Retail Opportunity Investments Corp. (ROIC) Bundle
A Brief History of Retail Opportunity Investments Corp.
Retail Opportunity Investments Corp. (ROIC), a publicly traded real estate investment trust (REIT), focuses on acquiring and managing retail properties primarily located in urban and suburban markets of the United States. Established in 2009, ROIC has grown its portfolio through strategic acquisitions and property management.
Company Milestones
- 2009: Formation of Retail Opportunity Investments Corp.
- 2010: Initial public offering on NASDAQ under the ticker symbol ROIC.
- 2015: Expanded portfolio with the acquisition of several key shopping centers.
- 2020: Successfully navigated challenges posed by the COVID-19 pandemic, maintaining a focus on tenant relationships and property management.
- 2024: As of September 30, ROIC operates 94 properties with a total asset value of approximately $3.02 billion.
Financial Performance Overview
For the nine months ended September 30, 2024, ROIC reported a total revenue of approximately $252.1 million, an increase from $243.1 million during the same period in 2023. The operating income for the same period was $112.3 million, compared to $80.7 million the previous year, reflecting a substantial growth driven by increased rental income and strategic asset sales.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $252.1 million | $243.1 million |
| Operating Income | $112.3 million | $80.7 million |
| Net Income | $53.4 million | $28.1 million |
| Same-Center Cash NOI | $163.3 million | $160.9 million |
| Property Operating Income | $182.3 million | $175.4 million |
Recent Developments
In July 2024, ROIC sold the Marketplace Del Rio shopping center in Oceanside, California, for $56.6 million, recording a gain of approximately $22.2 million. Additionally, on August 27, 2024, ROIC sold PCC Community Markets Plaza for approximately $12.2 million, generating a gain of $4.4 million.
As of September 30, 2024, ROIC reported cash and cash equivalents of approximately $61.3 million. The company continues to maintain a strong balance sheet, with total assets amounting to $3.02 billion and total liabilities of $1.66 billion.
Stock Performance
As of September 30, 2024, ROIC had approximately 128.6 million common shares outstanding. The stock has shown resilience, trading at an average price of $15.74 per share during the ten consecutive trading days preceding September 30, 2024. The company declared dividends totaling approximately $57.6 million during the nine months ended September 30, 2024, maintaining a consistent dividend payout of $0.15 per share.
| Stock Data | As of September 30, 2024 |
|---|---|
| Shares Outstanding | 128.6 million |
| Average Share Price | $15.74 |
| Total Dividends Paid | $57.6 million |
Liquidity and Capital Resources
ROIC has maintained a solid liquidity position, with cash flows from operations totaling approximately $121.7 million for the nine months ended September 30, 2024. The company has access to several financing facilities, including a $300 million unsecured term loan and a $600 million revolving credit facility, with the latter maturing in March 2027.
The company’s material cash requirements include principal and interest payments on various debts, with total short-term obligations estimated at approximately $500.3 million and long-term obligations of $1.12 billion as of September 30, 2024.
| Debt Obligations | Short-Term | Long-Term | Total |
|---|---|---|---|
| Mortgage Note Payable Principal | $731,000 | $32.8 million | $33.5 million |
| Term Loan | $200 million | - | $200 million |
| Senior Notes Due 2024 | $255 million | - | $255 million |
| Total | $500.3 million | $1.12 billion | $1.62 billion |
A Who Owns Retail Opportunity Investments Corp. (ROIC)
Ownership Structure
As of September 30, 2024, Retail Opportunity Investments Corp. (ROIC) owns approximately 95.3% of the Operating Partnership, represented by 128,648,870 OP Units. The remaining 6,242,601 OP Units are owned by other limited partners.
Major Shareholders
Key ownership details of Retail Opportunity Investments Corp. as of 2024 are outlined in the following table:
| Shareholder Type | Number of Shares/Units | Percentage Ownership |
|---|---|---|
| ROIC (General Partner) | 128,648,870 OP Units | 95.3% |
| Other Limited Partners | 6,242,601 OP Units | 4.7% |
Stock Performance and Dividends
The company has consistently paid dividends, with approximately $57.6 million paid to stockholders for the nine months ended September 30, 2024. The dividends per common share for 2024 have been $0.15 per share.
