Enterprising Investor
8 years ago
Retail Opportunity Investments Corp. Reports Strong Second Quarter Results (7/27/16)
SAN DIEGO, July 27, 2016 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the second quarter ended June 30, 2016.
HIGHLIGHTS
Net income of $8.6 million, or $0.08 per diluted share
17.4% increase in FFO(1) per diluted share to $0.27 (2Q’16 vs. 2Q’15)
$181.8 million of grocery-anchored shopping centers acquired during 2Q’16
$289.4 million of grocery-anchored acquisitions committed year-to-date
97.2% portfolio leased rate at June 30, 2016
4.9% increase in same-center cash net operating income (2Q’16 vs. 2Q’15)
6.3% increase in same-center cash net operating income (1st 6 months)
24.7% increase in same-space comparative cash rents on new leases
15.9% increase in cash rents on renewed leases
$224.2 million of common equity raised year-to-date
$200 million of senior unsecured notes private placement committed (3.95%, 2026 maturity)
32.8% debt-to-total market capitalization ratio at June 30, 2016
4.1x interest coverage for 2Q’16
Quarterly cash dividend of $0.18 per share declared
__________________________
(1) A reconciliation of GAAP net income to Funds From Operations (FFO) is provided at the end of this press release.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, “2016 is shaping up thus far to be an outstanding year for the company. We are fully on track to achieve and possibly exceed our key growth and operating objectives for the year. We are already approaching $300 million in grocery-anchored shopping center acquisitions, enhancing our strong presence across our core metropolitan markets. Additionally, we continue to maintain our portfolio above 97% leased, and we continue to achieve solid growth in our same-center and same-space comparative numbers.” Tanz further stated, “While steadily growing our portfolio, we are at the same time enhancing our financial strength and flexibility. Thus far we have secured over $400 million of equity and debt capital, which we have lined up through a variety of sources, efficiently and seamlessly funding our growth, while also enhancing our conservative financial metrics.”
FINANCIAL SUMMARY
For the three months ended June 30, 2016, GAAP net income applicable to common shareholders was $8.6 million, or $0.08 per diluted share, as compared to GAAP net income of $5.4 million, or $0.05 per diluted share for the three months ended June 30, 2015. FFO for the second quarter of 2016 was $30.5 million, or $0.27 per diluted share, as compared to $22.3 million in FFO, or $0.23 per diluted share for the second quarter of 2015, representing a 17.4% increase on a per diluted share basis. ROIC reports FFO as a supplemental performance measure in accordance with the definition set forth by the National Association of Real Estate Investment Trusts. A reconciliation of GAAP net income to FFO is provided at the end of this press release.
At June 30, 2016, ROIC had a total market capitalization of approximately $3.7 billion with approximately $1.2 billion of principal debt outstanding, equating to a 32.8% debt-to-total market capitalization ratio. ROIC’s debt outstanding was comprised of $72.0 million of mortgage debt and approximately $1.1 billion of unsecured debt, with $333.5 million outstanding on its unsecured revolving credit facility at June 30, 2016. Subsequent to the second quarter, ROIC completed an underwritten public offering (see below), utilizing the net proceeds to reduce borrowings outstanding on its unsecured revolving credit facility. Accordingly, ROIC currently has $190.5 million outstanding on its unsecured revolving credit facility.
For the second quarter of 2016, ROIC’s interest coverage was 4.1 times and 94.3% of its portfolio was unencumbered (based on gross leasable area) at June 30, 2016.
ACQUISITION SUMMARY
Year-to-date, ROIC has committed a total of $289.4 million in grocery-anchored shopping center acquisitions. During the first quarter of 2016, ROIC acquired a two-property portfolio for $63.3 million. During the second quarter, ROIC acquired the following two grocery-anchored shopping centers, in separate transactions, totaling $181.8 million.
Bouquet Center
In April 2016, ROIC acquired Bouquet Center for $59.0 million. The shopping center is approximately 149,000 square feet and is anchored by Safeway (Vons) Supermarket, CVS Pharmacy and Ross Dress For Less. The property is located in Santa Clarita, California, within the Los Angeles metropolitan area, and is currently 96.0% leased.
North Ranch Shopping Center
In June 2016, ROIC acquired North Ranch Shopping Center for $122.8 million. The shopping center is approximately 147,000 square feet and is anchored by Kroger (Ralph’s) Supermarket, Trade Joe’s and Rite Aid Pharmacy. The property is located in Westlake Village, California, within the Los Angeles metropolitan area, and is currently 98.7% leased.
Subsequent to the second quarter, ROIC acquired the following grocery-anchored shopping center.
Monterey Center
In July 2016, ROIC acquired Monterey Center for $12.1 million. The shopping center is approximately 26,000 square feet and is anchored by Trader Joe’s and Pharmaca Pharmacy. The property is located in downtown Monterey, California and is currently 100% leased.
In addition, ROIC currently has a binding contract to acquire the following grocery-anchored shopping center.
Bridle Trails Shopping Center
ROIC has a binding contract to acquire Bridle Trails Shopping Center for $32.2 million. The shopping center is approximately 106,000 square feet and is anchored by Red Apple (Unified) Supermarket and Bartell Drugs, a Seattle-based regional pharmacy. The property is located in Kirkland, Washington, within the Seattle metropolitan area, and is currently 100% leased.
PROPERTY OPERATIONS SUMMARY
At June 30, 2016, ROIC’s portfolio was 97.2% leased. For the second quarter of 2016, same-center net operating income (NOI) was $32.2 million, as compared to $30.7 million in same-center NOI for the second quarter of 2015, representing a 4.9% increase. The second quarter comparative same-center NOI includes all of the properties owned by ROIC as of April 1, 2015, totaling 64 shopping centers. For the first six months of 2016, same-center NOI was $62.3 million, as compared to $58.6 million in same-center NOI for the first six months of 2015, representing a 6.3% increase. The first six months comparative same-center NOI includes all of the properties owned by ROIC as of January 1, 2015, totaling 61 shopping centers. ROIC reports same-center NOI on a cash basis. A reconciliation of GAAP operating income to same-center NOI is provided at the end of this press release.
During the second quarter of 2016, ROIC executed 83 leases, totaling 151,062 square feet, achieving an 18.9% increase in same-space comparative base rent, including 46 new leases, totaling 76,006 square feet, achieving a 24.7% increase in same-space comparative base rent, and 37 renewed leases, totaling 75,056 square feet, achieving a 15.9% increase in base rent. ROIC reports same-space comparative base rent on a cash basis.
CAPITAL MARKETS SUMMARY
Year-to-date, ROIC has raised a total of approximately $224.2 million in common equity. In March 2016, ROIC issued $46.1 million of ROIC common equity in the form of operating partnership units in connection with a shopping center acquisitions. Additionally, thus far in 2016 ROIC has issued approximately 2.2 million shares of common stock through its ATM program, raising approximately $45.0 million in net proceeds. Furthermore, in July 2016, ROIC issued approximately 6.6 million shares of common stock through an underwritten public offering, raising approximately $133.1 million in net proceeds. ROIC utilized the net proceeds to reduce borrowings outstanding on its unsecured revolving credit facility.
On July 26, 2016, ROIC entered into an agreement to sell $200 million principal amount of 3.95% senior unsecured notes due 2026 in a direct private placement. ROIC expects to close the transaction in September 2016 and intends to utilize the proceeds to reduce borrowings outstanding on its unsecured revolving credit facility, fund shopping center acquisitions and for general corporate purposes.
CASH DIVIDEND
On June 29, 2016, ROIC distributed to stockholders an $0.18 per share cash dividend. On July 27, 2016, ROIC’s board of directors declared a cash dividend of $0.18 per share, payable on September 29, 2016 to stockholders of record on September 15, 2016.
2016 FFO GUIDANCE
ROIC currently estimates that FFO for the full year 2016 will be within the range of $1.03 to $1.07 per diluted share, and net income to be within the range of $0.38 to $0.39 per diluted share. The following table provides a reconciliation of GAAP net income to FFO.
[tables deleted]
ROIC’s estimates are based on numerous underlying assumptions. ROIC’s management will discuss the company’s guidance and underlying assumptions on its July 28, 2016 conference call. ROIC’s guidance is a forward-looking statement and is subject to risks and other factors described elsewhere in this press release.
CONFERENCE CALL
ROIC will conduct a conference call and audio webcast to discuss its quarterly results on Thursday, July 28, 2016 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time. Those interested in participating in the conference call should dial (877) 312-8783 (domestic), or (408) 940-3874 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the Conference ID: 9535671. A live webcast will also be available in listen-only mode at http://www.roireit.net/. The conference call will be recorded and available for replay beginning at 2:00 p.m. Eastern Time on July 28, 2016 and will be available until 11:59 p.m. Eastern Time on August 4, 2016. To access the conference call recording, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use the Conference ID: 9535671. The conference call will also be archived on http://www.roireit.net/ for approximately 90 days.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
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 June 30, 2016, ROIC owned 77 shopping centers encompassing approximately 9.1 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.
https://globenewswire.com/news-release/2016/07/27/859422/0/en/Retail-Opportunity-Investments-Corp-Reports-Strong-Second-Quarter-Results.html
Enterprising Investor
8 years ago
Retail Opportunity Investments Corp. Announces Closing of Common Stock Offering (7/12/16)
SAN DIEGO, July 12, 2016 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today that it closed its underwritten public offering of 6,555,000 shares of common stock, including 855,000 common shares issued in connection with the underwriters' exercise in full of their option to purchase additional shares. The net proceeds from the offering, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $133.1 million.
The Company intends to use the net proceeds from the offering to reduce borrowings under the Company's $500.0 million unsecured revolving credit facility, which were incurred in part to fund property acquisitions, and for general corporate purposes.
Jefferies, J.P. Morgan, KeyBanc Capital Markets, BofA Merrill Lynch and Wells Fargo Securities acted as joint book-running managers; Baird, BTIG and Stifel acted as joint lead managers; Capital One Securities, Canaccord Genuity and Raymond James acted as co-managers in connection with the public offering.
A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. This offering was made only by means of a prospectus supplement and accompanying prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any shares of common stock nor will there be any sale of such common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, toll free at (877) 821-7388, J.P. Morgan Securities LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, toll free at (866) 803-9204 or KeyBanc Capital Markets Inc., Attention: Prospectus Delivery Department, 127 Public Square, 4th Floor, Cleveland, Ohio 44114, toll free at (800) 859-1783.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
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, 2016, ROIC owned 75 shopping centers encompassing approximately 8.8 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.
https://globenewswire.com/news-release/2016/07/12/855417/0/en/Retail-Opportunity-Investments-Corp-Announces-Closing-of-Common-Stock-Offering.html
Enterprising Investor
8 years ago
Retail Opportunity Investments Corp. Announces Pricing of Offering of Common Stock (7/06/16)
SAN DIEGO, July 06, 2016 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today that it has priced a public offering of 5,700,000 shares of common stock at a price of $21.25 per share, for net proceeds of approximately $115.8 million after deducting underwriting discounts and commissions and estimated offering expenses. The Company has granted the underwriters a 30-day option to purchase up to an additional 855,000 shares.
The Company intends to use the net proceeds from the offering to reduce borrowings under the Company's $500.0 million unsecured revolving credit facility, which were incurred in part to fund property acquisitions, and for general corporate purposes.
Jefferies, J.P. Morgan, KeyBanc Capital Markets, BofA Merrill Lynch and Wells Fargo Securities are acting as joint book-running managers; Baird, BTIG and Stifel are acting as joint lead managers; Capital One Securities, Canaccord Genuity and Raymond James are acting as co-managers in connection with the public offering.
A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. This offering is being made only by means of a prospectus supplement and accompanying prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any shares of common stock nor will there be any sale of such common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, toll free at (877) 821-7388, J.P. Morgan Securities LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, toll free at (866) 803-9204 or KeyBanc Capital Markets Inc., Attention: Prospectus Delivery Department, 127 Public Square, 4th Floor, Cleveland, Ohio 44114, toll free at (800) 859-1783.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
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, 2016, ROIC owned 75 shopping centers encompassing approximately 8.8 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.
http://globenewswire.com/news-release/2016/07/07/854136/0/en/Retail-Opportunity-Investments-Corp-Announces-Pricing-of-Offering-of-Common-Stock.html
Enterprising Investor
8 years ago
Retail Opportunity Investments Corp. Announces Proposed Offering of Common Stock (7/06/16)
SAN DIEGO, July 06, 2016 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today that it plans to offer 5,700,000 shares of common stock in an underwritten public offering. The Company also plans to grant the underwriters a 30-day option to purchase up to an additional 855,000 shares.
The Company intends to use the net proceeds from the offering to reduce borrowings under the Company's $500.0 million unsecured revolving credit facility, which were incurred in part to fund property acquisitions, and for general corporate purposes.
Jefferies, J.P. Morgan and KeyBanc Capital Markets are acting as joint book-running managers for the offering.
The offering will be made pursuant to an effective shelf registration statement and preliminary prospectus supplement and accompanying prospectus filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any shares of common stock nor will there be any sale of such common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, toll free at (877) 821-7388, J.P. Morgan Securities LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, toll free at (866) 803-9204 or KeyBanc Capital Markets Inc., Attention: Prospectus Delivery Department, 127 Public Square, 4th Floor, Cleveland, Ohio 44114, toll free at (800) 859-1783.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
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, 2016, ROIC owned 75 shopping centers encompassing approximately 8.8 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.
http://www.nasdaq.com/press-release/retail-opportunity-investments-corp-announces-proposed-offering-of-common-stock-20160706-00842
Enterprising Investor
8 years ago
Shopping-Center REITs Are on Many Investors’ Lists (3/08/16)
Limited supply causes retailers to show steady demand for existing properties
By Liam Pleven
Downtown may be trendy, but landlords are thriving with properties often seen as suburban eyesores: strip malls and shopping centers.
