BLACKROCK INTERNATIONAL Land, the property spin-off of fruit importer Fyffes, has reported a pretax loss of €78.8 million for 2008, compared to a profit of €13 million a year earlier.

Although the group’s gross rental income increased by 14 per cent to €17.9 million, the value of its property portfolio fell 23 per cent last year to €340.3 million,

The strengthening of the euro against sterling had a further negative impact of €5.7 million. “The decline in the property markets in 2008 reflects the impact of the economic downturn,” commented chairman Carl McCann. The group’s market capitalisation has fallen significantly below its net asset value (NAV) as a result, he added – the NAV per share fell by almost 35 per cent to 25.71 cent.

Property prices are unlikely to rise until the supply of credit in the sector increases and market confidence re-emerges, the group said, so the board is focusing on areas it can control – such as reducing costs and maximising rental income.

It expects to have sufficient resources to meet its ongoing finance requirements. Nevertheless, in recognition of potential for further falls in property values, the board is discussing a new three-year facility with its lenders to “strengthen the group’s financial position”.

In a note yesterday, Davy stockbrokers said the increase in gross rental income highlighted the underlying strength of the business, but it predicted the NAV per share will fall to 17 cent this year.

Despite reporting a loss, Blackrock’s share price rose by over 14 per cent on the IEX junior stock market yesterday. However, it is trading at very low levels, so this equated to an increase of less than one cent, and it closed at four cent.