Optibase Ltd. Announces Fourth Quarter Results

  Optibase Ltd. Announces Fourth Quarter Results

Business Wire

HERZLIYA, Israel -- March 31, 2014

Optibase Ltd. (NASDAQ: OBAS) today announced financial results for the fourth
quarter ended December 31, 2013.

Revenues from fixed income real estate totaled $3.5 million for the quarter
ended December 31, 2013, compared to revenues of $3.4 million for the fourth
quarter of 2012 and $3.4 million for the third quarter of 2013.

Net Income for the fourth quarter ended December 31, 2013 was $239,000 or
$0.06 per basic and diluted share, compared to a net income of $497,000 or
$0.13 per basic and diluted share for the fourth quarter of 2012 and to a net
income of $328,000 or $0.09 per basic and diluted share for the third quarter
of 2013.

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

For the year ended December 31, 2013, revenues totaled $13.7 million, compared
with $13.7 million for the year ended December 31, 2012. Net income was $1.5
million or $0.38 per basic and diluted share, compared to a net income of $1.6
million or $0.41 per basic and diluted share for the year ended December 31,
2012.

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

As of December 31, 2013, we had cash, cash equivalents, restricted cash and
other financial investments, net, of $19 million, and shareholders' equity of
$78.9 million, compared with $18.3 million, and $70.2 million, respectively,
as of September 30, 2013.

Amir Philips, Chief Executive Officer of Optibase, commented on the quarter
and year's results: “During the fourth quarter, we have closed a transaction
to purchase twelve luxury condominium units located in Miami Beach, Florida
from our controlling shareholder in consideration for issuance of
approximately 1.31 million newly issued shares of the company. This
transaction has increased our portfolio in the Miami area, which is considered
by many as an 'upcoming location.' For further information please see our
press releases dated November 12, 2013.”

“Overall, we are pleased with our fourth quarter and full year performance
maintaining stability and increasing our portfolio in what we consider a
conservative manner," Amir concluded. “We will continue implementing our
strategy into 2014, trying to maintain stability and create value for 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 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, 2013

                   Year ended                    Three months ended
                     December 31   December 31     December 31   December
                                                                     31
                     2013            2012            2013            2012
                     $               $               $               $
                     Unaudited       Unaudited       Unaudited       Unaudited
                                                                     
Fixed income            13,711          13,676          3,463          3,449
real estate rent
Cost and
expenses:
Cost of real            2,199           1,966           616            502
estate operation
Real estate
depreciation and        3,369           2,569           935            654
amortization
General and             1,870           2,068           714            504
administrative
Total cost and          7,438           6,603           2,265          1,660
expenses
Operating income        6,273           7,073           1,198          1,789
                                                                     
Equity share in
earnings                (172   )        (32    )        (96    )       (32   )
(losses) of
associates, net
Other (loss)            384             (100   )        95             -
Income
Financial
expenses &              (1,343 )        (1,243 )        (343   )       (143  )
other, net
                                                                             
Income before           5,142           5,698           854            1,614
taxes on income
Taxes on income         (1,518 )        (1,643 )        (128   )       (401  )
                                                                     
Net income              3,624           4,055           726            1,213
                                                                     
Net income
attributable to         2,159           2,478           487            716
non-controlling
interests
Net income
attributable to         1,465           1,577           239            497
Optibase LTD
                                                                     
Net income per
share :
Basic and            $  0.38         $  0.41         $  0.06         $ 0.13
Diluted
                                                                     
                                                                     
Number of shares
used in
computing (*)

Earnings per
share
Basic                   3,822           3,818           3,823          3,819
Diluted                 3,826           3,820           3,827          3,820
                                                                             
(*) Amounts in thousands
                                                                             
                                                                             

Condensed Consolidated Balance Sheets
                                                         
                                             December 31,         December 31,
                                             2013                 2012
                                                                  
                                             Unaudited            Audited
Assets
Current Assets:
Cash and cash equivalents                    18,811               19,142
Restricted cash                              144                  134
Trade receivables                            279                  148
Other accounts receivables and               138                  217
prepaid expenses
Total assets attributed to                   675                  980
discontinued operations
Total current assets                         20,047               20,621
                                                                  
Long term deposit                            61                   50
Investments in companies and                 7,738                7,993
associates
Long term investments                        7,799                8,043
                                                                  
Real Estate Property, net                    209,761              194,826
Other assets, net                            1,141                1,392
Total property equipment and other           210,902              196,218
assets
                                                                  
Total assets                                 238,748              224,882
                                                                  
Liabilities and shareholders' equity
Current Liabilities:
Current maturities of long term              2,669                2,597
loans
Accounts payable and accrued                 5,131                3,476
expenses
Total liabilities attributed to              2,135                2,563
discontinued operations
Total current liabilities                    9,935                8,636
                                                                  
Long term liabilities:
Deferred tax liabilities                     15,815               15,262
Land lease liability, net                    7,374                7,290
Other long term liabilities                  1,628                2,844
Long term loans, net of current              125,072              124,298
maturities
Total long term liabilities                  149,889              149,694
                                                                  
Total shareholders’ equity of                57,063               47,474
Optibase Ltd.
Non-controlling interests                    21,861              19,078
Total shareholders' equity                   78,924              66,552
                                                                  
Total liabilities and shareholders’          238,748             224,882
equity
                                                                  
Amounts in thousands

Contact:

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