UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 15, 2023
(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 February 15, 2023, Retail Opportunity Investments Corp. (the "Company") issued an earnings release announcing its financial results for the quarter and year ended December 31, 2022. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference. On February 15, 2023, in connection with this earnings release, the Company posted certain supplemental information regarding the Company's operations for the quarter ended December 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: February 15, 2023 | 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
Wednesday, February 15, 2023
Retail Opportunity Investments Corp. Reports 2022 Results
San Diego, CA, February 15, 2023 - Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the year and three months ended December 31, 2022.
YEAR 2022 HIGHLIGHTS
•$51.9 million of net income attributable to common stockholders ($0.42 per diluted share)
•$145.3 million in Funds From Operations(1) ($1.10 per diluted share)
•10.0% growth in Funds From Operations per diluted share (2022 vs. 2021)
•4.6% increase in same-center cash net operating income (2022 vs. 2021)
•98.1% portfolio lease rate at year-end (all-time record high)
•1.6 million square feet leased (all-time record activity)
•23.2% increase in same-space cash rents on new leases (7.8% increase on renewals)
•$120.2 million of grocery-anchored shopping center acquisitions
•$61.4 million of capital raised ($36.2 million disposition, $25.2 million ATM stock issuance)
•$23.5 million of mortgage debt retired
•96.6% of portfolio’s gross leasable area unencumbered at year-end (all-time record high)
•Advanced environmental, social & governance initiatives
4TH QUARTER 2022 HIGHLIGHTS
•$10.2 million of net income attributable to common stockholders ($0.08 per diluted share)
•$35.9 million in Funds From Operations ($0.27 per diluted share)
•5.0% increase in same-center cash net operating income (4Q‘22 vs. 4Q‘21)
•6.6x net principal debt-to-annualized EBITDA ratio for 4Q‘22 (vs. 7.0x for 4Q‘21)
•$0.15 per share cash dividend paid
________________________________________
(1) A reconciliation of GAAP net income to Funds From Operations (FFO) is provided at the end of this press release.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, “During 2022, we continued to enhance the long-term intrinsic value and competitive position of our portfolio. In terms of leasing, we posted one of the strongest, most active years on record for the company, achieving a new record high portfolio lease rate, surpassing 98% at year-end. We also leased a record amount of space during the year, and again achieved solid releasing rent growth. Additionally, we continued to work at enhancing our presence on the West Coast through our disciplined, relationship-driven investment program. During 2022, we acquired over 0.5 million square feet of grocery-anchored shopping centers. All of the properties are well-situated in our core markets and are an excellent strategic fit with our existing portfolio.” Tanz added, “Looking ahead, with our strong operating platform, we are well positioned to achieve another productive year in 2023 and continue building long-term value.”
FINANCIAL SUMMARY
For the year ended December 31, 2022, GAAP net income attributable to common stockholders was $51.9 million, or $0.42 per diluted share, as compared to GAAP net income attributable to common stockholders of $53.5 million, or $0.44 per diluted share for the year ended December 31, 2021. Included in GAAP net income for 2022 was a $7.7 million gain on sale of real estate as a result of ROIC’s property disposition activity during 2022, as compared to $22.3 million gain on sale of real estate during 2021. For the three months ended December 31, 2022, GAAP net income attributable to common stockholders was $10.2 million, or $0.08 per diluted share, as compared to GAAP net income attributable to common stockholders of $8.5 million, or $0.07 per diluted share for the three months ended December 31, 2021.
FFO for the year 2022 was $145.3 million, or $1.10 per diluted share, as compared to $127.9 million in FFO, or $1.00 per diluted share, for the year 2021, representing a 10.0% increase in FFO per diluted share. FFO for the fourth quarter of 2022 was $35.9 million, or $0.27 per diluted share, as compared to $32.6 million in FFO, or $0.25 per diluted share for the fourth 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 year 2022, same-center net operating income (NOI) was $196.7 million, as compared to $188.1 million in same-center NOI for the year 2021, representing a 4.6% increase. For the fourth quarter of 2022, same-center NOI increased 5.0% as compared to same-center NOI for the fourth quarter 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.
During 2022, ROIC raised $61.4 million of capital, including $36.2 million from a property disposition and $25.2 million from the issuance of approximately 1.3 million shares of common stock through its ATM program. ROIC utilized the proceeds, together with cash flow from operations and borrowings on its unsecured revolving credit facility, to fund $120.2 million of shopping center acquisitions and retire two mortgage loans totaling $23.5 million. At December 31, 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 December 31, 2022, 95.7% of ROIC’s principal debt outstanding was unsecured, including $88.0 million outstanding on its $600.0 million unsecured revolving credit facility. Additionally, ROIC’s net principal debt-to-annualized EBITDA ratio for the fourth quarter of 2022 was 6.6 times, and 96.6% of its portfolio was unencumbered at December 31, 2022, based on gross leasable area. During 2022, Fitch Ratings, Inc. awarded ROIC an upgrade to its investment-grade corporate debt rating and reaffirmed its stable outlook. Additionally, Moody's Investor Services and S&P Global Ratings each reaffirmed their respective investment-grade corporate debt rating and stable outlook.
ACQUISITION & DISPOSITION SUMMARY
During 2022, ROIC acquired, in three separate transactions, five grocery-anchored shopping centers totaling $120.2 million, encompassing approximately 501,000 square feet. Three of the properties are located within the Seattle metropolitan area, one property is located within the Portland metropolitan area, and one property is located within the San Francisco metropolitan area. Additionally, during 2022 ROIC sold one property for $36.2 million located within the Seattle metropolitan area.
PROPERTY OPERATIONS SUMMARY
At December 31, 2022, ROIC’s portfolio was 98.1% leased, as compared to 97.5% leased at December 31, 2021. For the year 2022, ROIC executed 439 leases, totaling approximately 1.6 million square feet, including 173 new leases, totaling 445,612 square feet, achieving a 23.2% increase in same-space comparative base rent, and 266 renewed leases, totaling 1,162,619 square feet, achieving a 7.8% increase in base rent. During the fourth quarter of 2022, ROIC executed 109 leases, totaling 415,793 square feet, including 48 new leases, totaling 136,750 square feet, achieving an 11.1% increase in same-space comparative base rent, and 61 renewed leases, totaling 279,043 square feet, achieving a 7.2% increase in base rent. ROIC reports same-space comparative base rent on a cash basis.
