In line with the profit warning that it published in February, this morning, Africa-Israel Investments Ltd. (TASE:AFIL), controlled by Lev Leviev, reported a loss of NIS 844 million for 2014. This compares with a loss of NIS 75 million in 2013.
The loss mainly stems from revaluations of real estate for investment and real estate for investment under construction in subsidiary AFI Development totaling $220 million (NIS 860 million). The revaluation downward of the assets arises from the situation in the Russian economy, which is where AFI is mostly active.
Africa-Israel's profits on construction and land fell to NIS 205 million in 2014, compared with NIS 265 million in 2013, and the company sold assets to the tune of just NIS 7 million in 2014, compared with NIS 224 million in 2013. In total, the company posted a loss of NIS 9 million on real estate development in 2014, compared with a profit of NIS 1.045 billion in 2013.
Leviev's compensation cost as chairman of the Africa-Israel board was NIS 17.6 million last year. NIS 4.29 million of this was salary, NIS 12.14 million was share-based compensation, and NIS 647,000 was management fees. The compensation cost of deputy chairman Nadav Grinshpon was NIS 3.03 million, and that of CEO Abraham Novogrodsky was NIS 2.66 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 30, 2015
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