Capital & Regional saw adjusted net asset value per share plunge by 21% to £10.08 for 2007. Financial Times

Even so, the results mostly beat analysts’ forecasts, which had been pricing in steeper falls in property values and lower earnings growth. The shares rose 45.5p to 553p.

The company’s property portfolio lost 10% of its value owing to the widespread downturn in the industry last year, and it warned there could be more valuation losses to come.

The company reported a loss of £167m for the year, down from a profit of £251m for 2006, following the drop in property valuations. Assets under management fell 6% to £6.1bn.

The fund manager said it had been forced to pay back £53m in performance fees to investors because it had under-performed in 2007, with one of its funds, the Junction, reporting a geared return of minus 34 per cent, compared with a positive return of 18.3 per cent in 2006.