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): October 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 October 25, 2022, Retail Opportunity Investments Corp. (the "Company") issued an earnings release announcing its financial results for the quarter ended September 30, 2022. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference. On October 25, 2022, in connection with this earnings release, the Company posted certain supplemental information regarding the Company's operations for the quarter ended September 30, 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: October 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
Tuesday, October 25, 2022
Retail Opportunity Investments Corp. Reports
2022 Third Quarter Results
San Diego, CA, October 25, 2022 - Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the three and nine months ended September 30, 2022.
HIGHLIGHTS
•$18.5 million of net income attributable to common stockholders ($0.15 per diluted share)
•$36.5 million in Funds From Operations (FFO)(1) ($0.27 per diluted share)
•FFO guidance range for 2022 narrowed ($1.09 - $1.11 per diluted share)
•1.2 million square feet of leases executed during first nine months of ‘22 (record activity)
•97.8% portfolio lease rate at 9/30/22 (vs. 97.6% at 6/30/22 and 97.4% at 9/30/21)
•47.7% increase in same-space cash base rents on new leases (6.8% renewal increase)
•2.1% increase in same-center cash net operating income (3Q‘22 vs. 3Q‘21)
•4.4% increase in same-center cash net operating income (first nine months ‘22 vs. ‘21)
•$120.2 million of grocery-anchored shopping centers acquired
•$36.2 million property sold
•3.5x interest coverage ratio for 3Q‘22
•6.6x net principal debt-to-annualized EBITDA ratio for 3Q‘22
•$0.15 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, “Demand for space continues to be strong across our portfolio and we continue to make the most of it, leasing space at a record pace with the third quarter being our most active and strongest year-to-date. During the third quarter, we leased over 480,000 square feet, increased our portfolio lease rate to 97.8%, and achieved a 47.7% increase in same-space base rents on new leases signed during the quarter.” Tanz added, “Overall, our West Coast grocery-anchored portfolio continues to perform well and we are poised to finish the year strong and with good momentum as we head towards 2023.”
FINANCIAL RESULTS SUMMARY
For the three months ended September 30, 2022, GAAP net income attributable to common stockholders was $18.5 million, or $0.15 per diluted share, as compared to GAAP net income attributable to common stockholders of $21.1 million, or $0.17 per diluted share, for the three months ended September 30, 2021. For the nine months ended September 30, 2022, GAAP net income attributable to common stockholders was $41.7 million, or $0.33 per diluted share, as compared to GAAP net income attributable to common stockholders of $45.0 million, or $0.38 per diluted share, for the nine months ended September 30, 2021. Included in 2021 GAAP net income was a $12.9 million and a $22.3 million gain on sale of real estate for the three and nine months ended September 30, 2021, respectively, as compared to a $7.7 million gain on sale of real estate for both the three and nine months ended September 30, 2022.
FFO for the third quarter of 2022 was $36.5 million, or $0.27 per diluted share, as compared to $32.6 million in FFO, or $0.25 per diluted share for the third quarter of 2021. FFO for the first nine months of 2022 was $109.4 million, or $0.83 per diluted share, as compared to $95.3 million in FFO, or $0.74 per diluted share for the first nine months 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 third quarter of 2022, same-center net operating income (NOI) was $48.5 million, as compared to $47.5 million in same-center NOI for the third quarter of 2021, representing a 2.1% increase. For the first nine months of 2022, same-center NOI increased 4.4% as compared to same-center NOI for the first nine months of 2021. 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 September 30, 2022, ROIC had total real estate assets (before accumulated depreciation) of approximately $3.4 billion and approximately $1.4 billion of principal debt outstanding. As of September 30, 2022, 95.5% of ROIC’s principal debt outstanding was unsecured, including $52.0 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 third quarter of 2022 was 3.5 times and 6.6 times, respectively, and 96.6% of its portfolio was unencumbered at September 30, 2022, based on gross leasable area.
ACQUISITION & DISPOSITION SUMMARY
Year-to-date, ROIC has acquired $120.2 million of grocery-anchored shopping centers, including three grocery-anchored shopping centers acquired during the second quarter, totaling $60.0 million, and the following two grocery-anchored shopping centers acquired during the third quarter, totaling $60.2 million.
Ballinger Village
In August 2022, ROIC acquired Ballinger Village for $29.2 million. The shopping center is approximately 111,000 square feet and is anchored by Thriftway Supermarket and Rite Aid Pharmacy. The property is located in Shoreline, Washington, within the Seattle metropolitan area, and is currently 92.1% leased.
Thomas Lake Shopping Center
In August 2022, ROIC acquired Thomas Lake Shopping Center for $31.0 million. The shopping center is approximately 111,000 square feet and is anchored by Albertsons Supermarket and Rite Aid Pharmacy. The property is located in Mill Creek, Washington, within the Seattle metropolitan area, and is currently 100% leased.
In terms of property dispositions, during the third quarter ROIC sold one property for $36.2 million.
PROPERTY OPERATIONS SUMMARY
At September 30, 2022, ROIC’s portfolio was 97.8% leased. During the third quarter of 2022, ROIC executed 133 leases, totaling 480,458 square feet, including 48 new leases, totaling 131,422 square feet, achieving a 47.7% increase in same-space comparative base rent, and 85 renewed leases, totaling 349,036 square feet, achieving a 6.8% increase in base rent. ROIC reports same-space comparative new lease and renewal base rents on a cash basis.
ENVIRONMENTAL, SOCIAL & GOVERNANCE
During the third quarter, ROIC issued its annual Environmental, Social and Governance (ESG) report, detailing its ESG achievements during 2021, as well as its ongoing initiatives and long term strategic goals. The report was prepared in accordance with the Sustainability Accounting Standards Board (SASB) standards, the Task Force on Climate-related Financial Disclosures (TCFD) framework, and the United Nations Sustainable Development Goals (SDG). The report is available at: https://www.roireit.net/assets/001/5927.pdf.
CASH DIVIDEND
On October 7, 2022, ROIC distributed a $0.15 per share cash dividend. On October 25, 2022, ROIC’s board of directors declared a cash dividend of $0.15 per share, payable on December 29, 2022 to stockholders of record on December 15, 2022.