The main reason: safety.
While economic uncertainty clouds the outlook for many businesses, owners of open-air retail space have gotten a relative boost because their tenants often include grocers, discount-clothing stores and pharmacies—stores that consumers shop at in good times and bad.
“They’ll cut back on food a little bit. They’ll buy hamburger instead of filet mignon,” said Drew Alexander, chief executive of Weingarten Realty Investors, a Houston-based shopping-center landlord whose major tenants include grocers such as Kroger Co. and Whole Foods Market Inc. “But the important thing is they still come to the center.”
At the same time, the tepid economy is limiting construction of new space, according to real-estate executives and analysts. As a result, retailers are showing steady demand for many existing properties, and occupancy is running high, they said.
“There’s an argument that this good-enough environment is ideal,” said Jason White, a senior analyst at Green Street Advisors, a real-estate research firm.
Share prices of real-estate investment trusts that own billions of dollars’ worth of strip malls and shopping centers reflect the favorable conditions. In many cases, they fared better than the broader market when fears of a recession rattled investors early this year and then logged gains as the market rebounded in recent weeks.
Office landlords have gotten hit in 2016 by investor concerns about weak tenant demand if the economy slows, while apartment REITs have suffered from worries that construction of new multifamily buildings will lead to a glut.
By contrast, many shopping-center REITs are up roughly 2% to 4% this year through Monday’s close. The S&P 500 is down slightly more than 2% over the same period, and the MSCI US REIT Index, which tracks owners of various types of properties, is down 0.1%.
On Sunday, analysts at Evercore ISI downgraded the shopping-center sector to “hold” because the companies’ stock-market valuations “seem a bit stretched.”
Nonetheless, “from a fundamental standpoint,” they said in a report, the outlook for the sector is positive “due to the limited supply and the ability to push rents.”
Regional malls get much of the attention from shoppers and retailers, but open-air shopping centers make up a far greater share of America’s total retail square footage, Mr. White said. They can range from small properties with two or three local merchants to large properties occupied by national brands.
New space at such centers has been growing less than 1% annually in recent years, according to the International Council of Shopping Centers, a trade group. By comparison, the amount of space grew by 3.3% in 2006 alone, before the recession hit.
“New supply is at historically low levels,” said Hap Stein, CEO of Regency Centers Corp. , which owns more than 300 properties from Massachusetts to California. Mr. Stein said the firm’s properties are about 96% occupied and rents grew by more than 9% on average in 2015.
Developers also are wary of building new shopping centers because new homes aren’t being built at a rapid clip in suburban areas where this kind of retail space thrives, said Paul Morgan, an analyst at Canaccord Genuity. Real estate in densely populated urban areas is in fashion.
To take the risk of building in a slow-growth economy, developers and lenders generally need a commitment from an anchor tenant to occupy the new space, Mr. Morgan said. And “the anchor tenants are not expanding at the same rate they have in the past,” Mr. Stein said.
The scarcity of new space can put owners of existing properties in desirable locations in a relatively strong position if vacancies arise. Analysts at Cowen & Co. called the recent bankruptcy filing by Sports Authority Inc., a retailer that has stores in many strip malls and shopping centers, an opportunity for REIT landlords.
Conor Flynn, CEO of Kimco Realty Corp. , one of the largest shopping-center REITs, said there is “a waiting list” to get into the firm’s properties and he said anchor stores are more than 98% occupied.
When vacancies do occur, the company can often command a higher rent, Mr. Flynn said. On average, current rents at Kimco’s properties are 37% below the prevailing market rate. “We can’t wait to get boxes [enclosed spaces] back,” he said. “Many times, there’s a higher, better use for that box.”
Still, shopping centers and strip malls also face risks. Many of their tenants must contend with stiff competition and other challenges. Kroger warned investors last week that sales growth could be among the weakest the company has seen in more than a decade.
With occupancy high already, “there’s really not a lot of room to run,” Mr. White said. In addition, leases often include renewal options with predetermined increases, which can “act somewhat as an anchor” on rent growth for a landlord, he said.
Still, “the underlying climate is healthy,” Mr. Morgan said. In the near term, he said, only an accelerating economy would cause shopping-center REITs to lag far behind other types of real estate.
http://www.wsj.com/articles/mall-reits-are-on-many-investors-shopping-lists-1457456123
Enterprising Investor
8 years ago
Retail Opportunity Investments Corp. Provides Acquisition Update (1/07/16)
$479.5 Million of Total Acquisitions in 2015
$243.7 Million of Acquisitions in 4Q’15
$63.3 Million of Acquisitions Under Contract in 1Q’16
SAN DIEGO, Jan. 07, 2016 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today that during 2015 the company completed a total of $479.5 million of grocery-anchored shopping center acquisitions, encompassing approximately 1.3 million square feet.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "Capitalizing on our long-standing history of operating exclusively on the West Coast, during 2015 we continued to source attractive, off-market opportunities to acquire exceptional grocery-anchored shopping centers. In fact, 2015 proved to be the most active and successful year on record for the company, acquiring a total of $479.5 million.” Tanz added, “All of our new acquisitions are well-established, grocery-anchored shopping centers located in densely-populated metropolitan markets and offer numerous opportunities for our team to enhance their underlying value going forward. In summary, our 2015 acquisitions are an excellent strategic fit with our existing portfolio and serve to further our strong presence on the West Coast.”
FOURTH QUARTER 2015 ACQUISITION SUMMARY
Included in the $479.5 million of acquisitions for 2015, during the fourth quarter ROIC acquired five grocery-anchored shopping centers, totaling $243.7 million, encompassing approximately 518,000 square feet. ROIC funded the acquisitions in part with ROIC common equity in the form of operating partnership units. In total, approximately 8.45 million of operating partnership units were issued by the company, based on a value of $17.29 per unit, on average, equating to approximately $146.1 million.
Johnson Creek Center
In November 2015, ROIC acquired Johnson Creek Center for $32.1 million. The shopping center is approximately 109,000 square feet and is anchored by Trader Joe’s and Walgreens. The property is located in Happy Valley, Oregon, within the Portland metropolitan area, and is currently 100% leased.
Iron Horse Plaza
In December 2015, ROIC acquired Iron Horse Plaza for $44.4 million. The shopping center is approximately 62,000 square feet and is anchored by Lunardi’s Markets, a San Francisco based grocer. The property is located in Danville, California, within the San Francisco metropolitan area, and is currently 100% leased.
Sternco Shopping Center
In December 2015, ROIC acquired Sternco Shopping Center for $49.0 million. The shopping center is approximately 113,000 square feet and is anchored by Asian Food Center, a Seattle based grocer. The property is located in Bellevue, Washington, within the Seattle metropolitan area, and is currently 100% leased.
Four Corner Square
In December 2015, ROIC acquired Four Corner Square for $41.9 million. The shopping center is approximately 120,000 square feet and is anchored by Grocery Outlet Supermarket, a West Coast based grocer, and Walgreens. The property is located in Maple Valley, Washington, within the Seattle metropolitan area, and is currently 94.8% leased.
Warner Plaza
In December 2015, ROIC acquired Warner Plaza for $76.3 million. The shopping center is approximately 114,000 square feet and is anchored by Sprouts Market. The property is located in Woodland Hills, California, within the Los Angeles metropolitan area, and is currently 87.9% leased.
FIRST QUARTER 2016 ACQUISITION ACTIVITY
ROIC currently has a binding contract to acquire a two-property portfolio for $63.3 million. ROIC expects to fund the acquisition through the assumption of approximately $16.9 million of existing debt and approximately $46.4 million of ROIC common equity in the form of operating partnership units.
Magnolia Shopping Center
Magnolia Shopping Center is approximately 116,000 square feet and is anchored by Kroger (Ralph’s) Supermarket. The property is located in Santa Barbara, California and is currently 97.7% leased.
Casitas Plaza Shopping Center
Casitas Plaza Shopping Center is approximately 97,000 square feet and is anchored by Albertson’s Supermarket and CVS Pharmacy. The property is located in Carpinteria, California, within Santa Barbara County, and is currently 100% leased.
Tanz stated, “We are very pleased to start 2016 with this transaction. Santa Barbara, often referred to as the Gold Coast of California, is one of the most highly sought after, most protected markets on the West Coast. Additionally, given that we predominately utilized operating partnership units to fund our fourth quarter acquisitions and this pending transaction, we continue to maintain a strong, conservative balance sheet with considerable capacity, which we believe provides the company with the financial wherewithal to continue growing our portfolio, enhancing value and delivering solid results in 2016.”
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
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, 2015, ROIC owned 73 shopping centers encompassing approximately 8.6 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.
http://globenewswire.com/news-release/2016/01/07/800090/0/en/Retail-Opportunity-Investments-Corp-Provides-Acquisition-Update.html
Enterprising Investor
9 years ago
Retail Opportunity Investments Corp. Reports Strong Second Quarter Results (7/29/15)
9.5% Increase in FFO Per Diluted Share
$278.2 Million of Acquisitions Committed YTD
Record 2Q Occupancy & Same-Space Releasing Increase
SAN DIEGO, July 29, 2015 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the three months ended June 30, 2015.
HIGHLIGHTS
•GAAP Net income of $5.2 million, or $0.05 per diluted share
•9.5% increase in FFO(1) per diluted share to $0.23 (2Q'15 vs. 2Q'14)
•$193.3 million of acquisitions completed year-to-date
•$84.9 million of acquisitions currently under contract
•97.3% portfolio leased rate at 6/30/15 (50 bps increase vs. 6/30/14)
•53.5% increase in same-space comparative cash base rents on new leases
•4.4% increase in same-center cash net operating income (1) (2Q'15 vs. 2Q'14)
•36.0% debt-to-total market capitalization ratio at 6/30/15
•3.7 times interest coverage for 2Q'15
•91.5% of portfolio GLA unencumbered at 6/30/15
•Quarterly cash dividend of $0.17 per share declared
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "During the second quarter our leasing team again achieved excellent results, driving occupancy to a new, second quarter high and posting an all-time, record high in same-space releasing rents. Additionally, capitalizing on our off-market sources we continued to expand our portfolio across our core West Coast markets. In total, thus far in 2015 we have secured $278.2 million of grocery-anchored shopping center acquisitions." Tanz commented further, "Building upon our strong results during the first six months of 2015, we are heading into the second half with great momentum and are poised to achieve another strong year of growing our business, enhancing value and delivering solid results."
FINANCIAL SUMMARY
For the three months ended June 30, 2015, GAAP net income attributable to common stockholders was $5.2 million, or $0.05 per diluted share, as compared to GAAP net income of $5.8 million, or $0.07 per diluted share for the three months ended June 30, 2014. Included in GAAP net income for the three month period ended June 30, 2014 was a $3.3 million gain on sale of real estate.
FFO attributable to common stockholders for the second quarter of 2015 was $22.3 million, or $0.23 per diluted share, as compared to $17.0 million in FFO, or $0.21 per diluted share for the second quarter of 2014, representing a 9.5% increase on a per diluted share basis. ROIC reports FFO attributable to common stockholders as a supplemental performance measure in accordance with the definition set forth by the National Association of Real Estate Investment Trusts. A reconciliation of GAAP net income to FFO applicable to common stockholders is provided at the end of this press release.
At June 30, 2015, ROIC had a total market capitalization of approximately $2.4 billion with $855.1 million of debt outstanding, equating to a 36.0% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $76.1 million of mortgage debt and $779.0 million of unsecured debt. At June 30, 2015, ROIC had $286.0 million outstanding on its unsecured credit facility. For the second quarter of 2015, ROIC's interest coverage was 3.7 times and 91.5% of its portfolio was unencumbered (based on gross leasable area) as of June 30, 2015.
ACQUISITION SUMMARY
Year-to-date in 2015, ROIC has committed a total of $278.2 million in grocery-anchored shopping center acquisitions, including: $99.2 million acquired during the first quarter; $23.1 million acquired during the second quarter, $71.0 million acquired thus far in the third quarter and $84.9 million currently under contract.
Pinole Vista & Canyon Park
In May 2015, ROIC acquired key anchor spaces at two of its existing shopping centers for $23.1 million, including a 58,500 square foot space at its Pinole Vista Shopping Center, located in Pinole, California, and a 35,000 square foot leasehold interest at its Canyon Park Shopping Center, located in Bothell, Washington.
Gateway Centre
ROIC has a binding contract to acquire Gateway Centre for $42.5 million. The shopping center is approximately 110,000 square feet and is anchored by Savemart (Lucky) Supermarket and Walgreens. The property is located in San Ramon, California, within the San Francisco metropolitan area, and is currently 94.0% leased.
Iron Horse Plaza
ROIC has a binding contract to acquire Iron Horse Plaza for $42.4 million. The shopping center is approximately 62,000 square feet and is anchored by Lunardi's Markets, a San Francisco-based grocer. The property is located in Danville, California, within the San Francisco metropolitan area, and is currently 100% leased. ROIC expects to fund the acquisition in part with the issuance of approximately $16.4 million in ROIC common equity in the form of operating partnership units, based on a value of $17.25 per unit.
