Yorkshire based contractor and developer Henry Boot has posted a £12m loss for the year ending 31 December 2009. In 2008, the firm made a £19m profit.
Turnover fell to £117m, compared to £194m in 2008, a 40% fall.
Henry Boot also had to write down the value of its investments by £22.4m.
However, the firm managed to sell development at Waterloo Square in South Shields for £11.5m, even though it had been valued at £9m at the end of December.
Henry Boot chairman John Reis described the results as "solid" considering "the difficult market conditions in the UK property market during the period".
He added: “The first half of 2009 was characterised by decreasing investment yields, however, the second half has seen some stabilisation, with yields even firming up slightly towards the end of the year.
“There are some indications that the recent stabilisation and initial recovery in valuations may allow certain prime developments, with a substantial pre-let line up of good quality tenants, to progress.
“However, we remain very cautious and will focus on those developments where we have already invested in site values or those which are demonstrably commercially viable in today’s market.”