Jerusalem Economic Corporation has lost NIS 300m on Hapoalim, IDB Holding, on paper

The real estate investment company Jerusalem Economic Corporation (TASE: ECJM) today reported surging revenues but a slide in net profit for the second quarter.

The company, which is controlled by tycoon Eliezer Fishman, said that its quarterly revenues increased 13% to NIS 119.4 million, versus NIS 105.4 million in the parallel quarter of last year.

The company attributed the increase to a 5% jump in rental income to NIS 99.6 million, generated mainly by subsidiary Industrial Building Corporation (TASE: IBLD), and from buildings JEC bought abroad. Income from selling apartments plunged almost 300% to NIS 9.3 million, the company said.

Gross profit inched down 3% from the parallel to NIS 61.3 million, while the company's net eroded 5% to NIS 7.7 million.

For the half year, JEC said it netted NIS 11.2 million, up 16% from the same six months of last year.

Investment in negotiable securities has brought JEC losses, on paper, of NIS 294 million on holdings in Bank Hapoalim (TASE: POLI ) and in IDB Holding Corporation (TASE: IDBH). These holdings are booked at NIS 784 million, but their value at the end of the second quarter NIS 490 million. Since then, however, the market value of the two holdings has climbed by NIS 22 million.

JEC explains that it views the drop in value as temporary, and has therefore not set aside provisions.

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