Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today
financial and operating results for the year and three months ended
December 31, 2022.
YEAR 2022 HIGHLIGHTS
- $51.9 million of net income
attributable to common stockholders
($0.42 per diluted
share)
- $145.3 million in Funds From
Operations(1)
($1.10 per diluted
share)
- 10.0% growth in Funds From Operations
per diluted share (2022 vs. 2021)
- 4.6% increase in same-center cash net
operating income (2022 vs. 2021)
- 98.1% portfolio lease rate at year-end
(all-time record high)
- 1.6 million square feet leased
(all-time record activity)
- 23.2% increase in same-space cash
rents on new leases (7.8%
increase on renewals)
- $120.2 million of grocery-anchored shopping center
acquisitions
- $61.4 million of capital raised ($36.2 million
disposition, $25.2 million ATM stock issuance)
- $23.5 million of mortgage debt retired
- 96.6% of portfolio’s gross leasable area unencumbered
at year-end (all-time record high)
- Advanced environmental, social & governance
initiatives
4TH QUARTER 2022 HIGHLIGHTS
- $10.2 million of net income
attributable to common stockholders
($0.08 per diluted
share)
- $35.9 million in Funds From Operations
($0.27 per diluted
share)
- 5.0% increase in same-center cash net
operating income (4Q‘22 vs. 4Q‘21)
- 6.6x net principal debt-to-annualized
EBITDA ratio for 4Q‘22 (vs. 7.0x for 4Q‘21)
- $0.15 per share cash dividend
paid
________________________________________
(1) A reconciliation
of GAAP net income to Funds From Operations (FFO) is provided at
the end of this press release.
Stuart A. Tanz, President and Chief Executive
Officer of Retail Opportunity Investments Corp. stated, “During
2022, we continued to enhance the long-term intrinsic value and
competitive position of our portfolio. In terms of leasing, we
posted one of the strongest, most active years on record for the
company, achieving a new record high portfolio lease rate,
surpassing 98% at year-end. We also leased a record amount of space
during the year, and again achieved solid releasing rent growth.
Additionally, we continued to work at enhancing our presence on the
West Coast through our disciplined, relationship-driven investment
program. During 2022, we acquired over 0.5 million square feet of
grocery-anchored shopping centers. All of the properties are
well-situated in our core markets and are an excellent strategic
fit with our existing portfolio.” Tanz added, “Looking ahead, with
our strong operating platform, we are well positioned to achieve
another productive year in 2023 and continue building long-term
value.”
FINANCIAL SUMMARY
For the year ended December 31, 2022, GAAP net
income attributable to common stockholders was $51.9 million, or
$0.42 per diluted share, as compared to GAAP net income
attributable to common stockholders of $53.5 million, or $0.44 per
diluted share for the year ended December 31, 2021. Included in
GAAP net income for 2022 was a $7.7 million gain on sale of real
estate as a result of ROIC’s property disposition activity during
2022, as compared to $22.3 million gain on sale of real estate
during 2021. For the three months ended December 31, 2022, GAAP net
income attributable to common stockholders was $10.2 million, or
$0.08 per diluted share, as compared to GAAP net income
attributable to common stockholders of $8.5 million, or $0.07 per
diluted share for the three months ended December 31, 2021.
FFO for the year 2022 was $145.3 million, or
$1.10 per diluted share, as compared to $127.9 million in FFO, or
$1.00 per diluted share, for the year 2021, representing a 10.0%
increase in FFO per diluted share. FFO for the fourth quarter of
2022 was $35.9 million, or $0.27 per diluted share, as compared to
$32.6 million in FFO, or $0.25 per diluted share for the fourth
quarter of 2021. ROIC reports FFO as a supplemental performance
measure in accordance with the definition set forth by the National
Association of Real Estate Investment Trusts. A reconciliation of
GAAP net income to FFO is provided at the end of this press
release.
For the year 2022, same-center net operating
income (NOI) was $196.7 million, as compared to $188.1 million in
same-center NOI for the year 2021, representing a 4.6% increase.
