Subscribe to Print Edition | Wed., November 12, 2008 Cheshvan 14, 5769 | | Israel Time: 01:27 (EST+7) web haaretz.com   Back to Homepage Haaretz Toolbar Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate U.S. election Travel Week's End Anglo File

Bank stocks drag Alrov to NIS 274m quarterly loss By Tal Levy Alrov Israel is a real estate company, but its embrace of bank stocks brought it low in the third quarter. Its yielding properties include some of the best real estate in the land: the Mamilla project by the Old City of Jerusalem's Jaffa Gate, and the David Citadel Hotel (owned through its subsidiary Alrov Properties and Lodgings). It also owns several projects in western Europe. But alongside its properties, Alrov, which is controlled by Alfred Akirov, also has a rather extensive portfolio of financial assets, composed mainly of bank stocks. It is this asset, which has no direct link to the firm's core activity, that is responsible for the NIS 274 million loss Alrov suffered in the third quarter of 2008, the company advised the market yesterday. Advertisement The loss is entirely due to Alrov's investments in Bank Leumi and Bank Hapoalim stock, both of which were hit hard since the subprime crisis in America went worldwide. To date, Alrov subsidiary Alrov Properties and Lodgings, which is also traded on the Tel Aviv Stock Exchange, has reported no decrease in the value of its assets. A firm may report diminished portfolio value in one of two ways. It may post the loss under its "capital reserve," indicating that it believes the loss is temporary. Or, it may book the loss in its profit and loss statement, in effect recognizing it as permanent. Altogether, Alrov is changing the status of NIS 167 million worth of debt that had been written in previous financial statements under capital reserve. This loss is now acknowledged as permanent. The company is also reporting NIS 107 million of brand-new debt. Despite the contracting value of its portfolio, Alrov notes to date, the scope and composition of its portfolio has not changed materially from the second quarter. Bookmark to del.icio.us   No light at the end Amira Hass / Powerless in Gaza, residents rely on the tunnels. Offensive strikes Report: U.S. secretly attacked dozens of Mideast targets since 2004.

Read & React Aluf Benn: No leader before Olmert explicitly urged return to '67 borders Responses: 173 Nehemia Shtrasler: We shouldn't copy Obama, he should copy us Responses: 32 Report: Hamas says its officials met Obama aides before U.S. election Responses: 162 Moshe Arens: History may judge Bush, Iraq war, very differently Responses: 57 Israel renews fuel deliveries to Gaza, after week-long halt Responses: 94 U.S. Jews to Mormons: Stop baptizing Holocaust victims Responses: 114 More Headlines 00:54 Poll: Secular hopeful Nir Barkat leading in Jerusalem mayoral race 22:05 Nasrallah: Israeli hands that attack Lebanon will be severed 00:57 Abbas says Israel has proposed Jerusalem concessions in the past 19:22 Netanyahu will seek alternative to current peace talks if elected 00:05 Arafat's nephew insists Israel poisoned the late Palestinian leader 15:51 Blair's bodyguard accidentally fires gun at Ben Gurion airport 20:26 Sweden court: Civil servant unlawfully demoted for pro-Israel views 15:58 Report: Hamas says its officials met Obama aides before U.S. election 20:44 IDF files harsh indictments against officers involved in Golan training accident 10:09 Livni distances herself from Olmert comments on '67 borders 01:46 ANALYSIS / No leader before Olmert has explicitly called for return to '67 borders 15:59 UN: Gaza food aid to halt if Israel keeps crossings closed 08:28 Obama, and the first Arab prime minister of Israel 18:21 U.S. Jewish group to Mormons: Stop baptizing Holocaust victims Previous Editions Select Day 11 nov 10 nov 09 nov 07 nov 06 nov 05 nov 04 nov 03 nov 02 nov 31 oct 30 oct 29 oct

Special Offers Advertisement Living in Israel Studying in English Click & Meet our students from all around the world Dan Boutique Jerusalem New Dan Hotel in Jerusalem Young, Fun & Distinctively Dan Book Now Online! Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. Car rental in Israel Shlomo Sixt Receive $15.00 from our low rates. Dial 013 for your long-distance calls and get all your money back US CITIZENS Vote for real change. Request your ballot today! Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations Jewish Singles Personal Ads Find the love of your life on JDate.com Israel's Premier Real Estate Website www. israel-property.com Hebrew Summer courses From $39.95 Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

Real Estate in Israel | Travel to Israel with Haaretz | Hotels Israel | Restaurants Israel | Tourist attractions Israel | Shops Israel

birthright Israel | Search engine marketing

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved