1st QUARTER 2021 SUPPLEMENTAL INFORMATION Retail Opportunity Investments Corp. 11250 El Camino Real, Suite 200 San Diego, CA 92130 www.roireit.net
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 March 31, 2021, ROIC owned 88 shopping centers encompassing approximately 10.1 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 (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. Overview Supplemental Disclosure Quarter Ended March 31, 2021 - 2 -
Page Balance Sheets……..……………………………………………………………..………………………………………………… 4 Income Statements .…………………………………………………………………………………..……..…………...………… 5 Funds From Operations …………………………………………………………………………………………………………… 6 Summary of Debt Outstanding .……………………………………………..…………………………………………………… 7 Selected Financial Analysis .……………………………………………………………………………………………………… 9 Property Portfolio ………………………………………………….……………………………………………………………… 10 Same-Center Cash Net Operating Income Analysis……………………………………………………………………………… 13 Top Ten Tenants ………………….…………….………………….……………………………………………………………… 14 Lease Expiration Schedule ……………………..………………………..…….………………………………………………… 15 Leasing Summary ………………………………………………………..…................................................................................ 16 Same-Space Comparative Leasing Summary ………………………………………………………..…...................................... 17 Leased vs. Billed Summary …………………………...………….……………………..…......................................................... 18 COVID-19 Status of Tenants ………………………...………………………………..…............................................................ 19 Investor Information …………………………………………………………..…………………………………………………… 20 Financial Data Portfolio Data Table of Contents Supplemental Disclosure Quarter Ended March 31, 2021 - 3 -
(unaudited, dollars in thousands, except par values and share amounts) 03/31/21 12/31/20 ASSETS: Real Estate Investments: Land 881,914$ 881,872$ Building and improvements 2,275,816 2,274,680 3,157,730 3,156,552 Less: accumulated depreciation 474,801 460,165 2,682,929 2,696,387 Mortgage note receivable 4,939 4,959 Real Estate Investments, net 2,687,868 2,701,346 Cash and cash equivalents 4,843 4,822 Restricted cash 2,149 1,814 Tenant and other receivables, net 59,269 58,756 Acquired lease intangible assets, net 48,340 50,110 Prepaid expenses 3,305 4,811 Deferred charges, net 21,928 22,893 Other assets 17,069 17,296 TOTAL ASSETS 2,844,771$ 2,861,848$ LIABILITIES: Term loan 298,615$ 298,524$ Credit facility 11,458 45,238 Senior Notes 944,045 943,655 Mortgage notes payable 86,247 86,509 Acquired lease intangible liabilities, net 123,056 125,796 Accounts payable and accrued expenses 42,497 17,687 Tenants' security deposits 6,781 6,854 Other liabilities 44,882 46,426 TOTAL LIABILITIES 1,557,581 1,570,689 EQUITY: Common stock, $.0001 par value 500,000,000 shares authorized 12 12 Additional paid-in capital 1,499,420 1,497,662 Dividends in excess of earnings (294,983) (289,309) Accumulated other comprehensive loss (7,358) (8,812) Total Retail Opportunity Investments Corp. stockholders' equity 1,197,091 1,199,553 Non-controlling interests 90,099 91,606 TOTAL EQUITY 1,287,190 1,291,159 TOTAL LIABILITIES AND EQUITY 2,844,771$ 2,861,848$ The Company's Form 10-Q for the quarter ended March 31, 2021, and Form 10-K for the year ended December 31, 2020 should be read in conjunction with the above information. Balance Sheets Supplemental Disclosure Quarter Ended March 31, 2021 - 4 -
(unaudited, in thousands, except per share amounts) Three Months Ended Three Months En 03/31/21 03/31/20 03/31/21 REVENUES: Rental revenue (1) 68,904$ 74,197$ 280,388$ Other income 283 675 3,726 TOTAL REVENUES 69,187 74,872 284,114 OPERATING EXPENSES: Property operating 10,559 10,604 41,050 Property taxes 8,606 7,989 33,288 Depreciation and amortization 23,040 24,278 97,731 General and administrative expenses 4,375 3,944 16,755 Other expense 153 64 843 TOTAL OPERATING EXPENSES 46,733 46,879 189,667 OPERATING INCOME 22,454 27,993 94,447 NON-OPERATING EXPENSES: Interest expense and other finance expenses (14,480) (14,857) (59,726) NET INCOME 7,974 13,136 34,721 NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (559) (1,134) (2,707) NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. 7,415$ 12,002$ 32,014$ NET INCOME PER COMMON SHARE - BASIC 0.06$ 0.10$ 0.27$ NET INCOME PER COMMON SHARE - DILUTED 0.06$ 0.10$ 0.27$ Weighted average common shares outstanding - basic 117,740 115,970 116,732 Weighted average common shares outstanding - diluted 126,874 127,181 126,627 (1) RENTAL REVENUE Base rents 50,907$ 52,106$ Recoveries from tenants 17,325 17,417 Straight-line rent 18 (89) Amortization of above- and below-market rent 2,232 5,478 Bad debt (1,578) (715) TOTAL RENTAL REVENUE 68,904$ 74,197$ -$ The Company's Form 10-Q for the quarters ended March 31, 2021 and March 31, 2020 should be read in conjunction with the above information. Income Statements Supplemental Disclosure Quarter Ended March 31, 2021 - 5 -
