Africa-Israel Investments Ltd. (TASE:AFIL) posted a net profit of NIS 1.83 billion in 2010, compared with a net loss of NIS 764 million in 2009. Net profit attributable to majority shareholders was NIS 1.7 billion, compared with net loss attributable to majority shareholders of NIS 674 million in 2009.
Revenue rose 27% to NIS 5.92 billion in 2010 from NIS 4.64 billion in 2009. Net cash flow from operations rose to NIS 1.11 billion in 2010 from NIS 941 million in 2009. The company reported a capital gain of NIS 435 million on revaluations of assets in 2010. In the fourth quarter alone, the company reported a capital gain of NIS 626 million on revaluations.
Africa-Israel had NIS 16 billion in assets at the end of 2010, of which 38% were properties under development, 33% were investment properties, 19% was apartments inventory, and 10% was land inventory.
Fourth quarter net profit was NIS 479 million, compared with a net loss of NIS 344 million for the corresponding quarter of 2009.
During 2010, Africa-Israel sold its 37.5% stake in Road 6 franchisee Derech Eretz Highways Ltd., 50% of Africa-Israel Hotels Ltd. to a group of private investors, and its 74.5% stake in Africa-Israel Residences Ltd. (TASE:AFHS) to sister company Danya Cebus Ltd. (TASE: DNYA). Proceeds from the sales totaled NIS 1.33 billion, and the net profit was NIS 460 million.
Africa-Israel CEO Izzy Cohen earned NIS 12.34 million in 2010, including a base salary of NIS 3.2 million and a NIS 6.5 million bonus. Vice chairman Nadav Grinshpon earned NIS 3.9 million. Africa-Israel did not disclose the salary cost of chairman Lev Leviev, but sources inform ''Globes'' that he receives NIS 40,000 a month in management fees, for a total of NIS 480,000 a year.
Africa-Israel's share price rose 2.3% in morning trading to NIS 30.14, giving a market cap of NIS 3.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2011
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