roic-20200630
P6Mfalse00014076232020Q20001577230--12-31--12-3100014076232020-01-012020-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2020-01-012020-06-30xbrli:shares00014076232020-07-24xbrli:pure0001407623roic:RetailOpportunityInvestmentsCorpMember2020-01-012020-06-30iso4217:USD00014076232020-06-3000014076232019-12-31iso4217:USDxbrli:shares00014076232020-04-012020-06-3000014076232019-04-012019-06-3000014076232019-01-012019-06-300001407623us-gaap:CommonStockMember2019-12-310001407623us-gaap:AdditionalPaidInCapitalMember2019-12-310001407623us-gaap:RetainedEarningsMember2019-12-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001407623us-gaap:NoncontrollingInterestMember2019-12-310001407623us-gaap:CommonStockMember2020-01-012020-03-310001407623us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100014076232020-01-012020-03-310001407623us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001407623us-gaap:RetainedEarningsMember2020-01-012020-03-310001407623srt:OfficerMemberus-gaap:RetainedEarningsMember2020-01-012020-03-310001407623srt:OfficerMemberus-gaap:NoncontrollingInterestMember2020-01-012020-03-310001407623srt:OfficerMember2020-01-012020-03-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001407623us-gaap:CommonStockMember2020-03-310001407623us-gaap:AdditionalPaidInCapitalMember2020-03-310001407623us-gaap:RetainedEarningsMember2020-03-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001407623us-gaap:NoncontrollingInterestMember2020-03-3100014076232020-03-310001407623us-gaap:CommonStockMember2020-04-012020-06-300001407623us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001407623us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001407623us-gaap:RetainedEarningsMember2020-04-012020-06-300001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001407623us-gaap:CommonStockMember2020-06-300001407623us-gaap:AdditionalPaidInCapitalMember2020-06-300001407623us-gaap:RetainedEarningsMember2020-06-300001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001407623us-gaap:NoncontrollingInterestMember2020-06-300001407623us-gaap:CommonStockMember2018-12-310001407623us-gaap:AdditionalPaidInCapitalMember2018-12-310001407623us-gaap:RetainedEarningsMember2018-12-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001407623us-gaap:NoncontrollingInterestMember2018-12-3100014076232018-12-310001407623us-gaap:CommonStockMember2019-01-012019-03-310001407623us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100014076232019-01-012019-03-310001407623us-gaap:NoncontrollingInterestMember2019-01-012019-03-310001407623us-gaap:RetainedEarningsMember2019-01-012019-03-310001407623srt:OfficerMemberus-gaap:RetainedEarningsMember2019-01-012019-03-310001407623srt:OfficerMember2019-01-012019-03-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001407623us-gaap:CommonStockMember2019-03-310001407623us-gaap:AdditionalPaidInCapitalMember2019-03-310001407623us-gaap:RetainedEarningsMember2019-03-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001407623us-gaap:NoncontrollingInterestMember2019-03-3100014076232019-03-310001407623us-gaap:CommonStockMember2019-04-012019-06-300001407623us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001407623us-gaap:NoncontrollingInterestMember2019-04-012019-06-300001407623us-gaap:RetainedEarningsMember2019-04-012019-06-300001407623srt:OfficerMemberus-gaap:RetainedEarningsMember2019-04-012019-06-300001407623srt:OfficerMemberus-gaap:NoncontrollingInterestMember2019-04-012019-06-300001407623srt:OfficerMember2019-04-012019-06-300001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001407623us-gaap:CommonStockMember2019-06-300001407623us-gaap:AdditionalPaidInCapitalMember2019-06-300001407623us-gaap:RetainedEarningsMember2019-06-300001407623us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001407623us-gaap:NoncontrollingInterestMember2019-06-3000014076232019-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2020-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2019-12-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2020-04-012020-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2019-04-012019-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2019-01-012019-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2019-12-310001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-12-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-12-310001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-01-012020-03-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2020-01-012020-03-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2020-01-012020-03-310001407623srt:OfficerMemberroic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2020-01-012020-03-310001407623srt:OfficerMemberroic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-01-012020-03-310001407623srt:OfficerMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-01-012020-03-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-01-012020-03-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2020-03-310001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-03-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