(Retail Opportunity Investments Corp.) | (Retail Opportunity Investments Corp.) | |||||||||||||
(Retail Opportunity Investments Partnership, LP) | (Retail Opportunity Investments Partnership, LP) | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
Retail Opportunity Investments Corp. | ☒ | No | ☐ | |||||||||||
Retail Opportunity Investments Partnership, LP | ☒ | No | ☐ |
Retail Opportunity Investments Corp. | ☒ | No | ☐ | |||||||||||
Retail Opportunity Investments Partnership, LP | ☒ | No | ☐ |
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company | 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. | ☐ |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ☒ | Smaller reporting company | ||||||||||||||||||
Emerging growth company | 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. | ☐ |
Retail Opportunity Investments Corp. | Yes | No | ☒ | |||||||||||
Retail Opportunity Investments Partnership, LP | Yes | No | ☒ |
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 |
June 30, 2024 (unaudited) | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Real Estate Investments: | |||||||||||
Land | $ | $ | |||||||||
Building and improvements | |||||||||||
Less: accumulated depreciation | |||||||||||
Mortgage note receivable | |||||||||||
Real Estate Investments, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Tenant and other receivables, net | |||||||||||
Acquired lease intangible assets, net | |||||||||||
Prepaid expenses | |||||||||||
Deferred charges, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities: | |||||||||||
Term loan | $ | $ | |||||||||
Credit facility | |||||||||||
Senior Notes | |||||||||||
Mortgage notes payable | |||||||||||
Acquired lease intangible liabilities, net | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Tenants’ security deposits | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated dividends in excess of earnings | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Total Retail Opportunity Investments Corp. stockholders’ equity | |||||||||||
Non-controlling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental revenue | $ | $ | $ | $ | |||||||||||||||||||
Other income | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Property operating | |||||||||||||||||||||||
Property taxes | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Other expense | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Non-operating expenses | |||||||||||||||||||||||
Interest expense and other finance expenses | ( | ( | ( | ( | |||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income attributable to non-controlling interests | ( | ( | ( | ( | |||||||||||||||||||
Net Income Attributable to Retail Opportunity Investments Corp. | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share – basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
Dividends per common share | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Unrealized swap derivative gain arising during the period | |||||||||||||||||||||||
Reclassification adjustment for amortization to interest expense included in net income | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive (loss) income: | ( | ( | |||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive income attributable to non-controlling interests | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income attributable to Retail Opportunity Investments Corp. | $ | $ | $ | $ |
Common Stock | Additional paid-in capital | Accumulated dividends in excess of earnings | Accumulated other comprehensive income (loss) | Non- controlling interests | Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Shares issued under the Equity Incentive Plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Cancellation of restricted stock | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Adjustment to non-controlling interests ownership in Operating Partnership | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Registration expenditures | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends ($ | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends payable to officers | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Corp. | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Cancellation of restricted stock | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Adjustment to non-controlling interests ownership in Operating Partnership | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Registration expenditures | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends ($ | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends payable to officers | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Corp. | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Common Stock | Additional paid-in capital | Accumulated dividends in excess of earnings | Accumulated other comprehensive income (loss) | Non- controlling interests | Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Shares issued under the Equity Incentive Plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Adjustment to non-controlling interests ownership in Operating Partnership | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Registration expenditures | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends ($ | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends payable to officers | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Corp. | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Shares issued under the Equity Incentive Plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Shares withheld for employee taxes | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Cancellation of restricted stock | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Redemption of OP Units | — | — | ( | — | |||||||||||||||||||||||||||||||||||||
Adjustment to non-controlling interests ownership in Operating Partnership | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||
Registration expenditures | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends ($ | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends payable to officers | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Corp. | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of deferred financing costs and mortgage discounts and premiums, net | |||||||||||
Straight-line rent adjustment | ( | ( | |||||||||
Amortization of above-market and below-market rent, net | ( | ( | |||||||||
Amortization relating to stock based compensation | |||||||||||
Provisions for tenant credit losses | |||||||||||
Other noncash interest income | ( | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Tenant and other receivables | ( | ||||||||||
Prepaid expenses | |||||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Other assets and liabilities, net | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Investments in real estate | ( | ||||||||||
Improvements to properties | ( | ( | |||||||||
Deposit on real estate acquisition | |||||||||||
Proceeds on repayment of mortgage note receivable | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Principal repayments on mortgages | ( | ( | |||||||||
Proceeds from draws on credit facility | |||||||||||
Payments on credit facility | ( | ( | |||||||||
Distributions to OP Unitholders | ( | ( | |||||||||
Deferred financing and other costs | ( | ||||||||||
Registration expenditures | ( | ( | |||||||||
Dividends paid to common stockholders | ( | ( | |||||||||
Common shares issued under the Equity Incentive Plan | |||||||||||
Shares withheld for employee taxes | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Other non-cash investing and financing activities: | |||||||||||
Increase in intangible lease liabilities | $ | $ | |||||||||
(Decrease) increase in interest rate swap asset | $ | ( | $ | ||||||||
Accrued real estate improvement costs | $ | $ | |||||||||
Equity redemption of OP Units | $ | — | $ | ||||||||
Dividends and distributions payable | $ | $ |
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash shown in Statements of Cash Flows | $ | $ |
June 30, 2024 (unaudited) | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Real Estate Investments: | |||||||||||
Land | $ | $ | |||||||||
Building and improvements | |||||||||||
Less: accumulated depreciation | |||||||||||
Mortgage note receivable | |||||||||||
Real Estate Investments, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Tenant and other receivables, net | |||||||||||
Acquired lease intangible assets, net | |||||||||||
Prepaid expenses | |||||||||||
Deferred charges, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND CAPITAL | |||||||||||
Liabilities: | |||||||||||
Term loan | $ | $ | |||||||||
Credit facility | |||||||||||
Senior Notes | |||||||||||
Mortgage notes payable | |||||||||||
Acquired lease intangible liabilities, net | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Tenants’ security deposits | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Capital: | |||||||||||
Partners’ capital, unlimited partnership units authorized: | |||||||||||
ROIC capital | |||||||||||
Limited partners’ capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Total capital | |||||||||||
Total liabilities and capital | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental revenue | $ | $ | $ | $ | |||||||||||||||||||
Other income | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Property operating | |||||||||||||||||||||||
Property taxes | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Other expense | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Non-operating expenses | |||||||||||||||||||||||
Interest expense and other finance expenses | ( | ( | ( | ( | |||||||||||||||||||
Net Income Attributable to Retail Opportunity Investments Partnership, LP | $ | $ | $ | $ | |||||||||||||||||||
Earnings per unit - basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
Distributions per unit | $ | $ | $ | $ | |||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Partnership, LP | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Unrealized swap derivative gain arising during the period | |||||||||||||||||||||||
Reclassification adjustment for amortization to interest expense included in net income | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive (loss) income: | ( | ( | |||||||||||||||||||||
Comprehensive income attributable to Retail Opportunity Investments Partnership, LP | $ | $ | $ | $ |
Limited Partner’s Capital (1) | ROIC Capital (2) | Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Capital | |||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
OP Units issued under the Equity Incentive Plan | — | — | — | — | — | ||||||||||||||||||||||||||||||
OP Units withheld for employee taxes | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||
Cancellation of OP Units | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||
Adjustment to non-controlling interests ownership in Operating Partnership | — | ( | — | — | |||||||||||||||||||||||||||||||
Registration expenditures | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Cash distributions ($ | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Distributions payable to officers | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Partnership, LP | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Cancellation of OP Units | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||
Adjustment to non-controlling interests ownership in Operating Partnership | — | ( | — | — | |||||||||||||||||||||||||||||||
Registration expenditures | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Cash distributions ($ | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Distributions payable to officers | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Partnership, LP | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Limited Partner’s Capital (1) | ROIC Capital (2) | Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Capital | |||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
OP Units issued under the Equity Incentive Plan | — | — | — | ||||||||||||||||||||||||||||||||
OP Units withheld for employee taxes | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||
Adjustment to non-controlling interests ownership in Operating Partnership | — | ( | — | — | |||||||||||||||||||||||||||||||
Registration expenditures | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Cash distributions ($ | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Distributions payable to officers | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Partnership, LP | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
OP Units issued under the Equity Incentive Plan | — | — | — | ||||||||||||||||||||||||||||||||
OP Units withheld for employee taxes | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||
Cancellation of OP Units | — | — | ( | — | — | — | |||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | ||||||||||||||||||||||||||||||||
Equity redemption of OP Units | ( | ( | — | ||||||||||||||||||||||||||||||||
Adjustment to non-controlling interests ownership in Operating Partnership | — | — | ( | — | |||||||||||||||||||||||||||||||
Registration expenditures | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Cash distributions ($ | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Distributions payable to officers | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income attributable to Retail Opportunity Investments Partnership, LP | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of deferred financing costs and mortgage discounts and premiums, net | |||||||||||
Straight-line rent adjustment | ( | ( | |||||||||
Amortization of above-market and below-market rent, net | ( | ( | |||||||||
Amortization relating to stock based compensation | |||||||||||
Provisions for tenant credit losses | |||||||||||
Other noncash interest income | ( | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Tenant and other receivables | ( | ||||||||||
Prepaid expenses | |||||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Other assets and liabilities, net | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Investments in real estate | ( | ||||||||||
Improvements to properties | ( | ( | |||||||||
Deposit on real estate acquisition | |||||||||||
Proceeds on repayment of mortgage note receivable | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Principal repayments on mortgages | ( | ( | |||||||||
Proceeds from draws on credit facility | |||||||||||
Payments on credit facility | ( | ( | |||||||||
Deferred financing and other costs | ( | ||||||||||
Registration expenditures | ( | ( | |||||||||
Distributions to OP Unitholders | ( | ( | |||||||||
Issuance of OP Units under the Equity Incentive Plan | |||||||||||
OP Units withheld for employee taxes | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Other non-cash investing and financing activities: | |||||||||||
Increase in intangible lease liabilities | $ | $ | |||||||||
(Decrease) increase in interest rate swap asset | $ | ( | $ | ||||||||
Accrued real estate improvement costs | $ | $ | |||||||||
Equity redemption of OP Units | $ | — | $ | ||||||||
Distributions payable | $ | $ |
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash shown in Statements of Cash Flows | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Less income attributable to non-controlling interests | ( | ( | ( | ( | |||||||||||||||||||
Less earnings allocated to participating securities | ( | ( | ( | ( | |||||||||||||||||||
Net income available for common stockholders, basic | $ | $ | $ | $ | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Less earnings allocated to participating securities | ( | ( | ( | ( | |||||||||||||||||||
Net income available for common stockholders, diluted | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic EPS – weighted average common equivalent shares | |||||||||||||||||||||||
OP Units | |||||||||||||||||||||||
Performance-based restricted stock awards and LTIP Units | |||||||||||||||||||||||
Denominator for diluted EPS – weighted average common equivalent shares |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Less earnings allocated to participating securities | ( | ( | ( | ( | |||||||||||||||||||
Net income available to unitholders, basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic earnings per unit – weighted average common equivalent units | |||||||||||||||||||||||
Performance-based restricted stock awards and LTIP Units | |||||||||||||||||||||||
Denominator for diluted earnings per unit – weighted average common equivalent units |
June 30, 2024 | |||||
Assets | |||||
Land | $ | ||||
Building and improvements | |||||
Acquired lease intangible asset | |||||
Deferred charges | |||||
Assets acquired | $ | ||||
Liabilities | |||||
Acquired lease intangible liability | |||||
Liabilities assumed | $ |
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2024 | June 30, 2024 | ||||||||||
Statement of operations: | |||||||||||
