UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 23, 2021
(Exact Name of Registrant as Specified in Its Charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Exact Name of Registrant as Specified in Its Charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
(858 ) 677-0900
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
_________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter)
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Name of Registrant | Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||
| Retail Opportunity Investments Corp. | |||||||||||
| Retail Opportunity Investments Partnership, LP | None | None | None | ||||||||
Item 2.02. Results of Operations and Financial Condition.
On February 23, 2021, Retail Opportunity Investments Corp. (the "Company") issued an earnings release announcing its financial results for the quarter ended December 31, 2020. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference. On February 23, 2021, in connection with this earnings release, the Company posted certain supplemental information regarding the Company's operations for the quarter ended and year December 31, 2020 on its website, www.roireit.net. A copy of the supplemental information is attached as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this Current Report, including the exhibits hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | ||||
| 99.1 | |||||
| 99.2 | |||||
| 101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | ||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (and contained in Exhibit 101) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 23, 2021 | RETAIL OPPORTUNITY INVESTMENTS CORP. | ||||||||||
| By: | /s/ Michael B. Haines | ||||||||||
| Name: Michael B. Haines | |||||||||||
| Title: Chief Financial Officer | |||||||||||
| RETAIL OPPORTUNITY INVESTMENTS PARTNERSHIP, LP | |||||||||||
| By: | RETAIL OPPORTUNITY INVESTMENTS GP, LLC, its general partner | ||||||||||
| By: | /s/ Michael B. Haines | ||||||||||
| Name: Michael B. Haines | |||||||||||
| Title: Chief Financial Officer | |||||||||||
Retail Opportunity Investments Corp. TRADED: NASDAQ: ROIC
11250 El Camino Real, Suite 200
San Diego, CA 92130
FOR IMMEDIATE RELEASE
Tuesday, February 23, 2021
Retail Opportunity Investments Corp. Reports 2020 Results
San Diego, CA, February 23, 2021 – Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the year and three months ended December 31, 2020.
YEAR 2020 HIGHLIGHTS
▪$32.0mm of net income attributable to common stockholders ($0.27 per diluted share)
▪$132.5 million in Funds From Operations (FFO)(1) ($1.05 per diluted share)
▪90.6% of total billed base rent during pandemic has been paid to date (2Q‘20 - 4Q‘20)
▪96.8% portfolio lease rate at year-end (8th consecutive year above 96%)
▪1.2mm sq. ft. of leases executed (10th consecutive year of leasing ~ 2x original expirations)
▪12.5% increase in same-space cash rents on new leases (7.9% increase on renewals)
▪4.6% decrease in same-center cash net operating income (2020 vs. 2019)
▪96.5% of total debt effectively fixed-rate at year-end (no debt maturing in 2021)
▪Awarded investment grade rating and stable outlook from Fitch Ratings, Inc.
4TH QUARTER 2020 HIGHLIGHTS
▪$8.9mm of net income attributable to common stockholders ($0.08 per diluted share)
▪$34.3 million in FFO(1) ($0.27 per diluted share)
▪91.8% of total 4Q‘20 billed base rent has been paid to date
▪9.1% increase in same-space cash rents on new leases (3.3% increase on renewals)
▪8.8% decrease in same-center cash net operating income (4Q‘20 vs. 4Q‘19)
▪$55.5 million reduction in credit line balance (4Q‘20 vs. 3Q‘20)
▪3.4 times interest coverage (equal to 4Q‘19)
2021 YEAR-TO-DATE HIGHLIGHTS
▪95.4% of total tenants are currently open, based on annualized base rent
▪87.8% of January billed base rent has been paid to date
▪$25.8 million property disposition currently under contract
▪$0.11 per share cash dividend 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, “During 2020, in the face of extraordinary circumstances, our portfolio of grocery-anchored shopping centers proved to be resilient and we continued to post solid operating results. For the eighth consecutive year we maintained a year-end portfolio lease rate
above 96%. Additionally, notwithstanding repeated government mandated shutdowns, demand for space across our portfolio remained remarkably strong and we continued to capitalize on it, leasing over 1.2 million square feet of space during 2020, which was the 10th consecutive year that we leased approximately double the amount of space originally scheduled to expire. We also achieved a 12.5% increase in same-space releasing spreads on new leases executed during 2020, representing the 8th consecutive year of achieving double-digit rent growth.” Tanz added, “As 2021 gets underway, and as mandated shutdowns on the West Coast are now being eased, we currently expect that our portfolio and tenant base will steadily move toward returning to full operations as the year progresses. Additionally, we intend to continue advancing our densification initiatives and, market conditions permitting, resume our capital recycling program.”
FINANCIAL RESULTS SUMMARY
For the year ended December 31, 2020, GAAP net income attributable to common stockholders was $32.0 million, or $0.27 per diluted share, as compared to GAAP net income attributable to common stockholders of $48.8 million, or $0.42 per diluted share, for the year ended December 31, 2019. For the three months ended December 31, 2020, GAAP net income attributable to common stockholders was $8.9 million, or $0.08 per diluted share, as compared to GAAP net income attributable to common stockholders of $10.2 million, or $0.09 per diluted share, for the three months ended December 31, 2019.
FFO for the full year 2020 was $132.5 million, or $1.05 per diluted share, as compared to $138.1 million in FFO, or $1.10 per diluted share for the year 2019. FFO for the fourth quarter of 2020 was $34.3 million, or $0.27 per diluted share, as compared to $35.3 million in FFO, or $0.28 per diluted share for the fourth quarter of 2019. 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.
For the full year 2020, same-center net operating income (NOI) was $187.4 million, as compared to $196.6 million in same-center NOI for the full year 2019, representing a 4.6% decrease. For the fourth quarter of 2020, same-center NOI decreased 8.8% as compared to same-center NOI for the fourth quarter of 2019. ROIC reports same-center comparative NOI on a cash basis. A reconciliation of GAAP operating income to same-center comparative NOI is provided at the end of this press release.
2020 financial results for the year and three months ended December 31, 2020 reflect: i) $62.6 million in net property dispositions completed during 2019; ii) $4.7 million non-cash, below market rental revenue recognized in the fourth quarter of 2020 in connection with recapturing/releasing activity; and iii) the impact in 2020 from the ongoing pandemic, including $11.0 million of bad debt in 2020.
BALANCE SHEET SUMMARY
During the fourth quarter, ROIC utilized $55.5 million of cash on its balance sheet to reduce borrowings outstanding on its unsecured credit facility. At December 31, 2020, ROIC had total real estate assets (before accumulated depreciation) of approximately $3.2 billion and approximately $1.4 billion of principal debt outstanding, including $48.0 million outstanding on its $600.0 million unsecured credit facility. At year-end 2020, 93.8% of ROIC’s principal debt outstanding was unsecured, and 96.5% was effectively fixed-rate.
In terms of future debt maturities, ROIC currently has no unsecured debt maturing for approximately the next three years, through late 2023. Additionally, ROIC currently has no secured debt maturing in 2021, $23.1 million maturing in mid-2022, and no secured debt maturing in 2023.
During the fourth quarter, Fitch Ratings, Inc. (Fitch) assigned a BBB- long-term issuer default rating to ROIC with a stable outlook. According to Fitch, the rating and outlook reflect ROIC’s high-quality, grocery-anchored shopping center portfolio located in densely populated, high barrier-to-entry west coast U.S. markets. Additionally, Fitch stated that ROIC’s best-in-class historical occupancy levels and investment-grade credit metrics are key factors supporting the rating.
PROPERTY OPERATIONS SUMMARY
At December 31, 2020, ROIC’s portfolio was 96.8% leased. For the full year 2020, ROIC executed 275 leases, totaling approximately 1.2 million square feet, including 109 new leases, totaling 377,906 square feet, achieving a 12.5% increase in same-space comparative base rent, and 166 renewed leases, totaling 831,225 square feet, achieving a 7.9% increase in base rent. During the fourth quarter of 2020, ROIC executed 74 leases, totaling 294,590 square feet, including 36 new leases, totaling 110,268 square feet, achieving a 9.1% increase in same-space comparative base rent, and 38 renewed leases, totaling 184,322 square feet, achieving a 3.3% increase in base rent. ROIC reports same-space comparative base rent on a cash basis.
CASH DIVIDEND
During the first quarter of 2020, ROIC distributed a cash dividend of $0.20 per share. Given the uncertainty of the pandemic’s near and potential long term impact on ROIC’s business, and in order to preserve its liquidity position, ROIC’s board of directors temporarily suspended quarterly dividend distributions for the remainder of 2020.
On February 23, 2021, ROIC’s board of directors declared a cash dividend of $0.11 per share, payable on April 9, 2021 to stockholders of record on March 26, 2021.
