Develica Deutschland, the AIM listed German property investor, revealed a net asset value fall of 28% to 70.07 cents (55.4p).

In its results for the year to 31 March it revealed net asset value per share declined from 97.82 cents (77.4p) and it reported a pre-tax loss of €63.3m (£50.1m) reflecting valuation write-downs.

It said it would not pay further interim dividend in a bid to preserve cash.

Due to the current turmoil in the financial markets it also revealed it had breached its loan to value convenants. But it said it had entered negotiations which have led to a ‘satisfactory outcome culminating in the breach being fully rectified.’

It also said since its year-end the fair value of its currency swaps shows a profit of €7.5m (£5.9m).

Derek Butler, chairman: 'The next 12 months are likely to be challenging, and with that in mind the board continues to review its options to add shareholder value, but in the meantime we have the benefit of both robust cash flow and high quality assets.’

Following the year-end valuation it said the average loans to value stood at 84.9% compared to an average loan to value covenant of 88.1% across the portfolio agreed with the banks on acquisition.

In the year the fund became totally invested reaching €1.065bn (£842m).

The portfolio now comprises 103 properties and more than 500 tenants. And its investment portfolio generates a gross annual income of around €70.4m (£55.7m)