Russia LSR Group H1 net profit falls on revaluation

MOSCOW, Oct 2 (Reuters) - Russian construction and real estate firm LSR Group (LSRGq.L) said on Thursday its net profit fell 99 percent to $3 million in the first half of 2008 due to a loss from the revaluation of investment property.

The company said in a statement it had recognized a non-cash loss of $159 million arising from an investment property revaluation.

Net profit, to International Financial Reporting Standards, was $209 million in January-June 2007.

LSR (LSRG.MM), majority owned by businessman Andrei Molchanov, raised $772 million in an initial public offering last November, which valued the firm at around $6.8 billion.

Its core business areas are building materials, construction and real estate development mainly in Russia's second city of St Petersburg as well as Moscow and Yekaterinburg. (Reporting by Maria Kiselyova; Editing by Simon Shuster)