Subsequent to the second quarter, ROIC acquired a three-property portfolio, totaling $71.0 million.
Jackson Square
In July 2015, ROIC acquired Jackson Square for $32.5 million. The shopping center is approximately 114,000 square feet and is anchored by Safeway Supermarket and CVS Pharmacy. The property is located in Hayward, California, within the San Francisco metropolitan area, and is currently 100% leased.
Tigard Promenade
In July 2015, ROIC acquired Tigard Promenade for $21.0 million. The shopping center is approximately 88,000 square feet and is anchored by Safeway Supermarket. The property is located in Tigard, Oregon, within the Portland metropolitan area and is currently 94.2% leased.
Sunnyside Village Square
In July 2015, ROIC acquired Sunnyside Village Square for $17.5 million. The shopping center is approximately 89,000 square feet and is anchored by Haggen Supermarket. The property is located in Happy Valley, Oregon, within the Portland metropolitan area and is currently 100% leased.
PROPERTY OPERATIONS SUMMARY
At June 30, 2015, ROIC's portfolio was 97.3% leased, representing a 30 basis point increase as compared to March 31, 2015 and a 50 basis point increase as compared to June 30, 2014.
For the second quarter of 2015, same-center net operating income ("NOI") was $24.5 million, as compared to $23.4 million in same-center NOI for the second quarter of 2014, representing a 4.4% increase. Same-center NOI includes all of the properties owned by ROIC as of April 1, 2014, totaling 55 shopping centers. ROIC reports same-center NOI on a cash basis. A reconciliation of same-center NOI to GAAP operating income is provided at the end of this press release.
During the second quarter of 2015, ROIC executed 93 leases, totaling 242,693 square feet, achieving a 25.8% increase in same-space comparative base rent, including 37 new leases, totaling 147,116 square feet, achieving a 53.5% increase in same-space comparative base rent, and 56 renewed leases, totaling 95,577 square feet, achieving a 9.9% increase in base rent. ROIC reports same-space comparative base rent on a cash basis.
CASH DIVIDEND
On June 30, 2015, ROIC distributed a $0.17 per share cash dividend. On July 29, 2015, ROIC's board of directors declared a cash dividend of $0.17 per share, payable on September 29, 2015 to stockholders of record on September 15, 2015.
2015 FFO GUIDANCE
ROIC currently estimates that FFO applicable to common stockholders for 2015 will be within the range of $0.91 to $0.94 per diluted share, and GAAP net income to be within the range of $0.24 to $0.25 per diluted share. The following table provides a reconciliation of GAAP net income to FFO applicable to common stockholders (in thousands).
ROIC's estimates are based on numerous underlying assumptions. ROIC's management will discuss the company's guidance and underlying assumptions on its July 30, 2015 conference call. ROIC's guidance is a forward-looking statement and is subject to risks and other factors described elsewhere in this press release.
CONFERENCE CALL
ROIC will conduct a conference call and audio webcast to discuss its quarterly results on Thursday, July 30, 2015 at 10:00 a.m. Eastern Time / 7:00 a.m. Pacific Time. Those interested in participating in the conference call should dial (877) 312-8783 (domestic), or (408) 940-3874 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the Conference ID: 50515877. A live webcast will also be available in listen-only mode at http://www.roireit.net/. The conference call will be recorded and available for replay beginning at 1:00 p.m. Eastern Time on July 30, 2015 and will be available until 11:59 p.m. Eastern Time on August 6, 2015. To access the conference call recording, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use the Conference ID: 50515877. The conference call will also be archived on http://www.roireit.net/ for approximately 90 days.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
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 June 30, 2015, ROIC owned 64 shopping centers encompassing approximately 7.7 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.
http://www.nasdaq.com/press-release/retail-opportunity-investments-corp-reports-strong-second-quarter-results-20150729-01336
Enterprising Investor
10 years ago
Retail Opportunity Investments Corp. Prices Offering of Senior Unsecured Notes (11/18/14)
SAN DIEGO, Nov. 18, 2014 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today that its operating partnership, Retail Opportunity Investments Partnership, LP, has priced an offering of $250 million aggregate principal amount of 4.000% senior unsecured notes in an underwritten public offering. The notes will mature on December 15, 2024. Interest on the notes will be paid semi-annually on June 15th and December 15th, commencing on June 15, 2015. ROIC expects to use the net proceeds from the offering for the repayment of borrowings under its unsecured credit facility, its unsecured term loan, and for general corporate purposes. The offering is expected to close on December 3, 2014, subject to customary closing conditions.
U.S. Bancorp Investments, Inc., Jefferies LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, KeyBanc Capital Markets Inc. and Merrill Lynch, Pierce Fenner & Smith Incorporated acted as joint book-running managers. BMO Capital Markets Corp., RBS Securities Inc. and Regions Securities LLC acted as co-managers.
This offering was made pursuant to an effective shelf registration statement and prospectus and related prospectus supplement filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any notes nor will there be any sale of these notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. A copy of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting: U.S. Bancorp Investments, Inc., 214 North Tryon Street, 26th floor, Charlotte, NC 28202, (877) 558-2607; Jefferies LLC, 520 Madison Avenue, New York, NY 10022, Attention: Investment Grade Syndicate Desk – 3rd Floor (877) 877-0696; J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk - 3rd floor, or by calling collect at (212) 834-4533; or RBC Capital Markets, LLC, Three World Financial Center, 200 Vesey Street, New York, NY 10281, Attention: Debt Capital Markets, (866) 375-6829.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. (Nasdaq:ROIC), a member of the S&P SmallCap 600 Index, is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. As of September 30, 2014, ROIC owned 58 shopping centers encompassing approximately 6.9 million square feet. Additional information is available at: www.roireit.net.
http://globenewswire.com/news-release/2014/11/18/684376/10108921/en/Retail-Opportunity-Investments-Corp-Prices-Offering-of-Senior-Unsecured-Notes.html
Enterprising Investor
10 years ago
Retail Opportunity Investments Corp. Reports Strong Second Quarter Results (7/30/14)
$253.6MM of Acquisitions, 16.7% Increase in FFO Per Diluted Share, Reaffirms 2014 FFO Guidance
Retail Opportunity Investments Corp. ROIC -0.88% announced today financial and operating results for the three months ended June 30, 2014.
HIGHLIGHTS
• Net income of $0.07 per diluted share for 2Q'14
• 16.7% increase in FFO (1) per diluted share to $0.21 (2Q'14 vs. 2Q'13)
• $253.6 million in shopping center acquisitions completed in 2Q'14
• $357.8 million in shopping center acquisitions committed year-to-date
• 96.8% portfolio leased rate at June 30, 2014
• 2.8% increase in same-center cash net operating income (2Q'14 vs. 2Q'13)
• 8.3% increase in same-space cash annualized base rent (new and renewed leases)
• $205.5 million of net proceeds raised through common share offering
• 96.1% of company's warrants retired to date (remaining warrants expire Oct. '14)
• 31.6% debt-to-total market capitalization ratio at June 30, 2014
• 3.5 times interest coverage ratio for 2Q'14
• ROIC added to the S&P SmallCap 600 Index
• Quarterly cash dividend of $0.16 per share declared
_______________________
(1) A reconciliation of GAAP net income to Funds From Operation (FFO) is provided at the end of this press release.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "We are on pace to have another strong year of setting new records for the company across each key aspect of our business. Year-to-date, we have already secured $357.8 million of shopping center acquisitions, including our largest and most significant acquisition to date, Fallbrook Center. In terms of property operations and leasing, we ended the first half of the year at a new, all-time high portfolio leased rate of 96.8% and again achieved solid growth in same-center net operating income and same-space comparative rents. With respect to our balance sheet, thus far in 2014 we have raised $268.1 million in equity proceeds to fund our acquisition program and maintain our conservative financial ratios." Tanz also commented, "With the strong fundamentals across our core markets, together with the ongoing demand for space and multitude of opportunities embedded in our portfolio to enhance value, we are heading into the second half of the year with great momentum and are well-positioned to continue growing our business."
FINANCIAL SUMMARY
For the three months ended June 30, 2014, net income attributable to common stockholders was $5.8 million, or $0.07 per diluted share, as compared to net income of $2.5 million, or $0.03 per diluted share for the three months ended June 30, 2013. FFO for the second quarter of 2014 was $17.0 million, or $0.21 per diluted share, as compared to $12.7 million in FFO, or $0.18 per diluted share for the second quarter of 2013, representing a 16.7% increase on a per diluted share basis. For the six months ended June 30, 2014, net income was $9.0 million, or $0.12 per diluted share, as compared to net income of $4.8 million, or $0.07 per diluted share for the first six months of 2013. FFO for the first six months of 2014 was $33.6 million, or $0.42 per diluted share, as compared to $24.2 million in FFO, or $0.36 per diluted share for the first six months of 2013. ROIC reports FFO as a supplemental performance measure. A reconciliation of GAAP net income to FFO is provided at the end of this press release.
At June 30th, 2014, ROIC had a total market capitalization of approximately $2.2 billion with $684.3 million of debt outstanding, equating to a 31.6% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $116.5 million of mortgage debt and $567.8 million of unsecured debt. At June 30, 2014, ROIC had $121.8 million outstanding on its unsecured credit facility. For the second quarter of 2014, ROIC's interest coverage was 3.5 times and 86.5% of its portfolio was unencumbered (based on gross leasable area) as of June 30, 2014.
ACQUISITION SUMMARY
During the second quarter of 2014, ROIC acquired three shopping centers, in separate transactions, for a total of $253.6 million. During the first six months of 2014, ROIC acquired five shopping centers, in separate transactions, for a total of $322.7 million. Additionally, ROIC currently has a binding contract to acquire a grocery-anchored shopping center for $35.1 million.
North Park Plaza
In April 2014, ROIC acquired North Park Plaza for $27.8 million. The shopping center is approximately 77,000 square feet and is anchored by SF Supermarket. The property is located in San Jose, California and is currently 100% leased.
Aurora Square
In May 2014, ROIC acquired a shopping center for $15.8 million, located in Shoreline, Washington, within the Seattle metropolitan area. The property is approximately 66,000 square feet and is contiguous to an existing ROIC grocery-anchored shopping center, Aurora Square. The newly acquired property, together with Aurora Square, aggregate 104,000 square feet and is anchored by Marshall's (newly acquired property) and Central Supermarket (ROIC's existing shopping center). The combined shopping center is currently 96.8% leased.
Fallbrook Center
In June 2014, ROIC acquired Fallbrook Center for $210.0 million. The property is located in West Hills, California and is one of the leading shopping centers serving the West San Fernando Valley, a densely-populated, affluent community within the Los Angeles metropolitan area. The property totals approximately 1,120,000 square feet of gross leasable area (751,000 square feet of owned GLA). Fallbrook Center is currently 98.5% leased, featuring three supermarkets (Kroger (Ralph's) Supermarket, Trader Joe's and Sprouts) along with a diverse mix of major retailers including WalMart, Home Depot, Target, and Kohl's among many national, regional and local retailers.
Wilsonville Town Center
ROIC has a binding contract to acquire Wilsonville Town Center for $35.1 million. The shopping center is approximately 168,000 square feet and is currently 93.4% leased, anchored by Unified (Thriftway) Supermarket and Rite-Aid Pharmacy. The property is located in Wilsonville, Oregon, within the Portland metropolitan area, and is situated in close proximity to ROIC's existing Wilsonville Old Town Square, which ROIC developed in 2012. ROIC expects to fund the acquisition in part with the issuance of $15.7 million in ROIC common equity in the form of operating partnership units, based on a value of $16.00 per unit.
DISPOSITION SUMMARY
During the second quarter, ROIC sold one non-core property, Phillips Village, for $16.0 million, recording a net gain on sale of $3.3 million.
CAPITAL MARKETS SUMMARY
In May 2014, ROIC was added to the S&P SmallCap 600 Index. In June 2014, ROIC completed an underwritten public offering of common stock, issuing 14,375,000 shares, including the underwriters' overallotment option. The net proceeds from offering, after deducting underwriting discounts and commissions and offering expenses, totaled $205.5 million.
WARRANT UPDATE
During the second quarter of 2014, approximately 2.8 million warrants were exercised, providing ROIC with $33.1 million of proceeds. Thus far in the third quarter of 2014, approximately 0.6 million warrants have been exercised, providing ROIC with $7.2 million of proceeds.
To date, 96.1% of ROIC's outstanding warrants have been retired, including: approximately 22.9 million warrants exercised (including 18.9 million warrants exercised in 2013 and 4.0 million warrants exercised year-to-date in 2014), providing ROIC with $274.5 million of proceeds; approximately 16.6 million warrants repurchased by ROIC in 2013, for an aggregate purchase price of $32.8 million; and all 8.0 million founders' warrants exercised on a cashless basis in 2013. ROIC currently has approximately 1.9 million warrants outstanding, scheduled to expire in October 2014.
CASH DIVIDEND
On June 27, 2014, ROIC distributed a $0.16 per share cash dividend. On July 30, 2014, ROIC's board of directors declared a cash dividend of $0.16 per share, payable on September 29, 2014 to stockholders of record on September 15, 2014.
