Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) has warned that it expects a third quarter loss of NIS 1.7-2 billion.
The company said the loss is expected to stem from the revaluation of its property holdings in Israel and overseas. The company said it analyzed its property values in light of the worsening global financial crisis and its growing effect on the global economy.
The company lowered the valuations on investment properties and housing units. The firm said the lower valuations effected properties in the US and Eastern Europe, especially Russia. Africa-Israel operates in Russia through AFI Development plc (LSE:AFID) which yesterday reported a net loss of $69.3 million on $9.1 million revenue for the third quarter.
Africa-Israel subsidiary Africa-Israel Properties Ltd. (TASE: AFPR) also issues a profit warning, saying that it expected a loss of NIS 105-125 million.
Trading in Africa-Israel's shares on the Tel Aviv Stock Exchange (TASE) has been halted, with the share down 12.6% to NIS 29 so far today. Trading was also halted in Africa-Israel Properties, which fell 18% in the morning.
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008