ENVIRONMENTAL, SOCIAL & GOVERNANCE SUMMARY
During 2022, ROIC continued to advance its environmental, social and governance (ESG) initiatives. As disclosed in its 2022 annual ESG report (issued in July 2022), ROIC achieved a 14% reduction in same-center greenhouse gas emissions and a 15% reduction in same-center common area energy consumption (2021 vs. 2020). For the second consecutive year ROIC was selected as a Green Lease Leader by the U.S. Department of Energy. Specifically, ROIC received the designation of “Gold” in recognition of its efforts to incorporate crucial energy efficiency, cost savings, air quality and sustainability criteria into its leases. Additionally, during 2022 ROIC enhanced its Global Real Estate Sustainability Benchmark public disclosure rating.
DIVIDEND SUMMARY
On December 29, 2022, ROIC distributed a $0.15 per share cash dividend. On February 14, 2023, ROIC’s board of directors declared a cash dividend of $0.15 per share, payable on April 7, 2023 to stockholders of record on March 17, 2023.
2023 GUIDANCE SUMMARY
ROIC currently estimates that GAAP net income for 2023 will be within the range of $0.35 to $0.43 per diluted share, and FFO will be within the range of $1.05 to $1.11 per diluted share.
| 2022 Actual | Year Ended December 31, 2023 | ||||||||||||||||
| Low End | High End | ||||||||||||||||
| (unaudited, amounts in thousands except per share and percentage data) | |||||||||||||||||
| GAAP net income applicable to stockholders | $ | 51,869 | $ | 43,709 | $ | 54,526 | |||||||||||
| Funds from operations (FFO) – diluted | $ | 145,301 | $ | 139,650 | $ | 150,700 | |||||||||||
| GAAP net income per diluted share | $ | 0.42 | $ | 0.35 | $ | 0.43 | |||||||||||
| FFO per diluted share | $ | 1.10 | $ | 1.05 | $ | 1.11 | |||||||||||
| Key Drivers | |||||||||||||||||
| General and administrative expenses | $ | 21,735 | $ | 23,000 | $ | 22,000 | |||||||||||
| Interest expense and other finance expenses | $ | 59,225 | $ | 68,000 | $ | 73,000 | |||||||||||
| Straight-line rent | $ | 2,715 | $ | 1,000 | $ | 1,000 | |||||||||||
| Amortization of above- and below-market rent | $ | 11,947 | $ | 10,000 | $ | 10,000 | |||||||||||
| Bad debt | $ | 2,034 | $ | 5,000 | $ | 3,000 | |||||||||||
| Acquisitions | $ | 120,150 | $ | 100,000 | $ | 200,000 | |||||||||||
| Dispositions | $ | 36,193 | $ | 200,000 | $ | 50,000 | |||||||||||
| Same-center cash NOI growth | 4.6 | % | 2.0 | % | 5.0 | % | |||||||||||
ROIC’s management will discuss guidance, and the underlying assumptions, on ROIC’s February 16, 2023 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 Thursday, February 16, 2023 at 12:00 p.m. Eastern Time / 9:00 a.m. Pacific Time.
To participate in the conference call, click on the following link (ten minutes prior to the call) to register:
https://register.vevent.com/register/BIb65c0bdd569b4cc59cbcd8cdabf2c8cc
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: https://edge.media-server.com/mmc/p/bja5jezf
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:
https://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 December 31, 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)
| December 31, 2022 | December 31, 2021 | ||||||||||
| ASSETS | |||||||||||
| Real Estate Investments: | |||||||||||
| Land | $ | 958,236 | $ | 915,861 | |||||||
| Building and improvements | 2,452,857 | 2,350,294 | |||||||||
| 3,411,093 | 3,266,155 | ||||||||||
| Less: accumulated depreciation | 578,593 | 510,836 | |||||||||
| 2,832,500 | 2,755,319 | ||||||||||
| Mortgage note receivable | 4,786 | 4,875 | |||||||||
| Real Estate Investments, net | 2,837,286 | 2,760,194 | |||||||||
| Cash and cash equivalents | 5,598 | 13,218 | |||||||||
| Restricted cash | 1,861 | 2,145 | |||||||||
| Tenant and other receivables, net | 57,546 | 55,787 | |||||||||
| Deposits | 500 | — | |||||||||
| Acquired lease intangible assets, net | 52,428 | 50,139 | |||||||||
| Prepaid expenses | 5,957 | 5,337 | |||||||||
| Deferred charges, net | 26,683 | 25,017 | |||||||||
| Other assets | 16,420 | 17,007 | |||||||||
| Total assets | $ | 3,004,279 | $ | 2,928,844 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Term loan | $ | 299,253 | $ | 298,889 | |||||||
| Credit facility | 88,000 | — | |||||||||
| Senior Notes | 946,849 | 945,231 | |||||||||
| Mortgage notes payable | 60,917 | 85,354 | |||||||||
| Acquired lease intangible liabilities, net | 152,117 | 136,608 | |||||||||
| Accounts payable and accrued expenses | 22,885 | 48,598 | |||||||||
| Tenants’ security deposits | 7,701 | 7,231 | |||||||||
| Other liabilities | 41,959 | 40,580 | |||||||||
| Total liabilities | 1,619,681 | 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; 124,538,811 and 122,685,266 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 12 | 12 | |||||||||
| Additional paid-in capital | 1,612,126 | 1,577,837 | |||||||||
| Accumulated dividends in excess of earnings | (315,984) | (297,801) | |||||||||
| Accumulated other comprehensive income (loss) | 14 | (3,154) | |||||||||
| Total Retail Opportunity Investments Corp. stockholders’ equity | 1,296,168 | 1,276,894 | |||||||||
| Non-controlling interests | 88,430 | 89,459 | |||||||||
| Total equity | 1,384,598 | 1,366,353 | |||||||||
| Total liabilities and equity | $ | 3,004,279 | $ | 2,928,844 | |||||||
RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Rental revenue | $ | 79,285 | $ | 71,999 | $ | 308,960 | $ | 280,924 | |||||||||||||||
| Other income | 908 | 799 | 3,969 | 3,176 | |||||||||||||||||||
| Total revenues | 80,193 | 72,798 | 312,929 | 284,100 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Property operating | 13,589 | 12,105 | 51,057 | 44,439 | |||||||||||||||||||
| Property taxes | 8,839 | 8,161 | 34,651 | 33,663 | |||||||||||||||||||
| Depreciation and amortization | 25,050 | 23,528 | 97,494 | 92,929 | |||||||||||||||||||
| General and administrative expenses | 5,590 | 5,301 | 21,735 | 19,654 | |||||||||||||||||||
| Other expense | 182 | 229 | 960 | 860 | |||||||||||||||||||
| Total operating expenses | 53,250 | 49,324 | 205,897 | 191,545 | |||||||||||||||||||
| Gain on sale of real estate | — | — | 7,653 | 22,340 | |||||||||||||||||||
| Operating income | 26,943 | 23,474 | 114,685 | 114,895 | |||||||||||||||||||
| Non-operating expenses | |||||||||||||||||||||||
| Interest expense and other finance expenses | (16,049) | (14,362) | (59,225) | (57,535) | |||||||||||||||||||
