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): April 25, 2022
(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 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§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 Exchange 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 April 25, 2022, Retail Opportunity Investments Corp. (the "Company") issued an earnings release announcing its financial results for the quarter ended March 31, 2022. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference. On April 25, 2022, in connection with this earnings release, the Company posted certain supplemental information regarding the Company's operations for the quarter ended March 31, 2022 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, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 25, 2022 | 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
Monday, April 25, 2022
Retail Opportunity Investments Corp. Reports
2022 First Quarter Results
San Diego, CA, April 25, 2022 - Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the three months ended March 31, 2022.
HIGHLIGHTS
•$11.6 million of net income attributable to common stockholders ($0.09 per diluted share)
•$36.2 million in Funds From Operations (FFO)(1) ($0.28 per diluted share)
•FFO guidance for 2022 raised ($1.04 - $1.10 per diluted share)
•7.5% increase in same-center cash net operating income (1Q‘22 vs. 1Q‘21)
•$60.0 million of grocery-anchored shopping center acquisitions lined up year-to-date
•97.2% portfolio lease rate at 3/31/22 (vs. 96.9% at 3/31/21)
•416,639 square feet of leases executed (2nd most active first quarter on record)
•15.8% increase in same-space cash base rents on new leases (vs. 4.9% increase in 1Q‘21)
•7.3% increase in cash base rents on renewed leases (vs. 3.2% increase in 1Q‘21)
•$23.4 million of common equity raised through ATM program year-to-date
•$23.5 million of mortgage debt retired
•6.4x net principal debt-to-annualized EBITDA ratio for 1Q‘22 (vs. 7.3x for 1Q‘21)
•$0.13 per share cash dividend declared
________________________________________
(1) A reconciliation of GAAP net income to FFO is provided at the end of this press release.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, “We are starting 2022 with strong momentum as tenant demand continues to propel our business forward. Capitalizing on the demand, we continue to maintain our portfolio lease rate above 97%, lease space at a near record pace, and achieve double-digit rent growth on same-space new leases. In terms of acquisitions, we are on track thus far with our stated objective for the year, having acquired $36.0 million to date, with another $24.0 million currently under contract. Additionally, our pipeline of potential additional acquisition opportunities continues to build.” Tanz added, “In light of our performance to date, together with the opportunities that are taking shape across our portfolio, we have raised our FFO guidance for 2022.”
FINANCIAL RESULTS SUMMARY
For the three months ended March 31, 2022, GAAP net income attributable to common stockholders was $11.6 million, or $0.09 per diluted share, as compared to GAAP net income attributable to common stockholders of $7.4 million, or $0.06 per diluted share, for the three months ended March 31, 2021. FFO for the first quarter of 2022 was $36.2 million, or $0.28 per diluted share, as compared to $31.0 million in FFO, or $0.24 per diluted share for the first quarter of 2021. 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 first quarter of 2022, same-center net operating income (NOI) was $49.5 million, as compared to $46.0 million in same-center NOI for the first quarter of 2021, representing a 7.5% increase. 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.
At March 31, 2022, ROIC had a total market capitalization of approximately $3.9 billion, including approximately $1.3 billion of principal debt outstanding. During the first quarter of 2022, ROIC retired two mortgage loans totaling $23.5 million. At March 31, 2022, 95.4% of ROIC’s principal debt outstanding was unsecured, including $10.0 million outstanding on its $600.0 million unsecured revolving credit facility. Additionally, ROIC’s interest coverage ratio and net principal debt-to-annualized EBITDA ratio for the first quarter of 2022 was 3.6 times and 6.4 times, respectively.
Year to date, ROIC has issued approximately 1.2 million shares of common stock through its ATM program, raising $23.4 million in gross proceeds, including issuing approximately 0.7 million shares of common stock during the first quarter, and approximately 0.5 million shares in the second quarter.
ACQUISITION SUMMARY
Year-to-date, ROIC has lined up three grocery-anchored shopping center acquisitions totaling $60.0 million, including the following two grocery-anchored shopping centers acquired subsequent to the first quarter totaling $36.0 million.
Powell Valley Junction
In April 2022, ROIC acquired Powell Valley Junction for $17.6 million. The shopping center is approximately 109,000 square feet and is anchored by Walmart Neighborhood Market. The property is located in Gresham, Oregon, within the Portland metropolitan area, and is currently 97.4% leased.
Olympia Square North
In April 2022, ROIC acquired Olympia Square North for $18.4 million. The shopping center is approximately 90,000 square feet and is anchored by Albertsons Supermarket. The property is located in Olympia, Washington, within the Seattle metropolitan area, and is currently 100% leased.
Additionally, ROIC currently has a contract to acquire a grocery-anchored shopping center, located in the San Francisco metropolitan area, for $24.0 million.
PROPERTY OPERATIONS SUMMARY
At March 31, 2022, ROIC’s portfolio was 97.2% leased. During the first quarter of 2022, ROIC executed 105 leases, totaling 416,639 square feet, including 39 new leases, totaling 94,164 square feet, achieving a 15.8% increase in same-space comparative base rent, and 66 renewed leases, totaling 322,475 square feet, achieving a 7.3% increase in base rent. ROIC reports same-space comparative base rent on a cash basis.
CASH DIVIDEND
On April 8, 2022, ROIC distributed a $0.13 per share cash dividend. On April 25, 2022, ROIC’s board of directors declared a cash dividend of $0.13 per share, payable on July 8, 2022 to stockholders of record on June 17, 2022.
2022 GUIDANCE SUMMARY
ROIC currently estimates that GAAP net income for 2022 will be within the range of $0.24 to $0.32 per diluted share, and FFO will be within the range of $1.04 to $1.10 per diluted share.