For the fourth quarter of 2022, same-center NOI increased 5.0% as
compared to same-center NOI for the fourth quarter of 2021. ROIC
reports same-center comparative NOI on a cash basis. A
reconciliation of GAAP operating income to same-center comparative
NOI is provided at the end of this press release.
During 2022, ROIC raised $61.4 million of
capital, including $36.2 million from a property disposition and
$25.2 million from the issuance of approximately 1.3 million shares
of common stock through its ATM program. ROIC utilized the
proceeds, together with cash flow from operations and borrowings on
its unsecured revolving credit facility, to fund $120.2 million of
shopping center acquisitions and retire two mortgage loans totaling
$23.5 million. At December 31, 2022, ROIC had total real estate
assets (before accumulated depreciation) of approximately $3.4
billion and approximately $1.4 billion of principal debt
outstanding. As of December 31, 2022, 95.7% of ROIC’s principal
debt outstanding was unsecured, including $88.0 million outstanding
on its $600.0 million unsecured revolving credit facility.
Additionally, ROIC’s net principal debt-to-annualized EBITDA ratio
for the fourth quarter of 2022 was 6.6 times, and 96.6% of its
portfolio was unencumbered at December 31, 2022, based on gross
leasable area. During 2022, Fitch Ratings, Inc. awarded ROIC an
upgrade to its investment-grade corporate debt rating and
reaffirmed its stable outlook. Additionally, Moody's Investor
Services and S&P Global Ratings each reaffirmed their
respective investment-grade corporate debt rating and stable
outlook.
ACQUISITION & DISPOSITION
SUMMARY
During 2022, ROIC acquired, in three separate
transactions, five grocery-anchored shopping centers totaling
$120.2 million, encompassing approximately 501,000 square feet.
Three of the properties are located within the Seattle metropolitan
area, one property is located within the Portland metropolitan
area, and one property is located within the San Francisco
metropolitan area. Additionally, during 2022 ROIC sold one property
for $36.2 million located within the Seattle metropolitan area.
PROPERTY OPERATIONS SUMMARY
At December 31, 2022, ROIC’s portfolio was
98.1% leased, as compared to 97.5% leased at December 31, 2021. For
the year 2022, ROIC executed 439 leases, totaling approximately
1.6 million square feet, including 173 new leases, totaling
445,612 square feet, achieving a 23.2% increase in same-space
comparative base rent, and 266 renewed leases, totaling 1,162,619
square feet, achieving a 7.8% increase in base rent. During the
fourth quarter of 2022, ROIC executed 109 leases, totaling 415,793
square feet, including 48 new leases, totaling 136,750 square feet,
achieving an 11.1% increase in same-space comparative base rent,
and 61 renewed leases, totaling 279,043 square feet, achieving a
7.2% increase in base rent. ROIC reports same-space comparative
base rent on a cash basis.
ENVIRONMENTAL, SOCIAL & GOVERNANCE
SUMMARY
During 2022, ROIC continued to advance its
environmental, social and governance (ESG) initiatives. As
disclosed in its 2022 annual ESG report (issued in July 2022), ROIC
achieved a 14% reduction in same-center greenhouse gas emissions
and a 15% reduction in same-center common area energy consumption
(2021 vs. 2020). For the second consecutive year ROIC was selected
as a Green Lease Leader by the U.S. Department of Energy.
Specifically, ROIC received the designation of “Gold” in
recognition of its efforts to incorporate crucial energy
efficiency, cost savings, air quality and sustainability criteria
into its leases. Additionally, during 2022 ROIC enhanced its Global
Real Estate Sustainability Benchmark public disclosure rating.
DIVIDEND SUMMARY
On December 29, 2022, ROIC distributed a $0.15
per share cash dividend. On February 14, 2023, ROIC’s board of
directors declared a cash dividend of $0.15 per share, payable on
April 7, 2023 to stockholders of record on March 17,
2023.
