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TEL AVIV, Nov 20 (Reuters) - Israeli real estate developer Africa Israel Investments warned on Thursday it expects a third quarter net loss of 1.7 billion shekels ($426 million) to 2 billion shekels.
The company posted a profit of 215 million a year earlier.
Its shares opened down 12.6 percent after trading in them was temporarily suspended.
The warning follows an evaluation of the impact of the global financial crisis on the value of its properties in Israel and abroad, the company said in a statement to the Tel Aviv Stock Exchange.
As a result, it said it expects to post losses for a decline in fair value of a number of properties, especially those of subsidiaries in the United States, Eastern Europe and Russia.
The company said its profit was also hit by a rise in financing costs because of higher inflation. A large part of its debt payments are linked to the consumer price index.
Africa Israel said these numbers were preliminary and could change when it reports full results, which must be published by the end of November.
The company, which is controlled by billionaire diamond dealer Lev Leviev, also has interests in energy, hotels, infrastructure and fashion. It owns 71 percent of AFI Development, a Russia-focused real estate company. (Reporting by Tova Cohen; Editing by Chris Wickham)