UPDATE 1-Talaat Moustafa's Q2 net profit up 5.6 pct

* Net profit at 338.3 million Egyptian pounds

* Earnings below average of analysts' forecasts

* Shares down 0.8 percent in early trade (Rewrites with second quarter, adds forecasts, share price)

CAIRO, Aug 11 (Reuters) - Egypt's biggest listed property developer Talaat Moustafa Group's (TMG) (TMGH.CA) net profit rose 5.6 percent in the second quarter of 2010, less than an average forecast from analysts.

The firm made a net profit of 338.3 million Egyptian pounds ($59.59 million) in the quarter, up from 320.5 million pounds a year earlier, according to a bourse statement.

A Reuters poll of three analysts had given an average forecast of 371.9 million pounds for second-quarter profit.

Shares in the firm were down 0.3 percent at 7.18 Egyptian pounds by 0907 GMT, when the main Egyptian market index .EGX30 was down 0.4 percent.

Talaat Moustafa, which owns land in Egypt and Saudi Arabia, does not fully recognise revenue from most home sales until the units are handed over to the customer.

Many homes in Egypt are sold off-plan, or before construction, and buyers can wait as long as five years before they move in. ($1=5.677 Egyptian pounds) (Reporting by Ehab Farouk; Writing by Alexander Dziadosz; Editing by Greg Mahlich)