AFI Development plc (LSE:AFID), the Russian development arm of Africa-Israel Investments Ltd. (TASE:AFIL), posted a net profit of $25.88 million in 2010, compared with a net loss of $2.66 million in 2009. Revenue rose 19% to $75 million in 2010 from $63 million in 2009.
AFI Development's net Asset Value (NAV), based on an independent assessment by Jones Lang LaSalle LLC, rose 1.4% to $1.73 billion ($1.65 per share) at the end of 2010 from a year earlier. Jones Lang LaSalle estimated the value of the company's investment portfolio at $2.31 billion, 20% more than the $1.92 billion a year earlier.
AFI Development recognized a revaluation gain of $93.92 million on its completed projects in 2010, compared with a loss of $38.92 million in 2009. The gain was due to revaluations of the AFIMall City, Ozerkovskaya phase III project, and W4W project in Moscow, offset by a write-off on the Kuntsevo project.
AFI Development said that 75% of the AFIMall City, which opened to the public this month, has been leased.
Africa-Israel and AFI Development chairman Lev Leviev said, "AFI Development has emerged from the crisis in a leading position among Russian developers, well placed to benefit from improving conditions, by completing projects that meet the demand for the quality space that Moscow continues to lack." Looking forward, he added, "We look forward to 2011 as another year of growth in the Moscow property sector. We anticipate a significant level of rental revenue this year coming from our newly opened retail project AFIMall City."
AFI Development's share price opened at $1.20 on the London Stock Exchange today, giving a market cap of ₤712 million. Africa-Israel's share price opened at NIS 29.08 on the TASE, giving a market cap of NIS 3.06 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2011
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