-03-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2020-03-310001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-04-012020-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2020-04-012020-06-300001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-04-012020-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2020-06-300001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-06-300001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2018-12-310001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2018-12-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2018-12-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2018-12-310001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-01-012019-03-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2019-01-012019-03-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2019-01-012019-03-310001407623srt:OfficerMemberroic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-01-012019-03-310001407623srt:OfficerMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-01-012019-03-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-01-012019-03-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2019-03-310001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-03-310001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-03-310001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2019-03-310001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-04-012019-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2019-04-012019-06-300001407623srt:OfficerMemberroic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2019-04-012019-06-300001407623srt:OfficerMemberroic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-04-012019-06-300001407623srt:OfficerMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-04-012019-06-300001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-04-012019-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMemberroic:LimitedPartnersCapitalMember2019-06-300001407623roic:ROICCapitalMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-06-300001407623us-gaap:AccumulatedOtherComprehensiveIncomeMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-06-300001407623roic:RetailOpportunityInvestmentsPartnershipLPMember2019-06-300001407623srt:MinimumMemberus-gaap:BuildingMember2020-01-012020-06-300001407623srt:MaximumMemberus-gaap:BuildingMember2020-01-012020-06-300001407623srt:MinimumMemberus-gaap:BuildingImprovementsMember2020-01-012020-06-300001407623srt:MaximumMemberus-gaap:BuildingImprovementsMember2020-01-012020-06-300001407623srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2020-01-012020-06-300001407623srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2020-01-012020-06-300001407623roic:OPUnitsMember2020-04-012020-06-300001407623roic:OPUnitsMember2019-04-012019-06-300001407623roic:OPUnitsMember2020-01-012020-06-300001407623roic:OPUnitsMember2019-01-012019-06-300001407623us-gaap:PerformanceSharesMember2020-04-012020-06-300001407623us-gaap:PerformanceSharesMember2019-04-012019-06-300001407623us-gaap:PerformanceSharesMember2020-01-012020-06-300001407623us-gaap:PerformanceSharesMember2019-01-012019-06-300001407623us-gaap:EmployeeStockOptionMember2020-04-012020-06-300001407623us-gaap:EmployeeStockOptionMember2019-04-012019-06-300001407623us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001407623us-gaap:EmployeeStockOptionMember2019-01-012019-06-300001407623us-gaap:PerformanceSharesMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-04-012020-06-300001407623us-gaap:PerformanceSharesMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-04-012019-06-300001407623us-gaap:PerformanceSharesMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-01-012020-06-300001407623us-gaap:PerformanceSharesMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-01-012019-06-300001407623us-gaap:EmployeeStockOptionMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-04-012020-06-300001407623us-gaap:EmployeeStockOptionMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-04-012019-06-300001407623us-gaap:EmployeeStockOptionMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2020-01-012020-06-300001407623us-gaap:EmployeeStockOptionMemberroic:RetailOpportunityInvestmentsPartnershipLPMember2019-01-012019-06-30roic:segment0001407623roic:CasitasPlazaShoppingCenterMemberus-gaap:NotesPayableOtherPayablesMember2020-06-300001407623roic:CasitasPlazaShoppingCenterMemberus-gaap:NotesPayableOtherPayablesMember2019-12-310001407623us-gaap:NotesPayableOtherPayablesMemberroic:RiverstoneMarketplaceMember2020-06-300001407623us-gaap:NotesPayableOtherPayablesMemberroic:RiverstoneMarketplaceMember2019-12-310001407623us-gaap:NotesPayableOtherPayablesMemberroic:FullertonCrossroadsMember2020-06-300001407623us-gaap:NotesPayableOtherPayablesMemberroic:FullertonCrossroadsMember2019-12-310001407623roic:DiamondHillsPlazaMemberus-gaap:NotesPayableOtherPayablesMember2020-06-300001407623roic:DiamondHillsPlazaMemberus-gaap:NotesPayableOtherPayablesMember2019-12-310001407623us-gaap:NotesPayableOtherPayablesMember2020-06-300001407623us-gaap:NotesPayableOtherPayablesMember2019-12-310001407623roic:TermLoanAgreementMember2020-06-300001407623roic:TermLoanAgreementMember2019-12-310001407623roic:TermLoanAgreementMember2019-12-200001407623roic:TermLoanAgreementMemberus-gaap:FederalFundsEffectiveSwapRateMember2020-01-012020-06-300001407623roic:TermLoanAgreementMemberus-gaap:EurodollarMember2020-01-012020-06-300001407623us-gaap:RevolvingCreditFacilityMember2020-06-300001407623us-gaap:RevolvingCreditFacilityMember2019-12-310001407623us-gaap:RevolvingCreditFacilityMember2019-12-20roic:credit_facility_extension0001407623us-gaap:RevolvingCreditFacilityMember2019-12-202019-12-200001407623us-gaap:RevolvingCreditFacilityMemberroic:AccordionFeatureMember2020-06-300001407623us-gaap:FederalFundsEffectiveSwapRateMemberus-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001407623us-gaap:RevolvingCreditFacilityMemberus-gaap:EurodollarMember2020-01-012020-06-300001407623us-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001407623roic:TermLoanAgreementMember2020-04-012020-06-300001407623roic:TermLoanAgreementMember2020-01-012020-06-300001407623us-gaap:RevolvingCreditFacilityMember2020-04-012020-06-300001407623roic:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2020-06-300001407623roic:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2019-12-310001407623roic:SeniorNotesDue2027Memberus-gaap:SeniorNotesMember2017-11-100001407623roic:SeniorNotesDue2026Memberus-gaap:SeniorNotesMember2020-06-300001407623roic:SeniorNotesDue2026Memberus-gaap:SeniorNotesMember2019-12-310001407623roic:SeniorNotesDue2026Memberus-gaap:SeniorNotesMember2016-07-260001407623roic:SeniorNotes2024Memberus-gaap:SeniorNotesMember2020-06-300001407623roic:SeniorNotes2024Memberus-gaap:SeniorNotesMember2019-12-310001407623roic:SeniorNotes2024Memberus-gaap:SeniorNotesMember2014-12-030001407623roic:SeniorNotes2023Memberus-gaap:SeniorNotesMember2020-06-300001407623roic:SeniorNotes2023Memberus-gaap:SeniorNotesMember2019-12-310001407623roic:SeniorNotes2023Memberus-gaap:SeniorNotesMember2013-12-090001407623roic:SalesAgreementMember2020-02-200001407623roic:SalesAgreementMember2020-01-012020-06-3000014076232013-07-310001407623roic:EquityIncentivePlanMember2018-04-250001407623us-gaap:RestrictedStockMember2020-01-012020-06-300001407623roic:VestingOnJanuary12023Memberroic:PerformanceBasedRestrictedStockMember2020-01-012020-06-300001407623us-gaap:RestrictedStockMember2019-12-310001407623us-gaap:RestrictedStockMember2020-06-300001407623roic:VestingonJanuary12022Memberroic:LTIPUnitsMember2020-06-300001407623roic:LTIPUnitsMember2020-06-300001407623us-gaap:CommonStockMember2020-01-012020-06-300001407623roic:OPUnitsMember2020-06-300001407623roic:SeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel3Member2020-06-300001407623roic:SeniorNotesDue2026Memberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel3Member2020-06-300001407623us-gaap:FairValueInputsLevel2Memberroic:SeniorNotes2024Memberus-gaap:SeniorNotesMember2020-06-300001407623us-gaap:FairValueInputsLevel2Memberroic:SeniorNotes2023Memberus-gaap:SeniorNotesMember2020-06-300001407623us-gaap:FairValueInputsLevel3Member2020-06-300001407623srt:WeightedAverageMember2020-01-012020-06-300001407623roic:InterestRateSwapMaturingAugustThirtyFirstTwentyTwentyTwoMemberroic:BankOfMontrealMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001407623roic:InterestRateSwapMaturingAugustThirtyFirstTwentyTwentyTwoMemberroic:USBankMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001407623roic:InterestRateSwapMaturingAugustThirtyFirstTwentyTwentyTwoMemberroic:RegionsBankMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001407623roic:InterestRateSwapMaturingAugustThirtyFirstTwentyTwentyTwoMemberroic:RoyalBankofCanadaMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001407623us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-06-300001407623us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001407623us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-300001407623us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001407623us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2019-12-310001407623us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001407623us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2019-12-310001407623us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001407623us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-06-300001407623us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001407623roic:TerranomicsCrossroadsAssociatesLPMemberAndSARMFivePointsLLCMember2013-09-012013-09-3000014076232014-12-012017-03-310001407623us-gaap:GeneralAndAdministrativeExpenseMemberroic:RelatedpartyLeaseAgreementsMember2019-04-012019-06-300001407623us-gaap:GeneralAndAdministrativeExpenseMemberroic:RelatedpartyLeaseAgreementsMember2020-04-012020-06-300001407623us-gaap:GeneralAndAdministrativeExpenseMemberroic:RelatedpartyLeaseAgreementsMember2019-01-012019-06-300001407623us-gaap:GeneralAndAdministrativeExpenseMemberroic:RelatedpartyLeaseAgreementsMember2020-01-012020-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2020
 