(unaudited, in thousands, except per share amounts) Three Months Ended Three Month 03/31/21 03/31/20 03/31/21 Funds from Operations (FFO) (1) : Net income attributable to ROIC common stockholders 7,415$ 12,002$ 32,014$ Plus: Depreciation and amortization expense 23,040 24,278 97,731 FUNDS FROM OPERATIONS - BASIC 30,455 36,280 129,745 Net income attributable to non-controlling interests 559 1,134 2,707 FUNDS FROM OPERATIONS - DILUTED 31,014$ 37,414$ 132,452$ FUNDS FROM OPERATIONS PER SHARE - BASIC 0.26$ 0.31$ 1.11$ FUNDS FROM OPERATIONS PER SHARE - DILUTED 0.24$ 0.29$ 1.05$ Weighted average common shares outstanding - basic 117,740 115,970 116,732 Weighted average common shares outstanding - diluted 126,874 127,181 126,627 Common dividends per share 0.11$ 0.20$ 0.2000$ FFO Payout Ratio 45.8% 69.0% 19.0% Additional Disclosures: Non Cash Expense (Income) Straight line rent (18)$ 89$ (1,079)$ Above/below market rent amortization, net (2,232) (5,478) (17,654) Non-cash interest expense 73 73 293 Deferred financing costs and mortgage premiums, net 591 526 2,219 Stock based compensation 2,063 1,856 8,914 Capital Expenditures Tenant improvements 3,336$ 5,877$ -$ Leasing commissions 355 497 - Building improvements 132 229 - Reimbursable property improvements 106 387 - Pad and other development 2,551 2,906 - Value enhancing tenant improvements 1,266 2,080 - The above does not purport to disclose all items required under GAAP. (1) - Funds from operations ("FFO"), is a widely-recognized non GAAP financial measure for REITs that ROIC believes, when considered with financial statements determined in accordance with GAAP, provides additional and useful means to assess its financial performance. FFO is frequently used by securities analysts, investors and other interested parties to evaluate the performance of REITs. ROIC computes FFO in accordance with the "White Paper" on FFO published by the National Association of Real Estate Investment Trusts ("NAREIT"), which defines FFO as net income attributable to common shareholders (determined in accordance with GAAP) excluding gains or losses from debt restructuring and sales of property, plus real estate related depreciation and amortization, and after adjustments for partnerships and unconsolidated joint ventures. Funds From Operations Supplemental Disclosure Quarter Ended March 31, 2021 - 6 -
(unaudited, dollars in thousands) Outstanding GAAP Maturity Percent of Balance Interest Rate Interest Rate Date Total Indebtedness Fixed Rate Debt Mortgage Debt: Casitas Plaza Shopping Center 6,792$ 5.32% 4.20% 06/01/22 0.5% Riverstone Marketplace 17,136 4.96% 3.80% 07/01/22 1.3% Fullerton Crossroads 26,000 4.73% 3.82% 04/06/24 1.9% Diamond Hills Plaza 35,500 3.55% 3.61% 10/01/25 2.6% Net unamortized premiums/deferred financing charges 819 Total Mortgage Debt 86,247 4.33% 3.76% 3.1 Years (WA) 6.3% Unsecured Senior Notes: Senior Notes Due 2023 250,000 5.00% 5.21% 12/15/23 18.5% Senior Notes Due 2024 250,000 4.00% 4.21% 12/15/24 18.5% Senior Notes Due 2026 200,000 3.95% 3.95% 09/22/26 14.9% Senior Notes Due 2027 250,000 4.19% 4.19% 12/15/27 18.5% Net unamortized discounts/deferred financing charges (5,955) Total Unsecured Senior Notes 944,045 4.30% 4.41% 4.6 Years (WA) 70.4% Term Loan: Interest rate swaps 100,000 3.59% 3.59% 8/31/2022 7.4% Interest rate swaps 200,000 2.74% 2.74% 8/31/2022 14.9% Total Term Loan 300,000 3.02% 3.02% 22.3% Total Fixed Rate Debt 1,330,292 4.02% 4.06% 4.5 Years (WA) 99.0% Variable Rate Debt Credit Facility 14,000 1.01% 1.01% 02/20/24 1.0% Net unamortized deferred financing charges (2,542) Credit Facility, net 11,458 Term Loan 300,000 01/20/25 Net unamortized deferred financing charges (1,385) Term Loan, net 298,615 Interest rate swaps - Term loan (300,000) Total Variable Rate Debt 10,073 1.01% 1.01% 3.8 Years (WA) 1.0% TOTAL DEBT 1,340,365$ 3.99% 4.03% 4.3 Years (WA) 100.0% Net unamortized premiums on mortgages (993) Net unamortized discounts on notes 2,820 Net unamortized deferred financing charges 7,236 Total Principal Debt 1,349,428$ (1) Does not include extension options available to ROIC. Summary of Debt Outstanding (1) Supplemental Disclosure Quarter Ended March 31, 2021 - 7 -
