Wednesday, November 26, 2008
International subsidiary Delek Global Real Estate lost ₤54.5 million for the third quarter.
Delek Real Estate posted a net loss of NIS 761.6 million for the third quarter, compared with a net profit of NIS 82 million for the corresponding quarter of 2007. Revenue plummeted to NIS 9.4 million for the third quarter from NIS 1.53 billion for the corresponding quarter, thanks to write-downs on properties and subsidiaries. The company posted a write-down of NIS 299.2 million on properties, compared with a gain of NIS 294.4 million in the corresponding quarter, and a loss of NIS 203.2 million accruing from subsidiaries, compared with a gain of NIS 94.6 million in the corresponding quarter. Delek Real Estate said that, excluding these write-downs, it actually posted a profit of NIS 65 million for the third quarter.
Tuesday, November 25, 2008
Hanan Mor: When the panic recedes, home prices will rise like we've never seen
"There is a general panic in the market now, which is naturally affecting homebuyers. But if I, Hanan Mor, were to advise someone seeking to buy a new apartment, I'd tell him to run and grab the opportunity of the next six months to buy an apartment, because what will happen afterwards has never happened before in Israel. When the panic recedes, prices will rise like we've never seen," said Hanan Mor, the chairman and CEO of housing construction company Hanan Mor Group - Holdings Ltd. (TASE:HNMR).
Mor said, "People don’t know how to read the economic figures and they don’t understand that Israel's on the verge of a catastrophe in terms of the supply of new apartments. The crisis has activated forces that are reducing the supply and the banks are already limiting credit to contractors. We'll meet in a year's time and we'll see that we're beginning three years of steady growth."
Mor said, "People don’t know how to read the economic figures and they don’t understand that Israel's on the verge of a catastrophe in terms of the supply of new apartments. The crisis has activated forces that are reducing the supply and the banks are already limiting credit to contractors. We'll meet in a year's time and we'll see that we're beginning three years of steady growth."
Sunday, November 23, 2008
Africa Israel warns of swing to Q3 net loss
The company posted a profit of 215 million a year earlier.
Its shares opened down 12.6 percent after trading in them was temporarily suspended.
The warning follows an evaluation of the impact of the global financial crisis on the value of its properties in Israel and abroad, the company said in a statement to the Tel Aviv Stock Exchange.
As a result, it said it expects to post losses for a decline in fair value of a number of properties, especially those of subsidiaries in the United States, Eastern Europe and Russia.
The company said its profit was also hit by a rise in financing costs because of higher inflation. A large part of its debt payments are linked to the consumer price index.
Its shares opened down 12.6 percent after trading in them was temporarily suspended.
The warning follows an evaluation of the impact of the global financial crisis on the value of its properties in Israel and abroad, the company said in a statement to the Tel Aviv Stock Exchange.
As a result, it said it expects to post losses for a decline in fair value of a number of properties, especially those of subsidiaries in the United States, Eastern Europe and Russia.
The company said its profit was also hit by a rise in financing costs because of higher inflation. A large part of its debt payments are linked to the consumer price index.
Wednesday, November 19, 2008
Israel might face recession amid world economic crisis
"It is not so clear to what extent the Israeli economy will be affected," Ami Rosenberg, head of economic research at Gaon Investment House, told Xinhua.
"Israel's connection to the subprime mortgage crisis is secondary as there was little investment in subprime products, so we are mostly affected indirectly by the crisis in the U.S. housing sector due to the negative impact of the macroeconomic situation internationally," he said.
Some analysts believe that Israel's economy has so far managed to absorb shocks from the raging international credit crunch due to its strong macroeconomic fundamentals and a stable banking system.
"Israel's connection to the subprime mortgage crisis is secondary as there was little investment in subprime products, so we are mostly affected indirectly by the crisis in the U.S. housing sector due to the negative impact of the macroeconomic situation internationally," he said.
Some analysts believe that Israel's economy has so far managed to absorb shocks from the raging international credit crunch due to its strong macroeconomic fundamentals and a stable banking system.
Tuesday, November 11, 2008
Tel Aviv a city of all its residents
One of the most impressive Israeli creations is the city of Tel Aviv-Jaffa. The kibbutz is not what it once was, the Histadrut has lost its uniqueness, but the first Hebrew city is alive and kicking. The White City, which arose from what were once sands, will celebrate 100 years of normalcy next year. One hundred years of intense urbanism and a special cultural life. One hundred years of art, theater and music. One hundred years of creativity during the day and unleashing human urges and desires at night. One hundred years of a civil, free and flourishing Israeli society.
Shlomo Lahat is the person who redefined Tel Aviv as a city that doesn't sleep. Since his stint as mayor, which spanned the 1970s and 80s, our Mediterranean coastal city has become one of the most fascinating metropolises in the world. Mayors who since succeeded him could not measure up to Cheech, though they did continue his legacy. Under both Roni Milo and Ron Huldai, Tel Aviv continued to preserve its unique style and flavor. On the one hand, it provided its inhabitants with everything that a major city is supposed to provide, while on the other it maintained its dimensions to fit human proportions.
Shlomo Lahat is the person who redefined Tel Aviv as a city that doesn't sleep. Since his stint as mayor, which spanned the 1970s and 80s, our Mediterranean coastal city has become one of the most fascinating metropolises in the world. Mayors who since succeeded him could not measure up to Cheech, though they did continue his legacy. Under both Roni Milo and Ron Huldai, Tel Aviv continued to preserve its unique style and flavor. On the one hand, it provided its inhabitants with everything that a major city is supposed to provide, while on the other it maintained its dimensions to fit human proportions.
Friday, November 07, 2008
How Dankner and Tshuva lost $810 million in Las Vegas
Less than three months after upgrading Property & Building from Neutral to Buy, I.B.I. backtracked. The Tel Aviv investment firm downgraded the IDB group company from Buy, back to Neutral. Equity analyst Shai Lipman also slashed the company's 12-month price target by a cool 58% because of the meltdown in the financial and real estate markets.
The main yoke on Property & Building's neck is its activity in Las Vegas, Lipman writes in a review titled "The real estate market - the crisis moves from share prices to the real world." In Vegas, Property & Building is involved in projects that range from housing to the grandiose Plaza Hotel. There, the company has linked arms with Yitzhak Tshuva's privately owned company Elad (named after his son), to build a grandiose casino-hotel complex costing billions. Of dollars, not shekels.
The main yoke on Property & Building's neck is its activity in Las Vegas, Lipman writes in a review titled "The real estate market - the crisis moves from share prices to the real world." In Vegas, Property & Building is involved in projects that range from housing to the grandiose Plaza Hotel. There, the company has linked arms with Yitzhak Tshuva's privately owned company Elad (named after his son), to build a grandiose casino-hotel complex costing billions. Of dollars, not shekels.
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