| Year Ended December 31, 2022 | |||||||||||||||||||||||
| Previous | Current | ||||||||||||||||||||||
| Low End | High End | Low End | High End | ||||||||||||||||||||
| (unaudited, amounts in thousands except per share and percentage data) | |||||||||||||||||||||||
| GAAP net income applicable to stockholders | $ | 27,530 | $ | 36,389 | $ | 29,501 | $ | 40,494 | |||||||||||||||
| Funds from operations (FFO) – diluted | $ | 134,640 | $ | 143,640 | $ | 137,280 | $ | 148,500 | |||||||||||||||
| GAAP net income per diluted share | $ | 0.22 | $ | 0.29 | $ | 0.24 | $ | 0.32 | |||||||||||||||
| FFO per diluted share | $ | 1.02 | $ | 1.08 | $ | 1.04 | $ | 1.10 | |||||||||||||||
| Key Drivers | |||||||||||||||||||||||
| General and administrative expenses | $ | 22,000 | $ | 21,000 | $ | 22,000 | $ | 21,000 | |||||||||||||||
| Straight-line rent | $ | (500) | $ | (500) | $ | 500 | $ | 500 | |||||||||||||||
| Amortization of above- and below-market rent | $ | 9,100 | $ | 9,100 | $ | 10,400 | $ | 10,400 | |||||||||||||||
| Bad debt | $ | 4,000 | $ | 2,000 | $ | 3,000 | $ | 2,000 | |||||||||||||||
| Acquisitions | $ | 100,000 | $ | 300,000 | $ | 100,000 | $ | 300,000 | |||||||||||||||
| Dispositions | $ | 50,000 | $ | 30,000 | $ | 50,000 | $ | 30,000 | |||||||||||||||
| Same-center cash NOI growth (vs. 2021) | 2.0 | % | 4.0 | % | 3.0 | % | 4.0 | % | |||||||||||||||
ROIC’s management will discuss guidance, and the underlying assumptions, on ROIC’s April 26, 2022 conference call. ROIC’s guidance is a forward-looking statement and is subject to risks and other factors noted elsewhere in this press release.
CONFERENCE CALL
ROIC will conduct a conference call and audio webcast to discuss its results on Tuesday, April 26, 2022 at 9:00a.m. Eastern Time / 6:00 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: 2148763. 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 12:00 p.m. Eastern Time on April 26, 2022 and will be available until 12:00 p.m. Eastern Time on May 3, 2022. To access the conference call recording, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use the Conference ID: 2148763. 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 March 31, 2022, ROIC owned 89 shopping centers encompassing approximately 10.2 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.
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)
| March 31, 2022 (unaudited) | December 31, 2021 | ||||||||||
| ASSETS | |||||||||||
| Real Estate Investments: | |||||||||||
| Land | $ | 917,222 | $ | 915,861 | |||||||
| Building and improvements | 2,353,984 | 2,350,294 | |||||||||
| 3,271,206 | 3,266,155 | ||||||||||
| Less: accumulated depreciation | 524,745 | 510,836 | |||||||||
| 2,746,461 | 2,755,319 | ||||||||||
| Mortgage note receivable | 4,853 | 4,875 | |||||||||
| Real Estate Investments, net | 2,751,314 | 2,760,194 | |||||||||
| Cash and cash equivalents | 17,867 | 13,218 | |||||||||
| Restricted cash | 2,486 | 2,145 | |||||||||
| Tenant and other receivables, net | 54,729 | 55,787 | |||||||||
| Deposits | 1,000 | — | |||||||||
| Acquired lease intangible assets, net | 49,805 | 50,139 | |||||||||
| Prepaid expenses | 3,794 | 5,337 | |||||||||
| Deferred charges, net | 24,544 | 25,017 | |||||||||
| Other assets | 16,675 | 17,007 | |||||||||
| Total assets | $ | 2,922,214 | $ | 2,928,844 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Term loan | $ | 298,980 | $ | 298,889 | |||||||
| Credit facility | 10,000 | — | |||||||||
| Senior Notes | 945,632 | 945,231 | |||||||||
| Mortgage notes payable | 61,546 | 85,354 | |||||||||
| Acquired lease intangible liabilities, net | 132,452 | 136,608 | |||||||||
| Accounts payable and accrued expenses | 47,389 | 48,598 | |||||||||
| Tenants’ security deposits | 7,368 | 7,231 | |||||||||
| Other liabilities | 40,566 | 40,580 | |||||||||
| Total liabilities | 1,543,933 | 1,562,491 | |||||||||
| 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; 123,732,344 and 122,685,266 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 12 | 12 | |||||||||
| Additional paid-in capital | 1,590,655 | 1,577,837 | |||||||||
| Dividends in excess of earnings | (302,279) | (297,801) | |||||||||
| Accumulated other comprehensive loss | (1,095) | (3,154) | |||||||||
| Total Retail Opportunity Investments Corp. stockholders’ equity | 1,287,293 | 1,276,894 | |||||||||
| Non-controlling interests | 90,988 | 89,459 | |||||||||
| Total equity | 1,378,281 | 1,366,353 | |||||||||
| Total liabilities and equity | $ | 2,922,214 | $ | 2,928,844 | |||||||
RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
| Three Months Ended March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Revenues | |||||||||||
| Rental revenue | $ | 75,037 | $ | 68,904 | |||||||
| Other income | 1,436 | 283 | |||||||||
| Total revenues | 76,473 | 69,187 | |||||||||
| Operating expenses | |||||||||||
| Property operating | 12,091 | 10,559 | |||||||||
| Property taxes | 8,520 | 8,606 | |||||||||
| Depreciation and amortization | 23,762 | 23,040 | |||||||||
| General and administrative expenses | 5,240 | 4,375 | |||||||||
| Other expense | 179 | 153 | |||||||||
| Total operating expenses | 49,792 | 46,733 | |||||||||
| Operating income | 26,681 | 22,454 | |||||||||
| Non-operating expenses | |||||||||||
| Interest expense and other finance expenses | (14,215) | (14,480) | |||||||||
| Net income | 12,466 | 7,974 | |||||||||
| Net income attributable to non-controlling interests | (825) | (559) | |||||||||
| Net Income Attributable to Retail Opportunity Investments Corp. | $ | 11,641 | $ | 7,415 | |||||||
| Earnings per share – basic and diluted | $ | 0.09 | $ | 0.06 | |||||||
| Dividends per common share | $ | 0.13 | $ | 0.11 | |||||||
CALCULATION OF FUNDS FROM OPERATIONS
(Unaudited)
(In thousands)
| Three Months Ended March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Net income attributable to ROIC | $ | 11,641 | $ | 7,415 | |||||||
| Plus: Depreciation and amortization | 23,762 | 23,040 | |||||||||
| Funds from operations – basic | 35,403 | 30,455 | |||||||||
| Net income attributable to non-controlling interests | 825 | 559 | |||||||||
| Funds from operations – diluted | $ | 36,228 | $ | 31,014 | |||||||
SAME-CENTER CASH NET OPERATING INCOME ANALYSIS
(Unaudited)
(In thousands, except number of shopping centers and percentages)
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| 2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||
| Number of shopping centers included in same-center analysis | 85 | 85 | ||||||||||||||||||||||||
| Same-center occupancy | 97.2 | % | 97.1 | % | 0.1 | % | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Base rents | $ | 51,227 | $ | 49,450 | $ | 1,777 | 3.6 | % | ||||||||||||||||||
| Percentage rent | 189 | 182 | 7 | 3.8 | % | |||||||||||||||||||||
