TEL AVIV, Aug 27 (Reuters) - Gazit-Globe, Israel’s largest real estate investment company, said on Tuesday its quarterly net profit fell sharply due to one-time expenses and a lower fair value gain from investment property and property under development.
The company earned 60 million shekels ($16.6 million) in the second quarter, down from 288 million a year earlier.
The non-recurring expenses included the cost of unwinding of derivatives for the purpose of refinancing.
Rental income rose one percent to 1.29 billion shekels, and net operating income was 865 million shekels, similar to the same quarter last year.
Gazit-Globe will pay a quarterly dividend of 0.43 shekels per share, representing an annualised dividend of 1.72 shekels.
Roni Soffer, Gazit-Globe president, said the shekel’s appreciation against other currencies had a major effect on the quarterly results.
“During the period, we continued to enhance the quality of our portfolio, increase available liquidity, reduce our leverage and strengthen our balance sheet,” he said. “In addition, we took advantage of the low interest rate environment through significant long-term debt issuances, resulting in longer duration and a lower average cost of debt.”
Gazit-Globe operates in the United States through Equity One and in Canada through First Capital Reality Inc . It is also the largest shareholder in Finland’s Citycon and together with Citigroup controls shopping mall developer Atrium European Real Estate.
$1 = 3.62 shekels Reporting by Tova Cohen