2021 GUIDANCE
ROIC currently estimates that FFO for the full year 2021 will be within the range of $0.95 to $1.02 per diluted share, and net income to be within the range of $0.18 to $0.25 per diluted share. The following table provides a reconciliation of GAAP net income to FFO.
| 2020 Actual | Year Ended December 31, 2021 | ||||||||||||||||
| Low End | High End | ||||||||||||||||
| (unaudited, amounts in thousands except per share and percentage data) | |||||||||||||||||
| GAAP net income applicable to stockholders | $ | 32,014 | $ | 21,034 | $ | 29,805 | |||||||||||
| Funds from operations (FFO) – diluted | $ | 132,452 | $ | 120,555 | $ | 129,438 | |||||||||||
| GAAP net income per diluted share | $ | 0.27 | $ | 0.18 | $ | 0.25 | |||||||||||
| FFO per diluted share | $ | 1.05 | $ | 0.95 | $ | 1.02 | |||||||||||
| Key Drivers | |||||||||||||||||
| General and administrative expenses | $ | 16,755 | $ | 20,000 | $ | 19,000 | |||||||||||
| Straight-line rent | $ | 1,079 | $ | (500) | $ | (500) | |||||||||||
| Amortization of above- and below-market rent | $ | 17,654 | $ | 8,700 | $ | 8,700 | |||||||||||
| Bad debt | $ | 11,035 | $ | 7,000 | $ | 3,000 | |||||||||||
| Acquisitions | $ | — | $ | — | $ | 40,000 | |||||||||||
| Dispositions | $ | — | $ | 25,800 | $ | 25,800 | |||||||||||
| Debt retired | $ | 36,000 | $ | 40,000 | $ | — | |||||||||||
| Same-center cash NOI | (4.6) | % | — | % | 3.0 | % | |||||||||||
ROIC’s management will discuss the company’s guidance and underlying assumptions on its February 24, 2021 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 results on Wednesday, February 24, 2021 at 12:00 p.m. Eastern Time / 9:00 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: 8069709. 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 24, 2021 and will be available until 3:00 p.m. Eastern Time on March 3, 2021. To access the conference call recording, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use the Conference ID: 8069709. 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 December 31, 2020, ROIC owned 88 shopping centers encompassing approximately 10.1 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, Standard & Poor’s, and Fitch Ratings, Inc. Additional information is available at: www.roireit.net.
When used herein, the words "believes," "anticipates," "projects," "should," "estimates," "expects," “guidance” 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.
RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Balance Sheets
(In thousands, except share data)
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| ASSETS | |||||||||||
| Real Estate Investments: | |||||||||||
| Land | $ | 881,872 | $ | 879,540 | |||||||
| Building and improvements | 2,274,680 | 2,252,301 | |||||||||
| 3,156,552 | 3,131,841 | ||||||||||
| Less: accumulated depreciation | 460,165 | 390,916 | |||||||||
| 2,696,387 | 2,740,925 | ||||||||||
| Mortgage note receivable | 4,959 | 13,000 | |||||||||
| Real Estate Investments, net | 2,701,346 | 2,753,925 | |||||||||
| Cash and cash equivalents | 4,822 | 3,800 | |||||||||
| Restricted cash | 1,814 | 1,658 | |||||||||
| Tenant and other receivables, net | 58,756 | 45,821 | |||||||||
| Acquired lease intangible assets, net | 50,110 | 59,701 | |||||||||
| Prepaid expenses | 4,811 | 3,169 | |||||||||
| Deferred charges, net | 22,893 | 27,652 | |||||||||
| Other assets | 17,296 | 18,031 | |||||||||
| Total assets | $ | 2,861,848 | $ | 2,913,757 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Term loan | $ | 298,524 | $ | 298,330 | |||||||
| Credit facility | 45,238 | 80,743 | |||||||||
| Senior Notes | 943,655 | 942,850 | |||||||||
| Mortgage notes payable | 86,509 | 87,523 | |||||||||
| Acquired lease intangible liabilities, net | 125,796 | 144,757 | |||||||||
| Accounts payable and accrued expenses | 17,687 | 17,562 | |||||||||
| Tenants’ security deposits | 6,854 | 7,177 | |||||||||
| Other liabilities | 46,426 | 42,987 | |||||||||
| Total liabilities | 1,570,689 | 1,621,929 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity: | |||||||||||
| Preferred stock, $0.0001 par value 50,000,000 shares authorized; none issued and outstanding | — | — | |||||||||
Common stock, $0.0001 par value, 500,000,000 shares authorized; 118,085,155 and 116,496,016 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 12 | 12 | |||||||||
| Additional paid-in capital | 1,497,662 | 1,481,466 | |||||||||
| Dividends in excess of earnings | (289,309) | (297,998) | |||||||||
| Accumulated other comprehensive loss | (8,812) | (4,132) | |||||||||
| Total Retail Opportunity Investments Corp. stockholders’ equity | 1,199,553 | 1,179,348 | |||||||||
| Non-controlling interests | 91,606 | 112,480 | |||||||||
| Total equity | 1,291,159 | 1,291,828 | |||||||||
| Total liabilities and equity | $ | 2,861,848 | $ | 2,913,757 | |||||||
RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Rental revenue | $ | 71,391 | $ | 72,282 | $ | 280,388 | $ | 291,263 | |||||||||||||||
| Other income | 1,527 | 1,337 | 3,726 | 3,777 | |||||||||||||||||||
| Total revenues | 72,918 | 73,619 | 284,114 | 295,040 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Property operating | 10,847 | 10,896 | 41,050 | 43,662 | |||||||||||||||||||
| Property taxes | 8,023 | 8,205 | 33,288 | 32,388 | |||||||||||||||||||
| Depreciation and amortization | 24,690 | 24,192 | 97,731 | 97,559 | |||||||||||||||||||
| General and administrative expenses | 4,781 | 4,157 | 16,755 | 17,831 | |||||||||||||||||||
| Other expense | 318 | 41 | 843 | 1,405 | |||||||||||||||||||
| Total operating expenses | 48,659 | 47,491 | 189,667 | 192,845 | |||||||||||||||||||
| Gain on sale of real estate | — | — | — | 13,175 | |||||||||||||||||||
| Operating income | 24,259 | 26,128 | 94,447 | 115,370 | |||||||||||||||||||
| Non-operating expenses | |||||||||||||||||||||||
| Interest expense and other finance expenses | (14,679) | (15,002) | (59,726) | (61,687) | |||||||||||||||||||
| Net income | 9,580 | 11,126 | 34,721 | 53,683 | |||||||||||||||||||
| Net income attributable to non-controlling interests | (681) | (975) | (2,707) | (4,839) | |||||||||||||||||||
| Net Income Attributable to Retail Opportunity Investments Corp. | $ | 8,899 | $ | 10,151 | $ | 32,014 | $ | 48,844 | |||||||||||||||
| Earnings per share – basic and diluted | $ | 0.08 | $ | 0.09 | $ | 0.27 | $ | 0.42 | |||||||||||||||
| Dividends per common share | $ | — | $ | 0.1970 | $ | 0.2000 | $ | 0.7880 | |||||||||||||||
CALCULATION OF FUNDS FROM OPERATIONS
(Unaudited)
(In thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Net income attributable to ROIC | $ | 8,899 | $ | 10,151 | $ | 32,014 | $ | 48,844 | |||||||||||||||
| Plus: Depreciation and amortization | 24,690 | 24,192 | 97,731 | 97,559 | |||||||||||||||||||
| Less: Gain on sale of real estate | — | — | — | (13,175) | |||||||||||||||||||
| Funds from operations – basic | 33,589 | 34,343 | 129,745 | 133,228 | |||||||||||||||||||
| Net income attributable to non-controlling interests | 681 | 975 | 2,707 | 4,839 | |||||||||||||||||||
| Funds from operations – diluted | $ | 34,270 | $ | 35,318 | $ | 132,452 | $ | 138,067 | |||||||||||||||
SAME-CENTER CASH NET OPERATING INCOME ANALYSIS
(Unaudited)
(In thousands, except number of shopping centers and percentages)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
| Number of shopping centers included in same-center analysis | 87 | 87 | 87 | 87 | ||||||||||||||||||||||||||||||||||||||||||||||
| Same-center occupancy | 96.8 | % | 97.9 | % | (1.1) | % | 96.8 | % | 97.9 | % | (1.1) | % | ||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Base rents | $ | 49,887 | $ | 51,385 | $ | (1,498) | (2.9) | % | $ | 204,148 | $ | 203,334 | $ | 814 | 0.4 | % | ||||||||||||||||||||||||||||||||||
| Percentage rent | 237 | 1,008 | (771) | (76.5) | % | 505 | 1,324 | (819) | (61.9) | % | ||||||||||||||||||||||||||||||||||||||||
| Recoveries from tenants | 15,816 | 16,719 | (903) | (5.4) | % | 66,336 | 66,255 | 81 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||
| Other property income | 1,227 | 1,051 | 176 | 16.7 | % | 2,390 | 2,945 | (555) | (18.8) | % | ||||||||||||||||||||||||||||||||||||||||
| Bad debt | (1,945) | (306) | (1,639) | 535.6 | % | (10,196) | (1,417) | (8,779) | 619.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 65,222 | 69,857 | (4,635) | (6.6) | % | 263,183 | 272,441 | (9,258) | (3.4) | % | ||||||||||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Property operating expenses | 11,055 | 11,142 | (87) | (0.8) | % | 42,671 | 44,100 | (1,429) | (3.2) | % | ||||||||||||||||||||||||||||||||||||||||
| Property taxes | 8,002 | 8,110 | (108) | (1.3) | % | 33,091 | 31,783 | 1,308 | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Operating Expenses | 19,057 | 19,252 | (195) | (1.0) | % | 75,762 | 75,883 | (121) | (0.2) | % | ||||||||||||||||||||||||||||||||||||||||
| Same-Center Cash Net Operating Income | $ | 46,165 | $ | 50,605 | $ | (4,440) | (8.8) | % | $ | 187,421 | $ | 196,558 | $ | (9,137) | (4.6) | % | ||||||||||||||||||||||||||||||||||
SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION
(Unaudited)
(In thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| GAAP operating income | $ | 24,259 | $ | 26,128 | $ | 94,447 | $ | 115,370 | |||||||||||||||
| Depreciation and amortization | 24,690 | 24,192 | 97,731 | 97,559 | |||||||||||||||||||
| General and administrative expenses | 4,781 | 4,157 | 16,755 | 17,831 | |||||||||||||||||||
| Other expense | 318 | 41 | 843 | 1,405 | |||||||||||||||||||
| Gain on sale of real estate | — | — | — | (13,175) | |||||||||||||||||||
| Straight-line rent | (516) | (433) | (1,079) | (3,083) | |||||||||||||||||||
| Amortization of above- and below-market rent | (6,898) | (2,593) | (17,654) | (15,618) | |||||||||||||||||||
Property revenues and other expenses (1) | (12) | (278) | (374) | (142) | |||||||||||||||||||
| Total Company cash NOI | 46,622 | 51,214 | 190,669 | 200,147 | |||||||||||||||||||
| Non same-center cash NOI | (457) | (609) | (3,248) | (3,589) | |||||||||||||||||||
| Same-center cash NOI | $ | 46,165 | $ | 50,605 | $ | 187,421 | $ | 196,558 | |||||||||||||||
____________________
(1)Includes anchor lease termination fees, net of contractual amounts, if any, expense and recovery adjustments related to prior periods and other miscellaneous adjustments.
