Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - RETAIL OPPORTUNITY INVESTMENTS CORP | roic-123116xpressreleasexe.htm |
| 8-K - 8-K - RETAIL OPPORTUNITY INVESTMENTS CORP | roic-123116x8k.htm |
Retail Opportunity Investments Corp.
8905 Towne Centre Drive, Suite 108
San Diego, CA 92122
www.roireit.net
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Our Company
Retail Opportunity Investments Corp. (Nasdaq: ROIC), is a fully integrated, self-managed real estate investment trust (REIT) that specializes in the
acquisition, ownership and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West
Coast. As of December 31, 2016, ROIC owned 81 shopping centers encompassing approximately 9.4 million square feet. ROIC is the largest publicly-
traded, grocery-anchored shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has
investment-grade corporate debt ratings from Moody's Investor Services and Standard & Poor's. Additional information is available at www.roireit.net.
Supplemental Information
The enclosed information should be read in conjunction with ROIC's filings with the Securities and Exchange Commission, including but not limited to,
its Form 10-Qs filed quarterly and Form 10-Ks filed annually. Additionally, the enclosed information does not purport to disclose all items under
generally accepted accounting principles (“GAAP”).
Non-GAAP Disclosures
Funds from operations (“FFO”), is a widely-recognized non-GAAP financial measure for REITs that the Company believes when considered with
financial statements presented in accordance with GAAP, provides additional and useful means to assess its financial performance. FFO is frequently
used by securities analysts, investors and other interested parties to evaluate the performance of REITs, most of which present FFO along with net
income as calculated in accordance with GAAP. The Company computes FFO in accordance with the “White Paper” on FFO published by the National
Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income attributable to common stockholders (determined in
accordance with GAAP) excluding gains or losses from debt restructuring, sales of depreciable property and impairments, plus real estate related
depreciation and amortization, and after adjustments for partnerships and unconsolidated joint ventures.
The Company uses cash net operating income (“NOI”) internally to evaluate and compare the operating performance of the Company’s properties. The
Company believes cash NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it
reflects only those income and expense items that are incurred at the property level, and when compared across periods, can be used to determine trends
in earnings of the Company’s properties as this measure is not affected by the non-cash revenue and expense recognition items, the cost of the
Company’s funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets,
general and administrative expenses or other gains and losses that relate to the Company’s ownership of properties. The Company believes the
exclusion of these items from operating income is useful because the resulting measure captures the actual revenue generated and actual expenses
incurred in operating the Company’s properties as well as trends in occupancy rates, rental rates and operating costs. Cash NOI is a measure of the
operating performance of the Company’s properties but does not measure the Company’s performance as a whole and is therefore not a substitute for net
income or operating income as computed in accordance with GAAP. The Company defines cash NOI as operating revenues (base rent and recoveries
from tenants), less property and related expenses (property operating expenses and property taxes), adjusted for non-cash revenue and operating expense
items such as straight-line rent and amortization of lease intangibles, debt-related expenses and other adjustments. Cash NOI also excludes general and
administrative expenses, depreciation and amortization, acquisition transaction costs, other expense, interest expense, gains and losses from property
acquisitions and dispositions, extraordinary items, tenant improvements and leasing commissions. Other REITs may use different methodologies for
calculating cash NOI, and accordingly, the Company’s cash NOI may not be comparable to other REITs.
Supplemental Disclosure
Quarter Ended December 31, 2016 Overview
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Page
Balance Sheets……..……………………………………………………………..………………………………………………… 4
Income Statements .…………………………………………………………………………………..……..…………...………… 5
Funds From Operations …………………………………………………………………………………………………………… 6
Summary of Debt Outstanding .……………………………………………..……………………………………………………… 7
Selected Financial Analysis .……………………………………………………………………………………………………… 9
2016 Property Acquisitions ………………………….………………………...………………………………………………… 10
Property Portfolio ………………………………………………….……………………………………………………………… 11
Same-Center Cash Net Operating Income Analysis……………………………………………………………………………… 14
Top Ten Tenants ………………….…………….………………….……………………………………………………………… 15
Lease Expiration Schedule ……………………..………………………..…….…………………………………………………… 16
Leasing Summary ………………………………………………………..…................................................................................. 17
Same-Space Comparative Leasing Summary ………………………………………………………..…....................................... 18
Investor Information …………………………………………………………..…………………………………………………… 19
Financial Data
Portfolio Data
Supplemental Disclosure
Quarter Ended December 31, 2016 Table of Contents
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(dollars in thousands, except par values and share amounts)
12/31/16 12/31/15
ASSETS:
Real Estate Investments:
Land 766,199$ 669,307$
Building and improvements 1,920,819 1,627,310
Less: accumulated depreciation (193,021) (134,311)
Real Estate Investments, net 2,493,997 2,162,306
Cash and cash equivalents 13,125 8,844
Restricted cash 125 227
Tenant and other receivables, net 35,820 28,652
Deposits - 500
Acquired lease intangible assets, net of accumulated amortization 79,205 66,942
Prepaid expenses 3,317 1,953
Deferred charges, net of accumulated amortization 34,753 30,129
Other 2,627 1,895
TOTAL ASSETS 2,662,969$ 2,301,448$
LIABILITIES:
Term loan 299,191$ 298,802$
Credit facility 95,654 132,028
Senior Notes Due 2026 199,727 -
Senior Notes Due 2024 245,354 244,833
Senior Notes Due 2023 245,051 244,426
Mortgage notes payable 71,303 62,156
Acquired lease intangibles liabilities, net of accumulated amortization 154,958 124,861
Accounts payable and accrued expenses 18,294 13,205
Tenants' security deposits 5,950 5,085
Other liabilities 11,922 11,036
TOTAL LIABILITIES 1,347,404 1,136,432
Non-controlling interests - redeemable OP Units - 33,674
EQUITY:
Common stock, $.0001 par value 500,000,000 shares authorized 11 10
Additional paid-in-capital 1,357,910 1,166,395
Dividends in excess of earnings (165,951) (122,991)
Accumulated other comprehensive loss (3,729) (6,743)
Total Retail Opportunity Investments Corp. stockholders' equity 1,188,241 1,036,671
Non-controlling interests 127,324 94,671
TOTAL EQUITY 1,315,565 1,131,342
TOTAL LIABILITIES AND EQUITY 2,662,969$ 2,301,448$
The Company's Form 10-Q for the quarters ended September 30, 2016, June 30, 2016 and March 31, 2016, and Form 10-K for the years ended December 31, 2016 and 2015 should be read in conjunction with the above information.
