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 14, 2024
(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 14, 2024, Retail Opportunity Investments Corp. (the "Company") issued an earnings release announcing its financial results for the quarter and year ended December 31, 2023. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference. On February 14, 2024, in connection with this earnings release, the Company posted certain supplemental information regarding the Company's operations for the quarter ended December 31, 2023 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 14, 2024 | 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 14, 2024
Retail Opportunity Investments Corp. Reports 2023 Results
San Diego, CA, February 14, 2024 - Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the year and three months ended December 31, 2023.
YEAR 2023 HIGHLIGHTS
•$34.5 million of net income attributable to common stockholders ($0.27 per diluted share)
•$140.9 million in Funds From Operations(1) ($1.06 per diluted share)
•3.7% increase in same-center cash net operating income (2023 vs. 2022)
•97.7% portfolio lease rate at year-end
•1.7 million square feet leased (all-time record activity)
•22.2% increase in same-space cash rents on new leases (6.7% increase on renewals)
•$350.0 million unsecured senior notes issued
•$250.0 million December 2023 unsecured senior notes retired
•$100.0 million of floating-rate debt repaid
•$150.0 million of floating-rate debt fixed via interest rate swap agreements
•91.0% of principal debt outstanding effectively fixed-rate at year-end (vs. 72.3% at 12/31/22)
•96.6% of portfolio’s gross leasable area unencumbered at year-end
•Unsecured credit facility maturity extended by three years
4TH QUARTER 2023 HIGHLIGHTS
•$8.0 million of net income attributable to common stockholders ($0.06 per diluted share)
•$35.5 million in Funds From Operations(1) ($0.27 per diluted share)
•3.3% increase in same-center cash net operating income (4Q‘23 vs. 4Q‘22)
•25.3% increase in same-space cash rents on new leases (7.2% increase on renewals)
•$21.8 million grocery-anchored shopping center acquired
•$12.8 million of common equity raised
•6.2x net principal debt-to-annualized EBITDA ratio for 4Q‘23 (vs. 6.6x for 4Q‘22)
•$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, “Capitalizing on the strong fundamentals and demand for space across our portfolio, during 2023 we achieved a number of new leasing records and milestones for the company. We leased a record amount of space and, for the eleventh consecutive year, we achieved solid releasing rent growth, including a 22.2% increase in cash base rents on same-space new leases signed during 2023. In addition to enhancing ROIC’s portfolio through our leasing initiatives, we also worked to enhance our
financial strength and profile. During 2023, we reduced our floating-rate debt by $250.0 million, balanced our debt maturity schedule and reduced ROIC’s quarterly net-debt ratio to a new, nine-year low, as of the fourth quarter.” Tanz added, “Looking ahead, with our well established grocery-anchored portfolio, diverse tenant base and longstanding West Coast market presence and focus, we believe that we are poised to continue driving solid operating results and building longterm value well into the future.”
FINANCIAL SUMMARY
For the year ended December 31, 2023, GAAP net income attributable to common stockholders was $34.5 million, or $0.27 per diluted share, as compared to GAAP net income attributable to common stockholders of $51.9 million, or $0.42 per diluted share for the year ended December 31, 2022. Included in GAAP net income for the year ended December 31, 2022, was a $7.7 million gain on sale of real estate. For the three months ended December 31, 2023, GAAP net income attributable to common stockholders was $8.0 million, or $0.06 per diluted share, as compared to GAAP net income attributable to common stockholders of $10.2 million, or $0.08 per diluted share for the three months ended December 31, 2022.
FFO for the year 2023 was $140.9 million, or $1.06 per diluted share, as compared to $145.3 million in FFO, or $1.10 per diluted share, for the year 2022. FFO for the fourth quarter of 2023 was $35.5 million, or $0.27 per diluted share, as compared to $35.9 million in FFO, or $0.27 per diluted share for the fourth quarter of 2022. 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 2023, same-center net operating income (NOI) was $211.4 million, as compared to $203.9 million in same-center NOI for the year 2022, representing a 3.7% increase. For the fourth quarter of 2023, same-center NOI increased 3.3% as compared to same-center NOI for the fourth quarter of 2022. 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 2023, ROIC raised $362.8 million of gross proceeds, including $350.0 million through the issuance of unsecured senior notes in September 2023 (due October 2028), and $12.8 million through the issuance of approximately 0.9 million shares of common stock in December 2023. ROIC utilized the proceeds, together with cash flow from operations and borrowings on its unsecured revolving credit facility, to retire its operating partnership’s $250.0 million unsecured senior notes (due December 2023), reduce, by $100.0 million, floating-rate borrowings outstanding on its unsecured term loan, and acquire a grocery-anchored shopping center for $21.8 million. Additionally, during 2023, ROIC entered into interest rate swap agreements, effectively fixing the interest rate on $150.0 million of floating-rate debt at 5.4% through August 2024. ROIC also amended its $600.0 million unsecured credit facility, extending the maturity date to March 2027.
At December 31, 2023, ROIC had total real estate assets (before accumulated depreciation) of approximately $3.5 billion and approximately $1.4 billion of principal debt outstanding, of which 91.0% was effectively fixed-rate. Additionally, ROIC’s net principal debt-to-annualized EBITDA ratio for the fourth quarter of 2023 was 6.2 times, and 96.6% of its portfolio was unencumbered at December 31, 2023, based on gross leasable area. During 2023, Moody's Investor Services, S&P Global Ratings and Fitch Ratings, Inc. each reaffirmed their respective investment-grade corporate debt rating and stable outlook.
ACQUISITION SUMMARY
Foothill Plaza
In December 2023, ROIC acquired Foothill Plaza for $21.8 million. The shopping center is approximately 65,000 square feet and is anchored by Sprouts Market. The property is located in La Verne, California, within the Los Angeles metropolitan area, and is currently 100% leased.
PROPERTY OPERATIONS SUMMARY
At December 31, 2023, ROIC’s portfolio was 97.7% leased. For the year 2023, ROIC executed 414 leases, totaling 1,709,720 square feet, including 145 new leases, totaling 381,852 square feet, achieving a 22.2% increase in same-space comparative base rent, and 269 renewed leases, totaling 1,327,868 square feet, achieving a 6.7% increase in base rent. During the fourth quarter of 2023, ROIC executed 84 leases, totaling 255,689 square feet, including 32 new leases, totaling 90,084 square feet, achieving a 25.3% increase in same-space comparative base rent, and 52 renewed leases, totaling 165,605 square feet, achieving a 7.2% increase in base rent. ROIC reports same-space comparative base rent on a cash basis.
DIVIDEND SUMMARY
On January 5, 2024, ROIC distributed a $0.15 per share cash dividend. On February 13, 2024, the Board declared a cash dividend of $0.15 per share, payable on April 5, 2024 to stockholders of record on March 15, 2024.