| Net income | 10,894 | 9,112 | 55,460 | 57,360 | |||||||||||||||||||
| Net income attributable to non-controlling interests | (695) | (598) | (3,591) | (3,852) | |||||||||||||||||||
| Net Income Attributable to Retail Opportunity Investments Corp. | $ | 10,199 | $ | 8,514 | $ | 51,869 | $ | 53,508 | |||||||||||||||
| Earnings per share – basic and diluted | $ | 0.08 | $ | 0.07 | $ | 0.42 | $ | 0.44 | |||||||||||||||
| Dividends per common share | $ | 0.15 | $ | 0.18 | $ | 0.56 | $ | 0.51 | |||||||||||||||
CALCULATION OF FUNDS FROM OPERATIONS
(Unaudited)
(In thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Net income attributable to ROIC | $ | 10,199 | $ | 8,514 | $ | 51,869 | $ | 53,508 | |||||||||||||||
| Plus: Depreciation and amortization | 25,050 | 23,528 | 97,494 | 92,929 | |||||||||||||||||||
| Less: Gain on sale of real estate | — | — | (7,653) | (22,340) | |||||||||||||||||||
| Funds from operations – basic | 35,249 | 32,042 | 141,710 | 124,097 | |||||||||||||||||||
| Net income attributable to non-controlling interests | 695 | 598 | 3,591 | 3,852 | |||||||||||||||||||
| Funds from operations – diluted | $ | 35,944 | $ | 32,640 | $ | 145,301 | $ | 127,949 | |||||||||||||||
SAME-CENTER CASH NET OPERATING INCOME ANALYSIS
(Unaudited)
(In thousands, except number of shopping centers and percentages)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | $ Change | % Change | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
| Number of shopping centers included in same-center analysis | 85 | 85 | 84 | 84 | ||||||||||||||||||||||||||||||||||||||||||||||
| Same-center occupancy | 98.0 | % | 97.5 | % | 0.5 | % | 98.0 | % | 97.5 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Base rents | $ | 52,656 | $ | 50,918 | $ | 1,738 | 3.4 | % | $ | 205,223 | $ | 198,434 | $ | 6,789 | 3.4 | % | ||||||||||||||||||||||||||||||||||
| Percentage rent | 956 | 791 | 165 | 20.9 | % | 1,482 | 970 | 512 | 52.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Recoveries from tenants | 17,978 | 16,596 | 1,382 | 8.3 | % | 69,890 | 65,592 | 4,298 | 6.6 | % | ||||||||||||||||||||||||||||||||||||||||
| Other property income | 667 | 608 | 59 | 9.7 | % | 2,933 | 2,101 | 832 | 39.6 | % | ||||||||||||||||||||||||||||||||||||||||
| Bad debt | (390) | (682) | 292 | (42.8) | % | (1,701) | (2,607) | 906 | (34.8) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 71,867 | 68,231 | 3,636 | 5.3 | % | 277,827 | 264,490 | 13,337 | 5.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Property operating expenses | 13,058 | 12,092 | 966 | 8.0 | % | 48,739 | 43,707 | 5,032 | 11.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Property taxes | 8,259 | 7,974 | 285 | 3.6 | % | 32,405 | 32,727 | (322) | (1.0) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Operating Expenses | 21,317 | 20,066 | 1,251 | 6.2 | % | 81,144 | 76,434 | 4,710 | 6.2 | % | ||||||||||||||||||||||||||||||||||||||||
| Same-Center Cash Net Operating Income | $ | 50,550 | $ | 48,165 | $ | 2,385 | 5.0 | % | $ | 196,683 | $ | 188,056 | $ | 8,627 | 4.6 | % | ||||||||||||||||||||||||||||||||||
SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION
(Unaudited)
(In thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| GAAP operating income | $ | 26,943 | $ | 23,474 | $ | 114,685 | $ | 114,895 | |||||||||||||||
| Depreciation and amortization | 25,050 | 23,528 | 97,494 | 92,929 | |||||||||||||||||||
| General and administrative expenses | 5,590 | 5,301 | 21,735 | 19,654 | |||||||||||||||||||
| Other expense | 182 | 229 | 960 | 860 | |||||||||||||||||||
| Gain on sale of real estate | — | — | (7,653) | (22,340) | |||||||||||||||||||
| Straight-line rent | (427) | (521) | (2,715) | (959) | |||||||||||||||||||
| Amortization of above- and below-market rent | (2,729) | (2,224) | (11,947) | (8,795) | |||||||||||||||||||
Property revenues and other expenses (1) | (265) | (14) | (1,331) | (614) | |||||||||||||||||||
| Total Company cash NOI | 54,344 | 49,773 | 211,228 | 195,630 | |||||||||||||||||||
| Non same-center cash NOI | (3,794) | (1,608) | (14,545) | (7,574) | |||||||||||||||||||
| Same-center cash NOI | $ | 50,550 | $ | 48,165 | $ | 196,683 | $ | 188,056 | |||||||||||||||
____________________
(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
4th 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 December 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 December 31, 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 December 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 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 December 31, 2022 -4- Balance Sheets (dollars in thousands, except par values and share amounts) 12/31/22 12/31/21 ASSETS: Real Estate Investments: Land $ 958,236 $ 915,861 Building and improvements 2,452,857 2,350,294 3,411,093 3,266,155 Less: accumulated depreciation 578,593 510,836 2,832,500 2,755,319 Mortgage note receivable 4,786 4,875 Real Estate Investments, net 2,837,286 2,760,194 Cash and cash equivalents 5,598 13,218 Restricted cash 1,861 2,145 Tenant and other receivables, net 57,546 55,787 Deposits 500 — Acquired lease intangible assets, net 52,428 50,139 Prepaid expenses 5,957 5,337 Deferred charges, net 26,683 25,017 Other assets 16,420 17,007 TOTAL ASSETS $ 3,004,279 $ 2,928,844 LIABILITIES: Term loan $ 299,253 $ 298,889 Credit facility 88,000 — Senior Notes 946,849 945,231 Mortgage notes payable 60,917 85,354 Acquired lease intangible liabilities, net 152,117 136,608 Accounts payable and accrued expenses 22,885 48,598 Tenants’ security deposits 7,701 7,231 Other liabilities 41,959 40,580 TOTAL LIABILITIES 1,619,681 1,562,491 EQUITY: Common stock, $0.0001 par value, 500,000,000 shares authorized 12 12 Additional paid-in capital 1,612,126 1,577,837 Accumulated dividends in excess of earnings (315,984) (297,801) Accumulated other comprehensive income (loss) 14 (3,154) Total Retail Opportunity Investments Corp. stockholders’ equity 1,296,168 1,276,894 Non-controlling interests 88,430 89,459 TOTAL EQUITY 1,384,598 1,366,353 TOTAL LIABILITIES AND EQUITY $ 3,004,279 $ 2,928,844 The Company's Form 10-Q for the quarters ended September 31, 2022, June 30, 2022, and March 31, 2022, and Form 10-K for the years ended December 31, 2022 and 2021 should be read in conjunction with the above information.
