Optibase Ltd. Announces Second Quarter Results

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Optibase Ltd. Announces Second Quarter Results

HERZLIYA, Israel--(BUSINESS WIRE)-- Optibase Ltd. (Nasdaq: OBAS) today announced financial results for the second quarter ended June 30, 2013.

Revenues from fixed income real estate totaled $3.4 million for the quarter ended June 30, 2013, compared to revenues of $3.4 million for the first quarter of 2013 and $3.4 million for the second quarter of 2012.

Net income for the second quarter ended June 30, 2013 was $619,000 or $0.16 per basic and diluted share, compared to a net income of $279,000 or $0.07 per basic and diluted share for the first quarter of 2013 and to a net loss of $289,000 or $0.08 per basic and diluted for the second quarter of 2012.

For the six months ended June 30, 2013, net income was $898,000 or $0.23 per basic and diluted share, compared to a net income of $615,000 or $0.16 per basic and diluted share for the six months ended June 30, 2012.

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

As of June 30, 2013, we had cash, cash equivalents, restricted cash and other financial investments, net, of $17.6 million, and shareholders' equity of $67.4 million, compared with $19 million, and $65.7 million, respectively, as of March 31, 2013.

Commenting on the quarter, CEO of Optibase, Amir Philips, said, "We are pleased with our second quarter operating results as our operating results continue proving our stability over the last period which is even more noticeable in today's unexpected marketplace. Due to the fluctuation of the Swiss Franc against the USD, our financial expenses decreased this quarter compared to the previous quarter of 2013 and compared to the second quarter of 2012. Depending on the fluctuation of the Swiss Franc against the USD, our financial income, net may continue to fluctuate in the quarters to come." Amir concluded, "We are still actively looking for additional investment opportunities and more recently have been looking into some opportunities in the German real estate market. Nevertheless, current economic conditions and the tightening of loan criteria by financial institutions may reduce the availability of favorable financing for new transactions and affect their attractiveness. For that matter, we are working to increase our available financial resources in way of cash resources and financial guaranties so we can finance such opportunities as we come across them."

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 June 30, 2013

Six months ended Three months ended
June 30

June 30

June 30 June 30


2013 2012


$ $


Unaudited Unaudited
Fixed income real estate rent



6,918 3,404 3,431
Cost and expenses:
Cost of real estate operation 1,064 1,005 559 518
Real estate depreciation and amortization 1,597 1,286 819 623
General and administrative 784 928 397 504
Total cost and expenses 3,445 3,219 1,775 1,645
Operating income 3,393 3,699 1,629 1,786
Equity share in earnings (losses) of associates, net (45) - 43 -
Financial income (expenses) and other, net (153) (1,033) 77 (1,280)

Income before taxes on income




Taxes on income (1,044) (872) (496) (339)
Net income 2,151 1,794 1,253 167
Net income attributable to non-controlling interests 1,253 1,179 634 456
Net income (loss) attributable to Optibase LTD 898 615 619 (289)
Net earnings per share:
Basic and Diluted $0.23 $0.16 $0.16 ($0.08)
Number of shares used in computing

Earning per share

Basic 3,822 3,818 3,821 3,818
Diluted 3,824 3,818 3,822 3,818
Amount in thousands

Condensed Consolidated Balance Sheets


June 30,

December 31,








Current Assets:
Cash and cash equivalents 17,428 19,142
Restricted cash 138 134
Trade receivables 307 148
Other accounts receivables and prepaid expenses 141 217
Assets related to discontinued operations 675 980
Total current assets 18,689 20,621
Long term investments 8,059 8,043
Real Estate Property, net 191,332 194,826
Other assets, net 1,252 1,392
Total property and other assets 192,584 196,218
Total assets 219,332 224,882

Liabilities and shareholders' equity

Current Liabilities:
Current maturities of long term loans 2,519 2,597
Accrued payable and accrued expenses 4,027 3,476
Liabilities related to discontinued operations 2,235 2,563
Total current liabilities 8,781 8,636
Long term liabilities:
Deferred tax liabilities 14,927 15,262
Land lease liability, net 7,014 7,290
Other long term liabilities 1,925 2,844
Long term loans, net of current maturities 119,296 124,298
Total long term liabilities 143,162 149,694
Total shareholders' equity of Optibase Ltd 47,639 47,474
Non-controlling interests 19,750 19,078
Total shareholders' equity 67,389 66,552
Total liabilities and shareholders' equity 219,332 224,882
Amounts in thousands

Media Contacts:
Optibase Ltd.
Amir Philips, CEO
Investor Relations Contact:
Marybeth Csaby, for Optibase
+1- 917-664-3055

KEYWORDS:   United States  Europe  North America  Florida  Middle East  Switzerland  Israel


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