Supplemental Disclosure
Quarter Ended December 31, 2016 Balance Sheets
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(in thousands, except per share amounts)
3 Months Ended (Unaudited) 12 Months Ended
12/31/16 12/31/15 12/31/16 12/31/15
REVENUES:
Base rents 48,401$ 39,738$ 183,330$ 148,622$
Recoveries from tenants 13,812 10,753 51,454 40,562
Other income 857 794 2,405 3,515
TOTAL REVENUES 63,070 51,285 237,189 192,699
OPERATING EXPENSES:
Property operating 8,440$ 7,411$ 32,201$ 28,475$
Property taxes 6,756 5,339 25,058 19,690
Depreciation and amortization 22,503 18,390 88,359 70,957
General and administrative expenses 3,065 3,263 13,120 12,650
Acquisition transaction costs 211 458 824 965
Other expense 95 120 456 627
TOTAL OPERATING EXPENSES 41,070 34,981 160,018 133,364
OPERATING INCOME 22,000 16,304 77,171 59,335
NON-OPERATING EXPENSES:
Interest expense and other finance expenses (11,348) (8,836) (40,741) (34,243)
TOTAL NON-OPERATING EXPENSES (11,348) (8,836) (40,741) (34,243)
NET INCOME 10,652$ 7,468$ 36,430$ 25,092$
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (1,031) (547) (3,676) (1,228)
NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. 9,621$ 6,921$ 32,754$ 23,864$
NET INCOME PER COMMON SHARE - BASIC 0.09$ 0.07$ 0.31$ 0.25$
NET INCOME PER COMMON SHARE - DILUTED 0.09$ 0.07$ 0.31$ 0.25$
Weighted average common shares outstanding - basic 108,872 99,131 104,072 95,652
Weighted average common shares outstanding - diluted 120,791 104,290 116,040 100,018
The Company's Form 10-Q for the quarters ended September 30, 2016, June 30, 2016 and March 31, 2016, and Form 10-K for the years ended December 31, 2016 and 2015 should be read in conjunction with the above information.
Supplemental Disclosure
Quarter Ended December 31, 2016 Income Statements
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(in thousands, except per share amounts)
3 Months Ended (Unaudited) 12 Months Ended
12/31/16 12/31/15 12/31/16 12/31/15
Funds from Operations (FFO) (1) :
Net income attributable to ROIC common stockholders 9,621$ 6,921$ 32,754$ 23,864$
Plus:
Depreciation and amortization expense 22,503 18,390 88,359 70,957
FUNDS FROM OPERATIONS - BASIC 32,124$ 25,311$ 121,113$ 94,821$
Net income attributable to non-controlling interests 1,031 547 3,676 1,228
FUNDS FROM OPERATIONS - DILUTED 33,155$ 25,858$ 124,789$ 96,049$
FUNDS FROM OPERATIONS PER SHARE - BASIC 0.30$ 0.26$ 1.16$ 0.99$
FUNDS FROM OPERATIONS PER SHARE - DILUTED 0.27$ 0.25$ 1.08$ 0.96$
Weighted average common shares outstanding - basic 108,872 99,131 104,072 95,652
Weighted average common shares outstanding - diluted 120,791 104,290 116,040 100,018
Common dividends per share 0.18$ 0.17$ 0.72$ 0.68$
FFO Payout Ratio 66.7% 68.0% 66.7% 70.8%
The above does not purport to disclose all items required under GAAP.
(1) - Funds from operations ("FFO"), is a widely-recognized non GAAP financial measure for REITs that ROIC believes, when considered with financial statements determined in accordance with GAAP, provides additional and useful means to assess its financial
performance. FFO is frequently used by securities analysts, investors and other interested parties to evaluate the performance of REITs. ROIC computes FFO in accordance with the "White Paper" on FFO published by the National Association of Real Estate
Investment Trusts ("NAREIT"), which defines FFO as net income attributable to common shareholders (determined in accordance with GAAP) excluding gains or losses from debt restructuring and sales of property, plus real estate related depreciation and
amortization, and after adjustments for partnerships and unconsolidated joint ventures.