| Recoveries from tenants | 17,576 | 16,713 | 863 | 5.2 | % | |||||||||||||||||||||
| Other property income | 1,030 | 109 | 921 | 845.0 | % | |||||||||||||||||||||
| Bad debt | (566) | (1,552) | 986 | (63.5) | % | |||||||||||||||||||||
| Total Revenues | 69,456 | 64,902 | 4,554 | 7.0 | % | |||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||
| Property operating expenses | 11,756 | 10,464 | 1,292 | 12.3 | % | |||||||||||||||||||||
| Property taxes | 8,206 | 8,409 | (203) | (2.4) | % | |||||||||||||||||||||
| Total Operating Expenses | 19,962 | 18,873 | 1,089 | 5.8 | % | |||||||||||||||||||||
| Same-Center Cash Net Operating Income | $ | 49,494 | $ | 46,029 | $ | 3,465 | 7.5 | % | ||||||||||||||||||
SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION
(Unaudited)
(In thousands)
| Three Months Ended March 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| GAAP operating income | $ | 26,681 | $ | 22,454 | |||||||
| Depreciation and amortization | 23,762 | 23,040 | |||||||||
| General and administrative expenses | 5,240 | 4,375 | |||||||||
| Other expense | 179 | 153 | |||||||||
| Straight-line rent | (451) | (18) | |||||||||
| Amortization of above- and below-market rent | (3,057) | (2,232) | |||||||||
Property revenues and other expenses (1) | (324) | (129) | |||||||||
| Total Company cash NOI | 52,030 | 47,643 | |||||||||
| Non same-center cash NOI | (2,536) | (1,614) | |||||||||
| Same-center cash NOI | $ | 49,494 | $ | 46,029 | |||||||
____________________
(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:
Nicolette O’Leary
Director of Investor Relations
858-677-0900
noleary@roireit.net
1st QUARTER 2022 SUPPLEMENTAL INFORMATION Retail Opportunity Investments Corp. 11250 El Camino Real, Suite 200 San Diego, CA 92130 www.roireit.net
Supplemental Disclosure Quarter Ended March 31, 2022 -2- Overview Our Company Retail Opportunity Investments Corp. (Nasdaq: ROIC), is a fully integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely populated, metropolitan markets across the West Coast. As of March 31, 2022, ROIC owned 89 shopping centers encompassing approximately 10.2 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 (rental revenue and other income), 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 and extraordinary items. Other REITs may use different methodologies for calculating cash NOI, and accordingly, the Company’s cash NOI may not be comparable to other REITs.
Supplemental Disclosure Quarter Ended March 31, 2022 -3- Page Financial Data Balance Sheets ..................................................................................................................................................................................... 4 Income Statements ................................................................................................................................................................................ 5 Funds From Operations ........................................................................................................................................................................ 6 Summary of Debt Outstanding ............................................................................................................................................................. 7 Selected Financial Analysis .................................................................................................................................................................. 9 Portfolio Data 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 Investor Information ....................................................................................................................................... 19 Table of Contents
Supplemental Disclosure Quarter Ended March 31, 2022 -4- Balance Sheets (unaudited, dollars in thousands, except par values and share amounts) 03/31/22 12/31/21 ASSETS: Real Estate Investments: Land $ 917,222 $ 915,861 Building and improvements 2,353,984 2,350,294 3,271,206 3,266,155 Less: accumulated depreciation 524,745 510,836 2,746,461 2,755,319 Mortgage note receivable 4,853 4,875 Real Estate Investments, net 2,751,314 2,760,194 Cash and cash equivalents 17,867 13,218 Restricted cash 2,486 2,145 Tenant and other receivables, net 54,729 55,787 Deposits 1,000 — Acquired lease intangible assets, net 49,805 50,139 Prepaid expenses 3,794 5,337 Deferred charges, net 24,544 25,017 Other assets 16,675 17,007 TOTAL ASSETS $ 2,922,214 $ 2,928,844 LIABILITIES: Term loan $ 298,980 $ 298,889 Credit facility 10,000 — Senior Notes 945,632 945,231 Mortgage notes payable 61,546 85,354 Acquired lease intangible liabilities, net 132,452 136,608 Accounts payable and accrued expenses 47,389 48,598 Tenants’ security deposits 7,368 7,231 Other liabilities 40,566 40,580 TOTAL LIABILITIES 1,543,933 1,562,491 EQUITY: Common stock, $0.0001 par value, 500,000,000 shares authorized 12 12 Additional paid-in capital 1,590,655 1,577,837 Dividends in excess of earnings (302,279) (297,801) Accumulated other comprehensive loss (1,095) (3,154) Total Retail Opportunity Investments Corp. stockholders’ equity 1,287,293 1,276,894 Non-controlling interests 90,988 89,459 TOTAL EQUITY 1,378,281 1,366,353 TOTAL LIABILITIES AND EQUITY $ 2,922,214 $ 2,928,844 The Company's Form 10-Q for the quarter ended March 31, 2022, and Form 10-K for the year ended December 31, 2021 should be read in conjunction with the above information.
Supplemental Disclosure Quarter Ended March 31, 2022 -5- Income Statements Three Months Ended 03/31/22 03/31/21 REVENUES: Rental revenue (1) $ 75,037 $ 68,904 Other income 1,436 283 TOTAL REVENUES 76,473 69,187 OPERATING EXPENSES: Property operating 12,091 10,559 Property taxes 8,520 8,606 Depreciation and amortization 23,762 23,040 General and administrative expenses 5,240 4,375 Other expense 179 153 TOTAL OPERATING EXPENSES 49,792 46,733 OPERATING INCOME 26,681 22,454 NON-OPERATING EXPENSES: Interest expense and other finance expenses (14,215) (14,480) NET INCOME 12,466 7,974 NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (825) (559) NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. $ 11,641 $ 7,415 NET INCOME PER COMMON SHARE - BASIC AND DILUTED $ 0.09 $ 0.06 Weighted average common shares outstanding - basic 122,410 117,740 Weighted average common shares outstanding - diluted 131,439 126,874 (1) RENTAL REVENUE Base rents $ 53,633 $ 50,907 Recoveries from tenants 18,524 17,325 Straight-line rent 451 18 Amortization of above- and below-market rent 3,057 2,232 Bad debt (628) (1,578) TOTAL RENTAL REVENUE $ 75,037 $ 68,904 (unaudited, in thousands, except per share amounts) The Company’s Form 10-Q for the quarters ended March 31, 2022 and March 31, 2021 should be read in conjunction with the above information.
