Retail Opportunity Investments Corp (ROIC)

[Enterprising Investor]

ROIC Reports Solid 2012 Results (2/21/13)

Company Increases Dividend 7.1% & Establishes 2013 FFO Guidance

SAN DIEGO, Feb. 21, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today financial and operating results for the year and fourth quarter ended December 31, 2012.

YEAR 2012 HIGHLIGHTS

•Net income of $7.9 million, or $0.15 per diluted share

•Funds From Operation (FFO) of $39.1 million, or $0.75 per diluted share(1)

•$276.1 million in shopping center acquisitions completed

•7.4% increase in same-center cash net operating income (2012 vs. 2011)

•93.5% portfolio occupancy rate at December 31, 2012 (230 bps increase vs. 2011)

•35.1% debt-to-total market capitalization ratio at December 31, 2012

•Corporate headquarters relocated from White Plains, NY to San Diego, CA

•35.9% increase in cash dividends per share paid (2012 vs. 2011)

4TH QUARTER 2012 HIGHLIGHTS

•Net loss of $278,000, or $0.01 per diluted share

•FFO of $8.5 million, or $0.15 per diluted share(1)

•$141.4 million in shopping center acquisitions completed

•6.4% increase in same-center cash net operating income (4Q12 vs. 4Q11)

•Quarterly cash dividend of $0.15 per share declared (7.1% increase)

(1) A reconciliation of GAAP net income to FFO is provided at the end of this press release.

Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "2012 proved to be another strong and productive year for the company whereby we successfully advanced our business on a number of important fronts. We continued to execute our highly-disciplined investment strategy, acquiring $276.1 million of shopping centers during the year, growing our portfolio by 30.0%, in terms of gross leasable area, and enhancing our presence in each of our core markets in the western region of the United States. We continued to capitalize on the strong demand for space across our portfolio, leasing approximately 728,000 square feet of space, increasing year-end occupancy to a new, two-year high of 93.5%, and achieving a strong, 7.4% increase in same-center cash net operating income for the year. We also continued to enhance our financial position during 2012, significantly lowering our borrowing costs, expanding our debt capital availability and raising equity capital efficiently through our ATM program. Additionally, along with growing our portfolio and business, we increased cash dividends to stockholders by 35.9% in 2012." Tanz stated further, "Looking ahead, with our solid shopping center portfolio and operating platform, together with our strong financial position, we are well positioned to continue growing our business in 2013".

FINANCIAL SUMMARY

For the twelve months ended December 31, 2012, net income was $7.9 million, or $0.15 per diluted share. FFO for the year 2012 was $39.1 million, or $0.75 per diluted share. For the three months ended December 31, 2012, ROIC incurred $1.8 million in costs associated with relocating its corporate headquarters from New York to California, resulting in a net loss of $278,000 or $0.01 per diluted share. FFO for the fourth quarter 2012 was $8.5 million, or $0.15 per diluted share. ROIC reports FFO as a supplemental performance measure. A reconciliation of GAAP net income to FFO is provided at the end of this press release.

At December 31, 2012, ROIC had total market capitalization of approximately $1.1 billion with $391.7 million of debt outstanding, equating to a 35.1% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $72.7 million of mortgage debt and $319.0 million of unsecured debt, including $119.0 million outstanding on its unsecured credit facility. At December 31, 2012, 89.4% of ROIC's portfolio was unencumbered, based on gross leasable area.

INVESTMENT SUMMARY

During 2012, ROIC acquired fourteen shopping centers for a total of $276.1 million, including the following five shopping centers acquired during the fourth quarter for a total of $139.3 million. Additionally, during the fourth quarter, ROIC acquired a newly developed pad building at one of its existing shopping centers for $2.1 million.

Bay Plaza Shopping Center

In October 2012, ROIC acquired Bay Plaza Shopping Center for $21.6 million. The shopping center is approximately 73,000 square feet and is anchored by Seafood City Supermarket, a regional grocery store. The property is located in San Diego, California and is currently 86.9% leased.

Santa Teresa Village Shopping Center

In November, 2012, ROIC acquired Santa Teresa Village Shopping Center for $31.6 million. The shopping center is approximately 125,000 square feet and is anchored by Raley's (Nob Hill) Supermarket, a regional grocery store. The property is located in San Jose, California and is currently 94.0% leased.

Cypress West

In December 2012, ROIC acquired Cypress West for $27.6 million. The shopping center is approximately 106,000 square feet and is anchored by Kroger (Ralph's) Supermarket and Rite Aid. The property is located in Cypress, California, in the heart of Orange County and is currently 92.0% leased.

Redondo Beach Plaza

In December 2012, ROIC acquired Redondo Beach Plaza for $30.8 million. The shopping center is approximately 111,000 square feet and is anchored by Safeway (Vons) Supermarket. The property is located in Redondo Beach, California, within the Los Angeles metropolitan area and is currently 98.8% leased.

Harbor Place Center

In December 2012, ROIC acquired Harbor Place Center for $27.7 million. The shopping center is approximately 120,000 square feet and is anchored by Albertson's Supermarket and Ross Dress for Less. The property is located in Garden Grove, California, in the heart of Orange County and is currently 100% leased. Albertson's is no longer operating at the shopping center. ROIC is currently in advanced discussions with several national retailers regarding the Albertson's space.

In 2013, year-to-date ROIC has acquired the following two shopping centers for a total of $39.8 million.

Diamond Bar Town Center

In February 2013, ROIC acquired Diamond Bar Town Center for $27.4 million. The shopping center is approximately 107,000 square feet and is anchored by a national grocer. The property is located in Diamond Bar, California, within the Los Angeles metropolitan area and is currently 91.2% leased.

Bernardo Heights Plaza

In February 2013, ROIC acquired Bernardo Heights Plaza for $12.4 million. The shopping center is approximately 38,000 square feet and is anchored by Sprouts Farmers Market, a regional grocery store. The property is located in Rancho Bernardo, California, within the San Diego metropolitan area and is currently 100% leased.

CASH DIVIDEND

On November 30, 2012, ROIC distributed a $0.14 per share cash dividend. On February 19, 2013, ROIC's board of directors declared a cash dividend of $0.15 per share, payable on March 29, 2013 to shareholders of record on March 15, 2013. The $0.15 per share dividend represents a 7.1% increase over ROIC's previous dividend.

2013 FFO & DIVIDEND GUIDANCE

ROIC currently estimates FFO for 2013 will be within the range of $0.80 to $0.85 per diluted share, and net income will be within the range of $0.12 to $0.14 per diluted share. The following table provides a reconciliation of GAAP net income to FFO. (In thousands, except per share amounts)

http://www.globenewswire.com/news-release/2013/02/21/525190/10022532/en/Retail-Opportunity-Investments-Corp-Reports-Solid-2012-Results.html