Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - RETAIL OPPORTUNITY INVESTMENTS CORP | roic-033118xpressreleasexe.htm |
| 8-K - 8-K - RETAIL OPPORTUNITY INVESTMENTS CORP | roic-033118x8k.htm |
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 March 31, 2018, ROIC owned 91 shopping centers encompassing approximately 10.5 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 S&P Global Ratings. 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 March 31, 2018Overview
- 2 -
Page
Balance Sheets……..……………………………………………………………..………………………………………………… 4
Income Statements .…………………………………………………………………………………..……..…………...………… 5
Funds From Operations …………………………………………………………………………………………………………… 6
Summary of Debt Outstanding .……………………………………………..……………………………………………………… 7
Selected Financial Analysis .……………………………………………………………………………………………………… 9
2018 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 March 31, 2018Table of Contents
- 3 -
(unaudited, dollars in thousands, except par values and share amounts)
03/31/18 12/31/17
ASSETS:
Real Estate Investments:
Land 896,573$ 878,797$
Building and improvements 2,238,793 2,230,600
Less: accumulated depreciation (275,708) (260,115)
Real Estate Investments, net 2,859,658 2,849,282
Cash and cash equivalents 13,012 11,553
Restricted cash 1,998 5,412
Tenant and other receivables, net 43,560 43,257
Deposits 500 500
Acquired lease intangible assets, net 81,262 82,778
Prepaid expenses 2,941 2,853
Deferred charges, net 37,151 37,167
Other assets 9,641 6,396
TOTAL ASSETS 3,049,723$ 3,039,198$
LIABILITIES:
Term loan 298,879$ 298,816$
Credit facility 156,544 140,329
Senior Notes 940,422 940,086
Mortgage notes payable 98,201 107,915
Acquired lease intangible liabilities, net 177,212 178,984
Accounts payable and accrued expenses 30,607 18,638
Tenants' security deposits 6,919 6,771
Other liabilities 18,508 18,018
TOTAL LIABILITIES 1,727,292 1,709,557
EQUITY:
Common stock, $.0001 par value 500,000,000 shares authorized 11 11
Additional paid-in capital 1,413,887 1,412,590
Dividends in excess of earnings (221,841) (210,490)
Accumulated other comprehensive income 5,664 1,856
Total Retail Opportunity Investments Corp. stockholders' equity 1,197,721 1,203,967
Non-controlling interests 124,710 125,674
TOTAL EQUITY 1,322,431 1,329,641
TOTAL LIABILITIES AND EQUITY 3,049,723$ 3,039,198$
The Company's Form 10-Q for the quarter ended March 31, 2018, and Form 10-K for the year ended December 31, 2017 should be read in conjunction with the above information.
Supplemental Disclosure
Quarter Ended March 31, 2018Balance Sheets
- 4 -
(in thousands, except per share amounts)
3 Months Ended (Unaudited) 12 Months E
03/31/18 03/31/17 03/31/18
REVENUES:
Base rents 55,377$ 51,479$ 210,564$
Recoveries from tenants 16,161 13,668 58,818
Other income 2,857 753 3,878
TOTAL REVENUES 74,395 65,900 273,260
OPERATING EXPENSES:
Property operating 10,478$ 9,300$ 39,151$
Property taxes 7,819 7,068 29,663
Depreciation and amortization 25,217 23,058 96,256
General and administrative expenses 3,531 3,499 14,103
Other expense 69 49 418
TOTAL OPERATING EXPENSES 47,114 42,974 179,595
OPERATING INCOME 27,281 22,926 93,665
NON-OPERATING EXPENSES:
Interest expense and other finance expenses (15,457) (11,675) (50,977)
TOTAL NON-OPERATING EXPENSES (15,457) (11,675) (50,977)
NET INCOME 11,824$ 11,251$ 42,688$
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (1,122) (1,081) (4,211)
NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. 10,702$ 10,170$ 38,477$
NET INCOME PER COMMON SHARE - BASIC 0.09$ 0.09$ 0.35$
NET INCOME PER COMMON SHARE - DILUTED 0.09$ 0.09$ 0.35$
Weighted average common shares outstanding - basic 112,163 109,227 109,400
Weighted average common shares outstanding - diluted 124,127 121,054 121,744
The Company's Form 10-Q for the quarters ended March 31, 2018 and March 31, 2017 should be read in conjunction with the above information.
