Development Securities revealed a small drop in its net asset value in its half-year results due to the sharp slowdown in the investment market.

In an announcement to the Stock Exchange this morning, DevSecs said that NAV had fallen from 568p a share to 566p in the first half of the year.

Pre-tax profits fell 94% to £500,000.

David Jenkins, chairman of Development Securities, said: 'The reduction in earnings compared to the previous financial year reflects the significant slow down in total returns achieved in the investment property market.

‘However, we continue to believe that attractive returns are available in the property development business.’

Jenkins said the slowdown in the investment market would see DevSecs focus on its development business.

‘The emphasis of our earnings profile in the next few years will undoubtedly shift from investment returns to gains generated from our active development programme,’ he said.

The company is due to complement the first phase of its PaddingtonCentral scheme, the 252,000 sq ft One Kingdom Street, at the beginning of 2008. It said its 73,000 sq ft pre-let to Misys indicates that the balance of the building will be let at or above £55/sq ft.