Recent Changes in Ownership
During the nine months ended September 30, 2024, ROIC received redemption notices for a total of 1,194,516 OP Units, which were redeemed for shares of ROIC common stock on a one-for-one basis.
Financial Metrics
As of September 30, 2024, ROIC reported total revenues of approximately $252.1 million and a net income attributable to Retail Opportunity Investments Partnership of $53.4 million. The company holds total assets valued at approximately $3.016 billion.
Future Capital Sources
Potential future sources of capital for ROIC include equity issuances and distributions from the Operating Partnership.
Retail Opportunity Investments Corp. (ROIC) Mission Statement
Company Overview
Retail Opportunity Investments Corp. (ROIC) operates as a fully integrated and self-managed real estate investment trust (REIT) focusing on the acquisition, ownership, and management of necessity-based retail properties, primarily in the Western United States. The company aims to deliver sustainable long-term value for its shareholders through a disciplined investment strategy and committed management.
Mission Statement
As of 2024, ROIC's mission statement emphasizes its commitment to providing high-quality shopping experiences for consumers while maximizing shareholder returns through strategic acquisitions and effective property management. The company focuses on necessity-based retail properties, enhancing community engagement and ensuring tenant success.
Financial Performance Metrics
For the three months ended September 30, 2024, ROIC reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $83.5 million | $81.7 million |
| Net Income | $33.9 million | $8.9 million |
| Earnings Per Share (EPS) | $0.25 | $0.07 |
| Distributions Per Share | $0.15 | $0.15 |
| Comprehensive Income | $33.7 million | $8.9 million |
Investment Strategy
ROIC's investment strategy focuses on:
- Acquiring necessity-based retail properties that serve essential consumer needs.
- Maintaining a diversified portfolio across various regions and retail segments.
- Enhancing property values through proactive management and tenant relations.
Recent Acquisitions and Dispositions
In 2024, ROIC executed significant transactions, including:
- Acquisition of Bressi Ranch Village Center for approximately $71 million.
- Sale of Marketplace Del Rio for $56.6 million, resulting in a gain of approximately $22.2 million.
- Sale of PCC Community Markets Plaza for approximately $12.2 million, resulting in a gain of approximately $4.4 million.
Future Financial Outlook
As of September 30, 2024, ROIC's financial outlook includes:
| Future Minimum Rents (in thousands) | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter |
|---|---|---|---|---|---|---|
| Minimum Rents | $57,994 | $224,181 | $197,680 | $167,694 | $135,667 | $409,405 |
Conclusion
ROIC's mission statement reflects its dedication to enhancing shareholder value through strategic investments in necessity-based retail properties, while fostering community engagement and tenant success.
How Retail Opportunity Investments Corp. (ROIC) Works
Business Model Overview
Retail Opportunity Investments Corp. (ROIC) operates primarily as a Real Estate Investment Trust (REIT) that focuses on shopping centers. The company's portfolio comprises 94 retail properties located in major markets across the United States, with a primary emphasis on grocery-anchored centers. As of September 30, 2024, ROIC owned approximately 95.3% of the Operating Partnership, which consolidates all property operations and financial performance.
Financial Performance
For the nine months ended September 30, 2024, ROIC reported total revenues of approximately $252.1 million, compared to $243.1 million for the same period in 2023. The operating income for this period was $112.3 million, an increase from $80.7 million in 2023.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $252.1 million | $243.1 million |
| Operating Income | $112.3 million | $80.7 million |
| Net Income | $53.4 million | $28.1 million |
| Earnings Per Share (Basic) | $0.40 | $0.21 |
| Dividends Per Share | $0.45 | $0.45 |
Cash Flow Analysis
During the same nine-month period, ROIC generated cash flows from operations totaling approximately $121.7 million, slightly down from $124.3 million in the previous year. The company's cash dividends paid to stockholders during this period totaled about $57.6 million.
Property Operations
As of September 30, 2024, ROIC's same-center cash Net Operating Income (NOI) was approximately $163.3 million, reflecting a 1.5% increase from $160.9 million in 2023. The total cash NOI for all properties was approximately $170.0 million for the nine months ended September 30, 2024.
| Property Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Same-Center Cash NOI | $163.3 million | $160.9 million |
| Total Cash NOI | $170.0 million | $175.4 million |
| Property Operating Expenses | $166.5 million | $162.3 million |
Debt and Financing
As of September 30, 2024, ROIC's debt included a term loan of $199.9 million, a credit facility of $135.0 million, and senior notes totaling $1.045 billion. The interest expense for the nine months ended September 30, 2024, was approximately $58.9 million, compared to $52.6 million in 2023.
