15 August 2012

Africa-Israel Drops After Unit’s Loss: Tel Aviv Mover

  • Bloomberg

Africa-Israel Investments Ltd. (AFIL), the holding company owned by billionaire Lev Leviev, headed for a record low after quarterly losses at its property unit widened and a U.S. unit lost control of a Manhattan apartment building.

The shares plunged 17 percent to 6.391 shekels, set for the lowest since the stock was listed in January 1995, at 2:42 p.m. in Tel Aviv. Africa Israel Properties Ltd. (AFPR) shares slumped 7.6 percent to 22.2 shekels, poised for the lowest close since Dec. 22, after reporting a second-quarter loss of 23.2 million shekels ($5.8 million) compared with 449,000 shekels a year earlier.

“The string of bad news is creating a negative sentiment in the market and we don’t know where it will end,” Amir Arad, an analyst for Excellence Nessuah Investment House Ltd. in Ramat Gan, Israel said today by phone.

The holding company’s shares have plunged 35 percent since Aug. 13, when its AFI Development Plc (AFRB) unit, a developer of real estate in Russia, said that the value of its properties declined by about $400 million because of changes in Moscow planning policy and the ruble’s depreciation against the dollar. Africa Israel’s U.S. unit today lost control of New York City’s landmark Apthorp apartment building after a project recapitalization.

Africa-Israel said it expects a loss as much as 800 million shekels in the second quarter from AFI’s lower valuation. The holding company’s shares have lost 45 percent this year compared with a 0.6 percent gain in the benchmark TA-25 index.

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