2023 GUIDANCE SUMMARY
ROIC currently estimates that GAAP net income
for 2023 will be within the range of $0.35 to $0.43 per diluted
share, and FFO will be within the range of $1.05 to $1.11 per
diluted share.
|
2022 Actual |
|
Year Ended December 31, 2023 |
|
|
Low End |
|
High End |
|
(unaudited, amounts in thousands except per share and percentage
data) |
GAAP net income applicable to stockholders |
$ |
51,869 |
|
|
$ |
43,709 |
|
|
$ |
54,526 |
|
Funds from operations (FFO) –
diluted |
$ |
145,301 |
|
|
$ |
139,650 |
|
|
$ |
150,700 |
|
|
|
|
|
|
|
GAAP net income per diluted
share |
$ |
0.42 |
|
|
$ |
0.35 |
|
|
$ |
0.43 |
|
FFO per diluted share |
$ |
1.10 |
|
|
$ |
1.05 |
|
|
$ |
1.11 |
|
|
|
|
|
|
|
Key Drivers |
|
|
|
|
|
General and administrative
expenses |
$ |
21,735 |
|
|
$ |
23,000 |
|
|
$ |
22,000 |
|
Interest expense and other
finance expenses |
$ |
59,225 |
|
|
$ |
68,000 |
|
|
$ |
73,000 |
|
Straight-line rent |
$ |
2,715 |
|
|
$ |
1,000 |
|
|
$ |
1,000 |
|
Amortization of above- and
below-market rent |
$ |
11,947 |
|
|
$ |
10,000 |
|
|
$ |
10,000 |
|
Bad debt |
$ |
2,034 |
|
|
$ |
5,000 |
|
|
$ |
3,000 |
|
Acquisitions |
$ |
120,150 |
|
|
$ |
100,000 |
|
|
$ |
200,000 |
|
Dispositions |
$ |
36,193 |
|
|
$ |
200,000 |
|
|
$ |
50,000 |
|
Same-center cash NOI
growth |
|
4.6 |
% |
|
|
2.0 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
ROIC’s management will discuss guidance, and the
underlying assumptions, on ROIC’s February 16, 2023 conference
call. ROIC’s guidance is a forward-looking statement and is subject
to risks and other factors noted elsewhere in this press
release.
CONFERENCE CALL
ROIC will conduct a conference call to discuss
its results on Thursday, February 16, 2023 at 12:00 p.m.
Eastern Time / 9:00 a.m. Pacific Time.
To participate in the conference call, click on
the following link (ten minutes prior to the call) to register:
https://register.vevent.com/register/BIb65c0bdd569b4cc59cbcd8cdabf2c8cc
Once registered, participants will have the
option of: 1) dialing in from their phone (using a PIN); or 2)
clicking the “Call Me” option to receive an automated call directly
to their phone.
The conference call will also be available live (in a
listen-only mode) at:
https://edge.media-server.com/mmc/p/bja5jezf
The conference call will be recorded and
available for replay following the conclusion of the live broadcast
and will be accessible up to one year on ROIC’s website,
specifically on its Investor Relations Events & Presentations
page: https://investor.roicreit.com/events-presentations
ABOUT RETAIL OPPORTUNITY INVESTMENTS
CORP.
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, 2022, ROIC owned 93 shopping centers
encompassing approximately 10.6 million square feet. ROIC is the
largest publicly-traded, grocery-anchored shopping center REIT
focused exclusively on the West Coast. ROIC is a member of the
S&P SmallCap 600 Index and has investment-grade corporate debt
ratings from Moody's Investor Services, S&P Global Ratings and
Fitch Ratings, Inc. Additional information is available at:
www.roireit.net.
When used herein, the words "believes,"
"anticipates," "projects," "should," "estimates," "expects,"
“guidance” and similar expressions are intended to identify
forward-looking statements with the meaning of that term in Section
27A of the Securities Act of 1933, as amended, and in Section 21F
of the Securities and Exchange Act of 1934, as amended. Certain
statements contained herein may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results of ROIC to differ materially from future
results expressed or implied by such forward-looking
statements. Information regarding such risks and factors is
described in ROIC's filings with the SEC, including its most recent
Annual Report on Form 10-K, which is available at:
www.roireit.net.
