Optibase Ltd. Announces Fourth Quarter Results

Optibase Ltd. Announces Fourth Quarter Results

HERZLIYA, Israel--(BUSINESS WIRE)-- Optibase Ltd. (Nasdaq: OBAS) today announced financial results for the fourth quarter ended December 31, 2012.

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


Net Income for the fourth quarter ended December 31, 2012 was $497,000 or $0.13 per basic and diluted share, compared to a net loss of $433,000 or $0.11 per basic and diluted share for the fourth quarter of 2011 and to a net income of $464,000 or $0.12 per basic and diluted for the third 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 year ended December 31, 2012, revenues totaled $13.7 million, compared with $12.5 million for the year ended December 31, 2011. Net income was $1.6 million or $0.41 per basic and diluted share, compared to a net loss of $239,000 or $0.07 per basic and diluted share for the year ended December 31, 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 December 31, 2012, we had cash, cash equivalents, restricted cash and other financial investments, net, of $19.3 million, and shareholders' equity of $66.6 million, compared with $26.2 million, and $64.3 million, respectively, as of September 30, 2012.

During the fourth quarter we invested an amount of approximately $4 million to acquire a 19.66% indirect beneficial interest in the owner of a property located at Two Penn Center Plaza in Philadelphia. In addition, we have acquired a 4% beneficial interest in a portfolio of Texas shopping centers in consideration for $4 million. For further information please see our press releases dated October 12, 2012 and December 19, 2012.

Amir Philips, Chief Executive Officer of Optibase commented on the quarter and years' results: "We are pleased with our fourth quarter and full year performance. During the quarter we continued executing on our strategy of diversifying and upgrading the quality of our real estate portfolio by completing our investments in Two Penn Center Plaza and in Texas shopping centers. Amir concluded, "We are currently evaluating 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 December 31, 2012

Year ended

Three months ended

December 31

December 31

December 31

December 31

2012

2011

2012

2011

$

$

$

$

Unaudited

Unaudited

Unaudited

Unaudited

Fixed income real estate rent

13,676

12,479

3,449

3,377

Cost and expenses:

Cost of real estate operation

1,966

1,869

502

493

Real estate depreciation and amortization

2,569

2,153

654

601

General and administrative

2,068

3,057

504

598

Total cost and expenses

6,603

7,079

1,660

1,692

Operating income

7,073

5,400

1,789

1,685

Gain on bargain purchase

-

4,412

-

-

Equity share in earnings (losses) of associates, net

(32

)

-

(32

)

-

Other loss

(100

)

-

-

-

Financial expenses, net

(1,243

)

(7,481

)

(143

)

(1,324

)

Income before taxes on income

5,698

2,331

1,614

361

Taxes on income

(1,643

)

(481

)

(401

)

(456

)

Net income (loss) from continuing operation

4,055

1,850

1,213

(95

)

Net income (loss) from discontinued operation

-

(51

)

-

(4

)

Net income (loss)

4,055

1,799

1,213

(99

)

Net income (loss) attributable to non-controlling interests

2,478

2,038

716

334

Net income (loss) attributable to Optibase LTD

1,577

(239

)

497

(433

)

Net income (loss) per share from continuing operation:

Basic and Diluted

$

0.41

$

0.07

$

0.13

($0.11

)

Net income (loss) per share from discontinuing operation:

Basic and Diluted

$

0.00

($0.00

)

$

0.00

($0.00

)

Net income (loss) per share:

Basic and Diluted

$

0.41

($0.07

)

$

0.13

($0.11

)

Number of shares used in computing (*)

Earning per share

Basic

3,818

3,642

3,819

3,815

Diluted

3,820

3,642

3,820

3,826

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

December 31,

2012

December 31,

2011

Unaudited

Audited

Assets

Current Assets:

Cash and cash equivalents

19,142

22,945

Restricted cash

134

131

Trade receivables

148

732

Other accounts receivables and prepaid expenses

217

1,267

Total assets attributed to discontinued operations

980

980

Total current assets

20,621

26,055

Long term deposit

50

45

Investments in companies and associates

7,993

100

Long term investments

8,043

145

Real Estate Property, net

194,826

192,173

Other assets, net

1,392

1,512

Total property equipment and other assets

196,218

193,685

Total assets

224,882

219,885

Liabilities and shareholders' equity

Current Liabilities:

Current maturities of long term loans

2,597

2,529

Accounts payable and accrued expenses

3,476

4,060

Total liabilities attributed to discontinued operations

2,563

2,990

Total current liabilities

8,636

9,579

Long term liabilities:

Deferred tax liabilities

15,262

14,705

Land lease liability, net

7,290

7,175

Other long term liabilities

2,844

3,559

Long term loans, net of current maturities

124,298

123,606

Total long term liabilities

149,694

149,045

Total shareholders' equity of Optibase Ltd

47,474

45,099

Non-controlling interests

19,078

16,162

Total shareholders' equity

66,552

61,261

Total liabilities and shareholders' equity

224,882

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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