Supplemental Disclosure
Quarter Ended March 31, 2018Income Statements
- 5 -
(in thousands, except per share amounts)
3 Months Ended (Unaudited) 12 Months E
03/31/18 03/31/17 03/31/18
Funds from Operations (FFO) (1) :
Net income attributable to ROIC common stockholders 10,702$ 10,170$ 38,477$
Plus:
Depreciation and amortization expense 25,217 23,058 96,256
FUNDS FROM OPERATIONS - BASIC 35,919$ 33,228$ 134,733$
Net income attributable to non-controlling interests 1,122 1,081 4,211
FUNDS FROM OPERATIONS - DILUTED 37,041$ 34,309$ 138,944$
FUNDS FROM OPERATIONS PER SHARE - BASIC 0.32$ 0.30$ 1.23$
FUNDS FROM OPERATIONS PER SHARE - DILUTED 0.30$ 0.28$ 1.14$
Weighted average common shares outstanding - basic 112,163 109,227 109,400
Weighted average common shares outstanding - diluted 124,127 121,054 121,744
Common dividends per share 0.1950$ 0.1875$ 0.7500$
FFO Payout Ratio 65.0% 67.0% 65.8%
Additional Disclosures:
Non Cash Expense (Income) -$
Straight line rent (1,471)$ -
Above/below market rent amortization, net (4,075) -
Non-cash interest expense 535 -
Deferred financing costs and mortgage premiums, net 449
Stock based compensation 1,428
Capital Expenditures
Tenant improvements 3,107$
Leasing commissions 753
Building improvements 361
Reimbursable property improvements 193
Pad and other development 1,017
Value enhancing tenant improvements 2,378
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 March 31, 2018Funds From Operations
- 6 -
(unaudited, dollars in thousands)
Outstanding GAAP Maturity Percent of
Balance Interest Rate Interest Rate Date Total Indebtedness
Fixed Rate Debt
Mortgage Debt:
Magnolia Shopping Center 8,903$ 5.50% 3.86% 10/01/18 0.6%
Casitas Plaza Shopping Center 7,271 5.32% 4.20% 06/01/22 0.5%
Riverstone Marketplace 18,329 4.96% 3.80% 07/01/22 1.2%
Fullerton Crossroads 26,000 4.73% 3.82% 04/06/24 1.7%
Diamond Hills Plaza 35,500 3.55% 3.61% 10/01/25 2.4%
Net unamortized premiums/deferred financing charges 2,198
Total Mortgage Debt 98,201 4.5% 3.8% 5.6 Years (WA) 6.4%
Unsecured Senior Notes:
Senior Notes Due 2023 250,000 5.00% 5.21% 12/15/23 16.6%
Senior Notes Due 2024 250,000 4.00% 4.21% 12/15/24 16.6%
Senior Notes Due 2026 200,000 3.95% 3.95% 09/22/26 13.3%
Senior Notes Due 2027 250,000 4.19% 4.19% 12/15/27 16.6%
Net unamortized discounts/deferred financing charges (9,578)
Total Unsecured Senior Notes 940,422 4.30% 4.41% 7.6 Years (WA) 63.1%
Interest rate swaps 100,000 1.96% 1.96% 1/31/2019 6.6%
Interest rate swaps 200,000 2.84% 2.84% 8/31/2022 13.3%
Total Fixed Rate Debt 1,338,623$ 3.92% 3.95% 7.4 Years (WA) 89.4%
Variable Rate Debt
Credit Facility 159,500$ 2.87% 2.87% 09/08/21 10.6%
Net unamortized deferred financing charges (2,956)
Credit Facility, net 156,544
Term Loan 300,000 2.98% 2.98% 09/08/22 19.9%
Net unamortized deferred financing charges (1,121)
Term Loan, net 298,879
Interest rate swaps (300,000) (19.9)%
Total Variable Rate Debt 155,423$ 2.94% 2.94% 4.1 Years (WA) 10.6%
TOTAL DEBT 1,494,046$ 4.40% 4.44% 6.4 Years (WA) 100.0%
Net unamortized premiums on mortgages (2,509)
Net unamortized discounts on notes 5,140
Net unamortized deferred financing charges 8,826
Total Principal Debt 1,505,503$
(1) Does not include extension options available to ROIC.
Supplemental Disclosure
Quarter Ended March 31, 2018Summary of Debt Outstanding
(1)
- 7 -
(unaudited, dollars in thousands)
Summary of Principal Maturities
Senior Total Principal Percentage of
Credit Facility Term Loan Unsecured Notes Payments Debt Maturing
8,806$ -$ -$ -$ 9,295$ 0.6%
- - - - 551 0.0%
- - - - 577 0.0%
- 159,500 - - 160,217 10.6%
23,129 - 300,000 - 324,132 21.5%
- - - 250,000 250,686 16.7%
26,000 - - 250,000 276,708 18.4%
32,787 - - - 33,337 2.2%
- - - 200,000 200,000 13.3%
- - - 250,000 250,000 16.7%
90,722$ 159,500$ 300,000$ 950,000$ 1,505,503$ 100.0%
Summary of Unencumbered/Encumbered Properties
Percentage
GLA of GLA
Unencumbered properties 9,855,486 93.6%
Encumbered properties 668,831 6.4%
10,524,317 100.0%
Summary of Unsecured Debt/Secured Debt
Percentage of Total
Principal Debt
Unsecured principal debt 1,409,500$ 93.6%
Secured principal debt 96,003 6.4%
Total Principal Debt 1,505,503$ 100.0%
(1) Does not include extension options available to ROIC.