RETAIL OPPORTUNITY INVESTMENTS
CORP.Consolidated Balance Sheets(In
thousands, except share data)
|
December 31, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
Real Estate Investments: |
|
|
|
Land |
$ |
958,236 |
|
|
$ |
915,861 |
|
Building and improvements |
|
2,452,857 |
|
|
|
2,350,294 |
|
|
|
3,411,093 |
|
|
|
3,266,155 |
|
Less: accumulated
depreciation |
|
578,593 |
|
|
|
510,836 |
|
|
|
2,832,500 |
|
|
|
2,755,319 |
|
Mortgage note receivable |
|
4,786 |
|
|
|
4,875 |
|
Real Estate Investments,
net |
|
2,837,286 |
|
|
|
2,760,194 |
|
Cash and cash equivalents |
|
5,598 |
|
|
|
13,218 |
|
Restricted cash |
|
1,861 |
|
|
|
2,145 |
|
Tenant and other receivables,
net |
|
57,546 |
|
|
|
55,787 |
|
Deposits |
|
500 |
|
|
|
— |
|
Acquired lease intangible
assets, net |
|
52,428 |
|
|
|
50,139 |
|
Prepaid expenses |
|
5,957 |
|
|
|
5,337 |
|
Deferred charges, net |
|
26,683 |
|
|
|
25,017 |
|
Other assets |
|
16,420 |
|
|
|
17,007 |
|
Total
assets |
$ |
3,004,279 |
|
|
$ |
2,928,844 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Liabilities: |
|
|
|
Term loan |
$ |
299,253 |
|
|
$ |
298,889 |
|
Credit facility |
|
88,000 |
|
|
|
— |
|
Senior Notes |
|
946,849 |
|
|
|
945,231 |
|
Mortgage notes payable |
|
60,917 |
|
|
|
85,354 |
|
Acquired lease intangible
liabilities, net |
|
152,117 |
|
|
|
136,608 |
|
Accounts payable and accrued
expenses |
|
22,885 |
|
|
|
48,598 |
|
Tenants’ security
deposits |
|
7,701 |
|
|
|
7,231 |
|
Other liabilities |
|
41,959 |
|
|
|
40,580 |
|
Total
liabilities |
|
1,619,681 |
|
|
|
1,562,491 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Equity: |
|
|
|
Preferred stock, $0.0001 par
value 50,000,000 shares authorized; none issued and
outstanding |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par
value, 500,000,000 shares authorized; 124,538,811 and 122,685,266
shares issued and outstanding at December 31, 2022 and
December 31, 2021, respectively |
|
12 |
|
|
|
12 |
|
Additional paid-in
capital |
|
1,612,126 |
|
|
|
1,577,837 |
|
Accumulated dividends in
excess of earnings |
|
(315,984 |
) |
|
|
(297,801 |
) |
Accumulated other
comprehensive income (loss) |
|
14 |
|
|
|
(3,154 |
) |
Total Retail Opportunity
Investments Corp. stockholders’ equity |
|
1,296,168 |
|
|
|
1,276,894 |
|
Non-controlling interests |
|
88,430 |
|
|
|
89,459 |
|
Total
equity |
|
1,384,598 |
|
|
|
1,366,353 |
|
Total liabilities and
equity |
$ |
3,004,279 |
|
|
$ |
2,928,844 |
|
|
|
|
|
RETAIL OPPORTUNITY INVESTMENTS
CORP.Consolidated Statements of
Operations(Unaudited)(In thousands, except per share
data)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
|
Rental revenue |
$ |
79,285 |
|
|
$ |
71,999 |
|
|
$ |
308,960 |
|
|
$ |
280,924 |
|
Other income |
|
908 |
|
|
|
799 |
|
|
|
3,969 |
|
|
|
3,176 |
|
Total
revenues |
|
80,193 |
|
|
|
72,798 |
|
|
