Property and Building Corporation (TASE:PTBL) today reported a 20% increase in net profits for the second quarter 2002, to NIS 25.2 million.

The company, a member of the Discount Investment Corporation (TASE:DISI) group, said that for the first six months of 2002, it netted NIS 56.9 million, 30% more than in the whole year of 2001.

Quarterly revenues were NIS 167.4 million, down 19% from the corresponding quarter of last year.

For the half year, Property and Building reported a 3% slide in revenues to NIS 366.7 million. Revenue from "other sources" slid by 35%, the company said, and income from selling properties and fixed assets dropped by 98%. Income from selling apartments and land dropped by 2% in the first half versus the parallel period of 2001, to NIS 195.2 million.

On the other hand, rental income increased by 5% in the first half to NIS 143.3 million. The company noted that the occupancy rates of buildings it and its subsidiaries rent out was 91% at the end of the second quarter.

Financing costs shrank 10% in the second quarter to NIS 13.9 million.

Property and Building owns 20% of Carmelton, which has a franchise to build the Carmel Tunnel in Haifa. During the second quarter it started to draw up detailed plans for the mammoth project, after the National Planning Council rejected appeals against it.

Property and Building says that in talks between Carmelton and Bank Discount, the bank announced it does not see itself bound by their financing agreement. Carmelton is weighing its moves, Property and Building said.

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