Gindi Investments 1 Ltd. (TASE: GIND.B1) strikes a discordant note from most real estate developers, who claim that housing prices will continue to rise this year. Gindi Investments states in its financial report for 2009 that the plan by Minister of Housing and Construction Ariel Atias to saturate the market with land for housing through tenders by the Israel Land Administration (ILA) "will keep housing prices steady in 2010."
Gindi Investments develops income-producing and residential projects in Israel and Europe. The company is part of the consortium that will develop the NIS 950 million first stage of the Tel Aviv wholesale market site. Other Israeli projects include Gindi Ramat Aviv, the Hagiva Mall in Givat Shmuel, Kiryat Hasharon in Netanya, and Gindi City in Ramle.
Gindi Investments' 2009 figures should actually be compared with the figures for 2007 rather than 2008. Revenue fell 41% to NIS 108.9 million in 2009 from NIS 194.4 million in 2008, and six times more than the NIS 15.7 million in 2007.
Gindi Investments posted a net loss attributable to shareholders of NIS 5.7 million in 2009, compared with a net profit of NIS 54.1 million in 2008 and a net loss of NIS 12.9 million in 2007.
However, the company's orders backlog in Israel more than doubled to NIS 240 million at the end of 2009 from a year earlier. The company estimates that NIS 168 million of the backlog will be recognized as revenue in 2011 and NIS 72 million in 2007. NIS 91.3 million of the company's backlog of NIS 117.1 million at the end of 2008 was recognized during 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010