Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) today published its consolidated financial report for the fourth quarter of 2007 and for the year as a whole. The company posted a record net profit of NIS 4.25 billion in 2007, five times the NIS 844 million posted in 2006.The 2007 includes NIS 907 million on fair value revaluation on investment properties and a capital gain of NIS 3.6 billion, including NIS 3.4 billion from the IPO of Russian development subsidiary AFI Development plc (LSE:AFID). Africa-Israel will distribute a NIS 400 million dividend.
Africa-Israel posted a loss of NIS 127 million on construction and land deals and the sale of properties compared with a profit of NIS 1.09 billion on this item in 2006. Profit from rent and property management rose to NIS 303 million in 2007 from NIS 205 million in the year before. The company's balance sheet total rose 116% to NIS 40.85 billion at the 2007 from NIS 18.77 billion a year earlier.
For the fourth quarter, however, net profit fell to NIS 247 million from NIS 412 million for the corresponding quarter of 2006. The company lost NIS 359 million in the fourth quarter on construction and land deals and the sale of properties compared with a profit of NIS 527 million on this item in the corresponding quarter. The loss is partly due to the activity of Danya Cebus and an accounting write-down relating to the winding up of the partnership with Shaya Boymelgreen. NIS 173 million of the loss is attributable to the fall in value of three projects in Miami.
Profit from rent and property management doubled to NIS 90 million in the fourth quarter from NIS 48 million in the corresponding quarter.
Chairman Lev Leviev said, "This was a record year for the company's profits. We continued the company's development and consolidation as a global leader in its field. We located a number of markets where we significant potential, but we will take care to launch new activities only after conducting thorough due diligence."
Leviev added, "In late 2007 and early 2008, we've been coping with new challenges in the business environment, especially in international markets. I believe that the company's status as a leader and its financial strength, combined with its proven ability to operate in changing business environments will enable it not only to get through this challenging period in as good a shape as possible, but to exploit the market conditions to identify business opportunities in the company's core businesses in the main regions where it operates."
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2008
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