Revenues | $ | $ | |||||||||
Net income attributable to Retail Opportunity Investments Corp. | $ | $ |
Minimum Rents | |||||
Remaining 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total minimum lease payments | $ |
Property | Maturity Date | Interest Rate | June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
Fullerton Crossroads | April 2024 | % | $ | $ | ||||||||||||||||||||||
Diamond Hills Plaza | October 2025 | % | ||||||||||||||||||||||||
$ | $ | |||||||||||||||||||||||||
Unamortized mortgage premiums | ||||||||||||||||||||||||||
Net unamortized deferred financing costs | ( | ( | ||||||||||||||||||||||||
Total mortgage notes payable | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
Term loan | $ | $ | |||||||||
Net unamortized deferred financing costs | ( | ( | |||||||||
Term loan | $ | $ |
Senior Notes | Aggregate Principal Amount (in thousands) | Issue Date and Interest Accrual Date | Maturity Date | Contractual Interest Rate | First Interest Payment | Interest Payments Due | ||||||||||||||||||||||||||||||||
Senior Notes Due 2028 | $ | September 21, 2023 | October 15, 2028 | % | April 15, 2024 | April 15 and October 15 | ||||||||||||||||||||||||||||||||
Senior Notes Due 2027 | $ | December 15, 2017 | December 15, 2027 | % | June 15, 2018 | June 15 and December 15 | ||||||||||||||||||||||||||||||||
Senior Notes Due 2026 | $ | September 22, 2016 | September 22, 2026 | % | March 22, 2017 | March 22 and September 22 | ||||||||||||||||||||||||||||||||
Senior Notes Due 2024 | $ | December 3, 2014 | December 15, 2024 | % | June 15, 2015 | June 15 and December 15 |
June 30, 2024 | December 31, 2023 | ||||||||||
Principal amount | $ | $ | |||||||||
Unamortized debt discount | ( | ( | |||||||||
Net unamortized deferred financing costs | ( | ( | |||||||||
Senior Notes | $ | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested as of December 31, 2023 | $ | ||||||||||
Vested | ( | $ | |||||||||
Granted | $ | ||||||||||
Forfeited | ( | $ | |||||||||
Non-vested as of June 30, 2024 | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested as of December 31, 2023 | $ | ||||||||||
Granted | $ | ||||||||||
Non-vested as of June 30, 2024 | $ |
Swap Counterparty | Notional Amount | Effective Date | Maturity Date | |||||||||||||||||
Wells Fargo | $ | 3/31/2023 | 8/31/2024 | |||||||||||||||||
U.S. Bank | $ | 3/31/2023 | 8/31/2024 | |||||||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
June 30, 2024: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Derivative financial instruments | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Derivative financial instruments | $ | $ | $ | $ | |||||||||||||||||||
Derivatives designed as hedging instruments | Balance sheet location | June 30, 2024 Fair Value | December 31, 2023 Fair Value | |||||||||||||||||
Interest rate products | Other assets | $ | $ | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Amount of gain recognized in OCI on derivatives | $ | $ | $ | $ | |||||||||||||||||||
Amount of gain reclassified from AOCI into interest | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Operating Leases | |||||
Remaining 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total undiscounted future minimum lease payments | |||||
Future minimum lease payments, discount | ( | ||||
Lease liability | $ |
Three Months Ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Operating income per GAAP | $ | 27,842 | $ | 28,151 | ||||||||||
Plus: | Depreciation and amortization | 26,331 | 25,126 | |||||||||||
General and administrative expenses | 5,682 | 5,776 | ||||||||||||
Other expense | 505 | 482 | ||||||||||||
Property operating income | $ | 60,360 | $ | 59,535 |
Three Months Ended June 30, 2024 | ||||||||||||||||||||
Same-Center | Non Same-Center | Total | ||||||||||||||||||
Operating income (loss) per GAAP | $ | 33,554 | $ | (5,712) | $ | 27,842 | ||||||||||||||
Plus: | Depreciation and amortization | 24,758 | 1,573 | 26,331 | ||||||||||||||||
General and administrative expenses (1) | — | 5,682 | 5,682 | |||||||||||||||||
Other expense (1) | — | 505 | 505 | |||||||||||||||||
Property operating income | $ | 58,312 | $ | 2,048 | $ | 60,360 |
Three Months Ended June 30, 2023 | ||||||||||||||||||||
Same-Center | Non Same-Center | Total | ||||||||||||||||||
Operating income (loss) per GAAP | $ | 34,107 | $ | (5,956) | $ | 28,151 | ||||||||||||||
Plus: | Depreciation and amortization | 24,742 | 384 | 25,126 | ||||||||||||||||
General and administrative expenses (1) | — | 5,776 | 5,776 | |||||||||||||||||
Other expense (1) | — | 482 | 482 | |||||||||||||||||
Property operating income | $ | 58,849 | $ | 686 | $ | 59,535 |
Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Operating income per GAAP | $ | 58,426 | $ | 53,805 | ||||||||||
Plus: | Depreciation and amortization | 52,600 | 50,230 | |||||||||||
General and administrative expenses | 11,364 | 11,096 | ||||||||||||
Other expense | 657 | 654 | ||||||||||||
Property operating income | $ | 123,047 | $ | 115,785 |
Six Months Ended June 30, 2024 | ||||||||||||||||||||
Same-Center | Non Same-Center | Total | ||||||||||||||||||
Operating income (loss) per GAAP | $ | 70,060 | $ | (11,634) | $ | 58,426 | ||||||||||||||
Plus: | Depreciation and amortization | 50,493 | 2,107 | 52,600 | ||||||||||||||||
General and administrative expenses (1) | — | 11,364 | 11,364 | |||||||||||||||||
Other expense (1) | — | 657 | 657 | |||||||||||||||||
Property operating income | $ | 120,553 | $ | 2,494 | $ | 123,047 |
Six Months Ended June 30, 2023 | ||||||||||||||||||||
Same-Center | Non Same-Center | Total | ||||||||||||||||||
Operating income (loss) per GAAP | $ | 65,168 | $ | (11,363) | $ | 53,805 | ||||||||||||||
Plus: | Depreciation and amortization | 49,454 | 776 | 50,230 | ||||||||||||||||
General and administrative expenses (1) | — | 11,096 | 11,096 | |||||||||||||||||
Other expense (1) | — | 654 | 654 | |||||||||||||||||
Property operating income | $ | 114,622 | $ | 1,163 | $ | 115,785 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income attributable to ROIC | $ | 7,366 | $ | 9,929 | $ | 18,384 | $ | 18,071 | |||||||||||||||
Plus: Depreciation and amortization | 26,331 | 25,126 | 52,600 | 50,230 | |||||||||||||||||||
Funds from operations – basic | 33,697 | 35,055 | 70,984 | 68,301 | |||||||||||||||||||
Net income attributable to non-controlling interests | 433 | 589 | 1,080 | 1,143 | |||||||||||||||||||
Funds from operations – diluted | $ | 34,130 | $ | 35,644 | $ | 72,064 | $ | 69,444 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
GAAP operating income | $ | 27,842 | $ | 28,151 | $ | 58,426 | $ | 53,805 | |||||||||||||||
Depreciation and amortization | 26,331 | 25,126 | 52,600 | 50,230 | |||||||||||||||||||
General and administrative expenses | 5,682 | 5,776 | 11,364 | 11,096 | |||||||||||||||||||
Other expense | 505 | 482 | 657 | 654 | |||||||||||||||||||
Straight-line rent | (231) | (979) | (423) | (1,326) | |||||||||||||||||||
Amortization of above-market and below-market rent, net | (2,664) | (2,609) | (9,321) | (5,473) | |||||||||||||||||||
Property revenues and other expenses (1) | 68 | (564) | 129 | (566) | |||||||||||||||||||
Total Company cash NOI | 57,533 | 55,383 | 113,432 | 108,420 | |||||||||||||||||||
Non same-center cash NOI | (1,908) | (702) | (2,259) | (1,197) | |||||||||||||||||||
Same-center cash NOI | $ | 55,625 | $ | 54,681 | $ | 111,173 | $ | 107,223 |
Buildings (years) | 39 | — | 40 | ||||||||||||||||||||||||||
Property Improvements (years) | 10 | — | 20 | ||||||||||||||||||||||||||
Furniture/Fixtures (years) | 3 | — | 10 | ||||||||||||||||||||||||||
Tenant Improvements | Shorter of lease term or its useful life |
Senior Notes | Aggregate Principal Amount (in thousands) | Issue Date and Interest Accrual Date | Maturity Date | Contractual Interest Rate | First Interest Payment | Interest Payments Due | ||||||||||||||||||||||||||||||||
Senior Notes Due 2028 | $ | 350,000 | September 21, 2023 | October 15, 2028 | 6.75 | % | April 15, 2024 | April 15 and October 15 | ||||||||||||||||||||||||||||||
Senior Notes Due 2027 | $ | 250,000 | December 15, 2017 | December 15, 2027 | 4.19 | % | June 15, 2018 | June 15 and December 15 | ||||||||||||||||||||||||||||||
Senior Notes Due 2026 | $ | 200,000 | September 22, 2016 | September 22, 2026 | 3.95 | % | March 22, 2017 | March 22 and September 22 | ||||||||||||||||||||||||||||||
Senior Notes Due 2024 | $ | 250,000 | December 3, 2014 | December 15, 2024 | 4.00 | % | June 15, 2015 | June 15 and December 15 | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Net Cash Provided by (Used in): | |||||||||||
Operating Activities | $ | 65,083 | $ | 73,172 | |||||||
Investing Activities | $ | (89,682) | $ | (18,587) | |||||||
Financing Activities | $ | 18,295 | $ | (54,679) |
Short-Term | Long-Term | Total | |||||||||||||||
Material cash requirements: | |||||||||||||||||
Mortgage Note Payable Principal | $ | 724 | $ | 32,970 | $ | 33,694 | |||||||||||
Mortgage Note Payable Interest | 1,201 | 395 | 1,596 | ||||||||||||||
Term loan (1) | — | 200,000 | 200,000 | ||||||||||||||
Credit facility (2) | — | 164,000 | 164,000 | ||||||||||||||
Senior Notes Due 2028 (3) | 23,625 | 432,688 | 456,313 | ||||||||||||||
Senior Notes Due 2027 (3) | 10,475 | 276,188 | 286,663 | ||||||||||||||
Senior Notes Due 2026 (3) | 7,900 | 211,850 | 219,750 | ||||||||||||||
Senior Notes Due 2024 (4) | 255,000 | — | 255,000 | ||||||||||||||
Operating lease obligations | 1,366 | 32,533 | 33,899 | ||||||||||||||
Total | $ | 300,291 | $ | 1,350,624 | $ | 1,650,915 |
Swap Notional | Less 100 basis points | Less 50 basis points | June 30, 2024 Value | Increase 50 basis points | Increase 100 basis points | |||||||||||||||||||||||||||
$100,000 | $ | 58 | $ | 99 | $ | 141 | $ | 182 | $ | 223 | ||||||||||||||||||||||
$50,000 | $ | 66 | $ | 87 | $ | 108 | $ | 128 | $ | 149 | ||||||||||||||||||||||
2.1 | |||||
3.2 | |||||
3.3 | |||||
3.4 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | The cover page from this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL (and contained in Exhibit 101). |
RETAIL OPPORTUNITY INVESTMENTS CORP. | RETAIL OPPORTUNITY INVESTMENTS PARTNERSHIP, LP, by Retail Opportunity Investments GP, LLC, its sole general partner | |||||||
Registrant | Registrant | |||||||
/s/ Stuart A. Tanz | /s/ Stuart A. Tanz | |||||||
Name: Stuart A. Tanz | Name: Stuart A. Tanz | |||||||
Title: Chief Executive Officer | Title: Chief Executive Officer | |||||||
Date: July 24, 2024 | Date: July 24, 2024 | |||||||
/s/ Michael B. Haines | /s/ Michael B. Haines | |||||||
Name: Michael B. Haines | Name: Michael B. Haines | |||||||
Title: Chief Financial Officer | Title: Chief Financial Officer | |||||||
Date: July 24, 2024 | Date: July 24, 2024 | |||||||
Date: July 24, 2024 | By: | /s/ Stuart A. Tanz | |||||||||
Name: Stuart A. Tanz | |||||||||||
Title: Chief Executive Officer |
Date: July 24, 2024 | By: | /s/ Stuart A. Tanz | |||||||||
Name: Stuart A. Tanz | |||||||||||
Title: Chief Executive Officer |
Date: July 24, 2024 | By: | /s/ Michael B. Haines | |||||||||
Name: Michael B. Haines | |||||||||||
Title: Chief Financial Officer |
Date: July 24, 2024 | By: | /s/ Michael B. Haines | |||||||||
Name: Michael B. Haines | |||||||||||
Title: Chief Financial Officer |
Date: July 24, 2024 | By: | /s/ Stuart A. Tanz | |||||||||
Name: Stuart A. Tanz | |||||||||||
Title: Chief Executive Officer | |||||||||||
Date: July 24, 2024 | By: | /s/ Michael B. Haines | |||||||||
Name: Michael B. Haines | |||||||||||
Title: Chief Financial Officer | |||||||||||
Date: July 24, 2024 | By: | /s/ Stuart A. Tanz | |||||||||
Name: Stuart A. Tanz | |||||||||||
Title: Chief Executive Officer | |||||||||||
Date: July 24, 2024 | By: | /s/ Michael B. Haines | |||||||||
Name: Michael B. Haines | |||||||||||
Title: Chief Financial Officer | |||||||||||
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 127,454,354 | 126,904,085 |
Common stock, shares outstanding (in shares) | 127,454,354 | 126,904,085 |
Consolidated Statements of Equity (Parentheticals) - $ / shares |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends per share/unit (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.30 |
Consolidated Statements of Partners' Capital (Parentheticals) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
|
Retail Opportunity Investments Partnership L.P. | ||||
Cash distributions per unit (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 |
Consolidated Statements of Cash Flow - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 19,464 | $ 19,214 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 52,600 | 50,230 |
Amortization of deferred financing costs and mortgage discounts and premiums, net | 1,789 | 1,836 |
Straight-line rent adjustment | (423) | (1,326) |
Amortization of above-market and below-market rent, net | (9,321) | (5,473) |
Amortization relating to stock based compensation | 6,070 | 6,357 |
Provisions for tenant credit losses | 1,476 | 2,009 |
Other noncash interest income | 0 | (15) |
Change in operating assets and liabilities: | ||
Tenant and other receivables | 568 | (618) |
Prepaid expenses | 594 | 3,707 |
Accounts payable and accrued expenses | (5,467) | (3,124) |
Other assets and liabilities, net | (2,267) | 375 |
Net cash provided by operating activities | 65,083 | 73,172 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investments in real estate | (71,063) | 0 |
Improvements to properties | (18,666) | (19,132) |
Deposit on real estate acquisition | 0 | 500 |
Proceeds on repayment of mortgage note receivable | 47 | 45 |
Net cash used in investing activities | (89,682) | (18,587) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal repayments on mortgages | (26,351) | (342) |
Proceeds from draws on credit facility | 160,000 | 48,000 |
Payments on credit facility | (71,000) | (73,000) |
Distributions to OP Unitholders | (2,231) | (1,267) |
Deferred financing and other costs | 0 | (5,716) |
Registration expenditures | (69) | (46) |
Dividends paid to common stockholders | (38,522) | (19,049) |
Common shares issued under the Equity Incentive Plan | 0 | 32 |
Shares withheld for employee taxes | (3,532) | (3,291) |
Net cash provided by (used in) financing activities | 18,295 | (54,679) |
Net decrease in cash, cash equivalents and restricted cash | (6,304) | (94) |
Cash, cash equivalents and restricted cash at beginning of period | 8,418 | 7,459 |
Cash, cash equivalents and restricted cash at end of period | 2,114 | 7,365 |
Other non-cash investing and financing activities: | ||
Increase in intangible lease liabilities | 5,884 | 0 |
(Decrease) increase in interest rate swap asset | (344) | 1,417 |
Accrued real estate improvement costs | 4,906 | 7,426 |
Equity redemption of OP Units | 13,389 | |
Dividends and distributions payable | 21,054 | 20,868 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 2,114 | 5,296 |
Restricted cash | 0 | 2,069 |
Total cash, cash equivalents and restricted cash shown in Statements of Cash Flows | 2,114 | 7,365 |
Retail Opportunity Investments Partnership L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 19,464 | 19,214 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 52,600 | 50,230 |
Amortization of deferred financing costs and mortgage discounts and premiums, net | 1,789 | 1,836 |
Straight-line rent adjustment | (423) | (1,326) |
Amortization of above-market and below-market rent, net | (9,321) | (5,473) |
Amortization relating to stock based compensation | 6,070 | 6,357 |
Provisions for tenant credit losses | 1,476 | 2,009 |
Other noncash interest income | 0 | (15) |
Change in operating assets and liabilities: | ||
Tenant and other receivables | 568 | (618) |
Prepaid expenses | 594 | 3,707 |
Accounts payable and accrued expenses | (5,467) | (3,124) |
Other assets and liabilities, net | (2,267) | 375 |
Net cash provided by operating activities | 65,083 | 73,172 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investments in real estate | (71,063) | 0 |
Improvements to properties | (18,666) | (19,132) |
Deposit on real estate acquisition | 0 | 500 |
Proceeds on repayment of mortgage note receivable | 47 | 45 |
Net cash used in investing activities | (89,682) | (18,587) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal repayments on mortgages | (26,351) | (342) |
Proceeds from draws on credit facility | 160,000 | 48,000 |
Payments on credit facility | (71,000) | (73,000) |
Distributions to OP Unitholders | (40,753) | (20,316) |
Deferred financing and other costs | 0 | (5,716) |
Registration expenditures | (69) | (46) |
Common shares issued under the Equity Incentive Plan | 0 | 32 |
Shares withheld for employee taxes | (3,532) | (3,291) |
Net cash provided by (used in) financing activities | 18,295 | (54,679) |
Net decrease in cash, cash equivalents and restricted cash | (6,304) | (94) |
Cash, cash equivalents and restricted cash at beginning of period | 8,418 | 7,459 |
Cash, cash equivalents and restricted cash at end of period | 2,114 | 7,365 |
