St Modwen Properties PLC (LON:SMP) said the value of its assets dropped by almost 13% as it wrote down the value of two residential sites in Wales.
The FTSE 250-listed group said half-year losses for the period to May 31, 2020, after the write-downs amounted to £134.5mln (2019: £23.1mln profit).
Net assets per share fell to 423.2p from 484.2p and the company reduced its interim dividend to 1.1p from 3.6p per share.
Broker Liberum Capital said the valuation write-downs were higher than expected but the company's balance sheet remains strong with a loan-to-value ratio of 28% and £157mln of available cash.
Volumes at St Modwen Homes were 32% lower year-on-year, but pricing has held firm since lockdown restrictions eased, added the broker, which reduced its price target for St Modwen shares to 450p from 485p but kept a 'buy' rating on the stock
Shares rose 1% to 359p.