Alony Hetz Property and Investments Ltd. (TASE: ALHE) today published its consolidated financial report for the first quarter of 2010. Revenue rose to NIS 160.1 million for the first quarter from NIS 128 million for the corresponding quarter, and rental income rose 24% to NIS 102 million from NIS 81.9 million.
Overall net profit rose NIS 145.9 million for the first quarter from NIS 52.8 million for the corresponding quarter. Net profit attributable to shareholders rose 181% to NIS 118 million for the first quarter from NIS 42.1 million for the corresponding quarter.
Alony Hetz's holdings, 60% of Amot Investments Ltd. (TASE:AMOT) in Israel, 13% of First Capital Realty Inc. (TSX:FCR) and 10% of Gazit America Inc. (TSX: GAA) in Canada, 5% of Equity One Inc. (NYSE: EQY) in the US, 18% of PSP Swiss Property Group AG (SWX:PSPN), and 25% of Brockton Fund LLP in the UK, made no revaluations on real estate property for investment in either the first quarter or the corresponding quarter.
Alony Hetz's funds from operations (FFO) attributable to shareholders rose to NIS 49.1 million (NIS 0.42 per share) for the first quarter from NIS 43.1 million for the corresponding quarter. Cash flow from operations rose to NIS 28 million from NIS 2 million.
Alony Hetz president and CEO Nathan Hetz said, "The company and its subsidiaries have no direct exposure to the euro, but the prevailing uncertainty in the euro bloc make it difficult to assess the scale of the effects of the European crisis."
IBI Investment House Ltd. analysts Ori Licht and Shay Lipman say that Alony Hetz's share is traded at a discount of 40% on the basis of its net asset value (NAV), and a discount of 10% on the basis of its marketable NAV, and that this discount is much higher than the discount of its subsidiaries. They also note the company's Israeli, Canadian, and Swiss subsidiaries operate in stable markets, which weathered the previous crisis well and have resumed growth, despite the present situation in Europe.
Licht and Lipman reiterated their "Buy" recommendation for Alony Hetz, but cut their target price to NIS 19.70 from NIS 21, because of exchange rate changes that affect the company's shareholders' equity at the prevailing exchange rate against the shekel.
Alony Hetz's share price rose 2.8% by midday today to NIS 14.60, giving a market cap of NIS 1.67 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2010
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