NAMA has reduced the amount it expects to get from loans by €1.27 billion in its latest set of accounts.
However, the agency says it made a profit and it believes that property prices in Dublin have stabilised.
In its second annual report, NAMA spent €32 billion of taxpayers money buying property loans from Irish banks. They were bought at a discount of 57%. But its accounts for 2011 show that for the second year in a row the agency has had to reduce the value of the property loans it holds.
This means since the agency bought assets, they have fallen in value by a cumulative €2.75 billion.
NAMA did make a profit €247m in 2011. It has 54% of its property portfolio in Ireland, 4% in the North of Ireland and 34% in Britain.
NAMA CEO Brendan McDonagh said the agency had made great progress last year and had made a profit for the taxpayer. The report says that the agency now has acquired €74 billion in bank assets, €2.8 billion of which was added in 2011.
NAMA generated a cash income of €8.4 billion in total by the middle of July of this year. It approved asset sales of €9.2 billion in total - €5 billion of those sales were completed by May 2012, with a further €2 billion in the pipeline.
Funding of €586m has been approved for projects in Ireland, out of of €1.3 billion in project funding approved in total.
Speaking at a press conference announcing the results, Mr McDonagh said: "We are accused of ruining the hotel industry... nothing could be further from the truth."
NAMA says it is indirectly supporting 10,000 jobs in small and medium businesses which are linked to NAMA loans.
It notes its plans to spend €2 billion in projects in Ireland over the next two years, and to provide an additional €2 billion in vendor finance for the commercial property market.