OR
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____

Commission file number 001-33749

RETAIL OPPORTUNITY INVESTMENTS CORP.
RETAIL OPPORTUNITY INVESTMENTS PARTNERSHIP, LP
(Exact name of registrant as specified in its charter)
Maryland (Retail Opportunity Investments Corp.)26-0500600 (Retail Opportunity Investments Corp.)
Delaware (Retail Opportunity Investments Partnership, LP)94-2969738 (Retail Opportunity Investments Partnership, LP)
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
11250 El Camino Real
Suite 200
San Diego,California
92130
(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)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
Retail Opportunity Investments Corp.YesNo
Retail Opportunity Investments Partnership, LPYesNo

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Retail Opportunity Investments Corp.Yes No
Retail Opportunity Investments Partnership, LPYes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 

Retail Opportunity Investments Corp.
Large accelerated filer Accelerated filerNon-accelerated filer Smaller reporting company
Emerging growth company 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.
 
Retail Opportunity Investments Partnership, LP
Large accelerated filerAccelerated filerNon-accelerated filer Smaller reporting company
Emerging growth company 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.
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Retail Opportunity Investments Corp.Yes  No
Retail Opportunity Investments Partnership, LPYes No

Securities registered pursuant to Section 12(b) of the Act:
Name of RegistrantTitle of each classTrading SymbolName of each exchange on which registered
Retail Opportunity Investments Corp.Common Stock, par value $0.0001 per shareROICNASDAQ
Retail Opportunity Investments Partnership, LPNoneNoneNone

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 117,929,055 shares of common stock, par value $0.0001 per share, of Retail Opportunity Investments Corp. outstanding as of July 24, 2020.
 



EXPLANATORY PARAGRAPH
 
This report combines the quarterly reports on Form 10-Q for the quarter ended June 30, 2020 of Retail Opportunity Investments Corp., a Maryland corporation (“ROIC”), and Retail Opportunity Investments Partnership, LP, a Delaware limited partnership (the “Operating Partnership”), of which ROIC is the parent company and general partner. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “the Company,” “we,” “us,” “our,” or “our company” refer to ROIC together with its consolidated subsidiaries, including the Operating Partnership. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “the Operating Partnership” refer to Retail Opportunity Investments Partnership, LP together with its consolidated subsidiaries.
 
ROIC operates as a real estate investment trust and as of June 30, 2020, ROIC owned an approximate 92.6% partnership interest in the Operating Partnership. Retail Opportunity Investments GP, LLC, ROIC’s wholly-owned subsidiary, is the sole general partner of the Operating Partnership, and as the parent company, ROIC has the full and complete authority over the Operating Partnership’s day-to-day management and control.
 
The Company believes that combining the quarterly reports on Form 10-Q of ROIC and the Operating Partnership into a single report will result in the following benefits:
 
facilitate a better understanding by the investors of ROIC and the Operating Partnership by enabling them to view the business as a whole in the same manner as management views and operates the business;

remove duplicative disclosures and provide a more straightforward presentation in light of the fact that a substantial portion of the disclosure applies to both ROIC and the Operating Partnership; and

create time and cost efficiencies through the preparation of one combined report instead of two separate reports.