NON-GAAP DISCLOSURES
Funds from operations (“FFO”), is a widely recognized non-GAAP financial measure for REITs that the Company believes when considered with financial statements presented in accordance with GAAP, provides additional and useful means to assess its financial performance. FFO is frequently used by securities analysts, investors and other interested parties to evaluate the performance of REITs, most of which present FFO along with net income as calculated in accordance with GAAP. The Company computes FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income attributable to common stockholders (determined in accordance with GAAP) excluding gains or losses from debt restructuring, sales of depreciable property and impairments, plus real estate related depreciation and amortization, and after adjustments for partnerships and unconsolidated joint ventures.
The Company uses cash net operating income (“NOI”) internally to evaluate and compare the operating performance of the Company’s properties. The Company believes cash NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level, and when compared across periods, can be used to determine trends in earnings of the Company’s properties as this measure is not affected by the non-cash revenue and expense recognition items, the cost of the Company’s funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate to the Company’s ownership of properties. The Company believes the exclusion of these items from operating income is useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating the Company’s properties as well as trends in occupancy rates, rental rates and operating costs. Cash NOI is a measure of the operating performance of the Company’s properties but does not measure the Company’s performance as a whole and is therefore not a substitute for net income or operating income as computed in accordance with GAAP. The Company defines cash NOI as operating revenues (base rent and recoveries from tenants), less property and related expenses (property operating expenses and property taxes), adjusted for non-cash revenue and operating expense items such as straight-line rent and amortization of lease intangibles, debt-related expenses and other adjustments. Cash NOI also excludes general and administrative expenses, depreciation and amortization, acquisition transaction costs, other expense, interest expense, gains and losses from property acquisitions and dispositions, extraordinary items, tenant improvements
and leasing commissions. Other REITs may use different methodologies for calculating cash NOI, and accordingly, the Company’s cash NOI may not be comparable to other REITs.
Contact:
Ashley Rubino, Investor Relations
858-677-0900
arubino@roireit.net
4th QUARTER 2020 SUPPLEMENTAL INFORMATION Retail Opportunity Investments Corp. 11250 El Camino Real, Suite 200 San Diego, CA 92130 www.roireit.net
Our Company Retail Opportunity Investments Corp. (Nasdaq: ROIC), is a fully integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely populated, metropolitan markets across the West Coast. As of December 31, 2020, ROIC owned 88 shopping centers encompassing approximately 10.1 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, S&P Global Ratings and Fitch Ratings, Inc. Additional information is available at www.roireit.net. Supplemental Information The enclosed information should be read in conjunction with ROIC's filings with the Securities and Exchange Commission, including but not limited to, its Form 10-Qs filed quarterly and Form 10-Ks filed annually. Additionally, the enclosed information does not purport to disclose all items under generally accepted accounting principles (“GAAP”). Non-GAAP Disclosures Funds from operations (“FFO”), is a widely-recognized non-GAAP financial measure for REITs that the Company believes when considered with financial statements presented in accordance with GAAP, provides additional and useful means to assess its financial performance. FFO is frequently used by securities analysts, investors and other interested parties to evaluate the performance of REITs, most of which present FFO along with net income as calculated in accordance with GAAP. The Company computes FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income attributable to common stockholders (determined in accordance with GAAP) excluding gains or losses from debt restructuring, sales of depreciable property and impairments, plus real estate related depreciation and amortization, and after adjustments for partnerships and unconsolidated joint ventures. The Company uses cash net operating income (“NOI”) internally to evaluate and compare the operating performance of the Company’s properties. The Company believes cash NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level, and when compared across periods, can be used to determine trends in earnings of the Company’s properties as this measure is not affected by the non-cash revenue and expense recognition items, the cost of the Company’s funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate to the Company’s ownership of properties. The Company believes the exclusion of these items from operating income is useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating the Company’s properties as well as trends in occupancy rates, rental rates and operating costs. Cash NOI is a measure of the operating performance of the Company’s properties but does not measure the Company’s performance as a whole and is therefore not a substitute for net income or operating income as computed in accordance with GAAP. The Company defines cash NOI as operating revenues (base rent and recoveries from tenants), less property and related expenses (property operating expenses and property taxes), adjusted for non-cash revenue and operating expense items such as straight-line rent and amortization of lease intangibles, debt-related expenses and other adjustments. Cash NOI also excludes general and administrative expenses, depreciation and amortization, acquisition transaction costs, other expense, interest expense, gains and losses from property acquisitions and dispositions, extraordinary items, tenant improvements and leasing commissions. Other REITs may use different methodologies for calculating cash NOI, and accordingly, the Company’s cash NOI may not be comparable to other REITs. Overview Supplemental Disclosure Quarter Ended December 31, 2020 - 2 -
