Fishman Holdings' Russian development arm Mirland Development Corporation plc (AIM:MLD; TASE: MRLD.B1) doubled its net profit to $19.1 million for the second quarter of 2012 from $7.5 million for the corresponding quarter of 2011. However, losses in the first quarter resulted in a net loss of $700,000 in the first half, compared with a net profit of $4 million in the first half of 2011, which included a tax benefit of $8.6 million.
First half revenue rose 32% to $30.7 million from $23.2 million for the corresponding half, due to higher occupancy rates at properties, payment of a settlement with Reifeissen Bank, and home sales in the Western Residence project in Perkhushkovo. Net operating income (NOI) rose 65% to $17.7 million in the first half from $10.7 million in the corresponding half.
Cash flow from operations was $5.2 million in the first half, compared with cash outflow of $13.9 million in the corresponding half.
Mirland's assets totaled $740.8 million at the end of June, 94% of which were properties.
Mirland chairman Nigel Wright said, "We continue to fine tune our investment portfolio and improvements to NOI and operating cash flow are encouraging, demonstrating the momentum being achieved. Sales from our flagship residential Triumph project in St. Petersburg have outperformed our expectations with 383 sales contracted at the period end and a significant number of further reservations. Accordingly we plan to launch Phase II of the project shortly to capitalize on the ongoing demand for this high quality residential scheme."
Fishman units Jerusalem Economy Ltd. (TASE:ECJM) (JEC), Industrial Buildings Corp. (TASE: IBLD) and Darban Investments Ltd. jointly own 85.2% of Mirland.
Eliezer Fishman is the controlling shareholder in “Globes”.
Mirland's share price was unchanged in morning trading on London’s Alternative Investment Market (AIM) at £0.825, giving a market cap of £82.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2012
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