(unaudited, dollars in thousands) Summary of Principal Maturities Senior Total Principal Percentage of Credit Facility Term Loan Unsecured Notes Payments Debt Maturing -$ -$ -$ -$ 565$ 0.0% 23,129 - - - 24,132 1.8% - - - 250,000 250,686 18.6% 26,000 14,000 - 250,000 290,708 21.5% 32,787 - 300,000 - 333,337 24.7% - - - 200,000 200,000 14.9% - - - 250,000 250,000 18.5% - - - - - - % 81,916$ 14,000$ 300,000$ 950,000$ 1,349,428$ 100.0% Summary of Unencumbered/Encumbered Properties Percentage GLA of GLA Unencumbered properties 9,514,763 94.5% Encumbered properties 552,471 5.5% 10,067,234 100.0% Summary of Unsecured Debt/Secured Debt Percentage of Total Principal Debt Unsecured principal debt 1,264,000$ 93.7% Secured principal debt 85,428 6.3% Total Principal Debt 1,349,428$ 100.0% (1) Does not include extension options available to ROIC. 88 Thereafter - 3,512$ Number of Properties 84 4 Year Payments 2022 1,003 Mortgage Principal due at Maturity Amount 2021 565$ Mortgage Principal 2023 686 2024 708 2025 550 2026 - 2027 - Summary of Debt Outstanding, continued (1) Supplemental Disclosure Quarter Ended March 31, 2021 - 8 -
(unaudited, in thousands, except per share amounts) 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20 Debt coverage ratios, three months ending: Interest coverage ratio (EBITDA/interest expense) 3.2x 3.4x 3.1x 3.0x 3.5x Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 3.1x 3.3x 3.1x 2.9x 3.5x Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 7.3x 7.5x 7.3x 7.9x 7.0x Net principal debt (Total principal debt less cash & equivalents)/TTM EBITDA 7.2x 7.1x 7.1x 7.2x 7.1x Debt/book value ratios, at period end: Total principal debt/total book assets 47.4% 48.3% 49.3% 51.8% 50.3% Total principal debt/undepreciated book value 40.7% 41.6% 42.8% 45.4% 44.2% Secured principal debt/undepreciated book value 2.6% 2.6% 2.5% 2.5% 2.6% Market capitalization calculations, at period end: Common shares outstanding 117,813 117,409 117,264 116,962 115,440 Operating partnership units (OP units) outstanding 8,867 8,966 9,111 9,413 10,934 Common stock price per share 15.87$ 13.39$ 10.42$ 11.33$ 8.29$ Total equity market capitalization 2,010,409$ 1,692,160$ 1,316,827$ 1,431,828$ 1,047,648$ Total principal debt 1,349,428 1,383,580 1,439,228 1,569,373 1,489,515 TOTAL MARKET CAPITALIZATION 3,359,837$ 3,075,740$ 2,756,055$ 3,001,201$ 2,537,163$ Unsecured Senior Notes Financial Covenants: (1) Total debt to total assets not to exceed 60% 43.0% 44.1% 45.4% 48.1% 46.9% Total secured debt to total assets not to exceed 40% 2.7% 2.7% 2.7% 2.6% 2.7% Total unencumbered assets to total unsecured debt not to be less than 150% 262.5% 227.5% 220.9% 207.7% 213.5% Consolidated income available for debt service to interest expense not to be less than 1.5:1 3.1x 3.2x 3.2x 3.3x 3.3x (1) Calculated in accordance with GAAP pursuant to underlying bond indentures. Selected Financial Analysis Supplemental Disclosure Quarter Ended March 31, 2021 - 9 -
(dollars in thousands) Date Owned % Southern California City State Acquired GLA Leased ABR (1) Major Tenants Los Angeles metro area Paramount Plaza * Paramount CA 12/22/09 95,062 100.0% 1,961$ Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy Claremont Promenade * Claremont CA 09/23/10 92,297 95.0% 2,376 Super King Supermarket Gateway Village * Chino Hills CA 12/17/10 96,959 95.2% 2,894 Sprouts Market Seabridge Marketplace * Oxnard CA 05/31/12 98,348 95.3% 1,904 Safeway (Vons) Supermarket Glendora Shopping Center * Glendora CA 08/01/12 106,535 92.4% 1,313 Albertson's Supermarket Redondo Beach Plaza * Redondo Beach CA 12/28/12 110,509 100.0% 2,357 Safeway (Vons) Supermarket, Petco Diamond Bar Town Center * Diamond Bar CA 02/01/13 100,342 100.0% 2,424 Walmart Neighborhood Market, Crunch Fitness Diamond Hills Plaza * Diamond Bar CA 04/22/13 139,505 96.6% 3,929 H-Mart Supermarket Plaza de la Cañada * La