Argosy Property Trust's books have fallen sharply into the red as it was hit by major restructuring costs.
Earlier this year, the property investor controversially paid ANZ Bank subsidiary OnePath to end its management contract and bring it in-house.
Argosy says writedowns and $500,000 in costs incurred from an unsolicited merger proposal by DNZ also dented the bottom line.
It lost $20 million in the six months to the end of September compared with a $6 million profit in the same period in 2010.
Distributable income fell from $19 million to $15.6 million.
Argosy's chief executive Peter Mence says internalised management should result in significant savings in the second half of the year and improved occupancy should also boost earnings.
Meanwhile, Mr Mence says a proposal to corporatise Argosy from a unit trust into a listed company is now well advanced and is expected to be presented to unitholders early in 2012.
