UPDATE 1-Quintain FY NAV tumbles, losses spiral

* Net asset value falls 40.4 pct to 348 pence

* Records pretax loss of 129.1 million pounds

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LONDON, June 4 (Reuters) - Quintain Estates & Development (QED.L), the central London redevelopment specialist, posted a 40.4 percent fall in its full year net asset value, dimming hopes of an imminent end to Britain's property market turmoil.

Quintain said the slump -- which marks its second anniversary this month -- had cut its NAV to 348 pence per share and inflicted a pretax loss of 129.1 million pounds in the year to end-March.

Despite the sharp correction in the value of its assets, Quintain recorded a total return at the property level of minus 22.5 percent, compared to a minus 25.8 percent benchmark total return. It also grew gross rental income to 45.1 million pounds from 41.2 million pounds last year.

"Global economic conditions had an unprecedented impact on the property sector during the financial year, prompting the steepest valuation declines on record for the sector in general and, inevitably, Quintain," Chief Executive Adrian Wyatt said.

Last week, trade body Investment Property Forum said its members were predicting a 21.6 percent fall in commercial real estate prices in 2009, worse than a 17.9 percent drop forecast in March. [ID:nLT126285]

Quintain shares have shed around 86 percent of their value in the past year as debt worries and fading demand slammed the brakes on its lucrative development pipeline.

It remains one of a handful of UK property firms yet to ask shareholders for new funding after selling properties and negotiating amendments to loan terms endangered by the 40-percent plus dive in average UK commercial property values.

Quintain said its cash conservation programme has returned 97.5 million pounds to the company over the year.

It has extended its gearing limits -- its net debt to net equity -- to 150 percent from 110 percent to offset falls in property values. It cancelled its full year dividend in line with strategy announced last year.

(Reporting by Sinead Cruise)

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