Retail Opportunity Investments Corp. (NASDAQ:ROIC) Q4 2020 Earnings Conference Call February 24, 2021 12:00 PM ET Company Participants Stuart Tanz - Chief Executive Officer Michael Haines - Chief Financial Officer Rich Schoebel - Chief Operating Officer Conference Call Participants Craig Schmidt - Bank of America Katy McConnell - Citi Michael Bilerman - Citi Todd Thomas - KeyBanc Capital Juan Sanabria - BMO Capital Mike Mueller - JPMorgan Paulina Rojas Schmidt - Green Street. Linda Tsai - Jefferies Chris Lu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to RETAIL OPPORTUNITY INVESTMENTS CORP. (Exact name of registrant as specified in its charter) Commission file number: 001-33749 RETAIL OPPORTUNITY INVESTMENTS PARTNERSHIP, LP ...

Retail Opportunity Investments Corp. (NASDAQ:ROIC) Q3 2020 Earnings Conference Call October 27, 2020 12:00 PM ET Company Participants Stuart Tanz - CEO Michael Haines - CFO Rich Schoebel - COO Conference Call Participants Katy McConnell - Citi Mike Mueller - JPMorgan Michael Gorman - BTIG Todd Thomas - KeyBanc Capital Markets Juan Sanabria - BMO Capital Markets Craig Schmidt - Bank of America Vince Tibone - Green Street Linda Tsai - Jefferies Michael Bilerman - Citi Operator Welcome to Retail Opportunity In ...

Financial Data and Key Metrics Changes - GAAP net income attributable to common shareholders for Q2 2020 was $4.6 million, equating to $0.04 per diluted share, with funds from operations totaling $29.2 million, equating to $0.23 per diluted share [15] - Same center net operating income declined by 9.3% in Q2 2020 and 3.1% for the first six months of 2020, marking a significant downturn after 33 consecutive quarters of growth [16] Business Line Data and Key Metrics Changes - 88% of tenants were open and operating by the end of the second quarter, up from 70% in April [11] - Rent received increased from 67% in April to 82% for the entire second quarter, with approximately $9.3 million in outstanding rent, of which $2.2 million has been deferred [11][17] Market Data and Key Metrics Changes - There has been a considerable increase in inquiries from retailers seeking space, particularly in the service and specialty sectors, as well as traditional indoor mall retailers looking to relocate to open-air centers [13] - The portfolio lease rate held up well at 97% at the start of the pandemic and ended the second quarter at 97% despite temporary closures [22] Company Strategy and Development Direction - The company is focusing on enhancing health, safety, and cleaning protocols at shopping centers, as well as creating outdoor dining spaces for restaurant tenants [10][12] - The company is optimistic about the demand for space returning, with a focus on grocery and drug stores, which have remained open and performed well during the pandemic [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the pandemic but noted a quick return of customers to shopping centers, with parking lots bustling and stores active [12] - The company plans to continue conserving cash flow and has temporarily suspended its quarterly dividend to navigate the ongoing uncertainty [34][21] Other Important Information - The company recorded $5.9 million in bad debt expense, with $4.9 million reserved for current tenants [18] - The company has $161.3 million in cash on its balance sheet, representing a $27.8 million increase since April [21] Q&A Session Summary Question: What is the impact of the $5.9 million bad debt number? - The bad debt number primarily relates to rent and recoveries, with $185,000 impacted by write-offs of straight-line rent, mainly from one fitness tenant [41] Question: What are the expectations for August collections? - August collections are fluid, and while it is too early to provide specific numbers, management believes collections will continue to improve as tenants fulfill deferred rent agreements [57] Question: How many 24-Hour Fitness locations are still in the portfolio? - The company has three additional 24-Hour Fitness locations, accounting for less than 1% of total base rent, and expects to re-lease the space quickly [60] Question: What is the tenant participation in the PPP loan program? - The company has encouraged tenants to apply for available assistance, including local grants and federal programs, to help with rent payments [137] Question: What industries are mall tenants coming from? - The company is seeing interest from a broad range of uses, with a focus on tenants that fit the space available, particularly in grocery-anchored centers [144]

Retail Opportunity Investments Corp. (NASDAQ:ROIC) Q1 2020 Earnings Conference Call April 23, 2020 ET Operator Company Participants | --- | |--------------------------------------------------------------------------------| | | | Stuart Tanz - Chief Executive Officer Michael Haines - Chief Financial Officer | | Rich Schoebel - Chief Operating Officer | | Conference Call Participants | | Collin Mings - Raymond James | | Todd Thomas - KeyBanc | | Christy McElroy - Citigroup | | R.J. Milligan - Baird | | Jeremy ...

