a £10.2m loss for the 14 months to the end of February. This compares with a £2.6m profit at the same time the previous year.
The fall was driven by a £4.7m drop in the value of its £237.9m investment portfolio and a £2.8m impairment in its serviced office division.
DevSec said its strategy of realising gains through buying and converting secondary assets into prime stock will add significant value for shareholders in the near-term.
Following its two £100m capital raisings in 2009 and 2010, the group has invested £163m in 40 assets, including 17 that were acquired during the period.
The group has gearing of 58.9%, up from around 30% in 2010, and a weighted average debt maturity of 8.4 years.