2024 GUIDANCE SUMMARY
ROIC currently estimates that GAAP net income for 2024 will be within the range of $0.24 to $0.34 per diluted share, and FFO will be within the range of $1.03 to $1.09 per diluted share.
| 2023 Actual | Year Ended December 31, 2024 | |||||||||||||||||||
| Low End | High End | |||||||||||||||||||
| (unaudited, amounts in thousands except per share and percentage data) | ||||||||||||||||||||
| GAAP net income applicable to stockholders | $ | 34,534 | $ | 29,400 | $ | 45,300 | ||||||||||||||
| Funds From Operations – diluted | $ | 140,881 | $ | 136,500 | $ | 152,600 | ||||||||||||||
| GAAP net income per diluted share | $ | 0.27 | $ | 0.24 | $ | 0.34 | ||||||||||||||
| Funds From Operations per diluted share | $ | 1.06 | $ | 1.03 | $ | 1.09 | ||||||||||||||
| Key Drivers | ||||||||||||||||||||
| General and administrative expenses | $ | 21,854 | $ | 23,000 | $ | 22,500 | ||||||||||||||
| Interest expense and other finance expenses | $ | 73,189 | $ | 80,000 | $ | 78,000 | ||||||||||||||
| Straight-line rent | $ | 1,855 | $ | — | $ | 1,500 | ||||||||||||||
| Amortization of above- and below-market rent | $ | 11,172 | $ | 14,000 | $ | 14,000 | ||||||||||||||
| Bad debt | $ | 3,369 | $ | 5,000 | $ | 3,000 | ||||||||||||||
| Acquisitions (net of dispositions) | $ | 21,750 | $ | 100,000 | $ | 300,000 | ||||||||||||||
| Equity issued | $ | 12,828 | $ | 60,000 | $ | 180,000 | ||||||||||||||
| Same-center NOI growth | 3.7 | % | 1.0 | % | 2.0 | % | ||||||||||||||
ROIC will discuss guidance, and the underlying assumptions, on its February 15, 2024 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 15, 2024 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/BIfe506a32ae5342cda1ec372ea1fbd0a3
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/xecydpjk
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, 2023, ROIC owned 94 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, 2023 | December 31, 2022 | ||||||||||
| ASSETS | |||||||||||
| Real Estate Investments: | |||||||||||
| Land | $ | 967,251 | $ | 958,236 | |||||||
| Building and improvements | 2,500,647 | 2,452,857 | |||||||||
| 3,467,898 | 3,411,093 | ||||||||||
| Less: accumulated depreciation | 654,543 | 578,593 | |||||||||
| 2,813,355 | 2,832,500 | ||||||||||
| Mortgage note receivable | 4,694 | 4,786 | |||||||||
| Real Estate Investments, net | 2,818,049 | 2,837,286 | |||||||||
| Cash and cash equivalents | 6,302 | 5,598 | |||||||||
| Restricted cash | 2,116 | 1,861 | |||||||||
| Tenant and other receivables, net | 61,193 | 57,546 | |||||||||
| Deposits | — | 500 | |||||||||
| Acquired lease intangible assets, net | 42,791 | 52,428 | |||||||||
| Prepaid expenses | 3,354 | 5,957 | |||||||||
| Deferred charges, net | 27,294 | 26,683 | |||||||||
| Other assets | 16,541 | 16,420 | |||||||||
| Total assets | $ | 2,977,640 | $ | 3,004,279 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Term loan | $ | 199,745 | $ | 299,253 | |||||||
| Credit facility | 75,000 | 88,000 | |||||||||
| Senior Notes | 1,043,593 | 946,849 | |||||||||
| Mortgage notes payable | 60,052 | 60,917 | |||||||||
| Acquired lease intangible liabilities, net | 137,820 | 152,117 | |||||||||
| Accounts payable and accrued expenses | 50,598 | 22,885 | |||||||||
| Tenants’ security deposits | 8,205 | 7,701 | |||||||||
| Other liabilities | 39,420 | 41,959 | |||||||||
| Total liabilities | 1,614,433 | 1,619,681 | |||||||||
| 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; 126,904,085 and 124,538,811 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 13 | 12 | |||||||||
| Additional paid-in capital | 1,643,908 | 1,612,126 | |||||||||
| Accumulated dividends in excess of earnings | (357,160) | (315,984) | |||||||||
| Accumulated other comprehensive income | 559 | 14 | |||||||||
| Total Retail Opportunity Investments Corp. stockholders’ equity | 1,287,320 | 1,296,168 | |||||||||
| Non-controlling interests | 75,887 | 88,430 | |||||||||
| Total equity | 1,363,207 | 1,384,598 | |||||||||
| Total liabilities and equity | $ | 2,977,640 | $ | 3,004,279 | |||||||
RETAIL OPPORTUNITY INVESTMENTS CORP.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Rental revenue | $ | 82,154 | $ | 79,285 | $ | 319,056 | $ | 308,960 | |||||||||||||||
| Other income | 2,497 | 908 | 8,676 | 3,969 | |||||||||||||||||||
| Total revenues | 84,651 | 80,193 | 327,732 | 312,929 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Property operating | 14,173 | 13,589 | 55,166 | 51,057 | |||||||||||||||||||
| Property taxes | 8,756 | 8,839 | 35,433 | 34,651 | |||||||||||||||||||
| Depreciation and amortization | 26,947 | 25,050 | 104,227 | 97,494 | |||||||||||||||||||
| General and administrative expenses | 5,266 | 5,590 | 21,854 | 21,735 | |||||||||||||||||||
| Other expense | 398 | 182 | 1,209 | 960 | |||||||||||||||||||
| Total operating expenses | 55,540 | 53,250 | 217,889 | 205,897 | |||||||||||||||||||
| Gain on sale of real estate | — | — | — | 7,653 | |||||||||||||||||||
| Operating income | 29,111 | 26,943 | 109,843 | 114,685 | |||||||||||||||||||
| Non-operating expenses | |||||||||||||||||||||||
| Interest expense and other finance expenses | (20,600) | (16,049) | (73,189) | (59,225) | |||||||||||||||||||
| Net income | 8,511 | 10,894 | 36,654 | 55,460 | |||||||||||||||||||
| Net income attributable to non-controlling interests | (476) | (695) | (2,120) | (3,591) | |||||||||||||||||||
| Net Income Attributable to Retail Opportunity Investments Corp. | $ | 8,035 | $ | 10,199 | $ | 34,534 | $ | 51,869 | |||||||||||||||
| Earnings per share – basic and diluted | $ | 0.06 | $ | 0.08 | $ | 0.27 | $ | 0.42 | |||||||||||||||
| Dividends per common share | $ | 0.15 | $ | 0.15 | $ | 0.60 | $ | 0.56 | |||||||||||||||
CALCULATION OF FUNDS FROM OPERATIONS
(Unaudited)
(In thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net income attributable to ROIC | $ | 8,035 | $ | 10,199 | $ | 34,534 | $ | 51,869 | |||||||||||||||
| Plus: Depreciation and amortization | 26,947 | 25,050 | 104,227 | 97,494 | |||||||||||||||||||
| Less: Gain on sale of real estate | — | — | — | (7,653) | |||||||||||||||||||
| Funds from operations – basic | 34,982 | 35,249 | 138,761 | 141,710 | |||||||||||||||||||
| Net income attributable to non-controlling interests | 476 | 695 | 2,120 | 3,591 | |||||||||||||||||||
| Funds from operations – diluted | $ | 35,458 | $ | 35,944 | $ | 140,881 | $ | 145,301 | |||||||||||||||
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, | |||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 2022 | $ Change | % Change | 2023 | 2022 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||
| Number of shopping centers included in same-center analysis | 92 | 92 | 87 | 87 | ||||||||||||||||||||||||||||||||||||||||||||||
| Same-center leased rate | 97.7 | % | 98.3 | % | (0.6) | % | 97.8 | % | 98.3 | % | (0.5) | % | ||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Base rents | $ | 57,074 | $ | 55,688 | $ | 1,386 | 2.5 | % | $ | 218,237 | $ | 212,366 | $ | 5,871 | 2.8 | % | ||||||||||||||||||||||||||||||||||