Supplemental Disclosure Quarter Ended December 31, 2022 -5- Income Statements Three Months Ended (unaudited) Year Ended 12/31/22 12/31/21 12/31/22 12/31/21 REVENUES: Rental revenue (1) $ 79,285 $ 71,999 $ 308,960 $ 280,924 Other income 908 799 3,969 3,176 TOTAL REVENUES 80,193 72,798 312,929 284,100 OPERATING EXPENSES: Property operating 13,589 12,105 51,057 44,439 Property taxes 8,839 8,161 34,651 33,663 Depreciation and amortization 25,050 23,528 97,494 92,929 General and administrative expenses 5,590 5,301 21,735 19,654 Other expense 182 229 960 860 TOTAL OPERATING EXPENSES 53,250 49,324 205,897 191,545 Gain on sale of real estate — — 7,653 22,340 OPERATING INCOME 26,943 23,474 114,685 114,895 NON-OPERATING EXPENSES: Interest expense and other finance expenses (16,049) (14,362) (59,225) (57,535) NET INCOME 10,894 9,112 55,460 57,360 NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (695) (598) (3,591) (3,852) NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. $ 10,199 $ 8,514 $ 51,869 $ 53,508 NET INCOME PER COMMON SHARE - BASIC AND DILUTED $ 0.08 $ 0.07 $ 0.42 $ 0.44 Weighted average common shares outstanding - basic 123,814 121,232 123,395 119,545 Weighted average common shares outstanding - diluted 132,545 130,066 132,285 128,454 (1) RENTAL REVENUE Base rents $ 57,179 $ 53,023 $ 220,833 $ 205,954 Recoveries from tenants 19,456 16,987 75,499 67,995 Straight-line rent 427 521 2,715 959 Amortization of above- and below-market rent 2,729 2,224 11,947 8,795 Bad debt (506) (756) (2,034) (2,779) TOTAL RENTAL REVENUE $ 79,285 $ 71,999 $ 308,960 $ 280,924 (in thousands, except per share amounts) The Company’s Form 10-Q for the quarters ended September 30, 2022, June 30, 2022 and March 31, 2022, and Form 10-K for the years ended December 31, 2022 and 2021 should be read in conjunction with the above information.
Supplemental Disclosure Quarter Ended December 31, 2022 -6- Funds From Operations (unaudited, in thousands, except per share amounts) Three Months Ended Year Ended 12/31/22 12/31/21 12/31/22 12/31/21 Funds from Operations (FFO): Net income attributable to ROIC common stockholders $ 10,199 $ 8,514 $ 51,869 $ 53,508 Plus: Depreciation and amortization expense 25,050 23,528 97,494 92,929 Less: Gain on sale of real estate — — (7,653) (22,340) FUNDS FROM OPERATIONS - BASIC 35,249 32,042 141,710 124,097 Net income attributable to non-controlling interests 695 598 3,591 3,852 FUNDS FROM OPERATIONS - DILUTED $ 35,944 $ 32,640 $ 145,301 $ 127,949 FUNDS FROM OPERATIONS PER SHARE - BASIC $ 0.28 $ 0.26 $ 1.15 $ 1.04 FUNDS FROM OPERATIONS PER SHARE - DILUTED $ 0.27 $ 0.25 $ 1.10 $ 1.00 Weighted average common shares outstanding - basic 123,814 121,232 123,395 119,545 Weighted average common shares outstanding - diluted 132,545 130,066 132,285 128,454 Common dividends per share $ 0.15 $ 0.11 $ 0.56 $ 0.44 FFO Payout Ratio 55.6 % 44.0 % 50.9 % 44.0 % Additional Disclosures: Non Cash Expense (Income) Straight line rent $ (427) $ (521) $ (2,715) $ (959) Above/below market rent amortization, net (2,729) (2,224) (11,947) (8,795) Non-cash interest (income) expense (15) (14) (57) 45 Deferred financing costs and mortgage premiums, net 675 600 2,559 2,383 Stock based compensation 3,128 3,167 11,949 11,030 Capital Expenditures Tenant improvements $ 7,245 $ 8,424 $ 29,739 $ 25,248 Leasing commissions 526 482 2,006 1,888 Building improvements 490 395 1,110 1,012 Reimbursable property improvements 2,265 848 6,075 1,421 Pad and other development 2,634 2,109 13,725 12,172 Value enhancing tenant improvements 653 2,002 6,761 5,945 (1) Amount excludes the $0.07 special dividend related to gain on sale of real estate in 2021. The above does not purport to disclose all items required under GAAP. (1) (1)
Supplemental Disclosure Quarter Ended December 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 1.9 % Diamond Hills Plaza 34,731 3.55 % 3.61 % 10/1/2025 2.4 % Total Mortgage Debt 60,731 4.05 % 3.70 % 2.1 Years (WA) 4.3 % Unsecured Senior Notes: Senior Notes Due 2023 250,000 5.00 % 5.21 % 12/15/2023 17.9 % Senior Notes Due 2024 250,000 4.00 % 4.21 % 12/15/2024 17.9 % Senior Notes Due 2026 200,000 3.95 % 3.95 % 9/22/2026 14.3 % Senior Notes Due 2027 250,000 4.19 % 4.19 % 12/15/2027 17.9 % Total Unsecured Senior Notes 950,000 4.30 % 4.41 % 2.9 Years (WA) 68.0 % Total Fixed Rate Debt 1,010,731 4.29 % 4.37 % 2.8 Years (WA) 72.3 % Variable Rate Debt Credit Facility 88,000 5.17 % 5.17 % 2/20/2024 (1) 6.3 % Term Loan 300,000 5.38 % 5.38 % 1/20/2025 21.4 % Total Variable Rate Debt 388,000 5.33 % 5.33 % 1.8 Years (WA) 27.7 % TOTAL PRINCIPAL DEBT $ 1,398,731 4.58 % 4.64 % 2.5 Years (WA) 100.0 % Net unamortized premiums on mortgages 288 Net unamortized discounts on notes (1,304) Net unamortized deferred financing charges (2) (2,696) Total Debt $ 1,395,019 (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 December 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 2023 $ 686 $ — $ — $ — $ 250,000 $ 250,686 17.9 % 2024 708 26,000 88,000 — 250,000 364,708 26.1 % 2025 550 32,787 — 300,000 — 333,337 23.8 % 2026 — — — — 200,000 200,000 14.3 % 2027 — — — — 250,000 250,000 17.9 % Thereafter — — — — — — — % $ 1,944 $ 58,787 $ 88,000 $ 300,000 $ 950,000 $ 1,398,731 100.0 % Summary of Unencumbered/Encumbered Properties Number of Percentage Properties GLA of GLA Unencumbered properties 91 10,200,888 96.6 % Encumbered properties 2 359,371 3.4 % 93 10,560,259 100.0 % Summary of Unsecured Debt/Secured Debt Percentage of Total Amount Principal Debt Unsecured principal debt $ 1,338,000 95.7 % Secured principal debt 60,731 4.3 % Total Principal Debt $ 1,398,731 100.0 % (1) Does not include extension options available to ROIC.
