Brixton hit by challenging market

By Matthew Scuffham

LONDON (Reuters) - Brixton (BXTN.L) reported an 18 percent decline in net asset value in the first half as a more challenging commercial property market, the credit crunch and slowing economies pushed the property firm into a sizeable loss.

Shares in the industrial real estate specialist fell 5.1 percent to 235-1/2 pence by 10:10 a.m., lagging a 2.7 percent fall in the FTSE 350 Real Estate Index .FTNMX8730.

Brixton's adjusted net asset value was 448 pence at end June, compared with 545 pence at the end of December.

Cazenove analysts said that was 3 percent below its forecast and added the uncertainties in the sector and possibility of further NAV downgrades meant the shares do not look good value.

"We see the shares falling back again possibly towards their recent low of 208 pence, as the sector overall gives back some of its recent rally," Cazenove said in a research note.

Brixton, which owns or manages over 19 million square feet in more than 1,300 units, reported a loss before tax of 236.7 million pounds , compared with a pretax profit of 191.7 million pounds in the previous year.

The total value of its portfolio fell by 10 percent to 2.2 billion pounds.

Investment profit fell by 3.9 percent to 22.3 million pounds. Brixton considers this to be the true measure of its recurring profits as it said pretax profit is distorted significantly by downward valuations.