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Form 6-K OPTIBASE LTD For: Apr 01

April 1, 2015 9:52 AM EDT


FORM 6-K
  
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
Date of Report: April 1, 2015
 
Commission File No.: 000-29992
 
OPTIBASE LTD.
(Translation of registrant’s name into English)

10 Hasadnaot Street
Herzliya 4672837, Israel
+972-73-7073700
 (Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F S    Form 40-F £
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ 
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. 
 
Yes £     No S
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________   
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled “Optibase Ltd. announces fourth quarter results”.
 
Signatures
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 
 
   
OPTIBASE LTD.
(the “Registrant”)
 
By: /s/ Amir Philips
——————————————
Amir Philips
Chief Executive Officer
 
Date: April 1, 2015
 
 
 

 
 
Media Contacts:
Amir Philips, CEO, Optibase Ltd.
011-972-73-7073-700

Investor Relations Contact:
Marybeth Csaby, for Optibase
+1- 917-664-3055
 
OPTIBASE LTD. ANNOUNCES FOURTH QUARTER RESULTS
 
HERZLIYA, Israel, April 1, 2015 – Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the fourth quarter ended December 31, 2014.

Revenues from fixed income real estate totaled $3.3 million for the quarter ended December 31, 2014, compared to revenues of $3.5 million for the fourth quarter of 2013.

Net Income attributable to Optibase Ltd shareholders for the quarter ended December 31, 2014 was $2.8 million or $0.54 per basic and diluted share, compared to a net income of $239,000 or $0.06 per basic and diluted share for the fourth quarter of 2013.

For the year ended December 31, 2014, revenues totaled $13.9 million compared with $13.7 million for the year ended December 31, 2013. Net income was $3.3 million or $0.65 per basic and diluted share, compared to a net income of $1.5 million or $0.38 per basic and diluted share for the year ended December 31, 2013.

Weighted average shares outstanding used in the calculation for the periods were approximately 5.1 million basic and diluted shares and 3.8 million basic and diluted shares, respectively.

As of December 31, 2014, we had cash, cash equivalents, restricted cash and other financial investments, net, of $23 million, and a total shareholders' equity of $77 million, compared with $19 million, and $79 million, respectively, as of December 31, 2013.

On October 20, 2014, we announced the successful closing of a transaction to sell eleven (11) luxury condominium units located in the Flamingo-South Beach One Condominium in Miami Beach, Florida (the “Flamingo”), for an aggregated gross price of $6.4 million (the “Transaction”). The Company recorded a net gain of $2.7 million resulting from the Transaction. For further details on the Transaction, see the Company’s report on Form 6-K as filed with the Securities and Exchange Commission on October 20, 2014.

Amir Philips, Chief Executive Officer of Optibase commented on the quarter and years' results; "During the fourth quarter and 2014 we have continued showing stability in our operating results. In addition, this quarter and the year results show improvement due to the sale of the Flamingo units which as stated in previous quarters, provide evidence of our ability to produce accretive returns on our investments”. Mr. Philips concluded; “We are looking forward for 2015 to continue improving our operating results, cash flows and other fundamental parameters and working diligently to add quality assets to our portfolio and bring value to our shareholders”.

 
 

 

About Optibase

Optibase invests in the fixed-income real estate field and currently holds properties in Switzerland and in Miami, Texas and Philadelphia, 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 press 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 Year Ended December 31, 2014
 
   
Year ended
   
Three months ended
 
   
December 31
   
December 31
   
December 31
   
December 31
 
   
2014
   
2013
   
2014
   
2013
 
    $     $     $     $  
   
Audited
   
Audited
   
Unaudited
   
Unaudited
 
                                 
Fixed income real estate rent
    13,938       13,711       3,325       3,463  
Cost and expenses:
                               
Cost of real estate operation
    2,777       2,199       608       616  
Real estate depreciation and amortization
    3,813       3,369       859       935  
General and administrative
    2,167       1,870       512       714  
       Total cost and expenses
    8,757       7,438       1,979       2,265  
Gain on sale of operating properties
    2,709       -       2,709       -  
Operating income
    7,890       6,273       4,055       1,198  
                                 
Equity share in losses of associates, net
    (186 )     (172 )     (59 )     (96 )
Other Income
    394       384       95       95  
Financial expenses, net
    (1,151 )     (1,343 )     (326 )     (343 )
Income before taxes on income
    6,947       5,142       3,765       854  
Taxes on income
    (1,502 )     (1,518 )     (418 )     (128 )
                                 
Net income
    5,445       3,624       3,347       726  
                                 
Net income attributable to non-controlling interests
    2,106       2,159       590       487  
Net income attributable to Optibase LTD
    3,339       1,465       2,757       239  
                                 
Net income per share :
                               
Basic and Diluted
  $ 0.65     $ 0.38     $ 0.54     $ 0.06  
                                 
Number of shares used in computing earnings per share
                               
Basic
    5,127       3,822       5,127       3,823  
Diluted
    5,131       3,826       5,135       3,827  

Amounts in thousands
 
 
 

 
 
Condensed Consolidated Balance Sheets

   
December 31,
2014
   
December 31,
2013
 
   
Audited
   
Audited
 
Assets
           
Current Assets:
           
Cash and cash equivalents
    22,902       18,811  
Restricted cash
    -       144  
Trade receivables
    286       279  
Other accounts receivables and prepaid expenses
    1,396       138  
Total assets attributed to discontinued operations
    -       675  
        Total current assets
    24,584       20,047  
                 
Long term deposit
    54       61  
Investments in companies and associates
    7,553       7,738  
Long term investments
    7,607       7,799  
                 
Real Estate Property, net
    185,204       209,761  
Other assets, net
    609       1,141  
       Total property equipment and other assets
    185,813       210,902  
                 
Total assets
    218,004       238,748  
                 
Liabilities and shareholders' equity
               
Current Liabilities:
               
Current maturities of long term loans
    2,401       2,669  
Accounts payable and accrued expenses
    4,991       5,131  
Other short term liabilities
    539       -  
Total liabilities attributed to discontinued operations
    2,153       2,135  
        Total current liabilities
    10,084       9,935  
                 
Long term liabilities:
               
Deferred tax liabilities
    14,237       15,815  
Land lease liability, net
    6,528       7,374  
Other long term liabilities
    -       1,628  
Long term loans, net of current maturities
    110,080       125,072  
         Total long term liabilities
    130,845       149,889  
                 
Total shareholders’ equity of Optibase Ltd
    57,439       57,063  
Non-controlling interests
    19,636       21,861  
       Total shareholders' equity
    77,075       78,924  
                 
Total liabilities and shareholders’ equity
    218,004       238,748  
                 
Amounts in thousands
               





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