HERZLIYA, Israel–(Business Wire)–Optibase Ltd. (NASDAQ:OBAS) today announced financial results for
the third quarter ended September 30, 2015.
Revenues from fixed income real estate totaled $4.2 million for the
quarter ended September 30, 2015, compared to revenues of $3.5 million
for the third quarter of 2014 and revenues of $3.7 million for the
second quarters of 2015.
Net income attributable to Optibase Ltd shareholders for the quarter
ended September 30, 2015 was $466,000 or $0.09 per basic and diluted
share, compared to a net income of $209,000 or $0.04 per basic and
diluted share for the third quarter of 2014.
For the nine months ended September 30, 2015, loss attributable to
Optibase Ltd shareholders was $1.2 million or $0.23 per basic and
diluted share, mainly attributed to acquisition related costs of $2.3
million related to the acquisition of the twenty-seven (27) supermarkets
in Bavaria, Germany, compared to a net income of $582,000 or $0.11 per
basic and diluted share for the nine months ended September 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 September 30, 2015, we had cash and cash equivalents of $41.2
million, and shareholders’ equity of $76.2 million, compared with $22.9
million, and $77.1 million, respectively, as of December 31, 2014.
During the third quarter the Company has successfully completed the
acquisition of twenty-seven (27) supermarkets in Bavaria, Germany. For
further information please refer to our 6K reports dated December 19,
2014, June 2, 2015 and July 8, 2015.
As of September 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 Company’s
net income for the period of nine months ended on September 30, 2015
includes acquisition-related costs of $2.3 million related to the
acquisition of the twenty-seven (27) supermarkets in Bavaria, Germany.
During the third quarter of 2015, the Company has successfully completed
bonds offering in Israel for a total amount of approximately $15
million. For further information please refer to our 6K reports dated
August 10, and August 3, 2015.
In April 2015, the Financial Accounting Standards Board, or FASB, issued
Accounting Standards Update, or ASU, 2015-03 Reporting debt issuance
costs related to a debenture. We have elected to adopt this standard
early, effective August 10, 2015, as such, the debt issuance costs
reported in the balance sheet as a direct deduction from the gross
amount of the debenture.
Amir Philips, Chief Executive Officer of Optibase commented on the third
quarter results and recent business developments: “During Q3 we had a
few significant event of which we are very proud; in July we have
completed the purchase of the Edeka supermarkets portfolio in Germany
and have embedded its operating results. This was followed up by a
refinancing of our Miami portfolio for a total of $15 million and a
successful debt offering on TASE (Tel Aviv Stock Exchange) for a total
amount of approximately $15 million (ILS 60 million). Both the
refinancing and the offering have significantly increased our liquidity
and put us in a competitive position towards further expansion of our
real estate portfolio. 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. We are happy with the Company’s performance
during the third quarter of 2015. Our gross income has increased
compared to the previous quarter and the same quarter in 2014, as well
as our operating and net income. For the period of nine months ending
September 30, 2015, we also have an increase in our gross income
compared to the same period in 2014, while our operating income have
decreased mainly due to other operating expenses attributed to real
estate acquisition costs and expenses. 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 September 30, 2015
Nine months ended
Three months ended
September 30
September 30
September 30
September 30
2015
2014
2015
2014
$
$
$
$
Unaudited
Unaudited
Unaudited
Unaudited
Fixed income real estate rent
11,186
10,613
4,192
3,476
Cost and expenses:
Cost of real estate operation
2,037
2,169
699
775
Real estate depreciation and amortization
2,832
2,954
1,060
940
General and administrative
1,420
1,655
410
426
Other operating costs
2,317
–
152
–
Total cost and expenses
8,606
6,778
2,321
2,141
Operating income
2,580
3,835
1,871
1,335
Equity share in losses of associates, net
(59)
(127)
(17)
(52)
Other Income
334
299
144
95
Financial expenses, net
(1,075)
(825)
(477)
(260)
Income before taxes on income
1,780
3,182
1,521
1,118
Taxes on income
(1,228)
(1,084)
(452)
(383)
Net income
552
2,098
1,069
735
Net income attributable to non-controlling interests
1,734
1,516
603
526
Net income (loss) attributable to Optibase LTD
(1,182)
582
466
209
Net income (loss) per share :
Basic and Diluted
($0.23)
$0.11
$0.09
$0.04
Number of shares used in computing Earnings per share
Basic
5,133
5,126
5,133
5,127
Diluted
5,133
5,132
5,140
5,133
Amounts in thousands
Condensed Consolidated Balance Sheets
September 30,
2015
December 31,
2014
Unaudited
Audited
Assets
Current Assets:
Cash and cash equivalents
41,229
22,902
Trade receivables
186
286
Other accounts receivables and prepaid expenses
388
1,396
Total current assets
41,803
24,584
Long term deposit
1,055
54
Investments in companies and associates
7,722
7,553
Long term investments
8,777
7,607
Real estate properties and
219,233
185,204
Other assets, net
535
609
Total property equipment and other assets
219,768
185,813
Total assets
270,348
218,004
Liabilities and shareholders’ equity
Current Liabilities:
Short term bank credit
305
–
Current maturities of long term loans
5,437
2,401
Accounts payable and accrued expenses
5,855
4,991
Other short term liabilities
–
539
Total liabilities attributed to discontinued operations
2,139
2,153
Total current liabilities
13,736
10,084
Long term liabilities:
Deferred tax liabilities
14,494
14,237
Other long-term liabilities
209
–
Land lease liability, net
6,562
6,528
Long term debenture
13,658
–
Long term loans, net of current maturities
145,445
110,080
Total long term liabilities
180,368
130,845
Total shareholders’ equity of Optibase Ltd
56,577
57,439
Non-controlling interests
19,667
19,636
Total shareholders’ equity
76,244
77,075
Total liabilities and shareholders’ equity
270,348
218,004
Amounts in thousands
View source version on businesswire.com: http://www.businesswire.com/news/home/20151127005033/en/
Optibase Ltd.
Media:
Amir
Philips, 011-972-73-7073-700
CEO
info@optibase-holdings.com
or
for
Optibase
Investor Relations:
Marybeth
Csaby, +1- 917-664-3055
Marybeth.Csaby@gmail.com