Management operates ROIC and the Operating Partnership as one enterprise. The management of ROIC and the Operating Partnership are the same.
 
There are a few differences between ROIC and the Operating Partnership, which are reflected in the disclosures in this report. The Company believes it is important to understand the differences between ROIC and the Operating Partnership in the context of how these entities operate as an interrelated consolidated company. ROIC is a real estate investment trust, whose only material asset is its ownership of direct or indirect partnership interests in the Operating Partnership and membership interest in Retail Opportunity Investments GP, LLC, which is the sole general partner of the Operating Partnership. As a result, ROIC does not conduct business itself, other than acting as the parent company of the Operating Partnership and issuing equity from time to time. The Operating Partnership holds substantially all the assets of the Company and directly or indirectly holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by ROIC, which are contributed to the Operating Partnership, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s incurrence of indebtedness (directly and through subsidiaries) or through the issuance of operating partnership units (“OP Units”).
 
Non-controlling interests is the primary area of difference between the Consolidated Financial Statements for ROIC and the Operating Partnership. The OP Units in the Operating Partnership that are not owned by ROIC are accounted for as partners’ capital in the Operating Partnership’s financial statements and as non-controlling interests in ROIC’s financial statements. Accordingly, this report presents the Consolidated Financial Statements for ROIC and the Operating Partnership separately, as required, as well as Earnings Per Share / Earnings Per Unit and Capital of the Operating Partnership.
 
This report also includes separate Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources, Item 4. Controls and Procedures sections and separate Chief Executive Officer and Chief Financial Officer certifications for each of ROIC and the Operating Partnership as reflected in Exhibits 31 and 32.




TABLE OF CONTENTS

 
 




PART I. FINANCIAL INFORMATION
 
Item 1. Financial Statements

RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Balance Sheets
(In thousands, except share data) 
 June 30, 2020
(unaudited)
December 31, 2019
ASSETS  
Real Estate Investments:  
Land$881,657  $879,540  
Building and improvements2,262,445  2,252,301  
 3,144,102  3,131,841  
Less:  accumulated depreciation425,009  390,916  
2,719,093  2,740,925  
Mortgage note receivable5,000  13,000  
Real Estate Investments, net2,724,093  2,753,925  
Cash and cash equivalents151,372  3,800  
Restricted cash1,686  1,658  
Tenant and other receivables, net52,805  45,821  
Acquired lease intangible assets, net55,419  59,701  
Prepaid expenses1,642  3,169  
Deferred charges, net25,410  27,652  
Other assets17,706  18,031  
Total assets$3,030,133  $2,913,757  
LIABILITIES AND EQUITY  
Liabilities:  
Term loan$298,495  $298,330  
Credit facility230,633  80,743  
Senior Notes943,564  942,850  
Mortgage notes payable87,020  87,523  
Acquired lease intangible liabilities, net136,889  144,757  
Accounts payable and accrued expenses12,333  17,562  
Tenants’ security deposits6,970  7,177  
Other liabilities47,408  42,987  
Total liabilities1,763,312  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; 117,640,038 and 116,496,016 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively
12  12  
Additional paid-in capital1,488,780  1,481,466  
Dividends in excess of earnings(304,678) (297,998) 
Accumulated other comprehensive loss(11,648) (4,132) 
Total Retail Opportunity Investments Corp. stockholders’ equity1,172,466  1,179,348  
Non-controlling interests94,355  112,480  
Total equity1,266,821  1,291,828  
Total liabilities and equity$3,030,133  $2,913,757  
See accompanying notes to consolidated financial statements.
- 1 -


RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
(In thousands, except share data)