| Percentage rent | 839 | 969 | (130) | (13.4) | % | 1,894 | 1,524 | 370 | 24.3 | % | ||||||||||||||||||||||||||||||||||||||||
| Recoveries from tenants | 20,556 | 19,288 | 1,268 | 6.6 | % | 77,424 | 72,866 | 4,558 | 6.3 | % | ||||||||||||||||||||||||||||||||||||||||
| Other property income | 206 | 494 | (288) | (58.3) | % | 4,701 | 2,807 | 1,894 | 67.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Bad debt | (367) | (421) | 54 | (12.8) | % | (2,768) | (1,633) | (1,135) | 69.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 78,308 | 76,018 | 2,290 | 3.0 | % | 299,488 | 287,930 | 11,558 | 4.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Property operating expenses | 14,570 | 13,923 | 647 | 4.6 | % | 54,150 | 50,611 | 3,539 | 7.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Property taxes | 8,655 | 8,747 | (92) | (1.1) | % | 33,982 | 33,460 | 522 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||
| Total Operating Expenses | 23,225 | 22,670 | 555 | 2.4 | % | 88,132 | 84,071 | 4,061 | 4.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Same-Center Cash Net Operating Income | $ | 55,083 | $ | 53,348 | $ | 1,735 | 3.3 | % | $ | 211,356 | $ | 203,859 | $ | 7,497 | 3.7 | % | ||||||||||||||||||||||||||||||||||
SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION
(Unaudited)
(In thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| GAAP operating income | $ | 29,111 | $ | 26,943 | $ | 109,843 | $ | 114,685 | |||||||||||||||
| Depreciation and amortization | 26,947 | 25,050 | 104,227 | 97,494 | |||||||||||||||||||
| General and administrative expenses | 5,266 | 5,590 | 21,854 | 21,735 | |||||||||||||||||||
| Other expense | 398 | 182 | 1,209 | 960 | |||||||||||||||||||
| Gain on sale of real estate | — | — | — | (7,653) | |||||||||||||||||||
| Straight-line rent | (167) | (427) | (1,855) | (2,715) | |||||||||||||||||||
| Amortization of above- and below-market rent | (3,581) | (2,729) | (11,172) | (11,947) | |||||||||||||||||||
Property revenues and other expenses (1) | (16) | (266) | (572) | (474) | |||||||||||||||||||
| Total Company cash NOI | 57,958 | 54,343 | 223,534 | 212,085 | |||||||||||||||||||
| Non same-center cash NOI | (2,875) | (995) | (12,178) | (8,226) | |||||||||||||||||||
| Same-center cash NOI | $ | 55,083 | $ | 53,348 | $ | 211,356 | $ | 203,859 | |||||||||||||||
____________________
(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 2023 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, 2023 -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, 2023, ROIC owned 94 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, 2023 -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 ........................................................................................................................................................................... 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 Footnotes .......................................................................................................................................................... 20 Investor Information ....................................................................................................................................... 21 Table of Contents
Supplemental Disclosure Quarter Ended December 31, 2023 -4- Balance Sheets (dollars in thousands, except par values and share amounts) 12/31/23 12/31/22 ASSETS: Real Estate Investments: Land $ 967,251 $ 958,236 Building and improvements 2,500,647 2,452,857 3,467,898 3,411,093 Less: accumulated depreciation 654,543 578,593 2,813,355 2,832,500 Mortgage note receivable 4,694 4,786 Real Estate Investments, net 2,818,049 2,837,286 Cash and cash equivalents 6,302 5,598 Restricted cash 2,116 1,861 Tenant and other receivables, net 61,193 57,546 Deposits — 500 Acquired lease intangible assets, net 42,791 52,428 Prepaid expenses 3,354 5,957 Deferred charges, net 27,294 26,683 Other assets 16,541 16,420 TOTAL ASSETS $ 2,977,640 $ 3,004,279 LIABILITIES: Term loan $ 199,745 $ 299,253 Credit facility 75,000 88,000 Senior Notes 1,043,593 946,849 Mortgage notes payable 60,052 60,917 Acquired lease intangible liabilities, net 137,820 152,117 Accounts payable and accrued expenses 50,598 22,885 Tenants’ security deposits 8,205 7,701 Other liabilities 39,420 41,959 TOTAL LIABILITIES 1,614,433 1,619,681 EQUITY: Common stock, $0.0001 par value, 500,000,000 shares authorized 13 12 Additional paid-in capital 1,643,908 1,612,126 Accumulated dividends in excess of earnings (357,160) (315,984) Accumulated other comprehensive income 559 14 Total Retail Opportunity Investments Corp. stockholders’ equity 1,287,320 1,296,168 Non-controlling interests 75,887 88,430 TOTAL EQUITY 1,363,207 1,384,598 TOTAL LIABILITIES AND EQUITY $ 2,977,640 $ 3,004,279 The Company's Form 10-Q for the quarters ended September 31, 2023, June 30, 2023, and March 31, 2023, and Form 10-K for the years ended December 31, 2023 and 2022 should be read in conjunction with the above information.
Supplemental Disclosure Quarter Ended December 31, 2023 -5- Income Statements Three Months Ended (unaudited) Year Ended 12/31/23 12/31/22 12/31/23 12/31/22 REVENUES: Rental revenue $ 82,154 $ 79,285 $ 319,056 $ 308,960 Other income 2,497 908 8,676 3,969 TOTAL REVENUES 84,651 80,193 327,732 312,929 OPERATING EXPENSES: Property operating 14,173 13,589 55,166 51,057 Property taxes 8,756 8,839 35,433 34,651 Depreciation and amortization 26,947 25,050 104,227 97,494 General and administrative expenses 5,266 5,590 21,854 21,735 Other expense 398 182 1,209 960 TOTAL OPERATING EXPENSES 55,540 53,250 217,889 205,897 Gain on sale of real estate — — — 7,653 OPERATING INCOME 29,111 26,943 109,843 114,685 NON-OPERATING EXPENSES: Interest expense and other finance expenses (20,600) (16,049) (73,189) (59,225) NET INCOME 8,511 10,894 36,654 55,460 NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (476) (695) (2,120) (3,591) NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. $ 8,035 $ 10,199 $ 34,534 $ 51,869 NET INCOME PER COMMON SHARE - BASIC AND DILUTED $ 0.06 $ 0.08 $ 0.27 $ 0.42 Weighted average common shares outstanding - basic 125,374 123,814 125,000 123,395 Weighted average common shares outstanding - diluted 132,935 132,545 132,865 132,285 RENTAL REVENUE Base rents $ 58,176 $ 57,179 $ 228,925 $ 220,833 Recoveries from tenants 20,723 19,456 80,473 75,499 Straight-line rent 167 427 1,855 2,715 Amortization of above- and below-market rent 3,581 2,729 11,172 11,947 Bad debt (493) (506) (3,369) (2,034) TOTAL RENTAL REVENUE $ 82,154 $ 79,285 $ 319,056 $ 308,960 (in thousands, except per share amounts) The Company's Form 10-Q for the quarters ended September 31, 2023, June 30, 2023, and March 31, 2023, and Form 10-K for the years ended December 31, 2023 and 2022 should be read in conjunction with the above information.