Supplemental Disclosure Quarter Ended December 31, 2022 -9- Selected Financial Analysis (unaudited, in thousands, except per share amounts) 12/31/22 09/30/22 06/30/22 03/31/22 12/31/21 Debt coverage ratios, three months ending: Interest coverage ratio (EBITDA/interest expense) 3.2x 3.5x 3.6x 3.6x 3.3x Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 3.2x 3.5x 3.5x 3.5x 3.2x Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 6.6x 6.6x 6.7x 6.4x 7.0x Net principal debt (Total principal debt less cash & equivalents)/TTM EBITDA 6.8x 6.7x 6.9x 6.8x 7.1x Debt/book value ratios, at period end: Total principal debt/total book assets 46.6 % 45.4 % 45.7 % 45.2 % 45.6 % Total principal debt/undepreciated book value 39.0 % 38.3 % 38.6 % 38.3 % 38.8 % Secured principal debt/undepreciated book value 1.7 % 1.7 % 1.7 % 1.8 % 2.5 % Market capitalization calculations, at period end: Common shares outstanding 123,815 123,813 123,613 123,002 121,926 Operating partnership units (OP units) outstanding 8,447 8,447 8,647 8,694 8,542 Common stock price per share $ 15.03 $ 13.76 $ 15.78 $ 19.39 $ 19.60 Total equity market capitalization $ 1,987,894 $ 1,819,900 $ 2,087,066 $ 2,553,590 $ 2,557,170 Total principal debt 1,398,731 1,362,899 1,357,063 1,321,225 1,334,864 TOTAL MARKET CAPITALIZATION $ 3,386,625 $ 3,182,799 $ 3,444,129 $ 3,874,815 $ 3,892,034 Unsecured Senior Notes Financial Covenants: (1) Total debt to total assets not to exceed 60% 41.1 % 40.3 % 40.6 % 40.4 % 40.9 % Total secured debt to total assets not to exceed 40% 1.8 % 1.8 % 1.8 % 1.9 % 2.6 % Total unencumbered assets to total unsecured debt not to be less than 150% 245.0 % 250.5 % 248.3 % 250.1 % 246.1 % Consolidated income available for debt service to interest expense not to be less than 1.5:1 3.5x 3.5x 3.4x 3.3x 3.2x (1) Calculated in accordance with GAAP pursuant to underlying bond indentures.
Supplemental Disclosure Quarter Ended December 31, 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 December 31, 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 % $ 2,024 Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy Claremont Promenade * Claremont CA 09/23/10 92,215 87.0 % 2,173 Super King Supermarket Gateway Village * Chino Hills CA 12/17/10 96,959 96.9 % 2,959 Sprouts Market Seabridge Marketplace * Oxnard CA 05/31/12 98,348 95.8 % 1,945 Safeway (Vons) Supermarket Glendora Shopping Center * Glendora CA 08/01/12 106,535 97.3 % 1,502 Albertsons Supermarket Redondo Beach Plaza * Redondo Beach CA 12/28/12 110,509 100.0 % 2,415 Safeway (Vons) Supermarket, Petco Diamond Bar Town Center * Diamond Bar CA 02/01/13 100,342 99.1 % 2,442 Walmart Neighborhood Market, Crunch Fitness Diamond Hills Plaza * Diamond Bar CA 04/22/13 139,472 99.1 % 4,181 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 98.8 % 13,663 Sprouts Market, Trader Joes, Kroger (Ralph’s) Supermarket (2), TJ Maxx Moorpark Town Center * Moorpark CA 12/03/14 133,547 92.6 % 2,058 Kroger (Ralph’s) Supermarket, CVS Pharmacy Ontario Plaza * Ontario CA 01/06/15 150,149 96.4 % 2,421 El Super Supermarket, Rite Aid Pharmacy Park Oaks Shopping Center * Thousand Oaks CA 01/06/15 110,092 95.7 % 2,743 Safeway (Vons) Supermarket, Dollar Tree Warner Plaza * Woodland Hills CA 12/31/15 110,918 97.9 % 4,601 Sprouts Market, Kroger (Ralph’s) Supermarket (2), Rite Aid Pharmacy (2) Magnolia Shopping Center * Santa Barbara CA 03/10/16 116,089 96.8 % 2,356 Kroger (Ralph’s) Supermarket Casitas Plaza Shopping Center * Carpinteria CA 03/10/16 105,118 99.2 % 1,944 Albertsons Supermarket, CVS Pharmacy Bouquet Center * Santa Clarita CA 04/28/16 148,903 97.3 % 3,804 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less North Ranch Shopping Center * Westlake Village CA 06/01/16 146,444 92.0 % 4,694 Kroger (Ralph’s) Supermarket, Trader Joe’s, Rite Aid Pharmacy, Petco The Knolls * Long Beach CA 10/03/16 52,021 96.2 % 1,385 Trader Joe’s, Pet Food Express The Terraces * Rancho Palos Verdes CA 03/17/17 172,922 94.0 % 3,636 Trader Joe’s, Marshall’s, LA Fitness Los Angeles metro area total 2,941,369 96.9 % $ 65,580 Seattle metro area Meridian Valley Plaza * Kent WA 02/01/10 51,597 100.0 % $ 899 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 % 2,656 PCC Community Markets, Rite Aid Pharmacy, Petco Hawks Prairie Shopping Center * Lacey WA 09/09/11 157,529 100.0 % 1,998 Safeway Supermarket, Dollar Tree, Big Lots, Ace Hardware The Kress Building * Seattle WA 09/30/11 74,616 70.0 % 1,297 IGA Supermarket, TJMaxx Gateway Shopping Center * Marysville WA 02/16/12 104,298 100.0 % 2,672 WinCo Foods (2), Rite Aid Pharmacy, Ross Dress For Less Canyon Crossing * Puyallup WA 04/15/13 120,398 97.0 % 2,846 Safeway Supermarket Crossroads Shopping Center * Bellevue WA 2010/2013 473,131 100.0 % 12,922 Kroger (QFC) Supermarket, Dick’s Sporting Goods, Edgeworks Climbing Bellevue Marketplace * Bellevue WA 12/10/15 113,758 100.0 % 3,697 Asian Family Market Four Corner Square * Maple Valley WA 12/21/15 119,531 100.0 % 2,672 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden Bridle Trails Shopping Center * Kirkland WA 10/17/16 110,257 100.0 % 2,461 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 97.6 % 2,991 WinCo Foods, LA Fitness, Dollar Tree, Petco North Lynnwood Shopping Center * Lynnwood WA 10/19/17 63,606 100.0 % 1,138 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 11/10/21 189,960 100.0 % 2,380 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 % 1,126 Albertsons Supermarket, Crunch Fitness Thomas Lake Shopping Center Mill Creek WA 08/19/22 111,311 100.0 % 2,013 Albertsons Supermarket, Rite Aid Pharmacy Ballinger Village Shoreline WA 08/19/22 110,849 97.7 % 2,326 Thriftway Supermarket, Rite Aid Pharmacy Seattle metro area total 2,465,275 98.7 % $ 52,057 (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. * Denotes properties in same center pool for 4Q 2022.