2022 GUIDANCE SUMMARY
ROIC currently estimates that GAAP net income for 2022 will be within the range of $0.37 to $0.39 per diluted share, and FFO will be within the range of $1.09 to $1.11 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 | $ | 37,546 | $ | 44,907 | $ | 45,128 | $ | 47,708 | |||||||||||||||
| Funds from operations (FFO) – diluted | $ | 142,560 | $ | 150,080 | $ | 144,425 | $ | 147,075 | |||||||||||||||
| GAAP net income per diluted share | $ | 0.31 | $ | 0.36 | $ | 0.37 | $ | 0.39 | |||||||||||||||
| FFO per diluted share | $ | 1.08 | $ | 1.12 | $ | 1.09 | $ | 1.11 | |||||||||||||||
| Key Drivers | |||||||||||||||||||||||
| General and administrative expenses | $ | 22,500 | $ | 21,500 | $ | 22,000 | $ | 21,500 | |||||||||||||||
| Straight-line rent | $ | 2,400 | $ | 2,400 | $ | 3,000 | $ | 3,000 | |||||||||||||||
| Amortization of above- and below-market rent | $ | 11,300 | $ | 11,300 | $ | 11,900 | $ | 11,900 | |||||||||||||||
| Bad debt | $ | 3,000 | $ | 2,000 | $ | 2,500 | $ | 2,000 | |||||||||||||||
| Acquisitions | $ | 120,000 | $ | 200,000 | $ | 120,200 | $ | 120,200 | |||||||||||||||
| Dispositions | $ | 70,000 | $ | 100,000 | $ | 36,200 | $ | 36,200 | |||||||||||||||
| Same-center cash NOI growth (vs. 2021) | 4.0 | % | 5.0 | % | 4.0 | % | 5.0 | % | |||||||||||||||
ROIC’s management will discuss guidance, and the underlying assumptions, on ROIC’s October 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 to discuss its results on Wednesday, October 26, 2022 at 9:00 a.m. Eastern Time / 6:00 a.m. Pacific Time. To participate in the conference call, click on the following link (ten minutes prior to the call) to register:
http://register.vevent.com/register/BI1623ee85efbe4f19a4a0cdf6f20f99fa
Once registered, participants will have the option of: 1) dialing in from their phone (using a PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone.
The conference call will also be available live (in a listen-only mode) at: http://edge.media-server.com/mmc/p/bqnpah2h
The conference call will be recorded and available for replay following the conclusion of the live broadcast and will be accessible up to one year on ROIC’s website, specifically on its Investor Relations Events & Presentations page:
http://investor.roicreit.com/events-presentations
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 September 30, 2022, ROIC owned 93 shopping centers encompassing approximately 10.6 million square feet. ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody's Investor Services, 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)
| September 30, 2022 (unaudited) | December 31, 2021 | ||||||||||
| ASSETS | |||||||||||
| Real Estate Investments: | |||||||||||
| Land | $ | 942,276 | $ | 915,861 | |||||||
| Building and improvements | 2,453,763 | 2,350,294 | |||||||||
| 3,396,039 | 3,266,155 | ||||||||||
| Less: accumulated depreciation | 556,930 | 510,836 | |||||||||
| 2,839,109 | 2,755,319 | ||||||||||
| Mortgage note receivable | 4,808 | 4,875 | |||||||||
| Real Estate Investments, net | 2,843,917 | 2,760,194 | |||||||||
| Cash and cash equivalents | 7,439 | 13,218 | |||||||||
| Restricted cash | 1,997 | 2,145 | |||||||||
| Tenant and other receivables, net | 54,177 | 55,787 | |||||||||
| Deposits | 500 | — | |||||||||
| Acquired lease intangible assets, net | 50,496 | 50,139 | |||||||||
| Prepaid expenses | 1,504 | 5,337 | |||||||||
| Deferred charges, net | 25,221 | 25,017 | |||||||||
| Other assets | 16,437 | 17,007 | |||||||||
| Total assets | $ | 3,001,688 | $ | 2,928,844 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Term loan | $ | 299,162 | $ | 298,889 | |||||||
| Credit facility | 52,000 | — | |||||||||
| Senior Notes | 946,440 | 945,231 | |||||||||
| Mortgage notes payable | 61,130 | 85,354 | |||||||||
| Acquired lease intangible liabilities, net | 146,178 | 136,608 | |||||||||
| Accounts payable and accrued expenses | 56,585 | 48,598 | |||||||||
| Tenants’ security deposits | 7,525 | 7,231 | |||||||||
| Other liabilities | 41,591 | 40,580 | |||||||||
| Total liabilities | 1,610,611 | 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; 124,541,618 and 122,685,266 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 12 | 12 | |||||||||
| Additional paid-in capital | 1,609,588 | 1,577,837 | |||||||||
| Accumulated dividends in excess of earnings | (307,394) | (297,801) | |||||||||
| Accumulated other comprehensive income (loss) | 27 | (3,154) | |||||||||
| Total Retail Opportunity Investments Corp. stockholders’ equity | 1,302,233 | 1,276,894 | |||||||||
| Non-controlling interests | 88,844 | 89,459 | |||||||||
| Total equity | 1,391,077 | 1,366,353 | |||||||||
| Total liabilities and equity | $ | 3,001,688 | $ | 2,928,844 | |||||||
RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Rental revenue | $ | 77,420 | $ | 69,907 | $ | 229,675 | $ | 208,925 | |||||||||||||||
| Other income | 618 | 1,478 | 3,061 | 2,377 | |||||||||||||||||||
| Total revenues | 78,038 | 71,385 | 232,736 | 211,302 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Property operating | 12,705 | 11,009 | 37,468 | 32,334 | |||||||||||||||||||
| Property taxes | 8,876 | 8,564 | 25,812 | 25,502 | |||||||||||||||||||
| Depreciation and amortization | 24,332 | 22,854 | 72,444 | 69,401 | |||||||||||||||||||
| General and administrative expenses | 5,203 | 4,746 | 16,145 | 14,353 | |||||||||||||||||||
| Other expense | 111 | 147 | 778 | 631 | |||||||||||||||||||
| Total operating expenses | 51,227 | 47,320 | 152,647 | 142,221 | |||||||||||||||||||
| Gain on sale of real estate | 7,653 | 12,880 | 7,653 | 22,340 | |||||||||||||||||||
| Operating income | 34,464 | 36,945 | 87,742 | 91,421 | |||||||||||||||||||
| Non-operating expenses | |||||||||||||||||||||||
| Interest expense and other finance expenses | (14,678) | (14,356) | (43,176) | (43,173) | |||||||||||||||||||
| Net income | 19,786 | 22,589 | 44,566 | 48,248 | |||||||||||||||||||
| Net income attributable to non-controlling interests | (1,264) | (1,494) | (2,896) | (3,254) | |||||||||||||||||||
| Net Income Attributable to Retail Opportunity Investments Corp. | $ | 18,522 | $ | 21,095 | $ | 41,670 | $ | 44,994 | |||||||||||||||
| Earnings per share – basic | $ | 0.15 | $ | 0.17 | $ | 0.34 | $ | 0.38 | |||||||||||||||
Earnings per share – diluted | $ | 0.15 | $ | 0.17 | $ | 0.33 | $ | 0.38 | |||||||||||||||
| Dividends per common share | $ | 0.15 | $ | 0.11 | $ | 0.41 | $ | 0.33 | |||||||||||||||
CALCULATION OF FUNDS FROM OPERATIONS
(Unaudited)
(In thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Net income attributable to ROIC | $ | 18,522 | $ | 21,095 | $ | 41,670 | $ | 44,994 | |||||||||||||||
| Plus: Depreciation and amortization | 24,332 | 22,854 | 72,444 | 69,401 | |||||||||||||||||||
| Less: Gain on sale of real estate | (7,653) | (12,880) | (7,653) | (22,340) | |||||||||||||||||||
| Funds from operations – basic | 35,201 | 31,069 | 106,461 | 92,055 | |||||||||||||||||||
| Net income attributable to non-controlling interests | 1,264 | 1,494 | 2,896 | 3,254 | |||||||||||||||||||
| Funds from operations – diluted | $ | 36,465 | $ | 32,563 | $ | 109,357 | $ | 95,309 | |||||||||||||||
SAME-CENTER CASH NET OPERATING INCOME ANALYSIS
(Unaudited)
(In thousands, except number of shopping centers and percentages)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
| Number of shopping centers included in same-center analysis | 84 | 84 | 84 | 84 | ||||||||||||||||||||||||||||||||||||||||||||||
| Same-center occupancy | 97.8 | % | 97.3 | % | 0.5 | % | 97.8 | % | 97.3 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Base rents | $ | 51,309 | $ | 49,868 | $ | 1,441 | 2.9 | % | $ | 153,292 | $ | 148,192 | $ | 5,100 | 3.4 | % | ||||||||||||||||||||||||||||||||||
| Percentage rent | 193 | 90 | 103 | 114.4 | % | 526 | 179 | 347 | 193.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Recoveries from tenants | 17,441 | 16,352 | 1,089 | 6.7 | % | 52,157 | 49,258 | 2,899 | 5.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Other property income | 414 | 939 | (525) | (55.9) | % | 2,268 | 1,493 | 775 | 51.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Bad debt | (610) | (513) | (97) | 18.9 | % | (1,310) | (1,924) | 614 | (31.9) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 68,747 | 66,736 | 2,011 | 3.0 | % | 206,933 | 197,198 | 9,735 | 4.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Property operating expenses | 11,959 | 10,850 | 1,109 | 10.2 | % | 35,826 | 31,727 | 4,099 | 12.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Property taxes | 8,256 | 8,363 | (107) | (1.3) | % | 24,245 | 24,855 | (610) | (2.5) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Operating Expenses | 20,215 | 19,213 | 1,002 | 5.2 | % | 60,071 | 56,582 | 3,489 | 6.2 | % | ||||||||||||||||||||||||||||||||||||||||