Supplemental Disclosure Quarter Ended December 31, 2023 -6- Funds From Operations (unaudited, in thousands, except per share amounts) Three Months Ended Year Ended 12/31/23 12/31/22 12/31/23 12/31/22 Funds from Operations (FFO): Net income attributable to ROIC common stockholders $ 8,035 $ 10,199 $ 34,534 $ 51,869 Plus: Depreciation and amortization expense 26,947 25,050 104,227 97,494 Less: Gain on sale of real estate — — — (7,653) FUNDS FROM OPERATIONS - BASIC 34,982 35,249 138,761 141,710 Net income attributable to non-controlling interests 476 695 2,120 3,591 FUNDS FROM OPERATIONS - DILUTED $ 35,458 $ 35,944 $ 140,881 $ 145,301 FUNDS FROM OPERATIONS PER SHARE - BASIC $ 0.28 $ 0.28 $ 1.11 $ 1.15 FUNDS FROM OPERATIONS PER SHARE - DILUTED $ 0.27 $ 0.27 $ 1.06 $ 1.10 Weighted average common shares outstanding - basic 125,374 123,814 125,000 123,395 Weighted average common shares outstanding - diluted 132,935 132,545 132,865 132,285 Common dividends per share $ 0.15 $ 0.15 $ 0.60 $ 0.56 FFO Payout Ratio 55.6 % 55.6 % 56.6 % 50.9 % Additional Disclosures: Non Cash Expense (Income) Straight line rent $ (167) $ (427) $ (1,855) $ (2,715) Above/below market rent amortization, net (3,581) (2,729) (11,172) (11,947) Non-cash interest income — (15) (15) (57) Deferred financing costs and mortgage premiums, net 1,041 675 3,920 2,559 Stock based compensation 3,130 3,128 12,712 11,949 Capital Expenditures Tenant improvements $ 7,674 $ 7,245 $ 24,954 $ 29,739 Leasing commissions 555 526 1,965 2,006 Building improvements 1,112 490 3,676 1,110 Reimbursable property improvements 3,228 2,265 5,938 6,075 Pad and other development 4,276 2,634 13,989 13,725 Value enhancing tenant improvements 34 653 146 6,761 The above does not purport to disclose all items required under GAAP.
Supplemental Disclosure Quarter Ended December 31, 2023 -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 34,045 3.55 % 3.61 % 10/1/2025 2.5 % Total Mortgage Debt 60,045 4.06 % 3.70 % 1.1 Years (WA) 4.4 % Unsecured Senior Notes: Senior Notes Due 2024 250,000 4.00 % 4.21 % 12/15/2024 18.1 % Senior Notes Due 2026 200,000 3.95 % 3.95 % 9/22/2026 14.4 % Senior Notes Due 2027 250,000 4.19 % 4.19 % 12/15/2027 18.1 % Senior Notes Due 2028 350,000 6.75 % 6.86 % 10/15/2028 25.2 % Total Unsecured Senior Notes 1,050,000 4.95 % 5.04 % 3.3 Years (WA) 75.8 % Term Loan: Interest rate swap 100,000 5.58 % 5.58 % 8/31/2024 7.2 % Interest rate swap 50,000 5.13 % 5.13 % 8/31/2024 3.6 % Total Term Loan 150,000 5.43 % 5.43 % 10.8 % Total Fixed Rate Debt 1,260,045 4.97 % 5.02 % 3.2 Years (WA) 91.0 % Variable Rate Debt Credit Facility 75,000 6.31 % 6.31 % 3/2/2027 5.4 % Term Loan 200,000 6.44 % 6.44 % 1/20/2025 3.6 % Interest rate swaps - Term Loan (150,000) Total Variable Rate Debt 125,000 6.36 % 6.36 % 1.6 Years (WA) 9.0 % TOTAL PRINCIPAL DEBT $ 1,385,045 5.09 % 5.14 % 2.9 Years (WA) 100.0 % Net unamortized premiums on mortgages 72 Net unamortized discounts on notes (2,033) Net unamortized deferred financing charges (3) (4,694) Total Debt $ 1,378,390 (1) (1) (2)
Supplemental Disclosure Quarter Ended December 31, 2023 -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 (2) Term Loan Unsecured Notes Payments Debt Maturing 2024 $ 708 $ 26,000 $ — $ — $ 250,000 $ 276,708 20.0 % 2025 550 32,787 — 200,000 — 233,337 16.9 % 2026 — — — — 200,000 200,000 14.4 % 2027 — — 75,000 — 250,000 325,000 23.5 % 2028 — — — — 350,000 350,000 25.2 % Thereafter — — — — — — — % $ 1,258 $ 58,787 $ 75,000 $ 200,000 $ 1,050,000 $ 1,385,045 100.0 % Summary of Unencumbered/Encumbered Properties Number of Percentage Properties GLA of GLA Unencumbered properties 92 10,271,980 96.6 % Encumbered properties 2 359,354 3.4 % 94 10,631,334 100.0 % Summary of Unsecured Debt/Secured Debt Percentage of Total Amount Principal Debt Unsecured principal debt $ 1,325,000 95.7 % Secured principal debt 60,045 4.3 % Total Principal Debt $ 1,385,045 100.0 %
Supplemental Disclosure Quarter Ended December 31, 2023 -9- Selected Financial Analysis (unaudited, in thousands, except per share amounts) 12/31/23 09/30/23 06/30/23 03/31/23 12/31/22 Debt coverage ratios, three months ending: Interest coverage ratio (EBITDA/interest expense) 2.7x 3.0x 3.0x 3.0x 3.2x Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 2.7x 3.0x 3.0x 3.0x 3.2x Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 6.2x 6.4x 6.5x 6.7x 6.6x Net principal debt (Total principal debt less cash & equivalents)/TTM EBITDA 6.4x 6.4x 6.5x 6.6x 6.8x Debt/book value ratios, at period end: Total principal debt/total book assets 46.5 % 49.3 % 46.1 % 45.9 % 46.6 % Total principal debt/undepreciated book value 38.1 % 41.1 % 38.2 % 38.3 % 39.0 % Secured principal debt/undepreciated book value 1.7 % 1.6 % 1.7 % 1.7 % 1.7 % Market capitalization calculations, at period end: Common shares outstanding 126,160 125,256 125,256 124,228 123,815 Operating partnership units (OP units) outstanding 7,437 7,437 7,437 8,447 8,447 Common stock price per share $ 14.03 $ 12.38 $ 13.51 $ 13.96 $ 15.03 Total equity market capitalization $ 1,874,372 $ 1,642,741 $ 1,792,684 $ 1,852,151 $ 1,987,894 Total principal debt 1,385,045 1,560,219 1,373,389 1,377,557 1,398,731 TOTAL MARKET CAPITALIZATION $ 3,259,417 $ 3,202,960 $ 3,166,073 $ 3,229,708 $ 3,386,625 Unsecured Senior Notes Financial Covenants: (4) Total debt to total assets not to exceed 60% 39.9 % 42.8 % 40.1 % 40.3 % 41.1 % Total secured debt to total assets not to exceed 40% 1.7 % 1.7 % 1.8 % 1.8 % 1.8 % Total unencumbered assets to total unsecured debt not to be less than 150% 252.8 % 234.5 % 251.2 % 250.3 % 245.0 % Consolidated income available for debt service to interest expense not to be less than 1.5:1 2.9x 3.1x 3.2x 3.3x 3.5x