Supplemental Disclosure Quarter Ended March 31, 2022 -6- Funds From Operations (unaudited, in thousands, except per share amounts) Three Months Ended 03/31/22 03/31/21 Funds from Operations (FFO) (1): Net income attributable to ROIC common stockholders $ 11,641 $ 7,415 Plus: Depreciation and amortization expense 23,762 23,040 FUNDS FROM OPERATIONS - BASIC 35,403 30,455 Net income attributable to non-controlling interests 825 559 FUNDS FROM OPERATIONS - DILUTED $ 36,228 $ 31,014 FUNDS FROM OPERATIONS PER SHARE - BASIC $ 0.29 $ 0.26 FUNDS FROM OPERATIONS PER SHARE - DILUTED $ 0.28 $ 0.24 Weighted average common shares outstanding - basic 122,410 117,740 Weighted average common shares outstanding - diluted 131,439 126,874 Common dividends per share $ 0.13 $ 0.11 FFO Payout Ratio 46.4 % 45.8 % Additional Disclosures: Non Cash Expense (Income) Straight line rent $ (451) $ (18) Above/below market rent amortization, net (3,057) (2,232) Non-cash interest expense (14) 73 Deferred financing costs and mortgage premiums, net 543 591 Stock based compensation 2,572 2,063 Capital Expenditures Tenant improvements $ 8,935 $ 3,336 Leasing commissions 439 355 Building improvements 34 132 Reimbursable property improvements 587 106 Pad and other development 3,878 2,551 Value enhancing tenant improvements 2,450 1,266 (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. The above does not purport to disclose all items required under GAAP.
Supplemental Disclosure Quarter Ended March 31, 2022 -7- Summary of Debt Outstanding (unaudited, dollars in thousands) Outstanding GAAP Maturity Percent of Balance Interest Rate Interest Rate Date Total Indebtedness Fixed Rate Debt Mortgage Debt: Fullerton Crossroads $ 26,000 4.73 % 3.82 % 4/6/2024 2.0 % Diamond Hills Plaza 35,225 3.55 % 3.61 % 10/1/2025 2.7 % Total Mortgage Debt 61,225 4.05 % 3.70 % 2.9 Years (WA) 4.7 % Unsecured Senior Notes: Senior Notes Due 2023 250,000 5.00 % 5.21 % 12/15/2023 18.9 % Senior Notes Due 2024 250,000 4.00 % 4.21 % 12/15/2024 18.9 % Senior Notes Due 2026 200,000 3.95 % 3.95 % 9/22/2026 15.1 % Senior Notes Due 2027 250,000 4.19 % 4.19 % 12/15/2027 18.9 % Total Unsecured Senior Notes 950,000 4.30 % 4.41 % 3.6 Years (WA) 71.8 % Term Loan: Interest rate swaps 100,000 3.59 % 3.59 % 8/31/2022 7.6 % Interest rate swaps 200,000 2.74 % 2.74 % 8/31/2022 15.1 % Total Term Loan 300,000 3.02 % 3.02 % 22.7 % Total Fixed Rate Debt 1,311,225 4.00 % 4.06 % 3.6 Years (WA) 99.2 % Variable Rate Debt Credit Facility 10,000 1.35 % 1.35 % 2/20/2024 (1) 0.80 % Term Loan 300,000 1/20/2025 Interest rate swaps - Term loan (300,000) Total Variable Rate Debt 10,000 1.35 % 1.35 % 2.8 Years (WA) 0.80 % TOTAL PRINCIPAL DEBT $ 1,321,225 3.98 % 4.04 % 3.4 Years (WA) 100.0 % Net unamortized premiums on mortgages 450 Net unamortized discounts on notes (1,970) Net unamortized deferred financing charges (2) (3,547) Total Debt $ 1,316,158 (1) Does not include extension options available to ROIC. (2) Net unamortized deferred financing charges for the Term Loan, Senior Notes and Mortgages.
Supplemental Disclosure Quarter Ended March 31, 2022 -8- Summary of Debt Outstanding, continued (unaudited, dollars in thousands) Summary of Principal Maturities Mortgage Principal Mortgage Principal Senior Total Principal Percentage of Year Payments due at Maturity Credit Facility (1) Term Loan Unsecured Notes Payments Debt Maturing 2022 $ 494 $ — $ — $ — $ — $ 494 0.1 % 2023 686 — — — 250,000 250,686 19.0 % 2024 708 26,000 10,000 — 250,000 286,708 21.7 % 2025 550 32,787 — 300,000 — 333,337 25.2 % 2026 — — — — 200,000 200,000 15.1 % 2027 — — — — 250,000 250,000 18.9 % Thereafter — — — — — — — % $ 2,438 $ 58,787 $ 10,000 $ 300,000 $ 950,000 $ 1,321,225 100.0 % Summary of Unencumbered/Encumbered Properties Number of Percentage Properties GLA of GLA Unencumbered properties 87 9,809,671 96.5 % Encumbered properties 2 359,290 3.5 % 89 10,168,961 100.0 % Summary of Unsecured Debt/Secured Debt Percentage of Total Amount Principal Debt Unsecured principal debt $ 1,260,000 95.4 % Secured principal debt 61,225 4.6 % Total Principal Debt $ 1,321,225 100.0 % (1) Does not include extension options available to ROIC.
Supplemental Disclosure Quarter Ended March 31, 2022 -9- Selected Financial Analysis (unaudited, in thousands, except per share amounts) 03/31/22 12/31/21 09/30/21 06/30/21 03/31/21 Debt coverage ratios, three months ending: Interest coverage ratio (EBITDA/interest expense) 3.6x 3.3x 3.3x 3.2x 3.2x Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 3.5x 3.2x 3.3x 3.2x 3.1x Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 6.4x 7.0x 6.6x 6.9x 7.3x Net principal debt (Total principal debt less cash & equivalents)/TTM EBITDA 6.8x 7.1x 6.6x 6.8x 7.2x Debt/book value ratios, at period end: Total principal debt/total book assets 45.2 % 45.6 % 46.1 % 46.7 % 47.4 % Total principal debt/undepreciated book value 38.3 % 38.8 % 39.4 % 39.9 % 40.7 % Secured principal debt/undepreciated book value 1.8 % 2.5 % 2.5 % 2.5 % 2.6 % Market capitalization calculations, at period end: Common shares outstanding 123,002 121,926 120,664 120,041 117,813 Operating partnership units (OP units) outstanding 8,694 8,542 8,542 8,542 8,867 Common stock price per share $ 19.39 $ 19.60 $ 17.42 $ 17.66 $ 15.87 Total equity market capitalization $ 2,553,590 $ 2,557,170 $ 2,250,772 $ 2,270,784 $ 2,010,409 Total principal debt 1,321,225 1,334,864 1,335,127 1,335,279 1,349,428 TOTAL MARKET CAPITALIZATION $ 3,874,815 $ 3,892,034 $ 3,585,899 $ 3,606,063 $ 3,359,837 Unsecured Senior Notes Financial Covenants: (1) Total debt to total assets not to exceed 60% 40.4 % 40.9 % 41.5 % 42.2 % 43.0 % Total secured debt to total assets not to exceed 40% 1.9 % 2.6 % 2.6 % 2.7 % 2.7 % Total unencumbered assets to total unsecured debt not to be less than 150% 250.1 % 246.1 % 242.4 % 238.7 % 233.7 % Consolidated income available for debt service to interest expense not to be less than 1.5:1 3.3x 3.2x 3.3x 3.2x 3.1x (1) Calculated in accordance with GAAP pursuant to underlying bond indentures.