(2) Negligible percentage rounds down to zero.
Amount
2018 489$
Mortgage Principal
2020 577
2021 717
2022 1,003
2023 686
2024 708
Year Payments
2019 551
Mortgage Principal
due at Maturity
91
2025 550
2026 -
2027 -
5,281$
Number of
Properties
86
5
Supplemental Disclosure
Quarter Ended March 31, 2018Summary of Debt Outstanding, continued
(2)
(1)
(2)
- 8 -
(unaudited, in thousands, except per share amounts)
03/31/18 12/31/17 09/30/17 06/30/17 03/31/17
Debt coverage ratios, three months ending:
Interest coverage ratio (EBITDA/interest expense) 3.4x 3.7x 3.7x 3.7x 4.0x
Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 3.4x 3.6x 3.7x 3.6x 3.9x
Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 7.1x 7.3x 7.1x 7.2x 6.7x
Debt/equity ratios, at period end:
Total principal debt/total market capitalization 40.8% 37.8% 37.5% 36.7% 33.1%
Total principal debt/total equity market capitalization 68.8% 60.8% 60.0% 57.9% 49.4%
Total principal debt/total book assets 49.4% 49.3% 48.2% 47.5% 45.8%
Total principal debt/undepreciated book value 45.3% 45.5% 44.5% 44.0% 42.5%
Secured principal debt/undepreciated book value 2.9% 3.2% 2.0% 2.0% 2.4%
Market capitalization calculations, at period end:
Common shares outstanding 112,165 111,886 109,267 109,267 109,263
Operating partnership units (OP units) outstanding 11,679 11,679 11,679 11,679 11,686
Common stock price per share 17.67$ 19.95$ 19.01$ 19.19$ 21.03$
Total equity market capitalization 2,188,331$ 2,465,116$ 2,299,192$ 2,320,960$ 2,543,568$
Total principal debt 1,505,503 1,499,820 1,379,042 1,343,185 1,257,494
TOTAL MARKET CAPITALIZATION 3,693,834$ 3,964,936$ 3,678,234$ 3,664,145$ 3,801,062$
Unsecured Senior Notes Financial Covenants: (1)
Total debt to total assets not to exceed 60% 47.2% 47.4% 46.3% 45.9% 44.3%
Total secured debt to total assets not to exceed 40% 3.1% 3.4% 2.1% 2.2% 2.5%
Total unencumbered assets to total unsecured debt not to be less than 150% 210.7% 208.7% 214.5% 216.6% 225.4%
Consolidated income available for debt service to interest expense not to be less than 1.5:1 3.6x 3.7x 3.8x 3.9x 4.0x
(1) Calculated in accordance with GAAP pursuant to underlying bond indentures.
Supplemental Disclosure
Quarter Ended March 31, 2018Selected Financial Analysis
- 9 -
(dollars in thousands)
Date Owned
Shopping Centers Location Acquired Purchase Amount GLA
1Q 2018
Stadium Center Tacoma, WA 02/23/18 19,000$ 48,888
Total 1Q 2018 19,000$ 48,888
Supplemental Disclosure
Quarter Ended March 31, 20182018 Property Acquisitions
- 10 -
(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 98.0% 1,778$ Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy
Claremont Promenade * Claremont CA 09/23/10 92,297 97.2% 2,391 Super King Supermarket
Gateway Village * Chino Hills CA 12/17/10 96,959 96.9% 2,749 Sprouts Market
Seabridge Marketplace * Oxnard CA 05/31/12 95,830 99.5% 1,833 Safeway (Vons) Supermarket
Glendora Shopping Center * Glendora CA 08/01/12 106,535 95.8% 1,293 Albertson's Supermarket
Redondo Beach Plaza * Redondo Beach CA 12/28/12 110,509 100.0% 2,183 Safeway (Vons) Supermarket, Petco
Diamond Bar Town Center * Diamond Bar CA 02/01/13 100,342 99.0% 2,249 Walmart Neighborhood Market, Crunch Fitness
Diamond Hills Plaza * Diamond Bar CA 04/22/13 139,505 97.1% 3,475 H-Mart Supermarket, Rite Aid Pharmacy
