4th QUARTER 2017
SUPPLEMENTAL INFORMATION
Retail Opportunity Investments Corporation
8905 Towne Centre Drive Suite 108
San Diego, CA 92122
www.roireit.net
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Our Company
Retail Opportunity Investments Corp. (Nasdaq: ROIC), is a fully integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition,
ownership and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast. As of December
31, 2017, ROIC owned 91 shopping centers encompassing approximately 10.5 million square feet. ROIC is the largest publicly-traded, grocery-anchored
shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt
ratings from Moody's Investor Services and S&P Global Ratings. Additional information is available at www.roireit.net.
Supplemental Information
The enclosed information should be read in conjunction with ROIC's filings with the Securities and Exchange Commission, including but not limited to, its
Form 10-Qs filed quarterly and Form 10-Ks filed annually. Additionally, the enclosed information does not purport to disclose all items under generally
accepted accounting principles (“GAAP”).
Non-GAAP Disclosures
Funds from operations (“FFO”), is a widely-recognized non-GAAP financial measure for REITs that the Company believes when considered with financial
statements presented in accordance with GAAP, provides additional and useful means to assess its financial performance. FFO is frequently used by securities
analysts, investors and other interested parties to evaluate the performance of REITs, most of which present FFO along with net income as calculated in
accordance with GAAP. The Company computes FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate
Investment Trusts (“NAREIT”), which defines FFO as net income attributable to common stockholders (determined in accordance with GAAP) excluding
gains or losses from debt restructuring, sales of depreciable property and impairments, plus real estate related depreciation and amortization, and after
adjustments for partnerships and unconsolidated joint ventures.
The Company uses cash net operating income (“NOI”) internally to evaluate and compare the operating performance of the Company’s properties. The
Company believes cash NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects
only those income and expense items that are incurred at the property level, and when compared across periods, can be used to determine trends in earnings of
the Company’s properties as this measure is not affected by the non-cash revenue and expense recognition items, the cost of the Company’s funding, the impact
of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or
other gains and losses that relate to the Company’s ownership of properties. The Company believes the exclusion of these items from operating income is
useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating the Company’s properties as well as trends
in occupancy rates, rental rates and operating costs. Cash NOI is a measure of the operating performance of the Company’s properties but does not measure the
Company’s performance as a whole and is therefore not a substitute for net income or operating income as computed in accordance with GAAP. The Company
defines cash NOI as operating revenues (base rent and recoveries from tenants), less property and related expenses (property operating expenses and property
taxes), adjusted for non-cash revenue and operating expense items such as straight-line rent and amortization of lease intangibles, debt-related expenses and
other adjustments. Cash NOI also excludes general and administrative expenses, depreciation and amortization, acquisition transaction costs, other expense,
interest expense, gains and losses from property acquisitions and dispositions, extraordinary items, tenant improvements and leasing commissions. Other
REITs may use different methodologies for calculating cash NOI, and accordingly, the Company’s cash NOI may not be comparable to other REITs.
Supplemental Disclosure
Quarter Ended December 31, 2017Overview
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Page
Balance Sheets……..……………………………………………………………..………………………………………………… 4
Income Statements .…………………………………………………………………………………..……..…………...………… 5
Funds From Operations …………………………………………………………………………………………………………… 6
Summary of Debt Outstanding .……………………………………………..…………………………………………………… 7
Selected Financial Analysis .……………………………………………………………………………………………………… 9
2017 Property Acquisitions ………………………….………………………...………………………………………………… 10
Property Portfolio ………………………………………………….……………………………………………………………… 11
Same-Center Cash Net Operating Income Analysis……………………………………………………………………………… 14
Top Ten Tenants ………………….…………….………………….……………………………………………………………… 15
Lease Expiration Schedule ……………………..………………………..…….………………………………………………… 16
Leasing Summary ………………………………………………………..…................................................................................ 17
Same-Space Comparative Leasing Summary ………………………………………………………..…...................................... 18
Investor Information …………………………………………………………..…………………………………………………… 19
Financial Data
Portfolio Data
Supplemental Disclosure
Quarter Ended December 31, 2017Table of Contents
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(dollars in thousands, except par values and share amounts)
12/31/17 12/31/16
ASSETS:
Real Estate Investments:
Land 878,797$ 766,199$
Building and improvements 2,230,600 1,920,819
Less: accumulated depreciation (260,115) (193,021)
Real Estate Investments, net 2,849,282 2,493,997
Cash and cash equivalents 11,553 13,125
Restricted cash 5,412 125
Tenant and other receivables, net 43,257 35,820
Deposits 500 -
Acquired lease intangible assets, net 82,778 79,205
Prepaid expenses 2,853 3,317
Deferred charges, net 37,167 34,753
Other assets 6,396 2,627
TOTAL ASSETS 3,039,198$ 2,662,969$
LIABILITIES:
Term loan 298,816$ 299,191$
Credit facility 140,329 95,654
Senior Notes Due 2027 248,751 -
Senior Notes Due 2026 199,752 199,727
Senior Notes Due 2024 245,887 245,354
Senior Notes Due 2023 245,696 245,051
Mortgage notes payable 107,915 71,303
Acquired lease intangible liabilities, net 178,984 154,958
Accounts payable and accrued expenses 18,638 18,294
Tenants' security deposits 6,771 5,950
Other liabilities 18,018 11,922
TOTAL LIABILITIES 1,709,557 1,347,404
EQUITY:
Common stock, $.0001 par value 500,000,000 shares authorized 11 11
Additional paid-in capital 1,412,590 1,357,910
Dividends in excess of earnings (210,490) (165,951)
Accumulated other comprehensive income (loss) 1,856 (3,729)
Total Retail Opportunity Investments Corp. stockholders' equity 1,203,967 1,188,241
Non-controlling interests 125,674 127,324
TOTAL EQUITY 1,329,641 1,315,565
TOTAL LIABILITIES AND EQUITY 3,039,198$ 2,662,969$
The Company's Form 10-Q for the quarters ended September 30, 2017, June 30, 2017 and March 31, 2017, and Form 10-K for the years ended December 31, 2017 and 2016 should be read in conjunction with the above information.
