November 7, 2008 / 2:00 PM / in 10 years

UPDATE 1-MI Developments reports third-quarter profit

(In U.S. dollars)

TORONTO, Nov 7 (Reuters) - MI Developments Inc MIMa.TO booked a quarterly profit, compared to a loss in the year-ago period, due in part to higher rental revenues and to fees related to a bridge loan, MID said on Friday.

Consolidated third-quarter profit was $16.7 million, or 36 cents a share, for the period ended Sept. 30. That compares to a loss of $2.8 million, or 6 cents a share, in the same period last year.

MID’s real estate business reported funds from operations of $52.9 million, or $1.13 a share, for the quarter, up from $37.3 million, or 77 cents a share, in the year-before quarter.

Consolidated revenue during the quarter rose to $127.5 million from $124.1 million.

MID said the higher revenues were due to a $3.2 million increase in rental revenues, which were helped by a weaker U.S. dollar, compared to the prior-year period, against most foreign currencies in which its real estate business operates.

The positive contributions to rental revenues were partially offset by a $800,000 reduction from property vacancies and renewals of leases, the company said.

MID also saw a $4.8 million increase in interest and other income earned related to its bridge loan to struggling horse racetrack operator Magna Entertainment Corp MECa.TO, in which MID has a controlling stake.

Both MID and MEC are part of the Magna International Inc MGa.TO group of companies controlled by Magna founder Frank Stronach. (Reporting by John McCrank, editing by Dave Zimmerman)

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