Retail Opportunity Investments Corp (ROIC)

[Enterprising Investor]

Retail Opportunity Investments Corp. Reports Solid First Quarter 2013 Results (5/02/13)

SAN DIEGO, May 2, 2013 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (Nasdaq:ROIC) announced today financial and operating results for the three months ended March 31, 2013.

HIGHLIGHTS

•Net income of $2.3 million, or $0.04 per diluted share for 1Q'13

•Funds From Operation (FFO) of $11.5 million, or $0.19 per diluted share(1) for 1Q'13

•$122.8 million of grocery-anchored shopping center acquisitions completed year-to-date

•7.9% increase in same-center cash net operating income (1Q'13 vs. 1Q'12)

•171,200 square feet of leases executed in 1Q'13 (new and renewed)

•93.4% portfolio occupancy rate at March 31, 2013 (110 bps increase vs. 1Q'12)

•58.3% of the company's warrants retired, $156.8 million proceeds received to date

•23.5% debt-to-total market capitalization ratio at March 31, 2013

•Quarterly cash dividend of $0.15 per share of common stock declared

Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, "We are fully on track with achieving our targeted acquisition, management and leasing goals for the year. Thus far, we have acquired $122.8 million of grocery-anchored shopping centers year-to-date and our pipeline of acquisition opportunities continues to be active. In terms of property operations, we again posted strong results during the first quarter. We leased 171,200 square feet, increased occupancy by 110 basis points, from a year ago, to 93.4%, and achieved a 7.9% increase in same-center cash net operating income." Tanz stated further, "Looking ahead, with the $155.7 million of equity capital received through the warrants that have been exercised to date, our financial position continues to be strong. Accordingly, we are well-positioned to continue growing our portfolio and business."

FINANCIAL SUMMARY

For the three months ended March 31, 2013, net income attributable to common stockholders was $2.3 million, or $0.04 per diluted share, as compared to net income of $1.1 million, or $0.02 per diluted share for the three months ended March 31, 2012. FFO for the first quarter of 2013 was $11.5 million, or $0.19 per diluted share, as compared to FFO of $8.4 million, or $0.17 per diluted share for the first quarter of 2012. 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 March 31, 2013, ROIC had a total market capitalization of $1.275 billion with $299.8 million of debt outstanding, equating to a 23.5% debt-to-total market capitalization ratio. ROIC's debt outstanding was comprised of $81.8 million of mortgage debt and $218.0 million of unsecured debt, including $18.0 million outstanding on its unsecured credit facility. At March 31, 2013, 88.9% of ROIC's portfolio was unencumbered, based on gross leasable area.

INVESTMENT SUMMARY

During the first quarter 2013, ROIC acquired two grocery-anchored shopping centers, in separate transactions, totaling $39.8 million. Subsequent to the end of the first quarter, ROIC acquired two additional grocery-anchored shopping centers, in separate transactions, totaling $83.0 million.

Diamond Bar Town Center

In February 2013, ROIC acquired Diamond Bar Town Center for $27.4 million. The shopping center is approximately 100,000 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 89.3% 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. The property is located in Rancho Bernardo, California, within the San Diego metropolitan area and is currently 100% leased.

Canyon Crossing

In April 2013, ROIC acquired Canyon Crossing for $35.0 million. The shopping center is approximately 121,000 square feet and is anchored by Safeway Supermarket. The property is located in Puyallup, Washington, within the Seattle metropolitan area and is currently 73.3% leased.

Diamond Hills Plaza

In April 2013, ROIC acquired Diamond Hills Plaza for $48.0 million. The shopping center is approximately 140,000 square feet and is anchored by H Mart Supermarket and Rite Aid Pharmacy. The property is located in Diamond Bar, California, within the Los Angeles metropolitan area and is currently 97.9% leased.

CASH DIVIDEND

On March 29, 2013, ROIC distributed a $0.15 per share cash dividend. On May 1, 2013, ROIC's board of directors declared a cash dividend on its common stock of $0.15 per share, payable on June 28, 2013 to shareholders of record on June 14, 2013.

WARRANT UPDATE

As of May 1, 2013, 58.3% of the company's total outstanding warrants have been retired, including: 13,066,685 warrants exercised, providing ROIC with approximately $156.8 million of proceeds; 7,750,000 warrants repurchased by ROIC in privately negotiated transactions for approximately $10.7 million; and 8,000,000 founders' warrants exercised on a cashless basis. ROIC utilized the $156.8 million of proceeds primarily to pay down borrowings on its unsecured credit facility. ROIC currently has 20.6 million warrants outstanding, scheduled to expire in October 2014.

http://globenewswire.com/news-release/2013/05/02/543607/10031046/en/Retail-Opportunity-Investments-Corp-Reports-Solid-First-Quarter-2013-Results.html

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