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Optibase Ltd. Announces First Quarter Results

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Optibase Ltd. (NASDAQ:OBAS) today announced financial results for the first quarter ended March 31, 2015.

Revenues from fixed income real estate totaled $3.3 million for the quarter ended March 31, 2015, compared to revenues of $3.5 million for the first quarter of 2014.

Net Loss attributable to Optibase Ltd shareholders for the quarter ended March 31, 2015 was ($139,000) or ($0.03) per basic and diluted share, compared to a net income of $214,000 or $0.04 per basic and diluted share for the first quarter of 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 March 31, 2015, we had cash, cash equivalents and other financial investments, net, of $22.3 million, and shareholders’ equity of $78.7 million, compared with $22.9 million, and $77.1 million, respectively, as of December 31, 2014.

The results for the first quarter of 2015 include acquisition related costs of $364,000 incurred by acquisition of retail portfolio of 27 commercial properties in, Germany. For further details please see our announcement dated December 19, 2014.

Amir Philips, Chief Executive Officer of Optibase, commented on the first quarter results; “During the first quarter we continued operating our real estate portfolio and were able to lower our operating costs. Acquisition related expenses, attributed to a new transaction in Germany, have affected the quarter results, resulting in a net loss which does not reflect our ongoing operating stability. Overall we believe our operating fundamentals remain stable and we expect the completion of our acquisition in Germany by the end of the second quarter while at the same time we continue looking for additional opportunities to further expand our real estate portfolio.”

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 Period Ended March 31, 2015

Three months ended
March 31 March 31
2015 2014
$ $
Unaudited Unaudited
Fixed income real estate rent 3,305 3,546
Cost and expenses:
Cost of real estate operation 625 703
Real estate depreciation and amortization 856 1,040
General and administrative 396 469
Acquisition related costs 364
Total cost and expenses 2,241 2,212
Operating income 1,064 1,334
Equity share in losses of associates, net (33 ) (46 )
Other Income 95 109
Financial expenses, net (349 ) (311 )

Income before taxes on income

777 1,086
Taxes on income (379 ) (362 )
Net income 398 724
Net income attributable to non-controlling interests 537 510
Net income (Loss) attributable to Optibase LTD (139 ) 214
Net income (Loss) per share :
Basic and Diluted $ (0.03 ) $ 0.04
Number of shares used in computing Earnings per share
Basic 5,133 5,126
Diluted 5,133 5,135

Amounts in thousands

Condensed Consolidated Balance Sheets

March 31,

2015

December 31,

2014

Unaudited Audited

Assets

Current Assets:
Cash and cash equivalents 22,319 22,902
Trade receivables 300 286
Other accounts receivables and prepaid expenses 1,942 1,396
Total current assets 24,561 24,584
Long term deposit 52 54
Investments in companies and associates 7,520 7,553
Long term investments 7,572 7,607
Real Estate Property, net 189,466 185,204
Other assets, net 572 609
Total property equipment and other assets 190,038 185,813
Total assets 222,171 218,004

Liabilities and shareholders’ equity

Current Liabilities:
Current maturities of long term loans 2,463 2,401
Accounts payable and accrued expenses 4,876 4,991
Other short term liabilities 404 539
Total liabilities attributed to discontinued operations 2,139 2,153
Total current liabilities 9,882 10,084
Long term liabilities:
Deferred tax liabilities 14,601 14,237
Land lease liability, net 6,671 6,528
Long term loans, net of current maturities 112,328 110,080
Total long term liabilities 133,600 130,845
Total shareholders’ equity of Optibase Ltd 58,012 57,439
Non-controlling interests 20,677 19,636
Total shareholders’ equity 78,689 77,075
Total liabilities and shareholders’ equity 222,171 218,004
Amounts in thousands

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