Optibase Ltd. Announces Fourth Quarter Results

  Optibase Ltd. Announces Fourth Quarter Results

Business Wire

HERZLIYA, Israel -- March 14, 2013

Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the fourth
quarter ended December 31, 2012.

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

Net Income for the fourth quarter ended December 31, 2012 was $497,000 or
$0.13 per basic and diluted share, compared to a net loss of $433,000 or $0.11
per basic and diluted share for the fourth quarter of 2011 and to a net income
of $464,000 or $0.12 per basic and diluted for the third 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 year ended December 31, 2012, revenues totaled $13.7 million, compared
with $12.5 million for the year ended December 31, 2011. Net income was $1.6
million or $0.41 per basic and diluted share, compared to a net loss of
$239,000 or $0.07 per basic and diluted share for the year ended December 31,
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 December 31, 2012, we had cash, cash equivalents, restricted cash and
other financial investments, net, of $19.3 million, and shareholders' equity
of $66.6 million, compared with $26.2 million, and $64.3 million,
respectively, as of September 30, 2012.

During the fourth quarter we invested an amount of approximately $4 million to
acquire a 19.66% indirect beneficial interest in the owner of a property
located at Two Penn Center Plaza in Philadelphia. In addition, we have
acquired a 4% beneficial interest in a portfolio of Texas shopping centers in
consideration for $4 million. For further information please see our press
releases dated October 12, 2012 and December 19, 2012.

Amir Philips, Chief Executive Officer of Optibase commented on the quarter and
years’ results: “We are pleased with our fourth quarter and full year
performance. During the quarter we continued executing on our strategy of
diversifying and upgrading the quality of our real estate portfolio by
completing our investments in Two Penn Center Plaza and in Texas shopping
centers. Amir concluded, “We are currently evaluating 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 December 31, 2012
                                                
                         Year ended                  Three months ended
                         December 31  December 31   December 31  December 31
                            2012          2011          2012       2011
                            $             $             $          $
                         Unaudited     Unaudited     Unaudited     Unaudited
                                                                   
Fixed income                13,676        12,479        3,449      3,377
real estate rent
Cost and expenses:
Cost of real estate         1,966         1,869         502        493
operation
Real estate
depreciation and            2,569         2,153         654        601
amortization
General and                 2,068         3,057         504        598
administrative
Total cost and              6,603         7,079         1,660      1,692
expenses
Operating income            7,073         5,400         1,789      1,685
                                                                   
Gain on bargain             -             4,412         -          -
purchase
Equity share in
earnings (losses) of        (32    )      -             (32    )   -
associates, net
Other loss                  (100   )      -             -          -
Financial expenses,         (1,243 )      (7,481 )      (143   )   (1,324   )
net
Income before taxes on      5,698         2,331         1,614      361
income
Taxes on income             (1,643 )      (481   )      (401   )   (456     )
                                                                   
Net income (loss) from      4,055         1,850         1,213      (95      )
continuing operation
Net income (loss) from      -             (51    )      -          (4       )
discontinued operation
                                                                   
Net income (loss)           4,055         1,799         1,213      (99      )
                                                                   
Net income (loss)
attributable to             2,478         2,038         716        334
non-controlling
interests
Net income (loss)
attributable to             1,577         (239   )      497        (433     )
Optibase LTD
                                                                   
Net income (loss) per
share from continuing
operation:
Basic and Diluted        $  0.41       $  0.07       $  0.13       ($0.11   )
                                                                   
Net income (loss) per
share from
discontinuing
operation:
Basic and Diluted        $  0.00          ($0.00 )   $  0.00       ($0.00   )
                                                                   
Net income (loss) per
share:
Basic and Diluted        $  0.41          ($0.07 )   $  0.13       ($0.11   )
                                                                   
Number of shares used
in computing (*)

Earning per share
Basic                       3,818         3,642         3,819      3,815
Diluted                     3,820         3,642         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
                                          
                                                   December 31,   December 31,

                                                   2012           2011
                                                   Unaudited      Audited
Assets
Current Assets:                                                   
Cash and cash equivalents                          19,142             22,945
Restricted cash                                    134                131
Trade receivables                                  148                732
Other accounts receivables and prepaid expenses    217                1,267
Total assets attributed to discontinued            980                980
operations
Total current assets                               20,621             26,055
                                              
Long term deposit                                  50                 45
Investments in companies and associates            7,993              100
Long term investments                             8,043              145
                                                                      
Real Estate Property, net                          194,826            192,173
Other assets, net                                  1,392              1,512
Total property equipment and other assets          196,218            193,685
                                                                      
Total assets                                       224,882            219,885
                                                                      
Liabilities and shareholders' equity
Current Liabilities:
                                                                      
Current maturities of long term loans              2,597              2,529
Accounts payable and accrued expenses              3,476              4,060
Total liabilities attributed to                    2,563              2,990
discontinued operations
Total current liabilities                          8,636              9,579
                                                                      
Long term liabilities:
Deferred tax liabilities                           15,262             14,705
Land lease liability, net                          7,290              7,175
Other long term liabilities                        2,844              3,559
Long term loans, net of current                    124,298            123,606
maturities
Total long term liabilities                        149,694            149,045
                                                                      
Total shareholders’ equity of Optibase             47,474             45,099
Ltd
Non-controlling interests                          19,078         16,162
Total shareholders' equity                         66,552         61,261
                                                                  
Total liabilities and shareholders’                224,882        219,885
equity
                                                                      
Amounts in thousands

Contact:

Media Contacts:
Amir Philips, CEO, Optibase Ltd.
011-972-73-7073-700
info@optibase-holdings.com
or
Investor Relations Contact:
Marybeth Csaby, for Optibase
+1-917-664-3055
Marybeth.Csaby@gmail.com