IDB Holding Corp. Ltd. (TASE:IDBH) unit Bayside Land Corp. Ltd.(Gav Yam) (TASE: BYSD1) today published its financial report for the first quarter of 2009. The company's net profit attributable to majority shareholders rose 11% to NIS 46.5 million for the first quarter compared with NIS 41.8 million for the corresponding quarter of 2008. Net profit rose to NIS 55.5 million from NIS 48.3 million.
Most of the increase in profit was due to a reduction in net financing expenses to NIS 8.4 million for the first quarter from NIS 20.1 million for the corresponding quarter.
Bayside posted NIS 119.1 million revenue for the first quarter, 7% less than the NIS 128.8 million for the corresponding quarter. The decrease was partly due to one-time items in the corresponding quarter and to a decline in the increase in fair value assessments on investment property to NIS 15.2 million for the first quarter from NIS 24 million for the corresponding quarter when the company completed Bayside 5 Center. Another factor was the decline in apartment sales to NIS 26.6 million from NIS 33.2 million for the corresponding quarter, when a larger number of apartments were delivered.
Rental revenue rose 15% to NIS 74.8 million for the first quarter from NIS 64.7 million for the corresponding quarter, as new properties were occupied, and thanks to a rise in rent at several properties. The average occupancy rate was 95%.
Bayside's operating profit fell 4.7% to NIS 82.3 million for the first quarter from NIS 85.9 million for the corresponding quarter. Cash flow rose to NIS 85 million for the first quarter from NIS 70 million for the corresponding quarter. Shareholders' equity was NIS 1.5 billion at the end of March, 32% of the company's assets.
Nochi Dankner's IDB controls Bayside through Discount Investment Corporation (TASE: DISI) subsidiary Property and Building Ltd. (TASE: PTBL).
Bayside's share rose 5% in morning trading to NIS 805.80. However, Property and Building's share fell 0.7% to NIS 237, Discount Investment's share fell 3% to NIS 62.04, and IDB's share fell 1.9% to NIS 76.50.
Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2009
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