Page Balance Sheets……..……………………………………………………………..………………………………………………… 4 Income Statements .…………………………………………………………………………………..……..…………...………… 5 Funds From Operations …………………………………………………………………………………………………………… 6 Summary of Debt Outstanding .……………………………………………..…………………………………………………… 7 Selected Financial Analysis .……………………………………………………………………………………………………… 9 Property Portfolio ………………………………………………….……………………………………………………………… 10 Same-Center Cash Net Operating Income Analysis……………………………………………………………………………… 13 Top Ten Tenants ………………….…………….………………….……………………………………………………………… 14 Lease Expiration Schedule ……………………..………………………..…….………………………………………………… 15 Leasing Summary ………………………………………………………..…................................................................................ 16 Same-Space Comparative Leasing Summary ………………………………………………………..…...................................... 17 Leased vs. Billed Summary …………………………...………….……………………..…......................................................... 18 COVID-19 Status of Tenants ………………………...………………………………..…............................................................ 19 Investor Information …………………………………………………………..…………………………………………………… 20 Financial Data Portfolio Data Table of Contents Supplemental Disclosure Quarter Ended December 31, 2020 - 3 -
(dollars in thousands, except par values and share amounts) 12/31/20 12/31/19 ASSETS: Real Estate Investments: Land 881,872$ 879,540$ Building and improvements 2,274,680 2,252,301 3,156,552 3,131,841 Less: accumulated depreciation 460,165 390,916 2,696,387 2,740,925 Mortgage note receivable 4,959 13,000 Real Estate Investments, net 2,701,346 2,753,925 Cash and cash equivalents 4,822 3,800 Restricted cash 1,814 1,658 Tenant and other receivables, net 58,756 45,821 Acquired lease intangible assets, net 50,110 59,701 Prepaid expenses 4,811 3,169 Deferred charges, net 22,893 27,652 Other assets 17,296 18,031 TOTAL ASSETS 2,861,848$ 2,913,757$ LIABILITIES: Term loan 298,524$ 298,330$ Credit facility 45,238 80,743 Senior Notes 943,655 942,850 Mortgage notes payable 86,509 87,523 Acquired lease intangible liabilities, net 125,796 144,757 Accounts payable and accrued expenses 17,687 17,562 Tenants' security deposits 6,854 7,177 Other liabilities 46,426 42,987 TOTAL LIABILITIES 1,570,689 1,621,929 EQUITY: Common stock, $.0001 par value 500,000,000 shares authorized 12 12 Additional paid-in capital 1,497,662 1,481,466 Dividends in excess of earnings (289,309) (297,998) Accumulated other comprehensive loss (8,812) (4,132) Total Retail Opportunity Investments Corp. stockholders' equity 1,199,553 1,179,348 Non-controlling interests 91,606 112,480 TOTAL EQUITY 1,291,159 1,291,828 TOTAL LIABILITIES AND EQUITY 2,861,848$ 2,913,757$ The Company's Form 10-Q for the quarters ended September 30, 2020, June 30, 2020, and March 31, 2020, and Form 10-K for the years ended December 31, 2020 and 2019 should be read in conjunction with the above information. Balance Sheets Supplemental Disclosure Quarter Ended December 31, 2020 - 4 -
(in thousands, except per share amounts) 3 Months Ended (unaudited) Year Ended 12/31/20 12/31/19 12/31/20 12/31/19 REVENUES: Rental revenue (1) 71,391$ 72,282$ 280,388$ 291,263$ Other income 1,527 1,337 3,726 3,777 TOTAL REVENUES 72,918 73,619 284,114 295,040 OPERATING EXPENSES: Property operating 10,847 10,896 41,050 43,662 Property taxes 8,023 8,205 33,288 32,388 Depreciation and amortization 24,690 24,192 97,731 97,559 General and administrative expenses 4,781 4,157 16,755 17,831 Other expense 318 41 843 1,405 TOTAL OPERATING EXPENSES 48,659 47,491 189,667 192,845 Gain on sale of real estate - - - 13,175 OPERATING INCOME 24,259 26,128 94,447 115,370 NON-OPERATING EXPENSES: Interest expense and other finance expenses (14,679) (15,002) (59,726) (61,687) NET INCOME 9,580 11,126 34,721 53,683 NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (681) (975) (2,707) (4,839) NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. 8,899$ 10,151$ 32,014$ 48,844$ NET INCOME PER COMMON SHARE - BASIC 0.08$ 0.09$ 0.27$ 0.42$ NET INCOME PER COMMON SHARE - DILUTED 0.08$ 0.09$ 0.27$ 0.42$ Weighted average common shares outstanding - basic 117,353 115,518 116,732 114,178 Weighted average common shares outstanding - diluted 126,496 126,938 126,627 125,741 (1) RENTAL REVENUE Base rents 50,295$ 52,518$ 205,549$ 206,816$ Recoveries from tenants 15,909 17,053 67,141 67,715 Straight-line rent 516 433 1,079 3,083 Amortization of above- and below-market rent 6,898 2,593 17,654 15,618 Bad debt (2,227) (315) (11,035) (1,969) TOTAL RENTAL REVENUE 71,391$ 72,282$ 280,388$ 291,263$ The Company's Form 10-Q for the quarters ended September 30, 2020, June 30, 2020, and March 31, 2020, and Form 10-K for the years ended December 31, 2020 and 2019 should be read in conjunction with the above information. Income Statements Supplemental Disclosure Quarter Ended December 31, 2020 - 5 -
(in thousands, except per share amounts) 3 Months Ended (unaudited) Year Ended 12/31/20 12/31/19 12/31/20 12/31/19 Funds from Operations (FFO) (1) : Net income attributable to ROIC common stockholders 8,899$ 10,151$ 32,014$ 48,844$ Plus: Depreciation and amortization expense 24,690 24,192 97,731 97,559 Less: Gain on sale of real estate - - - (13,175) FUNDS FROM OPERATIONS - BASIC 33,589 34,343 129,745 133,228 Net income attributable to non-controlling interests 681 975 2,707 4,839 FUNDS FROM OPERATIONS - DILUTED 34,270$ 35,318$ 132,452$ 138,067$ FUNDS FROM OPERATIONS PER SHARE - BASIC 0.29$ 0.30$ 1.11$ 1.17$ FUNDS FROM OPERATIONS PER SHARE - DILUTED 0.27$ 0.28$ 1.05$ 1.10$ Weighted average common shares outstanding - basic 117,353 115,518 116,732 114,178 Weighted average common shares outstanding - diluted 126,496 126,938 126,627 125,741 Common dividends per share -$ 0.1970$ 0.2000$ 0.7880$ FFO Payout Ratio - 70.4% 19.0% 71.6% Additional Disclosures: Non Cash Expense (Income) Straight line rent (516)$ (433)$ (1,079)$ (3,083)$ Above/below market rent amortization, net (6,898) (2,593) (17,654) (15,618) Non-cash interest expense 73 74 293 524 Deferred financing costs and mortgage premiums, net 596 523 2,219 2,076 Stock based compensation 2,549 2,443 8,914 8,567 Capital Expenditures Tenant improvements 4,901$ 4,886$ 18,569$ 20,919$ Leasing commissions 410 370 1,365 1,178 Building improvements 321 118 868 794 Reimbursable property improvements 85 351 1,289 2,758 Pad and other development 4,839 1,138 9,715 4,958 Value enhancing tenant improvements 1,395 486 5,678 4,668 The above does not purport to disclose all items required under GAAP. (1) - Funds from operations ("FFO"), is a widely-recognized non GAAP financial measure for REITs that ROIC believes, when considered with financial statements determined in accordance with GAAP, provides additional and useful means to assess its financial performance. FFO is frequently used by securities analysts, investors and other interested parties to evaluate the performance of REITs. ROIC computes FFO in accordance with the "White Paper" on FFO published by the National Association of Real Estate Investment Trusts ("NAREIT"), which defines FFO as net income attributable to common shareholders (determined in accordance with GAAP) excluding gains or losses from debt restructuring and sales of property, plus real estate related depreciation and amortization, and after adjustments for partnerships and unconsolidated joint ventures. Funds From Operations Supplemental Disclosure Quarter Ended December 31, 2020 - 6 -