Plaza de la Cañada * La Cañada Flintridge CA 12/13/13 100,408 95.9% 2,386 Gelson's Supermarket, TJ Maxx, Rite Aid Pharmacy
Fallbrook Shopping Center * Los Angeles CA 06/13/14 755,299 99.6% 12,611 Sprouts Market, Trader Joe's, Kroger (Ralph's) Supermarket
(2), TJ Maxx
Moorpark Town Center * Moorpark CA 12/03/14 133,547 98.3% 2,091 Kroger (Ralph's) Supermarket, CVS Pharmacy
Ontario Plaza * Ontario CA 01/06/15 150,149 99.1% 2,166 El Super Supermarket, Rite Aid Pharmacy
Park Oaks Shopping Center * Thousand Oaks CA 01/06/15 110,092 91.2% 2,497 Safeway (Vons) Supermarket, Dollar Tree
Warner Plaza * Woodland Hills CA 12/31/15 110,918 98.3% 4,469 Sprouts Market, Kroger (Ralph's) Supermarket
(2), Rite Aid Pharmacy (2)
Magnolia Shopping Center * Santa Barbara CA 03/10/16 116,360 91.5% 2,099 Kroger (Ralph's) Supermarket
Casitas Plaza Shopping Center * Carpinteria CA 03/10/16 97,407 100.0% 1,537 Albertson's Supermarket, CVS Pharmacy
Bouquet Center * Santa Clarita CA 04/28/16 148,903 97.8% 3,314 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less
North Ranch Shopping Center * Westlake Village CA 06/01/16 146,625 87.1% 4,462 Kroger (Ralph's) Supermarket, Trader Joe's, Rite Aid Pharmacy, Petco
The Knolls * Long Beach CA 10/03/16 52,021 100.0% 1,411 Trader Joe's, Pet Food Express
The Terraces Rancho Palos Verdes CA 03/17/17 172,922 90.1% 3,204 Trader Joe's, Marshall's, LA Fitness
Los Angeles metro area total 2,931,690 97.0% 60,198$
Orange County metro area
Santa Ana Downtown Plaza * Santa Ana CA 01/26/10 105,536 93.0% 2,031$ Kroger (Food 4 Less) Supermarket, Marshall's
Sycamore Creek * Corona CA 09/30/10 74,198 100.0% 1,749 Safeway (Vons) Supermarket, CVS Pharmacy
(2)
Desert Springs Marketplace * Palm Desert CA 02/17/11 113,718 97.7% 2,782 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy
Cypress Center West * Cypress CA 12/04/12 107,246 94.4% 1,890 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy
Harbor Place Center * Garden Grove CA 12/28/12 119,821 100.0% 1,630 AA Supermarket, Ross Dress For Less
5 Points Plaza * Huntington Beach CA 09/27/13 160,536 97.2% 4,218 Trader Joe's, Pier 1
Peninsula Marketplace * Huntington Beach CA 10/15/13 95,416 100.0% 2,476 Kroger (Ralph's) Supermarket, Planet Fitness
Fullerton Crossroads Fullerton CA 10/11/17 219,785 99.4% 3,385 Kroger (Ralph's) Supermarket, Kohl's, Jo-Ann Fabrics and Crafts
The Village at Nellie Gail Ranch Laguna Hills CA 11/30/17 88,486 98.5% 2,952 Smart & Final Extra Supermarket
Orange Country metro area total 1,084,742 97.8% 23,113$
San Diego metro area
Marketplace Del Rio * Oceanside CA 01/03/11 177,195 89.1% 3,130$ Stater Brothers Supermarket, Walgreens
Renaissance Towne Centre * San Diego CA 08/03/11 53,074 100.0% 2,564 CVS Pharmacy
Euclid Plaza * San Diego CA 03/29/12 77,044 96.8% 1,411 Vallarta Supermarket, Walgreens
Bay Plaza * San Diego CA 10/05/12 73,324 97.9% 1,883 Seafood City Supermarket
Bernardo Heights Plaza * Rancho Bernardo CA 02/06/13 37,729 96.3% 906 Sprouts Market
Hawthorne Crossings * San Diego CA 06/27/13 141,288 100.0% 3,264 Mitsuwa Supermarket, Ross Dress For Less, Staples
Creekside Plaza * Poway CA 02/28/14 128,852 98.9% 2,756 Stater Brothers Supermarket, AMC Theatres
San Diego metro area total 688,506 96.2% 15,914$
Southern California Totals 4,704,938 97.1% 99,225$
(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 1Q 2018.