| Same-Center Cash Net Operating Income | $ | 48,532 | $ | 47,523 | $ | 1,009 | 2.1 | % | $ | 146,862 | $ | 140,616 | $ | 6,246 | 4.4 | % | ||||||||||||||||||||||||||||||||||
SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION
(Unaudited)
(In thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| GAAP operating income | $ | 34,464 | $ | 36,945 | $ | 87,742 | $ | 91,421 | |||||||||||||||
| Depreciation and amortization | 24,332 | 22,854 | 72,444 | 69,401 | |||||||||||||||||||
| General and administrative expenses | 5,203 | 4,746 | 16,145 | 14,353 | |||||||||||||||||||
| Other expense | 111 | 147 | 778 | 631 | |||||||||||||||||||
| Gain on sale of real estate | (7,653) | (12,880) | (7,653) | (22,340) | |||||||||||||||||||
| Straight-line rent | (922) | (126) | (2,288) | (438) | |||||||||||||||||||
| Amortization of above- and below-market rent | (2,906) | (2,125) | (9,218) | (6,571) | |||||||||||||||||||
Property revenues and other expenses (1) | (245) | (183) | (833) | (364) | |||||||||||||||||||
| Total Company cash NOI | 52,384 | 49,378 | 157,117 | 146,093 | |||||||||||||||||||
| Non same-center cash NOI | (3,852) | (1,855) | (10,255) | (5,477) | |||||||||||||||||||
| Same-center cash NOI | $ | 48,532 | $ | 47,523 | $ | 146,862 | $ | 140,616 | |||||||||||||||
____________________
(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
3rd 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 September 30, 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 September 30, 2022, ROIC owned 93 shopping centers encompassing approximately 10.6 million square feet. ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody's Investor Services, 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 September 30, 2022 -3- Page Financial Data Balance Sheets ..................................................................................................................................................................................... 4 Income Statements ................................................................................................................................................................................ 5 Funds From Operations ........................................................................................................................................................................ 6 Summary of Debt Outstanding ............................................................................................................................................................. 7 Selected Financial Analysis .................................................................................................................................................................. 9 Property Acquisitions and Dispositions ............................................................................................................................................... 10 Portfolio Data Property Portfolio ................................................................................................................................................................................. 11 Same-Center Cash Net Operating Income Analysis ............................................................................................................................ 14 Top Ten Tenants ................................................................................................................................................................................... 15 Lease Expiration Schedule ................................................................................................................................................................... 16 Leasing Summary ................................................................................................................................................................................. 17 Same-Space Comparative Leasing Summary ...................................................................................................................................... 18 Leased vs. Billed Summary .................................................................................................................................................................. 19 Investor Information ....................................................................................................................................... 20 Table of Contents
Supplemental Disclosure Quarter Ended September 30, 2022 -4- Balance Sheets (unaudited, dollars in thousands, except par values and share amounts) 09/30/22 12/31/21 ASSETS: Real Estate Investments: Land $ 942,276 $ 915,861 Building and improvements 2,453,763 2,350,294 3,396,039 3,266,155 Less: accumulated depreciation 556,930 510,836 2,839,109 2,755,319 Mortgage note receivable 4,808 4,875 Real Estate Investments, net 2,843,917 2,760,194 Cash and cash equivalents 7,439 13,218 Restricted cash 1,997 2,145 Tenant and other receivables, net 54,177 55,787 Deposits 500 — Acquired lease intangible assets, net 50,496 50,139 Prepaid expenses 1,504 5,337 Deferred charges, net 25,221 25,017 Other assets 16,437 17,007 TOTAL ASSETS $ 3,001,688 $ 2,928,844 LIABILITIES: Term loan $ 299,162 $ 298,889 Credit facility 52,000 — Senior Notes 946,440 945,231 Mortgage notes payable 61,130 85,354 Acquired lease intangible liabilities, net 146,178 136,608 Accounts payable and accrued expenses 56,585 48,598 Tenants’ security deposits 7,525 7,231 Other liabilities 41,591 40,580 TOTAL LIABILITIES 1,610,611 1,562,491 EQUITY: Common stock, $0.0001 par value, 500,000,000 shares authorized 12 12 Additional paid-in capital 1,609,588 1,577,837 Accumulated dividends in excess of earnings (307,394) (297,801) Accumulated other comprehensive income (loss) 27 (3,154) Total Retail Opportunity Investments Corp. stockholders’ equity 1,302,233 1,276,894 Non-controlling interests 88,844 89,459 TOTAL EQUITY 1,391,077 1,366,353 TOTAL LIABILITIES AND EQUITY $ 3,001,688 $ 2,928,844 The Company's Form 10-Q for the quarter ended September 30, 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 September 30, 2022 -5- Income Statements Three Months Ended Nine Months Ended 09/30/22 09/30/21 09/30/22 09/30/21 REVENUES: Rental revenue (1) $ 77,420 $ 69,907 $ 229,675 $ 208,925 Other income 618 1,478 3,061 2,377 TOTAL REVENUES 78,038 71,385 232,736 211,302 OPERATING EXPENSES: Property operating 12,705 11,009 37,468 32,334 Property taxes 8,876 8,564 25,812 25,502 Depreciation and amortization 24,332 22,854 72,444 69,401 General and administrative expenses 5,203 4,746 16,145 14,353 Other expense 111 147 778 631 TOTAL OPERATING EXPENSES 51,227 47,320 152,647 142,221 Gain on sale of real estate 7,653 12,880 7,653 22,340 OPERATING INCOME 34,464 36,945 87,742 91,421 NON-OPERATING EXPENSES: Interest expense and other finance expenses (14,678) (14,356) (43,176) (43,173) NET INCOME 19,786 22,589 44,566 48,248 NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (1,264) (1,494) (2,896) (3,254) NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. $ 18,522 $ 21,095 $ 41,670 $ 44,994 NET INCOME PER COMMON SHARE - BASIC $ 0.15 $ 0.17 $ 0.34 $ 0.38 NET INCOME PER COMMON SHARE - DILUTED $ 0.15 $ 0.17 $ 0.33 $ 0.38 Weighted average common shares outstanding - basic 123,798 120,625 123,254 118,976 Weighted average common shares outstanding - diluted 132,738 129,540 132,354 128,012 (1) RENTAL REVENUE Base rents $ 55,392 $ 51,383 $ 163,654 $ 152,931 Recoveries from tenants 18,878 16,821 56,043 51,008 Straight-line rent 922 126 2,288 438 Amortization of above- and below-market rent 2,906 2,125 9,218 6,571 Bad debt (678) (548) (1,528) (2,023) TOTAL RENTAL REVENUE $ 77,420 $ 69,907 $ 229,675 $ 208,925 (unaudited, in thousands, except per share amounts) The Company’s Form 10-Q for the quarters ended September 30, 2022 and September 30, 2021 should be read in conjunction with the above information.
