Optibase Ltd. Announces Second Quarter Results

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 endedThree months ended
June 30

June 30

June 30June 30






Fixed income real estate rent



Cost and expenses:
Cost of real estate operation1,0641,005559518
Real estate depreciation and amortization1,5971,286819623
General and administrative784928397504
Total cost and expenses3,4453,2191,7751,645
Operating income3,3933,6991,6291,786
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 income2,1511,7941,253167
Net income attributable to non-controlling interests1,2531,179634456
Net income (loss) attributable to Optibase LTD898615619(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

Amount in thousands

Condensed Consolidated Balance Sheets


June 30,

December 31,








Current Assets:
Cash and cash equivalents17,42819,142
Restricted cash138134
Trade receivables307148
Other accounts receivables and prepaid expenses141217
Assets related to discontinued operations675980
Total current assets18,68920,621
Long term investments8,0598,043
Real Estate Property, net191,332194,826
Other assets, net1,2521,392
Total property and other assets192,584196,218
Total assets219,332224,882

Liabilities and shareholders' equity

Current Liabilities:
Current maturities of long term loans2,5192,597
Accrued payable and accrued expenses4,0273,476
Liabilities related to discontinued operations2,2352,563
Total current liabilities8,7818,636
Long term liabilities:
Deferred tax liabilities14,92715,262
Land lease liability, net7,0147,290
Other long term liabilities1,9252,844
Long term loans, net of current maturities119,296124,298
Total long term liabilities143,162149,694
Total shareholders' equity of Optibase Ltd47,63947,474
Non-controlling interests19,75019,078
Total shareholders' equity67,38966,552
Total liabilities and shareholders' equity219,332224,882
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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