CONFERENCE CALL
ROIC will conduct a conference call and audio webcast to discuss its quarterly results on Thursday, July 31, 2014 at 10:00 a.m. Eastern Time. Those interested in participating in the conference call should dial (877) 312-8783 (domestic), or (408) 940-3874 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the Conference ID: 48500148. A live webcast will also be available in listen-only mode at http://www.roireit.net /. The conference call will be recorded and available for replay beginning at 1:00 p.m. Eastern Time on July 31, 2014 and will be available until 11:59 p.m. Eastern Time on August 11, 2014. To access the conference call recording, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use the Conference ID: 48500148. The conference call will also be archived at http://www.roireit.net / for approximately 90 days.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. ROIC -0.88% , a member of the S&P SmallCap 600 Index, is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. As of June 30, 2014, ROIC owned 59 shopping centers encompassing approximately 6.9 million square feet. Additional information is available at: www.roireit.net .
http://www.marketwatch.com/story/retail-opportunity-investments-corp-reports-strong-second-quarter-results-2014-07-30
Enterprising Investor
10 years ago
Retail Opportunity Investments Corp. to Acquire Fallbrook Shopping Center for $210 Million 96/02/14)
Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today that it has entered into a binding contract to acquire Fallbrook Shopping Center for $210.0 million in cash. The property is located in West Hills, California and is one of the leading shopping centers serving the West San Fernando Valley, a densely-populated, affluent community within the Los Angeles metropolitan area. Fallbrook Shopping Center has approximately 1,120,000 square feet of gross leaseable area (762,000 square feet of owned GLA). ROIC expects to close the transaction during the second quarter of 2014.
HIGHLIGHTS
• Strong trade area demographics (Trade area: 474K population, $100K HH Income)
• 98% leased (96% are national retailers, 66% are investment-grade rated)
• Features three supermarkets (Ralph's, Trader Joe's and Sprouts)
• Diverse mix of major retailers (WalMart, Home Depot, Target, Kohl's)
• 87% leased to anchor tenants with an average remaining lease term of 12 years
• Enhances ROIC's long-term cash flow and tenant diversification
• Increases ROIC's pro forma unencumbered GLA to 87%
• Accretive to ROIC's net income and fund from operations per diluted share
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "We are very pleased to be acquiring this exceptional property. Fallbrook is one of the strongest shopping centers in the San Fernando Valley and is an excellent strategic fit with our existing portfolio, given its location and market position, as well as its diverse mix of tenants, many of which are necessity-based retailers. In addition to the strategic attributes, we expect that the transaction will be immediately accretive and enhance our long-term, stable cash flow. Going forward, there are opportunities to increase cash flow and enhance value through implementing a variety of leasing, repositioning and development initiatives, as well as capitalizing on economies of scale and operating synergies. We look forward to integrating Fallbrook into our portfolio, as one of our flagship properties."
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. (Nasdaq:ROIC), a member of the S&P SmallCap 600 Index, is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. As of March 31, 2014, ROIC owned 56 shopping centers encompassing approximately 6.0 million square feet. Additional information is available at: www.roireit.net.
Enterprising Investor
10 years ago
Vornado Weighs Spinning Off Suburban Shopping Centers (3/11/14)
Deal Would Spin Off Strip Centers, Merge Them with Retail Opportunity Investments Corp.
Commercial landlord Vornado Realty Trust is weighing a merger of its suburban shopping centers with a West Coast company, according to three people familiar with the situation.
Vornado in recent months has discussed a deal in which it would spin off its strip malls into a separate company, which it then would merge with San Diego-based Retail Opportunity Investments Corp., the people said. Instead of cash, Vornado shareholders would take a majority stake in the combined company, a structure that would help New York-based Vornado avoid a large tax payment.
Talks are continuing and could fall apart, the people said. Vornado, which has tapped Morgan Stanley and Goldman Sachs Group Inc. as advisers, also is studying other scenarios for the business, which analysts value at $2 billion to $3 billion.
Options include keeping the strip centers or spinning them off to shareholders, the people said. Vornado Chairman and Chief Executive Steven Roth, 72 years old, is known as a deliberative executive who has taken years to pull the trigger on some big deals.
A spinoff would allow Vornado, one of the largest U.S. real-estate investment trusts, to focus on its high-end office towers and retail shops in Manhattan and Washington. The company's strip-mall business consists of over 100 properties and 15 million square feet largely in the Northeast.
Vornado raised the possibility of spinning off its strip centers last year in an apparent response to pressure from investors and analysts who have complained that the company operated in too many sectors and was unfocused. Shares of Vornado, with a market capitalization of about $18.5 billion, have lagged behind its competitors for much of the past half-decade.
"There's no good reason for an office company and a shopping-center company to be housed under the same roof," said Alexander Goldfarb, an analyst with Sandler O'Neill + Partners.
Some investors have been eager for a split.
"They'd probably be rewarded by the market if they simplified further and focused more on their New York and D.C. portfolio," said Keith Pauley, a managing director with LaSalle Investment Management, which owns about 2.2 million Vornado shares.
Vornado's skyscrapers and retail properties are high-end, with tenants in New York including Bill Ackman's Pershing Square Capital Management LP and the U.S. flagship of retailer Uniqlo.
Mr. Roth said on a recent conference call that the strip-center business is "a cash cow of the highest order." Yet he also said the company is considering many options and the future of the business is "very high on our thought pad."
Cleaving off the strip-mall business would be Vornado's most significant move yet to simplify its strategy. In the past two years, it has been selling regional shopping malls and showroom space for wholesalers, and unwinding some losing investments. Last September, it said it had sold the last of its stake in J.C. Penney Co. at a loss estimated by analysts at $250 million.
Since January 2012, Vornado has sold more than $2.5 billion in assets, helping its stock price. The company's shares have produced a total return of 18.5%, including dividends, in the past six months, outperforming the Dow Jones Equity All REIT Total Return Index, which returned 7.6% over the same period.
For Mr. Roth, an outspoken executive who grew up in the Bronx, N.Y., the strip-mall portfolio was the foundation of his real-estate empire. He built up his real-estate holdings throughout the 1980s, early on by taking control of the New Jersey-based discount appliance store chain Two Guys From Harrison.
As values swelled and Mr. Roth expanded rapidly into office buildings in Manhattan and Washington, Vornado became a stock-market darling that at its peak controlled more than 75 million square feet of commercial property. But he also hesitated on some big investments, letting a prime Manhattan development sit fallow for years before ultimately building what is today the headquarters of Bloomberg LP.
At a shopping-center conference in Las Vegas last year, Mr. Roth met with Kenneth Bernstein, chief executive of Acadia Realty Trust, to discuss the possibility of merging Vornado's strip-center business with Acadia, according to people familiar with the meeting.
Acadia declined the offer last year, according to these people, saying that the company wasn't interested in owning suburban retail assets. People familiar with Vornado's plans said that Mr. Roth would prefer to spin off the strip-mall portfolio using a deal structure known as a Reverse Morris Trust, which would help the company avoid a large tax penalty as long as Vornado holders control more than 50% of the merged company's stock. That has limited the field of potential partners to smaller companies such as Acadia and ROIC.
ROIC has a market value of about $1 billion and owns 54 shopping centers in California, Oregon and Washington.
Vornado is weighing the future of its strip malls at a time when the retail sector is recovering slowly from the downturn, and while strip centers are lagging behind enclosed malls and pricier urban retail spaces in both rent and occupancy growth.
But investors still are willing to pay strong prices for strip malls because there has been little new supply added and commercial real estate in general has been attractive in a low-interest rate environment. According to Green Street Advisors' Commercial Property Price Index, strip-center prices are up 13% over the past year.
Write to Eliot Brown at eliot.brown@wsj.com and Robbie Whelan at robbie.whelan@wsj.com
http://online.wsj.com/news/articles/SB10001424052702304704504579433501656895382?mod=WSJ_qtoverview_wsjlatest&mg=reno64-wsj
Enterprising Investor
10 years ago
Retail Opportunity Investments Corp. Reports Strong 2013 Results (2/24/14)
Company Increases Dividend 6.7% & Establishes 2014 FFO Guidance
SAN DIEGO, Feb. 24, 2014 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today financial and operating results for the year and fourth quarter ended December 31, 2013.
YEAR 2013 HIGHLIGHTS
•Net income of $34.0 million, or $0.48 per diluted share
•Funds From Operation (FFO) of $76.0 million, or $1.07 per diluted share(1)
•$437.1 million in shopping center acquisitions
•96.3% portfolio occupancy rate at December 31, 2013
•6.8% increase in same-center cash net operating income (2013 vs. 2012)
•7.3% increase in same-space comparative cash rents
•Awarded investment grade ratings from Moody's and Standard & Poor's
•36.5% debt-to-total market capitalization ratio at December 31, 2013
•88.4% of the company's total outstanding warrants retired to date
•13.2% increase in cash dividends per share paid (2013 vs. 2012)
4TH QUARTER 2013 HIGHLIGHTS
•Net income of $4.0 million, or $0.05 per diluted share
•FFO of $16.4 million, or $0.21 per diluted share(1)
•$101.6 million in shopping center acquisitions
•6.7% increase in same-center cash net operating income (4Q13 vs. 4Q12)
•10.4% increase in same-space comparative cash rents
•$250 million senior unsecured notes issued (due 2023, 5.0% coupon)
•4.3 times interest coverage ratio for 4Q'13
•Quarterly cash dividend of $0.16 per share declared (6.7% increase)
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(1) A reconciliation of GAAP net income to FFO is provided at the end of this press release.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "During 2013, we achieved record results in every facet of our business. We continued to expand our portfolio significantly and deepen our presence on the West Coast, acquiring a record $437 million of grocery-anchored shopping centers. Additionally, we steadily increased occupancy throughout the year, reaching a new, record high of 96.3% as of year-end, and achieved a solid 6.8% increase in same-center cash net operating income and a 7.3% increase in same-space cash rents. During 2013, we enhanced our financial strength, achieving several important milestones. The company was awarded investment grade ratings and successfully completed its first investment-grade bond offering. Additionally, we refinanced our unsecured debt facilities, lowering our borrowing costs, to a new record low for the company, and expanding the capital availability." Tanz also commented, "We look forward to 2014 with much enthusiasm and are confident that we have the portfolio, financial strength and strategy to continue advancing our West Coast shopping center franchise and building shareholder value."
FINANCIAL SUMMARY
For the three months ended December 31, 2013, net income attributable to common stockholders was $4.0 million, or $0.05 per diluted share, as compared to a net loss of $0.3 million, or $0.01 per diluted share for the three months ended December 31, 2012. FFO for the fourth quarter of 2013 was $16.4 million, or $0.21 per diluted share, as compared to $8.5 million in FFO, or $0.15 per diluted share for the fourth quarter of 2012. ROIC reports FFO as a supplemental performance measure. A reconciliation of GAAP net income to FFO is provided at the end of this press release.
For the twelve months ended December 31, 2013, net income was $34.0 million, or $0.48 per diluted share, as compared to net income of $7.9 million, or $0.15 per diluted share for 2012. FFO for the year 2013 was $76.0 million, or $1.07 per diluted share, as compared to FFO of $39.1 million, or $0.75 per diluted share for 2012. Included in net income and FFO for the year ended December 31, 2013, is a one-time, non-cash GAAP gain-on-consolidation of $20.4 million recorded in the third quarter as a result of ROIC's acquisition of the remaining 51% joint venture interest in Crossroads Shopping Center. Prior to the third quarter 2013, ROIC held a 49% unconsolidated joint venture interest in Crossroads. At December 31, 2013, ROIC had no unconsolidated joint venture interests.
At December 31, 2013, ROIC had a total market capitalization of approximately $1.7 billion with $621.7 million of debt outstanding, equating to a 36.5% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $118.9 million of mortgage debt and $506.9 million of unsecured debt, including $250 million of senior unsecured notes, which ROIC issued, through its operating partnership, in December 2013. At December 31, 2013, ROIC had $56.9 million outstanding on its unsecured credit facility and $200.0 million outstanding on its unsecured term loan. For fourth quarter 2013, ROIC's interest coverage was 4.3 times.
2013 ACQUISITION ACTIVITY
During 2013, ROIC acquired twelve grocery-anchored shopping centers for a total of $437.1 million, including the following three shopping centers acquired during the fourth quarter for a total of $101.6 million.
Peninsula Marketplace
In October 2013, ROIC acquired Peninsula Marketplace for $35.9 million. The shopping center is approximately 95,000 square feet and is anchored by Kroger (Ralph's) Supermarket. The property is located in Huntington Beach, California, in the heart of Orange County, and is currently 100% leased.
Country Club Village
In November 2013, ROIC acquired Country Club Village for $30.9 million. The shopping center is approximately 111,000 square feet and is anchored by Walmart Neighborhood Market and CVS Pharmacy. The property is located in San Ramon, California, within the San Francisco metropolitan area, and is currently 91.1% leased.
Plaza de la Cañada
In December 2013, ROIC acquired Plaza de la Cañada for $34.8 million. The shopping center is approximately 100,000 square feet and is anchored by a new Gelson's Supermarket, a Southern California based high-end grocer, and Rite Aid Pharmacy. The property is located in La Cañada Flintridge, California, within the Los Angeles metropolitan area, and is currently 100% leased.
2014 ACQUISITION ACTIVITY
Year-to-date in 2014, ROIC has acquired one shopping center and currently has a binding contract to acquire an additional shopping center, in separate transactions, aggregating $69.1 million.
Tigard Marketplace
In February 2014, ROIC acquired Tigard Marketplace for $25.1 million. The shopping center is approximately 137,000 square feet and is anchored by H-Mart Supermarket. The property is located in Tigard, Oregon, within the Portland metropolitan area, and is currently 90.1% leased.
