Assets increase but lower rent levels and £100m return of shareholders equity reduces profit.

Developer Helical Bar has grown the value of its assets by 30%, yet seen profit fall by £7m in its year end results.

The firm, which is developing a major scheme at London's White City, grew its net asset value by 30% but pre-tax profits have slipped from £64.7m to £57.1m for the year ended 31 March. It blamed lower rent levels and a £100m return of shareholders' equity for the profit fall.

The valuation of Helical's investment properties increased 17.3%.

Chairman Giles Weaver foresaw a slowdown in property returns.

He said: "After a terrific run we believe that the rate of yield compression will slow and property returns will not be sustained at the exceptional level of recent years. However, we believe our ability to outperform and provide good returns for our shareholders will continue."

Helical Bar also announced that non-executive director and chairman John Southwell would step down at the 2006 AGM.