|
312,929 |
|
|
|
284,100 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Property operating |
|
13,589 |
|
|
|
12,105 |
|
|
|
51,057 |
|
|
|
44,439 |
|
Property taxes |
|
8,839 |
|
|
|
8,161 |
|
|
|
34,651 |
|
|
|
33,663 |
|
Depreciation and
amortization |
|
25,050 |
|
|
|
23,528 |
|
|
|
97,494 |
|
|
|
92,929 |
|
General and administrative
expenses |
|
5,590 |
|
|
|
5,301 |
|
|
|
21,735 |
|
|
|
19,654 |
|
Other expense |
|
182 |
|
|
|
229 |
|
|
|
960 |
|
|
|
860 |
|
Total operating
expenses |
|
53,250 |
|
|
|
49,324 |
|
|
|
205,897 |
|
|
|
191,545 |
|
|
|
|
|
|
|
|
|
Gain on sale of real
estate |
|
— |
|
|
|
— |
|
|
|
7,653 |
|
|
|
22,340 |
|
|
|
|
|
|
|
|
|
Operating
income |
|
26,943 |
|
|
|
23,474 |
|
|
|
114,685 |
|
|
|
114,895 |
|
Non-operating expenses |
|
|
|
|
|
|
|
Interest expense and other
finance expenses |
|
(16,049 |
) |
|
|
(14,362 |
) |
|
|
(59,225 |
) |
|
|
(57,535 |
) |
Net income |
|
10,894 |
|
|
|
9,112 |
|
|
|
55,460 |
|
|
|
57,360 |
|
Net income attributable to
non-controlling interests |
|
(695 |
) |
|
|
(598 |
) |
|
|
(3,591 |
) |
|
|
(3,852 |
) |
Net Income
Attributable to Retail Opportunity Investments Corp. |
$ |
10,199 |
|
|
$ |
8,514 |
|
|
$ |
51,869 |
|
|
$ |
53,508 |
|
|
|
|
|
|
|
|
|
Earnings per share –
basic and diluted |
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.42 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Dividends per common
share |
$ |
0.15 |
|
|
$ |
0.18 |
|
|
$ |
0.56 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
CALCULATION OF FUNDS FROM
OPERATIONS(Unaudited)(In thousands)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
Net income attributable to
ROIC |
$ |
10,199 |
|
$ |
8,514 |
|
$ |
51,869 |
|
|
$ |
53,508 |
|
Plus: Depreciation and amortization |
|
25,050 |
|
|
23,528 |
|
|
97,494 |
|
|
|
92,929 |
|
Less: Gain on sale of real estate |
|
— |
|
|
— |
|
|
(7,653 |
) |
|
|
(22,340 |
) |
Funds from operations –
basic |
|
35,249 |
|
|
32,042 |
|
|
141,710 |
|
|
|
124,097 |
|
Net income attributable to non-controlling interests |
|
695 |
|
|
598 |
|
|
3,591 |
|
|
|
3,852 |
|
Funds from operations –
diluted |
$ |
35,944 |
|
$ |
32,640 |
|
$ |
145,301 |
|
|
$ |
127,949 |
|
|
|
|
|
|
|
|
|
SAME-CENTER CASH NET OPERATING INCOME
ANALYSIS(Unaudited)(In thousands, except number of
shopping centers and percentages)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
$ Change |
|
% Change |
|
|
2022 |
|
|
|
2021 |
|
|
$ Change |
|
% Change |
Number of shopping
centers included in same-center analysis |
|
85 |
|
|
|
85 |
|
|
|
|
|
|
|
84 |
|
|
|
84 |
|
|
|
|
|
Same-center
occupancy |
|
98.0 |
% |
|
|
97.5 |
% |
|
|
|
0.5 |
% |
|
|
98.0 |
% |
|
|
97.5 |
% |
|
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base rents |
$ |
52,656 |
|
|
$ |
50,918 |
|
|
$ |
1,738 |
|
3.4 |
% |
|
$ |
205,223 |
|
|
$ |
198,434 |
