British Land has suffered a £1.3bn IFRS fair value loss on the back of the credit crunch.

The FTSE 100 giant said in its third quarter report to 31 December that the reflected a pre-tax IFRS loss on ordinary activities.

The loss comes as a consequence of IFRS fair value requirements relating to its investments. For the same period in 2006, the company made a £381m profit.

Because of the value decline, its gearing jumped to 45%.

British Land chairman Chris Gibson-Smith said: 'Macro-economic uncertainty and the global credit crunch have depressed property values. However, the worst should now be behind us, though uncertainties remain on timing and extent of the correction.'

Further reading:

Fair value shockwaves far from over