(unaudited, dollars in thousands) Outstanding GAAP Maturity Percent of Balance Interest Rate Interest Rate Date Total Indebtedness Fixed Rate Debt Mortgage Debt: Casitas Plaza Shopping Center 6,835$ 5.32% 4.20% 06/01/22 0.5% Riverstone Marketplace 17,245 4.96% 3.80% 07/01/22 1.2% Fullerton Crossroads 26,000 4.73% 3.82% 04/06/24 1.9% Diamond Hills Plaza 35,500 3.55% 3.61% 10/01/25 2.6% Net unamortized premiums/deferred financing charges 929 Total Mortgage Debt 86,509 4.33% 3.76% 3.4 Years (WA) 6.2% Unsecured Senior Notes: Senior Notes Due 2023 250,000 5.00% 5.21% 12/15/23 18.1% Senior Notes Due 2024 250,000 4.00% 4.21% 12/15/24 18.1% Senior Notes Due 2026 200,000 3.95% 3.95% 09/22/26 14.4% Senior Notes Due 2027 250,000 4.19% 4.19% 12/15/27 18.1% Net unamortized discounts/deferred financing charges (6,345) Total Unsecured Senior Notes 943,655 4.30% 4.41% 4.9 Years (WA) 68.7% Term Loan: Interest rate swaps 100,000 3.59% 3.59% 8/31/2022 7.2% Interest rate swaps 200,000 2.74% 2.74% 8/31/2022 14.4% Total Term Loan 300,000 3.02% 3.02% 21.6% Total Fixed Rate Debt 1,330,164 4.02% 4.06% 4.7 Years (WA) 96.5% Variable Rate Debt Credit Facility 48,000 1.05% 1.05% 02/20/24 3.5% Net unamortized deferred financing charges (2,762) Credit Facility, net 45,238 Term Loan 300,000 01/20/25 Net unamortized deferred financing charges (1,476) Term Loan, net 298,524 Interest rate swaps - Term loan (300,000) Total Variable Rate Debt 43,762 1.05% 1.05% 3.9 Years (WA) 3.5% TOTAL DEBT 1,373,926$ 3.91% 3.96% 4.5 Years (WA) 100.0% Net unamortized premiums on mortgages (1,113) Net unamortized discounts on notes 3,025 Net unamortized deferred financing charges 7,742 Total Principal Debt 1,383,580$ (1) Does not include extension options available to ROIC. Summary of Debt Outstanding (1) Supplemental Disclosure Quarter Ended December 31, 2020 - 7 -
(unaudited, dollars in thousands) Summary of Principal Maturities Senior Total Principal Percentage of Credit Facility Term Loan Unsecured Notes Payments Debt Maturing -$ -$ -$ -$ 717$ 0.0% 23,129 - - - 24,132 1.7% - - - 250,000 250,686 18.1% 26,000 48,000 - 250,000 324,708 23.6% 32,787 - 300,000 - 333,337 24.1% - - - 200,000 200,000 14.4% - - - 250,000 250,000 18.1% - - - - - - % 81,916$ 48,000$ 300,000$ 950,000$ 1,383,580$ 100.0% Summary of Unencumbered/Encumbered Properties Percentage GLA of GLA Unencumbered properties 9,514,763 94.5% Encumbered properties 552,471 5.5% 10,067,234 100.0% Summary of Unsecured Debt/Secured Debt Percentage of Total Principal Debt Unsecured principal debt 1,298,000$ 93.8% Secured principal debt 85,580 6.2% Total Principal Debt 1,383,580$ 100.0% (1) Does not include extension options available to ROIC. 88 Thereafter - 3,664$ Number of Properties 84 4 Year Payments 2022 1,003 Mortgage Principal due at Maturity Amount 2021 717$ Mortgage Principal 2023 686 2024 708 2025 550 2026 - 2027 - Summary of Debt Outstanding, continued (1) Supplemental Disclosure Quarter Ended December 31, 2020 - 8 -
(unaudited, in thousands, except per share amounts) 12/31/20 09/30/20 06/30/20 03/31/20 12/31/19 Debt coverage ratios, three months ending: Interest coverage ratio (EBITDA/interest expense) 3.4x 3.1x 3.0x 3.5x 3.4x Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 3.3x 3.1x 2.9x 3.5x 3.3x Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 7.5x 7.3x 7.9x 7.0x 7.0x Net principal debt (Total principal debt less cash & equivalents)/TTM EBITDA 7.1x 7.1x 7.2x 7.1x 7.0x Debt/book value ratios, at period end: Total principal debt/total book assets 48.3% 49.3% 51.8% 50.3% 48.7% Total principal debt/undepreciated book value 41.6% 42.8% 45.4% 44.2% 43.0% Secured principal debt/undepreciated book value 2.6% 2.5% 2.5% 2.6% 2.6% Market capitalization calculations, at period end: Common shares outstanding 117,409 117,264 116,962 115,440 115,871 Operating partnership units (OP units) outstanding 8,966 9,111 9,413 10,934 11,051 Common stock price per share 13.39$ 10.42$ 11.33$ 8.29$ 17.66$ Total equity market capitalization 1,692,160$ 1,316,827$ 1,431,828$ 1,047,648$ 2,241,442$ Total principal debt 1,383,580 1,439,228 1,569,373 1,489,515 1,420,157 TOTAL MARKET CAPITALIZATION 3,075,740$ 2,756,055$ 3,001,201$ 2,537,163$ 3,661,599$ Unsecured Senior Notes Financial Covenants: (1) Total debt to total assets not to exceed 60% 44.1% 45.4% 48.1% 46.9% 45.4% Total secured debt to total assets not to exceed 40% 2.7% 2.7% 2.6% 2.7% 2.8% Total unencumbered assets to total unsecured debt not to be less than 150% 227.5% 220.9% 207.7% 213.5% 221.2% Consolidated income available for debt service to interest expense not to be less than 1.5:1 3.2x 3.2x 3.3x 3.3x 3.3x (1) Calculated in accordance with GAAP pursuant to underlying bond indentures. Selected Financial Analysis Supplemental Disclosure Quarter Ended December 31, 2020 - 9 -
(dollars in thousands) Date Owned % Southern California City State Acquired GLA Leased ABR (1) Major Tenants Los Angeles metro area Paramount Plaza * Paramount CA 12/22/09 95,062 100.0% 1,948$ Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy Claremont Promenade * Claremont CA 09/23/10 92,297 97.2% 2,472 Super King Supermarket Gateway Village * Chino Hills CA 12/17/10 96,959 92.1% 2,843 Sprouts Market Seabridge Marketplace * Oxnard CA 05/31/12 98,348 95.3% 1,879 Safeway (Vons) Supermarket Glendora Shopping Center * Glendora CA 08/01/12 106,535 92.4% 1,308 Albertson's Supermarket Redondo Beach Plaza * Redondo Beach CA 12/28/12 110,509 100.0% 2,357 Safeway (Vons) Supermarket, Petco Diamond Bar Town Center * Diamond Bar CA 02/01/13 100,342 99.0% 2,346 Walmart Neighborhood Market, Crunch Fitness Diamond Hills Plaza * Diamond Bar CA 04/22/13 139,505 97.2% 3,944 H-Mart Supermarket Plaza de la Cañada * La Cañada Flintridge CA 12/13/13 100,425 100.0% 2,673 Gelson's Supermarket, TJ Maxx, Rite Aid Pharmacy Fallbrook Shopping Center * Los Angeles CA 06/13/14 755,299 98.8% 13,042 Sprouts Market, Trader Joe's, Kroger (Ralph's) Supermarket(2), TJ Maxx Moorpark Town Center * Moorpark CA 12/03/14 133,547 89.8% 1,796 Kroger (Ralph's) Supermarket, CVS Pharmacy Ontario Plaza * Ontario CA 01/06/15 150,149 94.4% 2,317 El Super Supermarket, Rite Aid Pharmacy Park Oaks Shopping Center * Thousand Oaks CA 01/06/15 110,092 88.4% 2,474 Safeway (Vons) Supermarket, Dollar Tree Warner Plaza * Woodland Hills CA 12/31/15 110,918 91.1% 4,326 Sprouts Market, Kroger (Ralph's) Supermarket (2), Rite Aid Pharmacy (2) Magnolia Shopping Center * Santa Barbara CA 03/10/16 116,360 85.9% 2,118 Kroger (Ralph's) Supermarket Casitas Plaza Shopping Center * Carpinteria CA 03/10/16 105,118 96.9% 1,799 Albertson's Supermarket, CVS Pharmacy Bouquet Center * Santa Clarita CA 04/28/16 148,903 95.5% 3,527 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less North Ranch Shopping Center * Westlake Village CA 06/01/16 146,448 91.8% 4,803 Kroger (Ralph's) Supermarket, Trader Joe's, Rite Aid Pharmacy, Petco The Knolls * Long Beach CA 10/03/16 52,021 95.2% 1,268 Trader Joe's, Pet Food Express The Terraces * Rancho Palos Verdes CA 03/17/17 172,922 93.1% 3,455 Trader Joe's, Marshall's, LA Fitness Los Angeles metro area total 2,941,759 95.4% 62,695$ Orange County metro area Santa Ana Downtown Plaza * Santa Ana CA 01/26/10 105,536 96.0% 2,235$ Kroger (Food 4 Less) Supermarket, Marshall's