Other non-cash investing and financing activities: | ||
Increase in intangible lease liabilities | 5,884 | 0 |
(Decrease) increase in interest rate swap asset | (344) | 1,417 |
Accrued real estate improvement costs | 4,906 | 7,426 |
Equity redemption of OP Units | 13,389 | |
Dividends and distributions payable | 21,054 | 20,868 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 2,114 | 5,296 |
Restricted cash | 0 | 2,069 |
Total cash, cash equivalents and restricted cash shown in Statements of Cash Flows | $ 2,114 | $ 7,365 |
Organization, Basis of Presentation and Summary of Significant Accounting Policies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Basis of Presentation and Summary of Significant Accounting Policies | Organization, Basis of Presentation and Summary of Significant Accounting Policies Business Retail Opportunity Investments Corp., a Maryland corporation (“ROIC”), is a fully integrated and self-managed real estate investment trust (“REIT”). ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers on the west coast of the United States anchored by supermarkets and drugstores. ROIC is organized in a traditional umbrella partnership real estate investment trust (“UpREIT”) format pursuant to which Retail Opportunity Investments GP, LLC, its wholly-owned subsidiary, serves as the general partner of, and ROIC conducts substantially all of its business through, its operating partnership subsidiary, Retail Opportunity Investments Partnership, LP, a Delaware limited partnership (the “Operating Partnership”), together with its subsidiaries. Unless otherwise indicated or unless the context requires otherwise, all references to the “Company”, “we,” “us,” “our,” or “our company” refer to ROIC together with its consolidated subsidiaries, including the Operating Partnership. ROIC’s only material asset is its ownership of direct or indirect partnership interests in the Operating Partnership and membership interest in Retail Opportunity Investments GP, LLC, which is the sole general partner of the Operating Partnership. As a result, ROIC does not conduct business itself, other than acting as the parent company and issuing equity from time to time. The Operating Partnership holds substantially all the assets of the Company and directly or indirectly holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by ROIC, which are contributed to the Operating Partnership, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s incurrence of indebtedness (directly and through subsidiaries) or through the issuance of operating partnership units (“OP Units”) of the Operating Partnership. Principles of Consolidation The accompanying consolidated financial statements are prepared on the accrual basis in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, the consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and the results of operations and cash flows for the periods presented. Results of operations for the three and six month periods ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2023. The consolidated financial statements include the accounts of the Company and those of its subsidiaries, which are wholly-owned or controlled by the Company. Entities which the Company does not control through its voting interest and entities which are variable interest entities (“VIEs”), but where it is not the primary beneficiary, are accounted for under the equity method. All significant intercompany balances and transactions have been eliminated. The Company follows the Financial Accounting Standards Board (“FASB”) guidance for determining whether an entity is a VIE and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The Company has concluded that the Operating Partnership is a VIE, and because they have both the power and the rights to control the Operating Partnership, they are the primary beneficiary and are required to continue to consolidate the Operating Partnership. A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the consolidated balance sheets and modify the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the disclosure of contingent assets and liabilities, the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the periods covered by the financial statements. The most significant assumptions and estimates relate to the recoverability of assets to be held and used, purchase price allocations, depreciable lives, revenue recognition and the collectability of tenant receivables, other receivables, notes receivables, and the valuation of performance-based restricted stock, LTIP Units (as defined below), and derivatives. Actual results could differ from these estimates. Federal Income Taxes The Company has elected to qualify as a REIT under Sections 856-860 of the Internal Revenue Code (the “Code”). Under those sections, a REIT that, among other things, distributes at least 90% of its REIT taxable income (determined without regard to the dividends paid deduction and excluding net capital gains) and meets certain other qualifications prescribed by the Code, will not be taxed on that portion of its taxable income that is distributed. Although it may qualify as a REIT for U.S. federal income tax purposes, the Company is subject to state income or franchise taxes in certain states in which some of its properties are located. For all periods from inception through September 26, 2013, the Operating Partnership had been an entity disregarded from its sole owner, ROIC, for U.S. federal income tax purposes and as such had not been subject to U.S. federal income taxes. Effective September 27, 2013, the Operating Partnership issued OP Units in connection with the acquisitions of two shopping centers. Accordingly, the Operating Partnership ceased being a disregarded entity and instead is being treated as a partnership for U.S. federal income tax purposes. The Company follows the FASB guidance that defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The FASB also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company records interest and penalties relating to unrecognized tax benefits, if any, as interest expense. As of June 30, 2024, the statute of limitations for the tax years 2019 through and including 2022 remain open for examination by the Internal Revenue Service (“IRS”) and state taxing authorities. ROIC intends to make regular quarterly distributions to holders of its common stock. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that it pay U.S. federal income tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income. ROIC intends to pay regular quarterly dividends to stockholders in an amount not less than its net taxable income, if and to the extent authorized by its board of directors. Before ROIC pays any dividend, whether for U.S. federal income tax purposes or otherwise, it must first meet both its operating requirements and its debt service on debt. If ROIC’s cash available for distribution is less than its net taxable income, it could be required to sell assets or borrow funds to make cash distributions or it may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities. The Company intends to continue to operate its business in a manner that will allow it to qualify as a REIT, including maintaining compliance with taxable income distribution requirements. Real Estate Investments All costs related to the improvement or replacement of real estate properties are capitalized. Additions, renovations and improvements that enhance and/or extend the useful life of a property are also capitalized. Expenditures for ordinary maintenance, repairs and improvements that do not materially prolong the normal useful life of an asset are charged to operations as incurred. During the six months ended June 30, 2024 and 2023, capitalized costs related to the improvement or replacement of real estate properties were approximately $18.5 million and $23.0 million, respectively. The Company evaluates each acquisition of real estate to determine if the acquired property meets the definition of a business and needs to be accounted for as a business combination. The Company first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If this threshold is met, the acquired property does not meet the definition of a business and is accounted for as an asset acquisition. The Company expects that acquisitions of real estate properties will not meet the revised definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets). The Company recognizes the acquisition of real estate properties, including acquired tangible assets (consisting of land, buildings and improvements) and acquired intangible assets and liabilities (consisting of above-market and below-market leases and acquired in-place leases) at their relative fair value (for acquisitions not meeting the definition of a business) and fair value (for acquisitions meeting the definition of a business). The relative fair values used to allocate the cost of an asset acquisition are determined using the same methodologies and assumptions the Company utilizes to determine fair value in a business combination. Substantially all of the Company’s acquisitions are accounted for as asset acquisitions. Acquired lease intangible assets include above-market leases and acquired in-place leases, and Acquired lease intangible liabilities represent below-market leases, in the accompanying consolidated balance sheets. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, which value is then allocated to land, buildings and improvements based on management’s determination of the relative fair values of these assets. In valuing an acquired property’s intangibles, factors considered by management include an estimate of carrying costs during the expected lease-up periods and estimates of lost rental revenue during the expected lease-up periods based on management’s evaluation of current market demand. Management also estimates costs to execute similar leases, including leasing commissions, tenant improvements, legal and other related costs. Leasing commissions, legal and other related costs (“lease origination costs”) are classified as Deferred charges in the accompanying consolidated balance sheets. The value of in-place leases is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates, over (ii) the estimated fair value of the property as if it were vacant. Above-market and below-market lease values are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be received and management’s estimate of market lease rates, measured over the terms of the respective leases that management deemed appropriate at the time of acquisition. Such valuations include a consideration of the non-cancellable terms of the respective leases as well as any applicable renewal periods. The fair values associated with below-market rental renewal options are determined based on the Company’s experience and the relevant facts and circumstances that existed at the time of the acquisitions. The value of the above-market and below-market leases associated with the original lease term and option periods, if applicable, is amortized to Rental revenue over the terms of the respective leases including option periods. The value of in-place leases is amortized to Depreciation expense over the remaining non-cancellable terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recognized in operations at that time. The Company expenses transaction costs associated with business combinations and unsuccessful property asset acquisitions in the period incurred and capitalizes transaction costs associated with successful property asset acquisitions. In conjunction with the Company’s pursuit and acquisition of real estate investments, the Company did not expense any acquisition transaction costs during the three and six months ended June 30, 2024 or 2023. Sales of real estate are recognized only when it is determined that the Company will collect substantially all of the consideration to which it is entitled, possession and other attributes of ownership have been transferred to the buyer and the Company has no controlling financial interest. The application of these criteria can be complex and requires the Company to make assumptions. Asset Impairment The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to aggregate future net cash flows (undiscounted and without interest) expected to be generated by the asset. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value. Management does not believe that the value of any of the Company’s real estate investments was impaired at June 30, 2024 or December 31, 2023. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed the federally insured limit by the Federal Deposit Insurance Corporation. The Company has not experienced any losses related to these balances. Restricted Cash The terms of the Company’s mortgage loans payable may require the Company to deposit certain replacement and other reserves with its lenders. Such “restricted cash” is generally available only for property-level requirements for which the reserves have been established and is not available to fund other property-level or Company-level obligations. Revenue Recognition and Collectability Management has determined that all of the Company’s leases with its various tenants are operating leases. Rental income is generally recognized based on the terms of leases entered into with tenants. In those instances in which the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. When the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition and lease incentive amortization when possession or control of the space is turned over to the tenant for tenant work to begin. Minimum rental income from leases with scheduled rent increases is recognized on a straight-line basis over the lease term. Percentage rent is recognized when a specific tenant’s sales breakpoint is achieved. Each lease agreement is evaluated to identify the lease and nonlease components at lease inception. The Company combines lease and non-lease components into a single lease component presentation if (i) the timing and pattern of the revenue recognition of the combined single lease component is the same, and (ii) the related lease component and the combined single lease component would be classified as an operating lease. As a result of this assessment, rental revenues and tenant recoveries from the lease of real estate assets are accounted for as a single component. Lease incentives are amortized as a reduction of rental revenue over the respective tenant lease terms. Termination fees (included in Other income in the consolidated statements of operations and comprehensive income) are fees that the Company has agreed to accept in consideration for permitting certain tenants to terminate their lease prior to the contractual expiration date. The Company recognizes termination fees when the following conditions are met: (a) the termination agreement is executed; (b) the termination fee is determinable; (c) all landlord services pursuant to the terminated lease have been rendered; and (d) collectability of substantially all of the termination fee is probable. The Company also enters into lease settlement agreements to resolve disputes with tenants who have defaulted. Lease settlement fee income is recognized in Other income during the period in which the settlement occurs. Interest income is recognized as it is earned. Gains or losses on disposition of properties are recorded when the criteria for recognizing such gains or losses have been met. The Company must make estimates as to the collectability of its accounts receivable related to base rent, straight-line rent, expense reimbursements and other revenues. Management analyzes accounts receivable by considering tenant creditworthiness, current economic trends and changes in tenants’ payment patterns when evaluating the adequacy of the allowance for doubtful accounts receivable. The Company also provides an allowance for future credit losses of the deferred straight-line rents receivable. The allowance for doubtful accounts at June 30, 2024 and December 31, 2023 was approximately $17.6 million and $17.4 million, respectively. Depreciation and Amortization The Company uses the straight-line method for depreciation and amortization. Buildings are depreciated over estimated useful lives which the Company estimates to be 39 to 40 years. Property improvements are depreciated over estimated useful lives that range from 10 to 20 years. Furniture and fixtures are depreciated over estimated useful lives that range from 3 to 10 years. Tenant improvements are amortized over the shorter of the life of the related leases or their useful life. Deferred Leasing Costs Costs incurred in obtaining tenant leases (principally leasing commissions and acquired lease origination costs) are amortized ratably over the life of the tenant leases. The amortization of deferred leasing costs is included in Depreciation and amortization in the consolidated statements of operations and comprehensive income. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and tenant receivables. The Company places its cash and cash equivalents in excess of insured amounts with high quality financial institutions. The Company performs ongoing credit evaluations of its tenants and requires tenants to provide security deposits. Earnings Per Share Basic earnings per share (“EPS”) excludes the impact of dilutive shares and is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue shares of common stock were exercised or converted into shares of common stock and then shared in the earnings of the Company. For the three and six months ended June 30, 2024 and 2023, basic EPS was determined by dividing net income allocable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. Net income during the applicable period is also allocated to the time-based unvested restricted stock as these grants are entitled to receive non-forfeitable dividends and are therefore considered a participating security. Time-based unvested restricted stock is not allocated net losses and/or any excess of dividends declared over net income; such amounts are allocated entirely to the common stockholders other than the holders of time-based unvested restricted stock. The performance-based restricted stock awards and LTIP Units (as defined below) outstanding under the Equity Incentive Plan described in Note 7 are excluded from the basic EPS calculation, as these units are not participating securities until they vest. The following table sets forth the reconciliation between basic and diluted EPS for ROIC (in thousands, except share data):