Supplemental Disclosure
Quarter Ended December 31, 2016 Funds From Operations
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(unaudited, dollars in thousands)
Outstanding GAAP Maturity Percent of
Balance Interest Rate Interest Rate Date Total Indebtedness
Fixed Rate Debt
Mortgage Debt:
Bernardo Heights Plaza 8,216$ 5.70% 3.30% 07/11/17 0.7%
Santa Teresa Village 10,383 6.20% 3.26% 02/01/18 0.9%
Magnolia Shopping Center 9,135 5.50% 3.86% 10/01/18 0.8%
Casitas Plaza Shopping Center 7,449 5.32% 4.20% 06/01/22 0.6%
Diamond Hills Plaza 35,500 3.55% 3.61% 10/01/25 3.0%
Net unamortized premiums on mortgages 1,037
Net unamortized deferred financing charges (417)
Total Mortgage Debt 71,303$ 4.6% 3.6% 5.4 Years (WA) 6.0%
Unsecured Senior Notes:
Senior Notes Due 2023 250,000$ 5.00% 5.21% 12/15/23 21.4%
Net unamortized discount on notes (3,119)
Net unamortized deferred financing charges (1,830)
Senior Notes Due 2023, net 245,051
Senior Notes Due 2024 250,000 4.00% 4.21% 12/15/24 21.4%
Net unamortized discount on notes (2,891)
Net unamortized deferred financing charges (1,755)
Senior Notes Due 2024, net 245,354
Senior Notes Due 2026 200,000 3.95% 3.95% 09/22/26 17.1%
Net unamortized deferred financing charges (273)
Senior Notes Due 2026, net 199,727
Total Unsecured Senior Notes 690,132$ 4.34% 4.49% 8.1 Years (WA) 59.9%
Interest rate swaps 100,000 1.96% 1.96% 1/31/2019 8.6%
Total Fixed Rate Debt 861,435$ 4.09% 4.13% 7.2 Years (WA) 74.5%
Variable Rate Debt
Credit Facility 98,000$ 1.72% 1.72% 01/31/19 8.4%
Net unamortized deferred financing charges (2,346)
Credit Facility, net 95,654
Term Loan 300,000 1.71% 1.71% 01/31/19 25.7%
Net unamortized deferred financing charges (809)
Term Loan, net 299,191
Interest rate swaps (100,000) (8.6)%
Total Variable Rate Debt 294,845$ 1.71% 1.71% 2.1 Years (WA) 25.5%
TOTAL DEBT 1,156,280$ 3.63% 3.66% 6.1 Years (WA) 100.0%
Net unamortized premiums on mortgages (1,037)
Net unamortized discount on notes 6,010
Net unamortized deferred financing charges 7,430
Total Principal Debt 1,168,683$
(1) Does not include extension options available to ROIC.
Supplemental Disclosure
Quarter Ended December 31, 2016 Summary of Debt Outstanding
(1)
(1)
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(unaudited, dollars in thousands)
Summary of Principal Maturities
Senior Total Principal Percentage of
Credit Facility Term Loan Unsecured Notes Payments Debt Maturing
8,099$ -$ -$ -$ 8,788$ 0.8%
18,900 - - - 19,236 1.6%
- 98,000 300,000 - 398,157 34.1%
- - - - 166 0.0%
- - - - 282 0.0%
6,585 - - - 7,323 0.6%
- - - 250,000 250,686 21.5%
- - - 250,000 250,708 21.5%
32,787 - - - 33,337 2.9%
- - - 200,000 200,000 17.0%
66,371$ 98,000$ 300,000$ 700,000$ 1,168,683$ 100.0%
Summary of Unencumbered/Encumbered Properties
Percentage
GLA of GLA
Unencumbered properties 8,841,801 94.5%
Encumbered properties 516,163 5.5%
9,357,964 100.0%
Summary of Unsecured Debt/Secured Debt
Percentage of Total
Principal Debt
Unsecured principal debt 1,098,000$ 94.0%
Secured principal debt 70,683 6.0%
Total Principal Debt 1,168,683$ 100.0%
(1) Does not include extension options available to ROIC.
(2) Negligible percentage rounds down to zero.
Amount
2017 689$
Mortgage Principal
2019 157
2020 166
2021 282
2022 738
2023 686
Year Amortization
2018 336
Mortgage Principal
due at Maturity
81
2024 708
2025 550
2026 -
4,312$
Number of
Properties
76
5
Supplemental Disclosure
Quarter Ended December 31, 2016 Summary of Debt Outstanding, continued
(1) (1)
(2)
(2)
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(unaudited, in thousands, except per share amounts)
12/31/16 09/30/16 06/30/16 03/31/16 12/31/15
Debt coverage ratios, three months ending:
Interest coverage ratio (EBITDA/interest expense) 4.0x 4.2x 4.1x 4.2x 4.0x
Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 3.9x 4.1x 4.0x 4.1x 3.9x
Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 6.4x 6.4x 7.3x 6.5x 6.9x
Debt/equity ratios, at period end:
Total principal debt/total market capitalization 31.4% 29.0% 32.8% 31.8% 33.2%
Total principal debt/total equity market capitalization 45.9% 40.8% 48.9% 46.6% 49.7%
Total principal debt/total book assets 43.9% 41.7% 46.9% 44.0% 42.9%
Total principal debt/undepreciated book value 40.9% 39.0% 44.1% 41.4% 40.6%
Secured principal debt/undepreciated book value 2.4% 2.5% 2.6% 3.1% 2.6%
Market capitalization calculations, at period end:
Common shares outstanding 108,891 108,749 101,564 99,526 99,148
Operating partnership units (OP units) outstanding 11,668 11,810 12,180 12,274 12,196
Common stock price per share 21.13$ 21.96$ 21.67$ 20.12$ 17.90$
Total equity market capitalization 2,547,411$ 2,647,473$ 2,464,823$ 2,249,419$ 1,993,043$
Total principal debt 1,168,683 1,078,869 1,204,551 1,047,869 991,432
TOTAL MARKET CAPITALIZATION 3,716,094$ $3,726,342 $3,669,374 3,297,288$ 2,984,475$
Unsecured Senior Notes Financial Covenants: (2)
Total debt to total assets not to exceed 60% 42.7% 40.7% 46.1% 43.3% 42.9%
Total secured debt to total assets not to exceed 40% 2.6% 2.7% 2.8% 3.3% 2.7%
Total unencumbered assets to total unsecured debt not to be less than 150% 234.3% 246.9% 216.6% 232.9% 237.6%
Consolidated income available for debt service to interest expense not to be less than 1.5:1 4.1x 4.1x 4.0x 3.9x 3.8x
(1) Commencing Q1 2016, calculations are measured using actual principal debt outstanding without adjustment for debt issuance costs, premiums or discounts. All prior periods are as historically reported.