Sycamore Creek * Corona CA 09/30/10 74,198 98.2% 1,859 Safeway (Vons) Supermarket, CVS Pharmacy (2) Desert Springs Marketplace * Palm Desert CA 02/17/11 113,718 97.7% 2,893 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy Cypress Center West * Cypress CA 12/04/12 107,246 94.1% 2,033 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy Harbor Place Center * Garden Grove CA 12/28/12 119,836 98.8% 1,818 AA Supermarket, Ross Dress For Less, Autozone 5 Points Plaza * Huntington Beach CA 09/27/13 160,536 99.7% 4,345 Trader Joe's Peninsula Marketplace * Huntington Beach CA 10/15/13 95,416 97.4% 2,392 Kroger (Ralph's) Supermarket, Planet Fitness Fullerton Crossroads * Fullerton CA 10/11/17 219,785 98.9% 3,549 Kroger (Ralph's) Supermarket, Kohl's, Jo-Ann Fabrics and Crafts The Village at Nellie Gail Ranch * Laguna Hills CA 11/30/17 89,041 91.1% 2,775 Smart & Final Extra Supermarket Orange Country metro area total 1,085,312 97.3% 23,899$ San Diego metro area Marketplace Del Rio * Oceanside CA 01/03/11 183,787 96.0% 3,469$ Stater Brothers Supermarket, Walgreens Renaissance Towne Centre * San Diego CA 08/03/11 53,272 87.0% 2,334 CVS Pharmacy Euclid Plaza * San Diego CA 03/29/12 77,044 100.0% 1,579 Vallarta Supermarket, Walgreens Bay Plaza * San Diego CA 10/05/12 73,324 98.0% 2,098 Seafood City Supermarket Bernardo Heights Plaza * Rancho Bernardo CA 02/06/13 37,729 100.0% 966 Sprouts Market Hawthorne Crossings * San Diego CA 06/27/13 141,288 94.9% 3,151 Mitsuwa Supermarket, Ross Dress For Less, Staples Creekside Plaza * Poway CA 02/28/14 133,852 93.3% 3,064 Stater Brothers Supermarket, AMC Theatres San Diego metro area total 700,296 95.4% 16,661$ Southern California Totals 4,727,367 95.9% 103,255$ (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. *Denotes properties in same center pool for 4Q 2020. Property Portfolio Supplemental Disclosure Quarter Ended December 31, 2020 - 10 -
(dollars in thousands) Date Owned % Northern California City State Acquired GLA Leased ABR (1) Major Tenants San Francisco metro area Pleasant Hill Marketplace * Pleasant Hill CA 04/08/10 69,715 100.0% 1,471$ Total Wine and More, Buy Buy Baby, Basset Furniture Pinole Vista Shopping Center * Pinole CA 01/06/11 135,962 99.1% 3,944 SaveMart (Lucky) Supermarket, Planet Fitness Country Club Gate Center * Pacific Grove CA 07/08/11 109,331 90.1% 2,153 SaveMart (Lucky) Supermarket, Rite Aid Pharmacy Marlin Cove Shopping Center * Foster City CA 05/04/12 73,943 100.0% 2,471 99 Ranch Market The Village at Novato * Novato CA 07/24/12 20,081 100.0% 560 Trader Joe's, Pharmaca Pharmacy Santa Teresa Village * San Jose CA 11/08/12 127,888 94.6% 2,986 Grocery Outlet Supermarket, Dollar Tree, MedVet Silicon Valley Granada Shopping Center * Livermore CA 06/27/13 71,525 100.0% 1,485 SaveMart (Lucky) Supermarket Country Club Village * San Ramon CA 11/26/13 111,093 98.8% 2,286 Walmart Neighborhood Market, CVS Pharmacy North Park Plaza * San Jose CA 04/30/14 76,697 100.0% 2,613 H-Mart Supermarket Winston Manor * South San Francisco CA 01/07/15 49,852 100.0% 1,796 Grocery Outlet Supermarket Jackson Square * Hayward CA 07/01/15 114,220 99.1% 2,251 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness Gateway Centre * San Ramon CA 09/01/15 112,553 96.6% 2,638 SaveMart (Lucky) Supermarket, Walgreens Iron Horse Plaza * Danville CA 12/04/15 61,915 100.0% 2,351 Lunardi's Market Monterey Center * Monterey CA 07/14/16 25,626 93.7% 1,021 Trader Joe's, Pharmaca Pharmacy Santa Rosa Southside Shopping Center * Santa Rosa CA 03/24/17 88,535 95.9% 1,577 REI, Cost Plus World Market, DSW Monta Loma Plaza * Mountain View CA 09/19/17 48,078 100.0% 1,547 Safeway Supermarket San Francisco metro area total 1,297,014 97.7% 33,150$ Sacramento metro area Mills Shopping Center * Rancho Cordova CA 02/17/11 235,514 89.3% 2,724$ Viva Supermarket, Ross Dress For Less (dd's Discounts), Dollar Tree Green Valley Station * Cameron Park CA 06/15/12 52,245 85.8% 919 CVS Pharmacy Sacramento metro area total 287,759 88.7% 3,643$ Northern California Totals 1,584,773 96.0% 36,793$ (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. *Denotes properties in same center pool for 4Q 2020. Property Portfolio, continued Supplemental Disclosure Quarter Ended December 31, 2020 - 11 -
(dollars in thousands) Date Owned % Pacific Northwest City State Acquired GLA Leased ABR (1) Major Tenants Seattle metro area Meridian Valley Plaza * Kent WA 02/01/10 51,597 100.0% 873$ Kroger (QFC) Supermarket The Market at Lake Stevens * Lake Stevens WA 03/11/10 74,130 100.0% 1,681 Albertson's (Haggen) Supermarket Canyon Park Shopping Center * Bothell WA 07/29/11 123,592 100.0% 2,533 PCC Community Markets, Rite Aid Pharmacy, Petco Hawks Prairie Shopping Center * Lacey WA 09/09/11 157,529 100.0% 1,960 Safeway Supermarket, Dollar Tree, Big Lots The Kress Building * Seattle WA 09/30/11 74,616 69.2% 1,434 IGA Supermarket, TJMaxx Gateway Shopping Center * Marysville WA 02/16/12 104,298 93.9% 2,497 WinCo Foods (2), Rite Aid Pharmacy, Ross Dress For Less Aurora Square * Shoreline WA 2012/2014 108,558 97.4% 1,909 Central Supermarket, Marshall's Canyon Crossing * Puyallup WA 04/15/13 120,398 100.0% 2,864 Safeway Supermarket Crossroads Shopping Center * Bellevue WA 2010/2013 473,147 98.1% 11,187 Kroger (QFC) Supermarket, Bed Bath & Beyond, Dick's Sporting Goods Bellevue Marketplace * Bellevue WA 12/10/15 113,758 100.0% 3,415 Asian Family Market Four Corner Square * Maple Valley WA 12/21/15 119,531 100.0% 2,634 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden Bridle Trails Shopping Center * Kirkland WA 10/17/16 110,640 100.0% 2,393 Grocery Outlet Supermarket, Bartell Drugs, Dollar Tree PCC Community Markets Plaza * Edmonds WA 01/25/17 34,459 100.0% 690 PCC Community Markets Highland Hill Shopping Center * Tacoma WA 05/09/17 163,926 100.0% 3,084 Safeway Supermarket, LA Fitness, Dollar Tree, Petco North Lynnwood Shopping Center * Lynnwood WA 10/19/17 63,606 80.1% 934 Grocery Outlet Supermarket Stadium Center * Tacoma WA 02/23/18 48,888 100.0% 1,037 Thriftway Supermarket Summerwalk Village Lacey WA 12/13/19 60,379 98.0% 880 Walmart Neighborhood Market Seattle metro area total 2,003,052 97.2% 42,005$ Portland metro area Happy Valley Town Center * Happy Valley OR 07/14/10 138,397 100.0% 3,805$ New Seasons Supermarket Wilsonville Old Town Square * Wilsonville OR 2010/2012 49,937 100.0% 1,850 Kroger (Fred Meyer) Supermarket (2) Cascade Summit Town Square * West Linn OR 08/20/10 94,934 100.0% 1,832 Safeway Supermarket Heritage Market Center * Vancouver WA 09/23/10 108,054 100.0% 1,893 Safeway Supermarket, Dollar Tree Division Crossing * Portland OR 12/22/10 103,561 100.0% 1,314 Rite Aid Pharmacy, Ross Dress For Less, Ace Hardware Halsey Crossing * Gresham OR 12/22/10 99,428 98.0% 1,371 24 Hour Fitness, Dollar Tree Hillsboro Market Center * Hillsboro OR 11/23/11 156,021 99.3% 2,599 Albertson's Supermarket, Dollar Tree, Ace Hardware Robinwood Shopping Center * West Linn OR 08/23/13 70,831 100.0% 1,095 Walmart Neighborhood Market Tigard Marketplace * Tigard OR 02/18/14 136,889 