* Q2 loss 725 mln shekels vs 33 mln shekel profit
* Value of Russian properties falls by 873 mln shekels
Aug 29 (Reuters) - Israeli real estate developer Africa Israel Investments swung to a huge loss in the second quarter, citing a drop in value in the property portfolio of its Russian subsidiary.
Africa Israel said on Wednesday it posted a quarterly net loss of 725 million shekels ($180 million), compared with a 33 million shekel profit in the year earlier period.
Earlier this month, it had projected a loss of between 720 million and 800 million shekels.
Africa Israel noted that the value of its portfolio of properties under construction in Russia fell by 873 million shekels in the quarter.
But chief executive Avraham Novogrocki said the company saw "great potential" in the Russian real estate market.
"This is another quarter where see that uncertainty and sharp fluctuations in world capital markets have not yet passed," he said, adding that all other of its units continue to show growth.
Africa Israel, controlled by billionaire diamond dealer Lev Leviev, was hit hard by the real estate meltdown in the United States, Russia and eastern Europe. The company defaulted on a series of bonds in 2010, forcing it to restructure about $2 billion of debt.
Africa Israel owns nearly 65 percent of Russia-focused real estate firm AFI Development , which last week posted a first-half loss due to a drop in the value of its portfolio.
AFI said last week the gross value of its portfolio of properties in the January-June period fell by 14 percent to $2.4 billion from around $2.8 billion due to the revaluation, as well as a fall in the Russian rouble.
Africa Israel said the balance of its investment properties was 9.4 billion shekels.
The company also said its wholly owned U.S. subsidiary entered into an agreement with a third party to sell its rights to a property for 171 million shekels. The deal, expected to close at the end of October, will lead to a 57 million shekel gain in the third quarter.
Source: http://in.reuters.com/article/2012/08/29/africaisrael-results-idINL6E8JT44620120829
No comments:
Post a Comment