Capital Structure
ROIC's total assets as of September 30, 2024, amounted to $3.016 billion, with total liabilities of $1.655 billion. The capital structure comprised approximately $1.297 billion in ROIC capital and $63.4 million in limited partners’ capital.
| Capital Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $3.016 billion | $2.978 billion |
| Total Liabilities | $1.655 billion | $1.614 billion |
| ROIC Capital | $1.297 billion | $1.287 billion |
| Limited Partners' Capital | $63.4 million | $75.9 million |
Future Outlook
ROIC continues to focus on optimizing its portfolio of grocery-anchored shopping centers, aiming to leverage stable rental income and manage operational efficiencies to drive future growth. The company remains committed to returning value to its shareholders through consistent dividends and strategic property acquisitions.
How Retail Opportunity Investments Corp. (ROIC) Makes Money
Revenue Generation through Property Leasing
Retail Opportunity Investments Corp. (ROIC) primarily generates revenue through leasing retail space within its shopping centers. As of September 30, 2024, ROIC owned 94 properties with a total gross leasable area of approximately 11.8 million square feet. The company reported total revenues of $83.5 million for the third quarter of 2024, reflecting an increase from $81.7 million in the same quarter of 2023.
Same-Center and Non-Same-Center Cash NOI
For the three months ended September 30, 2024, ROIC's same-center cash net operating income (NOI) was approximately $54.3 million, a slight decrease from $55.4 million in the same quarter of 2023. The decrease is attributed to lower early lease termination fees offset by increases in base rents.
The following table summarizes the cash NOI for both same-center and non-same-center properties:
| Property Type | Cash NOI (Q3 2024) | Cash NOI (Q3 2023) | Change (%) |
|---|---|---|---|
| Same-Center | $54.3 million | $55.4 million | -2.1% |
| Non-Same-Center | $(2.3 million) | $(1.9 million) | +23.4% |
Property Sales and Gains
ROIC also enhances its revenue through the sale of properties. Notably, in July 2024, the company sold the Marketplace Del Rio shopping center for $56.6 million, resulting in a gain of approximately $22.2 million. Additionally, the sale of PCC Community Markets Plaza for $12.2 million generated an additional gain of $4.4 million.
Operating Income and Expenses
For the third quarter of 2024, ROIC reported operating income of $53.9 million, significantly up from $26.9 million in the third quarter of 2023. This increase is largely due to higher revenues from property operations and successful property sales.
The breakdown of operating expenses for the nine months ended September 30, 2024, is as follows:
| Expense Category | Amount (in millions) |
|---|---|
| Property Operating Expenses | $43.5 million |
| Property Taxes | $26.4 million |
| Depreciation and Amortization | $78.5 million |
| General and Administrative Expenses | $17.3 million |
| Other Expenses | $0.8 million |
Funds from Operations (FFO)
Funds from Operations, a key performance metric for REITs, for the nine months ended September 30, 2024, was reported at $105.3 million, slightly down from $105.4 million in the same period of 2023. This reflects the impact of property sales and operational efficiency.
Dividends and Distributions
ROIC maintains a consistent dividend policy, paying $0.15 per share quarterly. For the nine months ended September 30, 2024, total dividends paid to shareholders amounted to approximately $57.6 million.
Future Revenue Streams
Looking ahead, ROIC anticipates future revenue generation from upcoming property acquisitions and potential lease renewals. As of September 30, 2024, future minimum rents under non-cancellable leases are projected to total $1.19 billion.
| Year | Future Minimum Rents (in thousands) |
|---|---|
| Remaining 2024 | $57,994 |
| 2025 | $224,181 |
| 2026 | $197,680 |
| 2027 | $167,694 |
| 2028 | $135,667 |
| Thereafter | $409,405 |
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Article updated on 8 Nov 2024
Resources:
- Retail Opportunity Investments Corp. (ROIC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Retail Opportunity Investments Corp. (ROIC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Retail Opportunity Investments Corp. (ROIC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.