Capital & Regional returned to profit with a figure of £17m in the second half of 2009, as conditions improved in the property market.
However, the improvement was not enough to push the company into the black for the full year.
C&R posted a pretax loss of £113m for the year to 30 December, compared with a-loss of £516m in 2008.
Chief executive Hugh Scott-Barrett said: “For much of the year, market conditions were challenging, and it was only in the fourth quarter that valuations in the UK funds began to recover some of the ground lost.
“We have extensive relationships now with Parkdev and AREA, which gives us firepower without resorting to the double gearing that got the company into some challenging situations a couple of years ago.”
C&R also suffered a significant fall in net asset value during the year, affected by falling values and its capital raising.
Basic net asset value per share at 30 December was 37p, compared with restated figures of £1.30 at 30 December 2008.
