British Land has posted a full year pre-tax loss of almost £4bn.

British Land announced today (21 May) its full year pre-tax loss had widened to almost £4 billion, eclipsing the £2.9bn expected by City analysts.

One of the UK’s largest Real Estate Investment Trusts (REIT), the company revealed its full year results to shareholders, which included a 64% drop in the Net Asset Value (NAV) per share to 398 pence.

As other property companies such as Land Securities announce similar trends, it is clear that the worsening state of the global economy has continued to push down valuations and affect rental income.

British Land’s net loss for year to 31 March of £3.88bn compares with a loss of £1.56bn a year earlier – so almost double - and the value of its portfolio has fallen by 28.2%.

The group’s portfolio is almost equally divided between retail warehouses or malls and office buildings, with most of its office buildings located in the City of London.

British Land - which carried out a £740m rights issue earlier in the year - said that the impact from the “extreme financial stress” had impacted the business, as it has with many other companies.

Chairman Chris Gibson-Smith said: “Against a backdrop of difficult market conditions British Land’s operational performance has shown resilience.

Our activities have been decisive, including the Rights Issue, looking to secure the Company’s position and preserving its options for the future.

“Our sights are now set firmly on the next stage of the course and on maximising the benefits of our relative strength. Whilst caution remains our master, we are well-focused on the opportunities we now expect to unfold.”

British Land paid a full year dividend of 29.8p, up slightly ahead of the prior year.

Shares were down 6.7% at 386.25 pence at 11.20am.