Supplemental Disclosure
Quarter Ended December 31, 2017Balance Sheets
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(in thousands, except per share amounts)
3 Months Ended (Unaudited) 12 Months Ended
12/31/17 12/31/16 12/31/17 12/31/16
REVENUES:
Base rents 55,686$ 48,401$ 210,564$ 183,330$
Recoveries from tenants 15,718 13,812 58,818 51,454
Other income 1,350 857 3,878 2,405
TOTAL REVENUES 72,754 63,070 273,260 237,189
OPERATING EXPENSES:
Property operating 10,521$ 8,440$ 39,151$ 32,201$
Property taxes 7,862 6,756 29,663 25,058
Depreciation and amortization 24,926 22,503 96,256 88,359
General and administrative expenses 3,312 3,065 14,103 13,120
Acquisition transaction costs - 211 4 824
Other expense 103 95 418 456
TOTAL OPERATING EXPENSES 46,724 41,070 179,595 160,018
OPERATING INCOME 26,030 22,000 93,665 77,171
NON-OPERATING EXPENSES:
Interest expense and other finance expenses (13,917) (11,348) (50,977) (40,741)
TOTAL NON-OPERATING EXPENSES (13,917) (11,348) (50,977) (40,741)
NET INCOME 12,113$ 10,652$ 42,688$ 36,430$
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS (1,264) (1,031) (4,211) (3,676)
NET INCOME ATTRIBUTABLE TO RETAIL OPPORTUNITY INVESTMENTS CORP. 10,849$ 9,621$ 38,477$ 32,754$
NET INCOME PER COMMON SHARE - BASIC 0.10$ 0.09$ 0.35$ 0.31$
NET INCOME PER COMMON SHARE - DILUTED 0.10$ 0.09$ 0.35$ 0.31$
Weighted average common shares outstanding - basic 109,834 108,872 109,400 104,072
Weighted average common shares outstanding - diluted 123,412 120,791 121,744 116,040
The Company's Form 10-Q for the quarters ended September 30, 2017, June 30, 2017 and March 31, 2017, and Form 10-K for the years ended December 31, 2017 and 2016 should be read in conjunction with the above information.
Supplemental Disclosure
Quarter Ended December 31, 2017Income Statements
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(in thousands, except per share amounts)
3 Months Ended (Unaudited) 12 Months Ended
12/31/17 12/31/16 12/31/17 12/31/16
Funds from Operations (FFO) (1) :
Net income attributable to ROIC common stockholders 10,849$ 9,621$ 38,477$ 32,754$
Plus:
Depreciation and amortization expense 24,926 22,503 96,256 88,359
FUNDS FROM OPERATIONS - BASIC 35,775$ 32,124$ 134,733$ 121,113$
Net income attributable to non-controlling interests 1,264 1,031 4,211 3,676
FUNDS FROM OPERATIONS - DILUTED 37,039$ 33,155$ 138,944$ 124,789$
FUNDS FROM OPERATIONS PER SHARE - BASIC 0.33$ 0.30$ 1.23$ 1.16$
FUNDS FROM OPERATIONS PER SHARE - DILUTED 0.30$ 0.27$ 1.14$ 1.08$
Weighted average common shares outstanding - basic 109,834 108,872 109,400 104,072
Weighted average common shares outstanding - diluted 123,412 120,791 121,744 116,040
Common dividends per share 0.1875$ 0.1800$ 0.7500$ 0.7200$
FFO Payout Ratio 62.5% 66.7% 65.8% 66.7%
The above does not purport to disclose all items required under GAAP.
(1) - Funds from operations ("FFO"), is a widely-recognized non GAAP financial measure for REITs that ROIC believes, when considered with financial statements determined in accordance with GAAP, provides additional and useful means to assess its financial
performance. FFO is frequently used by securities analysts, investors and other interested parties to evaluate the performance of REITs. ROIC computes FFO in accordance with the "White Paper" on FFO published by the National Association of Real Estate
Investment Trusts ("NAREIT"), which defines FFO as net income attributable to common shareholders (determined in accordance with GAAP) excluding gains or losses from debt restructuring and sales of property, plus real estate related depreciation and
amortization, and after adjustments for partnerships and unconsolidated joint ventures.
Supplemental Disclosure
Quarter Ended December 31, 2017Funds From Operations
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(unaudited, dollars in thousands)
Outstanding GAAP Maturity Percent of
Balance Interest Rate Interest Rate Date Total Indebtedness
Fixed Rate Debt
Mortgage Debt:
Santa Teresa Village 10,138$ 6.20% 3.26% 02/01/18 0.7%
Magnolia Shopping Center 8,951 5.50% 3.86% 10/01/18 0.6%
Casitas Plaza Shopping Center 7,307 5.32% 4.20% 06/01/22 0.5%
Riverstone Marketplace 18,424 4.96% 3.80% 07/01/22 1.2%
Fullerton Crossroads 26,000 4.73% 3.82% 04/06/24 1.7%
Diamond Hills Plaza 35,500 3.55% 3.61% 10/01/25 2.4%
Net unamortized premiums/deferred financing charges 1,595
Total Mortgage Debt 107,915$ 4.6% 3.7% 5.3 Years (WA) 7.1%
Unsecured Senior Notes:
Senior Notes Due 2023 250,000$ 5.00% 5.21% 12/15/23 16.7%
Net unamortized discount/deferred financing charges (4,304)
Senior Notes Due 2023, net 245,696
Senior Notes Due 2024 250,000 4.00% 4.21% 12/15/24 16.7%
Net unamortized discount/deferred financing charges (4,113)
Senior Notes Due 2024, net 245,887
Senior Notes Due 2026 200,000 3.95% 3.95% 09/22/26 13.3%
Net unamortized deferred financing charges (248)
Senior Notes Due 2026, net 199,752
Senior Notes Due 2027 250,000 4.19% 4.19% 12/15/27 16.7%
Net unamortized deferred financing charges (1,249)
Senior Notes Due 2027, net 248,751
Total Unsecured Senior Notes 940,086$ 4.30% 4.41% 7.9 Years (WA) 63.4%
Interest rate swaps 100,000$ 1.96% 1.96% 1/31/2019 6.7%
Interest rate swaps 200,000 2.84% 2.84% 8/31/2022 13.3%
Total Fixed Rate Debt 1,348,001$ 3.94% 3.95% 7.6 Years (WA) 90.5%
Variable Rate Debt
Credit Facility 143,500$ 2.54% 2.54% 09/08/21 9.5%
Net unamortized deferred financing charges (3,171)
Credit Facility, net 140,329
Term Loan 300,000 2.67% 2.67% 09/08/22 20.0%
Net unamortized deferred financing charges (1,184)
Term Loan, net 298,816
Interest rate swaps (300,000) (20.0)%
Total Variable Rate Debt 139,145$ 2.63% 2.63% 4.4 Years (WA) 9.5%
TOTAL DEBT 1,487,146$ 3.16% 4.35% 6.6 Years (WA) 100.0%
Net unamortized premiums on mortgages (1,921)
Net unamortized discount on notes 5,315
Net unamortized deferred financing charges 9,280
Total Principal Debt 1,499,820$
(1) Does not include extension options available to ROIC.