Cañada Flintridge CA 12/13/13 100,425 100.0% 2,676 Gelson's Supermarket, TJ Maxx, Rite Aid Pharmacy Fallbrook Shopping Center * Los Angeles CA 06/13/14 755,299 98.8% 13,089 Sprouts Market, Trader Joe's, Kroger (Ralph's) Supermarket(2), TJ Maxx Moorpark Town Center * Moorpark CA 12/03/14 133,547 89.8% 1,827 Kroger (Ralph's) Supermarket, CVS Pharmacy Ontario Plaza * Ontario CA 01/06/15 150,149 94.4% 2,324 El Super Supermarket, Rite Aid Pharmacy Park Oaks Shopping Center * Thousand Oaks CA 01/06/15 110,092 88.4% 2,476 Safeway (Vons) Supermarket, Dollar Tree Warner Plaza * Woodland Hills CA 12/31/15 110,918 88.6% 4,077 Sprouts Market, Kroger (Ralph's) Supermarket (2), Rite Aid Pharmacy (2) Magnolia Shopping Center * Santa Barbara CA 03/10/16 116,360 87.1% 2,122 Kroger (Ralph's) Supermarket Casitas Plaza Shopping Center * Carpinteria CA 03/10/16 105,118 97.7% 1,805 Albertson's Supermarket, CVS Pharmacy Bouquet Center * Santa Clarita CA 04/28/16 148,903 97.2% 3,610 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less North Ranch Shopping Center * Westlake Village CA 06/01/16 146,448 90.2% 4,727 Kroger (Ralph's) Supermarket, Trader Joe's, Rite Aid Pharmacy, Petco The Knolls * Long Beach CA 10/03/16 52,021 95.2% 1,268 Trader Joe's, Pet Food Express The Terraces * Rancho Palos Verdes CA 03/17/17 172,922 93.6% 3,488 Trader Joe's, Marshall's, LA Fitness Los Angeles metro area total 2,941,759 95.5% 62,647$ Orange County metro area Santa Ana Downtown Plaza * Santa Ana CA 01/26/10 105,536 96.0% 2,238$ Kroger (Food 4 Less) Supermarket, Marshall's Sycamore Creek * Corona CA 09/30/10 74,198 97.0% 1,829 Safeway (Vons) Supermarket, CVS Pharmacy (2) Desert Springs Marketplace * Palm Desert CA 02/17/11 113,718 97.7% 2,894 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy Cypress Center West * Cypress CA 12/04/12 107,246 96.8% 2,115 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy Harbor Place Center * Garden Grove CA 12/28/12 119,836 98.8% 1,821 AA Supermarket, Ross Dress For Less, Autozone 5 Points Plaza * Huntington Beach CA 09/27/13 160,536 95.0% 4,137 Trader Joe's Peninsula Marketplace * Huntington Beach CA 10/15/13 95,416 98.8% 2,448 Kroger (Ralph's) Supermarket, Planet Fitness Fullerton Crossroads * Fullerton CA 10/11/17 219,785 98.9% 3,591 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 91.1% 2,778 Smart & Final Extra Supermarket Orange Country metro area total 1,085,312 96.9% 23,851$ San Diego metro area Marketplace Del Rio * Oceanside CA 01/03/11 183,787 96.0% 3,485$ Stater Brothers Supermarket, Walgreens Renaissance Towne Centre * San Diego CA 08/03/11 53,272 88.9% 2,388 CVS Pharmacy Euclid Plaza * San Diego CA 03/29/12 77,044 100.0% 1,579 Vallarta Supermarket, Walgreens Bay Plaza * San Diego CA 10/05/12 73,324 98.0% 2,102 Seafood City Supermarket Bernardo Heights Plaza * Rancho Bernardo CA 02/06/13 37,729 100.0% 966 Sprouts Market Hawthorne Crossings * San Diego CA 06/27/13 141,288 98.6% 3,335 Mitsuwa Supermarket, Ross Dress For Less, Staples Creekside Plaza * Poway CA 02/28/14 133,852 91.8% 2,976 Stater Brothers Supermarket, AMC Theatres San Diego metro area total 700,296 96.0% 16,831$ Southern California Totals 4,727,367 95.9% 103,329$ (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. *Denotes properties in same center pool for 1Q 2021. Property Portfolio Supplemental Disclosure Quarter Ended March 31, 2021 - 10 -
(dollars in thousands) Date Owned % Northern California City State Acquired GLA Leased ABR (1) Major Tenants San Francisco metro area Pleasant Hill Marketplace * Pleasant Hill CA 04/08/10 69,715 100.0% 1,471$ Total Wine and More, Buy Buy Baby, Basset Furniture Pinole Vista Shopping Center * Pinole CA 01/06/11 135,962 98.6% 3,920 SaveMart (Lucky) Supermarket, Planet Fitness Country Club Gate Center * Pacific Grove CA 07/08/11 109,331 91.0% 2,177 SaveMart (Lucky) Supermarket, Rite Aid Pharmacy Marlin Cove Shopping Center * Foster City CA 05/04/12 73,943 100.0% 2,481 99 Ranch Market The Village at Novato * Novato CA 07/24/12 20,081 100.0% 560 Trader Joe's, Pharmaca Pharmacy Santa Teresa Village * San Jose CA 11/08/12 127,888 99.2% 3,019 Grocery Outlet Supermarket, Dollar Tree, MedVet Silicon Valley Granada Shopping Center * Livermore CA 06/27/13 71,525 100.0% 1,488 SaveMart (Lucky) Supermarket Country Club Village * San Ramon CA 11/26/13 111,093 