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, 2015.

Revenues from fixed income real estate totaled $3.7 million for the quarter ended June 30, 2015, compared to revenues of $3.6 million for the second quarter of 2014 and revenues of $3.3 million for the first quarter of 2015.

Loss attributable to Optibase Ltd shareholders for the quarter ended June 30, 2015 was $1.5 million or $0.29, compared to a net income of $159,000 or $0.03 per basic and diluted share for the second quarter of 2014.

For the six months ended June 30, 2015, loss was $1.6 million or $0.32, mainly attributed to acquisition related costs of $2.2 million related to the acquisition of the twenty-seven (27) supermarkets in Bavaria, Germany, compared to a net income of $373,000 or $0.07 per basic and diluted share for the six months ended June 30, 2014.

Weighted average shares outstanding used in the calculation for the periods were approximately 5.1 million basic and diluted shares for each period.

As of June 30, 2015, we had cash, cash equivalents and other financial investments, net, of $18.3 million, and shareholders' equity of $79.2 million, compared with $22.9 million, and $77.1 million, respectively, as of December 31, 2014.

As of the June 30, 2015 the Company has successfully completed the acquisition of twenty-five (25) supermarkets in Bavaria, Germany. The acquisition of two (2) additional properties was completed in July 2015, which completed the acquisition of the complete portfolio comprising of twenty-seven (27) supermarkets. For further information please refer to our 6K reports dated December 19, 2014, June 2, 2015 and July 8, 2015.

As of June 30, 2015, the portfolio purchase price has been allocated to real estate properties and other assets, net, in accordance with our accounting policies for business combinations. The purchase price allocation and the related accounting will be finalized once the valuation studies are completed. The Company’s net loss for the period of six months ended on June 30, 2015 includes acquisition-related costs of $2.2 million related to the acquisition of the twenty-seven (27) supermarkets in Bavaria, Germany.

Amir Philips, Chief Executive Officer of Optibase commented on the second quarter results and recent business developments: "We are very happy with the Company’s performance during the second quarter and the first half of 2015, both in terms of the ongoing operations of our existing real estate portfolio and later in July the completion in full of our first acquisition in Germany. For the period of six months ending June 30, 2015, we have experienced a slight decrease in our gross income, mainly due to the fluctuation of the Swiss Franc against the USD, compared to the same period in 2014. At the same time, our operating expenses, net of acquisition related costs, have decreased. Recently, we refinanced our Miami portfolio for a total of $15 million and completed a very successful bonds offering in Israel for a total of approximately $15 million. For more information on these recent transactions, please refer to our 6K reports filed with the SEC on July 8, 2015 and August 10, 2015. The availability of additional funds enhances our ability to approach prospective transactions, and while we are working diligently to embed our initial investment in the German market, we are exploring the markets for additional investment opportunities."

About Optibase

Optibase invests in the fixed-income real estate field and currently holds properties in Switzerland, in Germany, 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 Period Ended June 30, 2015
				Six months ended											Three months ended
				June 30					June 30						June 30					June 30
				2015					2014						2015					2014
				$					$						$					$
				Unaudited					Unaudited						Unaudited					Unaudited
Fixed income real estate rent				6,994						7,137					3,689						3,591
Cost and expenses:
Cost of real estate operation				1,338						1,394					713						691
Real estate depreciation and amortization				1,772						2,014					916						974
General and administrative				1,010						1,229					614						760
Acquisition related costs				2,165						-					1,801						-
Total cost and expenses				6,285						4,637					4,044						2,425
Operating income (loss)				709						2,500					(355	)					1,166
Equity share in losses of associates, net				(42	)					(75	)				(9	)					(29	)
Other Income				190						204					95						95
Financial expenses, net				(598	)					(565	)				(249	)					(254	)
Income (loss) before taxes on income				259						2,064					(518	)					978
Taxes on income				(776	)					(701	)				(397	)					(339	)
Net income (loss)				(517	)					1,363					(915	)					639
Net income attributable to non-controlling interests				1,131						990					594						480
Net income (loss) attributable to Optibase LTD				(1,648	)					373					(1,509	)					159
Net income (loss) per share :
Basic and Diluted				($0.32	)				$	0.07					($0.29	)				$	0.03
Number of shares used in computing Earnings per share
Basic				5,133						5,126					5,133						5,127
Diluted				5,133						5,131					5,133						5,130
Amounts in thousands

Condensed Consolidated Balance Sheets
				June 30,2015				December 31,2014
				Unaudited				Audited
Assets
Current Assets:
Cash and cash equivalents				18,273				22,902
Trade receivables				283				286
Other accounts receivables and prepaid expenses				422				1,396
Total current assets				18,978				24,584
Long term deposit				55				54
Investments in companies and associates				7,739				7,553
Long term investments				7,794				7,607
Real estate properties and other assets, net				221,876				185,813
Total assets				248,648				218,004
Liabilities and shareholders' equity
Current Liabilities:
Current maturities of long term loans				2,881				2,401
Short-term loan				5,590				-
Accounts payable and accrued expenses				4,931				4,991
Other short term liabilities				-				539
Total liabilities attributed to discontinued operations				2,141				2,153
Total current liabilities				15,543				10,084
Long term liabilities:
Deferred tax liabilities				15,128				14,237
Land lease liability, net				6,857				6,528
Long term loans, net of current maturities				131,885				110,080
Total long term liabilities				153,870				130,845
Total shareholders’ equity of Optibase Ltd				57,293				57,439
Non-controlling interests				21,942				19,636
Total shareholders' equity				79,235				77,075
Total liabilities and shareholders’ equity				248,648				218,004
Amounts in thousands

View source version on businesswire.com: http://www.businesswire.com/news/home/20150827005463/en/

Media:
Optibase Ltd.
Amir Philips, 011-972-73-7073-700
CEO
[email protected]
or
Investor Relations:
for Optibase
Marybeth Csaby, +1-917-664-3055
[email protected]

Source: Optibase Ltd.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Diana Shipping withdraws bid to acquire Genco Shipping
• bioAffinity Technologies closes $4M private placement via pre-funded warrants
• EMA validates Pfizer and Valneva's Lyme disease vaccine application