Real estate co Elbit Imaging swings to profit

Revenue rose 10.6% to NIS 215.9 million.

31 May 09 13:40, Globes' correspondent

Real estate developer Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) today published its consolidated financial report for the first quarter of 2009. The company posted a net profit of NIS 8.6 million for the first quarter, compared with a net loss of NIS 3.5 million for the corresponding quarter of 2008. Net profit attributable to equity shareholders was NIS 21 million for the first quarter, compared with a net loss attributable to equity shareholders of NIS 27.3 million for the corresponding quarter.

Revenue rose 10.6% to NIS 215.9 million for the first quarter from NIS 195.2 million for the corresponding quarter. Elbit Imaging reported a loss of NIS 7.5 million on investments available for sale for the first quarter, as well as a NIS 9.9 million on cash hedges. The company sold no commercial centers during the first quarter, preferring instead to see rental revenue while waiting for the real estate market to recover.

Elbit Imaging is controlled by chairman Mordechai Zisser through Europe Israel MMS Ltd. It has four core business: malls in eastern Europe, held through its 75% holding in Plaza Centers NV (LSE:PLAZWSE:WLZ); hotels in Europe and India, held through wholly owned subsidiary Elscint Ltd.; a 52% stake in InSightec Ltd., which develops high intensity focused ultrasound imaging devices; and holdings in several portfolio companies through its venture capital arm. The company also has stakes in three large projects: the Casa Radio Project in Bucharest, the Obuda Dream Island in Budapest, and the Neotia Elbit Healthciti-Chain of multi-specialty tertiary hospitals in India.

Elbit Imaging's share closed at $20.99 on Nasdaq on Friday. The share rose 6.5% by midday on the TASE today to NIS 86.60.

Published by Globes [online], Israel business news - www.globes-online.com - on May 31, 2009

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