Supplemental Disclosure Quarter Ended March 31, 2022 -10- Property Portfolio (dollars in thousands) Date Owned % Metro Area City State Acquired GLA Leased ABR (1) Major Tenants Los Angeles metro area Paramount Plaza * Paramount CA 12/22/09 95,062 100.0 % $ 2,006 Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy Claremont Promenade * Claremont CA 09/23/10 92,297 96.2 % 2,475 Super King Supermarket Gateway Village * Chino Hills CA 12/17/10 96,959 98.5 % 3,029 Sprouts Market Seabridge Marketplace * Oxnard CA 05/31/12 98,348 93.5 % 1,921 Safeway (Vons) Supermarket Glendora Shopping Center * Glendora CA 08/01/12 106,535 95.9 % 1,417 Albertsons Supermarket Redondo Beach Plaza * Redondo Beach CA 12/28/12 110,509 100.0 % 2,373 Safeway (Vons) Supermarket, Petco Diamond Bar Town Center * Diamond Bar CA 02/01/13 100,342 99.1 % 2,436 Walmart Neighborhood Market, Crunch Fitness Diamond Hills Plaza * Diamond Bar CA 04/22/13 139,505 97.5 % 4,028 H-Mart Supermarket, Planet Fitness Plaza de la Cañada * La Cañada Flintridge CA 12/13/13 100,425 97.3 % 2,630 Gelson’s Supermarket, TJ Maxx, Rite Aid Pharmacy Fallbrook Shopping Center * Los Angeles CA 06/13/14 755,299 99.2 % 13,564 Sprouts Market, Trader Joes, Kroger (Ralph’s) Supermarket(2), TJ Maxx Moorpark Town Center * Moorpark CA 12/03/14 133,547 91.6 % 1,995 Kroger (Ralph’s) Supermarket, CVS Pharmacy Ontario Plaza * Ontario CA 01/06/15 150,149 97.2 % 2,401 El Super Supermarket, Rite Aid Pharmacy Park Oaks Shopping Center * Thousand Oaks CA 01/06/15 110,092 90.5 % 2,586 Safeway (Vons) Supermarket, Dollar Tree Warner Plaza * Woodland Hills CA 12/31/15 110,918 92.9 % 4,248 Sprouts Market, Kroger (Ralph’s) Supermarket (2), Rite Aid Pharmacy (2) Magnolia Shopping Center * Santa Barbara CA 03/10/16 116,360 86.1 % 2,151 Kroger (Ralph’s) Supermarket Casitas Plaza Shopping Center * Carpinteria CA 03/10/16 105,118 99.2 % 1,903 Albertsons Supermarket, CVS Pharmacy Bouquet Center * Santa Clarita CA 04/28/16 148,903 97.4 % 3,689 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less North Ranch Shopping Center * Westlake Village CA 06/01/16 146,444 87.6 % 4,474 Kroger (Ralph’s) Supermarket, Trader Joe’s, Rite Aid Pharmacy, Petco The Knolls * Long Beach CA 10/03/16 52,021 96.2 % 1,382 Trader Joe’s, Pet Food Express The Terraces * Rancho Palos Verdes CA 03/17/17 172,922 92.6 % 3,557 Trader Joe’s, Marshall’s, LA Fitness Los Angeles metro area total 2,941,755 96.0 % $ 64,265 Seattle metro area Meridian Valley Plaza * Kent WA 02/01/10 51,597 100.0 % $ 888 Kroger (QFC) Supermarket The Market at Lake Stevens * Lake Stevens WA 03/11/10 74,130 100.0 % 1,683 Albertsons (Haggen) Supermarket Canyon Park Shopping Center * Bothell WA 07/29/11 123,592 99.1 % 2,596 PCC Community Markets, Rite Aid Pharmacy, Petco Hawks Prairie Shopping Center * Lacey WA 09/09/11 157,529 100.0 % 1,985 Safeway Supermarket, Dollar Tree, Big Lots The Kress Building * Seattle WA 09/30/11 74,616 73.5 % 1,438 IGA Supermarket, TJMaxx Gateway Shopping Center * Marysville WA 02/16/12 104,298 100.0 % 2,642 WinCo Foods (2), Rite Aid Pharmacy, Ross Dress For Less Aurora Square * Shoreline WA 2012/2014 108,558 100.0 % 2,014 Central Supermarket, Marshall’s Canyon Crossing * Puyallup WA 04/15/13 120,398 98.2 % 2,854 Safeway Supermarket Crossroads Shopping Center * Bellevue WA 2010/2013 473,131 97.9 % 12,057 Kroger (QFC) Supermarket, Bed Bath & Beyond, Dick’s Sporting Goods Bellevue Marketplace * Bellevue WA 12/10/15 113,758 100.0 % 3,445 Asian Family Market Four Corner Square * Maple Valley WA 12/21/15 119,531 100.0 % 2,588 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden Bridle Trails Shopping Center * Kirkland WA 10/17/16 110,257 100.0 % 2,427 Grocery Outlet Supermarket, Rite Aid (Bartell) Pharmacy, 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 96.0 % 2,935 WinCo Foods, LA Fitness, Dollar Tree, Petco North Lynnwood Shopping Center * Lynnwood WA 10/19/17 63,606 97.6 % 1,099 Grocery Outlet Supermarket, Dollar Tree Stadium Center * Tacoma WA 02/23/18 48,888 100.0 % 1,076 Thriftway Supermarket Summerwalk Village * Lacey WA 12/13/19 60,343 100.0 % 929 Walmart Neighborhood Market South Point Plaza Everett WA 11/10/21 189,960 97.2 % 2,235 Grocery Outlet Supermarket, Rite Aid Pharmacy, Hobby Lobby, Pep Boys Olympia West Center Olympia WA 12/06/21 69,212 100.0 % 1,539 Trader Joe’s, Petco Seattle metro area total 2,261,789 97.9 % $ 47,120 (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. * Denotes properties in same center pool for 1Q 2022.