(2) Calculated in accordance with GAAP pursuant to underlying bond indentures.
Supplemental Disclosure
Quarter Ended December 31, 2016 Selected Financial Analysis
(1)
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(dollars in thousands)
Date Owned
Shopping Centers Location Acquired Purchase Amount GLA
1Q 2016
Magnolia Shopping Center Santa Barbara, CA 03/10/16 39,154$ 116,360
Casitas Plaza Shopping Center Carpinteria, CA 03/10/16 24,866 97,407
Total 1Q 2016 64,020$ 213,767
2Q 2016
Bouquet Center Santa Clarita, CA 04/28/16 59,000$ 148,903
North Ranch Shopping Center Westlake Village, CA 06/01/16 122,800 146,625
Total 2Q 2016 181,800$ 295,528
3Q 2016
Monterey Center Monterey, CA 07/14/16 12,125$ 25,798
Rose City Center Portland, OR 09/15/16 12,750 60,680
Total 3Q 2016 24,875$ 86,478
4Q 2016
Trader Joe's at the Knolls Long Beach, CA 10/03/16 29,150$ 52,021
Bridle Trails Shopping Center Kirkland, WA 10/17/16 32,764 104,281
Total 4Q 2016 61,914$ 156,302
Total 2016 Acquisitions 332,609$ 752,075
Supplemental Disclosure
Quarter Ended December 31, 2016 2016 Property Acquisitions
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(dollars in thousands)
Date Owned %
Southern California City State Acquired GLA Leased ABR
(1)
Major Tenants
Los Angeles metro area
Paramount Plaza * Paramount CA 12/22/09 95,062 100.0% 1,773$ Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy
Claremont Promenade * Claremont CA 09/23/10 92,297 97.5% 2,230 Super King Supermarket
Gateway Village * Chino Hills CA 12/17/10 96,959 93.9% 2,714 Sprouts Market
Seabridge Marketplace * Oxnard CA 05/31/12 93,630 100.0% 1,607 Safeway (Vons) Supermarket
Glendora Shopping Center * Glendora CA 08/01/12 106,535 100.0% 1,287 Albertson's Supermarket
Redondo Beach Plaza * Redondo Beach CA 12/28/12 110,509 100.0% 2,136 Safeway (Vons) Supermarket, Petco
Diamond Bar Town Center * Diamond Bar CA 02/01/13 100,342 98.5% 2,183 Walmart Neighborhood Market, Crunch Fitness
Diamond Hills Plaza * Diamond Bar CA 04/22/13 139,505 96.3% 3,399 H-Mart Supermarket, Rite Aid Pharmacy
Plaza de la Cañada * La Cañada Flintridge CA 12/13/13 100,408 100.0% 2,443 Gelson's Supermarket, TJ Maxx, Rite Aid Pharmacy
Fallbrook Shopping Center * Los Angeles CA 06/13/14 755,299 99.8% 12,114 Sprouts Market, Trader Joe's, Kroger (Ralph's) Supermarket
(2), TJ Maxx
Moorpark Town Center * Moorpark CA 12/03/14 133,547 100.0% 2,023 Kroger (Ralph's) Supermarket, CVS Pharmacy
Ontario Plaza * Ontario CA 01/06/15 150,149 97.1% 2,053 El Super Supermarket, Rite Aid Pharmacy
Park Oaks Shopping Center * Thousand Oaks CA 01/06/15 110,092 100.0% 2,734 Safeway (Vons) Supermarket, Dollar Tree
Warner Plaza Woodland Hills CA 12/31/15 112,261 89.7% 4,169 Sprouts Market, Kroger (Ralph's) Supermarket
(2), Rite Aid Pharmacy (2)
Magnolia Shopping Center Santa Barbara CA 03/10/16 116,360 100.0% 2,236 Kroger (Ralph's) Supermarket
Casitas Plaza Shopping Center Carpinteria CA 03/10/16 97,407 100.0% 1,526 Albertson's Supermarket, CVS Pharmacy
Bouquet Center Santa Clarita CA 04/28/16 148,903 98.9% 3,366 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less
North Ranch Shopping Center Westlake Village CA 06/01/16 146,625 98.7% 5,079 Kroger (Ralph's) Supermarket, Trader Joe's, Rite Aid Pharmacy, Petco
Trader Joe's at the Knolls Long Beach CA 10/03/16 52,021 100.0% 1,292 Trader Joe's, Pet Food Express
Los Angeles metro area total 2,757,911 98.7% 56,364$
Orange County metro area
Santa Ana Downtown Plaza * Santa Ana CA 01/26/10 105,546 100.0% 2,187$ Kroger (Food 4 Less) Supermarket, Marshall's
Sycamore Creek * Corona CA 09/30/10 74,198 100.0% 1,708 Safeway (Vons) Supermarket, CVS Pharmacy
(2)
Desert Springs Marketplace * Palm Desert CA 02/17/11 109,806 100.0% 2,665 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy
Cypress Center West * Cypress CA 12/04/12 107,246 99.0% 1,940 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy
Harbor Place Center * Garden Grove CA 12/28/12 119,821 100.0% 1,617 AA Supermarket, Ross Dress For Less
Five Points Plaza * Huntington Beach CA 09/27/13 160,536 98.3% 4,152 Trader Joe's, Pier 1
Peninsula Marketplace * Huntington Beach CA 10/15/13 95,416 100.0% 2,436 Kroger (Ralph's) Supermarket, Planet Fitness
Mission Foothill Marketplace * Mission Viejo CA 12/04/14 110,678 92.3% 1,705 Safeway (Vons) Supermarket
(3), CVS Pharmacy
Orange Country metro area total 883,247 98.6% 18,410$
San Diego metro area
Marketplace Del Rio * Oceanside CA 01/03/11 177,142 85.3% 2,906$ Stater Brothers Supermarket, Walgreens
Renaissance Towne Centre * San Diego CA 08/03/11 53,074 100.0% 2,406 CVS Pharmacy
Euclid Plaza * San Diego CA 03/29/12 77,044 100.0% 1,460 Vallarta Supermarket, Walgreens
Bay Plaza * San Diego CA 10/05/12 73,324 93.8% 1,800 Seafood City Supermarket
Bernardo Heights Plaza * Rancho Bernardo CA 02/06/13 37,729 100.0% 942 Sprouts Market
Hawthorne Crossings * San Diego CA 06/27/13 141,288 100.0% 3,234 Mitsuwa Supermarket, Ross Dress For Less, Staples
Creekside Plaza * Poway CA 02/28/14 128,852 100.0% 2,721 Stater Brothers Supermarket, DigiPlex Theatre
San Diego metro area total 688,453 95.6% 15,469$
Southern California Totals 4,329,611 98.2% 90,243$
(1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end.
