(MOSCOW) Russian property developer Sistema-Hals yesterday reported a net loss of US$77.6 million for the first nine months of 2007 compared with a net profit of US$34.3 million in the same period last year.
The company, part of diversified holding company Sistema, said operating expenses rose by 165 per cent to US$279.3 million mainly due to a US$98 million non-cash expense on a stock option bonus plan for management and the board of directors.
‘The increase in SG&A (sales, general and administrative expenses) was also caused by an increased number of personnel in line with an increase in the number of new development projects,’ the company said.