Optibase Ltd. Announces Third Quarter Results

Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the third quarter ended September 30, 2012.

Revenues from fixed income real estate totaled $3.3 million for the quarter ended September, 2012, compared to revenues of $4 million for the third quarter of 2011 and $3.4 million for the second quarter of 2012.

Net Income for the third quarter ended September 30, 2012 was $464,000 or $0.12 per basic and diluted share, compared to a net loss of $1.2 million or $0.31 per basic and diluted share for the third quarter of 2011 and to a net loss of $289,000 or $0.08 per basic and diluted for the second quarter of 2012.

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

For the nine months ended September 30, 2012, revenues totaled $10.2 million, compared with $9.1 million for the nine months ended September 30, 2011. Net income was $1 million or $0.28 per basic and diluted share, compared to a net loss of $23,000 or $0.01 per basic and diluted share for the nine months ended September 30, 2011.

Weighted average shares outstanding used in the calculation were approximately 3.8 million basic and diluted shares and 3.6 million basic and diluted shares respectively.

As of September 30, 2012, we had cash, cash equivalents, restricted cash and other financial investments, net, of $26.2 million, and shareholders' equity of $64.3 million, compared with $25.9 million, and $62.3 million, respectively, as of June 30, 2012.

Amir Philips, Chief Executive Officer of Optibase commented on the results of the third quarter of 2012: “We are pleased with our year to date operating results as our operating fundamentals continued to stabilize. We continued to execute on our strategy of diversifying and upgrading the quality of our portfolio and have recently completed the acquisition of a 19.66% beneficial interest in Two Penn Center Plaza, Philadelphia for approximately $4 million. 2 Penn Center Plaza has approximately 500,000 rentable square feet and is located in the Center City neighborhood of Philadelphia opposite City Hall and Love Park. For further information, please refer to our announcement dated October 12, 2012”. Amir concluded, “We are currently involved with additional investment opportunities which we hope will materialize in the coming months.”

About Optibase

Optibase invests in the fixed-income real estate field and currently holds properties in Switzerland and Miami, FL, 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 September 30, 2012

 
   
Nine months ended Three months ended
September 30   September 30 September 30   September 30
2012 2011 2012 2011
$ $ $ $
Unaudited Unaudited Unaudited Unaudited
 
Fixed income real estate rent 10,227 9,102 3,309 3,962
 
Cost and expenses:
Cost of real estate operation 1,464 1,387 459 608
Real estate depreciation and amortization 1,915 1,541 628 618
General and administrative 1,565 2,459 638 544
Total cost and expenses 4,944 5,387 1,725 1,770
 
Operating income 5,283 3,715 1,584 2,192
 
Other income (loss) (100 ) 4,194 - -
Financial expenses, net (1,086 ) (6,157 ) (126 ) (3,940 )

Income (loss) before taxes on income

4,097
1,752

1,458
(1,748 )
Taxes on income (1,242 ) (24 ) (370 ) 195
 
Net income (loss) from continuing operation 2,855 1,728 1,088 (1,553 )
Net income (loss) from discontinued operation (14 ) (47 ) (41 ) 64
 
Net income (loss) 2,841 1,681 1,047 (1,489 )
 
Net income (loss) attributable to non-controlling interests 1,762 1,704 583 (317 )
Net income (loss) attributable to Optibase LTD 1,079 (23 ) 464 (1,172 )
 
Net income (loss) per share from continuing operation:
Basic and Diluted $ 0.29 $ 0.01 $ 0.13 ($0.32 )
 
Net income (loss) per share from discontinuing operation:
Basic and Diluted ($0.0 ) ($0.01 ) ($0.01 ) $ 0.02
 
Net income (loss) per share:
Basic and Diluted $ 0.28 ($0.01 ) $ 0.12 ($0.31 )
 
Number of shares used in computing (*)

Earning per share
Basic 3,818 3,584 3,819 3,815
Diluted 3,819 3,595 3,820 3,826
 

Amounts in thousands

(*) All shares, options, and earnings per share amounts have been retroactively adjusted for all periods presented to reflect the 1:5 reverse stock split approved by the Company’s board of directors and shareholders on July 2, 2012 and August 16, 2012 respectively.

 

 

 

 

Condensed Consolidated Balance Sheets
 

September 30,

2012

December 31,

2011

Unaudited

Audited

Assets
Current Assets:
Cash and cash equivalents 26,064 22,945
Restricted cash 128 131
Trade receivables 343 732
Other accounts receivables and prepaid expenses 257 1,260
Total assets attributed to discontinued operations 966 969
Total current assets 27,758 26,037
 
Long term investments 62 156
 
Equipment, net 5 7
Real Estate Property, net 191,151 192,173
Other assets, net 1,400 1,512
Total property equipment and other assets 192,556 193,692
 
Total assets 220,376 219,885
 

Liabilities and shareholders' equity
Current Liabilities:
Current maturities of long term loans 2,539 2,529
Trade payables 19 27
Other accounts payable and accrued expenses 3,578 4,130
Total liabilities attributed to discontinued operations 2,746 2,990
Total current liabilities 8,882 9,676
 
Long term liabilities:
Deferred tax liabilities 14,761 14,608
Land lease liability, net 7,146 7,175
Other long term liabilities 3,084 3,559
Long term loans, net of current maturities 122,182 123,606
Total long term liabilities 147,173 148,948
 
Total shareholders’ equity of Optibase Ltd 46,379 45,099
Non-controlling interests 17,942

 

16,162
Total shareholders' equity 64,321

 

61,261
 
Total liabilities and shareholders’ equity 220,376

 

219,885
 
Amounts in thousands
 

Copyright Business Wire 2010

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