Supplemental Disclosure Quarter Ended September 30, 2022 -6- Funds From Operations (unaudited, in thousands, except per share amounts) Three Months Ended Nine Months Ended 09/30/22 09/30/21 09/30/22 09/30/21 Funds from Operations (FFO) (1): Net income attributable to ROIC common stockholders $ 18,522 $ 21,095 $ 41,670 $ 44,994 Plus: Depreciation and amortization expense 24,332 22,854 72,444 69,401 Less: Gain on sale of real estate (7,653) (12,880) (7,653) (22,340) FUNDS FROM OPERATIONS - BASIC 35,201 31,069 106,461 92,055 Net income attributable to non-controlling interests 1,264 1,494 2,896 3,254 FUNDS FROM OPERATIONS - DILUTED $ 36,465 $ 32,563 $ 109,357 $ 95,309 FUNDS FROM OPERATIONS PER SHARE - BASIC $ 0.28 $ 0.26 $ 0.86 $ 0.77 FUNDS FROM OPERATIONS PER SHARE - DILUTED $ 0.27 $ 0.25 $ 0.83 $ 0.74 Weighted average common shares outstanding - basic 123,798 120,625 123,254 118,976 Weighted average common shares outstanding - diluted 132,738 129,540 132,354 128,012 Common dividends per share $ 0.15 $ 0.11 $ 0.41 $ 0.33 FFO Payout Ratio 55.6 % 44.0 % 49.4 % 44.6 % Additional Disclosures: Non Cash Expense (Income) Straight line rent $ (922) $ (126) $ (2,288) $ (438) Above/below market rent amortization, net (2,906) (2,125) (9,218) (6,571) Non-cash interest (income) expense (14) (14) (42) 59 Deferred financing costs and mortgage premiums, net 671 598 1,884 1,783 Stock based compensation 3,221 2,567 8,821 7,863 Capital Expenditures Tenant improvements $ 6,147 $ 6,359 $ 22,494 $ 16,824 Leasing commissions 580 450 1,480 1,406 Building improvements 418 339 620 617 Reimbursable property improvements 2,445 247 3,810 573 Pad and other development 4,603 2,729 11,091 10,063 Value enhancing tenant improvements 1,752 778 6,108 3,943 (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 September 30, 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 1.9 % Diamond Hills Plaza 34,899 3.55 % 3.61 % 10/1/2025 2.6 % Total Mortgage Debt 60,899 4.05 % 3.70 % 2.4 Years (WA) 4.5 % Unsecured Senior Notes: Senior Notes Due 2023 250,000 5.00 % 5.21 % 12/15/2023 18.3 % Senior Notes Due 2024 250,000 4.00 % 4.21 % 12/15/2024 18.3 % Senior Notes Due 2026 200,000 3.95 % 3.95 % 9/22/2026 14.8 % Senior Notes Due 2027 250,000 4.19 % 4.19 % 12/15/2027 18.3 % Total Unsecured Senior Notes 950,000 4.30 % 4.41 % 3.1 Years (WA) 69.7 % Total Fixed Rate Debt 1,010,899 4.29 % 4.37 % 3.1 Years (WA) 74.2 % Variable Rate Debt Credit Facility 52,000 3.53 % 3.53 % 2/20/2024 (1) 3.8 % Term Loan 300,000 4.12 % 4.12 % 1/20/2025 22.0 % Total Variable Rate Debt 352,000 4.03 % 4.03 % 2.2 Years (WA) 25.8 % TOTAL PRINCIPAL DEBT $ 1,362,899 4.22 % 4.28 % 2.8 Years (WA) 100.0 % Net unamortized premiums on mortgages 342 Net unamortized discounts on notes (1,528) Net unamortized deferred financing charges (2) (2,981) Total Debt $ 1,358,732 (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 September 30, 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 $ 168 $ — $ — $ — $ — $ 168 — % 2023 686 — — — 250,000 250,686 18.4 % 2024 708 26,000 52,000 — 250,000 328,708 24.1 % 2025 550 32,787 — 300,000 — 333,337 24.4 % 2026 — — — — 200,000 200,000 14.8 % 2027 — — — — 250,000 250,000 18.3 % Thereafter — — — — — — — % $ 2,112 $ 58,787 $ 52,000 $ 300,000 $ 950,000 $ 1,362,899 100.0 % Summary of Unencumbered/Encumbered Properties Number of Percentage Properties GLA of GLA Unencumbered properties 91 10,201,343 96.6 % Encumbered properties 2 359,371 3.4 % 93 10,560,714 100.0 % Summary of Unsecured Debt/Secured Debt Percentage of Total Amount Principal Debt Unsecured principal debt $ 1,302,000 95.5 % Secured principal debt 60,899 4.5 % Total Principal Debt $ 1,362,899 100.0 % (1) Does not include extension options available to ROIC.