Earnings Per Unit The following table sets forth the reconciliation between basic and diluted earnings per unit for the Operating Partnership (in thousands, except unit data):
Stock-Based Compensation The Company has a stock-based employee compensation plan, which is more fully described in Note 7. The Company accounts for its stock-based compensation plan based on the FASB guidance which requires that compensation expense be recognized based on the fair value of the stock awards less forfeitures. Restricted stock grants vest based upon the completion of a service period (“time-based restricted stock grants”) and/or the Company meeting certain pre-established operational performance goals and market-indexed financial performance criteria (“performance-based restricted stock grants”). Accordingly, if such vesting criteria are not met, the Company accounts for forfeitures as they occur. Time-based restricted stock grants are valued according to the market price for the Company’s common stock at the date of grant. For performance-based restricted stock grants subject to market-indexed performance criteria, a Monte Carlo valuation model is used, taking into account the underlying contingency risks associated with the performance criteria. All other performance-based restricted stock grants are valued according to the market price of the Company’s common stock at the date of grant. It is the Company’s policy to grant options with an exercise price equal to the quoted closing market price of stock on the grant date. The Company has made certain separate awards in the form of units of limited partnership interests in its Operating Partnership called LTIP Units (“LTIP Units”). The LTIP Units are subject to such conditions and restrictions as the compensation committee may determine, including continued employment or service, achievement of pre-established operational performance goals and market-indexed performance criteria. For the LTIP Units subject to market-indexed performance criteria (the “marked-indexed LTIP Units”), a Monte Carlo valuation model is used, taking into account the underlying contingency risks associated with the performance criteria. All other LTIP Units (the “operational LTIP Units”) are valued according to the market price of the Company’s common stock at the date of grant. Awards of stock options, time-based restricted stock grants, performance-based restricted stock subject to operational performance goals, and operational LTIP Units are expensed as compensation on a straight-line basis over the requisite service period. Awards of performance-based restricted stock subject to market-indexed performance criteria and market-indexed LTIP Units are expensed as compensation under the accelerated attribution method and are recognized in income regardless of the results of the performance criteria. Derivatives The Company records all derivatives on the balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged forecasted transactions in a cash flow hedge. When the Company terminates a derivative for which cash flow hedging was being applied, the balance, which was recorded in Other comprehensive income, is amortized to interest expense over the remaining contractual term of the derivative as long as the hedged forecasted transactions continue to be probable of occurring. Amounts paid, or received, to cash settle interest rate derivatives prior to their maturity date are recorded in Accumulated other comprehensive income (“AOCI”) at the cash settlement amount, and are reclassified to Interest expense as interest expense is recognized on the hedged debt. The Company includes cash payments made to terminate interest rate derivatives as an operating activity on the statement of cash flows, given the nature of the underlying cash flows that the derivative was hedging. Segment Reporting The Company’s primary business is the ownership, management, and redevelopment of retail real estate properties. The Company reviews operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. The Company evaluates financial performance using property operating income, defined as operating revenues (rental revenue and other income), less property and related expenses (property operating expenses and property taxes). The Company has aggregated the properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies, are typically located in major metropolitan areas, and have similar tenant mixes.
|
Real Estate Investments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments | Real Estate Investments The following real estate investment transaction has occurred during the six months ended June 30, 2024. The Company evaluated the following acquisition and determined that substantially all of the fair value related to the acquisition was concentrated in a single identifiable asset. The Company allocated the total consideration for the acquisition to the individual assets and liabilities acquired on a relative fair value basis. All transaction costs incurred in the acquisition were capitalized. Property Asset Acquisitions On April 4, 2024 the Company acquired the property known as Bressi Ranch Village Center for an adjusted purchase price of approximately $71.0 million. The property is approximately 116,000 square feet and is anchored by two supermarkets, Trader Joe’s and Stater Brothers Supermarket. The shopping center is part of a master-planned community, located in Carlsbad, California, within the San Diego metropolitan area. The property was acquired with cash on hand and borrowings under the credit facility. The financial information set forth below summarizes the Company’s purchase price allocation for the property asset acquired during the six months ended June 30, 2024 (in thousands):
The following table summarizes the operating results included in the Company’s historical consolidated statement of operations for the three and six months ended June 30, 2024, for the property asset acquired during the six months ended June 30, 2024 (in thousands):
|
Tenant Leases |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant Leases | Tenant Leases Space in the Company’s shopping centers is leased to various tenants under operating leases that usually grant tenants renewal options and generally provide for additional rents based on certain operating expenses as well as tenants’ sales volume. Future minimum rents to be received under non-cancellable leases as of June 30, 2024 are summarized as follows (in thousands):
|
Mortgage Notes Payable, Credit Facilities and Senior Notes |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Notes Payable, Credit Facilities and Senior Notes | Mortgage Notes Payable, Credit Facilities and Senior Notes ROIC does not hold any indebtedness. All debt is held directly or indirectly by the Operating Partnership; however, ROIC has guaranteed the Operating Partnership’s unsecured term loan, unsecured revolving credit facility, carve-out guarantees on property-level debt, and the Senior Notes. Costs incurred in obtaining long-term financing are amortized ratably over the related debt agreement. The amortization of deferred financing costs and debt discounts is included in Interest expense and other finance expenses in the consolidated statements of operations and comprehensive income. Mortgage Notes Payable On April 5, 2024, the Company repaid in full the mortgage note related to Fullerton Crossroads for a total of $26.0 million in accordance with the repayment provisions of the note. The mortgage notes payable collateralized by respective properties and assignment of leases at June 30, 2024 and December 31, 2023, respectively, were as follows (in thousands, except interest rates):
Term Loan and Credit Facility The carrying values of the Operating Partnership’s unsecured term loan (the “term loan”) were as follows (in thousands):
The Operating Partnership has an unsecured term loan (the “term loan”) with several banks. Effective March 2, 2023, the Operating Partnership entered into a Third Amendment to the First Amended and Restated Term Loan Agreement, dated as of September 8, 2017, as amended (the “Term Loan Agreement”). Under the Term Loan Agreement, the lenders agreed to provide $300.0 million of unsecured borrowings. The maturity date of the term loan is January 20, 2025, without further options for extension. The Term Loan Agreement also provides that the Operating Partnership may from time to time request increased aggregate commitments of $200.0 million if certain conditions are met, including the consent of the lenders to the additional commitments. Under the Term Loan Agreement, Secured Overnight Financing Rate (“SOFR”) based loans bear interest at Daily Simple SOFR or Term SOFR plus an index adjustment of 0.10% plus an applicable rate based on the credit rating of the Company (currently 1.0%). Base Rate Loans bear interest at a rate equal to an applicable rate based on the credit rating of the Company (currently 0.0%) plus the greater of (i) the Federal Funds Rate plus 0.50%, (ii) the rate publicly announced by KeyBank National Association as its “prime rate,” and (iii) one month Adjusted Term SOFR plus 1.0%. Capitalized terms used in this paragraph but not otherwise defined herein have the meanings set forth in the Term Loan Agreement. The Operating Partnership has an unsecured revolving credit facility (the “credit facility”) with several banks. Effective March 2, 2023, the Operating Partnership entered into a Third Amendment to the Second Amended and Restated Credit Agreement, dated as of September 8, 2017 (as amended, the “Credit Facility Agreement”). Under the Credit Facility Agreement, the Operating Partnership has borrowing capacity of up to $600.0 million. The maturity date under the Credit Facility Agreement is March 2, 2027, with two six-month extension options, which may be exercised by the Operating Partnership upon satisfaction of certain conditions including the payment of extension fees. Additionally, the Credit Facility Agreement contains an accordion feature, which allows the Operating Partnership to increase the borrowing capacity under the Credit Facility Agreement up to an aggregate of $1.2 billion, subject to lender consents and other conditions. Under the Credit Facility Agreement, SOFR based loans bear interest at Daily Simple SOFR or Term SOFR plus an index adjustment of 0.10% plus an applicable rate based on the credit rating of the Company (currently 0.85%). Base Rate Loans and Swing Line Loans bear interest at a rate equal to an applicable rate based on the credit rating of the Company (currently 0.0%) plus the greater of (i) the Federal Funds Rate plus 0.50%, (ii) the rate publicly announced by KeyBank National Association as its “prime rate,” and (iii) one month Adjusted Term SOFR plus 1.0%. Capitalized terms used in this paragraph but not otherwise defined herein have the meanings set forth in the Credit Facility Agreement. Additionally, the Operating Partnership is obligated to pay a facility fee at a rate based on the credit rating level of the Company (currently 0.20%) and a fronting fee at a rate of 0.125% per year with respect to each letter of credit issued under the Credit Facility Agreement, of which the Operating Partnership had $150,000 outstanding as of June 30, 2024. The Company has investment grade credit ratings from Moody’s Investors Service (Baa2), S&P Global Ratings (BBB-) and Fitch Ratings (BBB). As of June 30, 2024, there was $164.0 million outstanding under the credit facility compared to $75.0 million outstanding as of December 31, 2023. The net unamortized deferred financing costs, which are included in Deferred charges, net in the accompanying consolidated balance sheets, were approximately $4.2 million as of June 30, 2024 compared to approximately $5.0 million as of December 31, 2023. The weighted average interest rate on the term loan during both the three and six months ended June 30, 2024 was 6.4%. As discussed in Note 9 of the accompanying consolidated financial statements, the Company uses interest rate swaps to help manage its interest rate risk. For both the three and six months ended June 30, 2024, $150.0 million of the Company’s term loan was swapped at a blended interest rate of 5.4%. The weighted average interest rate on the credit facility during both the three and six months ended June 30, 2024 was 6.3%. The Company had no amounts available to borrow under the term loan at June 30, 2024. The Company had approximately $436.0 million available to borrow under the credit facility at June 30, 2024. Senior Notes The Operating Partnership issued $350.0 million aggregate principal amount of unsecured senior notes in September 2023 (the “Senior Notes Due 2028”), $250.0 million aggregate principal amount of unsecured senior notes in December 2017 (the “Senior Notes Due 2027”), $200.0 million aggregate principal amount of unsecured senior notes in September 2016 (the “Senior Notes Due 2026”), and $250.0 million aggregate principal amount of unsecured senior notes in December 2014 (the “Senior Notes Due 2024” and collectively with the Senior Notes Due 2026, the Senior Notes Due 2027 and the Senior Notes Due 2028, the “Senior Notes”). The key terms of the Operating Partnership’s Senior Notes are as follows:
The Operating Partnership completed registered underwritten public offerings for the Senior Notes Due 2028 and the Senior Notes Due 2024 and completed private placements for the Senior Notes Due 2027 and the Senior Notes Due 2026. The Senior Notes are the Operating Partnership’s senior unsecured obligations that rank equally in right of payment with the Operating Partnership’s other unsecured indebtedness, and effectively junior to (i) all of the indebtedness and other liabilities, whether secured or unsecured, and any preferred equity of the Operating Partnership’s subsidiaries, and (ii) all of the Operating Partnership’s indebtedness that is secured by its assets, to the extent of the value of the collateral securing such indebtedness outstanding. ROIC fully and unconditionally guarantees the Operating Partnership’s obligations under the Senior Notes on a senior unsecured basis, including the due and punctual payment of principal of, and premium, if any, and interest on, the notes, whether at stated maturity, upon acceleration, notice of redemption or otherwise. ROIC’s guarantees are senior unsecured obligations of ROIC and rank equally in right of payment with all other senior unsecured indebtedness of ROIC. ROIC’s guarantees of the Senior Notes are effectively subordinated in right of payment to all liabilities, whether secured or unsecured, and any preferred equity of ROIC’s subsidiaries (including the Operating Partnership and any entity ROIC accounts for under the equity method of accounting). The carrying value of the Operating Partnership’s Senior Notes are as follows (in thousands):
The Operating Partnership’s debt agreements contain customary representations, financial and other covenants, and its ability to borrow under these agreements is subject to its compliance with financial covenants and other restrictions on an ongoing basis. The Operating Partnership was in compliance with such covenants at June 30, 2024.
