Report of Foreign Issuer (6-k)

Date : 05/30/2018 @ 10:01AM
Source : Edgar (US Regulatory)
Stock : Optibase Ltd. - Ordinary Shares (OBAS)
Quote : 9.05  0.45 (5.23%) @ 4:00PM

Report of Foreign Issuer (6-k)


 
FORM 6-K
  
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
Date of Report: May 30, 2018
Commission File No.: 000-29992
 
OPTIBASE LTD.
(Translation of registrant’s name into English)

8 Hamanofim Street
Herzliya 4672559, Israel
+972-73-7073700
 (Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ☒ Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ 
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. 
 
Yes ☐ No ☒
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________   
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled “Optibase Ltd. announces first quarter results”.
 
Signatures  
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 
 
 
 
OPTIBASE LTD.
(the “Registrant”)

By: /s/ Amir Philips
——————————————
Amir Philips
Chief Executive Officer
 
Date: May 30, 2018
 

 
Media Contacts:
Amir Philips, CEO, Optibase Ltd.
011-972-73-7073-700
info@optibase-holdings.com

Investor Relations Contact:
Marybeth Csaby, for Optibase
+1- 917-664-3055
Marybeth.Csaby@gmail.com
 
OPTIBASE LTD. ANNOUNCES FIRST QUARTER RESULTS

HERZLIYA, Israel, May 30, 2018 – Optibase Ltd. (NASDAQ: OBAS)   today announced financial results for the first quarter ended March 31, 2018.

Revenues from fixed income real estate totaled $4.3 million for the quarter ended March 31, 2018, compared to revenues of $4 million for the first quarter of 2017.

Net loss attributable to Optibase Ltd shareholders for the quarter ended March 31, 2018 was $672,000 or $0.13 per basic and diluted share compared to net loss of $515,000 or $0.10 per basic and diluted share for the first quarter of 2017.

Weighted average shares outstanding used in the calculation for the periods were approximately 5.2 million basic and diluted shares for each period.

As of March 31, 2018, we had cash and cash equivalents of $21 million, and shareholders' equity of $78.3 million, compared with $20.3 million, and $77.1 million, respectively, as of December 31, 2017.
 
Amir Philips, Chief Executive Officer of Optibase commented on the first quarter results: ”This quarter results are stable compared to the previous quarter and the first quarter of 2017 in our fixed income real estate rent and operating income, while our net loss has increased somewhat due mostly to increased Equity share in losses of associates, net. For the first quarter of 2018 we generated NOI of $3.5 million representing a 7% increase over the same period in 2017. In addition, for the first quarter of 2018, our Recurring FFO increased to $740,000 compared to Recurring FFO of $304,000 for the first   quarter of 2017." Mr. Philips concluded: “We are working to maintain our basic parameters and to increase our financial stability as we progress through 2018.”


 
OPTIBASE REPORTS/2

ACCOUNTING AND OTHER DISCLOSURES
 
Non-GAAP Net Operating Income, or NOI, is a non-GAAP financial measure. The most directly comparable GAAP financial measure is operating income, which, to calculate NOI, is adjusted to add back real estate depreciation, and amortization, general and administrative expenses and other operation expenses less gain on sale of operating properties. We use NOI internally as a performance measure and believe that NOI (when combined with the primary GAAP presentations) provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense item that are incurred at the property level.

We consider the NOI to be an appropriate supplemental non-GAAP measure to operating income because it assists management, and thereby investors, to understand the core property operations prior to depreciation and amortization expenses and general and administrative costs. In addition, because prospective buyers of real estate have different overhead structures, with varying marginal impact to overhead by acquiring real estate, we consider the NOI to be a useful measure for determining the value of a real estate asset or groups of assets.
 
The metric NOI should only be considered as supplemental to the metric operating income as a measure of our performance. NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. NOI should also not be used as a supplement to, or substitute for, cash flow from operating activities (computed in accordance with generally accepted accounting principles in the United States).
 
Non-GAAP Funds from operation, or FFO, is a non-GAAP financial measure. The most directly comparable GAAP financial measure is net income, which, to calculate FFO, is adjusted to add back depreciation and amortization and after adjustments for unconsolidated associates. We make certain adjustments to FFO, which it refers to as Non-GAAP recurring FFO or recurring FFO, to account for items we do not believe are representative of ongoing operating results, including transaction costs associated with acquisitions. We use FFO internally as a performance measure and we believe FFO (when combined with the primary GAAP presentations) is a useful, supplemental measure of our operating performance as it’s a recognized metric used extensively by the real estate industry. We also believe that Recurring FFO is a useful, supplemental measure of our core operating performance. The company believes that financial analysts, investors and shareholders are better served by the presentation of operating results generated from its FFO and Recurring FFO measures.
 
We consider the FFO and Recurring FFO to be an appropriate supplemental non-GAAP measure to operating income because it assists management, and thereby investors, in analyzing our operating performance.
 
The metric’s FFO and Recurring FFO should only be considered as supplemental to the metric net income as a measure of our performance. FFO (i) does not represent cash flow from operations as defined by GAAP, (ii) is not indicative of cash available to fund all cash flow needs, including the ability to make distributions, (iii) is not an alternative to cash flow as a measure of liquidity, and (iv) should not be considered as an alternative to net income (which is determined in accordance with GAAP) for purposes of evaluating our operating performance.
 