Creekside Plaza
ROIC has a binding contract to acquire Creekside Plaza for $44.0 million. The shopping center is approximately 129,000 square feet and is anchored by Stater Brothers Supermarket. The property is located in Poway, California, within the San Diego metropolitan area, and is currently 100% leased.
CASH DIVIDEND
On December 30, 2013, ROIC distributed a $0.15 per share cash dividend. During 2013, ROIC distributed quarterly cash dividends totaling $0.60 per share, representing a 13.2% increase over dividends paid during 2012.
On February 21, 2014, ROIC's board of directors declared a cash dividend of $0.16 per share, payable on March 28, 2014 to stockholders of record on March 14, 2014. The $0.16 per share dividend represents a 6.7% increase over ROIC's previous dividend.
WARRANT UPDATE
To date, 88.4% of ROIC's outstanding warrants have been retired, including: 19.1 million warrants exercised, providing ROIC with $228.8 million of proceeds; 16.6 million warrants repurchased by ROIC, for an aggregate purchase price of $32.8 million; and all 8.0 million founders' warrants exercised on a cashless basis in February 2013. ROIC currently has 5.8 million warrants outstanding, scheduled to expire in October 2014.
2014 FFO GUIDANCE
ROIC is establishing FFO guidance for 2014 to be within the range of $0.80 to $0.85 per diluted share, and net income to be within the range of $0.16 to $0.17 per diluted share. The following table provides a reconciliation of GAAP net income to FFO.
ROIC's estimates are based on numerous underlying assumptions. ROIC's management will discuss the company's guidance and underlying assumptions on its February 25, 2014 conference call. ROIC's guidance is a forward-looking statement and is subject to risks and other factors described elsewhere in this press release.
CONFERENCE CALL
ROIC will conduct a conference call and audio webcast to discuss its quarterly results on Tuesday, February 25, 2014 at 12:00 p.m. Eastern Time. Those interested in participating in the conference call should dial (877) 312-8783 (domestic), or (408) 940-3874 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the Conference ID: 20561983. A live webcast will also be available in listen-only mode at http://www.roireit.net/. The conference call will be recorded and available for replay beginning at 3:00 p.m. Eastern Time on February 25, 2014 and will be available until 11:59 p.m. Eastern Time on March 4, 2014. To access the conference call recording, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use the Conference ID: 20561983. The conference call will also be archived on http://www.roireit.net/ for approximately 90 days.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. As of December 31, 2013, ROIC owned 54 shopping centers encompassing approximately 5.8 million square feet. Additional information is available at: www.roireit.net.
http://www.nasdaq.com/press-release/retail-opportunity-investments-corp-reports-strong-2013-results-20140224-01228
Enterprising Investor
11 years ago
Retail Opportunity Investments Corp. Prices Inaugural Offering of Senior Unsecured Notes (12/05/13)
$250 Million 5.00% Senior Unsecured Notes Due 2023
SAN DIEGO, Dec 05, 2013 (GLOBE NEWSWIRE via COMTEX) -- Retail Opportunity Investments Corp. announced today that its operating partnership, Retail Opportunity Investments Partnership, LP, has priced its inaugural offering of $250 million aggregate principal amount of 5.00% senior unsecured notes in an underwritten public offering. The notes will mature on December 15, 2023. Interest on the notes will be paid semi-annually on June 15th and December 15th, commencing on June 15, 2014. ROIC expects to use the net proceeds from the offering for the repayment of borrowings under its unsecured credit facility and for general corporate purposes. The offering is expected to close on December 9, 2013, subject to customary closing conditions.
J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, KeyBanc Capital Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint book-running managers. BMO Capital Markets Corp., PNC Capital Markets LLC, RBC Capital Markets, LLC, RBS Securities Inc. and Regions Securities LLC acted as co-managers.
This offering was made pursuant to an effective shelf registration statement and prospectus and related prospectus supplement filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any notes nor will there be any sale of these notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. A copy of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting: J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk - 3rd floor, (212) 834-4533; U.S. Bancorp Investments, Inc., 214 North Tryon Street, 26th floor, Charlotte, NC 28202, (877) 558-2607; or Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, NC 28262, Attention: Capital Markets Client Support, (800) 326-5897.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. /quotes/zigman/114911/delayed/quotes/nls/roic ROIC +0.21% is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. As of September 30, 2013 ROIC owned 51 shopping centers totaling approximately 5.5 million square feet. Additional information is available at www.roireit.net .
http://www.marketwatch.com/story/retail-opportunity-investments-corp-prices-inaugural-offering-of-senior-unsecured-notes-2013-12-05?reflink=MW_news_stmp
Enterprising Investor
11 years ago
Retail Opportunity Investments Corp. Reports Strong Third Quarter 2013 Results (10/31/13)
SAN DIEGO, Oct. 31, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today financial and operating results for the three months ended September 30, 2013.
HIGHLIGHTS
•Net income of $25.3 million, or $0.34 per diluted share for 3Q'13
•Funds From Operation (FFO) of $35.4 million, or $0.48 per diluted share(1) for 3Q'13
•$153.7 million of shopping center acquisitions completed in 3Q'13 ($368.0 million YTD)
•5.6% increase in same-center cash net operating income (3Q'13 vs. 3Q'12)
•95.3% portfolio occupancy at September 30, 2013
•33.0% debt-to-total market capitalization ratio at September 30, 2013
•4.5 times interest coverage ratio for 3Q'13
•Extends, expands & lowers borrowing costs of unsecured debt facilities
•87.3% of the company's total outstanding warrants retired to date
•Quarterly cash dividend of $0.15 per share of common stock declared
(1) A reconciliation of GAAP net income to FFO is provided at the end of this press release.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "2013 is shaping up to be one of the strongest years on record for the company, as we continue to advance our business across all fronts. Thus far in 2013, we have acquired $368 million of grocery-anchored shopping centers, enhancing our presence in each of our core West Coast markets. We are also capitalizing on the strong demand for space across our portfolio. During the third quarter we increased our overall portfolio occupancy to a high of 95.3% and achieved a solid, 5.6% increase in same-center cash NOI. Additionally, in light of being awarded investment grade ratings earlier this year, we recently expanded, extended and lowered the borrowing costs on our unsecured debt facilities." Tanz added, "Looking ahead, we are excited about finishing the year strong and look forward to continuing to take our business to new heights in 2014."
FINANCIAL SUMMARY
For the three months ended September 30, 2013, net income attributable to common stockholders was $25.3 million, or $0.34 per diluted share. FFO for the third quarter of 2013 was $35.4 million, or $0.48 per diluted share. Included in net income and FFO is a one-time, non-cash GAAP gain-on-consolidation of $20.4 million recorded in the third quarter as a result of ROIC's acquisition of the remaining 51% joint venture interest in Crossroads Shopping Center. Prior to the third quarter, ROIC held a 49% unconsolidated joint venture interest in Crossroads. For the nine months ended September 30, 2013, net income was $30.0 million, or $0.44 per diluted share. FFO for the first nine months of 2013 was $59.6 million, or $0.87 per diluted share. ROIC reports FFO as a supplemental performance measure. A reconciliation of GAAP net income to FFO is provided at the end of this press release.
At September 30, 2013, ROIC had a total market capitalization of $1.52 billion with $501.7 million of debt outstanding, equating to a 33.0% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $126.9 million of mortgage debt and $374.8 million of unsecured debt, including $174.8 million outstanding on its unsecured credit facility. For the three months ended September 30, 2013, ROIC's interest coverage ratio was 4.5 times.
In September 2013, ROIC amended its unsecured revolving credit facility, modifying certain key terms, including: (1) increasing the borrowing capacity from $200 million to $350 million; (2) increasing the accordion feature, allowing the company to expand the borrowing capacity of the facility by another $350 million, subject to commitments and other conditions; (3) extending the maturity date to September 2017; and (4) lowering the interest rate spread to 110 basis points over LIBOR.
INVESTMENT SUMMARY
During the third quarter 2013, ROIC acquired three grocery-anchored shopping centers in separate transactions, totaling $153.7 million. Subsequent to the third quarter, ROIC acquired one grocery-anchored shopping center for $32.5 million. Year-to-date, ROIC has acquired 10 grocery-anchored shopping centers in separate transactions, totaling $368.0 million.
Robinwood Shopping Center
In August 2013, ROIC acquired Robinwood Shopping Center for $14.2 million. The shopping center is approximately 71,000 square feet and is anchored by a new WalMart Neighborhood Market. The property is located in West Linn, Oregon, within the Portland metropolitan area and is currently 95.6% leased.
Crossroads Shopping Center
In September 2013, ROIC acquired the remaining 51% interest in Crossroads Shopping Center for $87.1 million. ROIC had previously acquired a 49% interest in the property in December 2010. The shopping center is approximately 464,000 square feet and is anchored by Kroger (QFC) Supermarket, Sports Authority and Bed, Bath & Beyond. Crossroads is located in Bellevue, Washington, within the Seattle metropolitan area and is currently 99.5% leased. ROIC funded its acquisition of the remaining 51% interest through the assumption of an existing $49.6 million mortgage and the issuance of $37.5 million in ROIC common equity to the prior 51% owner in Crossroads, in the form of approximately 2.6 million operating partnership units, based on a value of $14.25 per unit.
Five Points Plaza
In September 2013, ROIC acquired Five Points Plaza for $52.4 million. The shopping center is approximately 161,000 square feet and is anchored by Trader Joe's. The property is located in Huntington Beach, California, in the heart of Orange County and is currently 100% leased. ROIC funded the acquisition in part with the issuance of $8.8 million in ROIC common equity in the form of approximately 0.7 million operating partnership units, based on a value of $13.57 per unit.
Peninsula Marketplace
In October 2013, ROIC acquired Peninsula Marketplace for $32.5 million. The shopping center is approximately 95,000 square feet and is anchored by Kroger (Ralphs) Supermarket and CVS Pharmacy. The property is located in Huntington Beach, California, in the heart of Orange County and is currently 100% leased.
CASH DIVIDEND
On September 30, 2013, ROIC distributed a $0.15 per share cash dividend. On October 30, 2013, ROIC's board of directors declared a cash dividend on its common stock of $0.15 per share, payable on December 30, 2013 to stockholders of record on December 16, 2013.
WARRANT UPDATE
To date, 87.3% of ROIC's total outstanding warrants have been retired, including: 18.6 million warrants exercised, including 0.2 million exercised during the third quarter 2013, providing ROIC with $222.8 million of proceeds; 16.6 million warrants repurchased by ROIC, including 0.7 million repurchased during the third quarter, for an aggregate purchase price of $32.8 million; and all 8.0 million founders' warrants exercised on a cashless basis in February 2013. ROIC currently has 6.3 million warrants outstanding, scheduled to expire in October 2014.
2013 FFO GUIDANCE
Based on ROIC's actual results for the first nine months of 2013, and taking into account the warrants retired to date, ROIC currently estimates FFO for the full year 2013 will be within the range of $1.03 to $1.05 per diluted share and net income will be within the range of $0.47 to $0.49 per diluted share. ROIC's guidance does not incorporate any assumption regarding its remaining outstanding warrants. ROIC's management will discuss the company's guidance on its October 31, 2013 conference call.
CONFERENCE CALL
ROIC will conduct a conference call and audio webcast to discuss its quarterly results on October 31, 2013 at 12:00 p.m. Eastern Time. Those interested in participating in the conference call should dial (877) 312-8783 (domestic), or (408) 940-3874 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the Conference ID: 44426623. A live webcast will also be available in listen-only mode at: www.roireit.net. The conference call will be recorded and available for replay beginning at 4:00 p.m. Eastern Time on October 31, 2013 and will be available until 11:59 p.m. Eastern Time on November 7, 2013. To access the conference call recording, dial (855) 859-2056 (domestic), (404) 537-3406 (international) and use the Conference ID: 44426623. The conference call will also be archived at: www.roireit.net for approximately 90 days.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. As of September 30, 2013, ROIC owned 51 shopping centers encompassing approximately 5.5 million square feet. Additional information is available at: www.roireit.net.
Read more: http://www.nasdaq.com/press-release/retail-opportunity-investments-corp-reports-strong-third-quarter-2013-results-20131031-00529#ixzz2jJ2wuz7R
Enterprising Investor
11 years ago
Retail Opportunity Investments Corp. Provides Acquisitions' Update & Increases 2013 FFO Guidance(10/01/13)
$186.2 MM of Acquisitions in 3Q'13, $368 MM Year-to-Date, Including Remaining 51% Interest in Crossroads Shopping Center
SAN DIEGO, Oct. 1, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today that during the third quarter of 2013, the company committed $186.2 million in shopping center acquisitions. ROIC acquired three grocery-anchored shopping centers, in separate transactions, totaling $153.7 million, and currently has a binding contract to acquire a fourth grocery-anchored shopping center for $32.5 million. Year-to-date, ROIC has committed $368 million in acquiring ten grocery-anchored shopping centers.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "Having secured a record $368 million in shopping center acquisitions, 2013 is proving to be our most active and successful to date. Importantly, we continue to execute our prudent strategy of carefully seeking out attractive, off-market opportunities, through capitalizing on our long-standing relationships, to acquire exceptional shopping centers in our core West Coast markets that will provide the company with a balance of stable cash flow and good growth opportunities for years to come."
