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Brixton has posted a 47% drop in adjusted net asset value (NAV) to 290 pence in its preliminary results for 2008, and abstained from making a dividend payout for the full year.

The UK industrial proeprty real estate investment trust (REIT) surprised market pundits by not unveiling a rights issue, something that had been widely expected following similar moves by other major UK REITS, Segro, Hammerson, British Land and Land Securities. The company’s share price has taken a beating in recent weeks over fears it would be left behind in the race among listed property companies to raise much/needed funds to deal with the downturn.

But Brixton shares were trading up 18.6% in early trading on Monday at 17.50 pence as its results were not as bad as feared.

Brixton's chairman Louise Patten said the company remained compliant with all its covenants but the balance sheet covenants of asset cover ratio and gearing were likely 'to come under pressure' given widespread expectations of further property value falls.

'As a consequence, the board is currently exploring a range of options to address this issue. These options include asset disposals, the formation of new joint ventures, renegotiations of our borrowing agreements, as well as a potential equity raising,' Patten said.

Brixton announced an IFRS loss of £767 mln (EUR 836 mln), or an IFRS loss per share of 283p. The main downward pressure came from the -27% re-valuation of its property portfolio, now £1.8 bn (EUR 1.96 bn). Net rental income rose 6.8% to £77.4 mln (EUR 84 mln).

The 2008 dividend was restricted to the 4.9 pence interim dividend per share which has already been paid.