100.0% 2,086 H-Mart Supermarket, Bi-Mart Wilsonville Town Center * Wilsonville OR 12/11/14 167,829 100.0% 2,916 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree Tigard Promenade * Tigard OR 07/28/15 88,043 100.0% 1,512 Safeway Supermarket Sunnyside Village Square * Happy Valley OR 07/28/15 92,278 100.0% 1,605 Grocery Outlet Supermarket, Snap Fitness, Ace Hardware Johnson Creek Center * Happy Valley OR 11/09/15 108,588 100.0% 2,278 Trader Joe's, Walgreens, Sportsman's Warehouse Rose City Center * Portland OR 09/15/16 60,680 100.0% 833 Safeway Supermarket Division Center * Portland OR 04/05/17 118,122 100.0% 2,115 Grocery Outlet Supermarket, Rite Aid Pharmacy, Petco Riverstone Marketplace * Vancouver WA 10/11/17 95,774 100.0% 2,265 Kroger (QFC) Supermarket King City Plaza * King City OR 05/18/18 62,676 90.0% 910 Grocery Outlet Supermarket Portland metro area total 1,752,042 99.5% 32,279$ Pacific Northwest Totals 3,755,094 98.3% 74,284$ TOTAL SHOPPING CENTERS 10,067,234 96.8% 214,332$ (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. *Denotes properties in same center pool for 4Q 2020. Property Portfolio, continued Supplemental Disclosure Quarter Ended December 31, 2020 - 12 -
(unaudited, dollars in thousands) Three Months Ended Year Ended 12/31/20 12/31/19 $ Change % Change 12/31/20 12/31/19 $ Change % Change Number of shopping centers included in same-center analysis (1) 87 87 87 87 Same-center occupancy 96.8% 97.9% (1.1)% 96.8% 97.9% (1.1)% REVENUES: Base rents 49,887$ 51,385$ (1,498)$ (2.9%) 204,148$ 203,334$ 814$ 0.4% Percentage rent 237 1,008 (771) (76.5%) 505 1,324 (819) (61.9%) Recoveries from tenants 15,816 16,719 (903) (5.4%) 66,336 66,255 81 0.1% Other property income 1,227 1,051 176 16.7% 2,390 2,945 (555) (18.8)% Bad debt (1,945) (306) (1,639) 535.6% (10,196) (1,417) (8,779) 619.5% TOTAL REVENUES 65,222 69,857 (4,635) (6.6%) 263,183 272,441 (9,258) (3.4%) OPERATING EXPENSES: Property operating expenses 11,055 11,142 (87) (0.8%) 42,671 44,100 (1,429) (3.2%) Property taxes 8,002 8,110 (108) (1.3)% 33,091 31,783 1,308 4.1% TOTAL OPERATING EXPENSES 19,057 19,252 (195) (1.0%) 75,762 75,883 (121) (0.2%) SAME-CENTER CASH NET OPERATING INCOME 46,165$ 50,605$ (4,440)$ (8.8%) 187,421$ 196,558$ (9,137)$ (4.6%) SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION GAAP Operating Income 24,259$ 26,128$ 94,447$ 115,370$ Depreciation and amortization 24,690 24,192 97,731 97,559 General and administrative expenses 4,781 4,157 16,755 17,831 Other expense 318 41 843 1,405 Gain on sale of real estate - - - (13,175) Straight-line rent (516) (433) (1,079) (3,083) Amortization of above- and below-market rent (6,898) (2,593) (17,654) (15,618) Property revenues and other expenses (2) (12) (278) (374) (142) TOTAL COMPANY CASH NET OPERATING INCOME 46,622 51,214 190,669 200,147 Non Same-Center Cash NOI (457) (609) (3,248) (3,589) SAME-CENTER CASH NET OPERATING INCOME 46,165$ 50,605$ 187,421$ 196,558$ (1) Same centers are those properties which were owned for the entirety of the current and comparable prior year period. (2) Includes anchor lease termination fees net of contractual amounts, if any, expense and recovery adjustments related to prior periods and other miscellaneous adjustments. Same-Center Cash Net Operating Income Analysis Supplemental Disclosure Quarter Ended December 31, 2020 - 13 -
(dollars in thousands) Percent Number of Leased of Total Percent of Tenant Leases GLA Leased GLA ABR Total ABR 1 Albertson's / Safeway Supermarkets 18 898,425 9.2% 11,689$ 5.5% 2 Kroger Supermarkets 11 483,455 5.0% 7,335 3.4% 3 SaveMart Supermarkets 4 187,639 1.9% 3,983 1.9% 4 JP Morgan Chase 21 95,163 1.0% 3,157 1.5% 5 Rite Aid Pharmacy 12 232,586 2.4% 3,080 1.4% 6 Marshall's / TJMaxx 6 178,195 1.8% 2,840 1.3% 7 Trader Joe's 8 96,714 1.0% 2,802 1.3% 8 Sprouts Markets 4 159,163 1.6% 2,747 1.3% 9 Ross Dress For Less / dd's Discounts 7 191,703 2.0% 2,693 1.3% 10 Grocery Outlet Supermarkets 9 194,443 2.0% 2,662 1.2% Top 10 Tenants Total 100 2,717,486 27.9% 42,988$ 20.1% Other Tenants 1,804 7,022,784 72.1% 171,344 79.9% Total Portfolio 1,904 9,740,270 100.0% 214,332$ 100.0% Top Ten Tenants Supplemental Disclosure Quarter Ended December 31, 2020 - 14 -
(dollars in thousands) Anchor Tenants (1) Number of Leased Percent of Total Percent of ABR Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2021 4 103,663 1.1% 1,315 0.6% 12.69 2022 16 494,010 5.1% 6,207 2.9% 12.57 2023 27 860,417 8.8% 13,536 6.3% 15.73 2024 15 505,124 5.2% 8,415 3.9% 16.66 2025 20 660,405 6.8% 9,095 4.2% 13.77 2026 18 655,780 6.7% 8,346 3.9% 12.73 2027 6 123,082 1.3% 1,817 0.8% 14.76 2028 14 514,446 5.3% 9,360 4.4% 18.19 2029 12 433,505 4.4% 7,976 3.7% 18.40 2030 7 267,773 2.7% 4,181 2.0% 15.61 2031+ 24 854,982 8.8% 12,977 6.1% 15.18 163 5,473,187 56.2% 83,225$ 38.8% 15.21$ Non-Anchor Tenants Number of Leased Percent of Total Percent of ABR Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2021 304 573,204 5.9% 17,752 8.3% 30.97 2022 280 603,908 6.2% 18,360 8.6% 30.40 2023 285 631,016 6.5% 19,848 9.3% 31.45 2024 248 592,562 6.1% 18,427 8.6% 31.10 2025 234 581,519 6.0% 17,216 8.0% 29.61 2026 121 342,888 3.5% 10,001 4.7% 29.17 2027 66 214,140 2.2% 6,283 2.9% 29.34 2028 57 182,442 1.9% 6,460 3.0% 35.41 2029 44 143,132 1.5% 4,592 2.1% 32.08 2030 40 116,234 1.2% 4,473 2.1% 38.48 2031+ 62 286,038 2.8% 7,695 3.6% 26.91 1,741 4,267,083 43.8% 131,107$ 61.2% 30.73$ All Tenants Number of Leased Percent of Total Percent of ABR Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2021 308 676,867 7.0% 19,067 8.9% 28.17 2022 296 1,097,918 11.3% 24,567 11.5% 22.38 2023 312 1,491,433 15.3% 33,384 15.6% 22.38 2024 263 1,097,686 11.3% 26,842 12.5% 24.45 2025 254 1,241,924 12.8% 26,311 12.2% 21.19 2026 139 998,668 10.2% 18,347 8.6% 18.37 2027 72 337,222 3.5% 8,100 3.7% 24.02 2028 71 696,888 7.2% 15,820 7.4% 22.70 2029 56 576,637 5.9% 12,568 5.8% 21.79 2030 47 384,007 3.9% 8,654 4.1% 22.54 2031+ 86 1,141,020 11.6% 20,672 9.7% 18.12 1,904 9,740,270 100.0% 214,332$ 100.0% 22.00$ (1) Anchor tenants are leases equal to or greater than 15,000 square feet. (2) Does not assume exercise of renewal options. Lease Expiration Schedule Supplemental Disclosure Quarter Ended December 31, 2020 - 15 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 36 - 36 106 3 109 Gross Leasable Area (sq. ft.) 110,268 - 110,268 273,831 104,075 377,906 Initial Base Rent ($/sq. ft.) (1) 23.09$ -$ 23.09$ 25.63$ 12.63$ 22.05$ Tenant Improvements ($/sq. ft.) 7.88$ -$ 7.88$ 4.90$ 4.80$ 4.87$ Leasing Commissions ($/sq. ft.) 2.02$ -$ 2.02$ 2.98$ -$ 2.16$ Weighted Average Lease Term (Yrs.) (2) 7.5 - 7.5 6.8 17.4 9.7 Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 35 3 38 151 15 166 Gross Leasable Area (sq. ft.) 94,669 89,653 184,322 349,656 481,569 831,225 Initial Base Rent ($/sq. ft.) (1) 27.90$ 13.57$ 20.93$ 29.83$ 12.50$ 19.79$ Tenant Improvements ($/sq. ft.) -$ -$ -$ 0.61$ 0.26$ 0.41$ Leasing Commissions ($/sq. ft.) -$ -$ -$ 0.16$ -$ 0.07$ Weighted Average Lease Term (Yrs.) (2) 4.5 4.6 4.5 4.7 4.8 4.7 Total Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 