Supplemental Disclosure Quarter Ended December 31, 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 % $ 4,032 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 % 2,090 Safeway Supermarket, U.S. Postal Service Heritage Market Center * Vancouver WA 09/23/10 107,468 100.0 % 1,905 Safeway Supermarket, Dollar Tree Division Crossing * Portland OR 12/22/10 103,561 100.0 % 1,332 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 % 2,720 Albertsons Supermarket, Dollar Tree, Ace Hardware Robinwood Shopping Center * West Linn OR 08/23/13 70,831 100.0 % 1,154 Walmart Neighborhood Market Tigard Marketplace * Tigard OR 02/18/14 136,889 100.0 % 2,271 H-Mart Supermarket, Bi-Mart Wilsonville Town Center * Wilsonville OR 12/11/14 167,829 99.1 % 3,060 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree Tigard Promenade * Tigard OR 07/28/15 88,043 97.7 % 1,498 Safeway Supermarket, Petco Sunnyside Village Square * Happy Valley OR 07/28/15 92,278 100.0 % 1,678 Grocery Outlet Supermarket, Snap Fitness, Ace Hardware Johnson Creek Center * Happy Valley OR 11/09/15 108,588 100.0 % 2,333 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 % 2,124 Grocery Outlet Supermarket, Rite Aid Pharmacy, Petco Riverstone Marketplace * Vancouver WA 10/11/17 95,774 100.0 % 2,391 Kroger (QFC) Supermarket King City Plaza * King City OR 05/18/18 62,676 100.0 % 1,031 Grocery Outlet Supermarket, Anytime Fitness Powell Valley Junction Gresham OR 04/01/22 108,639 100.0 % 1,237 Walmart Neighborhood Market Portland metro area total 1,860,095 99.8 % $ 35,125 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 01/06/11 141,093 97.4 % 3,156 Save Mart (Lucky California) Supermarket, Planet Fitness Country Club Gate Center * Pacific Grove CA 07/08/11 109,331 98.4 % 2,406 Save Mart (Lucky California) Supermarket, Rite Aid Pharmacy Marlin Cove Shopping Center * Foster City CA 05/04/12 73,943 98.7 % 2,617 99 Ranch Market The Village at Novato * Novato CA 07/24/12 20,081 100.0 % 600 Trader Joe’s Santa Teresa Village * San Jose CA 11/08/12 131,263 97.9 % 3,294 Grocery Outlet Supermarket, Dollar Tree, MedVet Silicon Valley Granada Shopping Center * Livermore CA 06/27/13 71,525 100.0 % 1,544 Save Mart (Lucky California) Supermarket Country Club Village * San Ramon CA 11/26/13 111,093 96.5 % 2,202 Walmart Neighborhood Market, CVS Pharmacy North Park Plaza * San Jose CA 04/30/14 76,697 97.3 % 2,685 H-Mart Supermarket Winston Manor * South San Francisco CA 01/07/15 49,852 94.0 % 1,763 Grocery Outlet Supermarket Jackson Square * Hayward CA 07/01/15 114,220 96.1 % 2,444 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness Gateway Centre * San Ramon CA 09/01/15 112,553 91.7 % 2,519 Save Mart (Lucky California) Supermarket, Walgreens Iron Horse Plaza * Danville CA 12/04/15 61,915 100.0 % 2,305 Lunardi’s Market Monterey Center * Monterey CA 07/14/16 25,626 100.0 % 1,091 Trader Joe’s 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 % 1,614 Safeway Supermarket Canyon Creek Plaza * San Jose CA 09/01/21 64,662 98.0 % 2,152 New Seasons Market Village Oaks Shopping Center Martinez CA 05/17/22 79,875 97.9 % 1,442 Save Mart (Lucky California) Supermarket, Rite Aid Pharmacy (2) San Francisco metro area total 1,451,744 97.6 % $ 37,195 (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. * Denotes properties in same center pool for 4Q 2022.
Supplemental Disclosure Quarter Ended December 31, 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 98.9 % $ 2,429 Kroger (Food 4 Less) Supermarket, Marshall’s Sycamore Creek * Corona CA 09/30/10 74,198 98.2 % 1,919 Safeway (Vons) Supermarket, CVS Pharmacy (2) Desert Springs Marketplace * Palm Desert CA 02/17/11 113,718 95.7 % 2,838 Kroger (Ralph’s) Supermarket, Rite Aid Pharmacy Cypress Center West * Cypress CA 12/04/12 112,080 98.4 % 2,170 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 99.7 % 4,741 Trader Joe’s Peninsula Marketplace * Huntington Beach CA 10/15/13 95,416 99.0 % 2,515 Kroger (Ralph’s) Supermarket, Planet Fitness Fullerton Crossroads * Fullerton CA 10/11/17 219,899 100.0 % 3,682 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 % 3,100 Smart & Final Extra Supermarket Orange Country metro area total 1,093,738 98.3 % $ 25,178 San Diego metro area Marketplace Del Rio * Oceanside CA 01/03/11 183,787 95.7 % $ 3,594 Stater Brothers Supermarket, Walgreens, Planet Fitness Renaissance Towne Centre * San Diego CA 08/03/11 52,866 98.2 % 2,696 CVS Pharmacy Bay Plaza * San Diego CA 10/05/12 73,324 98.0 % 2,268 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 % 3,554 Mitsuwa Supermarket, Ross Dress For Less, Staples Creekside Plaza * Poway CA 02/28/14 133,914 97.9 % 3,367 Stater Brothers Supermarket, AMC Theatres Palomar Village Temecula CA 10/12/21 125,130 98.4 % 2,130 Albertsons Supermarket, CVS Pharmacy San Diego metro area total 748,038 98.0 % $ 18,594 Number of Owned % Metro Area Summary Centers GLA Leased ABR (1) Los Angeles 20 2,941,369 96.9 % $ 65,580 Seattle 21 2,465,275 98.7 % 52,057 Portland 18 1,860,095 99.8 % 35,125 San Francisco 18 1,451,744 97.6 % 37,195 Orange County 9 1,093,738 98.3 % 25,178 San Diego 7 748,038 98.0 % 18,594 TOTAL SHOPPING CENTER PORTFOLIO 93 10,560,259 98.1 % $ 233,729 (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. * Denotes properties in same center pool for 4Q 2022.