Supplemental Disclosure
Quarter Ended March 31, 2018Property Portfolio
- 11 -
(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$ Total Wine and More, Buy Buy Baby, Basset Furniture
Pinole Vista Shopping Center * Pinole CA 01/06/11 223,369 96.0% 2,929 SaveMart (Lucky) Supermarket, Planet Fitness, Kmart
Country Club Gate Center * Pacific Grove CA 07/08/11 109,331 95.1% 2,029 SaveMart (Lucky) Supermarket, Rite Aid Pharmacy
Marlin Cove Shopping Center * Foster City CA 05/04/12 73,943 95.5% 2,169 99 Ranch Market
The Village at Novato * Novato CA 07/24/12 20,081 100.0% 551 Trader Joe's, Pharmaca Pharmacy
Santa Teresa Village * San Jose CA 11/08/12 124,306 93.2% 2,508 Raleys (Nob Hill) Supermarket, Dollar Tree
Granada Shopping Center * Livermore CA 06/27/13 69,325 100.0% 1,307 SaveMart (Lucky) Supermarket
Country Club Village * San Ramon CA 11/26/13 111,093 99.0% 2,095 Walmart Neighborhood Market, CVS Pharmacy
North Park Plaza * San Jose CA 04/30/14 76,697 100.0% 2,372 H-Mart Supermarket
Winston Manor * South San Francisco CA 01/07/15 49,852 100.0% 1,472 Grocery Outlet Supermarket
Jackson Square * Hayward CA 07/01/15 114,220 100.0% 2,176 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness
Gateway Centre * San Ramon CA 09/01/15 112,553 98.6% 2,590 SaveMart (Lucky) Supermarket, Walgreens
Iron Horse Plaza * Danville CA 12/04/15 61,860 93.0% 2,071 Lunardi's Market
Monterey Center * Monterey CA 07/14/16 25,798 100.0% 1,131 Trader Joe's, Pharmaca Pharmacy
Santa Rosa Southside Shopping Center Santa Rosa CA 03/24/17 88,535 100.0% 1,671 REI, Cost Plus World Market
Monta Loma Plaza Mountain View CA 09/19/17 48,078 100.0% 1,355 Safeway Supermarket
San Francisco metro area total 1,378,756 97.6% 29,897$
Sacramento metro area
Norwood Shopping Center * Sacramento CA 04/06/10 85,693 100.0% 1,384$ Viva Supermarket, Rite Aid Pharmacy, Citi Trends
Mills Shopping Center * Rancho Cordova CA 02/17/11 235,314 86.4% 2,437 Viva Supermarket, Ross Dress For Less (dd's Discounts), Dollar Tree
Morada Ranch * Stockton CA 05/16/11 101,842 95.1% 2,201 Raleys Supermarket
Round Hill Square Shopping Center * Zephyr Cove NV 09/21/11 115,984 95.6% 1,928 Safeway Supermarket, Dollar Tree, US Postal Service
Green Valley Station * Cameron Park CA 06/15/12 52,245 74.4% 849 CVS Pharmacy
Sacramento metro area total 591,078 90.6% 8,799$
Northern California Totals 1,969,834 95.5% 38,696$
(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 1Q 2018.
Supplemental Disclosure
Quarter Ended March 31, 2018Property Portfolio, continued
- 12 -
(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% 620$ Kroger (QFC) Supermarket
The Market at Lake Stevens * Lake Stevens WA 03/11/10 74,130 100.0% 1,461 Albertson's (Haggen) Supermarket
Canyon Park Shopping Center * Bothell WA 07/29/11 123,592 98.4% 2,343 PCC Community Markets, Rite Aid Pharmacy, Petco
Hawks Prairie Shopping Center * Lacey WA 09/09/11 157,529 100.0% 1,813 Safeway Supermarket, Dollar Tree, Big Lots
The Kress Building * Seattle WA 09/30/11 74,616 100.0% 1,845 IGA Supermarket, TJMaxx
Gateway Shopping Center * Marysville WA 02/16/12 104,298 90.4% 2,396 WinCo Foods
(2), Rite Aid Pharmacy, Ross Dress For Less
Aurora Square * Shoreline WA 2012/2014 108,558 98.5% 1,614 Central Supermarket, Marshall's, Pier 1
Canyon Crossing * Puyallup WA 04/15/13 120,398 100.0% 2,623 Safeway Supermarket
Crossroads Shopping Center * Bellevue WA 2010/2013 463,813 100.0% 10,412 Kroger (QFC) Supermarket, Bed Bath & Beyond, Dick's Sporting Goods
Bellevue Marketplace * Bellevue WA 12/10/15 113,758 100.0% 3,087 Asian Family Market
Four Corner Square * Maple Valley WA 12/21/15 119,560 100.0% 2,566 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden
Bridle Trails Shopping Center * Kirkland WA 10/17/16 104,927 100.0% 2,045 Grocery Outlet Supermarket, Bartell Drugs, Dollar Tree
PCC Community Markets Plaza Edmonds WA 01/25/17 34,459 100.0% 646 PCC Community Markets
Highland Hill Shopping Center Tacoma WA 05/09/17 163,926 95.9% 2,660 Safeway Supermarket, LA Fitness, Dollar Tree, Petco
