HERZLIYA, Israel–(Business Wire)–Optibase Ltd. (NASDAQ: OBAS) today announced financial results
for the second quarter ended June 30, 2015.
Revenues from fixed income real estate totaled $3.7 million for the
quarter ended June 30, 2015, compared to revenues of $3.6 million for
the second quarter of 2014 and revenues of $3.3 million for the first
quarter of 2015.
Loss attributable to Optibase Ltd shareholders for the quarter ended
June 30, 2015 was $1.5 million or $0.29, compared to a net income of
$159,000 or $0.03 per basic and diluted share for the second quarter of
2014.
For the six months ended June 30, 2015, loss was $1.6 million or $0.32,
mainly attributed to acquisition related costs of $2.2 million related
to the acquisition of the twenty-seven (27) supermarkets in Bavaria,
Germany, compared to a net income of $373,000 or $0.07 per basic and
diluted share for the six months ended June 30, 2014.
Weighted average shares outstanding used in the calculation for the
periods were approximately 5.1 million basic and diluted shares for each
period.
As of June 30, 2015, we had cash, cash equivalents and other financial
investments, net, of $18.3 million, and shareholders’ equity of $79.2
million, compared with $22.9 million, and $77.1 million, respectively,
as of December 31, 2014.
As of the June 30, 2015 the Company has successfully completed the
acquisition of twenty-five (25) supermarkets in Bavaria, Germany. The
acquisition of two (2) additional properties was completed in July 2015,
which completed the acquisition of the complete portfolio comprising of
twenty-seven (27) supermarkets. For further information please refer to
our 6K reports dated December 19, 2014, June 2, 2015 and July 8, 2015.
As of June 30, 2015, the portfolio purchase price has been allocated to
real estate properties and other assets, net, in accordance with our
accounting policies for business combinations. The purchase price
allocation and the related accounting will be finalized once the
valuation studies are completed. The Company’s net loss for the period
of six months ended on June 30, 2015 includes acquisition-related costs
of $2.2 million related to the acquisition of the twenty-seven (27)
supermarkets in Bavaria, Germany.
Amir Philips, Chief Executive Officer of Optibase commented on the
second quarter results and recent business developments: “We are very
happy with the Company’s performance during the second quarter and the
first half of 2015, both in terms of the ongoing operations of our
existing real estate portfolio and later in July the completion in full
of our first acquisition in Germany. For the period of six months ending
June 30, 2015, we have experienced a slight decrease in our gross
income, mainly due to the fluctuation of the Swiss Franc against the
USD, compared to the same period in 2014. At the same time, our
operating expenses, net of acquisition related costs, have decreased.
Recently, we refinanced our Miami portfolio for a total of $15 million
and completed a very successful bonds offering in Israel for a total of
approximately $15 million. For more information on these recent
transactions, please refer to our 6K reports filed with the SEC on July
8, 2015 and August 10, 2015. The availability of additional funds
enhances our ability to approach prospective transactions, and while we
are working diligently to embed our initial investment in the German
market, we are exploring the markets for additional investment
opportunities.”
About Optibase
Optibase invests in the fixed-income real estate field and currently
holds properties in Switzerland, in Germany, 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 Period Ended June 30, 2015
Six months ended
Three months ended
June 30
June 30
June 30
June 30
2015
2014
2015
2014
$
$
$
$
Unaudited
Unaudited
Unaudited
Unaudited
Fixed income real estate rent
6,994
7,137
3,689
3,591
Cost and expenses:
Cost of real estate operation
1,338
1,394
713
691
Real estate depreciation and amortization
1,772
2,014
916
974
General and administrative
1,010
1,229
614
760
Acquisition related costs
2,165
–
1,801
–
Total cost and expenses
6,285
4,637
4,044
2,425
Operating income (loss)
709
2,500
(355
)
1,166
Equity share in losses of associates, net
(42
)
(75
)
(9
)
(29
)
Other Income
190
204
95
95
Financial expenses, net
(598
)
(565
)
(249
)
(254
)
Income (loss) before taxes on income
259
2,064
(518
)
978
Taxes on income
(776
)
(701
)
(397
)
(339
)
Net income (loss)
(517
)
1,363
(915
)
639
Net income attributable to non-controlling interests
1,131
990
594
480
Net income (loss) attributable to Optibase LTD
(1,648
)
373
(1,509
)
159
Net income (loss) per share :
Basic and Diluted
($0.32
)
$
0.07
($0.29
)
$
0.03
Number of shares used in computing Earnings per share
Basic
5,133
5,126
5,133
5,127
Diluted
5,133
5,131
5,133
5,130
Amounts in thousands
Condensed Consolidated Balance Sheets
June 30,
2015
December 31,
2014
Unaudited
Audited
Assets
Current Assets:
Cash and cash equivalents
18,273
22,902
Trade receivables
283
286
Other accounts receivables and prepaid expenses
422
1,396
Total current assets
18,978
24,584
Long term deposit
55
54
Investments in companies and associates
7,739
7,553
Long term investments
7,794
7,607
Real estate properties and other assets, net
221,876
185,813
Total assets
248,648
218,004
Liabilities and shareholders’ equity
Current Liabilities:
Current maturities of long term loans
2,881
2,401
Short-term loan
5,590
–
Accounts payable and accrued expenses
4,931
4,991
Other short term liabilities
–
539
Total liabilities attributed to discontinued operations
2,141
2,153
Total current liabilities
15,543
10,084
Long term liabilities:
Deferred tax liabilities
15,128
14,237
Land lease liability, net
6,857
6,528
Long term loans, net of current maturities
131,885
110,080
Total long term liabilities
153,870
130,845
Total shareholders’ equity of Optibase Ltd
57,293
57,439
Non-controlling interests
21,942
19,636
Total shareholders’ equity
79,235
77,075
Total liabilities and shareholders’ equity
248,648
218,004
Amounts in thousands
View source version on businesswire.com: http://www.businesswire.com/news/home/20150827005463/en/
Media:
Optibase Ltd.
Amir
Philips, 011-972-73-7073-700
CEO
info@optibase-holdings.com
or
Investor
Relations:
for Optibase
Marybeth Csaby, +1-917-664-3055
Marybeth.Csaby@gmail.com