2

OPTIBASE REPORTS/3
 
Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data
 
A reconciliation of operating income to NOI is as follows:
 
   
Three months ended
 
   
March 31
   
March 31
 
   
2018
   
2017
 
   
$
   
$
 
   
Unaudited
   
Unaudited
 
             
GAAP Operating income
   
1,663
     
1,643
 
                 
Adjustments:
               
Real estate depreciation and amortization
   
1,097
     
1,038
 
                 
General and administrative
   
776
     
626
 
                 
Non-GAAP Net Operating Income NOI
   
3,536
     
3,307
 
 
A reconciliation of net   income to FFO and Recurring FFO is as follows:

   
Three months ended
 
   
March 31
   
March 31
 
   
2018
   
2017
 
   
$
   
$
 
   
Unaudited
   
Unaudited
 
             
GAAP Net loss attributable to Optibase LTD
   
(672
)
   
(515
)
                 
Adjustments :
               
Real estate depreciation and amortization
   
1,097
     
1,038
 
                 
Pro-rata share of real estate depreciation and amortization from unconsolidated associates
   
602
     
60
 
                 
Non-controlling interests share in the above adjustments
   
(287
)
   
(279
)
                 
Non-GAAP Funds From Operation (FFO)
   
740
     
304
 
                 
Non-GAAP Recurring Funds From Operation (Recurring FFO)
   
740
     
304
 
                 
Amounts in thousands                
 

3

OPTIBASE REPORTS/4
 
About Optibase
Optibase invests in the fixed-income real estate field and currently holds properties and beneficial interest in   real-estate assets and projects in Switzerland, Germany and in Texas, Philadelphia, PA and Miami, FL, Chicago, IL, 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 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.

4

OPTIBASE REPORTS/5

Optibase Ltd.
Condensed Consolidated Statement of Operations
For the Period Ended March 31, 2018

   
Three months ended
 
   
March 31
   
March 31
 
   
2018
   
2017
 
   
$
   
$
 
   
Unaudited
   
Unaudited
 
             
Fixed income real estate rent
   
4,306
     
4,027
 
Cost and expenses:
               
Cost of real estate operations
   
770
     
720
 
Real estate depreciation and amortization
   
1,097
     
1,038
 
General and administrative
   
776
     
626
 
       Total cost and expenses
   
2,643
     
2,384
 
Operating income
   
1,663
     
1,643
 
                 
Other Income
   
161
     
161
 
Financial expenses, net
   
(727
)
   
(890
)
Income before taxes on income
   
1,097
     
914
 
Taxes on income
   
(382
)
   
(415
)
Equity share in losses of associates, net
   
(820
)
   
(492
)
                 
Net (loss) income
   
(105
)
   
7
 
                 
Net income attributable to non-controlling interests
   
567
     
522
 
Net loss attributable to Optibase LTD
   
(672
)
   
(515
)
                 
Net loss per share :
               
Basic and Diluted
 
(0.13
)
 
(0.10
)
                 
Number of shares used in computing earnings losses per share
               
Basic
   
5,184
     
5,180
 
Diluted
   
5,184
     
5,180
 
                 
Amounts in thousands                
 

5

OPTIBASE REPORTS/6
Condensed Consolidated Balance Sheets

   
March 31,
2018
   
December 31,
2017
 
   
Unaudited
   
Audited
 
Assets
           
             
Current Assets:
           
Cash and cash equivalents
   
21,011
     
20,268
 
Restricted cash
   
139
     
292
 
Trade receivables, net
   
565
     
332
 
Other accounts receivables and prepaid expenses
   
549
     
506
 
Total current assets
   
22,264
     
21,398
 
                 
Long term investments:
               
Other long term deposits
   
3,308
     
3,483
 
Investments in companies and associates
   
16,670
     
17,556
 
Total Long term investments
   
19,978
     
21,039
 
                 
Property and other assets, net:
               
Real estate properties, net
   
220,600
     
216,726
 
Other assets, net
   
142
     
140
 
Total property and other assets
   
220,742
     
216,866
 
                 
Total assets
   
262,984
     
259,303
 
                 
Liabilities and shareholders' equity
               
                 
Current Liabilities:
               
Current maturities of long term loans and bonds
   
6,602
     
6,048
 
Accounts payable and accrued expenses
   
4,272
     
4,362
 
Liabilities attributed to discontinued operations
   
2,061
     
2,061
 
Total current liabilities
   
12,935
     
12,471
 
                 
Long term liabilities:
               
Deferred tax liabilities
   
14,296
     
14,042
 
Land lease liability, net
   
6,409
     
6,295
 
Other long term liabilities
   
295
     
294
 
Loan from controlling shareholder
   
4,932
     
4,886
 
Long term loans, net of current maturities
   
137,449
     
135,774
 
Long term bonds, net of current maturities
   
8,377
     
8,473
 
Total long term liabilities
   
171,758
     
169,764
 
                 
Shareholders’ equity:
               
Shareholders’ equity of Optibase Ltd
   
57,246
     
57,037
 
Non-controlling interests
   
21,045
     
20,031
 
Total shareholders' equity
   
78,291
     
77,068
 
                 
Total liabilities and shareholders’ equity
   
262,984
     
259,303
 
                 
Amounts in thousands
               
 
6

 
 

Optibase Ltd. - Ordinary Shares (NASDAQ:OBAS)
Historical Stock Chart

1 Year : From Jun 2017 to Jun 2018

Click Here for more Optibase Ltd. - Ordinary Shares Charts.

Optibase Ltd. - Ordinary Shares (NASDAQ:OBAS)
Intraday Stock Chart

Today : Friday 22 June 2018

Click Here for more Optibase Ltd. - Ordinary Shares Charts.

Latest OBAS Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.