Delaware
(State or other jurisdiction
of incorporation)
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001-33749
(Commission File Number)
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26-0500600
(I.R.S. Employer
Identification No.)
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3 Manhattanville Road, Purchase, NY
(Address of Principal Executive Offices)
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10577
(Zip Code)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(a)
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Financial Statements of Business Acquired.
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·
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Independent Auditors’ Report
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·
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Statement of Revenues and Certain Expenses for the Year Ended December 31, 2010 (Audited) and three months ended March 31, 2011 (Unaudited)
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·
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Notes to Statement of Revenues and Certain Expenses for the Year Ended December 31, 2010 (Audited) and three months ended March 31, 2011(Unaudited)
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(b)
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Pro Forma Financial Information.
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·
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Pro Forma Consolidated Balance Sheet As of December 31, 2010 (Unaudited)
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·
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Pro Forma Consolidated Statement of Operations for the Three Months Ended March 31, 2011 (Unaudited)
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·
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Pro Forma Consolidated Statement of Operations for the Year Ended December 31, 2010 (Unaudited)
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·
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Notes to Pro Forma Consolidated Financial Statements (Unaudited)
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(c)
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Exhibits.
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Exhibit No.
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Description
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23.1
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Consent of Independent Auditor.
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99.1
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Financial statements and pro forma financial information referenced above under paragraphs (a) and (b) of this Item 9.01
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RETAIL OPPORTUNITY INVESTMENTS CORP. | |||
Dated: May 17, 2011
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By: |
/s/ John B. Roche
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|
Name: |
John B. Roche
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||
Title: |
Chief Financial Officer
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Exhibit No.
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Description
|
|
23.1
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Consent of Independent Auditor
|
|
99.1
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Financial Statement of Property Acquired and Pro Forma Financial Information.
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Page
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Marketplace Del Rio
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|
Independent Auditors’ Report
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F-1
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Statement of Revenues and Certain Expenses for the Year Ended December 31, 2010 (Audited) and three months ended March 31, 2011 (Unaudited)
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F-2
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Notes to Statement of Revenues and Certain Expenses for the Year Ended December 31, 2010 (Audited) and three months ended March 31, 2011 (Unaudited)
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F-3
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Pro Forma Consolidated Financial Statements of Retail Opportunity Investments Corp.
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Pro Forma Consolidated Balance Sheet As of December 31, 2010 (Unaudited)
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F-6
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Pro Forma Consolidated Statement of Operations for the Three Months Ended March 31, 2011 (Unaudited)
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F-7
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Pro Forma Consolidated Statement of Operations for the Year Ended December 31, 2010 (Unaudited)
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F-8
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Notes to Pro Forma Consolidated Financial Statements (Unaudited)
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F-9
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Year Ended
December 31,
2010
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Three Months
Ended
March 31,
2011
(Unaudited)
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|||||||
Revenues
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||||||||
Rental income (note 3)
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$ | 3,460 | $ | 1,036 | ||||
Other income
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2 | — | ||||||
Total revenues
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3,462 | 1,036 | ||||||
Certain Expenses
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||||||||
Utilities
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113 | 21 | ||||||
Cleaning services
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51 | 21 | ||||||
Repairs, maintenance, and supplies
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330 | 80 | ||||||
Real estate taxes
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226 | 57 | ||||||
Insurance
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56 | 6 | ||||||
Bad debt expense
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— | 13 | ||||||
General & administrative
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19 | 2 | ||||||
Total expenses
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795 | 200 | ||||||
Excess of revenues over certain expenses
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$ | 2,667 | $ | 836 |
