TEL AVIV, March 30 Israeli real estate developer Africa Israel Investments moved to a net profit in the fourth quarter due to improved results at its Russian subsidiary and as business grew in Israel and Europe.
Africa Israel said on Sunday it earned 3 million shekels ($861,000) in the quarter, compared with a loss of 106 million a year earlier.
Its income from rent and operations of assets increased by 31 percent in the quarter to 162 million shekels. This was mainly due to improved results at Russian unit AFI Development's shopping mall in Moscow as well as consolidated income from rent in Germany and a rise in income in Romania and Israel.
"We continue to move forward in developing select projects in Russia, Eastern Europe and Israel, which are expected to contribute significantly to our results upon completion while increasing the group's cash flow in coming years," Chief Executive Avraham Novogrocki said in a statement.
The company, controlled by billionaire diamond dealer Lev Leviev, was hit hard by the real estate meltdown in the United States, Russia and eastern Europe. It defaulted on a series of bonds and in 2010 restructured some $2 billion of its debt.
($1 = 3.4844 Israeli Shekels) (Reporting by Tova Cohen)