North Lynnwood Shopping Center Lynnwood WA 10/19/17 63,606 91.3% 806 Kroger (QFC) Supermarket
Stadium Center Tacoma WA 02/23/18 48,888 100.0% 1,029 Thriftway Supermarket
Seattle metro area total 1,927,655 98.6% 37,966$
Portland metro area
Vancouver Market Center * Vancouver WA 06/17/10 118,385 97.0% 1,370$ Skyzone
Happy Valley Town Center * Happy Valley OR 07/14/10 138,662 100.0% 3,546 New Seasons Supermarket
Wilsonville Old Town Square * Wilsonville OR 2010/2012 49,937 100.0% 1,819 Kroger (Fred Meyer) Supermarket
(2)
Cascade Summit Town Square * West Linn OR 08/20/10 94,934 100.0% 1,710 Safeway Supermarket
Heritage Market Center * Vancouver WA 09/23/10 107,468 100.0% 1,752 Safeway Supermarket, Dollar Tree
Division Crossing * Portland OR 12/22/10 103,561 100.0% 1,246 Rite Aid Pharmacy, Ross Dress For Less, Ace Hardware
Halsey Crossing * Gresham OR 12/22/10 99,428 96.3% 1,290 24 Hour Fitness, Dollar Tree
Hillsboro Market Center * Hillsboro OR 11/23/11 156,021 99.1% 2,519 Albertson's Supermarket, Dollar Tree, Ace Hardware
Robinwood Shopping Center * West Linn OR 08/23/13 70,831 100.0% 1,053 Walmart Neighborhood Market
Tigard Marketplace * Tigard OR 02/18/14 136,889 99.3% 1,959 H-Mart Supermarket, Bi-Mart Pharmacy
Wilsonville Town Center * Wilsonville OR 12/11/14 167,829 99.1% 2,734 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree
Tigard Promenade * Tigard OR 07/28/15 88,043 100.0% 1,468 Safeway Supermarket
Sunnyside Village Square * Happy Valley OR 07/28/15 92,278 100.0% 1,560 Grocery Outlet Supermarket, 24 Hour Fitness, Ace Hardware
Johnson Creek Center * Happy Valley OR 11/09/15 108,588 100.0% 2,220 Trader Joe's, Walgreens, Sportsman's Warehouse
Rose City Center * Portland OR 09/15/16 60,680 100.0% 820 Safeway Supermarket
Division Center Portland OR 04/05/17 121,904 100.0% 1,960 Grocery Outlet Supermarket, Rite Aid Pharmacy, Petco
Riverstone Marketplace Vancouver WA 10/11/17 95,774 100.0% 2,150 Kroger (QFC) Supermarket
Portland metro area total 1,811,212 99.4% 31,176$
Pacific Northwest Totals 3,738,867 99.0% 69,142$
TOTAL SHOPPING CENTERS 10,413,639 97.4% 207,063$
(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.
Note: Property Portfolio excludes one shopping center that is currently under contract to be sold (slated for new multi-family development).
*Denotes properties in same center pool for 1Q 2018.
Supplemental Disclosure
Quarter Ended March 31, 2018Property Portfolio, continued
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(unaudited, dollars in thousands)
Three Months Ended 12 Months
03/31/18 03/31/17 $ Change % Change 03/31/18 03/31/17
Number of shopping centers included in same-center analysis (1) 79 79 72 72
Same-center occupancy 97.5% 97.5% 0.0% 97.7% 97.4%
REVENUES:
Base rents 44,470$ 43,561$ 909$ 2.1% 158,816$ 153,157$
Percentage rent 84 116 (32) (27.6%) 1,265 1,423
Recoveries from tenants 14,180 13,620 560 4.1% 50,146 48,013
Other property income 425 758 (333) (43.9)% 3,670 2,037
TOTAL REVENUES 59,159 58,055 1,104 1.9% 213,897 204,630
OPERATING EXPENSES:
Property operating expenses 9,428$ 8,792$ 636$ 7.2% 33,563$ 30,891$
Bad debt expense 88 488 (400) (82.0)% 1,542 1,089
Property taxes 6,791 6,932 (141) (2.0)% 24,087 22,527
TOTAL OPERATING EXPENSES 16,307 16,212 95 0.6% 59,192 54,507
SAME-CENTER CASH NET OPERATING INCOME 42,852$ 41,843$ 1,009$ 2.4% 154,705$ 150,123$
SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION
GAAP Operating Income 27,281$ 22,926$ 93,665$ 77,171$
Depreciation and amortization 25,217 23,058 96,256 88,359
General and administrative expenses 3,531 3,499 14,103 13,120
Other expense 69 49 418 456
Property revenues and other expenses (2) (5,509) (6,889) (22,404) (17,636)
TOTAL COMPANY CASH NET OPERATING INCOME 50,589 42,643 182,042 162,294
Non Same-Center Cash NOI (7,737) (800) (27,337) (12,171)
SAME-CENTER CASH NET OPERATING INCOME 42,852$ 41,843$ 154,705$ 150,123$
(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.
Note: Analysis excludes one shopping center that is currently under contract to be sold (slated for new multi-family development).