Supplemental Disclosure Quarter Ended September 30, 2022 -9- Selected Financial Analysis (unaudited, in thousands, except per share amounts) 09/30/22 06/30/22 03/31/22 12/31/21 09/30/21 Debt coverage ratios, three months ending: Interest coverage ratio (EBITDA/interest expense) 3.5x 3.6x 3.6x 3.3x 3.3x Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 3.5x 3.5x 3.5x 3.2x 3.3x Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 6.6x 6.7x 6.4x 7.0x 6.6x Net principal debt (Total principal debt less cash & equivalents)/TTM EBITDA 6.7x 6.9x 6.8x 7.1x 6.6x Debt/book value ratios, at period end: Total principal debt/total book assets 45.4 % 45.7 % 45.2 % 45.6 % 46.1 % Total principal debt/undepreciated book value 38.3 % 38.6 % 38.3 % 38.8 % 39.4 % Secured principal debt/undepreciated book value 1.7 % 1.7 % 1.8 % 2.5 % 2.5 % Market capitalization calculations, at period end: Common shares outstanding 123,813 123,613 123,002 121,926 120,664 Operating partnership units (OP units) outstanding 8,447 8,647 8,694 8,542 8,542 Common stock price per share $ 13.76 $ 15.78 $ 19.39 $ 19.60 $ 17.42 Total equity market capitalization $ 1,819,900 $ 2,087,066 $ 2,553,590 $ 2,557,170 $ 2,250,772 Total principal debt 1,362,899 1,357,063 1,321,225 1,334,864 1,335,127 TOTAL MARKET CAPITALIZATION $ 3,182,799 $ 3,444,129 $ 3,874,815 $ 3,892,034 $ 3,585,899 Unsecured Senior Notes Financial Covenants: (1) Total debt to total assets not to exceed 60% 40.3 % 40.6 % 40.4 % 40.9 % 41.5 % Total secured debt to total assets not to exceed 40% 1.8 % 1.8 % 1.9 % 2.6 % 2.6 % Total unencumbered assets to total unsecured debt not to be less than 150% 250.5 % 248.3 % 250.1 % 246.1 % 242.4 % Consolidated income available for debt service to interest expense not to be less than 1.5:1 3.5x 3.4x 3.3x 3.2x 3.3x (1) Calculated in accordance with GAAP pursuant to underlying bond indentures.
Supplemental Disclosure Quarter Ended September 30, 2022 -10- Property Acquisitions and Dispositions (dollars in thousands) Acquisitions Date Owned Shopping Centers Location Acquired Purchase Amount GLA 2Q 2022 Powell Valley Junction Gresham, OR 04/01/22 $ 17,595 108,639 Olympia Square North Olympia, WA 04/01/22 18,355 89,884 Village Oaks Shopping Center Martinez, CA 05/17/22 24,000 79,875 $ 59,950 278,398 3Q 2022 Thomas Lake Shopping Center Mill Creek, WA 08/19/22 $ 31,050 111,311 Ballinger Village Shoreline, WA 08/19/22 29,150 110,849 $ 60,200 222,160 Total 2022 Acquisitions $ 120,150 500,558 Dispositions Date Owned Shopping Centers Location Sold Sale Amount GLA 3Q 2022 Aurora Square Shoreline, WA 08/19/22 $ 36,193 108,558 Total 2022 Dispositions $ 36,193 108,558
Supplemental Disclosure Quarter Ended September 30, 2022 -11- 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 % $ 2,018 Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy Claremont Promenade * Claremont CA 09/23/10 92,215 91.3 % 2,319 Super King Supermarket Gateway Village * Chino Hills CA 12/17/10 96,959 98.5 % 3,047 Sprouts Market Seabridge Marketplace * Oxnard CA 05/31/12 98,348 93.6 % 1,921 Safeway (Vons) Supermarket Glendora Shopping Center * Glendora CA 08/01/12 106,535 99.1 % 1,499 Albertsons Supermarket Redondo Beach Plaza * Redondo Beach CA 12/28/12 110,509 100.0 % 2,386 Safeway (Vons) Supermarket, Petco Diamond Bar Town Center * Diamond Bar CA 02/01/13 100,342 99.1 % 2,441 Walmart Neighborhood Market, Crunch Fitness Diamond Hills Plaza * Diamond Bar CA 04/22/13 139,472 95.7 % 3,957 H-Mart Supermarket, Planet Fitness Plaza de la Cañada * La Cañada Flintridge CA 12/13/13 100,425 97.3 % 2,634 Gelson’s Supermarket, TJ Maxx, Rite Aid Pharmacy Fallbrook Shopping Center * Los Angeles CA 06/13/14 755,299 99.0 % 13,725 Sprouts Market, Trader Joes, Kroger (Ralph’s) Supermarket (2), TJ Maxx Moorpark Town Center * Moorpark CA 12/03/14 133,547 93.5 % 2,083 Kroger (Ralph’s) Supermarket, CVS Pharmacy Ontario Plaza * Ontario CA 01/06/15 150,149 96.4 % 2,419 El Super Supermarket, Rite Aid Pharmacy Park Oaks Shopping Center * Thousand Oaks CA 01/06/15 110,092 92.9 % 2,666 Safeway (Vons) Supermarket, Dollar Tree Warner Plaza * Woodland Hills CA 12/31/15 110,918 93.2 % 4,383 Sprouts Market, Kroger (Ralph’s) Supermarket (2), Rite Aid Pharmacy (2) Magnolia Shopping Center * Santa Barbara CA 03/10/16 116,089 94.5 % 2,281 Kroger (Ralph’s) Supermarket Casitas Plaza Shopping Center * Carpinteria CA 03/10/16 105,118 99.2 % 1,935 Albertsons Supermarket, CVS Pharmacy Bouquet Center * Santa Clarita CA 04/28/16 148,903 97.3 % 3,786 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less North Ranch Shopping Center * Westlake Village CA 06/01/16 146,444 92.4 % 4,733 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 93.0 % 3,592 Trader Joe’s, Marshall’s, LA Fitness Los Angeles metro area total 2,941,369 96.6 % $ 65,207 Seattle metro area Meridian Valley Plaza * Kent WA 02/01/10 51,597 100.0 % $ 896 Kroger (QFC) Supermarket The Market at Lake Stevens * Lake Stevens WA 03/11/10 74,130 100.0 % 1,697 Albertsons (Haggen) Supermarket Canyon Park Shopping Center * Bothell WA 07/29/11 123,592 100.0 % 2,650 PCC Community Markets, Rite Aid Pharmacy, Petco Hawks Prairie Shopping Center * Lacey WA 09/09/11 157,529 100.0 % 1,995 Safeway Supermarket, Dollar Tree, Big Lots The Kress Building * Seattle WA 09/30/11 74,616 73.5 % 1,441 IGA Supermarket, TJMaxx Gateway Shopping Center * Marysville WA 02/16/12 104,298 100.0 % 2,632 WinCo Foods (2), Rite Aid Pharmacy, Ross Dress For Less Canyon Crossing * Puyallup WA 04/15/13 120,398 98.2 % 2,870 Safeway Supermarket Crossroads Shopping Center * Bellevue WA 2010/2013 473,131 99.9 % 12,455 Kroger (QFC) Supermarket, Bed Bath & Beyond, Dick’s Sporting Goods Bellevue Marketplace * Bellevue WA 12/10/15 113,758 100.0 % 3,677 Asian Family Market Four Corner Square * Maple Valley WA 12/21/15 119,531 100.0 % 2,671 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden Bridle Trails Shopping Center * Kirkland WA 10/17/16 110,257 100.0 % 2,449 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 % 2,945 WinCo Foods, LA Fitness, Dollar Tree, Petco North Lynnwood Shopping Center * Lynnwood WA 10/19/17 63,606 100.0 % 1,144 Grocery Outlet Supermarket, Dollar Tree Stadium Center * Tacoma WA 02/23/18 48,888 100.0 % 1,097 Thriftway Supermarket Summerwalk Village * Lacey WA 12/13/19 60,343 100.0 % 935 Walmart Neighborhood Market South Point Plaza Everett WA 11/10/21 189,960 99.4 % 2,348 Grocery Outlet Supermarket, Rite Aid Pharmacy, Hobby Lobby, Pep Boys Olympia West Center Olympia WA 12/06/21 69,212 100.0 % 1,544 Trader Joe’s, Petco Olympia Square North Olympia WA 04/01/22 89,884 100.0 % 871 Albertsons Supermarket, Crunch Fitness Thomas Lake Shopping Center Mill Creek WA 08/19/22 111,311 100.0 % 1,988 Albertsons Supermarket, Rite Aid Pharmacy Ballinger Village Shoreline WA 08/19/22 110,849 92.1 % 2,160 Thriftway Supermarket, Rite Aid Pharmacy Seattle metro area total 2,465,275 98.4 % $ 51,155 (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 3Q 2022.
