Commercial property landlord DNZ Property Fund's losses have widened as it paid a deferred tax bill and a fee for ending its management contract.
The company, which listed on the stock exchange nine months ago, reported an after tax loss of $35.1 for the year to the end of March, compared with a loss of $15.5 million the previous year.
Excluding one-off items, DNZ's distributable profit rose 13.8% to $21.9 million.
The company's chief executive, Paul Duffy, says the firm's underlying performance is sound, with property occupancy at 98% and the share price up 28% since listing.
Mr Duffy says DNZ's office and retail properties lost a combined $11.8 million, or 2%, in value - most of which it says is due to "readjustment in terms of supply and demand" in the Wellington office market.
He says the past year has been challenging, but DNZ has performed well and is well placed to take advantage of opportunities, such as its proposal to merge with Argosy.
DNZ thinks a merger would be more beneficial than Argosy's plan to bring the management of its portfolio in-house.