Delek-Belron Q2 net nears profit for all of 2001

Property rentals continued to generate fat profits for Delek-Belron International, a subsidiary of Delek Real Estate, which is a member of the Delek Group (TASE:DLEKG).

The Delek group of companies is controlled by businessman Yitzhak Tshuva.

Delek-Belron today reported a 130% surge in net profit for the second quarter to NIS 27.4 million, just under its entire profit for 2001.

For the first half of 2002, Delek-Belron achieved a net profit of NIS 52.7 million, presenting 186% growth from the parallel six months of last year.

The company's income from rent in Britain and Canada totaled NIS 74.9 million, up 165% from the second quarter of last year.

First-half rental revenue was NIS 141.4 million, up 158% from the parallel period.

Financing costs also surged, however, to NIS 11.1 million, up 89% from the parallel quarter. But for the half-year financing costs declined by 23% to NIS 20 million.

As of the end of the second quarter, Delek-Belron's long-term commitments totaled NIS 1.59 billion, and its short-term commitments totaled NIS 870.3 million. The company's shareholders equity stood at NIS 141.5 million, comprising 5.4% of its balance sheet.

Regular second-quarter activities generated positive cash flow of NIS 35 million, or NIS 61 million for the half-year.

The company took on NIS 627.2 million worth of short-term debt to finance the purchase of Bell Towers in Montreal, Canada. The credit was extended by the seller. Delek-Belron is negotiating to exchange it for long-term debt.

The company notes it has an agreement with the seller to extend the credit term from May 2002 to September 2002, by which time the company believes it can arrange long-term credit.

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