Supplemental Disclosure Quarter Ended September 30, 2022 -12- 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 % $ 4,019 New Seasons Market Wilsonville Old Town Square * Wilsonville OR 2010/2012 49,937 100.0 % 1,937 Kroger (Fred Meyer) Supermarket (2) Cascade Summit Town Square * West Linn OR 08/20/10 94,934 100.0 % 2,055 Safeway Supermarket, U.S. Postal Service Heritage Market Center * Vancouver WA 09/23/10 108,054 100.0 % 1,974 Safeway Supermarket, Dollar Tree Division Crossing * Portland OR 12/22/10 103,561 100.0 % 1,331 Rite Aid Pharmacy, Ross Dress For Less, Ace Hardware Halsey Crossing * Gresham OR 12/22/10 99,428 100.0 % 1,499 24 Hour Fitness, Dollar Tree Hillsboro Market Center * Hillsboro OR 11/23/11 156,021 100.0 % 2,638 Albertsons Supermarket, Dollar Tree, Ace Hardware Robinwood Shopping Center * West Linn OR 08/23/13 70,831 100.0 % 1,149 Walmart Neighborhood Market Tigard Marketplace * Tigard OR 02/18/14 136,889 100.0 % 2,269 H-Mart Supermarket, Bi-Mart Wilsonville Town Center * Wilsonville OR 12/11/14 167,829 99.1 % 3,058 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree Tigard Promenade * Tigard OR 07/28/15 88,043 100.0 % 1,891 Safeway Supermarket Sunnyside Village Square * Happy Valley OR 07/28/15 92,278 100.0 % 1,676 Grocery Outlet Supermarket, Snap Fitness, Ace Hardware Johnson Creek Center * Happy Valley OR 11/09/15 108,588 100.0 % 2,326 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 % 2,307 Kroger (QFC) Supermarket King City Plaza * King City OR 05/18/18 62,676 95.1 % 986 Grocery Outlet Supermarket Powell Valley Junction Gresham OR 04/01/22 108,639 100.0 % 1,237 Walmart Neighborhood Market Portland metro area total 1,860,681 99.8 % $ 35,300 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 97.1 % 3,144 Save Mart (Lucky California) Supermarket, Planet Fitness Country Club Gate Center * Pacific Grove CA 07/08/11 109,331 97.1 % 2,332 Save Mart (Lucky California) Supermarket, Rite Aid Pharmacy Marlin Cove Shopping Center * Foster City CA 05/04/12 73,943 99.6 % 2,631 99 Ranch Market The Village at Novato * Novato CA 07/24/12 20,081 100.0 % 600 Trader Joe’s, Pharmaca Pharmacy Santa Teresa Village * San Jose CA 11/08/12 131,263 97.9 % 3,300 Grocery Outlet Supermarket, Dollar Tree, MedVet Silicon Valley Granada Shopping Center * Livermore CA 06/27/13 71,525 99.4 % 1,516 Save Mart (Lucky California) Supermarket Country Club Village * San Ramon CA 11/26/13 111,093 96.5 % 2,192 Walmart Neighborhood Market, CVS Pharmacy North Park Plaza * San Jose CA 04/30/14 76,697 97.3 % 2,652 H-Mart Supermarket Winston Manor * South San Francisco CA 01/07/15 49,852 94.0 % 1,757 Grocery Outlet Supermarket Jackson Square * Hayward CA 07/01/15 114,220 100.0 % 2,410 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness Gateway Centre * San Ramon CA 09/01/15 112,553 92.8 % 2,553 Save Mart (Lucky California) Supermarket, Walgreens Iron Horse Plaza * Danville CA 12/04/15 61,915 100.0 % 2,306 Lunardi’s Market Monterey Center * Monterey CA 07/14/16 25,626 100.0 % 1,090 Trader Joe’s, Pharmaca Pharmacy Santa Rosa Southside Shopping Center * Santa Rosa CA 03/24/17 88,606 100.0 % 1,837 REI, Cost Plus World Market, DSW Monta Loma Plaza * Mountain View CA 09/19/17 49,694 100.0 % 1,611 Safeway Supermarket Canyon Creek Plaza San Jose CA 09/01/21 64,662 96.9 % 2,109 New Seasons Market Village Oaks Shopping Center Martinez CA 05/17/22 79,875 97.9 % 1,439 Save Mart (Lucky California) Supermarket, Rite Aid Pharmacy (2) San Francisco metro area total 1,451,613 97.8 % $ 37,003 (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 3Q 2022.
Supplemental Disclosure Quarter Ended September 30, 2022 -13- 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 97.1 % $ 2,348 Kroger (Food 4 Less) Supermarket, Marshall’s Sycamore Creek * Corona CA 09/30/10 74,198 98.2 % 1,908 Safeway (Vons) Supermarket, CVS Pharmacy (2) Desert Springs Marketplace * Palm Desert CA 02/17/11 113,718 94.1 % 2,799 Kroger (Ralph’s) Supermarket, Rite Aid Pharmacy Cypress Center West * Cypress CA 12/04/12 112,080 98.4 % 2,215 Kroger (Ralph’s) Supermarket, Rite Aid Pharmacy Harbor Place Center * Garden Grove CA 12/28/12 122,636 94.5 % 1,784 AA Supermarket, Ross Dress For Less, AutoZone Mega Hub 5 Points Plaza * Huntington Beach CA 09/27/13 161,214 95.6 % 4,610 Trader Joe’s Peninsula Marketplace * Huntington Beach CA 10/15/13 95,416 99.0 % 2,497 Kroger (Ralph’s) Supermarket, Planet Fitness Fullerton Crossroads * Fullerton CA 10/11/17 219,899 100.0 % 3,672 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 98.2 % 3,086 Smart & Final Extra Supermarket Orange Country metro area total 1,093,738 97.3 % $ 24,919 San Diego metro area Marketplace Del Rio * Oceanside CA 01/03/11 183,787 95.9 % $ 3,570 Stater Brothers Supermarket, Walgreens, Planet Fitness Renaissance Towne Centre * San Diego CA 08/03/11 52,866 96.3 % 2,635 CVS Pharmacy Bay Plaza * San Diego CA 10/05/12 73,324 98.0 % 2,218 Seafood City Supermarket Bernardo Heights Plaza * Rancho Bernardo CA 02/06/13 37,729 100.0 % 985 Sprouts Market Hawthorne Crossings * San Diego CA 06/27/13 141,288 100.0 % 3,548 Mitsuwa Supermarket, Ross Dress For Less, Staples Creekside Plaza * Poway CA 02/28/14 133,914 93.2 % 3,180 Stater Brothers Supermarket, AMC Theatres Palomar Village Temecula CA 10/12/21 125,130 97.0 % 2,086 Albertsons Supermarket, CVS Pharmacy San Diego metro area total 748,038 96.8 % $ 18,222 Number of Owned % Metro Area Summary Centers GLA Leased ABR (1) Los Angeles 20 2,941,369 96.6 % $ 65,207 Seattle 21 2,465,275 98.4 % 51,155 Portland 18 1,860,681 99.8 % 35,300 San Francisco 18 1,451,613 97.8 % 37,003 Orange County 9 1,093,738 97.3 % 24,919 San Diego 7 748,038 96.8 % 18,222 TOTAL SHOPPING CENTER PORTFOLIO 93 10,560,714 97.8 % $ 231,806 (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 3Q 2022.