97.6% 2,243 Walmart Neighborhood Market, CVS Pharmacy North Park Plaza * San Jose CA 04/30/14 76,697 100.0% 2,653 H-Mart Supermarket Winston Manor * South San Francisco CA 01/07/15 49,852 100.0% 1,811 Grocery Outlet Supermarket Jackson Square * Hayward CA 07/01/15 114,220 100.0% 2,329 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness Gateway Centre * San Ramon CA 09/01/15 112,553 95.3% 2,598 SaveMart (Lucky) Supermarket, Walgreens Iron Horse Plaza * Danville CA 12/04/15 61,915 100.0% 2,360 Lunardi's Market Monterey Center * Monterey CA 07/14/16 25,626 93.7% 1,023 Trader Joe's, Pharmaca Pharmacy Santa Rosa Southside Shopping Center * Santa Rosa CA 03/24/17 88,535 95.9% 1,574 REI, Cost Plus World Market, DSW Monta Loma Plaza * Mountain View CA 09/19/17 48,078 94.4% 1,395 Safeway Supermarket San Francisco metro area total 1,297,014 97.8% 33,102$ Sacramento metro area Mills Shopping Center * Rancho Cordova CA 02/17/11 235,514 89.7% 2,745$ Viva Supermarket, Ross Dress For Less (dd's Discounts), Dollar Tree Green Valley Station * Cameron Park CA 06/15/12 52,245 89.6% 971 CVS Pharmacy Sacramento metro area total 287,759 89.7% 3,716$ Northern California Totals 1,584,773 96.3% 36,818$ (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. *Denotes properties in same center pool for 1Q 2021. Property Portfolio, continued Supplemental Disclosure Quarter Ended March 31, 2021 - 11 -
(dollars in thousands) Date Owned % Pacific Northwest City State Acquired GLA Leased ABR (1) Major Tenants Seattle metro area Meridian Valley Plaza * Kent WA 02/01/10 51,597 100.0% 874$ Kroger (QFC) Supermarket The Market at Lake Stevens * Lake Stevens WA 03/11/10 74,130 100.0% 1,681 Albertson's (Haggen) Supermarket Canyon Park Shopping Center * Bothell WA 07/29/11 123,592 100.0% 2,537 PCC Community Markets, Rite Aid Pharmacy, Petco Hawks Prairie Shopping Center * Lacey WA 09/09/11 157,529 99.2% 2,066 Safeway Supermarket, Dollar Tree, Big Lots The Kress Building * Seattle WA 09/30/11 74,616 69.2% 1,434 IGA Supermarket, TJMaxx Gateway Shopping Center * Marysville WA 02/16/12 104,298 96.1% 2,559 WinCo Foods (2), Rite Aid Pharmacy, Ross Dress For Less Aurora Square * Shoreline WA 2012/2014 108,558 97.4% 1,909 Central Supermarket, Marshall's Canyon Crossing * Puyallup WA 04/15/13 120,398 100.0% 2,873 Safeway Supermarket Crossroads Shopping Center * Bellevue WA 2010/2013 473,147 97.7% 11,618 Kroger (QFC) Supermarket, Bed Bath & Beyond, Dick's Sporting Goods Bellevue Marketplace * Bellevue WA 12/10/15 113,758 100.0% 3,417 Asian Family Market Four Corner Square * Maple Valley WA 12/21/15 119,531 100.0% 2,647 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden Bridle Trails Shopping Center * Kirkland WA 10/17/16 110,640 98.0% 2,314 Grocery Outlet Supermarket, Bartell Drugs, Dollar Tree PCC Community Markets Plaza * Edmonds WA 01/25/17 34,459 100.0% 690 PCC Community Markets Highland Hill Shopping Center * Tacoma WA 05/09/17 163,926 100.0% 3,088 National Supermarket, LA Fitness, Dollar Tree, Petco North Lynnwood Shopping Center * Lynnwood WA 10/19/17 63,606 93.4% 1,018 Grocery Outlet Supermarket, Dollar Tree Stadium Center * Tacoma WA 02/23/18 48,888 100.0% 1,037 Thriftway Supermarket Summerwalk Village * Lacey WA 12/13/19 60,379 98.0% 880 Walmart Neighborhood Market Seattle metro area total 2,003,052 97.5% 42,642$ Portland metro area Happy Valley Town Center * Happy Valley OR 07/14/10 138,397 100.0% 3,812$ New Seasons Supermarket Wilsonville Old Town Square * Wilsonville OR 2010/2012 49,937 100.0% 1,850 Kroger (Fred Meyer) Supermarket (2) Cascade Summit Town Square * West Linn OR 08/20/10 94,934 100.0% 1,846 Safeway Supermarket Heritage Market Center * Vancouver WA 09/23/10 108,054 100.0% 1,896 Safeway Supermarket, Dollar Tree Division Crossing * Portland OR 12/22/10 103,561 100.0% 1,318 Rite Aid Pharmacy, Ross Dress For Less, Ace Hardware Halsey Crossing * Gresham OR 12/22/10 99,428 100.0% 1,418 24 Hour Fitness, Dollar Tree Hillsboro Market Center * Hillsboro OR 11/23/11 156,021 100.0% 2,631 Albertson's Supermarket, Dollar Tree, Ace Hardware Robinwood Shopping Center * West Linn OR 08/23/13 70,831 98.3% 1,069 Walmart Neighborhood Market Tigard Marketplace * Tigard OR 02/18/14 136,889 100.0% 2,086 H-Mart Supermarket, Bi-Mart Wilsonville Town Center * Wilsonville OR 12/11/14 167,829 100.0% 2,943 