Year ending December 31
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Amounts
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|||
2011
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$ | 2,714,606 | ||
2012
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2,815,775 | |||
2013
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2,616,073 | |||
2014
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2,445,457 | |||
2015
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1,869,846 | |||
Thereafter
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9,303,028 | |||
$ | 21,764,785 |
Company
Historical(1)
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Pro Forma
Adjustments
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Company
Pro Forma
|
||||||||||
ASSETS:
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||||||||||||
Real Estate Investments:
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||||||||||||
Land
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$ | 85,473 | $ | 7,140 | (2) | $ | 92,613 | |||||
Building and improvements
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187,260 | 28,560 | (2) | 215,820 | ||||||||
272,733 | 35,700 | 308,433 | ||||||||||
Less: accumulated depreciation
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3,078 | — | 3,078 | |||||||||
269,655 | 35,700 | 305,355 | ||||||||||
Mortgage Notes Receivables
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57,778 | 57,778 | ||||||||||
Investment in and advances to unconsolidated joint venture
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16,779 | — | 16,779 | |||||||||
Real Estate Investments, net
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344,212 | 35,700 | 379,912 | |||||||||
Cash and cash equivalents
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84,736 | (35,200 | )(2) | 49,536 | ||||||||
Restricted cash
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||||||||||||
Tenant and other receivables
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2,838 2,056 | — — | 2,838 2,056 | |||||||||
Deposits
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1,500 | (500 | )(2) | 1,000 | ||||||||
Acquired lease intangible asset, net of accumulated amortization
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17,673 | — | 17,673 | |||||||||
Prepaid expenses
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799 | — | 799 | |||||||||
Deferred charges, net of accumulated amortization
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9,577 | — | 9,577 | |||||||||
Other
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802 | — | 802 | |||||||||
Total assets
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$ | 464,193 | $ | — | $ | 464,193 | ||||||
LIABILITIES AND EQUITY
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||||||||||||
Liabilities:
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||||||||||||
Mortgage notes payable
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$ | 42,417 | $ | — | $ | 42,417 | ||||||
Acquired lease intangible liability, net
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20,996 | — | 20,996 | |||||||||
Accrued expenses
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4,889 | — | 4,889 | |||||||||
Tenants’ security deposit
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860 | — | 860 | |||||||||
Other liabilities
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4,508 | — | 4,508 | |||||||||
Total liabilities
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$ | 73,670 | $ | — | $ | 73,670 | ||||||
Equity:
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||||||||||||
Preferred stock
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— | — | — | |||||||||
Common stock
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4 | — | 4 | |||||||||
Additional-paid-in capital
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403,916 | — | 403,916 | |||||||||
Accumulated deficit
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(12,881 | ) | — | (12,881 | ) | |||||||
Accumulated other comprehensive loss
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(518 | ) | — | (518 | ) | |||||||
Total Retail Opportunity Investments Corp. shareholders’ equity
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390,521 | — | 390,521 | |||||||||
Noncontrolling interests
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2 | — | 2 | |||||||||
Total equity
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390,523 | — | 390,523 | |||||||||
Total liabilities and equity
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$ | 464,193 | $ | — | $ | 464,193 |
Company
Historical(1)
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Marketplace
Del Rio (7)
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Company
Pro Forma
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||||||||||
Revenue
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||||||||||||
Base rents
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$ | 7,181 | $ | 25 | $ | 7,206 | ||||||
Recoveries from tenants
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1,905 | 7 | 1,912 | |||||||||
Mortgage interest
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955 | 955 | ||||||||||
Total revenues
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10,041 | 32 | 10,073 | |||||||||
Operating expenses | ||||||||||||
Property operating
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1,096 | 5 | 1,101 | |||||||||
Property taxes
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1,052 | 3 | 1,055 | |||||||||
Depreciation and amortization
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4,252 | 14 | 4,266 | |||||||||
General & Administrative Expenses
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2,389 | 2,389 | ||||||||||
Acquisition transaction costs
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175 | 175 | ||||||||||
Total operating expenses
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8,964 | 22 | 8,986 | |||||||||
Operating income
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1,077 | 10 | 1,087 | |||||||||
Non-operating income (expenses) | ||||||||||||
Interest expense
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(916 | ) | (916 | ) | ||||||||
Gain on bargain purchase
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5,762 | 5,762 | ||||||||||
Equity in earnings from unconsolidated joint ventures
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243 | 243 | ||||||||||
Interest income
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14 | 14 | ||||||||||
Net income attributable to Retail Opportunity Investments Corp.