Supplemental Disclosure Quarter Ended September 30, 2022 -14- Three Months Ended Nine Months Ended 09/30/22 09/30/21 $ Change % Change 09/30/22 09/30/21 $ Change % Change Number of shopping centers included in same-center analysis (1) 84 84 84 84 Same-center occupancy 97.8 % 97.3 % 0.5 % 97.8 % 97.3 % 0.5 % REVENUES: Base rents $ 51,309 $ 49,868 $ 1,441 2.9 % $ 153,292 $ 148,192 $ 5,100 3.4 % Percentage rent 193 90 103 114.4 % 526 179 347 193.9 % Recoveries from tenants 17,441 16,352 1,089 6.7 % 52,157 49,258 2,899 5.9 % Other property income 414 939 (525) (55.9) % 2,268 1,493 775 51.9 % Bad debt (610) (513) (97) 18.9 % (1,310) (1,924) 614 (31.9) % TOTAL REVENUES 68,747 66,736 2,011 3.0 % 206,933 197,198 9,735 4.9 % OPERATING EXPENSES: Property operating expenses 11,959 10,850 1,109 10.2 % 35,826 31,727 4,099 12.9 % Property taxes 8,256 8,363 (107) (1.3) % 24,245 24,855 (610) (2.5) % TOTAL OPERATING EXPENSES 20,215 19,213 1,002 5.2 % 60,071 56,582 3,489 6.2 % SAME-CENTER CASH NET OPERATING INCOME $ 48,532 $ 47,523 $ 1,009 2.1 % $ 146,862 $ 140,616 $ 6,246 4.4 % SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION GAAP Operating Income $ 34,464 $ 36,945 $ 87,742 $ 91,421 Depreciation and amortization 24,332 22,854 72,444 69,401 General and administrative expenses 5,203 4,746 16,145 14,353 Other expense 111 147 778 631 Gain on sale of real estate (7,653) (12,880) (7,653) (22,340) Straight-line rent (922) (126) (2,288) (438) Amortization of above- and below-market rent (2,906) (2,125) (9,218) (6,571) Property revenues and other expenses (2) (245) (183) (833) (364) TOTAL COMPANY CASH NET OPERATING INCOME 52,384 49,378 157,117 146,093 Non Same-Center Cash NOI (3,852) (1,855) (10,255) (5,477) SAME-CENTER CASH NET OPERATING INCOME $ 48,532 $ 47,523 $ 146,862 $ 140,616 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 September 30, 2022 -15- 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 21 1,052,996 10.2 % $ 13,251 5.6 % 2 Kroger Supermarkets 11 488,735 4.7 % 7,538 3.3 % 3 Rite Aid Pharmacy 16 297,738 2.9 % 4,003 1.7 % 4 Save Mart Supermarkets 5 234,713 2.3 % 3,495 1.5 % 5 JP Morgan Chase 21 94,681 0.9 % 3,205 1.4 % 6 Trader Joe’s 9 109,307 1.1 % 3,166 1.4 % 7 Grocery Outlet Supermarkets 10 225,004 2.2 % 3,096 1.3 % 8 Sprouts Markets 4 159,163 1.5 % 2,747 1.2 % 9 H-Mart Supermarkets 3 147,040 1.4 % 2,684 1.2 % 10 Marshall’s / TJMaxx 5 152,459 1.5 % 2,563 1.1 % Top 10 Tenants Total 105 2,961,836 28.7 % $ 45,748 19.7 % Other Tenants 1,926 7,360,791 71.3 % 186,058 80.3 % Total Portfolio 2,031 10,322,627 100.0 % $ 231,806 100.0 %
Supplemental Disclosure Quarter Ended September 30, 2022 -16- 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 — — — % $ — — % $ — 2023 17 530,767 5.1 % 9,595 4.1 % 18.08 2024 15 511,577 5.0 % 8,371 3.6 % 16.36 2025 22 724,936 7.0 % 10,248 4.4 % 14.14 2026 24 784,371 7.6 % 10,196 4.4 % 13.00 2027 14 460,659 4.5 % 5,284 2.3 % 11.47 2028 25 851,307 8.2 % 13,803 6.0 % 16.21 2029 13 463,575 4.5 % 7,360 3.2 % 15.88 2030 7 242,126 2.3 % 3,828 1.6 % 15.81 2031 10 336,035 3.3 % 5,047 2.2 % 15.02 2032+ 26 929,947 9.0 % 13,860 6.0 % 14.90 173 5,835,300 56.5 % $ 87,592 37.8 % $ 15.01 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 65 101,183 1.0 % $ 3,418 1.5 % $ 33.78 2023 271 537,488 5.2 % 17,980 7.8 % 33.45 2024 295 650,353 6.3 % 20,570 8.9 % 31.63 2025 271 616,305 6.0 % 19,439 8.4 % 31.54 2026 268 610,608 5.9 % 19,777 8.4 % 32.39 2027 276 672,038 6.5 % 21,125 9.1 % 31.44 2028 105 291,320 2.8 % 9,895 4.3 % 33.96 2029 58 179,733 1.7 % 5,803 2.5 % 32.29 2030 49 159,859 1.5 % 5,402 2.3 % 33.79 2031 59 205,548 2.0 % 6,189 2.7 % 30.11 2032+ 141 462,892 4.6 % 14,616 6.3 % 31.57 1,858 4,487,327 43.5 % $ 144,214 62.2 % $ 32.14 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 65 101,183 1.0 % $ 3,418 1.5 % $ 33.78 2023 288 1,068,255 10.3 % 27,575 11.9 % 25.81 2024 310 1,161,930 11.3 % 28,941 12.5 % 24.91 2025 293 1,341,241 13.0 % 29,687 12.8 % 22.13 2026 292 1,394,979 13.5 % 29,973 12.8 % 21.49 2027 290 1,132,697 11.0 % 26,409 11.4 % 23.32 2028 130 1,142,627 11.0 % 23,698 10.3 % 20.74 2029 71 643,308 6.2 % 13,163 5.7 % 20.46 2030 56 401,985 3.8 % 9,230 3.9 % 22.96 2031 69 541,583 5.3 % 11,236 4.9 % 20.75 2032+ 167 1,392,839 13.6 % 28,476 12.3 % 20.44 2,031 10,322,627 100.0 % $ 231,806 100.0 % $ 22.46 (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 September 30, 2022 -17- Leasing Summary For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 47 1 48 124 1 125 Gross Leasable Area (sq. ft.) 114,182 