 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Revenues  
Rental revenue$65,734  $71,821  $139,931  $147,188  
Other income818  1,109  1,493  1,795  
Total revenues66,552  72,930  141,424  148,983  
Operating expenses
Property operating9,286  10,710  19,890  21,771  
Property taxes8,766  7,832  16,755  16,070  
Depreciation and amortization24,114  24,443  48,392  49,204  
General and administrative expenses3,929  4,950  7,873  9,226  
Other expense296  1,224  360  1,317  
Total operating expenses46,391  49,159  93,270  97,588  
Gain on sale of real estate  180    2,818  
Operating income20,161  23,951  48,154  54,213  
Non-operating expenses  
Interest expense and other finance expenses(15,125) (15,605) (29,982) (31,284) 
Net income5,036  8,346  18,172  22,929  
Net income attributable to non-controlling interests(389) (761) (1,523) (2,094) 
Net Income Attributable to Retail Opportunity Investments Corp.$4,647  $7,585  $16,649  $20,835  
Earnings per share – basic and diluted$0.04  $0.07  $0.14  $0.18  
Dividends per common share$  $0.1970  $0.2000  $0.3940  
Comprehensive income:
Net income$5,036  $8,346  $18,172  $22,929  
Other comprehensive income (loss):
Unrealized swap derivative loss arising during the period(961) (4,815) (10,016) (7,423) 
Reclassification adjustment for amortization of interest expense included in net income1,225  (263) 1,563  (465) 
Other comprehensive income (loss):264  (5,078) (8,453) (7,888) 
Comprehensive income5,300  3,268  9,719  15,041  
Comprehensive loss (income) attributable to non-controlling interests548  (761) (586) (2,094) 
Comprehensive income attributable to Retail Opportunity Investments Corp.$5,848  $2,507  $9,133  $12,947  
See accompanying notes to consolidated financial statements.
- 2 -



RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Equity
(Unaudited)
(In thousands, except share data)


 Common StockAdditional
paid-in capital
Accumulated dividends in excess of earningsAccumulated
other
comprehensive loss
Non-
controlling
interests
Equity
 SharesAmount
Balance at December 31, 2019116,496,016  $12  $1,481,466  $(297,998) $(4,132) $112,480  $1,291,828  
Shares issued under the Equity Incentive Plan428,170  —    —  —  —    
Shares withheld for employee taxes(128,614) —  (2,272) —  —  —  (2,272) 
Cancellation of restricted stock(1,000) —  —  —  —  —  —  
Stock based compensation expense—  —  1,636  —  —  220  1,856  
Cash redemption for non-controlling interests—  —  —  —  —  (1,999) (1,999) 
Adjustment to non-controlling interests ownership in Operating Partnership—  —  652  —  —  (652) —  
Repurchase of common stock(673,868) —  (8,846) —  —  —  (8,846) 
Registration expenditures—  —  (90) —  —  —  (90) 
Cash dividends ($0.2000 per share)
—  —  —  (23,273) —  (2,187) (25,460) 
Dividends payable to officers—  —  —  (56) —  (33) (89) 
Net income attributable to Retail Opportunity Investments Corp.—  —  —  12,002  —  —  12,002  
Net income attributable to non-controlling interests—  —  —  —  —  1,134  1,134  
Other comprehensive loss—  —  —  —  (8,717) —  (8,717) 
Balance at March 31, 2020116,120,704  $12  $1,472,546  $(309,325) $(12,849) $108,963  $1,259,347  
Cancellation of restricted stock(2,499) —  —  —  —  —  —  
Stock based compensation expense—  —  2,081  —  —  87  2,168  
Redemption of OP Units1,521,833  —  15,211  —  —  (15,211) —  
Adjustment to non-controlling interests ownership in Operating Partnership—  —  (1,064) —  —  1,064  —  
Registration expenditures—  —  6  —  —  —  6  
Net income attributable to Retail Opportunity Investments Corp.—  —  —  4,647  —  —  4,647  
Net income attributable to non-controlling interests—  —  —  —  —  389  389  
Other comprehensive gain (loss)—  —  —  —  1,201  (937) 264  
Balance at June 30, 2020117,640,038  $12  $1,488,780  $(304,678) $(11,648) $94,355  $1,266,821  
- 3 -



RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Equity (continued)
(Unaudited)
(In thousands, except share data)