(2) These retailers are not tenants of ROIC.
(3) This tenant is not in possession of the space but has an ongoing financial obligation to ROIC.
*Denotes properties in same center pool for 4Q 2016.
Supplemental Disclosure
Quarter Ended December 31, 2016 Property Portfolio
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(dollars in thousands)
Date Owned %
Northern California City State Acquired GLA Leased ABR
(1)
Major Tenants
San Francisco metro area
Pleasant Hill Marketplace * Pleasant Hill CA 04/08/10 69,715 100.0% 1,471$ Buy Buy Baby, Total Wine and More, Basset Furniture
Pinole Vista Shopping Center * Pinole CA 01/06/11 223,502 91.3% 2,658 SaveMart (Lucky) Supermarket, Kmart
Country Club Gate Center * Pacific Grove CA 07/08/11 109,331 94.1% 1,979 SaveMart (Lucky) Supermarket, Rite Aid Pharmacy
Marlin Cove Shopping Center * Foster City CA 05/04/12 73,280 96.8% 2,130 99 Ranch Market
The Village at Novato * Novato CA 07/24/12 20,081 100.0% 521 Trader Joe's, Pharmaca Pharmacy
Santa Teresa Village * San Jose CA 11/08/12 125,162 91.1% 2,343 Raleys (Nob Hill) Supermarket, Dollar Tree
Granada Shopping Center * Livermore CA 06/27/13 69,325 100.0% 1,225 SaveMart (Lucky) Supermarket
Country Club Village * San Ramon CA 11/26/13 111,093 100.0% 2,086 Walmart Neighborhood Market, CVS Pharmacy
North Park Plaza * San Jose CA 04/30/14 76,697 100.0% 2,236 H-Mart Supermarket
Winston Manor * South San Francisco CA 01/07/15 49,852 96.8% 1,255 Grocery Outlet Supermarket
Jackson Square * Hayward CA 07/01/15 114,220 100.0% 2,119 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness
Gateway Centre * San Ramon CA 09/01/15 112,640 96.5% 2,539 SaveMart (Lucky) Supermarket, Walgreens
Iron Horse Plaza Danville CA 12/04/15 61,860 96.3% 2,115 Lunardi's Market
Monterey Center Monterey CA 07/14/16 25,798 100.0% 1,064 Trader Joe's, Pharmaca Pharmacy
San Francisco metro area total 1,242,556 96.2% 25,741$
Sacramento metro area
Norwood Shopping Center * Sacramento CA 04/06/10 85,623 95.2% 1,284$ Viva Supermarket, Rite Aid Pharmacy, Citi Trends
Mills Shopping Center * Rancho Cordova CA 02/17/11 235,314 86.5% 2,360 Viva Supermarket, Ross Dress For Less (dd's Discounts), Dollar Tree
Morada Ranch * Stockton CA 05/16/11 101,842 99.4% 2,254 Raleys Supermarket
Round Hill Square Shopping Center * Zephyr Cove NV 09/21/11 115,984 98.0% 1,926 Safeway Supermarket, Dollar Tree, US Postal Service
Green Valley Station * Cameron Park CA 06/15/12 52,245 92.2% 913 CVS Pharmacy
Sacramento metro area total 591,008 92.7% 8,737$
Northern California Totals 1,833,564 95.1% 34,478$
(1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end.
*Denotes properties in same center pool for 4Q 2016.