|
Preferred Stock of ROIC |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Equity [Abstract] | |
Preferred Stock of ROIC | Preferred Stock of ROIC ROIC is authorized to issue 50,000,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the board of directors. As of June 30, 2024 and December 31, 2023, there were no shares of preferred stock outstanding.
|
Common Stock of ROIC |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Equity [Abstract] | |
Common Stock of ROIC | Common Stock of ROIC ATM On February 20, 2020, ROIC entered into an “at the market” sales agreement, as amended on April 27, 2022 (the “Sales Agreement”), with each of (i) KeyBanc Capital Markets Inc., BTIG, LLC, BMO Capital Markets Corp., BofA Securities, Inc., Capital One Securities, Inc., Citigroup Global Markets Inc., Jefferies LLC, J.P. Morgan Securities LLC, Raymond James & Associates, Inc., Regions Securities LLC, Robert W. Baird & Co. Incorporated and Wells Fargo Securities, LLC (collectively, the “Agents”) and (ii) the Forward Purchasers (as defined below), pursuant to which ROIC may sell, from time to time, shares (any such shares, the “Primary Shares”) of ROIC’s common stock, par value $0.0001 per share (“Common Stock”), to or through the Agents and instruct certain of the Agents, acting as forward sellers (the “Forward Sellers”), to offer and sell borrowed shares (any such shares, “Forward Hedge Shares,” and collectively with the Primary Shares, the “Shares”) with the Shares to be sold under the Sales Agreement having an aggregate offering price of up to $500.0 million. The Sales Agreement contemplates that, in addition to the issuance and sale of Primary Shares to or through the Agents as principal or its sales agents, ROIC may enter into separate forward sale agreements with any of KeyBanc Capital Markets Inc., BMO Capital Markets Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Jefferies LLC, J.P. Morgan Securities LLC, Raymond James & Associates, Inc. and Wells Fargo Securities, LLC or their respective affiliates (in such capacity, the “Forward Purchasers”). If ROIC enters into a forward sale agreement with any Forward Purchaser, ROIC expects that such Forward Purchaser or its affiliate will borrow from third parties and, through the relevant Forward Seller, sell a number of Forward Hedge Shares equal to the number of shares of Common Stock underlying the particular forward sale agreement, in accordance with the mutually accepted instructions related to such forward sale agreement. ROIC will not initially receive any proceeds from any sale of Forward Hedge Shares through a Forward Seller. ROIC expects to fully physically settle each particular forward sale agreement with the relevant Forward Purchaser on one or more dates specified by ROIC on or prior to the maturity date of that particular forward sale agreement by issuing shares of Common Stock, in which case ROIC expects to receive aggregate net cash proceeds at settlement equal to the number of shares of Common Stock underlying the particular forward sale agreement multiplied by the relevant forward sale price. However, ROIC may also elect to cash settle or net share settle a particular forward sale agreement, in which case ROIC may not receive any proceeds from the issuance of shares of Common Stock, and ROIC will instead receive or pay cash (in the case of cash settlement) or receive or deliver shares of Common Stock (in the case of net share settlement). During the three and six months ended June 30, 2024, ROIC did not sell any shares under the Sales Agreement. Stock Repurchase Program On July 31, 2013, ROIC’s board of directors authorized a stock repurchase program to repurchase up to a maximum of $50.0 million of the Company’s common stock. During the six months ended June 30, 2024, the Company did not repurchase any shares of common stock under this program.
|
Stock Compensation for ROIC |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Compensation for ROIC | Stock Compensation for ROIC ROIC follows the FASB guidance related to stock compensation which establishes financial accounting and reporting standards for stock-based employee compensation plans, including all arrangements by which employees receive shares of stock or other equity instruments of the employer, or the employer incurs liabilities to employees in amounts based on the price of the employer’s stock. The guidance also defines a fair value-based method of accounting for an employee stock option or similar equity instrument. On April 25, 2022, the Company adopted the Company’s Second Amended and Restated 2009 Equity Incentive Plan (the “Equity Incentive Plan”) that amended and restated the Amended and Restated 2009 Equity Incentive Plan (the “Prior Plan”). The types of awards that may be granted under the Equity Incentive Plan include stock options, restricted shares, share appreciation rights, phantom shares, dividend equivalent rights and other equity-based awards. The Equity Incentive Plan has a fungible unit system that counts the number of shares of the Company’s common stock used in the issuance of full-value awards, such as restricted shares and LTIP Units, differently than the number of shares of common stock used in the issuance of stock options. A total of 10,954,694 Fungible Units (as defined in the Equity Incentive Plan) are reserved for grant under the Equity Incentive Plan. The 10,954,694 Fungible Units represent a maximum of 5,002,143 shares of the Company’s common stock that could be granted pursuant to the Equity Incentive Plan as full-value awards, such as restricted shares, based on the 2.19 to 1.0 Fungible Unit-to-full-value award conversion ratio. A maximum of 10,954,694 shares of the Company’s common stock may be issued pursuant to the Equity Incentive Plan if all grants made under the Equity Incentive Plan are granted as stock options, based on a 1.0 to 1.0 Fungible Unit-to-stock option award conversion ratio. The Equity Incentive Plan will expire on April 25, 2032. The Company has made, under both the Equity Incentive Plan and the Prior Plan, certain awards in the form of a separate series of units of limited partnership interests in its Operating Partnership called LTIP Units. LTIP Units can be granted either as free-standing awards or in tandem with other awards under the Equity Incentive Plan. The LTIP Units are subject to such conditions and restrictions as the compensation committee may determine, including continued employment or service, achievement of pre-established operational performance goals and market-indexed performance criteria. Upon the occurrence of specified events and subject to the satisfaction of applicable vesting conditions, LTIP Units (after conversion into OP Units, in accordance with the Partnership Agreement) are ultimately redeemable for cash or at ROIC’s option, for shares of ROIC common stock on a one-for-one basis. Restricted Stock During the six months ended June 30, 2024, ROIC awarded 608,781 shares of time-based restricted common stock under the Equity Incentive Plan. A summary of the status of the Company’s non-vested restricted stock awards as of June 30, 2024, and changes during the six months ended June 30, 2024 are presented below:
LTIP Units During the six months ended June 30, 2024, ROIC awarded 290,522 LTIP Units under the Equity Incentive Plan. The LTIP Units vest based on both pre-defined operational and market-indexed performance criteria with a vesting date on January 1, 2027. A summary of the status of the Company’s non-vested LTIP Unit awards as of June 30, 2024, and changes during the six months ended June 30, 2024 are presented below:
Stock Based Compensation Expense For the three months ended June 30, 2024 and 2023, the amounts charged to expense for all stock-based compensation arrangements totaled approximately $3.3 million and $3.4 million, respectively. For the six months ended June 30, 2024 and 2023, the amounts charged to expense for all stock-based compensation arrangements totaled approximately $6.1 million and $6.4 million, respectively.
|
Capital of the Operating Partnership |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Equity [Abstract] | |
Capital of the Operating Partnership | Capital of the Operating Partnership As of June 30, 2024, the Operating Partnership had 134,891,471 OP Units outstanding. ROIC owned an approximate 94.5% partnership interest in the Operating Partnership at June 30, 2024, or 127,454,354 OP Units. The remaining 7,437,117 OP Units are owned by other limited partners. A share of ROIC’s common stock and an OP Unit have essentially the same economic characteristics as they share equally in the total net income or loss and distributions of the Operating Partnership. As of June 30, 2024, subject to certain exceptions, holders are able to redeem their OP Units for cash or, at ROIC’s option, for shares of ROIC common stock on a one-for-one basis. If cash is paid in the redemption, the redemption price is equal to the average closing price on the NASDAQ Stock Market for shares of ROIC’s common stock over the ten consecutive trading days immediately preceding the date a redemption notice is received by ROIC. The redemption value of outstanding OP Units owned by the limited partners as of June 30, 2024, not including ROIC, had such units been redeemed at June 30, 2024, was approximately $91.6 million, calculated based on the average closing price of ROIC’s common stock on the NASDAQ Stock Market for the ten consecutive trading days immediately preceding June 30, 2024, which amounted to $12.32 per share. Retail Opportunity Investments GP, LLC, ROIC’s wholly-owned subsidiary, is the sole general partner of the Operating Partnership, and as the parent company, ROIC has the full and complete authority over the Operating Partnership’s day-to-day management and control. As the sole general partner of the Operating Partnership, ROIC effectively controls the ability to issue common stock of ROIC upon redemption of any OP Units. The redemption provisions that permit ROIC to settle the redemption of OP Units in either cash or common stock, in the sole discretion of ROIC, are further evaluated in accordance with applicable accounting guidance to determine whether temporary or permanent equity classification on the balance sheet is appropriate. The Company evaluated this guidance, including the ability, in its sole discretion, to settle in unregistered shares of common stock, and determined that the OP Units meet the requirements to qualify for presentation as permanent equity.
