Centro Properties Group, Australia's second-largest shopping mall owner, said Friday it lost 1.11 billion Australian dollars (US$1.05 billion; euro692 million) in the six months ended Dec. 31.
The poor result came amid its struggle to pay A$4.9 billion (US$4.6 billion; euro3 billion) in debt.
The Melbourne-based company blamed non-cash write-downs on goodwill, U.S. property values, and currency and interest rate hedging. In the same period the year before, it earned a net profit of A$157.6 million.
The company maintained, though, that it is sound operationally, with its problems relating to capitalization.
Centro's sales in the six months through December rose to A$255.8 million (US$242 million; euro159.4 million), up 46 percent from A$175.2 million a year earlier.
Chief Executive Officer Glenn Rufrano said Centro's managed portfolio of shopping centers was performing well.
"Centro's property-related results show that Centro does not have an operating issue," he said in a statement.
The company has twice been granted extensions from lenders to roll debt accumulated in a two-year, A$10 billion (US$9.5 billion; euro6.2 billion) spending spree that left it the fifth-largest mall owner in the United States.
Centro has proposed selling equity in two unlisted property funds in an effort to remain solvent. It has an April 30 deadline to present Australian banks and private U.S. lenders with a refinancing plan. U.S. banks have allowed it until Sept. 30.
For the last six months of 2007, Centro wrote down A$578 million (US$547 million; euro360 million) in goodwill on last year's New Plan Excel Realty Trust acquisition, A$278 million (US$263 million; euro173 million) on U.S. property revaluations, and other amounts related to the mark-to-market of financial instruments including currency and interest rate hedges, the company said.
Centro shares were down nearly 22 percent in afternoon trading at A$0.45.