Supplemental Disclosure Quarter Ended December 31, 2022 -14- Three Months Ended Year Ended 12/31/22 12/31/21 $ Change % Change 12/31/22 12/31/21 $ Change % Change Number of shopping centers included in same-center analysis (1) 85 85 84 84 Same-center occupancy 98.0 % 97.5 % 0.5 % 98.0 % 97.5 % 0.5 % REVENUES: Base rents $ 52,656 $ 50,918 $ 1,738 3.4 % $ 205,223 $ 198,434 $ 6,789 3.4 % Percentage rent 956 791 165 20.9 % 1,482 970 512 52.8 % Recoveries from tenants 17,978 16,596 1,382 8.3 % 69,890 65,592 4,298 6.6 % Other property income 667 608 59 9.7 % 2,933 2,101 832 39.6 % Bad debt (390) (682) 292 (42.8) % (1,701) (2,607) 906 (34.8) % TOTAL REVENUES 71,867 68,231 3,636 5.3 % 277,827 264,490 13,337 5.0 % OPERATING EXPENSES: Property operating expenses 13,058 12,092 966 8.0 % 48,739 43,707 5,032 11.5 % Property taxes 8,259 7,974 285 3.6 % 32,405 32,727 (322) (1.0) % TOTAL OPERATING EXPENSES 21,317 20,066 1,251 6.2 % 81,144 76,434 4,710 6.2 % SAME-CENTER CASH NET OPERATING INCOME $ 50,550 $ 48,165 $ 2,385 5.0 % $ 196,683 $ 188,056 $ 8,627 4.6 % SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION GAAP Operating Income $ 26,943 $ 23,474 $ 114,685 $ 114,895 Depreciation and amortization 25,050 23,528 97,494 92,929 General and administrative expenses 5,590 5,301 21,735 19,654 Other expense 182 229 960 860 Gain on sale of real estate — — (7,653) (22,340) Straight-line rent (427) (521) (2,715) (959) Amortization of above- and below-market rent (2,729) (2,224) (11,947) (8,795) Property revenues and other expenses (2) (265) (14) (1,331) (614) TOTAL COMPANY CASH NET OPERATING INCOME 54,344 49,773 211,228 195,630 Non Same-Center Cash NOI (3,794) (1,608) (14,545) (7,574) SAME-CENTER CASH NET OPERATING INCOME $ 50,550 $ 48,165 $ 196,683 $ 188,056 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 December 31, 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 5.7 % 2 Kroger Supermarkets 11 488,735 4.7 % 7,560 3.2 % 3 Rite Aid Pharmacy 16 297,738 2.9 % 4,004 1.7 % 4 Save Mart Supermarkets 5 234,713 2.3 % 3,495 1.5 % 5 Trader Joe’s 9 109,307 1.0 % 3,166 1.4 % 6 Grocery Outlet Supermarkets 10 225,004 2.2 % 3,096 1.3 % 7 JP Morgan Chase 21 86,893 0.8 % 2,992 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 1.1 % 10 Marshall’s / TJMaxx 5 152,459 1.5 % 2,563 1.1 % Top 10 Tenants Total 105 2,954,048 28.5 % $ 45,558 19.5 % Other Tenants 1,943 7,399,722 71.5 % 188,171 80.5 % Total Portfolio 2,048 10,353,770 100.0 % $ 233,729 100.0 %
Supplemental Disclosure Quarter Ended December 31, 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. 2023 13 393,214 3.8 % $ 7,720 3.3 % $ 19.63 2024 14 496,577 4.8 % 7,997 3.4 % 16.10 2025 22 724,936 7.0 % 10,256 4.4 % 14.15 2026 24 784,371 7.6 % 10,203 4.4 % 13.01 2027 14 460,659 4.4 % 5,364 2.3 % 11.64 2028 27 947,961 9.2 % 15,064 6.4 % 15.89 2029 13 463,575 4.5 % 7,301 3.1 % 15.75 2030 7 242,126 2.3 % 3,828 1.6 % 15.81 2031 10 336,035 3.2 % 5,047 2.2 % 15.02 2032 7 236,380 2.3 % 3,463 1.5 % 14.65 2033+ 22 744,966 7.2 % 11,687 5.0 % 15.69 173 5,830,800 56.3 % $ 87,930 37.6 % $ 15.08 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. 2023 269 465,945 4.5 % $ 16,368 7.0 % $ 35.13 2024 296 643,915 6.2 % 20,614 8.8 % 32.01 2025 276 619,840 6.0 % 19,569 8.4 % 31.57 2026 277 628,964 6.1 % 20,313 8.7 % 32.30 2027 286 690,342 6.7 % 22,096 9.5 % 32.01 2028 147 406,167 3.9 % 12,916 5.5 % 31.80 2029 63 198,343 1.9 % 6,253 2.7 % 31.52 2030 51 167,318 1.6 % 5,551 2.4 % 33.18 2031 59 205,548 2.0 % 6,198 2.7 % 30.15 2032 65 206,640 2.0 % 6,717 2.8 % 32.50 2033+ 86 289,948 2.8 % 9,204 3.9 % 31.74 1,875 4,522,970 43.7 % $ 145,799 62.4 % $ 32.23 All Tenants Number of Leased Percent of Total Percent of ABR Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2023 282 859,159 8.3 % $ 24,088 10.3 % $ 28.04 2024 310 1,140,492 11.0 % 28,611 12.2 % 25.09 2025 298 1,344,776 13.0 % 29,825 12.8 % 22.18 2026 301 1,413,335 13.7 % 30,516 13.1 % 21.59 2027 300 1,151,001 11.1 % 27,460 11.8 % 23.86 2028 174 1,354,128 13.1 % 27,980 11.9 % 20.66 2029 76 661,918 6.4 % 13,554 5.8 % 20.48 2030 58 409,444 3.9 % 9,379 4.0 % 22.91 2031 69 541,583 5.2 % 11,245 4.9 % 20.76 2032 72 443,020 4.3 % 10,180 4.3 % 22.98 2033+ 108 1,034,914 10.0 % 20,891 8.9 % 20.19 2,048 10,353,770 100.0 % $ 233,729 100.0 % $ 22.57 (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 December 31, 2022 -17- Leasing Summary For the Three Months Ended December 31, 2022 For the Year Ended December 31, 2022 