Supplemental Disclosure Quarter Ended December 31, 2023 -10- Property Acquisitions (dollars in thousands) Date Owned Shopping Centers Location Acquired Purchase Amount GLA 4Q 2023 Foothill Plaza La Verne, CA 12/01/23 $ 21,750 64,514 $ 21,750 64,514 Total 2023 Acquisitions $ 21,750 64,514
Supplemental Disclosure Quarter Ended December 31, 2023 -11- Property Portfolio (dollars in thousands) Date Owned % Metro Area City State Acquired GLA Leased ABR (5) Major Tenants Los Angeles metro area Paramount Plaza Paramount CA 12/22/09 95,062 98.5 % $ 1,983 Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy Claremont Promenade Claremont CA 09/23/10 92,177 84.8 % 2,139 Super King Supermarket Gateway Village Chino Hills CA 12/17/10 96,959 89.5 % 2,824 Sprouts Market Seabridge Marketplace Oxnard CA 05/31/12 98,348 89.3 % 1,828 Safeway (Vons) Supermarket Glendora Shopping Center Glendora CA 08/01/12 106,535 100.0 % 1,552 Albertsons Supermarket Redondo Beach Plaza Redondo Beach CA 12/28/12 110,509 98.9 % 2,453 Safeway (Vons) Supermarket, Petco Diamond Bar Town Center Diamond Bar CA 02/01/13 100,342 100.0 % 2,513 Walmart Neighborhood Market, Crunch Fitness Diamond Hills Plaza Diamond Bar CA 04/22/13 139,455 99.9 % 4,281 H-Mart Supermarket, Planet Fitness Plaza de la Cañada La Cañada Flintridge CA 12/13/13 100,425 100.0 % 2,803 Gelson’s Supermarket, TJ Maxx, Rite Aid Pharmacy Fallbrook Shopping Center Los Angeles CA 06/13/14 755,164 99.5 % 14,325 Sprouts Market, Trader Joes, Kroger (Ralph’s) Supermarket*, TJ Maxx Moorpark Town Center Moorpark CA 12/03/14 133,547 91.9 % 2,067 Kroger (Ralph’s) Supermarket, CVS Pharmacy Ontario Plaza Ontario CA 01/06/15 150,149 97.2 % 2,470 El Super Supermarket, Rite Aid Pharmacy Park Oaks Shopping Center Thousand Oaks CA 01/06/15 110,092 95.2 % 2,793 Safeway (Vons) Supermarket, Dollar Tree Warner Plaza Woodland Hills CA 12/31/15 110,918 95.8 % 4,673 Sprouts Market, Kroger (Ralph’s) Supermarket*, Rite Aid Pharmacy* Magnolia Shopping Center Santa Barbara CA 03/10/16 116,089 100.0 % 2,589 Kroger (Ralph’s) Supermarket Casitas Plaza Shopping Center Carpinteria CA 03/10/16 105,118 100.0 % 2,009 Albertsons Supermarket, CVS Pharmacy Bouquet Center Santa Clarita CA 04/28/16 148,903 98.4 % 3,869 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less North Ranch Shopping Center Westlake Village CA 06/01/16 146,444 89.7 % 4,905 Kroger (Ralph’s) Supermarket, Trader Joe’s, Planet Fitness The Knolls Long Beach CA 10/03/16 51,858 100.0 % 1,453 Trader Joe’s, Pet Food Express The Terraces Rancho Palos Verdes CA 03/17/17 172,922 93.1 % 3,670 Trader Joe’s, Marshall’s, LA Fitness Foothill Plaza La Verne CA 12/01/23 64,514 100.0 % 1,523 Sprouts Market Los Angeles metro area total 3,005,530 96.8 % $ 68,722 Seattle metro area Meridian Valley Plaza Kent WA 02/01/10 51,597 98.1 % $ 921 Kroger (QFC) Supermarket The Market at Lake Stevens Lake Stevens WA 03/11/10 74,130 100.0 % 1,706 Albertsons (Haggen) Supermarket Canyon Park Shopping Center Bothell WA 07/29/11 123,592 100.0 % 2,693 PCC Community Market, Rite Aid Pharmacy, Petco Hawks Prairie Shopping Center Lacey WA 09/09/11 157,529 100.0 % 2,053 Safeway Supermarket, Dollar Tree, Big Lots, Ace Hardware Gateway Shopping Center Marysville WA 02/16/12 104,298 100.0 % 2,729 WinCo Foods*, Rite Aid Pharmacy, Ross Dress For Less Canyon Crossing Puyallup WA 04/15/13 120,398 100.0 % 2,949 Safeway Supermarket Crossroads Shopping Center Bellevue WA 2010/2013 473,131 99.3 % 12,868 Kroger (QFC) Supermarket, Dick’s Sporting Goods, Edgeworks Climbing Bellevue Marketplace Bellevue WA 12/10/15 113,758 100.0 % 3,766 Asian Family Market Four Corner Square Maple Valley WA 12/21/15 119,531 100.0 % 2,775 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden Bridle Trails Shopping Center Kirkland WA 10/17/16 110,257 100.0 % 2,548 Grocery Outlet Supermarket, Rite Aid (Bartell) Pharmacy, Dollar Tree PCC Community Markets Plaza Edmonds WA 01/25/17 34,459 100.0 % 759 PCC Community Market Highland Hill Shopping Center Tacoma WA 05/09/17 163,926 100.0 % 3,112 WinCo Foods, LA Fitness, Dollar Tree, Petco North Lynnwood Shopping Center Lynnwood WA 10/19/17 63,606 92.9 % 1,041 Grocery Outlet Supermarket, Dollar Tree Stadium Center Tacoma WA 02/23/18 48,888 100.0 % 1,124 Thriftway Supermarket Summerwalk Village Lacey WA 12/13/19 61,545 100.0 % 989 Walmart Neighborhood Market South Point Plaza Everett WA 11/10/21 189,960 89.3 % 2,276 Grocery Outlet Supermarket, Hobby Lobby, Pep Boys Olympia West Center Olympia WA 12/06/21 69,212 91.5 % 1,435 Trader Joe’s, Petco Olympia Square North Olympia WA 04/01/22 89,884 100.0 % 1,099 Albertsons Supermarket Thomas Lake Shopping Center Mill Creek WA 08/19/22 111,311 84.1 % 1,709 Albertsons Supermarket Ballinger Village Shoreline WA 08/19/22 112,228 100.0 % 2,519 Thriftway Supermarket, Rite Aid Pharmacy Seattle metro area total 2,393,240 97.8 % $ 51,071 * These retailers are not tenants of ROIC.