|
Fair Value of Financial Instruments |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows the FASB guidance that defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The guidance applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The following disclosures of estimated fair value were determined by management, using available market information and appropriate valuation methodologies as discussed in Note 1. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts realizable upon disposition of the financial instruments. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts. The carrying values of cash and cash equivalents, restricted cash, tenant and other receivables, deposits, prepaid expenses, other assets, accounts payable and accrued expenses are reasonable estimates of their fair values because of the short-term nature of these instruments. The carrying values of the term loan and credit facility are deemed to be at fair value since the outstanding debt is directly tied to monthly SOFR contracts. The fair value of the outstanding Senior Notes Due 2028 and Senior Notes Due 2024 as of June 30, 2024 was approximately $363.2 million and $247.1 million, respectively, based on inputs not quoted on active markets, but corroborated by market data, or Level 2. The fair value of the outstanding Senior Notes Due 2027 and Senior Notes Due 2026 as of June 30, 2024 was approximately $231.0 million and $188.9 million, respectively, calculated using significant inputs which are not observable in the market, or Level 3. The assumed mortgage note payable was recorded at its fair value at the time it was assumed. The Company’s outstanding mortgage note payable was estimated to have a fair value of approximately $33.8 million with a weighted average interest rate of 7.8% as of June 30, 2024. This fair value measurement falls within Level 3 of the fair value hierarchy. Derivative and Hedging Activities The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The following is a summary of the terms of the Company’s current interest rate swaps as of June 30, 2024 (in thousands):
The changes in the fair value of derivatives that are designated as cash flow hedges are recorded in AOCI and are subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, including interest rate curves, and implied volatilities. The fair value of interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporated credit valuation adjustments to appropriately reflect both its own non-performance risk and the respective counterparties’ non-performance risk in the fair value measurements. In adjusting the fair value of its derivative contract for the effect of non-performance risk, the Company considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of June 30, 2024, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuation in its entirety is classified in Level 2 of the fair value hierarchy. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands):
The Company estimates that through August 31, 2024, approximately $248,000 will be reclassified as a non-cash decrease to interest expense related to the Company’s two outstanding swap arrangements. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet as of June 30, 2024 and December 31, 2023, respectively (in thousands):
Derivatives in Cash Flow Hedging Relationships The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2024 and 2023, respectively (in thousands):
|
Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, from time to time, the Company is involved in legal actions relating to the ownership and operations of its properties. In management’s opinion, the liabilities, if any, that ultimately may result from such legal actions are not expected to have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company. The Company has signed several ground leases in which the Company is the lessee for the land beneath all or a portion of the buildings for certain properties. As of June 30, 2024, the Company’s net lease liability of approximately $16.2 million, which is included in in the accompanying consolidated balance sheets, and related net right-to-use asset of approximately $14.4 million, which is included in in the accompanying consolidated balance sheets, represents all operating leases in which the Company is a lessee. As of June 30, 2024, the Company’s weighted average remaining lease term is approximately 35.0 years and the weighted average discount rate used to calculate the Company’s lease liability is approximately 5.2%. Rent expense under the Company’s ground leases was approximately $427,000 and $502,000 for the three months ended June 30, 2024 and 2023, respectively, and approximately $854,000 and $903,000 for the six months ended June 30, 2024 and 2023, respectively. The following table represents a reconciliation of the Company’s undiscounted future minimum annual lease payments under operating leases to the lease liability as of June 30, 2024 (in thousands):
Tax Protection Agreements In connection with certain acquisitions from September 2013 through March 2017, the Company entered into Tax Protection Agreements with certain limited partners of the Operating Partnership. The Tax Protection Agreements require the Company, subject to certain exceptions, to indemnify the respective sellers receiving OP Units against certain tax liabilities incurred by them, as calculated pursuant to the respective Tax Protection Agreements, for a period of 12 years (with respect to Tax Protection Agreements entered into in September 2013), or 10 years (with respect to Tax Protection Agreements entered into from December 2014 through March 2017) from the date of the Tax Protection Agreements. In the unlikely event that the Company were to trigger the tax protection provisions under these agreements, the Company would be required to pay damages in the amount of the taxes owed by these limited partners (plus additional damages in the amount of the taxes incurred as a result of such payment).
|
Related Party Transactions |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has entered into several lease agreements with an officer of the Company, whereby pursuant to the lease agreements, the Company is provided the use of storage space. For the three months ended June 30, 2024 and 2023, the Company incurred approximately $25,000 and $24,000, respectively, of expenses relating to the agreements. For the six months ended June 30, 2024 and 2023, the Company incurred approximately $49,000 and $47,000, respectively, of expenses relating to the agreements. These expenses were included in General and administrative expenses in the accompanying consolidated statements of operations and comprehensive income.
|
Subsequent Events |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 17, 2024, the Company sold the property known as Marketplace Del Rio, a shopping center located in Oceanside, California for a sales price of $56.6 million. On July 23, 2024, the Company’s board of directors declared a cash dividend on its common stock and a distribution on the Operating Partnership’s OP Units of $0.15 per share and per OP Unit, payable on October 4, 2024 to holders of record on September 20, 2024.
|
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements are prepared on the accrual basis in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, the consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and the results of operations and cash flows for the periods presented. Results of operations for the three and six month periods ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2023. The consolidated financial statements include the accounts of the Company and those of its subsidiaries, which are wholly-owned or controlled by the Company. Entities which the Company does not control through its voting interest and entities which are variable interest entities (“VIEs”), but where it is not the primary beneficiary, are accounted for under the equity method. All significant intercompany balances and transactions have been eliminated. The Company follows the Financial Accounting Standards Board (“FASB”) guidance for determining whether an entity is a VIE and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE. Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The Company has concluded that the Operating Partnership is a VIE, and because they have both the power and the rights to control the Operating Partnership, they are the primary beneficiary and are required to continue to consolidate the Operating Partnership. A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the consolidated balance sheets and modify the presentation of net income by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests.
|
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the disclosure of contingent assets and liabilities, the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the periods covered by the financial statements. The most significant assumptions and estimates relate to the recoverability of assets to be held and used, purchase price allocations, depreciable lives, revenue recognition and the collectability of tenant receivables, other receivables, notes receivables, and the valuation of performance-based restricted stock, LTIP Units (as defined below), and derivatives. Actual results could differ from these estimates.
|
Federal Income Taxes | Federal Income Taxes The Company has elected to qualify as a REIT under Sections 856-860 of the Internal Revenue Code (the “Code”). Under those sections, a REIT that, among other things, distributes at least 90% of its REIT taxable income (determined without regard to the dividends paid deduction and excluding net capital gains) and meets certain other qualifications prescribed by the Code, will not be taxed on that portion of its taxable income that is distributed. Although it may qualify as a REIT for U.S. federal income tax purposes, the Company is subject to state income or franchise taxes in certain states in which some of its properties are located. For all periods from inception through September 26, 2013, the Operating Partnership had been an entity disregarded from its sole owner, ROIC, for U.S. federal income tax purposes and as such had not been subject to U.S. federal income taxes. Effective September 27, 2013, the Operating Partnership issued OP Units in connection with the acquisitions of two shopping centers. Accordingly, the Operating Partnership ceased being a disregarded entity and instead is being treated as a partnership for U.S. federal income tax purposes. The Company follows the FASB guidance that defines a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The FASB also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company records interest and penalties relating to unrecognized tax benefits, if any, as interest expense. As of June 30, 2024, the statute of limitations for the tax years 2019 through and including 2022 remain open for examination by the Internal Revenue Service (“IRS”) and state taxing authorities. ROIC intends to make regular quarterly distributions to holders of its common stock. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that it pay U.S. federal income tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income. ROIC intends to pay regular quarterly dividends to stockholders in an amount not less than its net taxable income, if and to the extent authorized by its board of directors. Before ROIC pays any dividend, whether for U.S. federal income tax purposes or otherwise, it must first meet both its operating requirements and its debt service on debt. If ROIC’s cash available for distribution is less than its net taxable income, it could be required to sell assets or borrow funds to make cash distributions or it may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities. The Company intends to continue to operate its business in a manner that will allow it to qualify as a REIT, including maintaining compliance with taxable income distribution requirements.
|
Real Estate Investments | Real Estate Investments All costs related to the improvement or replacement of real estate properties are capitalized. Additions, renovations and improvements that enhance and/or extend the useful life of a property are also capitalized. Expenditures for ordinary maintenance, repairs and improvements that do not materially prolong the normal useful life of an asset are charged to operations as incurred. During the six months ended June 30, 2024 and 2023, capitalized costs related to the improvement or replacement of real estate properties were approximately $18.5 million and $23.0 million, respectively. The Company evaluates each acquisition of real estate to determine if the acquired property meets the definition of a business and needs to be accounted for as a business combination. The Company first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If this threshold is met, the acquired property does not meet the definition of a business and is accounted for as an asset acquisition. The Company expects that acquisitions of real estate properties will not meet the revised definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related intangible assets). The Company recognizes the acquisition of real estate properties, including acquired tangible assets (consisting of land, buildings and improvements) and acquired intangible assets and liabilities (consisting of above-market and below-market leases and acquired in-place leases) at their relative fair value (for acquisitions not meeting the definition of a business) and fair value (for acquisitions meeting the definition of a business). The relative fair values used to allocate the cost of an asset acquisition are determined using the same methodologies and assumptions the Company utilizes to determine fair value in a business combination. Substantially all of the Company’s acquisitions are accounted for as asset acquisitions. Acquired lease intangible assets include above-market leases and acquired in-place leases, and Acquired lease intangible liabilities represent below-market leases, in the accompanying consolidated balance sheets. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, which value is then allocated to land, buildings and improvements based on management’s determination of the relative fair values of these assets. In valuing an acquired property’s intangibles, factors considered by management include an estimate of carrying costs during the expected lease-up periods and estimates of lost rental revenue during the expected lease-up periods based on management’s evaluation of current market demand. Management also estimates costs to execute similar leases, including leasing commissions, tenant improvements, legal and other related costs. Leasing commissions, legal and other related costs (“lease origination costs”) are classified as Deferred charges in the accompanying consolidated balance sheets. The value of in-place leases is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates, over (ii) the estimated fair value of the property as if it were vacant. Above-market and below-market lease values are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be received and management’s estimate of market lease rates, measured over the terms of the respective leases that management deemed appropriate at the time of acquisition. Such valuations include a consideration of the non-cancellable terms of the respective leases as well as any applicable renewal periods. The fair values associated with below-market rental renewal options are determined based on the Company’s experience and the relevant facts and circumstances that existed at the time of the acquisitions. The value of the above-market and below-market leases associated with the original lease term and option periods, if applicable, is amortized to Rental revenue over the terms of the respective leases including option periods. The value of in-place leases is amortized to Depreciation expense over the remaining non-cancellable terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recognized in operations at that time. |
Asset Impairment | Asset Impairment |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed the federally insured limit by the Federal Deposit Insurance Corporation. The Company has not experienced any losses related to these balances.
|
Restricted Cash | Restricted Cash The terms of the Company’s mortgage loans payable may require the Company to deposit certain replacement and other reserves with its lenders. Such “restricted cash” is generally available only for property-level requirements for which the reserves have been established and is not available to fund other property-level or Company-level obligations.
|
Revenue Recognition | Revenue Recognition and Collectability Management has determined that all of the Company’s leases with its various tenants are operating leases. Rental income is generally recognized based on the terms of leases entered into with tenants. In those instances in which the Company funds tenant improvements and the improvements are deemed to be owned by the Company, revenue recognition will commence when the improvements are substantially completed and possession or control of the space is turned over to the tenant. When the Company determines that the tenant allowances are lease incentives, the Company commences revenue recognition and lease incentive amortization when possession or control of the space is turned over to the tenant for tenant work to begin. Minimum rental income from leases with scheduled rent increases is recognized on a straight-line basis over the lease term. Percentage rent is recognized when a specific tenant’s sales breakpoint is achieved. Each lease agreement is evaluated to identify the lease and nonlease components at lease inception. The Company combines lease and non-lease components into a single lease component presentation if (i) the timing and pattern of the revenue recognition of the combined single lease component is the same, and (ii) the related lease component and the combined single lease component would be classified as an operating lease. As a result of this assessment, rental revenues and tenant recoveries from the lease of real estate assets are accounted for as a single component. Lease incentives are amortized as a reduction of rental revenue over the respective tenant lease terms. Termination fees (included in Other income in the consolidated statements of operations and comprehensive income) are fees that the Company has agreed to accept in consideration for permitting certain tenants to terminate their lease prior to the contractual expiration date. The Company recognizes termination fees when the following conditions are met: (a) the termination agreement is executed; (b) the termination fee is determinable; (c) all landlord services pursuant to the terminated lease have been rendered; and (d) collectability of substantially all of the termination fee is probable. The Company also enters into lease settlement agreements to resolve disputes with tenants who have defaulted. Lease settlement fee income is recognized in Other income during the period in which the settlement occurs. Interest income is recognized as it is earned. Gains or losses on disposition of properties are recorded when the criteria for recognizing such gains or losses have been met. |
Depreciation and Amortization | Depreciation and Amortization The Company uses the straight-line method for depreciation and amortization. Buildings are depreciated over estimated useful lives which the Company estimates to be 39 to 40 years. Property improvements are depreciated over estimated useful lives that range from 10 to 20 years. Furniture and fixtures are depreciated over estimated useful lives that range from 3 to 10 years. Tenant improvements are amortized over the shorter of the life of the related leases or their useful life.
|
Deferred Leasing Costs | Deferred Leasing Costs Costs incurred in obtaining tenant leases (principally leasing commissions and acquired lease origination costs) are amortized ratably over the life of the tenant leases. The amortization of deferred leasing costs is included in Depreciation and amortization in the consolidated statements of operations and comprehensive income.
|
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and tenant receivables. The Company places its cash and cash equivalents in excess of insured amounts with high quality financial institutions. The Company performs ongoing credit evaluations of its tenants and requires tenants to provide security deposits.
|
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) excludes the impact of dilutive shares and is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue shares of common stock were exercised or converted into shares of common stock and then shared in the earnings of the Company. For the three and six months ended June 30, 2024 and 2023, basic EPS was determined by dividing net income allocable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. Net income during the applicable period is also allocated to the time-based unvested restricted stock as these grants are entitled to receive non-forfeitable dividends and are therefore considered a participating security. Time-based unvested restricted stock is not allocated net losses and/or any excess of dividends declared over net income; such amounts are allocated entirely to the common stockholders other than the holders of time-based unvested restricted stock. The performance-based restricted stock awards and LTIP Units (as defined below) outstanding under the Equity Incentive Plan described in Note 7 are excluded from the basic EPS calculation, as these units are not participating securities until they vest.
