Africa Israel moves to Q3 profit on Russian unit rebound

JERUSALEM, Nov 28 (Reuters) - Israeli real estate developer Africa Israel Investments swung to a net profit in the third quarter after its Russian subsidiary recovered from losses and business grew in Israel and Europe.

Africa Israel said on Thursday it earned 43 million shekels ($12.2 million) in the quarter, compared with a loss of 181 million a year earlier when Russian unit AFI Development (LSE: AFRB.L - news) made a loss due to an appreciation in the rouble versus the dollar.

AFI posted quarterly profit of $40.2 million versus a loss of $35.7 million in the third quarter of 2012, boosted by a 29 percent gain in rental income.

Africa Israel Properties made a profit of 104.3 million shekels, compared to a small loss a year earlier, as the value of its investments grew and it completed or improved the performance of projects in Israel and Europe, it said.

Overall rental income grew 6 percent to 148 million shekels.

Africa Israel also has interests in energy, hotels and infrastructure.

The company, controlled by billionaire diamond dealer Lev Leviev, was hit hard by the real estate meltdown in the United States, Russia and eastern Europe. It defaulted on a series of bonds and in 2010 restructured some $2 billion of its debt.