New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 46 2 48 170 3 173 Gross Leasable Area (sq. ft.) 93,206 43,544 136,750 384,828 60,784 445,612 Initial Base Rent ($/sq. ft.) (1) $ 28.66 $ 14.25 $ 24.07 $ 29.10 $ 17.02 $ 27.45 Tenant Improvements ($/sq. ft.) $ — $ — $ — $ 0.56 $ — $ 0.49 Leasing Commissions ($/sq. ft.) $ 2.79 $ — $ 1.90 $ 2.87 $ 1.36 $ 2.66 Weighted Average Lease Term (Yrs.) (2) 6.4 15.6 9.4 7.7 14.2 8.6 Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 58 3 61 245 21 266 Gross Leasable Area (sq. ft.) 167,389 111,654 279,043 546,652 615,967 1,162,619 Initial Base Rent ($/sq. ft.) (1) $ 30.20 $ 15.90 $ 24.48 $ 34.08 $ 15.03 $ 23.99 Tenant Improvements ($/sq. ft.) $ 0.30 $ — $ 0.18 $ 0.66 $ 0.69 $ 0.67 Leasing Commissions ($/sq. ft.) $ 0.09 $ — $ 0.05 $ 0.03 $ 0.04 $ 0.03 Weighted Average Lease Term (Yrs.) (2) 4.8 5.8 5.2 5.0 5.9 5.5 Total Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 104 5 109 415 24 439 Gross Leasable Area (sq. ft.) 260,595 155,198 415,793 931,480 676,751 1,608,231 Initial Base Rent ($/sq. ft.) (1) $ 29.65 $ 15.44 $ 24.35 $ 32.02 $ 15.21 $ 24.95 Tenant Improvements ($/sq. ft.) $ 0.20 $ — $ 0.12 $ 0.62 $ 0.63 $ 0.62 Leasing Commissions ($/sq. ft.) $ 1.06 $ — $ 0.66 $ 1.20 $ 0.16 $ 0.76 Weighted Average Lease Term (Yrs.) (2) 5.4 8.6 6.6 6.1 6.7 6.4 (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 December 31, 2022 -18- Same-Space Comparative Leasing Summary For the Three Months Ended December 31, 2022 For the Year Ended December 31, 2022 New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 17 2 19 79 3 82 Comparative GLA (sq. ft.) (1) 33,503 43,544 77,047 181,858 60,784 242,642 Prior Base Rent ($/sq. ft.) (2) $ 28.57 $ 11.90 $ 19.15 $ 25.92 $ 14.73 $ 23.12 Initial Base Rent ($/sq. ft.) $ 30.38 $ 14.25 $ 21.27 $ 32.31 $ 17.02 $ 28.48 Percentage Change in Base Rents 6.3 % 19.8 % 11.1 % 24.6 % 15.5 % 23.2 % Tenant Improvements ($/sq. ft.) $ — $ — $ — $ 0.32 $ — $ 0.24 Leasing Commissions ($/sq. ft.) $ 0.76 $ — $ 0.33 $ 2.73 $ 1.36 $ 2.38 Weighted Average Lease Term (Yrs.) (3) 6.1 15.6 11.5 8.5 14.2 9.9 Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 58 3 61 245 21 266 Comparative GLA (sq. ft.) 167,389 111,654 279,043 546,652 615,967 1,162,619 Prior Base Rent ($/sq. ft.) (2) $ 28.29 $ 14.65 $ 22.83 $ 31.75 $ 13.82 $ 22.25 Initial Base Rent ($/sq. ft.) $ 30.20 $ 15.90 $ 24.48 $ 34.08 $ 15.03 $ 23.99 Percentage Change in Base Rents 6.8 % 8.5 % 7.2 % 7.3 % 8.7 % 7.8 % Tenant Improvements ($/sq. ft.) $ 0.30 $ — $ 0.18 $ 0.66 $ 0.69 $ 0.67 Leasing Commissions ($/sq. ft.) $ 0.09 $ — $ 0.05 $ 0.03 $ 0.04 $ 0.03 Weighted Average Lease Term (Yrs.) (3) 4.8 5.8 5.2 5.0 5.9 5.5 Total Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 75 5 80 324 24 348 Comparative GLA (sq. ft.) (1) 200,892 155,198 356,090 728,510 676,751 1,405,261 Prior Base Rent ($/sq. ft.) (2) $ 28.34 $ 13.88 $ 22.03 $ 30.30 $ 13.90 $ 22.40 Initial Base Rent ($/sq. ft.) $ 30.23 $ 15.44 $ 23.78 $ 33.64 $ 15.21 $ 24.76 Percentage Change in Base Rents 6.7 % 11.2 % 7.9 % 11.0 % 9.4 % 10.5 % Tenant Improvements ($/sq. ft.) $ 0.25 $ — $ 0.14 $ 0.57 $ 0.63 $ 0.60 Leasing Commissions ($/sq. ft.) $ 0.20 $ — $ 0.11 $ 0.70 $ 0.16 $ 0.44 Weighted Average Lease Term (Yrs.) (3) 5.0 8.6 6.6 5.9 6.7 6.3 (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 December 31, 2022 -19- Leased vs. Billed Summary (dollars in thousands) 12/31/22 09/30/22 06/30/22 03/31/22 % leased at beginning of quarter 97.8 % 97.6 % 97.2 % 97.5 % % billed at beginning of quarter 93.3 % 93.7 % 92.6 % 92.8 % ABR of new leases signed/not yet commenced - at beginning of quarter $ 9,115 $ 7,921 $ 9,603 $ 10,601 less: ABR of new leases commenced during quarter (3,385) (1,377) (2,726) (2,019) less: ABR of new leases related to disposed properties — (152) — — plus: ABR of new leases signed during quarter 1,895 2,723 1,044 1,021 ABR of new leases signed/not yet commenced - at end of quarter $ 7,625 $ 9,115 $ 7,921 $ 9,603 % leased at end of quarter 98.1 % 97.8 % 97.6 % 97.2 % % billed at end of quarter 94.2 % 93.3 % 93.7 % 92.6 % ABR of new leases commenced during quarter - actual cash received $ 430 $ 231 $ 295 $ 380
Supplemental Disclosure Quarter Ended December 31, 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 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. Christopher Wimmer 646.582.3412 Moody’s Investors Service Alice Chung 212.553.2949 S&P Global Ratings Michael Souers 212.438.2508