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$ | 6,180 | $ | 10 | $ | 6,190 | ||||||
Pro forma weighted average shares outstanding – basic and diluted
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41,847 | 41,847 | ||||||||||
Pro forma income per share | ||||||||||||
Basic and diluted:
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$ | 0.15 | $ | 0.15 | ||||||||
Pro forma dividends per common share: | $ | 0.08 | $ | 0.08 |
Company
Historical(1)
|
Marketplace
Del Rio
|
Pro Forma
Adjustments
|
Company
Pro Forma
|
|||||||||||||
Revenue
|
||||||||||||||||
Base rents
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$ | 12,381 | $ | 2,752 | $ | 290 | (3) | $ | 15,423 | |||||||
Recoveries from tenants
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2,879 | 708 | 3,587 | |||||||||||||
Mortgage interest
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1,069 | — | 1,069 | |||||||||||||
Total revenues
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16,329 | 3,460 | 290 | 20,079 | ||||||||||||
Operating expenses | ||||||||||||||||
Property operating
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2,848 | 550 | 3,398 | |||||||||||||
Property taxes
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1,697 | 226 | 1,923 | |||||||||||||
Depreciation and amortization
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6,081 | 732 | (4) | 6,813 | ||||||||||||
General & Administrative Expenses
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8,381 | 19 | 8,400 | |||||||||||||
Acquisition transaction costs
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2,636 | 35 | (5) | 2,671 | ||||||||||||
Total operating expenses
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21,643 | 795 | 767 | 23,205 | ||||||||||||
Operating (loss) income
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(5,314 | ) | 2,665 | (477 | ) | (3,126 | ) | |||||||||
Non-operating income (expenses) | ||||||||||||||||
Interest expense
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(324 | ) | (324 | ) | ||||||||||||
Gain on bargain purchase
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2,217 | 2,217 | ||||||||||||||
Equity in earnings from unconsolidated joint ventures
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38 | 38 | ||||||||||||||
Interest income
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1,109 | (169 | )(6) | 940 | ||||||||||||
Other income
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1,873 | 2 | 1,875 | |||||||||||||
Net (loss) income attributable to Retail Opportunity Investments Corp.
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$ | (401 | ) | $ | 2,667 | $ | (646 | ) | $ | 1,620 | ||||||
Pro forma weighted average shares outstanding – basic and diluted
|
41,582 | 41,582 | ||||||||||||||
Pro forma (loss) income per share | ||||||||||||||||
Basic and diluted:
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$ | (0.01 | ) | $ | 0.04 | |||||||||||
Pro forma dividends per common share: | $ | 0.18 | $ | 0.18 |
1.
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Derived from the Company’s audited financial statements for the year ended December 31, 2010.
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2.
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Reflects the pro forma acquisition of the Property for approximately $35,700. The acquisition was funded with available cash.
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3.
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Reflects the pro forma adjustment of $290 for the year ended December 31, 2010, to record operating rents on a straight-line basis beginning January 1, 2010.
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4.
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Reflects the estimated depreciation for the Property based on estimated values allocated to building at the beginning period presented. Depreciation expense is computed on a straight-line basis over the estimated useful life of the assets as follows:
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Estimated
Useful Life
|
Year Ended
December 31, 2010
Depreciation
Expense
|
||||
Building
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39 years
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$ | 732 | ||
5.
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Reflects the pro forma adjustment for estimated costs related to the acquisition of the Property.
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6.
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Reflects the pro forma adjustment to interest income to assume the acquisition has been made on January 1, 2010.
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7.
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Reflects the operating results for the period January 1, 2011 to January 2, 2011.
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