Supplemental Disclosure
Quarter Ended December 31, 2017Summary of Debt Outstanding
(1)
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(unaudited, dollars in thousands)
Summary of Principal Maturities
Senior Total Principal Percentage of
Credit Facility Term Loan Unsecured Notes Payments Debt Maturing
18,900$ -$ -$ -$ 19,612$ 1.3%
- - - - 550 0.1%
- - - - 577 0.1%
- 143,500 - - 144,217 9.6%
23,130 - 300,000 - 324,133 21.6%
- - - 250,000 250,686 16.7%
26,000 - - 250,000 276,708 18.4%
32,787 - - - 33,337 2.2%
- - - 200,000 200,000 13.3%
- - - 250,000 250,000 16.7%
100,817$ 143,500$ 300,000$ 950,000$ 1,499,820$ 100.0%
Summary of Unencumbered/Encumbered Properties
Percentage
GLA of GLA
Unencumbered properties 9,682,881 92.4%
Encumbered properties 793,137 7.6%
10,476,018 100.0%
Summary of Unsecured Debt/Secured Debt
Percentage of Total
Principal Debt
Unsecured principal debt 1,393,500$ 92.9%
Secured principal debt 106,320 7.1%
Total Principal Debt 1,499,820$ 100.0%
(1) Does not include extension options available to ROIC.
Amount
2018 712$
Mortgage Principal
2020 577
2021 717
2022 1,003
2023 686
2024 708
Year Payments
2019 550
Mortgage Principal
due at Maturity
91
2025 550
2026 -
2027 -
5,503$
Number of
Properties
85
6
Supplemental Disclosure
Quarter Ended December 31, 2017Summary of Debt Outstanding, continued
(1)
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(unaudited, in thousands, except per share amounts)
12/31/17 09/30/17 06/30/17 03/31/17 12/31/16
Debt coverage ratios, three months ending:
Interest coverage ratio (EBITDA/interest expense) 3.7x 3.7x 3.7x 4.0x 4.0x
Debt service coverage (EBITDA/(interest expense + scheduled principal payments)) 3.6x 3.7x 3.6x 3.9x 3.9x
Net principal debt (Total principal debt less cash & equivalents)/Annualized EBITDA 7.3x 7.1x 7.2x 6.7x 6.4x
Debt/equity ratios, at period end:
Total principal debt/total market capitalization 37.8% 37.5% 36.7% 33.1% 31.4%
Total principal debt/total equity market capitalization 60.8% 60.0% 57.9% 49.4% 45.9%
Total principal debt/total book assets 49.3% 48.2% 47.5% 45.8% 43.9%
Total principal debt/undepreciated book value 45.5% 44.5% 44.0% 42.5% 40.9%
Secured principal debt/undepreciated book value 3.2% 2.0% 2.0% 2.4% 2.4%
Market capitalization calculations, at period end:
Common shares outstanding 111,886 109,267 109,267 109,263 108,891
Operating partnership units (OP units) outstanding 11,679 11,679 11,679 11,686 11,668
Common stock price per share 19.95$ 19.01$ 19.19$ 21.03$ 21.13$
Total equity market capitalization 2,465,116$ 2,299,192$ 2,320,960$ 2,543,568$ 2,547,411$
Total principal debt 1,499,820 1,379,042 1,343,185 1,257,494 1,168,683
TOTAL MARKET CAPITALIZATION 3,964,936$ 3,678,234$ 3,664,145$ 3,801,062$ 3,716,094$
Unsecured Senior Notes Financial Covenants: (1)
Total debt to total assets not to exceed 60% 47.4% 46.3% 45.9% 44.3% 42.7%
Total secured debt to total assets not to exceed 40% 3.4% 2.1% 2.2% 2.5% 2.6%
Total unencumbered assets to total unsecured debt not to be less than 150% 208.7% 214.5% 216.6% 225.4% 234.3%
Consolidated income available for debt service to interest expense not to be less than 1.5:1 3.7x 3.8x 3.9x 4.0x 4.1x
(1) Calculated in accordance with GAAP pursuant to underlying bond indentures.