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree Tigard Promenade * Tigard OR 07/28/15 88,043 100.0% 1,515 Safeway Supermarket Sunnyside Village Square * Happy Valley OR 07/28/15 92,278 100.0% 1,605 Grocery Outlet Supermarket, Snap Fitness, Ace Hardware Johnson Creek Center * Happy Valley OR 11/09/15 108,588 100.0% 2,292 Trader Joe's, Walgreens, Sportsman's Warehouse Rose City Center * Portland OR 09/15/16 60,680 100.0% 833 Safeway Supermarket Division Center * Portland OR 04/05/17 118,122 100.0% 2,123 Grocery Outlet Supermarket, Rite Aid Pharmacy, Petco Riverstone Marketplace * Vancouver WA 10/11/17 95,774 100.0% 2,275 Kroger (QFC) Supermarket King City Plaza * King City OR 05/18/18 62,676 91.2% 935 Grocery Outlet Supermarket Portland metro area total 1,752,042 99.6% 32,447$ Pacific Northwest Totals 3,755,094 98.5% 75,089$ TOTAL SHOPPING CENTERS 10,067,234 96.9% 215,236$ (1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end. (2) These retailers are not tenants of ROIC. *Denotes properties in same center pool for 1Q 2021. Property Portfolio, continued Supplemental Disclosure Quarter Ended March 31, 2021 - 12 -
(unaudited, dollars in thousands) Three Months Ended Three Month 03/31/21 03/31/20 $ Change % Change 03/31/21 03/31/20 Number of shopping centers included in same-center analysis (1) 88 88 88 88 Same-center occupancy 96.9% 97.7% (0.8)% 96.9% 97.7% REVENUES: Base rents 50,710$ 51,945$ (1,235)$ (2.4%) 204,148$ 203,334$ Percentage rent 182 93 89 95.7% 505 1,324 Recoveries from tenants 17,083 17,278 (195) (1.1%) 66,336 66,255 Other property income 109 388 (279) (71.9)% 2,390 2,945 Bad debt (1,505) (486) (1,019) 209.7% (10,196) (1,417) TOTAL REVENUES 66,579 69,218 (2,639) (3.8%) 263,183 272,441 OPERATING EXPENSES: Property operating expenses 10,809 11,162 (353) (3.2%) 42,671 44,100 Property taxes 8,562 8,042 520 6.5% 33,091 31,783 TOTAL OPERATING EXPENSES 19,371 19,204 167 0.9% 75,762 75,883 SAME-CENTER CASH NET OPERATING INCOME 47,208$ 50,014$ (2,806)$ (5.6%) 187,421$ 196,558$ SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION GAAP Operating Income 22,454$ 27,993$ 94,447$ 115,370$ Depreciation and amortization 23,040 24,278 97,731 97,559 General and administrative expenses 4,375 3,944 16,755 17,831 Other expense 153 64 843 1,405 Straight-line rent (18) 89 (1,079) (3,083) Amortization of above- and below-market rent (2,232) (5,478) (17,654) (15,618) Property revenues and other expenses (2) (129) (150) (374) (142) TOTAL COMPANY CASH NET OPERATING INCOME 47,643 50,740 190,669 200,147 Non Same-Center Cash NOI (435) (726) (3,248) (3,589) SAME-CENTER CASH NET OPERATING INCOME 47,208$ 50,014$ 187,421$ 196,558$ (1) Same centers are those properties which were owned for the entirety of the current and comparable prior year period. (2) Includes anchor lease termination fees net of contractual amounts, if any, expense and recovery adjustments related to prior periods and other miscellaneous adjustments. Same-Center Cash Net Operating Income Analysis Supplemental Disclosure Quarter Ended March 31, 2021 - 13 -
(dollars in thousands) Percent Number of Leased of Total Percent of Tenant Leases GLA Leased GLA ABR Total ABR 1 Albertson's / Safeway Supermarkets 18 898,425 9.2% 11,689$ 5.4% 2 Kroger Supermarkets 11 483,455 5.0% 7,538 3.5% 3 SaveMart Supermarkets 4 187,639 1.9% 3,983 1.8% 4 JP Morgan Chase 21 95,163 1.0% 3,185 1.5% 5 Rite Aid Pharmacy 12 232,586 2.4% 3,080 1.4% 6 Marshall's / TJMaxx 6 178,195 1.8% 2,840 1.3% 7 Trader Joe's 8 96,714 1.0% 2,802 1.3% 8 Sprouts Markets 4 159,163 1.6% 2,747 1.3% 9 Ross Dress For Less / dd's Discounts 7 191,703 2.0% 2,714 1.3% 10 Grocery Outlet Supermarkets 9 194,443 2.0% 2,662 1.2% Top 10 Tenants Total 100 2,717,486 27.9% 43,240$ 20.0% Other Tenants 1,805 7,037,682 72.1% 171,996 80.0% Total Portfolio 1,905 9,755,168 100.0% 215,236$ 100.0% Top Ten Tenants Supplemental Disclosure Quarter Ended March 31, 2021 - 14 -
