IMMOFINANZ AG, the company that controls Austria's largest property developer, yesterday reported a loss for the first quarter as the value of its real estate fell.

The net loss for the three months ended July 31 was 74.5 million euros (US$109 million), or 11 cents a share, compared with a profit of 93.6 million euros, or 20 cents, a year earlier, Immofinanz said.

The value of the Vienna-based company's assets would fall by as much as 400 million euros this year as a result of delayed or canceled projects and property sales, according to Bloomberg News.

Real estate transactions have become harder and more expensive to finance, causing prices to decline. Immofinanz owns more than 3,000 office buildings and other real estate in central and eastern Europe, as well as 54 percent of Immoeast AG, a bigger Austrian developer.

"Global finance is facing the most difficult crisis in decades," Immofinanz said. The company said it planned measures including "the selective sale of properties from the portfolio and a reduction of our development activities."

Immofinanz was unchanged at 3.03 euros yesterday in Vienna trading. The stock has plunged 56 percent this year, valuing the company at 1.39 billion euros.

The Bloomberg European 500 Index has dropped 14 percent during that time.