Supplemental Disclosure
Quarter Ended December 31, 2017Selected Financial Analysis
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(dollars in thousands)
Date Owned
Shopping Centers Location Acquired Purchase Amount GLA
1Q 2017
PCC Community Markets Plaza Edmonds, WA 01/25/17 8,600$ 34,459
The Terraces Rancho Palos Verdes, CA 03/17/17 54,100 172,922
Santa Rosa Southside Shopping Center Santa Rosa, CA 03/24/17 28,810 85,535
Total 1Q 2017 91,510$ 292,916
2Q 2017
Division Center Portland, OR 04/05/17 33,000$ 121,904
Highland Hill Shopping Center Tacoma, WA 05/09/17 47,350 163,926
Total 2Q 2017 80,350$ 285,830
3Q 2017
3Q 2017
Monta Loma Plaza Mountain View, CA 09/19/17 30,000$ 48,078
4Q 2017
Fullerton Crossroads Fullerton, CA 10/11/17 64,000$ 219,785
Riverstone Marketplace Vancouver, WA 10/11/17 32,500 95,774
North Lynnwood Shopping Center Lynnwood , WA 10/19/17 13,250 63,606
The Village at Nellie Gail Ranch Laguna Hills, CA 11/30/17 46,000 88,486
Total 4Q 2017 155,750$ 467,651
Total 2017 Acquisitions 357,610$ 1,094,475
Supplemental Disclosure
Quarter Ended December 31, 20172017 Property Acquisitions
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(dollars in thousands)
Date Owned %
Southern California City State Acquired GLA Leased ABR (1) Major Tenants
Los Angeles metro area
Paramount Plaza * Paramount CA 12/22/09 95,062 98.0% 1,765$ Grocery Outlet Supermarket, 99¢ Only Stores, Rite Aid Pharmacy
Claremont Promenade * Claremont CA 09/23/10 92,297 97.2% 2,368 Super King Supermarket
Gateway Village * Chino Hills CA 12/17/10 96,959 96.2% 2,824 Sprouts Market
Seabridge Marketplace * Oxnard CA 05/31/12 95,830 99.5% 1,797 Safeway (Vons) Supermarket
Glendora Shopping Center * Glendora CA 08/01/12 106,535 95.8% 1,276 Albertson's Supermarket
Redondo Beach Plaza * Redondo Beach CA 12/28/12 110,509 100.0% 2,180 Safeway (Vons) Supermarket, Petco
Diamond Bar Town Center * Diamond Bar CA 02/01/13 100,342 100.0% 2,280 Walmart Neighborhood Market, Crunch Fitness
Diamond Hills Plaza * Diamond Bar CA 04/22/13 139,505 97.1% 3,482 H-Mart Supermarket, Rite Aid Pharmacy
Plaza de la Cañada * La Cañada Flintridge CA 12/13/13 100,408 95.9% 2,382 Gelson's Supermarket, TJ Maxx, Rite Aid Pharmacy
Fallbrook Shopping Center * Los Angeles CA 06/13/14 755,299 99.6% 12,443 Sprouts Market, Trader Joe's, Kroger (Ralph's) Supermarket(2), TJ Maxx
Moorpark Town Center * Moorpark CA 12/03/14 133,547 98.3% 2,045 Kroger (Ralph's) Supermarket, CVS Pharmacy
Ontario Plaza * Ontario CA 01/06/15 150,149 99.1% 2,161 El Super Supermarket, Rite Aid Pharmacy
Park Oaks Shopping Center * Thousand Oaks CA 01/06/15 110,092 96.2% 2,684 Safeway (Vons) Supermarket, Dollar Tree
Warner Plaza * Woodland Hills CA 12/31/15 110,918 96.1% 4,337 Sprouts Market, Kroger (Ralph's) Supermarket (2), Rite Aid Pharmacy (2)
Magnolia Shopping Center * Santa Barbara CA 03/10/16 116,360 91.5% 2,094 Kroger (Ralph's) Supermarket
Casitas Plaza Shopping Center * Carpinteria CA 03/10/16 97,407 98.6% 1,494 Albertson's Supermarket, CVS Pharmacy
Bouquet Center * Santa Clarita CA 04/28/16 148,903 97.8% 3,311 Safeway (Vons) Supermarket, CVS Pharmacy, Ross Dress For Less
North Ranch Shopping Center * Westlake Village CA 06/01/16 146,625 90.0% 4,558 Kroger (Ralph's) Supermarket, Trader Joe's, Rite Aid Pharmacy, Petco
The Knolls Long Beach CA 10/03/16 52,021 100.0% 1,411 Trader Joe's, Pet Food Express
The Terraces Rancho Palos Verdes CA 03/17/17 172,922 90.8% 3,241 Trader Joe's, Marshall's, LA Fitness
Los Angeles metro area total 2,931,690 97.2% 60,133$
Orange County metro area
Santa Ana Downtown Plaza * Santa Ana CA 01/26/10 105,536 94.1% 2,065$ Kroger (Food 4 Less) Supermarket, Marshall's
Sycamore Creek * Corona CA 09/30/10 74,198 100.0% 1,746 Safeway (Vons) Supermarket, CVS Pharmacy (2)
Desert Springs Marketplace * Palm Desert CA 02/17/11 113,718 96.3% 2,734 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy
Cypress Center West * Cypress CA 12/04/12 107,246 96.5% 1,902 Kroger (Ralph's) Supermarket, Rite Aid Pharmacy
Harbor Place Center * Garden Grove CA 12/28/12 119,821 100.0% 1,628 AA Supermarket, Ross Dress For Less
5 Points Plaza * Huntington Beach CA 09/27/13 160,536 99.7% 4,316 Trader Joe's, Pier 1
Peninsula Marketplace * Huntington Beach CA 10/15/13 95,416 100.0% 2,474 Kroger (Ralph's) Supermarket, Planet Fitness
Fullerton Crossroads Fullerton CA 10/11/17 219,785 99.4% 3,374 Kroger (Ralph's) Supermarket, Kohl's, Jo-Ann Fabrics and Crafts
The Village at Nellie Gail Ranch Laguna Hills CA 11/30/17 88,486 98.5% 2,822 Smart & Final Extra Supermarket
Orange Country metro area total 1,084,742 98.4% 23,061$
San Diego metro area
Marketplace Del Rio * Oceanside CA 01/03/11 177,195 88.4% 3,119$ Stater Brothers Supermarket, Walgreens
Renaissance Towne Centre * San Diego CA 08/03/11 53,074 100.0% 2,516 CVS Pharmacy
Euclid Plaza * San Diego CA 03/29/12 77,044 96.8% 1,399 Vallarta Supermarket, Walgreens
Bay Plaza * San Diego CA 10/05/12 73,324 97.9% 1,879 Seafood City Supermarket
Bernardo Heights Plaza * Rancho Bernardo CA 02/06/13 37,729 96.3% 892 Sprouts Market
Hawthorne Crossings * San Diego CA 06/27/13 141,288 100.0% 3,264 Mitsuwa Supermarket, Ross Dress For Less, Staples
Creekside Plaza * Poway CA 02/28/14 128,852 98.9% 2,750 Stater Brothers Supermarket, AMC Theatres
San Diego metro area total 688,506 96.0% 15,819$
Southern California Totals 4,704,938 97.3% 99,013$
(1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end.