Supplemental Disclosure Quarter Ended December 31, 2023 -12- Property Portfolio, continued (dollars in thousands) Date Owned % Metro Area City State Acquired GLA Leased ABR (5) Major Tenants Portland metro area Happy Valley Town Center Happy Valley OR 07/14/10 138,397 100.0 % $ 4,181 New Seasons Market Wilsonville Old Town Square Wilsonville OR 2010/2012 49,780 100.0 % 2,023 Kroger (Fred Meyer) Supermarket* Cascade Summit Town Square West Linn OR 08/20/10 94,934 100.0 % 2,112 Safeway Supermarket, U.S. Postal Service Heritage Market Center Vancouver WA 09/23/10 107,468 100.0 % 1,898 Safeway Supermarket, Dollar Tree Division Crossing Portland OR 12/22/10 103,561 73.5 % 1,120 Ross Dress For Less, Ace Hardware Halsey Crossing Gresham OR 12/22/10 99,428 100.0 % 1,511 24 Hour Fitness, Dollar Tree Hillsboro Market Center Hillsboro OR 11/23/11 156,021 100.0 % 2,753 Albertsons Supermarket, Dollar Tree, Ace Hardware Robinwood Shopping Center West Linn OR 08/23/13 70,831 100.0 % 1,185 Walmart Neighborhood Market Tigard Marketplace Tigard OR 02/18/14 136,889 100.0 % 2,315 H-Mart Supermarket, Bi-Mart Wilsonville Town Center Wilsonville OR 12/11/14 167,829 100.0 % 3,122 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree Tigard Promenade Tigard OR 07/28/15 88,043 100.0 % 1,610 Safeway Supermarket, Petco Sunnyside Village Square Happy Valley OR 07/28/15 92,278 100.0 % 1,698 Grocery Outlet Supermarket, Snap Fitness, Ace Hardware Johnson Creek Center Happy Valley OR 11/09/15 108,588 100.0 % 2,379 Trader Joe’s, Walgreens, Sportsman's Warehouse Rose City Center Portland OR 09/15/16 60,680 100.0 % 805 Safeway Supermarket Division Center Portland OR 04/05/17 123,072 99.0 % 2,285 Grocery Outlet Supermarket, Rite Aid Pharmacy, Petco Riverstone Marketplace Vancouver WA 10/11/17 95,774 100.0 % 2,425 Kroger (QFC) Supermarket King City Plaza King City OR 05/18/18 62,676 99.2 % 1,026 Grocery Outlet Supermarket, Anytime Fitness Powell Valley Junction Gresham OR 04/01/22 108,639 100.0 % 1,176 Walmart Neighborhood Market, Planet Fitness Portland metro area total 1,864,888 98.4 % $ 35,624 San Francisco metro area Pleasant Hill Marketplace Pleasant Hill CA 04/08/10 69,715 100.0 % $ 1,524 Total Wine and More, Basset Furniture Pinole Vista Shopping Center Pinole CA 01/06/11 141,093 98.1 % 3,237 Save Mart (Lucky California) Supermarket, Planet Fitness Country Club Gate Center Pacific Grove CA 07/08/11 109,331 98.7 % 2,411 Save Mart (Lucky California) Supermarket, Rite Aid Pharmacy Marlin Cove Shopping Center Foster City CA 05/04/12 73,943 95.9 % 2,561 99 Ranch Market The Village at Novato Novato CA 07/24/12 20,081 78.3 % 458 Trader Joe’s Santa Teresa Village San Jose CA 11/08/12 131,263 97.9 % 3,397 Grocery Outlet Supermarket, Dollar Tree, MedVet Granada Shopping Center Livermore CA 06/27/13 71,525 100.0 % 1,568 Save Mart (Lucky California) Supermarket Country Club Village San Ramon CA 11/26/13 111,093 97.9 % 2,269 Walmart Neighborhood Market, CVS Pharmacy North Park Plaza San Jose CA 04/30/14 76,697 100.0 % 2,851 H-Mart Supermarket Winston Manor South San Francisco CA 01/07/15 49,852 96.4 % 1,849 Grocery Outlet Supermarket Jackson Square Hayward CA 07/01/15 114,220 99.1 % 2,452 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness Gateway Centre San Ramon CA 09/01/15 112,553 95.5 % 2,731 Save Mart (Lucky California) Supermarket, Dollar Tree Iron Horse Plaza Danville CA 12/04/15 61,915 100.0 % 2,432 Lunardi’s Market Monterey Center Monterey CA 07/14/16 25,626 100.0 % 1,118 Trader Joe’s Santa Rosa Southside Shopping Center Santa Rosa CA 03/24/17 88,606 100.0 % 1,874 REI, World Market, DSW Monta Loma Plaza Mountain View CA 09/19/17 48,078 100.0 % 1,580 Safeway Supermarket Canyon Creek Plaza San Jose CA 09/01/21 64,662 98.2 % 2,192 New Seasons Market Village Oaks Shopping Center Martinez CA 05/17/22 79,875 97.9 % 1,493 Save Mart (Lucky California) Supermarket San Francisco metro area total 1,450,128 98.1 % $ 37,997 * These retailers are not tenants of ROIC.
Supplemental Disclosure Quarter Ended December 31, 2023 -13- Property Portfolio, continued (dollars in thousands) Date Owned % Metro Area City State Acquired GLA Leased ABR (5) Major Tenants Orange County metro area Santa Ana Downtown Plaza Santa Ana CA 01/26/10 105,536 98.3 % $ 2,448 Kroger (Food 4 Less) Supermarket, Marshall’s Sycamore Creek Corona CA 09/30/10 74,198 100.0 % 1,975 Safeway (Vons) Supermarket, CVS Pharmacy* Desert Springs Marketplace Palm Desert CA 02/17/11 113,718 97.0 % 2,892 Kroger (Ralph’s) Supermarket, Rite Aid Pharmacy Cypress Center West Cypress CA 12/04/12 112,080 92.7 % 2,187 Kroger (Ralph’s) Supermarket, Rite Aid Pharmacy Harbor Place Center Garden Grove CA 12/28/12 123,836 94.5 % 1,862 AA Supermarket, Ross Dress For Less, AutoZone Mega Hub 5 Points Plaza Huntington Beach CA 09/27/13 161,170 99.2 % 4,822 Trader Joe’s Peninsula Marketplace Huntington Beach CA 10/15/13 95,416 100.0 % 2,580 Kroger (Ralph’s) Supermarket, Planet Fitness Fullerton Crossroads Fullerton CA 10/11/17 219,899 97.7 % 3,529 Kroger (Ralph’s) Supermarket, Kohl’s, Jo-Ann Fabrics and Crafts The Village at Nellie Gail Ranch Laguna Hills CA 11/30/17 89,041 100.0 % 3,174 Smart & Final Extra Supermarket Orange County metro area total 1,094,894 97.6 % $ 25,469 San Diego metro area Marketplace Del Rio Oceanside CA 01/03/11 183,787 98.0 % $ 3,733 Stater Brothers Supermarket, Walgreens, Planet Fitness Renaissance Towne Centre San Diego CA 08/03/11 52,866 99.1 % 2,800 CVS Pharmacy Bay Plaza San Diego CA 10/05/12 73,324 93.6 % 2,134 Seafood City Supermarket Bernardo Heights Plaza Rancho Bernardo CA 02/06/13 37,729 100.0 % 987 Sprouts Market Hawthorne Crossings San Diego CA 06/27/13 141,288 100.0 % 3,638 Mitsuwa Supermarket, Ross Dress For Less, Staples Creekside Plaza Poway CA 02/28/14 133,914 99.2 % 3,502 Stater Brothers Supermarket, AMC Theatres Palomar Village Temecula CA 10/12/21 125,130 98.4 % 2,149 Albertsons Supermarket, CVS Pharmacy San Diego metro area total 748,038 98.4 % $ 18,943 Number of Owned % Metro Area Summary Centers GLA Leased ABR (5) Los Angeles 21 3,005,530 96.8 % $ 68,722 Seattle 20 2,393,240 97.8 % 51,071 Portland 18 1,864,888 98.4 % 35,624 San Francisco 18 1,450,128 98.1 % 37,997 Orange County 9 1,094,894 97.6 % 25,469 San Diego 7 748,038 98.4 % 18,943 TOTAL SHOPPING CENTER PORTFOLIO 93 10,556,718 97.7 % $ 237,826 * These retailers are not tenants of ROIC. Note: Property Portfolio excludes one shopping center that is currently planned for redevelopment.
