Alrov (Israel) Ltd. (TASE: ALRO) subsidiary Alrov Properties and Lodgings Ltd. (TASE: ALRPR) today published its financial report for the third quarter of 2009. The company posted NIS 139.8 million revenue for the third quarter, up 41% on the NIS 98.9 million for the corresponding quarter of 2008.
Alrov Properties' revenue included a NIS 26.1 million gain on the sale of securities and a NIS 7.8 gain on the sale of a Swiss shopping center that was in the final stages of construction.
Net profit was NIS 103.6 million for the third quarter, compared with a net loss of NIS 8.5 million for the corresponding quarter. Funds from operations (FFO) rose to NIS 35.2 million for the third quarter from NIS 32.8 million for the corresponding quarter.
Rental income from Alrov Properties' Mamilla Project in Jerusalem rose nearly 50% to NIS 9 million for the third quarter from NIS 6.1 million for the corresponding quarter, while rental income from foreign properties rose to NIS 39.8 million from NIS 33.7 million.
Alrov Properties owns 35 properties in Israel and other countries. In Israel, it owns two office buildings, two shopping centers, and an assisted living facility, part of which is leased to a fitness center. Overseas, it owns 19 office buildings, eight shopping centers, a logistics center, and a mixed-use office and commercial building.
Alrov chairman and CEO Alfred Akirov said, "The hotel business, which, as of the third quarter, includes the Mamilla Hotel in Jerusalem, continue to present poorer results than previously, mainly because the global recession has affected incoming tourism. Nonetheless, we've recently seen the first signs of improvement in the situation, and we hope that this trend will continue and strengthen."
Alrov Properties' share rose 4.9% by midday to NIS 60.30, giving a market cap of NIS 1.17 billion. Alrov Israel's share rose 3% to NIS 118.40, giving a market cap of NIS 1.57 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2009
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