(2) These retailers are not tenants of ROIC.
*Denotes properties in same center pool for 4Q 2017.
Supplemental Disclosure
Quarter Ended December 31, 2017Property Portfolio
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(dollars in thousands)
Date Owned %
Northern California City State Acquired GLA Leased ABR (1) Major Tenants
San Francisco metro area
Pleasant Hill Marketplace * Pleasant Hill CA 04/08/10 69,715 100.0% 1,471$ Total Wine and More, Buy Buy Baby, Basset Furniture
Pinole Vista Shopping Center * Pinole CA 01/06/11 223,369 96.9% 2,960 SaveMart (Lucky) Supermarket, Planet Fitness, Kmart
Country Club Gate Center * Pacific Grove CA 07/08/11 109,331 94.9% 2,014 SaveMart (Lucky) Supermarket, Rite Aid Pharmacy
Marlin Cove Shopping Center * Foster City CA 05/04/12 73,943 95.5% 2,163 99 Ranch Market
The Village at Novato * Novato CA 07/24/12 20,081 100.0% 551 Trader Joe's, Pharmaca Pharmacy
Santa Teresa Village * San Jose CA 11/08/12 124,306 93.2% 2,495 Raleys (Nob Hill) Supermarket, Dollar Tree
Granada Shopping Center * Livermore CA 06/27/13 69,325 100.0% 1,304 SaveMart (Lucky) Supermarket
Country Club Village * San Ramon CA 11/26/13 111,093 99.0% 2,084 Walmart Neighborhood Market, CVS Pharmacy
North Park Plaza * San Jose CA 04/30/14 76,697 100.0% 2,301 H-Mart Supermarket
Winston Manor * South San Francisco CA 01/07/15 49,852 100.0% 1,446 Grocery Outlet Supermarket
Jackson Square * Hayward CA 07/01/15 114,220 100.0% 2,158 Safeway Supermarket, CVS Pharmacy, 24 Hour Fitness
Gateway Centre * San Ramon CA 09/01/15 112,553 98.6% 2,580 SaveMart (Lucky) Supermarket, Walgreens
Iron Horse Plaza * Danville CA 12/04/15 61,860 96.3% 2,073 Lunardi's Market
Monterey Center * Monterey CA 07/14/16 25,798 100.0% 1,076 Trader Joe's, Pharmaca Pharmacy
Santa Rosa Southside Shopping Center Santa Rosa CA 03/24/17 88,535 100.0% 1,672 REI, Cost Plus World Market
Monta Loma Plaza Mountain View CA 09/19/17 48,078 100.0% 1,353 Safeway Supermarket
San Francisco metro area total 1,378,756 97.9% 29,701$
Sacramento metro area
Norwood Shopping Center * Sacramento CA 04/06/10 85,693 100.0% 1,381$ Viva Supermarket, Rite Aid Pharmacy, Citi Trends
Mills Shopping Center * Rancho Cordova CA 02/17/11 235,314 86.4% 2,426 Viva Supermarket, Ross Dress For Less (dd's Discounts), Dollar Tree
Morada Ranch * Stockton CA 05/16/11 101,842 95.1% 2,198 Raleys Supermarket
Round Hill Square Shopping Center * Zephyr Cove NV 09/21/11 115,984 94.1% 1,877 Safeway Supermarket, Dollar Tree, US Postal Service
Green Valley Station * Cameron Park CA 06/15/12 52,245 74.4% 834 CVS Pharmacy
Sacramento metro area total 591,078 90.3% 8,716$
Northern California Totals 1,969,834 95.6% 38,417$
(1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end.
*Denotes properties in same center pool for 4Q 2017.
Supplemental Disclosure
Quarter Ended December 31, 2017Property Portfolio, continued
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(dollars in thousands)
Date Owned %
Pacific Northwest City State Acquired GLA Leased ABR (1) Major Tenants
Seattle metro area
Meridian Valley Plaza * Kent WA 02/01/10 51,597 96.9% 620$ Kroger (QFC) Supermarket
The Market at Lake Stevens * Lake Stevens WA 03/11/10 74,130 100.0% 1,461 Albertson's (Haggen) Supermarket
Canyon Park Shopping Center * Bothell WA 07/29/11 123,592 98.4% 2,340 PCC Community Markets, Rite Aid Pharmacy, Petco
Hawks Prairie Shopping Center * Lacey WA 09/09/11 157,529 100.0% 1,823 Safeway Supermarket, Dollar Tree, Big Lots
The Kress Building * Seattle WA 09/30/11 74,616 100.0% 1,814 IGA Supermarket, TJMaxx
Gateway Shopping Center * Marysville WA 02/16/12 104,298 90.4% 2,391 WinCo Foods
(2), Rite Aid Pharmacy, Ross Dress For Less
Aurora Square * Shoreline WA 05/02/12 38,030 100.0% 342 Central Supermarket
Canyon Crossing * Puyallup WA 04/15/13 120,508 96.3% 2,511 Safeway Supermarket
Crossroads Shopping Center * Bellevue WA 2010/2013 463,541 100.0% 10,385 Kroger (QFC) Supermarket, Bed Bath & Beyond, Dick's Sporting Goods
Aurora Square II * Shoreline WA 05/22/14 70,720 97.5% 1,284 Marshall's, Pier 1 Imports
Bellevue Marketplace * Bellevue WA 12/10/15 113,758 100.0% 3,087 Asian Family Market
Four Corner Square * Maple Valley WA 12/21/15 119,560 100.0% 2,534 Grocery Outlet Supermarket, Walgreens, Johnsons Home & Garden
Bridle Trails Shopping Center Kirkland WA 10/17/16 105,486 100.0% 2,052 Grocery Outlet Supermarket, Bartell Drugs, Dollar Tree
PCC Community Markets Plaza Edmonds WA 01/25/17 34,459 100.0% 646 PCC Community Markets