Supplemental Disclosure
Quarter Ended December 31, 2016 Property Portfolio, continued
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(dollars in thousands)
Date Owned %
Pacific Northwest City State Acquired GLA Leased ABR
(1)
Major Tenants
Seattle metro area
Meridian Valley Plaza * Kent WA 02/01/10 51,597 96.9% 611$ Kroger (QFC) Supermarket
The Market at Lake Stevens * Lake Stevens WA 03/11/10 74,130 100.0% 1,454 Albertson's (Haggen) Supermarket
Canyon Park Shopping Center * Bothell WA 07/29/11 123,592 100.0% 2,339 PCC Natural Markets, Rite Aid Pharmacy, Petco
Hawks Prairie Shopping Center * Lacey WA 09/09/11 154,781 94.2% 1,635 Safeway Supermarket, Dollar Tree, Big Lots
The Kress Building * Seattle WA 09/30/11 74,616 100.0% 1,808 IGA Supermarket, TJMaxx
Gateway Shopping Center * Marysville WA 02/16/12 104,298 87.4% 2,312 WinCo Foods
(2), Rite Aid Pharmacy, Ross Dress For Less
Aurora Square * Shoreline WA 05/02/12 38,030 100.0% 336 Central Supermarket
Canyon Crossing * Puyallup WA 04/15/13 120,508 96.9% 2,536 Safeway Supermarket
Crossroads Shopping Center * Bellevue WA 2010/2013 463,846 99.6% 10,198 Kroger (QFC) Supermarket, Bed Bath & Beyond, Dick's Sporting Goods
Aurora Square II * Shoreline WA 05/22/14 65,680 100.0% 1,072 Marshall's, Pier 1 Imports
Bellevue Marketplace Bellevue WA 12/10/15 113,758 100.0% 2,782 Asian Food Center
Four Corner Square Maple Valley WA 12/21/15 119,560 100.0% 2,511 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden
Bridle Trails Shopping Center Kirkland WA 10/17/16 104,281 100.0% 1,744 Unified (Red Apple) Supermarket, Bartell Drugs
Seattle metro area total 1,608,677 98.2% 31,338$
Portland metro area
Vancouver Market Center * Vancouver WA 06/17/10 118,385 77.6% 1,102$ Skyzone
Happy Valley Town Center * Happy Valley OR 07/14/10 138,662 100.0% 3,342 New Seasons Supermarket
Wilsonville Old Town Square * Wilsonville OR 2010/2012 49,937 100.0% 1,781 Kroger (Fred Meyer) Supermarket
(2)
Cascade Summit Town Square * West Linn OR 08/20/10 94,934 98.9% 1,625 Safeway Supermarket
Heritage Market Center * Vancouver WA 09/23/10 107,468 100.0% 1,713 Safeway Supermarket, Dollar Tree
Division Crossing * Portland OR 12/22/10 103,561 100.0% 1,199 Rite Aid Pharmacy, Ross Dress For Less, Ace Hardware
Halsey Crossing * Gresham OR 12/22/10 99,414 100.0% 1,352 24 Hour Fitness, Dollar Tree
Hillsboro Market Center * Hillsboro OR 11/23/11 156,021 100.0% 2,415 Albertson's Supermarket, Dollar Tree, Marshall's
Robinwood Shopping Center * West Linn OR 08/23/13 70,831 98.3% 962 Walmart Neighborhood Market
Tigard Marketplace * Tigard OR 02/18/14 136,889 100.0% 1,935 H-Mart Supermarket, Bi-Mart Pharmacy
Wilsonville Town Center * Wilsonville OR 12/11/14 167,829 99.0% 2,613 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree
Tigard Promenade * Tigard OR 07/28/15 88,043 100.0% 1,439 Safeway Supermarket
Sunnyside Village Square * Happy Valley OR 07/28/15 84,870 100.0% 1,428 Grocery Outlet Supermarket, 24 Hour Fitness, Ace Hardware
Johnson Creek Center Happy Valley OR 11/09/15 108,588 100.0% 2,173 Trader Joe's, Walgreens, Sportsman's Warehouse
Rose City Center Portland OR 09/15/16 60,680 100.0% 671 Safeway Supermarket
Portland metro area total 1,586,112 98.1% 25,750$
Pacific Northwest Totals 3,194,789 98.1% 57,088$
TOTAL SHOPPING CENTERS 9,357,964 97.6% 181,809$
(1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end.
(2) These retailers are not tenants of ROIC.
*Denotes properties in same center pool for 4Q 2016.
Supplemental Disclosure
Quarter Ended December 31, 2016 Property Portfolio, continued
- 14 -
(unaudited, dollars in thousands)
3 Months Ended 12 Months Ended
12/31/16 12/31/15 $ Change % Change 12/31/16 12/31/15 $ Change % Change
Number of shopping centers included in same-center analysis (1) 68 68 61 61
Same-center occupancy 97.4% 97.3% 0.1% 97.3% 97.2% 0.1%
REVENUES:
Base rents 35,993$ 34,883$ 1,110$ 3.2% 128,703$ 123,998$ 4,705$ 3.8%
Percentage rent 975 755 220 29.1% 1,423 1,096 327 29.8%
Recoveries from tenants 11,506 10,679 827 7.7% 41,107 38,188 2,919 7.6%
Other property income 321 477 (156) (32.7)% 1,273 1,253 20 1.6%
TOTAL REVENUES 48,795 46,794 2,001 4.3% 172,506 164,535 7,971 4.8%
OPERATING EXPENSES:
Property operating expenses 7,612$ 7,384$ 228$ 3.1% 26,983$ 25,833$ 1,150$ 4.5%
Bad debt expense 138 227 (89) (39.2)% 972 1,128 (156) (13.8)%
Property taxes 5,282 5,293 (11) (0.2)% 18,893 18,264 629 3.4%
TOTAL OPERATING EXPENSES 13,032 12,904 128 1.0% 46,848 45,225 1,623 3.6%
SAME-CENTER CASH NET OPERATING INCOME 35,763$ 33,890$ 1,873$ 5.5% 125,658$ 119,310$ 6,348$ 5.3%
SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION
Same-center cash net operating income 35,763$ 33,890$ 125,658$ 119,310$
ADJUSTMENTS:
Depreciation and amortization (22,503) (18,390) (88,359) (70,957)
General and administrative expenses (3,065) (3,263) (13,120) (12,650)
Acquisition transaction costs (211) (458) (824) (965)
Other income (expense) (95) (120) (456) (627)
Property revenues and expenses (2) 4,117 3,530 18,775 16,223
Non same-center cash NOI 7,994 1,115 35,497 9,001
GAAP OPERATING INCOME 22,000$ 16,304$ 77,171$ 59,335$
(1) Same centers are those properties which were owned for the entirety of the current and comparable prior year period.
(2) Includes straight-line rents, amortization of above and below-market lease intangibles, anchor lease termination fees net of contractual amounts, and expense and recovery adjustments related to prior periods.
