March 5, 2008 / 1:02 PM / 10 years ago

MI Developments posts lower fourth-quarter profit

TORONTO (Reuters) - MI Developments Inc MIMa.TO posted a lower fourth-quarter profit on Wednesday, due in part to a weak performance from Magna Entertainment MECa.TO.

The company, which holds a controlling stake in struggling racetrack operator Magna Entertainment, said its consolidated profit was $11.5 million, or 24 cents a share, in the quarter ended December 31. That is down from a profit of $28.5 million, or 59 cents a share, a year earlier.

Consolidated revenue during the quarter rose 14 percent to $162 million from $142.1 million.

Magna Entertainment (MEC) reported a larger fourth-quarter loss at the end of February, as weak U.S. real estate and credit markets cut into asset sales, crimping its plan to stamp out debt.

MI said in September that one of its wholly-owned subsidiaries had agreed to provide a short-term bridge loan of up to $80 million to MEC to help in the implementation of its debt elimination plan.

MI’s real estate unit reported funds from operations of $39.4 million, or 84 cents a share, up from $33.9 million, or 70 cents per share, a year ago.

MI declared a dividend of 15 cents per share on its class A subordinate voting shares and class B shares for the quarter, payable on April 15.

Shares of MI last traded at C$23.35 on the Toronto Stock Exchange on Tuesday.

Reporting by Frank Pingue; Editing by Scott Anderson

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