|
Stock-Based Compensation | Stock-Based Compensation The Company has a stock-based employee compensation plan, which is more fully described in Note 7. The Company accounts for its stock-based compensation plan based on the FASB guidance which requires that compensation expense be recognized based on the fair value of the stock awards less forfeitures. Restricted stock grants vest based upon the completion of a service period (“time-based restricted stock grants”) and/or the Company meeting certain pre-established operational performance goals and market-indexed financial performance criteria (“performance-based restricted stock grants”). Accordingly, if such vesting criteria are not met, the Company accounts for forfeitures as they occur. Time-based restricted stock grants are valued according to the market price for the Company’s common stock at the date of grant. For performance-based restricted stock grants subject to market-indexed performance criteria, a Monte Carlo valuation model is used, taking into account the underlying contingency risks associated with the performance criteria. All other performance-based restricted stock grants are valued according to the market price of the Company’s common stock at the date of grant. It is the Company’s policy to grant options with an exercise price equal to the quoted closing market price of stock on the grant date. The Company has made certain separate awards in the form of units of limited partnership interests in its Operating Partnership called LTIP Units (“LTIP Units”). The LTIP Units are subject to such conditions and restrictions as the compensation committee may determine, including continued employment or service, achievement of pre-established operational performance goals and market-indexed performance criteria. For the LTIP Units subject to market-indexed performance criteria (the “marked-indexed LTIP Units”), a Monte Carlo valuation model is used, taking into account the underlying contingency risks associated with the performance criteria. All other LTIP Units (the “operational LTIP Units”) are valued according to the market price of the Company’s common stock at the date of grant. Awards of stock options, time-based restricted stock grants, performance-based restricted stock subject to operational performance goals, and operational LTIP Units are expensed as compensation on a straight-line basis over the requisite service period. Awards of performance-based restricted stock subject to market-indexed performance criteria and market-indexed LTIP Units are expensed as compensation under the accelerated attribution method and are recognized in income regardless of the results of the performance criteria.
|
Derivatives | Derivatives The Company records all derivatives on the balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged forecasted transactions in a cash flow hedge. When the Company terminates a derivative for which cash flow hedging was being applied, the balance, which was recorded in Other comprehensive income, is amortized to interest expense over the remaining contractual term of the derivative as long as the hedged forecasted transactions continue to be probable of occurring. Amounts paid, or received, to cash settle interest rate derivatives prior to their maturity date are recorded in Accumulated other comprehensive income (“AOCI”) at the cash settlement amount, and are reclassified to Interest expense as interest expense is recognized on the hedged debt. The Company includes cash payments made to terminate interest rate derivatives as an operating activity on the statement of cash flows, given the nature of the underlying cash flows that the derivative was hedging.
|
Segment Reporting | Segment Reporting The Company’s primary business is the ownership, management, and redevelopment of retail real estate properties. The Company reviews operating and financial information for each property on an individual basis and therefore, each property represents an individual operating segment. The Company evaluates financial performance using property operating income, defined as operating revenues (rental revenue and other income), less property and related expenses (property operating expenses and property taxes). The Company has aggregated the properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities including the fact that they are operated using consistent business strategies, are typically located in major metropolitan areas, and have similar tenant mixes.
|
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the reconciliation between basic and diluted EPS for ROIC (in thousands, except share data):
Earnings Per Unit The following table sets forth the reconciliation between basic and diluted earnings per unit for the Operating Partnership (in thousands, except unit data):
|
Real Estate Investment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Purchase Price Allocation for Property Assets Acquired | The financial information set forth below summarizes the Company’s purchase price allocation for the property asset acquired during the six months ended June 30, 2024 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Results Included in Historical Consolidated Statement of Operations for Property Assets Acquired | The following table summarizes the operating results included in the Company’s historical consolidated statement of operations for the three and six months ended June 30, 2024, for the property asset acquired during the six months ended June 30, 2024 (in thousands):
|
Tenant Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rents to be Received Under Non-cancellable Leases | Future minimum rents to be received under non-cancellable leases as of June 30, 2024 are summarized as follows (in thousands):
|
Mortgage Notes Payable, Credit Facilities and Senior Notes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The mortgage notes payable collateralized by respective properties and assignment of leases at June 30, 2024 and December 31, 2023, respectively, were as follows (in thousands, except interest rates):
The key terms of the Operating Partnership’s Senior Notes are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The carrying values of the Operating Partnership’s unsecured term loan (the “term loan”) were as follows (in thousands):
The carrying value of the Operating Partnership’s Senior Notes are as follows (in thousands):
|
Stock Compensation for ROIC (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-vested Restricted Stock Awards | A summary of the status of the Company’s non-vested restricted stock awards as of June 30, 2024, and changes during the six months ended June 30, 2024 are presented below:
A summary of the status of the Company’s non-vested LTIP Unit awards as of June 30, 2024, and changes during the six months ended June 30, 2024 are presented below:
|
Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | The following is a summary of the terms of the Company’s current interest rate swaps as of June 30, 2024 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Financial Instruments and Classification on Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet as of June 30, 2024 and December 31, 2023, respectively (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gain or Loss Recognized on Interest Rate Derivatives Designated as Cash Flow Hedges | The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2024 and 2023, respectively (in thousands):
|
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Undiscounted Future Minimum Annual Lease Payments Under Operating Leases to Lease Liability | The following table represents a reconciliation of the Company’s undiscounted future minimum annual lease payments under operating leases to the lease liability as of June 30, 2024 (in thousands):
|
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
segment
|
Jun. 30, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
Organization, Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Taxable income minimum distribution portion not subject to federal taxation (in percentage) | 90.00% | 90.00% | |||
Real estate improvements | $ 18,500,000 | $ 23,000,000.0 | |||
Acquisition costs | $ 0 | $ 0 | 0 | $ 0 | |
Allowance for doubtful accounts receivable | $ 17,600,000 | $ 17,600,000 | $ 17,400,000 | ||
Number of segments | segment | 1 | ||||
Minimum | Building | |||||
Organization, Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
PPE useful life (in years) | 39 years | 39 years | |||
Minimum | Building Improvements | |||||
Organization, Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
PPE useful life (in years) | 10 years | 10 years | |||
Minimum | Furniture and Fixtures | |||||
Organization, Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
PPE useful life (in years) | 3 years | 3 years | |||
Maximum | Building | |||||
Organization, Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
PPE useful life (in years) | 40 years | 40 years | |||
Maximum | Building Improvements | |||||
Organization, Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
PPE useful life (in years) | 20 years | 20 years | |||
Maximum | Furniture and Fixtures | |||||
Organization, Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
PPE useful life (in years) | 10 years | 10 years |
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation Between Basic and Diluted EPS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Numerator: | ||||||
Net income | $ 7,799 | $ 10,518 | $ 19,464 | $ 19,214 | ||
Less income attributable to non-controlling interests | (433) | $ (647) | (589) | $ (554) | (1,080) | (1,143) |
Less earnings allocated to participating securities | (129) | (112) | (260) | (232) | ||
Net income available for common stockholders, basic | 7,237 | 9,817 | 18,124 | 17,839 | ||
Less earnings allocated to participating securities | (129) | (112) | (260) | (232) | ||
Net income available for common stockholders, diluted | $ 7,670 | $ 10,406 | $ 19,204 | $ 18,982 | ||
Denominator: | ||||||
Denominator for basic EPS – weighted average common equivalent shares (in shares) | 126,593,414 | 125,125,235 | 126,593,414 | 124,678,781 | ||
Denominator for diluted EPS – weighted average common equivalent shares (in shares) | 134,314,454 | 133,043,829 | 134,325,681 | 133,068,735 | ||
Retail Opportunity Investments Partnership L.P. | ||||||
Numerator: | ||||||
Net income | $ 7,799 | $ 11,665 | $ 10,518 | $ 8,696 | $ 19,464 | $ 19,214 |
Less earnings allocated to participating securities | (129) | (112) | (260) | (232) | ||
Net income available for common stockholders, basic | 7,670 | 10,406 | 19,204 | 18,982 | ||
Net income available for common stockholders, diluted | $ 7,670 | $ 10,406 | $ 19,204 | $ 18,982 | ||
Denominator: | ||||||
Denominator for basic EPS – weighted average common equivalent shares (in shares) | 134,030,531 | 132,686,857 | 134,030,531 | 132,680,705 | ||
Denominator for diluted EPS – weighted average common equivalent shares (in shares) | 134,314,454 | 133,043,829 | 134,325,681 | 133,068,735 | ||
OP Units | ||||||
Denominator: | ||||||
OP Units (in shares) | 7,437,117 | 7,561,622 | 7,437,117 | 8,001,924 | ||
Performance-based restricted stock awards and LTIP Units | ||||||
Denominator: | ||||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 283,923 | 356,972 | 295,150 | 388,030 | ||
Performance-based restricted stock awards and LTIP Units | Retail Opportunity Investments Partnership L.P. | ||||||
Denominator: | ||||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 283,923 | 356,972 | 295,150 | 388,030 |
Real Estate Investment - Narrative (Details) - Bressi Ranch - Carlsbad, CA ft² in Thousands, $ in Millions |
Apr. 04, 2024
USD ($)
ft²
|
---|---|
Real Estate [Line Items] | |
Investments in Real Estate | $ | $ 71.0 |
Area of Real Estate Property | ft² | 116 |
Real Estate Investments - Property Asset Acquisition (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Real Estate [Abstract] | |
Land | $ 21,255 |
Building and improvements | 46,010 |
Acquired lease intangible asset | 4,883 |
Deferred charges | 1,755 |
Assets acquired | 73,903 |
Acquired lease intangible liability | 2,952 |
Liabilities assumed | $ 2,952 |
Real Estate Investments - Operating Results Included For Property Assets Acquired (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2024 |
|
Real Estate [Abstract] | ||
Revenues | $ 1,572 | $ 1,572 |
Net income attributable to Retail Opportunity Investments Corp. | $ 191 | $ 191 |
Tenant Leases (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Future Minimum Rents to be Received Under Non-cancellable Leases | |
Remaining 2024 | $ 117,641 |
2025 | 222,048 |
2026 | 193,651 |
2027 | 163,279 |
2028 | 130,076 |
Thereafter | 421,061 |
Total minimum lease payments | $ 1,247,756 |
Mortgage Notes Payable, Credit Facilities and Senior Notes - Mortgage Notes Based On Respective Properties (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Apr. 05, 2024 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Debt Instrument [Line Items] | ||||
Repayment of mortgages | $ 26,351 | $ 342 | ||
Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Long term debt | 33,694 | $ 60,045 | ||
Unamortized mortgage premiums | 0 | 72 | ||
Net unamortized deferred financing costs | (46) | (65) | ||
Total mortgage notes payable | $ 33,648 | 60,052 | ||
Notes Payable | Fullerton Crossroads | ||||
Debt Instrument [Line Items] | ||||
Repayment of mortgages | $ 26,000 | |||
Interest rate (percentage) | 4.728% | |||
Long term debt | $ 0 | 26,000 | ||
Notes Payable | Diamond Hills Plaza | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percentage) | 3.55% | |||
Long term debt | $ 33,694 | $ 34,045 |
Mortgage Notes Payable, Credit Facilities and Senior Notes - Carrying Value of Debt (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
Mar. 02, 2023 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Senior Notes | $ 1,044,523,000 | $ 1,043,593,000 | |
Term Loan Agreement | |||
Debt Instrument [Line Items] | |||
Principal amount | 200,000,000 | 200,000,000 | $ 300,000,000.0 |
Net unamortized deferred financing costs | (134,000) | (255,000) | |
Term loan | 199,866,000 | 199,745,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal amount | 1,050,000,000 | 1,050,000,000 | |
Unamortized debt discount | (1,680,000) | (2,033,000) | |