17,240 131,422 291,622 17,240 308,862 Initial Base Rent ($/sq. ft.) (1) $ 30.53 $ 24.00 $ 29.67 $ 29.23 $ 24.00 $ 28.94 Tenant Improvements ($/sq. ft.) $ 0.47 $ — $ 0.41 $ 0.74 $ — $ 0.70 Leasing Commissions ($/sq. ft.) $ 4.64 $ 4.79 $ 4.66 $ 2.89 $ 4.79 $ 3.00 Weighted Average Lease Term (Yrs.) (2) 10.1 10.5 10.2 8.1 10.5 8.3 Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 76 9 85 187 18 205 Gross Leasable Area (sq. ft.) 166,891 182,145 349,036 379,263 504,313 883,576 Initial Base Rent ($/sq. ft.) (1) $ 32.52 $ 13.41 $ 22.55 $ 35.80 $ 14.83 $ 23.83 Tenant Improvements ($/sq. ft.) $ 0.33 $ 2.33 $ 1.37 $ 0.81 $ 0.84 $ 0.83 Leasing Commissions ($/sq. ft.) $ — $ 0.14 $ 0.07 $ — $ 0.05 $ 0.03 Weighted Average Lease Term (Yrs.) (2) 5.3 5.6 5.4 5.2 6.0 5.6 Total Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 123 10 133 311 19 330 Gross Leasable Area (sq. ft.) 281,073 199,385 480,458 670,885 521,553 1,192,438 Initial Base Rent ($/sq. ft.) (1) $ 31.71 $ 14.33 $ 24.50 $ 32.94 $ 15.14 $ 25.16 Tenant Improvements ($/sq. ft.) $ 0.39 $ 2.13 $ 1.11 $ 0.78 $ 0.81 $ 0.80 Leasing Commissions ($/sq. ft.) $ 1.89 $ 0.54 $ 1.33 $ 1.26 $ 0.21 $ 0.80 Weighted Average Lease Term (Yrs.) (2) 7.2 6.0 6.7 6.4 6.1 6.3 (1) Initial Base Rent is on a cash basis and is the initial contractual monthly rent, annualized. (2) Does not assume exercise of renewal options.
Supplemental Disclosure Quarter Ended September 30, 2022 -18- Same-Space Comparative Leasing Summary For the Three Months Ended September 30, 2022 For the Nine Months Ended September 30, 2022 New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 19 1 20 62 1 63 Comparative GLA (sq. ft.) (1) 50,211 17,240 67,451 148,355 17,240 165,595 Prior Base Rent ($/sq. ft.) (2) $ 22.05 $ 21.88 $ 22.01 $ 25.32 $ 21.88 $ 24.97 Initial Base Rent ($/sq. ft.) $ 35.42 $ 24.00 $ 32.50 $ 32.74 $ 24.00 $ 31.83 Percentage Change in Base Rents 60.6 % 9.7 % 47.7 % 29.3 % 9.7 % 27.5 % Tenant Improvements ($/sq. ft.) $ — $ — $ — $ 0.39 $ — $ 0.35 Leasing Commissions ($/sq. ft.) $ 6.45 $ 4.79 $ 6.03 $ 3.17 $ 4.79 $ 3.34 Weighted Average Lease Term (Yrs.) (3) 10.9 10.5 10.8 9.0 10.5 9.2 Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 76 9 85 187 18 205 Comparative GLA (sq. ft.) 166,891 182,145 349,036 379,263 504,313 883,576 Prior Base Rent ($/sq. ft.) (2) $ 30.44 $ 12.58 $ 21.12 $ 33.28 $ 13.63 $ 22.07 Initial Base Rent ($/sq. ft.) $ 32.52 $ 13.41 $ 22.55 $ 35.80 $ 14.83 $ 23.83 Percentage Change in Base Rents 6.8 % 6.6 % 6.8 % 7.5 % 8.8 % 8.0 % Tenant Improvements ($/sq. ft.) $ 0.33 $ 2.33 $ 1.37 $ 0.81 $ 0.84 $ 0.83 Leasing Commissions ($/sq. ft.) $ — $ 0.14 $ 0.07 $ — $ 0.05 $ 0.03 Weighted Average Lease Term (Yrs.) (3) 5.3 5.6 5.4 5.2 6.0 5.6 Total Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 95 10 105 249 19 268 Comparative GLA (sq. ft.) (1) 217,102 199,385 416,487 527,618 521,553 1,049,171 Prior Base Rent ($/sq. ft.) (2) $ 28.50 $ 13.38 $ 21.26 $ 31.05 $ 13.91 $ 22.53 Initial Base Rent ($/sq. ft.) $ 33.19 $ 14.33 $ 24.16 $ 34.94 $ 15.14 $ 25.09 Percentage Change in Base Rents 16.5 % 7.0 % 13.6 % 12.5 % 8.8 % 11.4 % Tenant Improvements ($/sq. ft.) $ 0.25 $ 2.13 $ 1.15 $ 0.69 $ 0.81 $ 0.75 Leasing Commissions ($/sq. ft.) $ 1.49 $ 0.54 $ 1.04 $ 0.89 $ 0.21 $ 0.55 Weighted Average Lease Term (Yrs.) (3) 6.6 6.0 6.3 6.2 6.1 6.2 (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 September 30, 2022 -19- Leased vs. Billed Summary (dollars in thousands) 09/30/22 06/30/22 03/31/22 12/31/21 % leased at beginning of quarter 97.6 % 97.2 % 97.5 % 97.4 % % billed at beginning of quarter 93.7 % 92.6 % 92.8 % 92.8 % ABR of new leases signed/not yet commenced - at beginning of quarter $ 7,921 $ 9,603 $ 10,601 $ 10,075 less: ABR of new leases commenced during quarter (1,377) (2,726) (2,019) (1,998) less: ABR of new leases related to disposed properties (152) — — — plus: ABR of new leases signed during quarter 2,723 1,044 1,021 2,524 ABR of new leases signed/not yet commenced - at end of quarter $ 9,115 $ 7,921 $ 9,603 $ 10,601 % leased at end of quarter 97.8 % 97.6 % 97.2 % 97.5 % % billed at end of quarter 93.3 % 93.7 % 92.6 % 92.8 % ABR of new leases commenced during quarter - actual cash received $ 231 $ 295 $ 380 $ 297
Supplemental Disclosure Quarter Ended September 30, 2022 -20- 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 Nicholas Joseph 212.816.1909 Craig Mailman 212.816.4471 Green Street 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 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