Property Group Azrieli Q1 net profit gains

JERUSALEM May 28 (Reuters) - Israeli property developer Azrieli Group reported higher quarterly net profit on Monday, boosted by higher rental incomes and the opening of new malls.

Azrieli, which is controlled by Canadian businessman David Azrieli and has numerous investments in Israel including several shopping malls, posted first-quarter net profit of 184 million ($48 million), compared with 162 million a year earlier.

The company said its bottom line was helped by a decline in financing expenses due to a flat consumer price index.

Net operating income, which reflects the company's core business, rose 14 percent to 269 million shekels, helped by a number of properties in Houston, Texas which it bought earlier in the year.

Azrieli also owns 60.7 percent of Granite Hacarmel , which operates in the energy, paint and water sectors. It owns the Sonol chain of petrol stations and Tambour, Israel's leading paint brand.

($1 = 3.85 shekels)

Azrieli said it had an occupancy rate of 100 percent in Israel and 87 percent un the United States.

(Reporting by Steven Scheer)