Net unamortized deferred financing costs | (3,797,000) | (4,374,000) | |
Senior Notes | $ 1,044,523,000 | $ 1,043,593,000 |
Mortgage Notes Payable, Credit Facilities and Senior Notes - Narrative (Details) |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 02, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
Sep. 21, 2023
USD ($)
|
Dec. 20, 2019
credit_facility_extension
|
Nov. 10, 2017
USD ($)
|
Jul. 26, 2016
USD ($)
|
Dec. 03, 2014
USD ($)
|
|
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 600,000,000.0 | ||||||||
Number of extension options | credit_facility_extension | 2 | ||||||||
Extension term | 6 months | ||||||||
Commitment fee (percentage) | 0.20% | ||||||||
Fronting fee (percentage) | 0.125% | 0.125% | |||||||
Credit facility | $ 164,000,000.0 | $ 164,000,000.0 | $ 75,000,000.0 | ||||||
Net unamortized deferred financing costs | $ 4,200,000 | $ 4,200,000 | 5,000,000.0 | ||||||
Line of credit facility, interest rate during the period (percentage) | 6.30% | 6.30% | |||||||
Remaining borrowing capacity | $ 436,000,000.0 | $ 436,000,000.0 | |||||||
Revolving Credit Facility | Federal Funds Effective Swap Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 0.50% | ||||||||
Revolving Credit Facility | Adjusted Term SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 1.00% | ||||||||
Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Letters of credit outstanding, amount | 150,000 | 150,000 | |||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | 1,050,000,000 | 1,050,000,000 | 1,050,000,000 | ||||||
Net unamortized deferred financing costs | 3,797,000 | 3,797,000 | 4,374,000 | ||||||
Term Loan Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 300,000,000.0 | 200,000,000 | 200,000,000 | 200,000,000 | |||||
Additional borrowing capacity | $ 200,000,000.0 | ||||||||
Variable rate (percentage) | 1.00% | ||||||||
Net unamortized deferred financing costs | $ 134,000 | $ 134,000 | $ 255,000 | ||||||
Interest rate during period (percentage) | 6.40% | 6.40% | |||||||
Swapped interest rate | 5.40% | 5.40% | |||||||
Remaining borrowing capacity | $ 0 | $ 0 | |||||||
Term Loan Agreement | Federal Funds Effective Swap Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 0.50% | ||||||||
Term Loan Agreement | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 0.10% | ||||||||
Term Loan Agreement | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 0.00% | ||||||||
Term Loan Agreement | Adjusted Term SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 1.00% | ||||||||
Credit facility including accordion feature | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 1,200,000,000 | ||||||||
Senior Notes Due 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 350,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||||||
Senior Notes Due 2027 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 250,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.19% | ||||||||
Senior Notes Due 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 200,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||||||||
Senior Notes Due 2024 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 250,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 0.85% | ||||||||
Revolving Credit Facility | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 0.10% | ||||||||
Revolving Credit Facility | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (percentage) | 0.00% | ||||||||
Two Swaps | |||||||||
Debt Instrument [Line Items] | |||||||||
Long term debt | $ 150,000,000.0 | $ 150,000,000.0 |
Mortgage Notes Payable, Credit Facilities and Senior Notes - Senior Notes (Details) - Senior Notes - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
Sep. 21, 2023 |
Nov. 10, 2017 |
Jul. 26, 2016 |
Dec. 03, 2014 |
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Principal amount | $ 1,050,000,000 | $ 1,050,000,000 | ||||
Senior Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 350,000,000 | |||||
Interest rate (percentage) | 6.75% | |||||
Senior Notes Due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 250,000,000 | |||||
Interest rate (percentage) | 4.19% | |||||
Senior Notes Due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 200,000,000 | |||||
Interest rate (percentage) | 3.95% | |||||
Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 250,000,000 | |||||
Interest rate (percentage) | 4.00% |
Preferred Stock of ROIC (Details) - shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock of ROIC (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2024 |
Dec. 31, 2023 |
Feb. 20, 2020 |
Jul. 31, 2013 |
|
Class of Stock [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Stock repurchase program, authorized amount | $ 50,000,000.0 | ||||
Repurchase of common stock (in shares) | 0 | ||||
Sales Agreement | |||||
Class of Stock [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.0001 | ||||
Common shares that may be sold under a sales agreement, aggregate offering price, maximum | $ 500,000,000.0 | ||||
Proceeds from the issuance of common stock, Shares | 0 | 0 |
Stock Compensation for ROIC - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2024
USD ($)
shares
|
Jun. 30, 2023
USD ($)
|
Apr. 25, 2022
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ 3.3 | $ 3.4 | $ 6.1 | $ 6.4 | |
Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 10,954,694 | ||||
Equity Incentive Plan | Equity Incentive Plan as Full-Value Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 5,002,143 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 608,781 | ||||
Restricted Stock | Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fungible unit to full value award conversion ratio | 2.19 | ||||
LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 290,522 | ||||
LTIP Units | Vesting on January 1, 2027 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 290,522 | ||||
Stock options | Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fungible unit to full value award conversion ratio | 1.0 |
Stock Compensation for ROIC - Status of Non-vested Restricted Stock Awards (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024
$ / shares
shares
| |
Restricted Stock | |
Shares | |
Beginning balance (in shares) | shares | 1,137,965 |
Vested (in shares) | shares | (684,840) |
Granted (in shares) | shares | 608,781 |
Forfeited (in shares) | shares | (8,500) |
Ending balance (in shares) | shares | 1,053,406 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 16.74 |
Vested (in dollars per share) | $ / shares | 16.07 |
Granted (in dollars per share) | $ / shares | 13.06 |
Forfeited (in dollars per share) | $ / shares | 13.96 |
Ending balance (in dollars per share) | $ / shares | $ 15.07 |
LTIP Units | |
Shares | |
Beginning balance (in shares) | shares | 245,972 |
Granted (in shares) | shares | 290,522 |
Ending balance (in shares) | shares | 536,494 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 14.97 |
Granted (in dollars per share) | $ / shares | 13.23 |
Ending balance (in dollars per share) | $ / shares | $ 14.03 |
Capital of the Operating Partnership (Details) - USD ($) $ / shares in Units, $ in Millions |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|||
Limited Partners' Capital Account [Line Items] | ||||||||
Partnership units (in shares) | 134,891,471 | |||||||
Common stock, shares outstanding (in shares) | 127,454,354 | 126,904,085 | ||||||
ROIC | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
ROIC ownership percentage in ROIP LP | 94.50% | |||||||
Common Stock | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Common stock, shares outstanding (in shares) | 127,454,354 | 127,457,854 | 126,904,085 | 126,003,795 | 125,024,887 | 124,538,811 | ||
OP Units | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Non-controlling interest redemption value | $ 91.6 | |||||||
Redemption value (usd per share) | $ 12.32 | |||||||
Limited Partner’s Capital | Retail Opportunity Investments Partnership L.P. | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Partnership units (in shares) | [1] | 7,437,117 | 7,437,117 | 7,437,117 | 7,437,117 | 8,447,117 | 8,447,117 | |
|
Fair Value of Financial Instruments - Narrative (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest rate cash flow hedge reclassified as non-cash decrease to interest expense in the next 12 months | $ 248 |
Weighted Average | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest rate | 7.80% |
Significant Unobservable Inputs (Level 3) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of note payable | $ 33,800 |
Senior Notes | Significant Unobservable Inputs (Level 3) | Senior Notes Due 2027 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of long term debt | 231,000 |
Senior Notes | Significant Unobservable Inputs (Level 3) | Senior Notes Due 2026 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of long term debt | 188,900 |
Senior Notes | Significant Other Observable Inputs (Level 2) | Senior Notes 2028 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of long term debt | 363,200 |
Senior Notes | Significant Other Observable Inputs (Level 2) | Senior Notes Due 2024 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair value of long term debt | $ 247,100 |
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - Interest rate swap - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative [Line Items] | ||
Derivative asset | $ 248 | $ 592 |
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | ||
Derivative [Line Items] | ||
Derivative asset | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative asset | 248 | 592 |
Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Derivative asset | $ 0 | $ 0 |
Fair Value of Financial Instruments - Balance Sheet Classification (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Interest rate swap | Derivatives designed as hedging instruments | Other assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | $ 248 | $ 592 |
Fair Value of Financial Instruments - Location of Gain or Loss on Interest Rate Derivatives Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Fair Value Disclosures [Abstract] | ||||
Unrealized swap derivative gain arising during the period | $ 73 | $ 1,657 | $ 416 | $ 1,668 |
Amount of gain reclassified from AOCI into interest | $ (377) | $ (251) | $ (760) | $ (267) |
Fair Value of Financial Instruments - Interest Rate Swaps (Details) - Derivatives designed as hedging instruments - Interest rate swap $ in Millions |
Jun. 30, 2024
USD ($)
|
---|---|
Wells Fargo | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 100 |
US Bank | |
Derivatives, Fair Value [Line Items] | |
Notional Amount | $ 50 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 28 Months Ended | ||
---|---|---|---|---|---|---|
Sep. 30, 2013 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Mar. 31, 2017 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||||
Lease liability | $ 16,168 | $ 16,168 | ||||
Lease liability [Extensible Enumeration] | Other liabilities | Other liabilities | ||||
Right-of-use asset | $ 14,400 | $ 14,400 | ||||
Right-of-use asset [Extensible Enumeration] | Other assets | Other assets | ||||
Operating lease, weighted average remaining lease term | 35 years | 35 years | ||||
Operating lease, weighted average discount rate (percent) | 5.20% | 5.20% | ||||
Rent expense | $ 427 | $ 502 | $ 854 | $ 903 | ||
Tax protection agreements, period (in years) | 12 years | 10 years |
Commitments and Contingencies - Future Minimum Annual Lease Payments Under Operating Leases (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Future Minimum Annual Lease Payments | |
Remaining 2024 | $ 682 |
2025 | 1,369 |
2026 | 1,389 |
2027 | 1,417 |
2028 | 1,446 |
Thereafter | 27,596 |
Total undiscounted future minimum lease payments | 33,899 |
Future minimum lease payments, discount | (17,731) |
Lease liability | $ 16,168 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Related Party | Lease agreements | Officer | General and administrative expense | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 25 | $ 24 | $ 49 | $ 47 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jul. 23, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Jul. 17, 2024 |
|
Subsequent Event [Line Items] | ||||||||
Dividend declared (usd per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.30 | $ 0.30 | ||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividend declared (usd per share) | $ 0.15 | |||||||
Subsequent Event | Oceanside, California | Marketplace Del Rio | ||||||||
Subsequent Event [Line Items] | ||||||||
Sales price of property sold | $ 56.6 |
O6)'O*EJ)8&EGY
MBEQ0-%RZM!V%2B"*Z:FP@_J94-J6V@]6^Z?J^\7V"L;K])C5*5OBE&WNBJT_
M(DIR4[ODMF_O%!RAFML[0*'M'<' ]@YA@]L[55J;VK7V_NEQT9N!K_*RKE];
M)Z)3W>V4+7'*-G?%UA\>I;NI77=_*BJ1YMD? 0VM$:L5LB\Z4JE;(
M,CU)!M&\^S?P K*@V=5XL=W(RL>>!V()%J2$2!(7/H%"<:!K4*OP^!YH(0&/76'.X
MM_H2PZPT\:>JJ+(UW8,^* 8V4>];B$')8?VX5A_9@;C'"N(V***D0-"BDY_H
MU%R0]P.0-N:3Q0!2=B%>A-AALQ6O%N7'+)>J0[PSB0 PEZYP*0EW\?T2S%51
MDJ))Q<-!CL)SVSBC//U\(M)*O"[L-X5E&GA\X[4;"Z%PS^H)/:D*55#>-YIG
M49\MJ^]M$/5-;<2Z9:@I(Q+1+HZ C2U)3FN!CO9@_'8!WLP=:UMR^A>T3IYB
M$C(#]45:(B/_NLXTALPM''[&CD ); 8?*9JX"8 6.<(9NBI9%VS DRS>\N"
M> U0HD?0'#ERD->)N)'+3-'1^ C1W_OQ^.XX60HWZ'+F$44*@D151,H5%"LM
M?B*E5B=:,*"7:F0UK%1@.KHC?D*-*F1H.7D /[%_WM(KC,RVP9"1M1BFSNN,
M/5V(>2A45JU#G R[V2W[2A(1W&&R@N*>^07&/;/3I_)8:Y.S3^U]1: :GS_Z
M\;0'AC>8<*5\8BKYM)=02\P $ EPQ*WX,&&[@&Q[%D&Q?$\& XUA@-7E\UAA
MU@J@UV24V++*#J+3H*C%KN5#/2I*C3,L^S*BEK37PI)1CJ@HA*7<9P5QM:$<
M*#_90?SL7)$PK_82^CX1_D!$XR,9$@A6FYP%]XH> 7>M$R?&X3
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MGGS')5U8Z" 67BG/T-]](@8]8$F(<8[Q:^PQQG-FQ[C]QV3/B=U )[#?0PE
ME\JWCQGU9B]]3T% 0)#*,!)%&2'N ;]OJ&GF_X"E\K#'Y>+(S5= 5^O:2Q
MI4A?IG#/XLS4+,=90/?>H%YC,#\^BK/H_$"#:=]@>HC]_P=P$/YR<\\XX=XM
M Y=@2X0K5=5,;H^/)DD\/C=@2E777*X@1VE1&^ &A,,58!6LF>:J,6 ]H8&&
M3ED#.8)FUH%$6\&6S$)C&B;$%E;:U=XA-$K<,$$8]P@-,%G BN:TSZVU6O,"
M@ ]NKB$YF2J\P,;.A%NV]7L5,&A@E:7RO1
M5'@"UXUM-+H'Q*NFZ@J0P 72.$ VE%V@PJE,/R-D?S^;>7]\+TVT$(/*I78J02AV" I$"#02A&H3BTMX;LS>
MBY>T]T8;^ R_5C%K_Z/B2!FWC.*R"NJ!<+%4L@'#6_TH&74*%LN,0$&S#^G*MS\'QCN[ZIO"Q)1MC8*!
MBLA'.*@.
K(!Z ?R>C1J[<=FDKKOT#VD]>+;;$#:$198#,".FQ("
TJ!5DI%MZ!T#XS'X\/^:#3"
M9&\$Q,[#GA8B' S!Q03*LS7YE4$- 0.[T"VRT*
TC@K.3P;[]CO1/2@UW9B2I_84M>9Q*C.5.]MM3Y:
M2#-76$<0O3-0/F(M.#"M81XDQP,P/HFPU2PI1Z?U12/9*YCGX0A9H^)GBYH[
MW&]L;8MB+_LK/H:A.HE*N+GJCJLJOVIZS!AE"'B99GYN5RR,