Supplemental Disclosure Quarter Ended March 31, 2022 -11- Property Portfolio, continued (dollars in thousands) Date Owned % Metro Area City State Acquired GLA Leased ABR (1) Major Tenants Portland metro area Happy Valley Town Center * Happy Valley OR 07/14/10 138,397 100.0 % $ 3,907 New Seasons Market Wilsonville Old Town Square * Wilsonville OR 2010/2012 49,937 100.0 % 1,924 Kroger (Fred Meyer) Supermarket (2) Cascade Summit Town Square * West Linn OR 08/20/10 94,934 100.0 % 1,979 Safeway Supermarket, U.S. Postal Service Heritage Market Center * Vancouver WA 09/23/10 108,054 100.0 % 1,962 Safeway Supermarket, Dollar Tree Division Crossing * Portland OR 12/22/10 103,561 100.0 % 1,324 Rite Aid Pharmacy, Ross Dress For Less, Ace Hardware Halsey Crossing * Gresham OR 12/22/10 99,428 100.0 % 1,445 24 Hour Fitness, Dollar Tree Hillsboro Market Center * Hillsboro OR 11/23/11 156,021 100.0 % 2,695 Albertsons Supermarket, Dollar Tree, Ace Hardware Robinwood Shopping Center * West Linn OR 08/23/13 70,831 100.0 % 1,137 Walmart Neighborhood Market Tigard Marketplace * Tigard OR 02/18/14 136,889 100.0 % 2,100 H-Mart Supermarket, Bi-Mart Wilsonville Town Center * Wilsonville OR 12/11/14 167,829 98.2 % 2,947 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree Tigard Promenade * Tigard OR 07/28/15 88,043 97.7 % 1,490 Safeway Supermarket Sunnyside Village Square * Happy Valley OR 07/28/15 92,278 100.0 % 1,619 Grocery Outlet Supermarket, Snap Fitness, Ace Hardware Johnson Creek Center * Happy Valley OR 11/09/15 108,588 100.0 % 2,324 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 % 2,297 Kroger (QFC) Supermarket King City Plaza * King City OR 05/18/18 62,676 85.1 % 912 Grocery Outlet Supermarket Portland metro area total 1,752,042 99.2 % $ 33,010 San Francisco metro area Pleasant Hill Marketplace * Pleasant Hill CA 04/08/10 69,715 100.0 % $ 1,524 Total Wine and More, Buy Buy Baby, Basset Furniture Pinole Vista Shopping Center * Pinole CA 01/06/11 140,962 96.3 % 3,078 SaveMart (Lucky of CA) Supermarket, Planet Fitness Country Club Gate Center * Pacific Grove CA 07/08/11 109,331 98.7 % 2,357 SaveMart (Lucky of CA) Supermarket, Rite Aid Pharmacy Marlin Cove Shopping Center * Foster City CA 05/04/12 73,943 100.0 % 2,596 99 Ranch Market The Village at Novato * Novato CA 07/24/12 20,081 100.0 % 598 Trader Joe’s, Pharmaca Pharmacy Santa Teresa Village * San Jose CA 11/08/12 131,713 98.5 % 3,490 Grocery Outlet Supermarket, Dollar Tree, MedVet Silicon Valley Granada Shopping Center * Livermore CA 06/27/13 71,525 100.0 % 1,525 SaveMart (Lucky of CA) Supermarket Country Club Village * San Ramon CA 11/26/13 111,093 97.7 % 2,262 Walmart Neighborhood Market, CVS Pharmacy North Park Plaza * San Jose CA 04/30/14 76,697 100.0 % 2,770 H-Mart Supermarket Winston Manor * South San Francisco CA 01/07/15 49,852 91.0 % 1,636 Grocery Outlet Supermarket Jackson Square * Hayward CA 07/01/15 114,220 100.0 % 2,394 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness Gateway Centre * San Ramon CA 09/01/15 112,553 92.4 % 2,485 SaveMart (Lucky of CA) Supermarket, Walgreens Iron Horse Plaza * Danville CA 12/04/15 61,915 100.0 % 2,372 Lunardi’s Market Monterey Center * Monterey CA 07/14/16 25,626 93.7 % 1,025 Trader Joe’s, Pharmaca Pharmacy Santa Rosa Southside Shopping Center * Santa Rosa CA 03/24/17 88,606 100.0 % 1,728 REI, Cost Plus World Market, DSW Monta Loma Plaza * Mountain View CA 09/19/17 49,694 100.0 % 1,604 Safeway Supermarket Canyon Creek Plaza San Jose CA 09/01/21 64,662 97.4 % 2,128 New Seasons Market San Francisco metro area total 1,372,188 98.0 % $ 35,572 (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. * Denotes properties in same center pool for 1Q 2022.
Supplemental Disclosure Quarter Ended March 31, 2022 -12- Property Portfolio, continued (dollars in thousands) Date Owned % Metro Area City State Acquired GLA Leased ABR (1) Major Tenants Orange County metro area Santa Ana Downtown Plaza * Santa Ana CA 01/26/10 105,536 98.9 % $ 2,375 Kroger (Food 4 Less) Supermarket, Marshall’s Sycamore Creek * Corona CA 09/30/10 74,198 98.2 % 1,915 Safeway (Vons) Supermarket, CVS Pharmacy (2) Desert Springs Marketplace * Palm Desert CA 02/17/11 113,718 91.8 % 2,708 Kroger (Ralph’s) Supermarket, Rite Aid Pharmacy Cypress Center West * Cypress CA 12/04/12 112,080 100.0 % 2,222 Kroger (Ralph’s) Supermarket, Rite Aid Pharmacy Harbor Place Center * Garden Grove CA 12/28/12 122,636 97.9 % 1,915 AA Supermarket, Ross Dress For Less, AutoZone Mega Hub 5 Points Plaza * Huntington Beach CA 09/27/13 160,536 90.9 % 4,180 Trader Joe’s Peninsula Marketplace * Huntington Beach CA 10/15/13 95,416 99.0 % 2,496 Kroger (Ralph’s) Supermarket, Planet Fitness Fullerton Crossroads * Fullerton CA 10/11/17 219,785 98.9 % 3,623 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 96.3 % 3,001 Smart & Final Extra Supermarket Orange Country metro area total 1,092,946 96.8 % $ 24,435 San Diego metro area Marketplace Del Rio * Oceanside CA 01/03/11 183,787 88.6 % $ 3,363 Stater Brothers Supermarket, Walgreens Renaissance Towne Centre * San Diego CA 08/03/11 53,069 94.2 % 2,572 CVS Pharmacy Bay Plaza * San Diego CA 10/05/12 73,324 95.8 % 2,080 Seafood City Supermarket Bernardo Heights Plaza * Rancho Bernardo CA 02/06/13 37,729 100.0 % 969 Sprouts Market Hawthorne Crossings * San Diego CA 06/27/13 141,288 100.0 % 3,524 Mitsuwa Supermarket, Ross Dress For Less, Staples Creekside Plaza * Poway CA 02/28/14 133,914 92.2 % 3,127 Stater Brothers Supermarket, AMC Theatres Palomar Village Temecula CA 10/12/21 125,130 95.9 % 2,025 Albertsons Supermarket, CVS Pharmacy San Diego metro area total 748,241 94.3 % $ 17,660 Number of Owned % Metro Area Summary Centers GLA Leased ABR (1) Los Angeles 20 2,941,755 96.0 % $ 64,265 Seattle 19 2,261,789 97.9 % 47,120 Portland 17 1,752,042 99.2 % 33,010 San Francisco 17 1,372,188 98.0 % 35,572 Orange County 9 1,092,946 96.8 % 24,435 San Diego 7 748,241 94.3 % 17,660 TOTAL SHOPPING CENTER PORTFOLIO 89 10,168,961 97.2 % $ 222,062 (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. * Denotes properties in same center pool for 1Q 2022.
