Optibase Ltd. Announces Fourth Quarter Results

HERZLIYA, Israel--()--Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the fourth quarter ended December 31, 2013.

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

Net Income for the fourth quarter ended December 31, 2013 was $239,000 or $0.06 per basic and diluted share, compared to a net income of $497,000 or $0.13 per basic and diluted share for the fourth quarter of 2012 and to a net income of $328,000 or $0.09 per basic and diluted share for the third quarter of 2013.

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

For the year ended December 31, 2013, revenues totaled $13.7 million, compared with $13.7 million for the year ended December 31, 2012. Net income was $1.5 million or $0.38 per basic and diluted share, compared to a net income of $1.6 million or $0.41 per basic and diluted share for the year ended December 31, 2012.

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

As of December 31, 2013, we had cash, cash equivalents, restricted cash and other financial investments, net, of $19 million, and shareholders' equity of $78.9 million, compared with $18.3 million, and $70.2 million, respectively, as of September 30, 2013.

Amir Philips, Chief Executive Officer of Optibase, commented on the quarter and year's results: “During the fourth quarter, we have closed a transaction to purchase twelve luxury condominium units located in Miami Beach, Florida from our controlling shareholder in consideration for issuance of approximately 1.31 million newly issued shares of the company. This transaction has increased our portfolio in the Miami area, which is considered by many as an 'upcoming location.' For further information please see our press releases dated November 12, 2013.”

“Overall, we are pleased with our fourth quarter and full year performance maintaining stability and increasing our portfolio in what we consider a conservative manner," Amir concluded. “We will continue implementing our strategy into 2014, trying to maintain stability and create value for 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 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 December 31, 2013

 
    Year ended     Three months ended
December 31     December 31 December 31     December 31
2013 2012 2013 2012
$ $ $ $
Unaudited Unaudited Unaudited Unaudited
 
Fixed income real estate rent 13,711 13,676 3,463 3,449
Cost and expenses:
Cost of real estate operation 2,199 1,966 616 502
Real estate depreciation and amortization 3,369 2,569 935 654
General and administrative 1,870 2,068 714 504
Total cost and expenses 7,438 6,603 2,265 1,660
Operating income 6,273 7,073 1,198 1,789
 
Equity share in earnings (losses) of associates, net (172 ) (32 ) (96 ) (32 )
Other (loss) Income 384 (100 ) 95 -
Financial expenses & other, net (1,343 ) (1,243 ) (343 ) (143 )
 

Income before taxes on income

5,142

5,698

854

1,614
Taxes on income (1,518 ) (1,643 ) (128 ) (401 )
 
Net income 3,624 4,055 726 1,213
 
Net income attributable to non-controlling interests 2,159 2,478 487 716
Net income attributable to Optibase LTD 1,465 1,577 239 497
 
Net income per share :
Basic and Diluted $ 0.38 $ 0.41 $ 0.06 $ 0.13
 
 

Number of shares used in computing (*)

Earnings per share

Basic 3,822 3,818 3,823 3,819
Diluted 3,826 3,820 3,827 3,820
 

(*) Amounts in thousands

 
 

Condensed Consolidated Balance Sheets

               

December 31,

December 31,

2013

2012

 

Unaudited

Audited

Assets

Current Assets:
Cash and cash equivalents 18,811 19,142
Restricted cash 144 134
Trade receivables 279 148
Other accounts receivables and prepaid expenses 138 217
Total assets attributed to discontinued operations 675 980

Total current assets

20,047 20,621
 
Long term deposit 61 50
Investments in companies and associates 7,738 7,993
Long term investments 7,799 8,043
 
Real Estate Property, net 209,761 194,826
Other assets, net 1,141 1,392
Total property equipment and other assets 210,902 196,218
 
Total assets 238,748 224,882
 

Liabilities and shareholders' equity

Current Liabilities:
Current maturities of long term loans 2,669 2,597
Accounts payable and accrued expenses 5,131 3,476
Total liabilities attributed to discontinued operations 2,135 2,563
Total current liabilities 9,935 8,636
 
Long term liabilities:
Deferred tax liabilities 15,815 15,262
Land lease liability, net 7,374 7,290
Other long term liabilities 1,628 2,844
Long term loans, net of current maturities 125,072 124,298
Total long term liabilities 149,889 149,694
 

Total shareholders’ equity of Optibase Ltd.

57,063 47,474
Non-controlling interests 21,861

 

19,078

Total shareholders' equity 78,924

 

66,552

 
Total liabilities and shareholders’ equity 238,748

 

224,882

 
Amounts in thousands

Contacts

Media Contacts:
Optibase Ltd.
Amir Philips, CEO
011-972-73-7073-700
info@optibase-holdings.com
or
Investor Relations Contact:
for Optibase
Marybeth Csaby
+1-917-664-3055
Marybeth.Csaby@gmail.com

Release Summary

Optibase Ltd. (NASDAQ: OBAS) announced financial results for the fourth quarter ended December 31, 2013

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Contacts

Media Contacts:
Optibase Ltd.
Amir Philips, CEO
011-972-73-7073-700
info@optibase-holdings.com
or
Investor Relations Contact:
for Optibase
Marybeth Csaby
+1-917-664-3055
Marybeth.Csaby@gmail.com