Supplemental Disclosure
Quarter Ended March 31, 2018Same-Center Cash Net Operating Income Analysis
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(dollars in thousands)
Percent
Number of Leased of Total Percent of
Tenant Leases GLA Leased GLA ABR Total ABR
1 Albertson's / Safeway Supermarkets 20 990,998 9.7% 12,055$ 5.8%
2 Kroger Supermarkets 12 511,240 5.0% 7,054 3.4%
3 Rite Aid Pharmacy 14 266,921 2.6% 3,331 1.6%
4 JP Morgan Chase 22 98,473 1.0% 3,029 1.5%
5 SaveMart Supermarkets 4 187,639 1.8% 2,813 1.4%
6 Marshall's / TJMaxx 6 178,195 1.8% 2,649 1.3%
7 Ross Dress For Less / dd's Discounts 7 191,703 1.9% 2,618 1.3%
8 Sprouts Markets 4 159,163 1.6% 2,568 1.2%
9 Trader Joe's 8 96,714 1.0% 2,522 1.2%
10 H-Mart Supermarkets 3 147,040 1.4% 2,400 1.2%
Top 10 Tenants Total 100 2,828,086 27.8% 41,039$ 19.9%
Other Tenants 1,870 7,336,410 72.2% 166,625 80.1%
Total Portfolio 1,970 10,164,496 100.0% 207,664$ 100.0%
Supplemental Disclosure
Quarter Ended March 31, 2018Top Ten Tenants
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(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.
2018 3 79,654 0.8% 992$ 0.5% 12.45$
2019 13 407,547 4.0% 6,358 3.1% 15.60
2020 17 553,496 5.4% 6,413 3.1% 11.59
2021 14 494,281 4.9% 5,246 2.5% 10.61
2022 17 509,775 5.0% 6,430 3.1% 12.61
2023 28 926,015 9.1% 14,051 6.8% 15.17
2024 8 337,727 3.3% 4,614 2.2% 13.66
2025 10 341,785 3.4% 4,919 2.4% 14.39
2026 11 389,933 3.8% 5,235 2.5% 13.42
2027 9 231,234 2.3% 3,694 1.8% 15.98
2028+ 35 1,387,250 13.6% 21,554 10.4% 15.54
165 5,658,697 55.6% 79,506$ 38.4% 14.05$
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.
2018 179 304,779 3.0% 9,263$ 4.5% 30.39$
2019 265 565,924 5.6% 15,470 7.4% 27.34
2020 279 643,835 6.3% 17,718 8.5% 27.52
2021 280 630,523 6.2% 18,437 8.9% 29.24
2022 272 650,811 6.4% 19,327 9.3% 29.70
2023 191 503,362 5.0% 13,998 6.7% 27.81
2024 75 242,681 2.4% 6,405 3.1% 26.39
2025 58 214,572 2.1% 5,741 2.8% 26.76
2026 61 194,045 1.9% 5,701 2.7% 29.38
2027 61 199,079 2.0% 5,870 2.8% 29.49
2028+ 84 356,188 3.5% 10,228 4.9% 28.71
1,805 4,505,799 44.4% 128,158$ 61.6% 28.44$
All Tenants Number of Leased Percent of Total Percent of ABR
Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft.
2018 182 384,433 3.8% 10,255$ 5.0% 26.68$
2019 278 973,471 9.6% 21,828 10.5% 22.42
2020 296 1,197,331 11.7% 24,131 11.6% 20.15
2021 294 1,124,804 11.1% 23,683 11.4% 21.05
2022 289 1,160,586 11.4% 25,757 12.4% 22.19
2023 219 1,429,377 14.1% 28,049 13.5% 19.62
2024 83 580,408 5.7% 11,019 5.3% 18.98
2025 68 556,357 5.5% 10,660 5.2% 19.16
2026 72 583,978 5.7% 10,936 5.2% 18.73
2027 70 430,313 4.3% 9,564 4.6% 22.23
2028+ 119 1,743,438 17.1% 31,782 15.3% 18.23
1,970 10,164,496 100.0% 207,664$ 100.0% 20.43$
(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 March 31, 2018Lease Expiration Schedule
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New Leases Non-Anchor Anchor Total Non-Anchor Anchor
Number of Leases 25 1 26 25 1
Gross Leasable Area (sq. ft.) 46,846 38,500 85,346 46,846 38,500
Initial Base Rent ($/sq. ft.) (1) 27.29$ 22.36$ 25.06$ 27.29$ 22.36$
Tenant Improvements ($/sq. ft.) 4.68$ 3.75$ 4.26$ 4.68$ 3.75$
Leasing Commissions ($/sq. ft.) 2.19$ -$ 1.20$ 2.19$ -$
Weighted Average Lease Term (Yrs.) (2) 6.5 13.0 9.4 6.5 13.0
Renewals Non-Anchor Anchor Total Non-Anchor Anchor
Number of Leases 63 5 68 63 5
Gross Leasable Area (sq. ft.) 149,963 189,033 338,996 149,963 189,033