SHOPPING CENTER ACQUISITIONS SUMMARY
Crossroads Shopping Center
In September 2013, ROIC acquired the remaining 51% interest in Crossroads Shopping Center for $87.1 million. ROIC had previously acquired a 49% interest in the property in December 2010. The shopping center is approximately 464,000 square feet and is anchored by Kroger (QFC) Supermarket, Sports Authority and Bed, Bath & Beyond. Crossroads is located in Bellevue, Washington, within the Seattle metropolitan area and is currently 99.5% leased. ROIC funded its acquisition of the remaining 51% interest through the assumption of an existing $49.6 million mortgage and the issuance of $37.5 million in ROIC common equity to the prior 51% owner in Crossroads, Ron Sher, in the form of approximately 2.6 million operating partnership units, based on a value of $14.25 per unit.
Mr. Sher commented, "I have known Mr. Tanz for many years and have great respect in Stuart's and his team's ability to add value. I was thrilled in 2010 to become partners with ROIC, and in only three years' time we have made significant enhancements to Crossroads, including increasing occupancy from 86.9% in 2010 to 99% today. Additionally, I am very pleased to now be an investor in ROIC, as a common stakeholder, and have great confidence in the company and its future prospects."
Five Points Plaza
In September 2013, ROIC acquired Five Points Plaza for $52.4 million. The shopping center is approximately 161,000 square feet and is anchored by Trader Joe's and Old Navy. The property is located in Huntington Beach, California, in the heart of Orange County and is currently 99.1% leased. ROIC funded the acquisition with cash, a borrowing under its unsecured credit facility and the issuance of $8.8 million in ROIC common equity in the form of approximately 0.7 million operating partnership units, based on a value of $13.57 per unit.
Peninsula Marketplace
ROIC has a binding contract to acquire Peninsula Marketplace for $32.5 million. The shopping center is approximately 95,000 square feet and is anchored by Kroger (Ralphs) Supermarket and CVS Pharmacy. The property is located in Huntington Beach, California, in the heart of Orange County and is currently 100% leased.
Robinwood Shopping Center
In August 2013, ROIC acquired Robinwood Shopping Center for $14.2 million. The shopping center is approximately 71,000 square feet and is anchored by a new WalMart Neighborhood Market. The property is located in West Linn, Oregon, within the Portland metropolitan area and is currently 95.6% leased.
2013 FFO GUIDANCE
In connection with its recent acquisitions, including the remaining 51% interest in Crossroads Shopping Center, ROIC expects to recognize income from certain one-time items, including a preferred return and a gain on consolidation of the Crossroads' joint venture, off-set by certain transaction and financing expenses. Accordingly, ROIC currently estimates FFO for 2013 will be within the range of $0.99 to $1.04 per diluted share, and net income will be within the range of $0.35 to $0.37 per diluted share. ROIC's management will discuss the company's guidance on its third quarter earnings conference call scheduled for October 31, 2013.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. ROIC's property portfolio currently includes 52 shopping centers encompassing approximately 5.6 million square feet. Additional information is available at: www.roireit.net.
When used herein, the words "believes," "anticipates," "projects," "should," "estimates," "expects," and similar expressions are intended to identify forward-looking statements with the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities and Exchange Act of 1934, as amended. Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of ROIC to differ materially from future results expressed or implied by such forward-looking statements. Information regarding such risks and factors is described in ROIC's filings with the SEC, including its most recent Annual Report on Form 10-K, which is available at: www.roireit.net.
Ashley Bulot, Investor Relations
858-255-4913
https://globenewswire.com/news-release/2013/10/01/577055/10050617/en/Retail-Opportunity-Investments-Corp-Provides-Acquisitions-Update-Increases-2013-FFO-Guidance.html
Enterprising Investor
11 years ago
Retail Opportunity Investments Corp. Amends Unsecured Credit Facility (9/30/13)
Facility Increased to $350MM, Maturity Extended to 2017 & Borrowing Spread Lowered to 110bps
SAN DIEGO, Sept. 30, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today that it has amended its unsecured revolving credit facility, modifying certain key terms, including: (1) increasing the borrowing capacity from $200 million to $350 million; (2) increasing the accordion feature, allowing the company to expand the borrowing capacity of the facility by another $350 million, subject to commitments and other conditions; (3) extending the maturity date to September 2017; and (4) lowering the interest rate spread to 110 basis points over LIBOR. Additionally, ROIC amended its $200 million unsecured term loan, for conforming changes to the unsecured revolving credit facility.
Michael B. Haines, Chief Financial Officer of Retail Opportunity Investments Corp. commented, "Over the past year we have worked diligently at significantly enhancing our strong financial position. We have achieved investment grade ratings from both Moody's and Standard & Poor's. Additionally, with these latest amendments of our unsecured facilities, we have lowered the company's borrowing spread by 29% during the past year, from a spread of 155 basis points a year ago, to 110 basis points today. Furthermore, we have increased the potential capacity under the facilities by 67% from $600 million combined capacity a year ago, to $1 billion today, including the accordion features. We believe these balance sheet initiatives will enhance our ability to continue prudently growing our business and portfolio, while maintaining our strong, flexible and conservative financial position."
KeyBanc Capital Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated are Joint Lead Arrangers and Joint Book Managers, KeyBank National Association is the Administrative Agent, Swing Line Lender and L/C Issuer, Bank of America, N.A. is the Syndication Agent with PNC Bank, National Association and U.S. Bank National Association as the Co-Documentation Agents. Other participants include Bank of Montreal, JPMorgan Chase Bank, N.A, RBS Citizens, N.A, Regions Bank, Royal Bank of Canada and Wells Fargo Bank, National Association.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. The Company specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. At June 30, 2013 ROIC's property portfolio included 50 shopping centers totaling approximately 5.4 million square feet. Additional information is available at www.roireit.net.
When used herein, the words "believes," "anticipates," "projects," "should," "estimates," "expects," and similar expressions are intended to identify forward-looking statements with the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities and Exchange Act of 1934, as amended. Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of ROIC to differ materially from future results expressed or implied by such forward-looking statements. Information regarding such risks and factors is described in ROIC's filings with the SEC, including its most recent Annual Report on Form 10-K, which is available at: www.roireit.net.
Ashley Bulot, Investor Relations
858-255-4913
https://globenewswire.com/news-release/2013/09/30/576672/10050354/en/Retail-Opportunity-Investments-Corp-Amends-Unsecured-Credit-Facility.html
Enterprising Investor
11 years ago
Retail Opportunity Investments Corp. Reports Solid Second Quarter 2013 Results (8/01/13)
.5% Increase in Same-Center Cash Net Operating Income
76.6% of Total Warrants Outstanding Retired To Date
Reaffirms 2013 FFO Guidance
SAN DIEGO, Aug. 1, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today financial and operating results for the three months ended June 30, 2013.
HIGHLIGHTS
•Net income of $2.5 million, or $0.03 per diluted share for 2Q'13
•Funds From Operation (FFO) of $12.7 million, or $0.18 per diluted share(1) for 2Q'13
•$64.9 million received from warrants exercised in 2Q'13 ($220.4 million to date)
•76.6% of the company's total outstanding warrants retired to date
•$142.0 million of shopping center acquisitions completed in 2Q'13 ($181.8 million YTD)
•9.5% increase in same-center cash net operating income (2Q'13 vs. 2Q'12)
•93.5% portfolio occupancy rate at June 30, 2013 (70 bps increase vs. 2Q'12)
•Awarded investment grade ratings from Moody's and Standard & Poor's
•27.4% debt-to-total market capitalization ratio at June 30, 2013
•Quarterly cash dividend of $0.15 per share of common stock declared
(1) A reconciliation of GAAP net income to FFO is provided at the end of this press release.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "The first of half of 2013 has proven to be one of our most active and successful to date. During the first six months, we acquired $181.8 million of grocery-anchored shopping centers, deepening our presence in each of our core West Coast markets. Along with acquisitions, we continue to focus on maximizing property operations. During the second quarter, we increased our overall portfolio occupancy to 93.5% and achieved a 9.5% increase in same-center cash net operating income, representing the fifth consecutive quarter that we have increased occupancy and same-center cash NOI." Mr. Tanz stated further, "In addition to our acquisition and leasing activity, the company was recently awarded investment grade ratings by Moody's and Standard & Poor's. We have also received $220.4 million in equity proceeds thus far in 2013 from warrants that have been exercised. Looking ahead, with our strong financial position, together with our solid market presence on the West coast, which now totals over five million square feet, we continue to be excited about the future prospects of our business."
FINANCIAL SUMMARY
For the three months ended June 30, 2013, net income attributable to common stockholders was $2.5 million, or $0.03 per diluted share. FFO for the second quarter of 2013 was $12.7 million, or $0.18 per diluted share. For the six months ended June 30, 2013, net income was $4.8 million, or $0.07 per diluted share. FFO for the first six months of 2013 was $24.2 million, or $0.36 per diluted share. ROIC reports FFO as a supplemental performance measure. A reconciliation of GAAP net income to FFO is provided at the end of this press release.
At June 30, 2013, ROIC had a total market capitalization of $1.41 billion with $386.3 million of debt outstanding, equating to a 27.4% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $81.1 million of mortgage debt and $305.1 million of unsecured debt, including $105.1 million outstanding on its unsecured credit facility. For the three months ended June 30, 2013, ROIC's interest coverage ratio was 4.5 times. At June 30, 2013, 89.8% of ROIC's portfolio was unencumbered, based on gross leasable area.
INVESTMENT SUMMARY
During the second quarter 2013, ROIC acquired four grocery-anchored shopping centers in separate transactions, totaling $142.0 million. During the first six months of 2013, ROIC acquired six grocery-anchored shopping centers, totaling $181.8 million.
Canyon Crossing
In April 2013, ROIC acquired Canyon Crossing for $35.0 million. The shopping center is approximately 121,000 square feet and is anchored by Safeway Supermarket. The property is located in Puyallup, Washington, within the Seattle metropolitan area and is currently 76.2% leased.
Diamond Hills Plaza
In April 2013, ROIC acquired Diamond Hills Plaza for $48.0 million. The shopping center is approximately 140,000 square feet and is anchored by H Mart Supermarket and Rite Aid Pharmacy. The property is located in Diamond Bar, California, within the Los Angeles metropolitan area and is currently 97.9% leased.
Granada Shopping Center
In June 2013, ROIC acquired Granada Shopping Center for $17.5 million. The shopping center is approximately 69,000 square feet and is anchored by Lucky Supermarket. The property is located in Livermore, California, within the San Francisco metropolitan area and is currently 91.1% leased.
Hawthorne Crossings
In June 2013, ROIC acquired Hawthorne Crossings for $41.5 million. The shopping center is approximately 141,000 square feet and is anchored by Mitsuwa Marketplace (the largest Japanese grocer in the U.S.), Ross Dress For Less and Staples. The property is located in San Diego, California and is currently 95.0% leased.
INVESTMENT GRADE RATINGS
During the second quarter 2013, ROIC was awarded investment grade ratings from Moody's Investors Service and Standard & Poor's Ratings Services. Moody's assigned ROIC a Baa2 rating and Standard & Poor's assigned ROIC a BBB- rating. Both rating agencies assigned a stable outlook and noted that the ratings and outlook reflect ROIC's well-laddered debt maturities, strong credit metrics and largely unencumbered pool, as well as ROIC's commitment to maintaining its moderate leverage and credit profile while pursuing measured growth. More information regarding ROIC's ratings can be found on the rating agencies' web sites.
CASH DIVIDEND
On June 28, 2013, ROIC distributed a $0.15 per share cash dividend. On July 31, 2013, ROIC's board of directors declared a cash dividend on its common stock of $0.15 per share, payable on September 30, 2013 to stockholders of record on September 16, 2013.
WARRANT UPDATE
As of June 30, 2013, 76.6% of the company's total outstanding warrants had been retired, including: 18.4 million warrants exercised (5.4 million exercised during the second quarter 2013), providing ROIC with $220.4 million of proceeds; 11.5 million warrants repurchased by ROIC in privately negotiated transactions for $22.0 million (including 3.7 million warrants repurchased during the second quarter 2013); and all 8.0 million founders' warrants exercised on a cashless basis in February 2013. ROIC currently has 11.6 million warrants outstanding, scheduled to expire in October 2014.
2013 FFO GUIDANCE
Based on ROIC's actual results for the first six months of 2013 and taking into account the warrants retired to date, ROIC maintains its previously stated guidance for the full year 2013 that FFO will be within the range of $0.77 to $0.82 per diluted share and net income will be within the range of $0.14 to $0.16 per diluted share. ROIC's guidance does not incorporate any assumption regarding its remaining outstanding warrants. ROIC's management will discuss the company's guidance on its August 1, 2013 conference call.
CONFERENCE CALL
ROIC will conduct a conference call and audio webcast to discuss its quarterly results on August 1, 2013 at 1:00 p.m. Eastern Time. Those interested in participating in the conference call should dial (877) 312-8783 (domestic), or (408) 940-3874 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the Conference ID: 96920247. A live webcast will also be available in listen-only mode at: www.roireit.net. The conference call will be recorded and available for replay beginning at 4:00 p.m. Eastern Time on August 1, 2013 and will be available until 11:59 p.m. Eastern Time on August 8, 2013. To access the conference call recording, dial (855) 859-2056 (domestic), (404) 537-3406 (international), or (800) 585-8367 and use the Conference ID: 96920247. The conference call will also be archived at: www.roireit.net for approximately 90 days.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corporation (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. As of June 30, 2013, ROIC's property portfolio included 50 shopping centers encompassing approximately 5.4 million square feet. Additional information is available at: www.roireit.net.
http://globenewswire.com/news-release/2013/08/01/563828/10042838/en/Retail-Opportunity-Investments-Corp-Reports-Solid-Second-Quarter-2013-Results.html
Enterprising Investor
11 years ago
Retail Opportunity Investments Corp. Awarded Investment Grade Rating From Moody's Investors Service (6/03/13)
SAN DIEGO, June 3, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today that Moody's Investors Service has assigned a Baa2 issuer rating to ROIC with a stable outlook.