Supplemental Disclosure
Quarter Ended December 31, 2016 Same-Center Cash Net Operating Income Analysis
- 15 -
(dollars in thousands)
Percent
Number of Leased of Total Percent of
Tenant Leases GLA Leased GLA ABR Total ABR
1 Albertson's / Safeway Supermarkets 19 951,474 10.4% 11,180$ 6.1%
2 Kroger Supermarkets 9 368,461 4.0% 5,334 2.9%
3 Rite Aid Pharmacy 13 245,682 2.7% 3,123 1.7%
4 SaveMart Supermarkets 4 187,639 2.1% 2,813 1.5%
5 JP Morgan Chase 19 85,873 0.9% 2,655 1.5%
6 Marshall's / TJMaxx 6 178,645 2.0% 2,587 1.4%
7 Sprouts Markets 4 159,163 1.7% 2,568 1.4%
8 Ross Dress For Less / dd's Discounts 7 191,703 2.1% 2,558 1.4%
9 H-Mart Supermarkets 3 147,040 1.6% 2,383 1.3%
10 CVS Pharmacy 8 150,359 1.6% 2,194 1.2%
Top 10 Tenants Total 92 2,666,039 29.1% 37,395$ 20.4%
Other Tenants 1,716 6,460,259 70.9% 144,414 79.6%
Total Portfolio 1,808 9,126,298 100.0% 181,809$ 100.0%
Supplemental Disclosure
Quarter Ended December 31, 2016 Top Ten Tenants
- 16 -
(dollars in thousands)
Anchor Tenants (1) Number of Leased Percent of Total Percent of ABR
Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft.
2017 5 157,461 1.7% 1,602$ 1.2% 10.18$
2018 18 526,557 5.8% 7,909 4.5% 15.02
2019 15 446,065 4.9% 7,303 4.0% 16.37
2020 14 482,573 5.3% 5,516 3.0% 11.43
2021 13 473,042 5.2% 5,039 2.8% 10.65
2022 15 433,635 4.8% 5,440 2.9% 12.55
2023 12 450,021 4.9% 7,086 3.9% 15.75
2024 5 246,034 2.7% 3,152 1.7% 12.81
2025 10 341,785 3.7% 4,919 2.7% 14.39
2026 11 356,257 3.9% 4,829 2.7% 13.55
2027+ 26 1,099,296 12.0% 16,532 8.6% 15.04
144 5,012,726 54.9% 69,327$ 38.0% 13.83$
Non-Anchor Tenants Number of Leased Percent of Total Percent of ABR
Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft.
2017 276 498,716 5.5% 14,004$ 8.6% 28.08$
2018 260 567,801 6.2% 16,197 8.9% 28.53
2019 254 561,381 6.2% 14,746 8.1% 26.27
2020 228 522,902 5.7% 14,323 7.9% 27.39
2021 250 576,158 6.3% 16,389 8.9% 28.44
2022 133 428,301 4.7% 10,997 5.4% 25.68
2023 49 154,907 1.7% 4,405 2.4% 28.44
2024 59 183,293 2.0% 5,134 2.8% 28.01
2025 42 157,136 1.7% 3,751 2.1% 23.87
2026 54 171,157 1.9% 4,872 2.7% 28.47
2027+ 59 291,820 3.2% 7,664 4.2% 26.26
1,664 4,113,572 45.1% 112,482$ 62.0% 27.34$
All Tenants Number of Leased Percent of Total Percent of ABR
Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft.
2017 281 656,177 7.2% 15,606$ 9.8% 23.78$
2018 278 1,094,358 12.0% 24,106 13.4% 22.03
2019 269 1,007,446 11.1% 22,049 12.1% 21.89
2020 242 1,005,475 11.0% 19,839 10.9% 19.73
2021 263 1,049,200 11.5% 21,428 11.7% 20.42
2022 148 861,936 9.5% 16,437 8.3% 19.07
2023 61 604,928 6.6% 11,491 6.3% 19.00
2024 64 429,327 4.7% 8,286 4.5% 19.30
2025 52 498,921 5.4% 8,670 4.8% 17.38
2026 65 527,414 5.8% 9,701 5.4% 18.39
2027+ 85 1,391,116 15.2% 24,196 12.8% 17.39
1,808 9,126,298 100.0% 181,809$ 100.0% 19.92$
(1) Anchor tenants are leases equal to or greater than 15,000 square feet.
(2) Does not assume exercise of renewal options.
Supplemental Disclosure
Quarter Ended December 31, 2016 Lease Expiration Schedule
- 17 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total
Number of Leases 45 4 49 159 9 168
Gross Leasable Area (sq. ft.) 121,788 118,754 240,542 322,407 263,007 585,414
Initial Base Rent ($/sq. ft.) (1) 30.25$ 16.90$ 23.66$ 29.20$ 16.85$ 23.66$
Tenant Improvements ($/sq. ft.) 11.87$ 8.13$ 10.02$ 18.33$ 25.85$ 21.71$
Leasing Commissions ($/sq. ft.) 3.70$ 3.56$ 3.63$ 3.42$ 3.36$ 3.40$
Weighted Average Lease Term (Yrs.) (2) 8.7 11.3 10.0 7.2 11.7 9.2
Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total
Number of Leases 56 2 58 209 9 218
Gross Leasable Area (sq. ft.) 140,741 65,378 206,119 478,664 284,405 763,069
Initial Base Rent ($/sq. ft.) (1) 28.94$ 9.49$ 22.77$ 30.32$ 10.29$ 22.86$
Tenant Improvements ($/sq. ft.) 0.26$ -$ 0.18$ 1.37$ -$ 0.86$
Leasing Commissions ($/sq. ft.) 0.36$ -$ 0.25$ 0.14$ -$ 0.09$
Weighted Average Lease Term (Yrs.) (2) 4.8 7.1 5.5 4.7 5.3 4.9
Total Non-Anchor Anchor Total Non-Anchor Anchor Total
Number of Leases 101 6 107 368 18 386
Gross Leasable Area (sq. ft.) 262,529 184,132 446,661 801,071 547,412 1,348,483
Initial Base Rent ($/sq. ft.) (1) 29.55$ 14.27$ 23.25$ 29.87$ 13.44$ 23.20$
Tenant Improvements ($/sq. ft.) 5.64$ 5.24$ 5.48$ 8.20$ 12.42$ 9.91$
Leasing Commissions ($/sq. ft.) 1.91$ 2.30$ 2.07$ 1.46$ 1.62$ 1.52$
Weighted Average Lease Term (Yrs.) (2) 6.6 9.8 7.9 5.7 8.4 6.7
(1) Initial Base Rent is on a cash basis and is the initial contractual monthly rent, annualized.
