Its underlying pre-tax profit came in at £144 million, but a £1.42 billion valuation write-down meant a pre-tax loss on ordinary activities of £1.33 billion.
Despite this the dividend for the three months to September was up by 7 per cent to 9.375p per share, making 18.75p for the first six months.
Chairman Chris Gibson-Smith said: "Against a backdrop of heightened stress in the markets British Land continues to operate well. While values have been marked down reflecting further softening in prime yields, our high occupancy levels and long leases, plus a diversity of tenants and industries, ensure cash flow security.
"Coupled with our robust finance structure, these are significant areas of strength."
In August the company halted the development of its landmark City of London 225m-tall skyscraper nicknamed 'the cheesegrater' due to a sharp fall in demand for commercial office space and rising construction costs.