According to Moody's press release, the Baa2 issuer rating reflects ROIC's conservative capital structure and strong credit metrics including its high fixed charge coverage, low level of secured debt and large unencumbered asset base. Additionally, Moody's stated that ROIC's debt maturity schedule is well-laddered and its bank line availability and cash on hand covers the company's debt maturities through 2016. Moody's also noted that ROIC has stable cash flows driven by its core western markets and consistent occupancy rates.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "Achieving an investment grade rating has been one of our core objectives since commencing operations as a shopping center REIT in 2009. We are very pleased that our long-standing, prudent investment, property management and financing disciplines have earned us this important distinction." Tanz stated further, "Looking ahead, accessing the investment grade unsecured debt market will be a critical component of our long-term financing strategy that we believe will enhance our ability to continue consistently growing our portfolio and business."
More information regarding ROIC's rating assignment can be found on Moody's website at www.moodys.com.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corporation (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. At March 31, 2013, ROIC's property portfolio included 47 shopping centers encompassing approximately 5.0 million square feet. Additional information is available at: www.roireit.net.
When used herein, the words "believes," "anticipates," "projects," "should," "estimates," "expects," and similar expressions are intended to identify forward-looking statements with the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities and Exchange Act of 1934, as amended. Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ROIC to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. Additional information regarding these and other factors is described in ROIC's filings with the SEC, including its most recent Annual Report on Form 10-K.
Ashley Bulot, Investor Relations
858-255-4913
http://www.globenewswire.com/news-release/2013/06/03/551420/10034832/en/Retail-Opportunity-Investments-Corp-Awarded-Investment-Grade-Rating-From-Moody-s-Investors-Service.html
Enterprising Investor
11 years ago
Retail Opportunity Investments Corp. Reports Solid First Quarter 2013 Results (5/02/13)
SAN DIEGO, May 2, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today financial and operating results for the three months ended March 31, 2013.
HIGHLIGHTS
•Net income of $2.3 million, or $0.04 per diluted share for 1Q'13
•Funds From Operation (FFO) of $11.5 million, or $0.19 per diluted share(1) for 1Q'13
•$122.8 million of grocery-anchored shopping center acquisitions completed year-to-date
•7.9% increase in same-center cash net operating income (1Q'13 vs. 1Q'12)
•171,200 square feet of leases executed in 1Q'13 (new and renewed)
•93.4% portfolio occupancy rate at March 31, 2013 (110 bps increase vs. 1Q'12)
•58.3% of the company's warrants retired, $156.8 million proceeds received to date
•23.5% debt-to-total market capitalization ratio at March 31, 2013
•Quarterly cash dividend of $0.15 per share of common stock declared
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "We are fully on track with achieving our targeted acquisition, management and leasing goals for the year. Thus far, we have acquired $122.8 million of grocery-anchored shopping centers year-to-date and our pipeline of acquisition opportunities continues to be active. In terms of property operations, we again posted strong results during the first quarter. We leased 171,200 square feet, increased occupancy by 110 basis points, from a year ago, to 93.4%, and achieved a 7.9% increase in same-center cash net operating income." Tanz stated further, "Looking ahead, with the $155.7 million of equity capital received through the warrants that have been exercised to date, our financial position continues to be strong. Accordingly, we are well-positioned to continue growing our portfolio and business."
FINANCIAL SUMMARY
For the three months ended March 31, 2013, net income attributable to common stockholders was $2.3 million, or $0.04 per diluted share, as compared to net income of $1.1 million, or $0.02 per diluted share for the three months ended March 31, 2012. FFO for the first quarter of 2013 was $11.5 million, or $0.19 per diluted share, as compared to FFO of $8.4 million, or $0.17 per diluted share for the first quarter of 2012. ROIC reports FFO as a supplemental performance measure. A reconciliation of GAAP net income to FFO is provided at the end of this press release.
At March 31, 2013, ROIC had a total market capitalization of $1.275 billion with $299.8 million of debt outstanding, equating to a 23.5% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $81.8 million of mortgage debt and $218.0 million of unsecured debt, including $18.0 million outstanding on its unsecured credit facility. At March 31, 2013, 88.9% of ROIC's portfolio was unencumbered, based on gross leasable area.
INVESTMENT SUMMARY
During the first quarter 2013, ROIC acquired two grocery-anchored shopping centers, in separate transactions, totaling $39.8 million. Subsequent to the end of the first quarter, ROIC acquired two additional grocery-anchored shopping centers, in separate transactions, totaling $83.0 million.
Diamond Bar Town Center
In February 2013, ROIC acquired Diamond Bar Town Center for $27.4 million. The shopping center is approximately 100,000 square feet and is anchored by a national grocer. The property is located in Diamond Bar, California, within the Los Angeles metropolitan area and is currently 89.3% leased.
Bernardo Heights Plaza
In February 2013, ROIC acquired Bernardo Heights Plaza for $12.4 million. The shopping center is approximately 38,000 square feet and is anchored by Sprouts Farmers Market. The property is located in Rancho Bernardo, California, within the San Diego metropolitan area and is currently 100% leased.
Canyon Crossing
In April 2013, ROIC acquired Canyon Crossing for $35.0 million. The shopping center is approximately 121,000 square feet and is anchored by Safeway Supermarket. The property is located in Puyallup, Washington, within the Seattle metropolitan area and is currently 73.3% leased.
Diamond Hills Plaza
In April 2013, ROIC acquired Diamond Hills Plaza for $48.0 million. The shopping center is approximately 140,000 square feet and is anchored by H Mart Supermarket and Rite Aid Pharmacy. The property is located in Diamond Bar, California, within the Los Angeles metropolitan area and is currently 97.9% leased.
CASH DIVIDEND
On March 29, 2013, ROIC distributed a $0.15 per share cash dividend. On May 1, 2013, ROIC's board of directors declared a cash dividend on its common stock of $0.15 per share, payable on June 28, 2013 to shareholders of record on June 14, 2013.
WARRANT UPDATE
As of May 1, 2013, 58.3% of the company's total outstanding warrants have been retired, including: 13,066,685 warrants exercised, providing ROIC with approximately $156.8 million of proceeds; 7,750,000 warrants repurchased by ROIC in privately negotiated transactions for approximately $10.7 million; and 8,000,000 founders' warrants exercised on a cashless basis. ROIC utilized the $156.8 million of proceeds primarily to pay down borrowings on its unsecured credit facility. ROIC currently has 20.6 million warrants outstanding, scheduled to expire in October 2014.
http://globenewswire.com/news-release/2013/05/02/543607/10031046/en/Retail-Opportunity-Investments-Corp-Reports-Solid-First-Quarter-2013-Results.html
(1) A reconciliation of GAAP net income to FFO is provided at the end of this press release.
vpagano
11 years ago
For what it's worth, here's a write-up I found from Friday. I'm on about a double on the warrants but haven't sold any yet.
http://www.dailyfinance.com/2013/03/15/roic-reduces-warrant-overhang-boosts-huge-potentia/?source=esadlfhlnal0001&lidx=0
ROIC Reduces Warrant Overhang, Boosts Huge Potential Stock Gains
This morning, little-known West Coast shopping center REIT Retail Opportunity Investments ("ROIC") announced what investors have been waiting for: substantial action on the outstanding warrants to buy shares of stock at $12.
When ROIC formed as a special purpose acquisition corporation (SPAC) with an IPO 2007, the SPAC practice was to issue stock, warrants, and units -- a combination of stock and warrants. At the IPO and later when ROIC announced its move to a REIT model in late 2009, it had issued 49.4 million warrants, including8 million to the SPAC founders. At the end of 2012, only 1,000 warrants had been exercised for cash.
Today, the company announced that 57.3% of the warrants have been exercised for cash by investors for $12 a share or $162 million and on a cashless basis by the SPAC founders. From 1,000 to this is, ahem, news. Exercise of the remaining would bring in about $253 million. However, the company purchased 7.8 of the warrants themselves at $1.38, an 18% premium to yesterday's $1.17 close and implying a $13.38 stock price.
Expiring 18 months away on Oct. 23, 2014, the warrants offer both potential shareholder dilution -- included in diluted EPS calculations already -- and cash for investment. However, if management invests the cash for higher returns, the dilution could be a wash -- what every executive in similar situations promises will be "accretive" but rarely is. Meanwhile, despite a steady stock rise, uncertainty over the warrant status has most likely -- and management agrees -- prevented even more gains from yesterday's $13.18 a share close.
Potential near-term gains
A possible $18 and up could well come with the warrant overhang removed based on comparables. While there are roughly 25 REITs loosely in the strip mall, shopping center and mall spaces, Regency Centers , Acadia Realty Trust , Kimco Properties , and ROIC are most similar because they specialize in grocery-anchored centers.
Company ($ millions)
LTM AFFO*
Market Cap
Market Cap / LTM AFFO
Dividend Yield
Total Debt to Total
Assets
Tangible Book Value % of Price
ROIC
$39
$764
19.6
4.6%
43%
85%
Kimco Properties
$514
$9,000
17.5
3.8%
43%
51%
Regency Centers
$221
$4,786
21.7
3.1%
50%
29%
Acadia Realty Trust
$49
$1,486
30.5
3%
38%
41%
Sources: S&P Capital IQ and my calculations. *AFFO is adjusted funds from operations, which is the equivalent of operating cash flow minus maintenance capital expenditures, and is considered the amount available for the REIT to payout.
The case for an increased ROIC valuation has three parts. First, though its market cap-to-LTM AFFO multiple is less than all but one, and seems not exactly low, ROIC offers the highest yield by far, and all else equal should sell for more. This supports the case that "something is holding it back," in which the "something" is likely the warrant overhang.
While the debt to asset percentages are at or near the 50% we'd like ROIC not to top, and Acadia has room to grow, the clear winner for margin of safety is ROIC, selling at a whopping 85% tangible book at a percentage of share price. This indicates far higher asset protection than any of the others.
ROIC is what you buy if you want hard asset based downside protection so paying peanuts for the upside. Who doesn't? These are very good reward-to-risk odds.
Caution warranted
There are also three uncertainties regarding the warrants. So long as the stock remains above the $12 strike price, investors are more likely to exercise them, the company receive money, and shareholder count increase. But if the stock were to decline below $12 and remain there at expiration, outstanding warrants would expire worthless and without exercise -- no dilution, but also no cash from exercise. And for all sorts of reasons beyond my pay grade, the company is able to and could change the warrant strike. For all these reasons, reducing uncertainty over the warrants is good for the stock and for shareholders.
Potential multi-bagger
Whatever the outcome, investors must be patient for any stock rise after the warrant uncertainty is removed and assuming continued positive fundamentals. In the short term, we must ignore at last one expected bump in the road. The company expects to announce in its May 2 first-quarter report a guidance revision downward because of the timing of receiving the capital and investing it.
ROIC's quarterly dividend has risen steadily from $0.06 a share at inception to the most recent quarter's $0.15. The latter is a run-rate $0.60 annually and 4.6% yield on yesterday's $13.18 close. With the company's investments, low leverage, and a disciplined CEO intent on paying value prices for strong unique assets on the West Coast, now is a great time to invest with patience. First, patience for now to warrant expiration, and then a potential long-term catalyst, where multi-year patience could yield multi-bagger gains. CEO Tanz created in 1997 a similar REIT, Pan Pacific Properties, selling in a hot real estate market to Kimco in 2006 for 9 times its original value.
Meanwhile, CEO Tanz's history of purchasing shopping centers in strategic locations at discounts from distressed buyers provides a margin of safety. And at today's valuation, investors take little risk for multiple future opportunities for gains. Value investors are licking their lips.
Enterprising Investor
11 years ago
ROIC Provides Warrant Update (3/15/13)
SAN DIEGO, March 15, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today that 57.3% of the company's total outstanding warrants have been retired to date, including: 12,570,226 warrants exercised, providing ROIC with approximately $150.8 million of proceeds; 7,750,000 warrants repurchased by ROIC in privately negotiated transactions for approximately $10.7 million; and, as previously announced, 8,000,000 founders' warrants exercised on a cashless basis. The expiration date of the remaining outstanding warrants is October 23, 2014. ROIC intends to utilize the proceeds to pay down borrowings on its unsecured credit facility, fund future shopping center acquisitions and for general corporate purposes. At March 15, 2013, ROIC had approximately $12.0 million outstanding on its unsecured credit facility and a total debt to market capitalization ratio of approximately 25%, based on total debt outstanding of approximately $293.6 million and 66.3 million shares of common stock outstanding.
