Developer Africa Israel Q1 profit soars

JERUSALEM, May 31 (Reuters) - Real estate developer Africa Israel Investments AFIL0.1TA on Sunday reported a surge in first-quarter net profit, boosted by accounting changes, efficiency measures and improved results at its subsidiaries.

The Israeli company, controlled by billionaire diamond dealer Lev Leviev, recorded net profit of 647 million shekels ($163 million), up from 45 million shekels a year earlier.

Africa Israel noted that for the first time, it was reporting results according to accounting rule IAS 40 that deals with valuations of real estate under development.

Profitability was also boosted by a decline in financing expenses.

Africa Israel also has interests in energy, hotels, infrastructure, and fashion. It owns 71 percent of AFI Development (AFIDLq.L), a Russia-focused real estate company.

($1=3.96 shekels)

(Reporting by Steven Scheer; Editing by Erica Billingham)