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Optibase Ltd. Announces Second Quarter Results

August 22, 2014

HERZLIYA, Israel--(BUSINESS WIRE)-- Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the second quarter ended June 30, 2014.

Revenues from fixed income real estate totaled $3.6 million for the quarter ended June 30, 2014, compared to revenues of $3.4 million for the second quarter of 2013.

Net Income attributable to Optibase Ltd shareholders for the quarter ended June 30, 2014 was $159,000 or $0.03 per basic and diluted share, compared to a net income of $619,000 or $0.16 per basic and diluted share for the second quarter of 2013.

For the six months ended June 30, 2014, net income was $373,000 or $0.07 per basic and diluted share, compared to a net income of $898,000 or $0.23 per basic and diluted share for the six months ended June 30, 2013.

Weighted average shares outstanding used in the calculation for the periods were approximately 5.1 million basic and diluted shares and 3.8 million basic and diluted shares, respectively.

As of June 30, 2014, we had cash, cash equivalents, restricted cash and other financial investments, net, of $20.8 million, and shareholders' equity of $80.3 million, compared with $17.6 million, and $67.4 million, respectively, as of June 30, 2013.

Amir Philips, Chief Executive Officer of Optibase commented on the second quarter results: "While our gross income remained stable with a slight growth over recent quarters, we have experienced a slight increase in operating expenses attributed mainly to depreciation and maintenance expenses in our various properties. At the same time, we have experienced an increase in our general and administrative expenses which mainly are considered as non-recurring expenses. Given the aforementioned, our net income has decreased compared to the previous quarter, as well as the second quarter of 2013." Amir concluded, "We continue to look for attractive real estate investment opportunities in what is proving to be an increasingly challenging business environment."

About Optibase

Optibase invests in the fixed-income real estate field and currently holds properties in Switzerland and in Miami, Texas and Philadelphia, USA and is currently looking for additional real estate investment opportunities. Optibase was previously engaged in the field of digital video technologies until the sale of its video solutions business to Optibase Technologies Ltd., a wholly owned subsidiary of VITEC Multimedia ("Vitec") in July 2010. For further information, please visit www.optibase-holdings.com.

This press release contains forward-looking statements concerning our marketing and operations plans.All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management's current expectations which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, difficulties in finding suitable real-estate properties for investment, availability of financing for the acquisition of real-estate, difficulties in leasing of real-estate properties, insolvency of tenants, difficulties in the disposition of real-estate projects, risk relating to collaborative arrangements with our partners relating to our real-estate properties, risks relating to the full consummation of the transaction for the sale of our video solutions business, general economic conditions and other risk factors.For a more detailed discussion of these and other risks that may cause actual results to differ from the forward looking statements in this press release, please refer to Optibase's most recent annual report on Form 20-F.The Company does not undertake any obligation to update forward-looking statements made herein.

       
Optibase Ltd.
Condensed Consolidated Statement of Operations

For the Period Ended June 30, 2014

 
Six months endedThree months ended
June 30     June 30June 30     June 30
2014201320142013
$$$$
UnauditedUnauditedUnauditedUnaudited
 
Fixed income real estate rent 7,137 6,838 3,591 3,404
Cost and expenses:
Cost of real estate operation 1,394 1,064 691 559
Real estate depreciation and amortization 2,014 1,597 974 819
General and administrative 1,229 784 760 397
Total cost and expenses 4,637 3,445 2,425 1,775
Operating income 2,500 3,393 1,166 1,629
 
Equity share in (losses) earnings of associates, net (75 ) (45 ) (29 ) 43
Other Income 204 193 95 95
Financial expenses, net (565 ) (346 ) (254 ) (18 )

Income before taxes on income

2,064

3,195 978 1,749
Taxes on income (701 ) (1,044 ) (339 ) (496 )
 
 
Net income 1,363 2,151 639 1,253
 
Net income attributable to non-controlling interests 990 1,253 480 634
Net income attributable to Optibase LTD 373 898 159 619
 
Net income per share :
Basic and Diluted $ 0.07 $ 0.23 $ 0.03 $ 0.16
 
 
Number of shares used in computing Earnings per share
Basic 5,126 3,822 5,127 3,821
Diluted 5,131 3,824 5,130 3,822
 

Amounts in thousands

 
       

Condensed Consolidated Balance Sheets

 

June 30,

2014

December 31,

2013

UnauditedAudited

Assets

Current Assets:
Cash and cash equivalents 20,839 18,811
Restricted cash - 144
Trade receivables 650 279
Other accounts receivables and prepaid expenses 259 138
Total assets attributed to discontinued operations - 675
Total current assets 21,748 20,047
 
Long term deposit 60 61
Investments in companies and associates 7,663 7,738
Long term investments 7,723 7,799
 
Real Estate Property, net 208,477 209,761
Other assets, net 863 1,141
Total property equipment and other assets 209,340 210,902
 
Total assets 238,811 238,748
 

Liabilities and shareholders' equity

Current Liabilities:
Current maturities of long term loans 2,670 2,669
Accounts payable and accrued expenses 5,650 5,131
Total liabilities attributed to discontinued operations 2,153 2,135
Total current liabilities 10,473 9,935
 
Long term liabilities:
Deferred tax liabilities 15,811 15,815
Land lease liability, net 7,316 7,374
Other long term liabilities 1,120 1,628
Long term loans, net of current maturities 123,741 125,072
Total long term liabilities 147,988 149,889
 
Total shareholders’ equity of Optibase Ltd 57,495 57,063
Non-controlling interests 22,855 21,861
Total shareholders' equity 80,350 78,924
 
Total liabilities and shareholders’ equity 238,811 238,748
 
Amounts in thousands
 





Media Contacts:

Optibase Ltd.

Amir Philips, CEO

011-972-73-7073-700

info@optibase-holdings.com

or

Investor Relations Contact:

Marybeth Csaby, for Optibase

+1-917-664-3055

Marybeth.Csaby@gmail.com

Source: Optibase Ltd.


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