Lev Leviev's Africa Israel Investments lost more in the fourth quarter of 2008 than in the previous three quarters combined.
Annual losses for 2008 totaled NIS 4.8 billion, with NIS 2.7 billion sustained in the final quarter. In 2007, Africa Israel netted some NIS 4.4 billion, thanks largely to the floating of Russian subsidiary AFI Developments. The main reason for last year's massive losses was the crash in real estate values in the United States and Russia. Africa Israel issued a profit warning earlier this month, so the company's bottom line came as no surprise to investors.
The depreciation in the inventory of Africa Israel's land and buildings for sale contributed NIS 1.3 billion to the company's losses, and projects under construction lost NIS 2 billion of their value.
Africa Israel's fourth quarter revenues totaled NIS 1.2 billion, compared to NIS 2.8 billion in the parallel. Most of the revenues came from land and construction deals.