(dollars in thousands) Anchor Tenants (1) Number of Leased Percent of Total Percent of ABR Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2021 3 82,424 0.8% 1,126 0.5% 13.66 2022 15 468,274 4.8% 5,931 2.8% 12.67 2023 27 860,417 8.8% 13,542 6.3% 15.74 2024 15 505,124 5.2% 8,415 3.9% 16.66 2025 20 660,405 6.8% 9,095 4.2% 13.77 2026 19 677,019 6.9% 8,779 4.1% 12.97 2027 7 148,818 1.5% 2,196 1.0% 14.76 2028 14 514,446 5.3% 9,360 4.3% 18.19 2029 12 433,505 4.4% 7,976 3.7% 18.40 2030 7 267,773 2.7% 4,180 1.9% 15.61 2031+ 24 859,486 8.9% 13,011 6.0% 15.14 163 5,477,691 56.1% 83,611$ 38.7% 15.26$ Non-Anchor Tenants Number of Leased Percent of Total Percent of ABR Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2021 231 419,815 4.3% 13,317 6.2% 31.72 2022 284 597,604 6.1% 18,279 8.5% 30.59 2023 286 632,372 6.5% 20,037 9.3% 31.69 2024 259 615,117 6.3% 18,948 8.8% 30.80 2025 238 598,109 6.1% 17,764 8.3% 29.70 2026 164 437,361 4.5% 12,810 6.0% 29.29 2027 67 217,799 2.2% 6,316 2.9% 29.00 2028 56 178,742 1.8% 6,374 3.0% 35.66 2029 44 143,132 1.5% 4,600 2.1% 32.13 2030 40 116,234 1.2% 4,476 2.1% 38.51 2031+ 73 321,192 3.4% 8,704 4.1% 27.10 1,742 4,277,477 43.9% 131,625$ 61.3% 30.77$ All Tenants Number of Leased Percent of Total Percent of ABR Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft. 2021 234 502,239 5.1% 14,443 6.7% 28.76 2022 299 1,065,878 10.9% 24,210 11.3% 22.71 2023 313 1,492,789 15.3% 33,579 15.6% 22.49 2024 274 1,120,241 11.5% 27,363 12.7% 24.43 2025 258 1,258,514 12.9% 26,859 12.5% 21.34 2026 183 1,114,380 11.4% 21,589 10.1% 19.37 2027 74 366,617 3.7% 8,512 3.9% 23.22 2028 70 693,188 7.1% 15,734 7.3% 22.70 2029 56 576,637 5.9% 12,576 5.8% 21.81 2030 47 384,007 3.9% 8,656 4.0% 22.54 2031+ 97 1,180,678 12.3% 21,715 10.1% 18.39 1,905 9,755,168 100.0% 215,236$ 100.0% 22.06$ (1) Anchor tenants are leases equal to or greater than 15,000 square feet. (2) Does not assume exercise of renewal options. Lease Expiration Schedule Supplemental Disclosure Quarter Ended March 31, 2021 - 15 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor Number of Leases 41 - 41 41 - Gross Leasable Area (sq. ft.) 99,931 - 99,931 99,931 - Initial Base Rent ($/sq. ft.) (1) 25.09$ -$ 25.09$ 25.09$ -$ Tenant Improvements ($/sq. ft.) 0.05$ -$ 0.05$ 0.05$ -$ Leasing Commissions ($/sq. ft.) 3.14$ -$ 3.14$ 3.14$ -$ Weighted Average Lease Term (Yrs.) (2) 7.0 - 7.0 7.0 - Renewals Non-Anchor Anchor Total Non-Anchor Anchor Number of Leases 64 2 66 64 2 Gross Leasable Area (sq. ft.) 146,535 46,975 193,510 146,535 46,975 Initial Base Rent ($/sq. ft.) (1) 29.18$ 10.19$ 24.57$ 29.18$ 10.19$ Tenant Improvements ($/sq. ft.) 0.02$ -$ 0.02$ 0.02$ -$ Leasing Commissions ($/sq. ft.) -$ -$ -$ -$ -$ Weighted Average Lease Term (Yrs.) (2) 3.9 5.0 4.2 3.9 5.0 Total Non-Anchor Anchor Total Non-Anchor Anchor Number of Leases 105 2 107 105 2 Gross Leasable Area (sq. ft.) 246,466 46,975 293,441 246,466 46,975 Initial Base Rent ($/sq. ft.) (1) 27.52$ 10.19$ 24.75$ 27.52$ 10.19$ Tenant Improvements ($/sq. ft.) 0.03$ -$ 0.03$ 0.03$ -$ Leasing Commissions ($/sq. ft.) 1.27$ -$ 1.07$ 1.27$ -$ Weighted Average Lease Term (Yrs.) (2) 5.2 5.0 5.1 5.2 5.0 (1) Initial Base Rent is on a cash basis and is the initial contractual monthly rent, annualized. (2) Does not assume exercise of renewal options. For the Three Months Ended March 31, 2021 For the Three Months Ended M Leasing Summary Supplemental Disclosure Quarter Ended March 31, 2021 - 16 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor Comparative # of Leases 28 - 28 28 - Comparative GLA (sq. ft.) (1) 56,228 - 56,228 56,228 - Prior Base Rent ($/sq. ft.) (2) 28.99$ -$ 28.99$ 28.99$ -$ Initial Base Rent ($/sq. ft.) 30.42$ -$ 30.42$ 30.42$ -$ Percentage Change in Base Rents 4.9% - 4.9% 4.9% - Tenant Improvements ($/sq. ft.) -$ -$ -$ -$ -$ Leasing Commissions ($/sq. ft.) 3.74$ -$ 3.74$ 3.74$ -$ Weighted Average Lease Term (Yrs.) (3) 7.6 - 7.6 7.6 - Renewals Non-Anchor Anchor Total Non-Anchor Anchor Comparative # of Leases 64 2 66 64 2 Comparative GLA (sq. ft.) 146,535 46,975 193,510 146,535 46,975 Prior Base Rent ($/sq. ft.) (2) 28.26$ 9.92$ 23.81$ 28.26$ 9.92$ Initial Base Rent ($/sq. ft.) 29.18$ 10.19$ 24.57$ 29.18$ 10.19$ Percentage Change in Base Rents 3.2% 2.7% 3.2% 3.2% 2.7% Tenant Improvements ($/sq. ft.) 0.02$ -$ 0.02$ 0.02$ -$ Leasing Commissions ($/sq. ft.) -$ -$ -$ -$ -$ Weighted Average Lease Term (Yrs.) (3) 3.9 5.0 4.2 3.9 5.0 Total Non-Anchor Anchor Total Non-Anchor Anchor Comparative # of Leases 92 2 94 92 2 Comparative GLA (sq. ft.) (1) 202,763 46,975 249,738 202,763 46,975 Prior Base Rent ($/sq. ft.) (2) 28.46$ 9.92$ 24.98$ 28.46$ 9.92$ Initial Base Rent ($/sq. ft.) 29.52$ 10.19$ 25.89$ 29.52$ 10.19$ Percentage Change in Base Rents 3.7% 2.7% 3.6% 3.7% 2.7% Tenant