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
Unaudited $Unaudited $
Fixed income real estate rent3,4343,487
Cost and expenses:
Cost of real estate operation505487
Real estate depreciation and amortization778663
General and administrative387424
Total cost and expenses1,6701,574
Operating income1,7641,913
Equity share in earnings (losses) of associates, net(88)-

Financial income (expenses) and other, net


Income before taxes on income


Taxes on income(548)(533)
Net income8991,627
Net income attributable to non-controlling interests620723
Net income attributable to Optibase LTD279904
Net earnings per share:
Basic and diluted$0.07$0.24

Number of shares used in computing Earnings per share:


Amounts in thousands

Condensed Consolidated Balance Sheets


March 31,


December 31,



Current Assets:
Cash and cash equivalents18,87119,142
Restricted cash137134
Trade receivables522148
Other accounts receivables and prepaid expenses274217
Assets related to discontinued operations980980
Total current assets20,78420,621
Long term investments8,6058,043
Real Estate Property, net186,935194,826
Other assets, net1,2881,392
Total property and other assets188,223196,218
Total assets217,612224,882

Liabilities and shareholders' equity

Current Liabilities:
Current maturities of long term loans2,4952,597
Accrued payable and accrued expenses4,0543,476
Liabilities related to discontinued operations2,5202,563
Total current liabilities9,0698,636
Long term liabilities:
Deferred tax liabilities14,70415,262
Land lease liability, net6,9757,290
Other long term liabilities2,4022,844
Long term loans, net of current maturities118,787124,298
Total long term liabilities142,868149,694
Total shareholders' equity of Optibase Ltd46,74147,474
Non-controlling interests18,93419,078
Total shareholders' equity65,67566,552
Total liabilities and shareholders' equity217,612224,882
Amounts in thousands

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

KEYWORDS:   United States  North America  New York  Middle East  Israel


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