Africa Israel Warns of Quarterly Loss on Russian Assets
Loss of between $200 million-$220 million expected, company says.
Africa Israel Investments, Lev Leviev’s property-holding company, warned on Thursday it expected to post a loss of between 790 million shekels and 870 million shekels ($200 million-$220 million), most of it due to the declining value of its properties in Russia.
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The fourth-quarter loss will leave it with a loss of from 783 million shekels to 863 million shekels for all of 2014, the company said.
Africa Israel said its AFI Development unit, which controls a portfolio of office and residential properties, would be writing down about $210 million its Russian properties and end the quarter with a $300 million loss attributable to shareholders.
“During the fourth quarter negative developments in Russia’s macroeconomic situation began. These developments have had wide-ranging effect on the models used by AFI Development’s outside appraisers to value its assets,” Africa said in a statement.
Africa Israel shares, which have been under pressure since Western sanctions and falling world oil prices prompted a collapse of the ruble, dropped another 6.1% on Thursday to end at 3.92 shekels.
Africa Israel said its Africa Industries unit, an industrial holding company, would record a loss of as much as 76 million shekels for the fourth quarter.