When chief executives start quoting Bob Dylan lyrics you know things are bad.

Tim Wheeler, head of warehouse owner Brixton, today used the “apolcalypic opening lines” of All Along the Watchtower to “capture the mindset” of the beleaguered property market.

“There must be some way out of here,” said Wheeler, echoing Dylan, in one of the more extraordinary statements to the stock market since the start of the credit crunch.

It came as Brixton plunged into losses of £236.7 million for the first half compared with a £192.3 million profit in the same period last year.

The value of Brixton's properties, including large warehouses around Heathrow, fell 10% between January and June, having tumbled 6.2% in the second half of 2007. Net asset value per share — a key measure for property firms — fell 17.8% to 448p.

“The issue now is how much further could property values fall,” said Wheeler, who warned defaults among tenants was rising.

“As we anticipated, the commercial property market has become more challenging in response to the credit crunch and slowing economics. There is confusion — and an element of denial — over direct property pricing due to lack of transactions.

“Ultimately, the real way out of here will be when the economy, the finanical world and the markets stabilise. However, in the near term, distress should bring opportunities and we are well placed to look to capitalise on these.”

Rents were up in the first half of the year despite falling property values and Brixton has raised the interim dividend 2.1% to 4.9p.