Terrace Hill has reported that the end value of its property developments has dropped by about 15% owing to the ongoing price correction in the market. Financial Times

The Aim-listed developer reassured in its full year results yesterday that it was well-positioned for difficulties in the property market because of the defensive nature of its development business.

The company posted a 13.8% rise in triple net asset value – a key measure that takes into account property revaluation, share dilution, deferred taxation and goodwill – to 83.7p a share, which it attributed to growth in property values in the first half of last year and uplifts in the value of its developments through planning consents and lettings.

The company’s pre-tax profit for the year to October fell from £25.8m to £18.1m. Its target remains to increase underlying triple net asset value, as adjusted for dividend payments, by at least 20% a year.

The company’s commercial property development programme has a projected end value of £1.3bn, which Philip Leech, chief executive, said had dropped about 15%, in line with losses elsewhere in the market.