Common StockAdditional
paid-in capital
Accumulated dividends in excess of earningsAccumulated
other
comprehensive income (loss)
Non-
controlling
interests
Equity
SharesAmount
Balance at December 31, 2018113,992,837  $11  $1,441,080  $(256,438) $3,561  $120,214  $1,308,428  
Shares issued under the Equity Incentive Plan445,022  —    —  —  —    
Shares withheld for employee taxes(125,072) —  (1,986) —  —  —  (1,986) 
Cancellation of restricted stock(999) —  —  —  —  —  —  
Stock based compensation expense—  —  1,651  —  —  —  1,651  
Cash redemption for non-controlling interests—  —  —  —  —  (1,246) (1,246) 
Adjustment to non-controlling interests ownership in Operating Partnership—  —  56  —  —  (56) —  
Registration expenditures—  —  (47) —  —  —  (47) 
Cash dividends ($0.1970 per share)
—  —  —  (22,519) —  (2,247) (24,766) 
Dividends payable to officers—  —  —  142  —  —  142  
Net income attributable to Retail Opportunity Investments Corp.—  —  —  13,250  —  —  13,250  
Net income attributable to non-controlling interests—  —  —  —  —  1,333  1,333  
Other comprehensive loss—  —  —  —  (2,810) —  (2,810) 
Balance at March 31, 2019114,311,788  $11  $1,440,754  $(265,565) $751  $117,998  $1,293,949  
Cancellation of restricted stock(3,999) —  —  —  —  —  —  
Stock based compensation expense—  —  1,852  —  —  387  2,239  
Adjustment to non-controlling interests ownership in Operating Partnership—  —  592  —  —  (592) —  
Registration expenditures—  —  (33) —  —  —  (33) 
Cash dividends ($0.1970 per share)
—  —  —  (22,517) —  (2,247) (24,764) 
Dividends payable to officers—  —  —  9  —  (74) (65) 
Net income attributable to Retail Opportunity Investments Corp.—  —  —  7,585  —  —  7,585  
Net income attributable to non-controlling interests—  —  —  —  —  761  761  
Other comprehensive loss—  —  —  —  (5,078) —  (5,078) 
Balance at June 30, 2019114,307,789  $11  $1,443,165  $(280,488) $(4,327) $116,233  $1,274,594  
 


See accompanying notes to consolidated financial statements.
- 4 -


RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Cash Flow
(Unaudited)
(In thousands)
 Six Months Ended June 30,
 20202019
CASH FLOWS FROM OPERATING ACTIVITIES  
Net income$18,172  $22,929  
Adjustments to reconcile net income to cash provided by operating activities:  
Depreciation and amortization48,392  49,204  
Amortization of deferred financing costs and mortgage premiums, net1,055  1,033  
Straight-line rent adjustment(230) (1,726) 
Amortization of above and below market rent(8,000) (9,938) 
Amortization relating to stock based compensation4,024  3,890  
Provisions for tenant credit losses6,611  1,274  
Other noncash interest expense146  377  
Gain on sale of real estate  (2,818) 
Change in operating assets and liabilities:  
Tenant and other receivables(13,480) 2,060  
Prepaid expenses1,527  2,673  
Accounts payable and accrued expenses(4,060) (1,037) 
Other assets and liabilities, net(5,191) (5,540) 
Net cash provided by operating activities48,966  62,381  
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of real estate  16,305  
Improvements to properties(19,536) (18,863) 
Proceeds on repayment of mortgage note receivable8,000    
Net cash used in investing activities(11,536) (2,558) 
CASH FLOWS FROM FINANCING ACTIVITIES  
Principal repayments on mortgages(284) (273) 
Proceeds from draws on credit facility160,000  43,000  
Payments on credit facility(10,500) (48,000) 
Redemption of OP Units(1,999) (1,246) 
Distributions to OP Unitholders(2,187) (4,494) 
Deferred financing and other costs(5)   
Repurchase of common stock(8,846)   
Registration expenditures(339) (65) 
Dividends paid to common shareholders(23,398) (45,166) 
Shares withheld for employee taxes(2,272) (1,986) 
Net cash provided by (used in) financing activities110,170  (58,230) 
Net increase in cash, cash equivalents and restricted cash147,600  1,593  
Cash, cash equivalents and restricted cash at beginning of period5,458  7,449