Supplemental Disclosure Quarter Ended March 31, 2022 -13- Three Months Ended 03/31/22 03/31/21 $ Change % Change Number of shopping centers included in same-center analysis (1) 85 85 Same-center occupancy 97.2 % 97.1 % 0.1 % REVENUES: Base rents $ 51,227 $ 49,450 $ 1,777 3.6 % Percentage rent 189 182 7 3.8 % Recoveries from tenants 17,576 16,713 863 5.2 % Other property income 1,030 109 921 845.0 % Bad debt (566) (1,552) 986 (63.5) TOTAL REVENUES 69,456 64,902 4,554 7.0 % OPERATING EXPENSES: Property operating expenses 11,756 10,464 1,292 12.3 % Property taxes 8,206 8,409 (203) (2.4) % TOTAL OPERATING EXPENSES 19,962 18,873 1,089 5.8 % SAME-CENTER CASH NET OPERATING INCOME $ 49,494 $ 46,029 $ 3,465 7.5 % SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION GAAP Operating Income $ 26,681 $ 22,454 Depreciation and amortization 23,762 23,040 General and administrative expenses 5,240 4,375 Other expense 179 153 Straight-line rent (451) (18) Amortization of above- and below-market rent (3,057) (2,232) Property revenues and other expenses (2) (324) (129) TOTAL COMPANY CASH NET OPERATING INCOME 52,030 47,643 Non Same-Center Cash NOI (2,536) (1,614) SAME-CENTER CASH NET OPERATING INCOME $ 49,494 $ 46,029 Same-Center Cash Net Operating Income Analysis (unaudited, dollars in thousands) (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.
Supplemental Disclosure Quarter Ended March 31, 2022 -14- Top Ten Tenants (dollars in thousands) Percent Number of Leased of Total Percent of Tenant Leases GLA Leased GLA ABR Total ABR 1 Albertsons / Safeway Supermarkets 19 948,195 9.6 % $ 12,195 5.5 % 2 Kroger Supermarkets 11 488,735 4.9 % 7,538 3.4 % 3 Rite Aid Pharmacy 14 263,390 2.7 % 3,413 1.5 % 4 Trader Joe’s 9 109,307 1.1 % 3,166 1.4 % 5 JP Morgan Chase 20 90,913 0.9 % 3,029 1.4 % 6 Grocery Outlet Supermarkets 10 225,004 2.3 % 3,027 1.4 % 7 SaveMart Supermarkets 4 187,639 1.9 % 2,995 1.3 % 8 Marshall’s / TJMaxx 6 178,195 1.8 % 2,840 1.3 % 9 Sprouts Markets 4 159,163 1.6 % 2,747 1.2 % 10 H-Mart Supermarkets 3 147,040 1.5 % 2,521 1.1 % Top 10 Tenants Total 100 2,797,581 28.3 % $ 43,471 19.5 % Other Tenants 1,857 7,078,879 71.7 % 178,591 80.5 % Total Portfolio 1,957 9,876,460 100.0 % $ 222,062 100.0 %
Supplemental Disclosure Quarter Ended March 31, 2022 -15- Lease Expiration Schedule (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. 2022 2 71,250 0.7 % $ 1,392 0.6 % $ 19.54 2023 25 723,122 7.3 % 12,031 5.4 % 16.64 2024 16 535,287 5.4 % 8,867 4.0 % 16.57 2025 23 753,966 7.6 % 10,466 4.7 % 13.88 2026 23 737,297 7.5 % 9,696 4.4 % 13.15 2027 13 411,456 4.2 % 4,218 1.9 % 10.25 2028 17 626,813 6.3 % 11,087 5.0 % 17.69 2029 12 438,785 4.4 % 6,988 3.1 % 15.93 2030 6 226,514 2.3 % 3,431 1.5 % 15.15 2031 9 276,035 2.8 % 4,963 2.2 % 17.98 2032+ 19 747,689 7.6 % 10,700 4.8 % 14.31 165 5,548,214 56.1 % $ 83,839 37.6 % $ 15.11 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. 2022 218 362,488 3.7 % $ 12,118 5.5 % $ 33.43 2023 296 637,619 6.5 % 20,485 9.2 % 32.13 2024 279 632,712 6.4 % 19,897 9.0 % 31.45 2025 254 601,738 6.1 % 18,842 8.5 % 31.31 2026 261 611,315 6.2 % 19,776 8.9 % 32.35 2027 185 490,655 5.0 % 14,585 6.6 % 29.73 2028 60 178,113 1.8 % 6,467 2.9 % 36.31 2029 52 159,931 1.6 % 5,229 2.4 % 32.69 2030 42 120,622 1.2 % 4,601 2.1 % 38.14 2031 58 202,128 2.0 % 6,121 2.8 % 30.28 2032+ 87 330,925 3.4 % 10,102 4.5 % 30.53 1,792 4,328,246 43.9 % $ 138,223 62.4 % $ 31.94 All Tenants Number of Leased Percent of Total Percent of ABR Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2022 220 433,738 4.4 % $ 13,510 6.1 % $ 31.15 2023 321 1,360,741 13.8 % 32,516 14.6 % 23.90 2024 295 1,167,999 11.8 % 28,764 13.0 % 24.63 2025 277 1,355,704 13.7 % 29,308 13.2 % 21.62 2026 284 1,348,612 13.7 % 29,472 13.3 % 21.85 2027 198 902,111 9.2 % 18,803 8.5 % 20.84 2028 77 804,926 8.1 % 17,554 7.9 % 21.81 2029 64 598,716 6.0 % 12,217 5.5 % 20.40 2030 48 347,136 3.5 % 8,032 3.6 % 23.14 2031 67 478,163 4.8 % 11,084 5.0 % 23.18 2032+ 106 1,078,614 11.0 % 20,802 9.3 % 19.28 1,957 9,876,460 100.0 % $ 222,062 100.0 % $ 22.48 (1) Anchor tenants are leases equal to or greater than 15,000 square feet. (2) Does not assume exercise of renewal options.
