Maryland
(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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8905 Towne Centre Drive, Suite 108
San Diego, CA
(Address of Principal Executive Offices)
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92122
(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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Combined Financial Statement of Business Acquired.
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·
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Independent Auditors’ Report
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·
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Combined Statement of Revenues and Certain Expenses for the year ended December 31, 2011 (Audited) and nine months ended September 30, 2012 (Unaudited)
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·
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Notes to Combined Statement of Revenues and Certain Expenses for the year ended December 31, 2011 (Audited) and nine months ended September 30, 2012 (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 September 30, 2012 (Unaudited)
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·
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Pro Forma Consolidated Statement of Operations for the nine months ended September 30, 2012 (Unaudited)
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·
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Pro Forma Consolidated Statement of Operations for the year ended December 31, 2011 (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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Description
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||
23.1
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Consent of Independent Auditors
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99.1
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Combined Financial Statement and Pro Forma Financial Information
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RETAIL OPPORTUNITY INVESTMENTS CORP. | |||
Dated: February 22, 2013
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By: |
/s/ Michael B. Haines
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Michael B. Haines
Chief Financial Officer
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Exhibit No.
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Description
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23.1
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Consent of Independent Auditors
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99.1
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Combined Financial Statement and Pro Forma Financial Information
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Page
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Combined Financial Statement of The Barros Properties
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Pro Forma Consolidated Financial Statements of Retail Opportunity Investments Corp.
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Year Ended
December 31,
2011
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Nine Months Ended
September 30,
2012
(Unaudited)
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|||||||
Revenues
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||||||||
Rental income (note 4)
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$ | 8,776 | $ | 6,420 | ||||
Total revenues
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8,776 | 6,420 | ||||||
Certain Expenses
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||||||||
Utilities
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112 | 92 | ||||||
Repairs, maintenance and supplies
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575 | 596 | ||||||
Cleaning and landscaping
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135 | 109 | ||||||
Real estate taxes
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1,030 | 781 | ||||||
Insurance
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84 | 63 | ||||||
Total expenses
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1,936 | 1,641 | ||||||
Excess of revenues over certain expenses
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$ | 6,840 | $ | 4,779 |
1.
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Business and Organization
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2.
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Basis of Presentation and Summary of Significant Accounting Policies
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3.
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Subsequent Events
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4.
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Leases
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Year ending December 31
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Amounts
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|||
2012
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$ | 7,288,156 | ||
2013
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6,581,121 | |||
2014
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4,927,167 | |||
2015
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3,740,801 | |||
2016
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3,242,183 | |||
Thereafter
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15,204,803 | |||
$ | 40,984,231 |
5.
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Concentrations
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Company
Historical(1)
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Pro Forma
Adjustments
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Company
Pro Forma
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||||||||||
ASSETS:
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||||||||||||
Real Estate Investments:
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||||||||||||
Land
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$ | 214,378 | $ | 22,700 | (2) | $ | 237,078 | |||||
Building and improvements
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512,099 | 90,800 | (2) | 602,899 | ||||||||
726,477 | 113,500 | 839,977 | ||||||||||
Less: accumulated depreciation
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26,986 | — | 26,986 | |||||||||
699,491 | 113,500 | 812,991 | ||||||||||
Mortgage notes receivables
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10,000 | — | 10,000 | |||||||||
Investment in and advances to unconsolidated joint ventures
