Lendlease, which has development, construction and investment management arms, suffered a bottom line loss of $749 million in the year ended June 30.
That was a major turnaround from a $225 million net profit in the previous year.
"This is obviously a disappointing outcome," Lendlease chief financial officer Andrew Nieland told an earnings briefing on Monday.
Buyers were being careful in the current market environment, chief investment officer Penny Ransom said.
"It's fair to say, with the uncertainty that is in the market, buyers are taking more time to consider their their transactions," she told analysts.
"But what that also brings is a real focus on quality."
It has been more than two years since Lendlease began selling off its construction units in the UK, US and Canada to focus on its Australian business, but the massive restructure continues to weigh.
The group posted an operating loss of $567 million, which included a positive $233 million contribution from investments, development and construction.
It also booked an $800 million loss from its capital release unit, which was designed to ring-fence and sell off Lendlease's offshore operations and projects.
The overall loss means Lendlease will not pay a final distribution for the period, leaving the full-year distribution at 15.7 cents per share.
Some shareholders opted to vote via the sell button, sending its share price more than nine per cent lower to $2.93.
Still, Mr Nieland was optimistic about the group's future as the restructure continued.
"Lendlease's depth of capability across the real estate spectrum provides us with a strong competitive position that supports a positive outlook for the group," Mr Nieland said.Â
"We will remain disciplined with our capital allocation decisions and focused on creating long-term value and sustainable returns for our security holders."
Positive signs included cost-cutting, with net overheads slashed from $466 million in the 2025 financial year to $363 million, a 22 per cent reduction.
The largest contributor to the improvement was an $84 million reduction in net employee overhead.
"With the full benefit of cost action still to be realised, we have entered financial year 2027 with an exit run rate or net overhead of $350 million, in line with our prior targets," Mr Nieland said.
The result came as incoming chief executive and former AustralianSuper executive Nick O'Neil prepares to take the reins, following Tony Lombardo's departure earlier in August.