71 3 74 257 18 275 Gross Leasable Area (sq. ft.) 204,937 89,653 294,590 623,487 585,644 1,209,131 Initial Base Rent ($/sq. ft.) (1) 25.31$ 13.57$ 21.74$ 27.99$ 12.53$ 20.50$ Tenant Improvements ($/sq. ft.) 4.24$ -$ 2.95$ 2.49$ 1.07$ 1.80$ Leasing Commissions ($/sq. ft.) 1.09$ -$ 0.76$ 1.40$ -$ 0.72$ Weighted Average Lease Term (Yrs.) (2) 6.1 4.6 5.6 5.6 7.0 6.3 (1) Initial Base Rent is on a cash basis and is the initial contractual monthly rent, annualized. (2) Does not assume exercise of renewal options. For the Three Months Ended December 31, 2020 For the Year Ended December 31, 2020 Leasing Summary Supplemental Disclosure Quarter Ended December 31, 2020 - 16 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 29 - 29 70 3 73 Comparative GLA (sq. ft.) (1) 67,021 - 67,021 163,769 104,075 267,844 Prior Base Rent ($/sq. ft.) (2) 26.93$ -$ 26.93$ 27.28$ 11.03$ 20.97$ Initial Base Rent ($/sq. ft.) 29.38$ -$ 29.38$ 30.56$ 12.63$ 23.60$ Percentage Change in Base Rents 9.1% - 9.1% 12.0% 14.5% 12.5% Tenant Improvements ($/sq. ft.) 12.97$ -$ 12.97$ 7.94$ 4.80$ 6.72$ Leasing Commissions ($/sq. ft.) 3.32$ -$ 3.32$ 3.70$ -$ 2.26$ Weighted Average Lease Term (Yrs.) (3) 8.0 - 8.0 7.6 17.4 11.4 Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 35 3 38 151 15 166 Comparative GLA (sq. ft.) 94,669 89,653 184,322 349,656 481,569 831,225 Prior Base Rent ($/sq. ft.) (2) 27.14$ 13.00$ 20.26$ 27.62$ 11.61$ 18.35$ Initial Base Rent ($/sq. ft.) 27.90$ 13.57$ 20.93$ 29.83$ 12.50$ 19.79$ Percentage Change in Base Rents 2.8% 4.4% 3.3% 8.0% 7.7% 7.9% Tenant Improvements ($/sq. ft.) -$ -$ -$ 0.61$ 0.26$ 0.41$ Leasing Commissions ($/sq. ft.) -$ -$ -$ 0.16$ -$ 0.07$ Weighted Average Lease Term (Yrs.) (3) 4.5 4.6 4.5 4.7 4.8 4.7 Total Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 64 3 67 221 18 239 Comparative GLA (sq. ft.) (1) 161,690 89,653 251,343 513,425 585,644 1,099,069 Prior Base Rent ($/sq. ft.) (2) 27.05$ 13.00$ 22.04$ 27.51$ 11.51$ 18.98$ Initial Base Rent ($/sq. ft.) 28.52$ 13.57$ 23.19$ 30.06$ 12.53$ 20.72$ Percentage Change in Base Rents 5.4% 4.4% 5.2% 9.3% 8.9% 9.1% Tenant Improvements ($/sq. ft.) 5.38$ -$ 3.46$ 2.95$ 1.07$ 1.95$ Leasing Commissions ($/sq. ft.) 1.38$ -$ 0.89$ 1.29$ -$ 0.60$ Weighted Average Lease Term (Yrs.) (3) 6.0 4.6 5.5 5.6 7.0 6.4 (1) Comparative GLA includes spaces that were vacant for less than 12 months, excluding spaces that were not leased at the time of acquisition. (2) Prior Base Rent is on a cash basis and is the final monthly rent paid, annualized, for the prior tenant or the prior lease that was renewed. (3) Does not assume exercise of renewal options. For the Three Months Ended December 31, 2020 For the Year Ended December 31, 2020 Same-Space Comparative Leasing Summary Supplemental Disclosure Quarter Ended December 31, 2020 - 17 -
(dollars in thousands) 12/31/20 09/30/20 06/30/20 03/31/20 % leased at beginning of quarter 96.8% 97.0% 97.7% 97.9% % billed at beginning of quarter 93.4% 94.2% 93.9% 94.4% ABR of new leases signed/not yet commenced - at beginning of quarter 6,855$ 5,890$ 7,041$ 6,482$ less: ABR of new leases commenced during quarter (929) (1,196) (844) (954) less: ABR of new leases dismissed during quarter - - (865) - plus: ABR of new leases signed during quarter 2,664 2,161 558 1,513 ABR of new leases signed/not yet commenced - at end of quarter 8,590$ 6,855$ 5,890$ 7,041$ % leased at end of quarter 96.8% 96.8% 97.0% 97.7% % billed at end of quarter 92.8% 93.4% 94.2% 93.9% ABR of new leases commenced during quarter - actual cash received 140$ 179$ 183$ 169$ Leased vs. Billed Summary Supplemental Disclosure Quarter Ended December 31, 2020 - 18 -
% Open (1) % Open (1) 2Q20 (2) 3Q20 (3) 4Q20 by ABR 2Q20 (2) 3Q20 (3) 4Q20 by ABR as of 7/27/20 as of 10/22/20 as of 2/18/21 as of 2/18/21 as of 7/27/20 as of 10/22/20 as of 2/18/21 as of 2/18/21 Tenant Type (1) Anchor & Non-Anchor (1) Grocery 98.7% 99.3% 99.2% 100.0% Anchors 89.4% 93.1% 93.8% 93.1% Drug Store 98.7% 99.0% 99.3% 100.0% Non-Anchors 77.5% 86.0% 90.5% 96.8% Automotive Supply 99.8% 99.9% 100.0% 100.0% Total 81.9% 88.7% 91.8% 95.4% Home Improvement 99.1% 99.7% 99.8% 100.0% Electronics 99.4% 99.8% 99.5% 100.0% Off-price 91.6% 99.3% 99.6% 100.0% National, Regional & Local (1) Pet Supply 91.9% 93.8% 90.7% 100.0% National 84.7% 92.9% 94.9% 95.3% Postal Services 88.9% 96.2% 95.4% 100.0% Regional 81.8% 94.9% 96.6% 97.3% Sporting Goods 78.8% 98.0% 81.2% 98.9% Local 76.5% 79.3% 84.5% 95.0% Financial Services 97.7% 99.2% 98.8% 99.7% Total 81.9% 88.7% 91.8% 95.4% Home Decor 56.9% 97.1% 99.0% 99.4% Wireless 86.0% 90.5% 93.2% 100.0% Local Services 83.0% 89.9% 93.0% 99.4% Medical & Dental 84.9% 92.3% 97.3% 98.6% Metro Market (1) Fast Food Restaurants 86.3% 92.0% 94.6% 98.0% Los Angeles 81.6% 88.8% 91.4% 94.4% Limited Service Restaurants 70.2% 78.9% 85.5% 93.9% Orange County 76.5% 84.6% 92.3% 95.5% General Retail 60.2% 87.0% 95.8% 96.7% San Diego 85.2% 85.8% 93.2% 94.0% Non-retail 91.2% 91.2% 97.3% 95.3% Southern California 80.9% 87.3% 91.9% 94.6% Full Service Restaurants 62.7% 63.0% 78.5% 94.7% San Francisco 83.7% 88.8% 91.3% 95.9% Salons 55.7% 75.7% 81.3% 92.9% Sacramento 86.2% 89.3% 93.5% 98.3% Education 64.0% 70.9% 87.2% 94.5% Northern California 83.9% 88.9% 91.6% 96.1% Apparel 83.7% 86.8% 100.5% 99.0% Seattle 80.5% 91.0% 92.4% 96.9% Fitness 38.2% 51.9% 56.5% 72.3% Portland 84.7% 90.0% 90.8% 95.1% Entertainment 59.6% 68.2% 64.8% 4.4% Pacific Northwest 82.4% 90.6% 91.7% 96.1% Total 81.9% 88.7% 91.8% 95.4% Total 81.9% 88.7% 91.8% 95.4% (1) Data is to the best of ROIC’s knowledge as of February 18, 2021. ROIC expects this data to change going forward. (2) Total billed base rent paid for 2Q20 as of February 18, 2021 is 86.9%. (3) Total billed base rent paid for 3Q20 as of February 18, 2021 is 91.2%. % of Billed Base Rent Paid (1)% of Billed Base Rent Paid (1) COVID-19 Update Supplemental Disclosure Quarter Ended December 31, 2020 - 19 -
Equity Research Coverage Bank of America Merrill Lynch Craig Schmidt 646.855.3640 Bank of Montreal John P. Kim 212.885.4115 Juan Sanabria 312.845.4074 BTIG Michael Gorman 212.738.6138 Capital One Securities, Inc. Chris Lucas 571.633.8151 Citi Michael Bilerman 212.816.1383 Katy McConnell 212.816.4471 D.A. Davidson & Co. Barry Oxford 212.240.9871 Green Street Vince Tibone 949.640.8780 J.P. Morgan Michael W. Mueller 212.622.6689 Jefferies Linda Tsai 212.778.8011 KeyBanc Capital Markets Todd Thomas 917.368.2286 Wells Fargo Tamara Fique 617.603.4262 Fixed Income Research Coverage J.P. Morgan Mark Streeter 212.834.5086 Ratings Agency Coverage Fitch Ratings, Inc. Zachary Klein 646.582.4049 Moody’s Investors Service Juan Acosta 212.553.4849 S&P Global Ratings Michael Souers 212.438.2508 Investor Information Retail Opportunity Investments Corp. www.roireit.net NASDAQ: ROIC 11250 El Camino Real, Suite 200 San Diego, CA 92130 Transfer Agent: Syed Hussaini Computershare syed.hussaini@computershare.com Investor Relations: Ashley Rubino arubino@roireit.net 858.255.4913 Supplemental Disclosure Quarter Ended December 31, 2020 - 20 -