Supplemental Disclosure Quarter Ended December 31, 2023 -14- Three Months Ended Year Ended 12/31/23 12/31/22 $ Change % Change 12/31/23 12/31/22 $ Change % Change Number of shopping centers included in same-center analysis (6) 92 92 87 87 Same-center leased rate 97.7 % 98.3 % (0.6) % 97.8 % 98.3 % (0.5) % REVENUES: Base rents $ 57,074 $ 55,688 $ 1,386 2.5 % $ 218,237 $ 212,366 $ 5,871 2.8 % Percentage rent 839 969 (130) (13.4) % 1,894 1,524 370 24.3 % Recoveries from tenants 20,556 19,288 1,268 6.6 % 77,424 72,866 4,558 6.3 % Other property income 206 494 (288) (58.3) % 4,701 2,807 1,894 67.5 % Bad debt (367) (421) 54 (12.8) % (2,768) (1,633) (1,135) 69.5 % TOTAL REVENUES 78,308 76,018 2,290 3.0 % 299,488 287,930 11,558 4.0 % OPERATING EXPENSES: Property operating expenses 14,570 13,923 647 4.6 % 54,150 50,611 3,539 7.0 % Property taxes 8,655 8,747 (92) (1.1) % 33,982 33,460 522 1.6 % TOTAL OPERATING EXPENSES 23,225 22,670 555 2.4 % 88,132 84,071 4,061 4.8 % SAME-CENTER CASH NET OPERATING INCOME $ 55,083 $ 53,348 $ 1,735 3.3 % $ 211,356 $ 203,859 $ 7,497 3.7 % SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION GAAP Operating Income $ 29,111 $ 26,943 $ 109,843 $ 114,685 Depreciation and amortization 26,947 25,050 104,227 97,494 General and administrative expenses 5,266 5,590 21,854 21,735 Other expense 398 182 1,209 960 Gain on sale of real estate — — — (7,653) Straight-line rent (167) (427) (1,855) (2,715) Amortization of above- and below-market rent (3,581) (2,729) (11,172) (11,947) Property revenues and other expenses (7) (16) (266) (572) (474) TOTAL COMPANY CASH NET OPERATING INCOME 57,958 54,343 223,534 212,085 Non Same-Center Cash NOI (2,875) (995) (12,178) (8,226) SAME-CENTER CASH NET OPERATING INCOME $ 55,083 $ 53,348 $ 211,356 $ 203,859 Same-Center Cash Net Operating Income Analysis (unaudited, dollars in thousands) .
Supplemental Disclosure Quarter Ended December 31, 2023 -15- Top Ten Tenants (dollars in thousands) Percent Number of Leased of Total Percent of Tenant Leases GLA Leased GLA ABR (5) Total ABR 1 Albertsons / Safeway Supermarkets 21 1,052,996 10.2 % $ 13,361 5.6 % 2 Kroger Supermarkets 11 488,735 4.8 % 7,884 3.3 % 3 Save Mart Supermarkets 5 234,713 2.3 % 3,495 1.5 % 4 Trader Joe’s 9 113,097 1.1 % 3,403 1.4 % 5 Rite Aid Pharmacy 12 215,808 2.1 % 3,309 1.4 % 6 Sprouts Markets 5 175,823 1.7 % 3,233 1.4 % 7 Grocery Outlet Supermarkets 10 225,004 2.2 % 3,178 1.3 % 8 JP Morgan Chase 20 82,348 0.8 % 3,002 1.3 % 9 H-Mart Supermarkets 3 147,040 1.4 % 2,702 1.1 % 10 Ross Dress For Less 6 166,703 1.6 % 2,552 1.1 % Top 10 Tenants Total 102 2,902,267 28.2 % $ 46,119 19.4 % Other Tenants 1,955 7,402,542 71.8 % 191,707 80.6 % Total Portfolio 2,057 10,304,809 100.0 % $ 237,826 100.0 %
Supplemental Disclosure Quarter Ended December 31, 2023 -16- Lease Expiration Schedule (dollars in thousands) Anchor Tenants (8) Number of Leased Percent of Total Percent of ABR Leases Expiring (9) GLA Total Leased GLA ABR (5) Total ABR Per Sq. Ft. 2024 7 280,724 2.7 % $ 3,293 1.4 % $ 11.73 2025 22 707,944 6.9 % 9,595 4.0 % 13.55 2026 23 765,259 7.4 % 10,148 4.3 % 13.26 2027 13 433,197 4.2 % 5,137 2.1 % 11.86 2028 30 1,003,754 9.7 % 18,850 7.9 % 18.78 2029 19 643,471 6.3 % 11,221 4.7 % 17.44 2030 12 435,628 4.2 % 7,622 3.2 % 17.50 2031 11 335,269 3.3 % 5,207 2.2 % 15.53 2032 8 266,426 2.6 % 3,975 1.7 % 14.92 2033 9 279,734 2.7 % 3,933 1.7 % 14.06 2034+ 15 589,340 5.7 % 9,569 4.0 % 16.24 169 5,740,746 55.7 % $ 88,550 37.2 % $ 15.43 Non-Anchor Tenants Number of Leased Percent of Total Percent of ABR Leases Expiring (9) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2024 257 483,944 4.7 % $ 15,943 6.7 % $ 32.94 2025 288 595,036 5.8 % 19,104 8.0 % 32.11 2026 296 672,582 6.5 % 21,651 9.1 % 32.19 2027 290 684,570 6.7 % 22,395 9.4 % 32.71 2028 283 657,754 6.4 % 22,766 9.6 % 34.61 2029 144 392,680 3.8 % 12,361 5.2 % 31.48 2030 58 176,215 1.7 % 6,110 2.6 % 34.67 2031 55 176,482 1.7 % 5,640 2.4 % 31.96 2032 69 226,921 2.2 % 7,167 3.0 % 31.58 2033 68 227,319 2.2 % 7,105 3.0 % 31.26 2034+ 80 270,560 2.6 % 9,034 3.8 % 33.39 1,888 4,564,063 44.3 % $ 149,276 62.8 % $ 32.71 All Tenants Number of Leased Percent of Total Percent of ABR Leases Expiring (9) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2024 264 764,668 7.4 % $ 19,236 8.1 % $ 25.16 2025 310 1,302,980 12.7 % 28,699 12.0 % 22.03 2026 319 1,437,841 13.9 % 31,799 13.4 % 22.12 2027 303 1,117,767 10.9 % 27,532 11.5 % 24.63 2028 313 1,661,508 16.1 % 41,616 17.5 % 25.05 2029 163 1,036,151 10.1 % 23,582 9.9 % 22.76 2030 70 611,843 5.9 % 13,732 5.8 % 22.44 2031 66 511,751 5.0 % 10,847 4.6 % 21.20 2032 77 493,347 4.8 % 11,142 4.7 % 22.59 2033 77 507,053 4.9 % 11,038 4.7 % 21.77 2034+ 95 859,900 8.3 % 18,603 7.8 % 21.63 2,057 10,304,809 100.0 % $ 237,826 100.0 % $ 23.08