Improvements ($/sq. ft.) 0.02$ -$ 0.01$ 0.02$ -$ Leasing Commissions ($/sq. ft.) 1.04$ -$ 0.84$ 1.04$ -$ Weighted Average Lease Term (Yrs.) (3) 4.9 5.0 4.9 4.9 5.0 (1) Comparative GLA includes spaces that were vacant for less than 12 months, excluding spaces that were not leased at the time of acquisition. (2) Prior Base Rent is on a cash basis and is the final monthly rent paid, annualized, for the prior tenant or the prior lease that was renewed. (3) Does not assume exercise of renewal options. For the Three Months Ended March 31, 2021 For the Three Months Ended M Same-Space Comparative Leasing Summary Supplemental Disclosure Quarter Ended March 31, 2021 - 17 -
(dollars in thousands) 03/31/21 12/31/20 09/30/20 06/30/20 % leased at beginning of quarter 96.8% 96.8% 97.0% 97.7% % billed at beginning of quarter 92.8% 93.4% 94.2% 93.9% ABR of new leases signed/not yet commenced - at beginning of quarter 8,590$ 6,855$ 5,890$ 7,041$ less: ABR of new leases commenced during quarter (1,044) (929) (1,196) (844) less: ABR of new leases dismissed during quarter - - - (865) plus: ABR of new leases signed during quarter 2,008 2,664 2,161 558 ABR of new leases signed/not yet commenced - at end of quarter 9,554$ 8,590$ 6,855$ 5,890$ % leased at end of quarter 96.9% 96.8% 96.8% 97.0% % billed at end of quarter 92.8% 92.8% 93.4% 94.2% ABR of new leases commenced during quarter - actual cash received 177$ 140$ 179$ 183$ Leased vs. Billed Summary Supplemental Disclosure Quarter Ended March 31, 2021 - 18 -
% Open % Open 4Q20 1Q21 by ABR 4Q20 1Q21 by ABR as of 2/18/21 as of 4/22/21 as of 4/22/21 as of 2/18/21 as of 4/22/21 as of 4/22/21 Tenant Type Anchor & Non-Anchor Grocery 99.2% 99.3% 100.0% Anchors 93.8% 92.7% 99.6% Drug Store 99.3% 99.4% 100.0% Non-Anchors 90.3% 91.2% 98.9% Automotive Supply 100.0% 99.9% 100.0% Total 91.6% 91.8% 99.2% Home Improvement 99.8% 99.8% 100.0% Electronics 99.5% 99.5% 100.0% Off-price 99.6% 99.1% 100.0% National, Regional & Local Pet Supply 90.7% 88.7% 100.0% National 94.7% 94.1% 99.7% Postal Services 95.4% 97.1% 100.0% Regional 96.6% 97.3% 100.0% Sporting Goods 81.2% 79.0% 100.0% Local 84.5% 86.0% 98.1% Financial Services 98.8% 99.1% 99.9% Total 91.6% 91.8% 99.2% Home Decor 99.0% 99.0% 100.0% Wireless 93.2% 98.5% 100.0% Local Services 92.6% 93.4% 100.0% Medical & Dental 96.8% 96.2% 98.9% Metro Market Fast Food Restaurants 94.6% 96.0% 99.7% Los Angeles 91.2% 91.9% 99.4% Limited Service Restaurants 85.5% 86.5% 97.8% Orange County 91.6% 93.2% 100.0% General Retail 95.8% 95.9% 98.2% San Diego 93.2% 92.1% 100.0% Non-retail 97.3% 98.7% 96.0% Southern California 91.6% 92.2% 99.6% Full Service Restaurants 78.5% 77.4% 100.0% San Francisco 91.3% 91.6% 99.1% Salons 81.3% 85.7% 100.0% Sacramento 93.5% 94.5% 100.0% Education 87.2% 90.7% 100.0% Northern California 91.6% 91.9% 99.2% Apparel 98.8% 98.4% 100.0% Seattle 92.4% 92.8% 98.5% Fitness 56.5% 51.4% 94.4% Portland 90.8% 88.9% 98.9% Entertainment 64.8% 46.0% 88.7% Pacific Northwest 91.7% 91.1% 98.6% Total 91.6% 91.8% 99.2% Total 91.6% 91.8% 99.2% Data is to the best of ROIC’s knowledge as of April 22, 2021. ROIC expects this data to change going forward. % of Billed Base Rent Paid % of Billed Base Rent Paid COVID-19 Update Supplemental Disclosure Quarter Ended March 31, 2021 - 19 -
Equity Research Coverage Bank of America Merrill Lynch Craig Schmidt 646.855.3640 Bank of Montreal John P. Kim 212.885.4115 Juan Sanabria 312.845.4074 Baird Wes Golladay 216.737.7510 BTIG Michael Gorman 212.738.6138 Capital One Securities, Inc. Chris Lucas 571.633.8151 Citi Michael Bilerman 212.816.1383 Katy McConnell 212.816.4471 D.A. Davidson & Co. Barry Oxford 212.240.9871 Green Street Vince Tibone 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 Tamara Fique 617.603.4262 Fixed Income Research Coverage J.P. Morgan Mark Streeter 212.834.5086 Ratings Agency Coverage Fitch Ratings, Inc. William Kuo 609.658.7945 Moody’s Investors Service Juan Acosta 212.553.4849 S&P Global Ratings Michael Souers 212.438.2508 Investor Information Retail Opportunity Investments Corp. www.roireit.net NASDAQ: ROIC 11250 El Camino Real, Suite 200 San Diego, CA 92130 Transfer Agent: Syed Hussaini Computershare syed.hussaini@computershare.com Investor Relations: Ashley Rubino arubino@roireit.net 858.255.4913 Supplemental Disclosure Quarter Ended March 31, 2021 - 20 -