Fishman Holdings'Russian development arm Mirland Development Corporation plc (AIM:MLD; TASE: MRLD.B1) swung to profit in the first quarter of 2010. The company posted a net profit of $5.6 million compared ($0.54 per share) with a net loss of $4.5 million for the corresponding quarter of 2009.
The company attributed the swing to profit to fair value adjustments of investment properties and investment properties under construction and a reduction in financing costs.
In a separate development, MirLand has sold its 50% stake in the Techagrocom-2 business park, which is under construction in Moscow. MirLand's share in the sale is $20 million. MirLand owned half of the Techagrocom-2 through a joint venture, IWW Astraestate & Co. LP. The company bought its stake in the project for $12.9 million and invested an additional $2.2 million in development in the 163,400-square meter office project. It expects to report a capital gain of $3 million on the sale.
Revenue rose to $5 million for the first quarter from $4.2 million for the corresponding quarter. Rental income and property management fees rose 7% to $4.5 million for the first quarter from $4.2 million for the corresponding quarter. The company attributed the growth to an increase in space rented and to stabilization in rents.
MirLand CEO Moshe Morag said, "The company benefited during the first quarter from Russia's return to growth as well as from streamlining and savings measures undertaken by the company during 2009, which were necessary in the economic climate and business environment."
Looking ahead, MirLand said that, in light of improvements in the Russian macroeconomic environment, it expects to complete projects already under construction and to begin projects where funding is already in place.
MirLand's share was unchanged in early trading on London’s Alternative Investment Market (AIM) at ₤2.17, giving a market cap of ₤2.25 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2010
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