Supplemental Disclosure Quarter Ended December 31, 2023 -17- Leasing Summary For the Three Months Ended December 31, 2023 For the Year Ended December 31, 2023 New Leases Non-Anchor Anchor (8) Total Non-Anchor Anchor (8) Total Number of Leases 30 2 32 137 8 145 Gross Leasable Area (sq. ft.) 46,012 44,072 90,084 213,275 168,577 381,852 Initial Base Rent ($/sq. ft.) (10) $ 33.97 $ 16.12 $ 25.23 $ 36.46 $ 10.83 $ 25.15 Tenant Improvements ($/sq. ft.) $ — $ 1.26 $ 0.62 $ 0.59 $ 0.33 $ 0.47 Leasing Commissions ($/sq. ft.) $ 4.08 $ 3.90 $ 3.99 $ 4.49 $ 2.41 $ 3.57 Weighted Average Lease Term (Yrs.) (9) 6.7 10.5 8.5 7.6 6.2 7.0 Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 51 1 52 245 24 269 Gross Leasable Area (sq. ft.) 112,105 53,500 165,605 529,743 798,125 1,327,868 Initial Base Rent ($/sq. ft.) (10) $ 36.32 $ 20.80 $ 31.30 $ 35.23 $ 20.31 $ 26.27 Tenant Improvements ($/sq. ft.) $ 1.21 $ — $ 0.82 $ 0.34 $ 0.52 $ 0.45 Leasing Commissions ($/sq. ft.) $ — $ — $ — $ 0.09 $ — $ 0.03 Weighted Average Lease Term (Yrs.) (9) 5.3 5.0 5.2 5.0 4.7 4.8 Total Non-Anchor Anchor Total Non-Anchor Anchor Total Number of Leases 81 3 84 382 32 414 Gross Leasable Area (sq. ft.) 158,117 97,572 255,689 743,018 966,702 1,709,720 Initial Base Rent ($/sq. ft.) (10) $ 35.63 $ 18.68 $ 29.17 $ 35.59 $ 18.66 $ 26.02 Tenant Improvements ($/sq. ft.) $ 0.86 $ 0.57 $ 0.75 $ 0.41 $ 0.48 $ 0.45 Leasing Commissions ($/sq. ft.) $ 1.19 $ 1.76 $ 1.41 $ 1.35 $ 0.42 $ 0.82 Weighted Average Lease Term (Yrs.) (9) 5.7 7.5 6.4 5.7 5.0 5.2
Supplemental Disclosure Quarter Ended December 31, 2023 -18- Same-Space Comparative Leasing Summary For the Three Months Ended December 31, 2023 For the Year Ended December 31, 2023 New Leases Non-Anchor Anchor (8) Total Non-Anchor Anchor (8) Total Comparative # of Leases 14 1 15 69 4 73 Comparative GLA (sq. ft.) (11) 19,032 20,500 39,532 110,709 76,400 187,109 Prior Base Rent ($/sq. ft.) (12) $ 31.03 $ 10.80 $ 20.54 $ 31.79 $ 6.89 $ 21.62 Initial Base Rent ($/sq. ft.) (10) $ 34.71 $ 17.40 $ 25.73 $ 35.60 $ 13.11 $ 26.42 Percentage Change in Base Rents 11.8 % 61.1 % 25.3 % 12.0 % 90.3 % 22.2 % Tenant Improvements ($/sq. ft.) $ — $ — $ — $ 1.13 $ — $ 0.67 Leasing Commissions ($/sq. ft.) $ 2.12 $ 4.50 $ 3.36 $ 4.08 $ 2.37 $ 3.38 Weighted Average Lease Term (Yrs.) (9) 5.7 10.5 8.2 7.7 7.0 7.4 Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 51 1 52 245 24 269 Comparative GLA (sq. ft.) (11) 112,105 53,500 165,605 529,743 798,125 1,327,868 Prior Base Rent ($/sq. ft.) (12) $ 34.11 $ 18.91 $ 29.20 $ 32.97 $ 19.07 $ 24.62 Initial Base Rent ($/sq. ft.) (10) $ 36.32 $ 20.80 $ 31.30 $ 35.23 $ 20.31 $ 26.27 Percentage Change in Base Rents 6.5 % 10.0 % 7.2 % 6.9 % 6.5 % 6.7 % Tenant Improvements ($/sq. ft.) $ 1.21 $ — $ 0.82 $ 0.34 $ 0.52 $ 0.45 Leasing Commissions ($/sq. ft.) $ — $ — $ — $ 0.09 $ — $ 0.03 Weighted Average Lease Term (Yrs.) (9) 5.3 5.0 5.2 5.0 4.7 4.8 Total Non-Anchor Anchor Total Non-Anchor Anchor Total Comparative # of Leases 65 2 67 314 28 342 Comparative GLA (sq. ft.) (11) 131,137 74,000 205,137 640,452 874,525 1,514,977 Prior Base Rent ($/sq. ft.) (12) $ 33.67 $ 16.66 $ 27.53 $ 32.77 $ 18.01 $ 24.25 Initial Base Rent ($/sq. ft.) (10) $ 36.08 $ 19.86 $ 30.23 $ 35.30 $ 19.68 $ 26.29 Percentage Change in Base Rents 7.2 % 19.2 % 9.8 % 7.7 % 9.3 % 8.4 % Tenant Improvements ($/sq. ft.) $ 1.04 $ — $ 0.66 $ 0.48 $ 0.47 $ 0.47 Leasing Commissions ($/sq. ft.) $ 0.31 $ 1.25 $ 0.65 $ 0.78 $ 0.21 $ 0.45 Weighted Average Lease Term (Yrs.) (9) 5.4 6.5 5.8 5.4 4.9 5.2 .
Supplemental Disclosure Quarter Ended December 31, 2023 -19- Leased vs. Billed Summary (dollars in thousands) 12/31/23 09/30/23 06/30/23 03/31/23 % leased at beginning of quarter 98.2 % 98.3 % 98.3 % 98.1 % % billed at beginning of quarter 95.7 % 95.7 % 95.1 % 94.2 % ABR of new leases signed/not yet commenced - at beginning of quarter (5) $ 7,289 $ 7,213 $ 6,485 $ 7,625 less: ABR of new leases commenced during quarter (2,154) (1,918) (1,920) (2,142) plus: ABR of new leases signed during quarter 1,859 1,994 2,648 1,002 ABR of new leases signed/not yet commenced - at end of quarter $ 6,994 $ 7,289 \$ 7,213 \$ 6,485 % leased at end of quarter 97.7 % 98.2 % 98.3 % 98.3 % % billed at end of quarter 95.2 % 95.7 % 95.7 % 95.1 % ABR of new leases commenced during quarter - amount billed $ 250 $ 205 $ 182 $ 274
Supplemental Disclosure Quarter Ended December 31, 2023 -20- Footnotes 1. Weighted Average (WA) excludes interest rate swap maturity dates. 2. Does not include extension options available to ROIC. 3. Net unamortized deferred financing charges for the Term Loan, Senior Notes and Mortgages. 4. Calculated in accordance with GAAP pursuant to underlying bond indentures. 5. ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. 6. Same centers are those shopping centers which were owned for the entirety of the current and comparable prior year period, except for one shopping center that is currently planned for redevelopment and is no longer being managed as a retail asset. 7. Includes anchor lease termination fees net of contractual amounts, if any, expense and recovery adjustments related to prior periods and other miscellaneous adjustments. 8. Anchor tenants are leases equal to or greater than 15,000 square feet. 9. Does not assume exercise of renewal options. 10. Initial Base Rent is on a cash basis and is the initial contractual monthly rent, annualized. 11. Comparative GLA includes spaces that were vacant for less than 12 months, excludes spaces that were not leased at the time of acquisition. 12. 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.
Supplemental Disclosure Quarter Ended December 31, 2023 -21- 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 Jeffrey Spector 646.855.1363 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 Wells Fargo Securities Dori Kesten 617.603.4233 James Feldman 212.214.5328 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 Misbah Seyal 212.553.9357 S&P Global Ratings Michael Souers 212.438.2508