Highland Hill Shopping Center Tacoma WA 05/09/17 163,926 95.9% 2,656 Safeway Supermarket, LA Fitness, Dollar Tree, Petco
North Lynnwood Shopping Center Lynnwood WA 10/19/17 63,606 91.3% 801 Kroger (QFC) Supermarket
Seattle metro area total 1,879,356 98.3% 36,747$
Portland metro area
Vancouver Market Center * Vancouver WA 06/17/10 118,385 97.0% 1,365$ Skyzone
Happy Valley Town Center * Happy Valley OR 07/14/10 138,662 100.0% 3,514 New Seasons Supermarket
Wilsonville Old Town Square * Wilsonville OR 2010/2012 49,937 100.0% 1,819 Kroger (Fred Meyer) Supermarket
(2)
Cascade Summit Town Square * West Linn OR 08/20/10 94,934 97.3% 1,637 Safeway Supermarket
Heritage Market Center * Vancouver WA 09/23/10 107,468 98.3% 1,718 Safeway Supermarket, Dollar Tree
Division Crossing * Portland OR 12/22/10 103,561 98.8% 1,197 Rite Aid Pharmacy, Ross Dress For Less, Ace Hardware
Halsey Crossing * Gresham OR 12/22/10 99,428 96.3% 1,283 24 Hour Fitness, Dollar Tree
Hillsboro Market Center * Hillsboro OR 11/23/11 156,021 100.0% 2,498 Albertson's Supermarket, Dollar Tree, Ace Hardware
Robinwood Shopping Center * West Linn OR 08/23/13 70,831 100.0% 1,050 Walmart Neighborhood Market
Tigard Marketplace * Tigard OR 02/18/14 136,889 99.3% 1,955 H-Mart Supermarket, Bi-Mart Pharmacy
Wilsonville Town Center * Wilsonville OR 12/11/14 167,829 97.9% 2,675 Safeway Supermarket, Rite Aid Pharmacy, Dollar Tree
Tigard Promenade * Tigard OR 07/28/15 88,043 100.0% 1,464 Safeway Supermarket
Sunnyside Village Square * Happy Valley OR 07/28/15 92,278 100.0% 1,552 Grocery Outlet Supermarket, 24 Hour Fitness, Ace Hardware
Johnson Creek Center * Happy Valley OR 11/09/15 108,588 100.0% 2,208 Trader Joe's, Walgreens, Sportsman's Warehouse
Rose City Center * Portland OR 09/15/16 60,680 100.0% 675 Safeway Supermarket
Division Center Portland OR 04/05/17 121,904 100.0% 1,938 Grocery Outlet Supermarket, Rite Aid Pharmacy, Petco
Riverstone Marketplace Vancouver WA 10/11/17 95,774 98.5% 2,109 Kroger (QFC) Supermarket
Portland metro area total 1,811,212 99.0% 30,657$
Pacific Northwest Totals 3,690,568 98.6% 67,404$
TOTAL SHOPPING CENTERS 10,365,340 97.5% 204,834$
(1) ABR is equal to annualized base rent on a cash basis for all leases in-place at period end.
(2) These retailers are not tenants of ROIC.
Note: Property Portfolio excludes one shopping center that is currently under contract to be sold (slated for new multi-family development).
*Denotes properties in same center pool for 4Q 2017.
Supplemental Disclosure
Quarter Ended December 31, 2017Property Portfolio, continued
- 14 -
(unaudited, dollars in thousands)
Three Months Ended 12 Months Ended
12/31/17 12/31/16 $ Change % Change 12/31/17 12/31/16 $ Change % Change
Number of shopping centers included in same-center analysis (1) 78 78 72 72
Same-center occupancy 97.5% 97.6% (0.1)% 97.7% 97.4% 0.3%
REVENUES:
Base rents 43,457$ 42,119$ 1,338$ 3.2% 158,816$ 153,157$ 5,659$ 3.7%
Percentage rent 1,024 1,019 5 0.5% 1,265 1,423 (158) (11.1)%
Recoveries from tenants 13,844 13,528 316 2.3% 50,146 48,013 2,133 4.4%
Other property income 1,279 651 628 96.5% 3,670 2,037 1,633 80.2%
TOTAL REVENUES 59,604 57,317 2,287 4.0% 213,897 204,630 9,267 4.5%
OPERATING EXPENSES:
Property operating expenses 9,298$ 8,668$ 630$ 7.3% 33,563$ 30,891$ 2,672$ 8.6%
Bad debt expense 436 142 294 207.0% 1,542 1,089 453 41.6%
Property taxes 6,703 6,558 145 2.2% 24,087 22,527 1,560 6.9%
TOTAL OPERATING EXPENSES 16,437 15,368 1,069 7.0% 59,192 54,507 4,685 8.6%
SAME-CENTER CASH NET OPERATING INCOME 43,167$ 41,949$ 1,218$ 2.9% 154,705$ 150,123$ 4,582$ 3.1%
SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION
GAAP Operating Income 26,030$ 22,000$ 93,665$ 77,171$
Depreciation and amortization 24,926 22,503 96,256 88,359
General and administrative expenses 3,312 3,065 14,103 13,120
Acquisition transaction costs - 211 4 824
Other expense 103 95 418 456
Property revenues and other expenses (2) (5,500) (4,117) (22,404) (17,636)
TOTAL COMPANY CASH NET OPERATING INCOME 48,871 43,757 182,042 162,294
Non Same-Center Cash NOI (5,704) (1,808) (27,337) (12,171)
SAME-CENTER CASH NET OPERATING INCOME 43,167$ 41,949$ 154,705$ 150,123$
(1) Same centers are those properties which were owned for the entirety of the current and comparable prior year period.
(2) Includes straight-line rents, amortization of above and below-market lease intangibles, anchor lease termination fees net of contractual amounts, and expense and recovery adjustments related to prior periods.