|
|
$ |
6,789 |
|
|
3.4 |
% |
|
Percentage rent |
|
956 |
|
|
|
791 |
|
|
|
165 |
|
20.9 |
% |
|
|
1,482 |
|
|
|
970 |
|
|
|
512 |
|
|
52.8 |
% |
|
Recoveries from tenants |
|
17,978 |
|
|
|
16,596 |
|
|
|
1,382 |
|
8.3 |
% |
|
|
69,890 |
|
|
|
65,592 |
|
|
|
4,298 |
|
|
6.6 |
% |
|
Other property income |
|
667 |
|
|
|
608 |
|
|
|
59 |
|
9.7 |
% |
|
|
2,933 |
|
|
|
2,101 |
|
|
|
832 |
|
|
39.6 |
% |
|
Bad debt |
|
(390 |
) |
|
|
(682 |
) |
|
|
292 |
|
(42.8 |
)% |
|
|
(1,701 |
) |
|
|
(2,607 |
) |
|
|
906 |
|
|
(34.8 |
)% |
Total
Revenues |
|
71,867 |
|
|
|
68,231 |
|
|
|
3,636 |
|
5.3 |
% |
|
|
277,827 |
|
|
|
264,490 |
|
|
|
13,337 |
|
|
5.0 |
% |
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating
expenses |
|
13,058 |
|
|
|
12,092 |
|
|
|
966 |
|
8.0 |
% |
|
|
48,739 |
|
|
|
43,707 |
|
|
|
5,032 |
|
|
11.5 |
% |
|
Property taxes |
|
8,259 |
|
|
|
7,974 |
|
|
|
285 |
|
3.6 |
% |
|
|
32,405 |
|
|
|
32,727 |
|
|
|
(322 |
) |
|
(1.0 |
)% |
Total Operating
Expenses |
|
21,317 |
|
|
|
20,066 |
|
|
|
1,251 |
|
6.2 |
% |
|
|
81,144 |
|
|
|
76,434 |
|
|
|
4,710 |
|
|
6.2 |
% |
Same-Center Cash
Net Operating Income |
$ |
50,550 |
|
|
$ |
48,165 |
|
|
$ |
2,385 |
|
5.0 |
% |
|
$ |
196,683 |
|
|
$ |
188,056 |
|
|
$ |
8,627 |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME-CENTER CASH NET OPERATING INCOME
RECONCILIATION(Unaudited)(In thousands)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP operating income |
$ |
26,943 |
|
|
$ |
23,474 |
|
|
$ |
114,685 |
|
|
$ |
114,895 |
|
Depreciation and amortization |
|
25,050 |
|
|
|
23,528 |
|
|
|
97,494 |
|
|
|
92,929 |
|
General and administrative expenses |
|
5,590 |
|
|
|
5,301 |
|
|
|
21,735 |
|
|
|
19,654 |
|
Other expense |
|
182 |
|
|
|
229 |
|
|
|
960 |
|
|
|
860 |
|
Gain on sale of real estate |
|
— |
|
|
|
— |
|
|
|
(7,653 |
) |
|
|
(22,340 |
) |
Straight-line rent |
|
(427 |
) |
|
|
(521 |
) |
|
|
(2,715 |
) |
|
|
(959 |
) |
Amortization of above- and below-market rent |
|
(2,729 |
) |
|
|
(2,224 |
) |
|
|
(11,947 |
) |
|
|
(8,795 |
) |
Property revenues and other expenses (1) |
|
(265 |
) |
|
|
(14 |
) |
|
|
(1,331 |
) |
|
|
(614 |
) |
Total Company cash NOI |
|
54,344 |
|
|
|
49,773 |
|
|
|
211,228 |
|
|
|
195,630 |
|
Non same-center cash NOI |
|
(3,794 |
) |
|
|
(1,608 |
) |
|
|
(14,545 |
) |
|
|
(7,574 |
) |
Same-center cash NOI |
$ |
50,550 |
|
|
$ |
48,165 |
|
|
$ |
196,683 |
|
|
$ |
188,056 |
|
|
|
|
|
|
|
|
|
____________________
(1) |
Includes anchor lease termination fees, net of contractual amounts,
if any, expense and recovery adjustments related to prior periods
and other miscellaneous adjustments. |
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.
Contact:
Nicolette O’Leary
Director of Investor Relations
858-677-0900
noleary@roireit.net
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