HERZLIYA, Israel, Aug 27, 2015 (BUSINESS WIRE) —
Optibase Ltd.

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150827005463/en/

SOURCE: Optibase Ltd.

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

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