Optibase Ltd. Announces Third Quarter Results

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Optibase Ltd. Announces Third Quarter Results

HERZLIYA, Israel--(BUSINESS WIRE)-- Optibase Ltd. (Nasdaq: OBAS) today announced financial results for the third quarter ended September 30, 2012.

Revenues from fixed income real estate totaled $3.3 million for the quarter ended September, 2012, compared to revenues of $4 million for the third quarter of 2011 and $3.4 million for the second quarter of 2012.


Net Income for the third quarter ended September 30, 2012 was $464,000 or $0.12 per basic and diluted share, compared to a net loss of $1.2 million or $0.31 per basic and diluted share for the third quarter of 2011 and to a net loss of $289,000 or $0.08 per basic and diluted for the second quarter of 2012.

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

For the nine months ended September 30, 2012, revenues totaled $10.2 million, compared with $9.1 million for the nine months ended September 30, 2011. Net income was $1 million or $0.28 per basic and diluted share, compared to a net loss of $23,000 or $0.01 per basic and diluted share for the nine months ended September 30, 2011.

Weighted average shares outstanding used in the calculation were approximately 3.8 million basic and diluted shares and 3.6 million basic and diluted shares respectively.

As of September 30, 2012, we had cash, cash equivalents, restricted cash and other financial investments, net, of $26.2 million, and shareholders' equity of $64.3 million, compared with $25.9 million, and $62.3 million, respectively, as of June 30, 2012.

Amir Philips, Chief Executive Officer of Optibase commented on the results of the third quarter of 2012: "We are pleased with our year to date operating results as our operating fundamentals continued to stabilize. We continued to execute on our strategy of diversifying and upgrading the quality of our portfolio and have recently completed the acquisition of a 19.66% beneficial interest in Two Penn Center Plaza, Philadelphia for approximately $4 million. 2 Penn Center Plaza has approximately 500,000 rentable square feet and is located in the Center City neighborhood of Philadelphia opposite City Hall and Love Park. For further information, please refer to our announcement dated October 12, 2012". Amir concluded, "We are currently involved with additional investment opportunities which we hope will materialize in the coming months."

About Optibase

Optibase invests in the fixed-income real estate field and currently holds properties in Switzerland and Miami, FL, 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 news 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 September 30, 2012

 

  
Nine months endedThree months ended
September 30 September 30September 30 September 30
2012201120122011
$$$$
UnauditedUnauditedUnauditedUnaudited
 
Fixed income real estate rent10,2279,1023,3093,962
 
Cost and expenses:
Cost of real estate operation1,4641,387459608
Real estate depreciation and amortization1,9151,541628618
General and administrative1,5652,459638544
Total cost and expenses4,9445,3871,7251,770
 
Operating income5,2833,7151,5842,192
 
Other income (loss)(100)4,194--
Financial expenses, net(1,086)(6,157)(126)(3,940)

Income (loss) before taxes on income

4,097

1,752

1,458

(1,748)
Taxes on income(1,242)(24)(370)195
 
Net income (loss) from continuing operation2,8551,7281,088(1,553)
Net income (loss) from discontinued operation(14)(47)(41)64
 
Net income (loss)2,8411,6811,047(1,489)
 
Net income (loss) attributable to non-controlling interests1,7621,704583(317)
Net income (loss) attributable to Optibase LTD1,079(23)464(1,172)
 
Net income (loss) per share from continuing operation:
Basic and Diluted$0.29$0.01$0.13($0.32)
 
Net income (loss) per share from discontinuing operation:
Basic and Diluted($0.0)($0.01)($0.01)$0.02
 
Net income (loss) per share:
Basic and Diluted$0.28($0.01)$0.12($0.31)
 
Number of shares used in computing (*)

Earning per share

Basic3,8183,5843,8193,815
Diluted3,8193,5953,8203,826
 

Amounts in thousands

(*) All shares, options, and earnings per share amounts have been retroactively adjusted for all periods presented to reflect the 1:5 reverse stock split approved by the Company's board of directors and shareholders on July 2, 2012 and August 16, 2012 respectively.

 

 

 

 

Condensed Consolidated Balance Sheets

 

September 30,

2012

December 31,

2011

Unaudited

Audited

Assets

Current Assets:
Cash and cash equivalents26,06422,945
Restricted cash128131
Trade receivables343732
Other accounts receivables and prepaid expenses2571,260
Total assets attributed to discontinued operations966969
Total current assets27,75826,037
 
Long term investments62156
 
Equipment, net57
Real Estate Property, net191,151192,173
Other assets, net1,4001,512
Total property equipment and other assets192,556193,692
 
Total assets220,376219,885
 

Liabilities and shareholders' equity

Current Liabilities:
Current maturities of long term loans2,5392,529
Trade payables1927
Other accounts payable and accrued expenses3,5784,130
Total liabilities attributed to discontinued operations2,7462,990
Total current liabilities8,8829,676
 
Long term liabilities:
Deferred tax liabilities14,76114,608
Land lease liability, net7,1467,175
Other long term liabilities3,0843,559
Long term loans, net of current maturities122,182123,606
Total long term liabilities147,173148,948
 
Total shareholders' equity of Optibase Ltd46,37945,099
Non-controlling interests17,942

 

16,162

Total shareholders' equity64,321

 

61,261

 
Total liabilities and shareholders' equity220,376

 

219,885

 
Amounts in thousands
 



Media Contacts:
Amir Philips, CEO, Optibase Ltd.
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

KEYWORDS:   United States  North America  New York  Middle East  Israel

INDUSTRY KEYWORDS:

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