Stuart A. Tanz, President and Chief Executive Officer of ROIC stated, "We are pleased that the majority of the company's outstanding warrants have been retired and look forward to investing the equity capital received through the warrants that were exercised. To date in 2013, we have secured a total of $87.8 million of grocery-anchored shopping center acquisitions and our pipeline continues to be active. That said, we remain steadfast in our long-standing, prudent strategy of being patient and careful in seeking out only the most attractive opportunities to acquire irreplaceable shopping centers that will provide the company with a balance of long-term stable cash flow and good growth opportunities for years to come." Tanz further commented, "Notwithstanding being fully on track with executing our 2013 business plan, and excited to have the additional equity capital to invest, the timing of receiving the capital will undoubtedly impact our near-term earnings and FFO per share results. Accordingly, we expect to adjust our 2013 earnings and FFO per share guidance when we announce our first quarter results, currently scheduled for May 2, 2013."
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corporation (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. At December 31, 2012, ROIC's property portfolio included 45 shopping centers encompassing approximately 4.8 million square feet. Additional information is available at www.roireit.net.
The Retail Opportunity Investments Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6855
When used herein, the words "believes," "anticipates," "projects," "should," "estimates," "expects," and similar expressions are intended to identify forward-looking statements with the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities and Exchange Act of 1934, as amended. Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ROIC to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. Additional information regarding these and other factors is described in ROIC's filings with the SEC, including its most recent Annual Report on Form 10-K.
Ashley Bulot, Investor Relations
858-255-4913
http://www.globenewswire.com/news-release/2013/03/15/530940/10025289/en/Retail-Opportunity-Investments-Corp-Provides-Warrant-Update.html
Enterprising Investor
11 years ago
ROIC Reports Solid 2012 Results (2/21/13)
Company Increases Dividend 7.1% & Establishes 2013 FFO Guidance
SAN DIEGO, Feb. 21, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today financial and operating results for the year and fourth quarter ended December 31, 2012.
YEAR 2012 HIGHLIGHTS
•Net income of $7.9 million, or $0.15 per diluted share
•Funds From Operation (FFO) of $39.1 million, or $0.75 per diluted share(1)
•$276.1 million in shopping center acquisitions completed
•7.4% increase in same-center cash net operating income (2012 vs. 2011)
•93.5% portfolio occupancy rate at December 31, 2012 (230 bps increase vs. 2011)
•35.1% debt-to-total market capitalization ratio at December 31, 2012
•Corporate headquarters relocated from White Plains, NY to San Diego, CA
•35.9% increase in cash dividends per share paid (2012 vs. 2011)
4TH QUARTER 2012 HIGHLIGHTS
•Net loss of $278,000, or $0.01 per diluted share
•FFO of $8.5 million, or $0.15 per diluted share(1)
•$141.4 million in shopping center acquisitions completed
•6.4% increase in same-center cash net operating income (4Q12 vs. 4Q11)
•Quarterly cash dividend of $0.15 per share declared (7.1% increase)
(1) A reconciliation of GAAP net income to FFO is provided at the end of this press release.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "2012 proved to be another strong and productive year for the company whereby we successfully advanced our business on a number of important fronts. We continued to execute our highly-disciplined investment strategy, acquiring $276.1 million of shopping centers during the year, growing our portfolio by 30.0%, in terms of gross leasable area, and enhancing our presence in each of our core markets in the western region of the United States. We continued to capitalize on the strong demand for space across our portfolio, leasing approximately 728,000 square feet of space, increasing year-end occupancy to a new, two-year high of 93.5%, and achieving a strong, 7.4% increase in same-center cash net operating income for the year. We also continued to enhance our financial position during 2012, significantly lowering our borrowing costs, expanding our debt capital availability and raising equity capital efficiently through our ATM program. Additionally, along with growing our portfolio and business, we increased cash dividends to stockholders by 35.9% in 2012." Tanz stated further, "Looking ahead, with our solid shopping center portfolio and operating platform, together with our strong financial position, we are well positioned to continue growing our business in 2013".
FINANCIAL SUMMARY
For the twelve months ended December 31, 2012, net income was $7.9 million, or $0.15 per diluted share. FFO for the year 2012 was $39.1 million, or $0.75 per diluted share. For the three months ended December 31, 2012, ROIC incurred $1.8 million in costs associated with relocating its corporate headquarters from New York to California, resulting in a net loss of $278,000 or $0.01 per diluted share. FFO for the fourth quarter 2012 was $8.5 million, or $0.15 per diluted share. ROIC reports FFO as a supplemental performance measure. A reconciliation of GAAP net income to FFO is provided at the end of this press release.
At December 31, 2012, ROIC had total market capitalization of approximately $1.1 billion with $391.7 million of debt outstanding, equating to a 35.1% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $72.7 million of mortgage debt and $319.0 million of unsecured debt, including $119.0 million outstanding on its unsecured credit facility. At December 31, 2012, 89.4% of ROIC's portfolio was unencumbered, based on gross leasable area.
INVESTMENT SUMMARY
During 2012, ROIC acquired fourteen shopping centers for a total of $276.1 million, including the following five shopping centers acquired during the fourth quarter for a total of $139.3 million. Additionally, during the fourth quarter, ROIC acquired a newly developed pad building at one of its existing shopping centers for $2.1 million.
Bay Plaza Shopping Center
In October 2012, ROIC acquired Bay Plaza Shopping Center for $21.6 million. The shopping center is approximately 73,000 square feet and is anchored by Seafood City Supermarket, a regional grocery store. The property is located in San Diego, California and is currently 86.9% leased.
Santa Teresa Village Shopping Center
In November, 2012, ROIC acquired Santa Teresa Village Shopping Center for $31.6 million. The shopping center is approximately 125,000 square feet and is anchored by Raley's (Nob Hill) Supermarket, a regional grocery store. The property is located in San Jose, California and is currently 94.0% leased.
Cypress West
In December 2012, ROIC acquired Cypress West for $27.6 million. The shopping center is approximately 106,000 square feet and is anchored by Kroger (Ralph's) Supermarket and Rite Aid. The property is located in Cypress, California, in the heart of Orange County and is currently 92.0% leased.
Redondo Beach Plaza
In December 2012, ROIC acquired Redondo Beach Plaza for $30.8 million. The shopping center is approximately 111,000 square feet and is anchored by Safeway (Vons) Supermarket. The property is located in Redondo Beach, California, within the Los Angeles metropolitan area and is currently 98.8% leased.
Harbor Place Center
In December 2012, ROIC acquired Harbor Place Center for $27.7 million. The shopping center is approximately 120,000 square feet and is anchored by Albertson's Supermarket and Ross Dress for Less. The property is located in Garden Grove, California, in the heart of Orange County and is currently 100% leased. Albertson's is no longer operating at the shopping center. ROIC is currently in advanced discussions with several national retailers regarding the Albertson's space.
In 2013, year-to-date ROIC has acquired the following two shopping centers for a total of $39.8 million.
Diamond Bar Town Center
In February 2013, ROIC acquired Diamond Bar Town Center for $27.4 million. The shopping center is approximately 107,000 square feet and is anchored by a national grocer. The property is located in Diamond Bar, California, within the Los Angeles metropolitan area and is currently 91.2% leased.
Bernardo Heights Plaza
In February 2013, ROIC acquired Bernardo Heights Plaza for $12.4 million. The shopping center is approximately 38,000 square feet and is anchored by Sprouts Farmers Market, a regional grocery store. The property is located in Rancho Bernardo, California, within the San Diego metropolitan area and is currently 100% leased.
CASH DIVIDEND
On November 30, 2012, ROIC distributed a $0.14 per share cash dividend. On February 19, 2013, ROIC's board of directors declared a cash dividend of $0.15 per share, payable on March 29, 2013 to shareholders of record on March 15, 2013. The $0.15 per share dividend represents a 7.1% increase over ROIC's previous dividend.
2013 FFO & DIVIDEND GUIDANCE
ROIC currently estimates FFO for 2013 will be within the range of $0.80 to $0.85 per diluted share, and net income will be within the range of $0.12 to $0.14 per diluted share. The following table provides a reconciliation of GAAP net income to FFO. (In thousands, except per share amounts)
http://www.globenewswire.com/news-release/2013/02/21/525190/10022532/en/Retail-Opportunity-Investments-Corp-Reports-Solid-2012-Results.html
Enterprising Investor
11 years ago
ROIC Announces NRDC Capital Management Exercises All of Its 8.0 Million Warrants (2/05/13)
SAN DIEGO, Feb. 5, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today that NRDC Capital Management, LLC has exercised all of their 8.0 million warrants. NRDCs warrants were exercisable for ROIC's common stock at a price of $12.00 per share. NRDC exercised all of their warrants on a cashless basis. Based on common share price of $13.13 per share, ROIC issued 688,500 shares of common stock in a private placement to NRDC.
Richard A. Baker, Chairman of the Board of Retail Opportunity Investments Corp. stated, "The managers of NRDC Capital Management, William L. Mack, Robert C. Baker, Lee S. Neibart, one of ROIC's directors, and myself, are pleased to have converted all of our warrants into shares of ROIC's common stock. We continue to be impressed with ROIC's management team and their implementation of the company's business plan in creating one of the premier shopping center REITs on the West Coast."
In addition to the exercise of the warrants by NRDC, to date other warrant holders have exercised 497,637 warrants, providing ROIC with approximately $6.0 million of proceeds. ROIC intends to provide information regarding future exercises of warrants on a quarterly basis.
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corp. (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. The Company specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. At September 30, 2012, ROIC's property portfolio included 40 shopping centers totaling approximately 4.3 million square feet. Additional information is available at www.roicreit.net.
http://globenewswire.com/news-release/2013/02/05/520822/10020566/en/Retail-Opportunity-Investments-Corp-Announces-NRDC-Capital-Management-Exercises-All-of-Its-8-0-Million-Warrants.html
Enterprising Investor
11 years ago
ROIC Acquiring $114 Million Grocery Anchored Portfolio (12/28/12)
SAN DIEGO, Dec. 28, 2012 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today, in an off-market transaction, it has closed on three shopping centers and has a binding contract to acquire a fourth shopping center. The four properties together comprise a portfolio transaction totaling $114 million, encompassing approximately 444,000 square feet of gross leaseable area. The portfolio was previously owned and operated by a Southern California family. The acquisitions are being funded with borrowings under ROIC's unsecured credit facility.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "We are excited to be acquiring this exceptional portfolio of Southern California shopping centers. The properties were not marketed. We accessed the transaction through a long-standing relationship. The shopping centers are well-located at major intersections within densely populated communities, which we know extremely well, and are an excellent strategic fit with our current Southern California portfolio. The four shopping centers represent a balance of stable cash flow, derived from well-established anchor retailers, and numerous value-added growth opportunities." Mr. Tanz added, "With three of the four properties closed, we have completed a total of $278.0 million of shopping center investments in 2012, surpassing our target for the year. Looking ahead, we expect to close the fourth property in the first quarter of 2013. Additionally, as part of the portfolio transaction, we have rights of first refusal to acquire the seller's remaining properties in Southern California, which include three additional grocery-anchored shopping centers."
Cypress West
In December 2012, ROIC acquired Cypress West for $27.6 million. The shopping center is approximately 106,000 square feet and is anchored by Ralph's Supermarket (Kroger) and Rite Aid. The property is located in Cypress, California, in the heart of Orange County and is currently 94.1% leased.
Redondo Beach Plaza
In December 2012, ROIC acquired Redondo Beach Plaza for $30.8 million. The shopping center is approximately 111,000 square feet and is anchored by Von's Supermarket (Safeway). The property is located in Redondo Beach, California, within the Los Angeles metropolitan area and is currently 98.8% leased.
Harbor Place Center
In December 2012, ROIC acquired Harbor Place Center for $27.7 million. The shopping center is approximately 120,000 square feet and is anchored by Albertson's Supermarket and Ross Dress for Less. The property is located in Garden Grove, California, in the heart of Orange County and is currently 100% leased. Albertson's is no longer operating at the shopping center. ROIC is currently in advanced discussions with several national retailers regarding the Albertson's space.
Diamond Bar Town Center
ROIC has a binding contract to acquire Diamond Bar Town Center for $27.8 million. The shopping center is approximately 107,000 square feet and is anchored by Wal-Mart, featuring Wal-Mart's new grocery-store format. The property is located in Diamond Bar, California, within the Los Angeles metropolitan area and is currently 91.2% leased.
Rights of First Refusal
As part of the portfolio transaction, ROIC also has contractual rights of first refusal to acquire three additional grocery-anchored shopping centers located in the Los Angeles and Orange County metropolitan areas, including: Hawthorne Plaza, a 97,000 square foot shopping center located in Hawthorne, California, anchored by Albertson's Supermarket; Plaza Del Sol, a 165,000 square foot shopping center located, Burbank, California, anchored by Vallarta Supermarket; and Peninsula Marketplace, a 95,000 square foot shopping center located in Huntington Beach, California, anchored by Ralph's Supermarket (Kroger).
ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.
Retail Opportunity Investments Corporation (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust. The Company specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores. At September 30, 2012, ROIC's property portfolio included 40 shopping centers totaling approximately 4.3 million square feet. Additional information is available at www.roicreit.net.
The Retail Opportunity Investments Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6855
When used herein, the words "believes," "anticipates," "projects," "should," "estimates," "expects," and similar expressions are intended to identify forward-looking statements with the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities and Exchange Act of 1934, as amended. Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ROIC to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. Additional information regarding these and other factors is described in ROIC's filings with the SEC, including its most recent Annual Report on Form 10-K.
Ashley Bulot, Investor Relations
858-255-4913
http://globenewswire.com/news-release/2012/12/28/513848/10016677/en/Retail-Opportunity-Investments-Corp-Acquiring-114-Million-Grocery-Anchored-Portfolio.html
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