Azrieli Group Ltd. (TASE: AZRG) reported higher revenue and profits for the third quarter of 2012.
Net operating income (NOI) rose 10% to NIS 275 million for the third quarter from NIS 250 million for the corresponding quarter, and funds from operations (FFO) also rose 10% to NIS 180 million from NIS 164 million. Net profit attributable to majority shareholders rose to NIS 194million for the third quarter from NIS 179 million for the corresponding quarter. Comprehensive profit attributable to majority shareholders was NIS 284 million, compared with a comprehensive loss of NIS 36 million for the corresponding quarter. The swing to comprehensive profit was the increase in the value of Bank Leumi (TASE: LUMI), in which the company owns a 4.8% stake, during the quarter.
All of the company's malls, shopping centers, and offices buildings in Israel were fully occupied in the third quarter, while the occupancy rate of US properties was 88%.
Cash and cash equivalents totaled NIS 563 million at the end of September, and the financial investments available for sale in Bank Leumi and Leumi Card Ltd. had a fair value of NIS 1.26 billion.
In September, Azrieli completed an offer to purchase for its industrial operations subsidiary Granite Hacarmel Investments Ltd., which owns fuel company Sonol Israel Ltd., paint company Tambour Ltd., Global Environmental Services Ltd. (GES) and other companies, and took it private. Granite Hacarmel's net profit almost tripled to NIS 38 million for the third quarter from NIS 13 million for the corresponding quarter.
Earlier this month, Azrieli bought a lot in Tel Aviv's Northern Central Business District from Clalit Health Services for NIS 240 million. It plans to build a 75,000-square meter building on the site. The purchase came a month after Azrieli bought out its partner in the Petah Tikva Science and Technology project for NIS 49 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2012
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