OBAS Optibase Ltd

Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the fourth quarter ended December 31, 2014.

Revenues from fixed income real estate totaled $3.3 million for the quarter ended December 31, 2014, compared to revenues of $3.5 million for the fourth quarter of 2013.

Net Income attributable to Optibase Ltd shareholders for the quarter ended December 31, 2014 was $2.8 million or $0.54 per basic and diluted share, compared to a net income of $239,000 or $0.06 per basic and diluted share for the fourth quarter of 2013.

For the year ended December 31, 2014, revenues totaled $13.9 million compared with $13.7 million for the year ended December 31, 2013. Net income was $3.3 million or $0.65 per basic and diluted share, compared to a net income of $1.5 million or $0.38 per basic and diluted share for the year ended December 31, 2013.

Weighted average shares outstanding used in the calculation for the periods were approximately 5.1 million basic and diluted shares and 3.8 million basic and diluted shares, respectively.

As of December 31, 2014, we had cash, cash equivalents, restricted cash and other financial investments, net, of $23 million, and a total shareholders' equity of $77 million, compared with $19 million, and $79 million, respectively, as of December 31, 2013.

On October 20, 2014, we announced the successful closing of a transaction to sell eleven (11) luxury condominium units located in the Flamingo-South Beach One Condominium in Miami Beach, Florida (the “Flamingo”), for an aggregated gross price of $6.4 million (the “Transaction”). The Company recorded a net gain of $2.7 million resulting from the Transaction. For further details on the Transaction, see the Company’s report on Form 6-K as filed with the Securities and Exchange Commission on October 20, 2014.

Amir Philips, Chief Executive Officer of Optibase, commented on the quarter and years' results: "During the fourth quarter and 2014 we have continued showing stability in our operating results. In addition, this quarter and the year results show improvement due to the sale of the Flamingo units which as stated in previous quarters, provide evidence of our ability to produce accretive returns on our investments.” Mr. Philips concluded: “We are looking forward for 2015 to continue improving our operating results, cash flows and other fundamental parameters and working diligently to add quality assets to our portfolio and bring value to 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 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 Year Ended December 31, 2014

 

  Year ended Three months ended December 31   December 31 December 31   December 31 2014 2013 2014 2013 $ $ $ $ Audited Audited Unaudited Unaudited   Fixed income real estate rent 13,938 13,711 3,325 3,463 Cost and expenses: Cost of real estate operation 2,777 2,199 608 616 Real estate depreciation and amortization 3,813 3,369 859 935 General and administrative 2,167 1,870 512 714 Total cost and expenses 8,757 7,438 1,979 2,265 Gain on sale of operating properties 2,709 - 2,709 - Operating income 7,890 6,273 4,055 1,198   Equity share in losses of associates, net (186 ) (172 ) (59 ) (96 ) Other Income 394 384 95 95 Financial expenses, net (1,151 ) (1,343 ) (326 ) (343 )  

Income before taxes on income

6,947

5,142 3,765 854 Taxes on income (1,502 ) (1,518 ) (418 ) (128 )     Net income 5,445 3,624 3,347 726   Net income attributable to non-controlling interests 2,106 2,159 590 487 Net income attributable to Optibase LTD 3,339 1,465 2,757 239   Net income per share : Basic and Diluted $ 0.65 $ 0.38 $ 0.54 $ 0.06     Number of shares used in computing earnings per share Basic 5,127 3,822 5,127 3,823 Diluted 5,131 3,826 5,135 3,827  

Amounts in thousands

       

Condensed Consolidated Balance Sheets

  December 31,

2014

December 31,

2013

Audited Audited

Assets

Current Assets: Cash and cash equivalents 22,902 18,811 Restricted cash - 144 Trade receivables 286 279 Other accounts receivables and prepaid expenses 1,396 138 Total assets attributed to discontinued operations - 675 Total current assets 24,584 20,047   Long term deposit 54 61 Investments in companies and associates 7,553 7,738 Long term investments 7,607 7,799   Real Estate Property, net 185,204 209,761 Other assets, net 609 1,141 Total property equipment and other assets 185,813 210,902   Total assets 218,004 238,748  

Liabilities and shareholders' equity

Current Liabilities: Current maturities of long term loans 2,401 2,669 Accounts payable and accrued expenses 4,991 5,131 Other short term liabilities 539 - Total liabilities attributed to discontinued operations 2,153 2,135 Total current liabilities 10,084 9,935   Long term liabilities: Deferred tax liabilities 14,237 15,815 Land lease liability, net 6,528 7,374 Other long term liabilities - 1,628 Long term loans, net of current maturities 110,080 125,072 Total long term liabilities 130,845 149,889   Total shareholders’ equity of Optibase Ltd 57,439 57,063 Non-controlling interests 19,636 21,861 Total shareholders' equity 77,075 78,924   Total liabilities and shareholders’ equity 218,004 238,748   Amounts in thousands

Media Contacts:Optibase Ltd.Amir Philips, CEO011-972-73-7073-700info@optibase-holdings.comorInvestor Relations Contact:Marybeth Csaby, for Optibase+1- 917-664-3055Marybeth.Csaby@gmail.com