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15,078 | — | 15,078 | |||||||||
Real Estate Investments, net
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724,569 | 113,500 | 838,069 | |||||||||
Cash and cash equivalents
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23,489 | — | 23,489 | |||||||||
Restricted cash
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1,911 | — | 1,911 | |||||||||
Tenant and other receivables
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10,940 | — | 10,940 | |||||||||
Deposits
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2,600 | — | 2,600 | |||||||||
Acquired lease intangible asset, net of accumulated amortization
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35,987 | — | 35,987 | |||||||||
Prepaid expenses
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586 | — | 586 | |||||||||
Deferred charges, net of accumulated amortization
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19,378 | — | 19,378 | |||||||||
Other
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968 | — | 968 | |||||||||
Total assets
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$ | 820,428 | $ | 113,500 | $ | 933,928 | ||||||
LIABILITIES AND EQUITY
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||||||||||||
Liabilities:
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||||||||||||
Team Loan
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$ | 200,000 | $ | — | $ | 200,000 | ||||||
Credit facilities
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— | 113,500 | (2) | 113,500 | ||||||||
Mortgage notes payable
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60,411 | — | 60,411 | |||||||||
Acquired lease intangible liability, net
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52,335 | — | 52,335 | |||||||||
Accrued expenses
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8,038 | — | 8,038 | |||||||||
Tenants’ security deposit
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1,864 | — | 1,864 | |||||||||
Other liabilities
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25,676 | — | 25,676 | |||||||||
Total liabilities
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$ | 348,324 | $ | 113,500 | $ | 461,824 | ||||||
Equity:
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||||||||||||
Preferred stock
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— | — | — | |||||||||
Common stock
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5 | — | 5 | |||||||||
Additional-paid-in capital
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522,532 | — | 522,532 | |||||||||
Accumulated deficit
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(31,187 | ) | — | (31,187 | ) | |||||||
Accumulated other comprehensive loss
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(19,248 | ) | — | (19,248 | ) | |||||||
Total Retail Opportunity Investments Corp. shareholders’ equity
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472,102 | — | 472,102 | |||||||||
Non-controlling interests
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2 | — | 2 | |||||||||
Total equity
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472,104 | — | 472,104 | |||||||||
Total liabilities and equity
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$ | 820,428 | $ | 113,500 | $ | 933,928 |
Company
Historical(1)
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The Barros
Properties
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Pro forma
Adjustments
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Company
Pro Forma
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|||||||||||||
Revenue
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||||||||||||||||
Base rents
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$ | 42,734 | $ | 5,303 | $ | 235 | (3) | $ | 48,272 | |||||||
Recoveries from tenants
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10,019 | 1,117 | — | 11,136 | ||||||||||||
Mortgage interest
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902 | — | — | 902 | ||||||||||||
Total revenues
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53,655 | 6,420 | 235 | 60,310 | ||||||||||||
Operating expenses | ||||||||||||||||
Property operating
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9,324 | 860 | — | 10,184 | ||||||||||||
Property taxes
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5,115 | 781 | — | 5,896 | ||||||||||||
Depreciation and amortization
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20,738 | — | 1,746 | (4) | 22,484 | |||||||||||
General & administrative expenses
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8,717 | — | — | 8,717 | ||||||||||||
Acquisition transaction costs
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947 | — | 95 | (5) | 1,042 | |||||||||||
Total operating expenses
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44,841 | 1,641 | 1,841 | 48,323 | ||||||||||||
Operating income (Loss)
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8,814 | 4,779 | (1,606 | ) | 11,987 | |||||||||||
Non-operating income (expenses)
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||||||||||||||||
Interest expense
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(8,145 | ) | — | (1,520 | )(6) | (9,665 | ) | |||||||||
Gain on consideration of JV
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2,145 | — | 2,145 | |||||||||||||
Gain on bargain purchase
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3,864 | — | 3,864 | |||||||||||||
Equity in earnings from unconsolidated joint ventures
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1,481 | — | — | 1,481 | ||||||||||||
Interest income
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11 | — | — | 11 | ||||||||||||
Net income attributable to Retail Opportunity Investments Corp.
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$ | 8,170 | $ | 4,779 | $ | (3,126 | ) | $ | 9,823 | |||||||
Pro forma weighted average shares outstanding | ||||||||||||||||
Basic:
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50,863 | 50,863 | ||||||||||||||
Diluted:
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51,266 | 51,226 | ||||||||||||||
Pro forma income per share | ||||||||||||||||
Basic and diluted:
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$ | 0.16 | $ | 0.19 | ||||||||||||
Pro forma dividends per share:
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$ | 0.39 | $ | 0.39 | ||||||||||||
Comprehensive (loss) income: | ||||||||||||||||
Net income attributable to Retail Opportunity Investments Corp.