Initial Base Rent ($/sq. ft.) (1) 30.73$ 17.91$ 23.58$ 30.73$ 17.91$
Tenant Improvements ($/sq. ft.) 1.00$ -$ 0.44$ 1.00$ -$
Leasing Commissions ($/sq. ft.) 0.29$ -$ 0.13$ 0.29$ -$
Weighted Average Lease Term (Yrs.) (2) 5.5 5.0 5.2 5.5 5.0
Total Non-Anchor Anchor Total Non-Anchor Anchor
Number of Leases 88 6 94 88 6
Gross Leasable Area (sq. ft.) 196,809 227,533 424,342 196,809 227,533
Initial Base Rent ($/sq. ft.) (1) 29.91$ 18.66$ 23.88$ 29.91$ 18.66$
Tenant Improvements ($/sq. ft.) 1.88$ 0.63$ 1.21$ 1.88$ 0.63$
Leasing Commissions ($/sq. ft.) 0.74$ -$ 0.34$ 0.74$ -$
Weighted Average Lease Term (Yrs.) (2) 5.7 6.4 6.1 5.7 6.4
(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 March 31, 2018 For the Three Months Ended M
Supplemental Disclosure
Quarter Ended March 31, 2018Leasing Summary
- 17 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor
Comparative # of Leases 19 1 20 19 1
Comparative GLA (sq. ft.) (1) 35,955 38,500 74,455 35,955 38,500
Prior Base Rent ($/sq. ft.) (2) 26.14$ 15.45$ 20.61$ 26.14$ 15.45$
Initial Base Rent ($/sq. ft.) 27.97$ 22.36$ 25.07$ 27.97$ 22.36$
Percentage Change in Base Rents 7.0% 44.7% 21.6% 7.0% 44.7%
Tenant Improvements ($/sq. ft.) 1.82$ 3.75$ 2.82$ 1.82$ 3.75$
Leasing Commissions ($/sq. ft.) 2.65$ -$ 1.28$ 2.65$ -$
Weighted Average Lease Term (Yrs.) (3) 6.4 13.0 9.8 6.4 13.0
Renewals Non-Anchor Anchor Total Non-Anchor Anchor
Comparative # of Leases 63 5 68 63 5
Comparative GLA (sq. ft.) 149,963 189,033 338,996 149,963 189,033
Prior Base Rent ($/sq. ft.) (2) 28.00$ 16.85$ 21.78$ 28.00$ 16.85$
Initial Base Rent ($/sq. ft.) 30.73$ 17.91$ 23.58$ 30.73$ 17.91$
Percentage Change in Base Rents 9.7% 6.3% 8.3% 9.7% 6.3%
Tenant Improvements ($/sq. ft.) 1.00$ -$ 0.44$ 1.00$ -$
Leasing Commissions ($/sq. ft.) 0.29$ -$ 0.13$ 0.29$ -$
Weighted Average Lease Term (Yrs.) (3) 5.5 5.0 5.2 5.5 5.0
Total Non-Anchor Anchor Total Non-Anchor Anchor
Comparative # of Leases 82 6 88 82 6
Comparative GLA (sq. ft.) (1) 185,918 227,533 413,451 185,918 227,533
Prior Base Rent ($/sq. ft.) (2) 27.64$ 16.61$ 21.57$ 27.64$ 16.61$
Initial Base Rent ($/sq. ft.) 30.19$ 18.66$ 23.85$ 30.19$ 18.66$
Percentage Change in Base Rents 9.2% 12.3% 10.6% 9.2% 12.3%
Tenant Improvements ($/sq. ft.) 1.16$ 0.63$ 0.87$ 1.16$ 0.63$
Leasing Commissions ($/sq. ft.) 0.75$ -$ 0.34$ 0.75$ -$
Weighted Average Lease Term (Yrs.) (3) 5.7 6.4 6.1 5.7 6.4
(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 March 31, 2018 For the Three Months Ended M
Supplemental Disclosure
Quarter Ended March 31, 2018Same-Space Comparative Leasing Summary
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Equity Research Coverage
Baird Equity Research RJ Milligan 813.273.8252
Bank of America Merrill Lynch Craig Schmidt 646.855.3640
BTIG Michael Gorman 212.738.6138
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
Green Street Daniel J. Busch 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 Wes Golladay 440.715.2650
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 March 31, 2018Investor Information
Retail Opportunity Investments Corp.
www.roireit.net
NASDAQ: ROIC
11250 El Camino Real, Suite 200
San Diego, CA 92130
Transfer Agent:
Constance Adams
ComputerShare
constance.adams@computershare.com
Investor Relations:
Ashley Rubino
arubino@roireit.net
858.255.4913
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