Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the second quarter ended June 30, 2011.
Revenues from fixed income real estate totaled $3.8 million for the quarter ended June 30, 2011, compared to revenues of $408,000 for the second quarter of 2010 and $1.4 million for the first quarter of 2011.
Net loss for the second quarter ended June 30, 2011 was $113,000 or $0.01 per basic and diluted share, compared to a net income of $1,000 or $0 per basic and diluted share for the second quarter of 2010 and to a net income of $1.3 million or $0.08 per basic and diluted for the first quarter of 2011.
Weighted average shares outstanding used in the calculation for the periods were approximately 18.1 million basic and diluted shares and 16.6 million basic and diluted shares respectively.For the six months ended June 30, 2011, net income was $1.1 million or $0.07 per basic and diluted share, compared to a net loss of $671,000 or $0.04 per basic and diluted share for the six months ended June 30, 2010. Weighted average shares outstanding used in the calculation were approximately 17.3 million basic and 17.4 million diluted shares for the second quarter of 2011 and 16.6 million basic and diluted shares for the second quarter of 2010. As of June 30, 2011, we had cash, cash equivalents, and other financial investments, net, of $12.9 million, and shareholders' equity of $74.8 million, compared with $10.4 million, and $66.1 million, respectively, as of March 31, 2011. Commenting on the quarter, CEO of Optibase, Amir Philips, said, “We are pleased with our second quarter operating results as our operating fundamentals have continued to stabilize and are in line with our expectations. Our equity as of June 30, 2011 was affected from the devaluation of the USD against the Swiss Franc to which we are partially exposed. Our primary indicators for our real estate operations are FFO and Earnings Before Interest, Taxes, Amortization and Depreciation ("EBITDA").” FFO is a supplemental non-GAAP financial measure used by the real estate industry to measure the operating performance of real estate companies. FFO should not be considered as a substitute for net income determined in accordance with U.S. GAAP as a measure of financial performance. Amir concluded, “We are still actively looking for additional investment opportunities. 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.”