The company, now part of Urban&Civic following a complex reverse takeover deal earlier this month, said it was a "quiet" trading period in the six months to March 31 which resulted in revenue dipping from £38.8 million to £10.4 million.
Terrace Hill, which had its registered office in Edinburgh and was founded by oil entrepreneur Robert Adair, recorded an £9.7 million pre-tax profit for the same period in the previous financial year.
It said: "Management took the opportunity to exit two sites at amounts below their previous carrying value where they believed the opportunity for future gains was limited."
However the company highlighted the planning consents received for a 125,000 square feet Sainsbury's supermarket on Teeside and progress on a major leisure developmentin Darlington.
A student accommodation development in Southampton is expected to complete ahead of the start of the next academic year while Dsquared2 has taken space in London for its UK headquarters.
The results did not include the Urban&Civic business but the company said it continued to work on major developments in nearby Cambridge and Rugby.
Urban&Civic executive chairman Nigel Hugill said the integration of the two businesses was going well.
He added: "I would like to express my personal thanks to the Terrace Hill board particularly Robert Adair who has relinquished control over a company he founded nearly 20 years ago."