Optibase Ltd. Announces First Quarter Results

Optibase Ltd. Announces First Quarter Results

HERZLIYA, Israel--(BUSINESS WIRE)-- Optibase Ltd. (Nasdaq: OBAS) today announced financial results for the first quarter ended March 31, 2013.

Revenues from fixed income real estate totaled $3.4 million for the quarter ended March 31, 2013, compared to revenues of $3.5 million for the first quarter of 2012 and $3.4 million for the fourth quarter of 2012.


Net income for the first quarter ended March 31, 2013 was $279,000 or $0.07 per basic and diluted share, compared to a net income of $904,000 or $0.24 per basic and diluted share for the first quarter of 2012, and to a net income of $497,000 or $0.13 per basic and diluted for the fourth quarter of 2012.

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

As of March 31, 2013, we had cash, cash equivalents, restricted cash and other financial investments, net, of $19 million, and shareholders' equity of $65.7 million, compared with $19.3 million, and $66.6 million, respectively, as of December 31, 2012.

Commenting on the first quarter results, Mr. Amir Philips, CEO of Optibase, said, "We are over all pleased with our first quarter results. Our income has remained stable compared to Q1 2012 and compared to the previous quarter. We kept our operating expenses at the same level as in the previous quarter and managed to generate operating income. Due to the fluctuation of the Swiss France against the USD, we have recorded financial expenses this quarter, compared to financial income in Q1 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." Mr. Philips concluded, "Aside from the fluctuation in our financial income, net, and given no other major external events, we expect our operating results and other fundamentals to remain stable while we continue to look for additional attractive real estate investment opportunities."

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 March 31, 2013

Three months ended

March 31

March 31

2013

2012

Unaudited $

Unaudited $

Fixed income real estate rent

3,434

3,487

Cost and expenses:

Cost of real estate operation

505

487

Real estate depreciation and amortization

778

663

General and administrative

387

424

Total cost and expenses

1,670

1,574

Operating income

1,764

1,913

Equity share in earnings (losses) of associates, net

(88

)

-

Financial income (expenses) and other, net

(229

)

247

Income before taxes on income

1,447

2,160

Taxes on income

(548

)

(533

)

Net income

899

1,627

Net income attributable to non-controlling interests

620

723

Net income attributable to Optibase LTD

279

904

Net earnings per share:

Basic and diluted

$

0.07

$

0.24

Number of shares used in computing Earnings per share:

Basic

3,821

3,816

Diluted

3,823

3,819

Amounts in thousands

Condensed Consolidated Balance Sheets

March 31,
2013

December 31,
2012

Unaudited

Audited

Assets

Current Assets:

Cash and cash equivalents

18,871

19,142

Restricted cash

137

134

Trade receivables

522

148

Other accounts receivables and prepaid expenses

274

217

Assets related to discontinued operations

980

980

Total current assets

20,784

20,621

Long term investments

8,605

8,043

Real Estate Property, net

186,935

194,826

Other assets, net

1,288

1,392

Total property and other assets

188,223

196,218

Total assets

217,612

224,882

Liabilities and shareholders' equity

Current Liabilities:

Current maturities of long term loans

2,495

2,597

Accrued payable and accrued expenses

4,054

3,476

Liabilities related to discontinued operations

2,520

2,563

Total current liabilities

9,069

8,636

Long term liabilities:

Deferred tax liabilities

14,704

15,262

Land lease liability, net

6,975

7,290

Other long term liabilities

2,402

2,844

Long term loans, net of current maturities

118,787

124,298

Total long term liabilities

142,868

149,694

Total shareholders' equity of Optibase Ltd

46,741

47,474

Non-controlling interests

18,934

19,078

Total shareholders' equity

65,675

66,552

Total liabilities and shareholders' equity

217,612

224,882

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

KEYWORDS: United States North America New York Middle East Israel

INDUSTRY KEYWORDS:

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