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$ | 8,170 | $ | — | $ | — | $ | 9,823 | ||||||||
Other comprehensive loss:
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||||||||||||||||
Unrealized loss on swap derivative
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(5,153 | ) | — | — | (5,153 | ) | ||||||||||
Total other comprehensive loss
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(5,153 | ) | — | — | (5,153 | ) | ||||||||||
Total Comprehensive (loss) income
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$ | 3,017 | $ | — | $ | — | $ | 4,670 |
Company
Historical(1)
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The Barros
Properties
|
Pro Forma
Adjustments
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Company
Pro Forma
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|||||||||||||
Revenue
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||||||||||||||||
Base rents
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$ | 39,581 | $ | 7,239 | $ | 314 | (3) | $ | 47,134 | |||||||
Recoveries from tenants
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10,248 | 1,537 | — | 11,785 | ||||||||||||
Mortgage interest
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1,909 | — | — | 1,909 | ||||||||||||
Total revenues
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51,738 | 8,776 | 314 | 60,828 | ||||||||||||
Operating expenses
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||||||||||||||||
Property operating
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8,404 | 906 | — | 9,310 | ||||||||||||
Property taxes
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5,023 | 1,030 | — | 6,053 | ||||||||||||
Depreciation and amortization
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21,264 | — | 2,328 | (4) | 23,592 | |||||||||||
General & Administrative Expenses
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9,801 | — | — | 9,801 | ||||||||||||
Acquisition transaction costs
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2,291 | — | 95 | (5) | 2,386 | |||||||||||
Total operating expenses
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46,783 | 1,936 | 2,423 | 51,142 | ||||||||||||
Operating income (loss)
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4,955 | 6,840 | (2,109 | ) | 9,686 | |||||||||||
Non-operating income (expenses) | ||||||||||||||||
Interest expense
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(6,225 | ) | — | (2,030 | )(6) | (8,255 | ) | |||||||||
Gain on bargain purchase
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9,449 | — | — | 9,449 | ||||||||||||
Equity in earnings from unconsolidated joint ventures
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1,458 | — | — | 1,458 | ||||||||||||
Interest income
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19 | — | — | 19 | ||||||||||||
Net income (loss) attributable to Retail Opportunity Investments Corp.
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$ | 9,656 | $ | 6,840 | $ | (4,139 | ) | $ | 12,357 | |||||||
Pro forma weighted average shares outstanding
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||||||||||||||||
Basic:
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42,477 | 42,477 | ||||||||||||||
Diluted:
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42,526 | 42,526 | ||||||||||||||
Pro forma income per share | ||||||||||||||||
Basic and diluted:
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$ | 0.23 | $ | 0.29 | ||||||||||||
Pro forma dividends per share:
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$ | 0.39 | $ | 0.39 | ||||||||||||
Comprehensive (loss) income:
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||||||||||||||||
Net income attributable to Retail Opportunity Investments Corp.
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$ | 9,656 | $ | — | $ | — | $ | 12,357 | ||||||||
Other comprehensive loss:
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||||||||||||||||
Unrealized loss on swap derivative
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(13,577 | ) | — | — | (13,577 | ) | ||||||||||
Total other comprehensive loss
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(13,577 | ) | — | — | (13,577 | ) | ||||||||||
Total Comprehensive (loss) income
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$ | (3,921 | ) | $ | — | $ | — | $ | (1,220 | ) |
1.
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Derived from the Company’s audited and unaudited financial statements for the year ended December 31, 2011 and the nine months ended September 30, 2012.
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2.
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Reflects the pro forma acquisition of The Barros Properties for approximately $113.5 million. The acquisition was funded entirely by borrowings under the Company’s credit facility.
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3.
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Reflects the pro forma adjustment of $314 and $235 for the year ended December 31, 2011 and the nine months ended September 30 2012, respectively, to record operating rents on a straight-line basis beginning January 1, 2011.
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4.
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Reflects the estimated depreciation for The Barros Properties based on estimated values allocated to building at the beginning of the periods presented. Depreciation expense is computed on a straight-line basis over the estimated useful life of the assets as follows:
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Estimated Useful
Life
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For the Nine Months
Ended September
30, 2012
Depreciation
Expense
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Year Ended
December 31, 2011
Depreciation
Expense
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|||||||
Building
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39 years
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$ | 1,746 | $ | 2,328 |
5.
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Reflects the pro forma adjustment for estimated costs related to the acquisition of The Barros Properties.
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6.
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Reflects the pro forma adjustment to interest expense, assuming the Company had to borrow funds from its credit facility to cover the purchase price as if the acquisition had been made on the first day of the periods presented.
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