Supplemental Disclosure Quarter Ended March 31, 2022 -16- Leasing Summary For the Three Months Ended March 31, 2022 New Leases Non-Anchor Anchor Total Number of Leases 39 — 39 Gross Leasable Area (sq. ft.) 94,164 — 94,164 Initial Base Rent ($/sq. ft.) (1) $ 28.17 $ — $ 28.17 Tenant Improvements ($/sq. ft.) $ 0.05 $ — $ 0.05 Leasing Commissions ($/sq. ft.) $ 1.54 $ — $ 1.54 Weighted Average Lease Term (Yrs.) (2) 7.0 — 7.0 Renewals Non-Anchor Anchor Total Number of Leases 61 5 66 Gross Leasable Area (sq. ft.) 122,169 200,306 322,475 Initial Base Rent ($/sq. ft.) (1) $ 37.04 $ 12.19 $ 21.61 Tenant Improvements ($/sq. ft.) $ 0.04 $ — $ 0.02 Leasing Commissions ($/sq. ft.) $ — $ — $ — Weighted Average Lease Term (Yrs.) (2) 5.2 7.3 6.5 Total Non-Anchor Anchor Total Number of Leases 100 5 105 Gross Leasable Area (sq. ft.) 216,333 200,306 416,639 Initial Base Rent ($/sq. ft.) (1) $ 33.18 $ 12.19 $ 23.09 Tenant Improvements ($/sq. ft.) $ 0.05 $ — $ 0.02 Leasing Commissions ($/sq. ft.) $ 0.67 $ — $ 0.35 Weighted Average Lease Term (Yrs.) (2) 6.0 7.3 6.6 (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.
Supplemental Disclosure Quarter Ended March 31, 2022 -17- Same-Space Comparative Leasing Summary For the Three Months Ended March 31, 2022 New Leases Non-Anchor Anchor Total Comparative # of Leases 23 — 23 Comparative GLA (sq. ft.) (1) 56,965 — 56,965 Prior Base Rent ($/sq. ft.) (2) $ 26.80 $ — $ 26.80 Initial Base Rent ($/sq. ft.) $ 31.03 $ — $ 31.03 Percentage Change in Base Rents 15.8 % — % 15.8 % Tenant Improvements ($/sq. ft.) $ 0.09 $ — $ 0.09 Leasing Commissions ($/sq. ft.) $ 1.39 $ — $ 1.39 Weighted Average Lease Term (Yrs.) (3) 8.0 — 8.0 Renewals Non-Anchor Anchor Total Comparative # of Leases 61 5 66 Comparative GLA (sq. ft.) 122,169 200,306 322,475 Prior Base Rent ($/sq. ft.) (2) $ 34.52 $ 11.38 $ 20.14 Initial Base Rent ($/sq. ft.) $ 37.04 $ 12.19 $ 21.61 Percentage Change in Base Rents 7.3 % 7.2 % 7.3 % Tenant Improvements ($/sq. ft.) $ 0.04 $ — $ 0.02 Leasing Commissions ($/sq. ft.) $ — $ — $ — Weighted Average Lease Term (Yrs.) (3) 5.2 7.3 6.5 Total Non-Anchor Anchor Total Comparative # of Leases 84 5 89 Comparative GLA (sq. ft.) (1) 179,134 200,306 379,440 Prior Base Rent ($/sq. ft.) (2) $ 32.06 $ 11.38 $ 21.14 Initial Base Rent ($/sq. ft.) $ 35.13 $ 12.19 $ 23.02 Percentage Change in Base Rents 9.6 % 7.2 % 8.9 % Tenant Improvements ($/sq. ft.) $ 0.06 $ — $ 0.03 Leasing Commissions ($/sq. ft.) $ 0.44 $ — $ 0.21 Weighted Average Lease Term (Yrs.) (3) 6.1 7.3 6.7 (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.
Supplemental Disclosure Quarter Ended March 31, 2022 -18- Leased vs. Billed Summary (dollars in thousands) 03/31/22 12/31/21 09/30/21 06/30/21 % leased at beginning of quarter 97.5 % 97.4 % 96.9 % 96.9 % % billed at beginning of quarter 92.8 % 92.8 % 92.4 % 92.8 % ABR of new leases signed/not yet commenced - at beginning of quarter $ 10,601 $ 10,075 $ 10,420 $ 9,554 less: ABR of new leases commenced during quarter (2,019) (1,998) (1,890) (1,928) plus: ABR of new leases signed during quarter 1,021 2,524 1,545 2,794 ABR of new leases signed/not yet commenced - at end of quarter $ 9,603 $ 10,601 $ 10,075 $ 10,420 % leased at end of quarter 97.2 % 97.5 % 97.4 % 96.9 % % billed at end of quarter 92.6 % 92.8 % 92.8 % 92.4 % ABR of new leases commenced during quarter - actual cash received $ 380 $ 297 $ 298 $ 305
Supplemental Disclosure Quarter Ended March 31, 2022 -19- Investor Information Retail Opportunity Investments Corp. Investor Relations: Transfer Agent: www.roireit.net Nicolette O'Leary Syed Hussaini NASDAQ: ROIC noleary@roireit.net Computershare 11250 El Camino Real, Suite 200 858.255.4913 syed.hussaini@computershare.com San Diego, CA 92130 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 Baird Wes Golladay 216.737.7510 BTIG Michael Gorman 212.738.6138 Capital One Securities, Inc. Chris Lucas 571.633.8151 Citi Michael Bilerman 212.816.1383 Green Street Vince Tibone 949.640.8780 Paulina Rojas Schmidt 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 Raymond James RJ Milligan 908.447.4493 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. William Kuo 609.658.7945 Moody’s Investors Service Juan Acosta 212.553.4849 S&P Global Ratings Michael Souers 212.438.2508