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RECORD Realty, the Allco-managed property trust, has plunged into the red, posting an interim loss of $32,728 compared with a $547,000 profit a year ago.

The trust, which is undertaking a strategic review, last week pulled its interim distribution.

Its share price held ground yesterday, dropping just half a cent to close at 30c. Last Thursday its shares plunged 37 per cent, wiping nearly $78 million off market value, after Record said it was unable to pay a half-yearly distribution due to the foundering sale of a Brisbane office building.

One analyst said the main issue facing Record was its 82.3 per cent gearing level. "The business model depends on values going up to support the debt, and values aren't going that way," he said.

Debt reduction is expected to be the key element of Record's strategic review.

The group could also consider privatisation. "But who would buy them," said the analyst.

Record, which owns Australian, German and US properties, had total assets of $2.2 billion against total liabilities of $1.8billion at December 31.