London-listed AFI Development said on Tuesday that it recorded a net profit of $215 mln (about EUR 152 mln) in the six months to end-June this year compared to $110 mln in the first half of 2008.
London-listed AFI Development said on Tuesday that it recorded a net profit of $215 mln (about EUR 152 mln) in the six months to end-June this year compared to $110 mln in the first half of 2008.
The Russian and CIS arm of the diversified Israeli conglomerate Africa Israel Investments said revenues increased to almost $30 mln in H1 2009 from $12.6 mln for the six months to end-June 2008.
The company finished the first half of this year with $132.5 mln in cash and cash equivalents.
However, AFI Development recorded a net loss of $202 mln in the second quarter this year compared to a net profit of $28.5 mln in Q2 2008.
AFI Development said its second-quarter loss stemmed from the decline in value of some of its investment properties under development since Q1 2009. This led to an impairment charge totalling $297 mln. After the end of the reporting period AFI Development sold its Kossinskaya project in Moscow for $195 mln, reflecting a premium of $44.2 mln to its book value. The cumulative effect of the impairment and of the sale after tax was $212 mln.
Company CEO Alexander Khaldey commented: 'Our first-half results were adversely affected by the continuing decrease in the values of our properties under development. At the same time, as evidenced by the sale of our Kossinskaya project at significant premium to its book value, we believe that our projects continue to have potential for revaluation gain in future. Aside from the impact of revaluations resulting from the current economic uncertainty, we have seen a steady growth in lettings.'
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