Regional developer St Mowden has said it sees "important signs of improvement" in the commercial property market despite announcing £119m losses.
The firm, which is behind the regeneration of Skelmersdale town centre, posted pre-tax losses of £119.4 million for the year to November 30, up from £73.1 million the previous year.
But, it added that prices had stabilised after a 20% decline in assets over the year, and predicted a return to profit growth despite uncertain market prospects and "fragile" business confidence.
St Modwen is working on town centre regeneration schemes in Farnborough, Skelmersdale in Lancashire, and Wembley, north London, as well as large-scale renewal projects such as the former Llanwern steelworks in South Wales.
Shares in the Birmingham-based firm rose on Monday after it also grew rental income in "very challenging" conditions, with asset sell-offs and tenant failures more than offset by new lettings and income from newly-completed developments.