Note: Analysis excludes one shopping center that is currently under contract to be sold (slated for new multi-family development).
Supplemental Disclosure
Quarter Ended December 31, 2017Same-Center Cash Net Operating Income Analysis
- 15 -
(dollars in thousands)
Percent
Number of Leased of Total Percent of
Tenant Leases GLA Leased GLA ABR Total ABR
1 Albertson's / Safeway Supermarkets 21 1,032,829 10.2% 12,386$ 6.0%
2 Kroger Supermarkets 12 511,240 5.0% 7,054 3.4%
3 Rite Aid Pharmacy 14 266,921 2.6% 3,331 1.6%
4 JP Morgan Chase 22 98,473 1.0% 3,029 1.5%
5 SaveMart Supermarkets 4 187,639 1.8% 2,813 1.4%
6 Marshall's / TJMaxx 6 178,195 1.8% 2,649 1.3%
7 Sprouts Markets 4 159,163 1.6% 2,568 1.2%
8 Ross Dress For Less / dd's Discounts 7 191,703 1.9% 2,558 1.2%
9 Trader Joe's 8 96,714 1.0% 2,492 1.2%
10 H-Mart Supermarkets 3 147,040 1.4% 2,400 1.2%
Top 10 Tenants Total 101 2,869,917 28.3% 41,280$ 20.0%
Other Tenants 1,863 7,300,670 71.7% 164,828 80.0%
Total Portfolio 1,964 10,170,587 100.0% 206,108$ 100.0%
Supplemental Disclosure
Quarter Ended December 31, 2017Top Ten Tenants
- 16 -
(dollars in thousands)
Anchor Tenants (1) Number of Leased Percent of Total Percent of ABR
Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft.
2018 7 240,284 2.4% 3,644$ 1.8% 15.17$
2019 15 474,450 4.7% 7,485 3.6% 15.78
2020 17 553,496 5.4% 6,451 3.1% 11.66
2021 14 494,281 4.9% 5,246 2.5% 10.61
2022 18 551,606 5.4% 6,930 3.4% 12.56
2023 25 803,885 7.8% 11,576 5.6% 14.40
2024 6 270,824 2.7% 3,487 1.7% 12.88
2025 10 341,785 3.4% 4,919 2.4% 14.39
2026 11 389,933 3.8% 5,235 2.5% 13.42
2027 9 231,234 2.3% 3,694 1.8% 15.98
2028+ 33 1,326,833 13.0% 20,609 10.0% 15.53
165 5,678,611 55.8% 79,276$ 38.4% 13.96$
Non-Anchor Tenants Number of Leased Percent of Total Percent of ABR
Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft.
2018 258 465,583 4.6% 14,233$ 6.9% 30.57$
2019 266 564,119 5.5% 15,419 7.5% 27.33
2020 275 639,028 6.3% 17,471 8.5% 27.34
2021 271 631,223 6.2% 18,154 8.8% 28.76
2022 270 648,061 6.4% 19,067 9.2% 29.42
2023 140 402,940 4.0% 10,777 5.3% 26.74
2024 70 231,991 2.3% 6,067 2.9% 26.15
2025 57 211,253 2.1% 5,587 2.7% 26.45
2026 61 189,410 1.9% 5,627 2.7% 29.71
2027 58 176,945 1.7% 5,301 2.6% 29.96
2028+ 73 331,423 3.2% 9,129 4.5% 27.54
1,799 4,491,976 44.2% 126,832$ 61.6% 28.23$
All Tenants Number of Leased Percent of Total Percent of ABR
Leases Expiring (2) GLA Total Leased GLA ABR Total ABR Per Sq. Ft.
2018 265 705,867 7.0% 17,877$ 8.7% 25.33$
2019 281 1,038,569 10.2% 22,904 11.1% 22.05
2020 292 1,192,524 11.7% 23,922 11.6% 20.06
2021 285 1,125,504 11.1% 23,400 11.3% 20.79
2022 288 1,199,667 11.8% 25,997 12.6% 21.67
2023 165 1,206,825 11.8% 22,353 10.9% 18.52
2024 76 502,815 5.0% 9,554 4.6% 19.00
2025 67 553,038 5.5% 10,506 5.1% 19.00
2026 72 579,343 5.7% 10,862 5.2% 18.75
2027 67 408,179 4.0% 8,995 4.4% 22.04
2028+ 106 1,658,256 16.2% 29,738 14.5% 17.93
1,964 10,170,587 100.0% 206,108$ 100.0% 20.27$
(1) Anchor tenants are leases equal to or greater than 15,000 square feet.
(2) Does not assume exercise of renewal options.
Supplemental Disclosure
Quarter Ended December 31, 2017Lease Expiration Schedule
- 17 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total
Number of Leases 36 2 38 150 5 155
Gross Leasable Area (sq. ft.) 65,480 30,326 95,806 312,102 85,113 397,215
Initial Base Rent ($/sq. ft.) (1) 30.47$ 13.00$ 24.94$ 25.26$ 14.23$ 22.90$
Tenant Improvements ($/sq. ft.) 6.70$ -$ 4.58$ 4.47$ 8.70$ 5.38$
Leasing Commissions ($/sq. ft.) 3.63$ -$ 2.48$ 2.50$ 2.68$ 2.54$
Weighted Average Lease Term (Yrs.) (2) 8.3 11.0 9.2 7.2 10.6 8.0
Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total
Number of Leases 57 7 64 249 16 265
Gross Leasable Area (sq. ft.) 126,682 170,718 297,400 520,632 437,074 957,706
Initial Base Rent ($/sq. ft.) (1) 28.71$ 16.41$ 21.64$ 31.25$ 14.70$ 23.70$
Tenant Improvements ($/sq. ft.) 0.91$ 2.08$ 1.58$ 0.53$ 0.06$ 0.32$
Leasing Commissions ($/sq. ft.) 0.08$ 0.15$ 0.12$ 0.02$ 0.06$ 0.04$
Weighted Average Lease Term (Yrs.) (2) 5.2 5.5 5.4 5.2 5.4 5.3
Total Non-Anchor Anchor Total Non-Anchor Anchor Total
Number of Leases 93 9 102 399 21 420
Gross Leasable Area (sq. ft.) 192,162 201,044 393,206 832,734 522,187 1,354,921
Initial Base Rent ($/sq. ft.) (1) 29.31$ 15.89$ 22.45$ 29.00$ 14.62$ 23.46$
Tenant Improvements ($/sq. ft.) 2.88$ 1.76$ 2.31$ 2.01$ 2.10$ 2.04$
Leasing Commissions ($/sq. ft.) 1.29$ 0.13$ 0.70$ 0.95$ 0.49$ 0.77$
Weighted Average Lease Term (Yrs.) (2) 6.3 6.3 6.3 6.0 6.2 5.9
(1) Initial Base Rent is on a cash basis and is the initial contractual monthly rent, annualized.