(2) Does not assume exercise of renewal options.
For the Three Months Ended December 31, 2016 For the Twelve Months Ended December 31, 2016
Supplemental Disclosure
Quarter Ended December 31, 2016 Leasing Summary
- 18 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total
Comparative # of Leases 27 4 31 97 9 106
Comparative GLA (sq. ft.) (1) 89,156 117,597 206,753 224,101 261,850 485,951
Prior Base Rent ($/sq. ft.) (2) 21.73$ 12.64$ 16.56$ 24.22$ 11.94$ 17.60$
Initial Base Rent ($/sq. ft.) 28.60$ 17.07$ 22.04$ 29.58$ 16.93$ 22.76$
Percentage Change in Base Rents 31.6% 35.0% 33.1% 22.1% 41.8% 29.3%
Tenant Improvements ($/sq. ft.) 11.79$ 8.21$ 9.75$ 20.93$ 25.96$ 23.64$
Leasing Commissions ($/sq. ft.) 3.46$ 3.60$ 3.54$ 3.74$ 3.38$ 3.54$
Weighted Average Lease Term (Yrs.) (3) 9.3 11.4 10.5 7.8 11.8 9.9
Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total
Comparative # of Leases 56 2 58 209 9 218
Comparative GLA (sq. ft.) 140,741 65,378 206,119 478,664 284,405 763,069
Prior Base Rent ($/sq. ft.) (2) 25.48$ 6.64$ 19.50$ 26.93$ 9.32$ 20.37$
Initial Base Rent ($/sq. ft.) 28.94$ 9.49$ 22.77$ 30.32$ 10.29$ 22.86$
Percentage Change in Base Rents 13.6% 43.0% 16.7% 12.6% 10.4% 12.2%
Tenant Improvements ($/sq. ft.) 0.26$ -$ 0.18$ 1.37$ -$ 0.86$
Leasing Commissions ($/sq. ft.) 0.36$ -$ 0.25$ 0.14$ -$ 0.09$
Weighted Average Lease Term (Yrs.) (3) 4.8 7.1 5.5 4.7 5.3 4.9
Total Non-Anchor Anchor Total Non-Anchor Anchor Total
Comparative # of Leases 83 6 89 306 18 324
Comparative GLA (sq. ft.) (1) 229,897 182,975 412,872 702,765 546,255 1,249,020
Prior Base Rent ($/sq. ft.) (2) 24.03$ 10.49$ 18.03$ 26.07$ 10.57$ 19.29$
Initial Base Rent ($/sq. ft.) 28.81$ 14.36$ 22.40$ 30.09$ 13.47$ 22.82$
Percentage Change in Base Rents 19.9% 36.8% 24.3% 15.4% 27.4% 18.3%
Tenant Improvements ($/sq. ft.) 4.73$ 5.28$ 4.97$ 7.61$ 12.45$ 9.72$
Leasing Commissions ($/sq. ft.) 1.56$ 2.31$ 1.90$ 1.29$ 1.62$ 1.43$
Weighted Average Lease Term (Yrs.) (3) 6.5 9.9 8.0 5.7 8.4 6.9
(1) Comparative GLA includes spaces that were vacant for less than 12 months, excluding spaces that were not leased at the time of acquisition.
(2) Prior Base Rent is on a cash basis and is the final monthly rent paid, annualized, for the prior tenant or the prior lease that was renewed.
(3) Does not assume exercise of renewal options.
For the Three Months Ended December 31, 2016 For the Twelve Months Ended December 31, 2016
Supplemental Disclosure
Quarter Ended December 31, 2016 Same-Space Comparative Leasing Summary
- 19 -
Equity Research Coverage
Baird Equity Research RJ Milligan 813.273.8252
Bank of America Merrill Lynch Craig Schmidt 646.855.3640
Bank of Montreal Paul Adornato 212.885.4170
BTIG Michael Gorman 212.738.6138
Canaccord Genuity Paul Morgan 415.325.4187
Capital One Securities, Inc. Chris Lucas 571.633.8151
Citi Michael Bilerman 212.816.1383
Christy McElroy 212.816.6981
D.A. Davidson & Co. James O. Lykins 503.603.3041
FBR & Co. Bryan Maher 646.885.5423
Green Street Daniel J. Busch 949.640.8780
Jay Carlington 949.640.8780
J.P. Morgan Michael W. Mueller 212.622.6689
Jefferies George Hoglund 212.284.2226
KeyBanc Capital Markets Todd Thomas 917.368.2286
Raymond James Paul Puryear 727.567.2253
Collin Mings 727.567.2585
RBC Capital Markets Michael Carroll 440.715.2649
Wells Fargo Jeff Donnelly 617.603.4262
Fixed Income Research Coverage
J.P. Morgan Mark Streeter 212.834.5086
Ratings Agency Coverage
Moody’s Investors Service Dilara Sukhov 212.553.1438
S&P Global Ratings Michael Souers 212.438.2508
Supplemental Disclosure
Quarter Ended December 31, 2016 Investor Information
Retail Opportunity Investments Corp.
www.roireit.net
NASDAQ: ROIC
8905 Towne Centre Drive, Suite 108
Transfer Agent:
Constance Adams
ComputerShare
constance.adams@computershare.com
Investor Relations:
Ashley Bulot
abulot@roireit.net
858.255.4913