Africa Israel posts NIS 148M net profit
Group records gains from revaluation of real estate investment properties at NIS 611 million, mainly due to purchase of Moscow Municipality's 25% stake in AFI Mall for NIS 417 million
Africa Israel, controlled by businessman Lev Leviev, has presented an increase of its top and bottom line in its third quarter financial reports.
The company's Q3 gains attributed to shareholders were NIS 148 million (about $40 million) as compared with a NIS 1 million profit ($260,000) in the same quarter last year.
The company's total net profit since the beginning of the year amounted to NIS 230 million ($61 million) as compared to NIS 1.2 billion ($320 million) in the same quarter last year.
The company recorded net gains from revaluation of real estate investment properties for the first nine months of 2011 in the amount of NIS 712 million ($188 million), of which NIS 599 million ($159 million) were recorded in the third quarter.
Revaluation of real estate investment properties amounted to NIS 611 million ($161 million). The revaluation gain stems mainly from the purchase of the Moscow municipality's 25% stake in the company's AFI Mall project for a NIS 417 million ($110 million) price tag.
Gains from real estate initiatives in the third quarter amounted to NIS 788 million ($210 million) in the third quarter as compared with NIS 78 million ($20 million) in the same quarter last year.
The steep increase stems from the completion of the sale of the Flora Palace mall in the Czech Republic and the Leonard 88 building in New York alongside gains from the value increase of the company's property in Russia, namely the AFI Mall project following the acquisition of the said stake from the Moscow municipality.
Owners' equity for the quarter amounted to NIS 4.3 billion ($1.14 billion) as compared with NIS 3.5 billion ($930 million) in the beginning of the year.
Ongoing business momentum
AFI Group CEO Izzy Cohen said, "We're happy to report ongoing business momentum of all the company's subsidiaries, which enables us to post a significant increase in business volumes, profitability and financial robustness.
"The management of the parent company and its subsidiaries is continuing to uphold efforts to improve and develop our ongoing projects in Israel, Russia and East Europe and is initiating several new yield bearer projects which are supported financially by Israeli and global banks.
"The Group has been endeavoring from the beginning of the year to reduce its overall debt by means of early payment and debenture buy backs at the amount of some NIS 1.2 billion ($320 million).
"Africa Israel is currently dealing with the uncertainty on local and global markets, but is backed by a positive cash flow, a steadfast capital structure and a liability balance that was duly met so the company is able to weather the present difficulties and uphold its initiatives, construction and improvement of assets based on its current broad high value housing and yield bearer land reserves in Israel and abroad," added Cohen.
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