(2) Does not assume exercise of renewal options.
For the Three Months Ended December 31, 2017 For the Twelve Months Ended December 31, 2017
Supplemental Disclosure
Quarter Ended December 31, 2017Leasing Summary
- 18 -
New Leases Non-Anchor Anchor Total Non-Anchor Anchor Total
Comparative # of Leases 23 2 25 92 4 96
Comparative GLA (sq. ft.) (1) 42,727 30,326 73,053 203,850 66,229 270,079
Prior Base Rent ($/sq. ft.) (2) 30.12$ 11.25$ 22.28$ 22.44$ 9.01$ 19.15$
Initial Base Rent ($/sq. ft.) 34.23$ 13.00$ 25.42$ 27.93$ 12.87$ 24.23$
Percentage Change in Base Rents 13.7% 15.6% 14.1% 24.4% 42.8% 26.6%
Tenant Improvements ($/sq. ft.) 5.26$ -$ 3.08$ 5.26$ 11.18$ 6.71$
Leasing Commissions ($/sq. ft.) 3.77$ -$ 2.21$ 2.69$ 2.30$ 2.59$
Weighted Average Lease Term (Yrs.) (3) 7.6 11.0 9.0 7.7 10.6 8.4
Renewals Non-Anchor Anchor Total Non-Anchor Anchor Total
Comparative # of Leases 57 7 64 249 16 265
Comparative GLA (sq. ft.) 126,682 170,718 297,400 520,632 437,074 957,706
Prior Base Rent ($/sq. ft.) (2) 26.16$ 15.18$ 19.86$ 28.22$ 13.77$ 21.62$
Initial Base Rent ($/sq. ft.) 28.71$ 16.41$ 21.64$ 31.25$ 14.70$ 23.70$
Percentage Change in Base Rents 9.7% 8.1% 9.0% 10.7% 6.8% 9.6%
Tenant Improvements ($/sq. ft.) 0.91$ 2.08$ 1.58$ 0.53$ 0.81$ 0.66$
Leasing Commissions ($/sq. ft.) 0.08$ 0.15$ 0.12$ 0.02$ 0.06$ 0.04$
Weighted Average Lease Term (Yrs.) (3) 5.2 5.5 5.4 5.2 5.4 5.3
Total Non-Anchor Anchor Total Non-Anchor Anchor Total
Comparative # of Leases 80 9 89 341 20 361
Comparative GLA (sq. ft.) (1) 169,409 201,044 370,453 724,482 503,303 1,227,785
Prior Base Rent ($/sq. ft.) (2) 27.16$ 14.59$ 20.34$ 26.59$ 13.14$ 21.08$
Initial Base Rent ($/sq. ft.) 30.10$ 15.89$ 22.39$ 30.31$ 14.46$ 23.82$
Percentage Change in Base Rents 10.8% 8.9% 10.1% 14.0% 10.0% 13.0%
Tenant Improvements ($/sq. ft.) 2.00$ 1.76$ 1.87$ 1.86$ 2.18$ 1.99$
Leasing Commissions ($/sq. ft.) 1.01$ 0.13$ 0.53$ 0.77$ 0.35$ 0.60$
Weighted Average Lease Term (Yrs.) (3) 5.8 6.3 6.1 5.9 6.1 6.0
(1) Comparative GLA includes spaces that were vacant for less than 12 months, excluding spaces that were not leased at the time of acquisition.
(2) Prior Base Rent is on a cash basis and is the final monthly rent paid, annualized, for the prior tenant or the prior lease that was renewed.
(3) Does not assume exercise of renewal options.
For the Three Months Ended December 31, 2017 For the Twelve Months Ended December 31, 2017
Supplemental Disclosure
Quarter Ended December 31, 2017Same-Space Comparative Leasing Summary
- 19 -
Equity Research Coverage
Baird Equity Research RJ Milligan 813.273.8252
Bank of America Merrill Lynch Craig Schmidt 646.855.3640
BTIG Michael Gorman 212.738.6138
Capital One Securities, Inc. Chris Lucas 571.633.8151
Citi Michael Bilerman 212.816.1383
Christy McElroy 212.816.6981
D.A. Davidson & Co. James O. Lykins 503.603.3041
Green Street Daniel J. Busch 949.640.8780
J.P. Morgan Michael W. Mueller 212.622.6689
Jefferies George Hoglund 212.284.2226
KeyBanc Capital Markets Todd Thomas 917.368.2286
Raymond James Paul Puryear 727.567.2253
Collin Mings 727.567.2585
RBC Capital Markets Wes Golladay 440.715.2650
Wells Fargo Jeff Donnelly 617.603.4262
Fixed Income Research Coverage
J.P. Morgan Mark Streeter 212.834.5086
Ratings Agency Coverage
Moody’s Investors Service Dilara Sukhov 212.553.1438
S&P Global Ratings Michael Souers 212.438.2508
Supplemental Disclosure
Quarter Ended December 31, 2017Investor Information
Retail Opportunity Investments Corp.
www.roireit.net
NASDAQ: ROIC
8905 Towne Centre Drive, Suite 108
Transfer Agent:
Constance Adams
ComputerShare
constance.adams@computershare.com
Investor Relations:
Ashley Rubino
arubino@roireit.net
858.255.4913