An 8% revaluation of HSBC building in Manhattan was offset by a downward revaluation of the GW project in Las Vegas.
Downward revaluations slashed the net profit of IDB Holding Corp. Ltd. (TASE:IDBH) unit Property and Building Ltd. (TASE: PTBL) 66% to NIS 72 million for the first quarter of 2013 from NIS 211 million for the corresponding quarter of 2012.
CBRE Inc. raised the fair value of the HSBC building in Manhattan by 8% $670 million. Property and Building said, "The net profit accruing to the company from the HSBC Building and Barney's Building (in Chicago) was NIS 77 million in the first quarter, compared with NIS 171 million in the corresponding quarter. This was offset by a downward revaluation of the GW project in Las Vegas by NIS 37 million, which was included in the company's share of the net losses of subsidiaries. The net influence of the valuations of investment properties on the company's net profit for the first quarter of 2013 was NIS 40 million."
Property and Building's rental income fell to NIS 190 million for the first quarter from NIS 201 million for the corresponding quarter, and its income from property sales fell to NIS 3 million from NIS 132 million.
Property and Building will distribute a dividend of NIS 60 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2013
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