Alony Hetz Net Profit Rose 74% to NIS 103 Million, Based on IFRS

Real estate company Alony Hetz Properties & Investments (TASE: ALHE)  reported strong results for the first quarter of 2007. The company, which is controlled by developer Nathan Hetz and the Wertheim family, compiled its financial statement in compliance with IFRS (international financial reporting standards), leading it to reprice certain assets by their current market valuation.

First-quarter net profit rose 74% against the parallel quarter to NIS 103 million, the company said.

Because of IFRS, that figure includes the share of minority shareholders. Without it, net profit increased 55% to NIS 90.8 million, Alony Hetz said.

Income from rent and asset management increased 6% against the parallel quarter to NIS 65 million.

Financing costs increased by 8.6% against the parallel quarter to NIS 44.7 million, mainly because the company borrowed heavily to finance its investments in companies around the world.

Shareholders equity, exclusive of the share of minority shareholders, increased 46% compared with the same period of 2006 to NIS 2.2 billion. Most of the increase was due to exercise of warrants convertible into the company's shares and from implementation of IFRS, which increased the company's equity from assets available for sale.

Alony Hetz invests in yield-generating properties in Israel and abroad, mainly in Switzerland and England. In Israel it operates via Amot Investments, in which it owns a 79% controlling interest.

In Israel Amot owns 86 properties. Renting and operating them brought it net operating income of NIS 49.6 million, an increase of 21% against the same period of 2006.

In Switzerland, Alony Hetz operates through a local company PSP, which is the biggest publicly-traded commercial property developer in Switzerland.