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Financial profit lifts Budapesti Ingatlan out of red

Property management and investment company Budapesti Ingatlan Hasznosítási és Fejlesztési (BIF) had after-tax and net profit of HUF 1.05 billion in the first half of 2011, compared to post-tax losses of HUF 358.5 million in H1 of 2010, as the company's losses from financial transactions dropped sharply during the period, Budapesti Ingatlan's consolidated, unaudited first-half IFRS report published on Monday evening shows.

Budapesti Ingatlan recorded losses from financial transactions of HUF 176.9 million in the first half of 2011, down nearly six fold as a result of decreased interest payments on foreign-currency-denominated loans in H1 stemming mainly from the stronger forint during the period.

Revenue from financial transaction rose to HUF 489 million from HUF 289 million and BIF turned out net financial profit of HUF 312 million instead of losses of HUF 759 million in H1 2010.

Operating profit slipped to HUF 305 million from HUF 418 million.

The company generated revenue from sales of HUF 961.1 million in the first half of 2011, down 21% yr/yr. The company sold 3 parking lots, 2 residential buildings and 2 storage facilities in the first half of 2011, down from 5 parking lots, 3 residential buildings and 3 storage facilities in H1 of 2010.

Budapesti Ingatlan had net assets of HUF 17.1 billion on June 30, 2011, up 10.3% yr/yr. Total assets fell 0.8% to HUF 28 billion, and included HUF 22.6 billion in investment-purpose property and related rights, down 0.6% from one year earlier.

The company is a B-category issuer at the Budapest Stock Exchange.