Financial Data and Key Metrics Changes - For the year ended December 31, 2019, GAAP operating income increased to $115 million compared to $109 million in 2018 [14] - GAAP net income attributable to common shareholders for 2019 was $48.8 million or $0.42 per diluted share, up from $42.7 million or $0.38 per diluted share in 2018 [15] - Funds from operations (FFO) for 2019 was $138 million or $1.10 per diluted share, down from $142 million or $1.14 per diluted share in 2018 [16] Business Line Data and Key Metrics Changes - The company maintained a portfolio lease rate above 97% for the sixth consecutive year, achieving a year-end lease rate of 97.9% [8] - New leases signed in 2019 saw a 32.8% increase in rent, the second highest on record [8] - Renewal rent growth averaged 9.7% in 2019, consistent with the 9% to 10% range since 2015 [9] Market Data and Key Metrics Changes - The company reported a solid 3.6% increase in same-center net operating income (NOI) for 2019 [9] - The economic spread between build and lease space increased to 3.4%, representing $6.5 million in additional incremental annual base rent [27] Company Strategy and Development Direction - The company aims to enhance long-term competitive strength by disposing of non-core properties, surpassing its goal by selling $74 million in 2019 [10] - The densification program includes projects that will add multifamily units and retail space, with significant demand driven by local workforce increases [12][13] - The company plans to continue reducing debt and enhancing its financial position through equity issuance and property sales [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and tenant base, highlighting strong demand across the West Coast [36] - The company anticipates a transitional year in 2020 for FFO, with guidance suggesting a slowdown in leasing activity but continued efforts to recapture space [34][35] Other Important Information - The company has no meaningful debt maturing for approximately the next four years, with a well-laddered debt maturity schedule [20] - FFO guidance for 2020 is expected to be between $1.09 and $1.13 per diluted share, with same-center NOI growth projected at 2% to 3% [21] Q&A Session Summary Question: Follow-up on guidance regarding same store growth and FFO - Management explained that the guidance reflects a drop in FFO due to G&A costs and a reduction in non-cash revenue, alongside dilution from equity issuance [38][40] Question: Impact of de-leveraging on densification - Management acknowledged the need to reduce net debt to EBITDA and indicated that financing for densification projects would not be needed until late 2020 or early 2021 [47][48] Question: Update on tenant watch list and leasing strength - Management reported low exposure to troubled retailers and noted strong demand in the Pacific Northwest, particularly in Portland and Seattle [51][52] Question: Attributes of the acquisition in Southern California - The acquisition is anchored by strong grocery tenants, with expectations for significant growth as leases roll over [54][55] Question: Exposure to potential repeal of Prop 13 - Management indicated that most properties are assessed at current values and could benefit from a level playing field if the proposition passes [67][68] Question: Modeling for Pier 1 locations - Management is proactively marketing spaces and expects potential upside in rents despite some uncertainty [70] Question: Desired leverage metrics - Management aims to achieve a net debt to EBITDA ratio in the six range and is focused on reducing overall leverage [72]

Retail Opportunity Investments Corp. (NASDAQ:ROIC) Q3 2019 Earnings Conference Call October 29, 2019 9:00 AM ET Company Participants Carol Merriman - IR Stuart Tanz - CEO Rich Schoebel - COO Michael Haines - CFO Conference Call Participants Collin Mings - Raymond James Christy McElroy - Citi Michael Gorman - BTIG Barry Oxford - D.A. Davidson Jeremy Metz - BMO Capital Markets Wes Golladay - RBC Capital Markets Todd Thomas - KeyBanc Capital Markets Vince Tibone - Green Street Advisors Craig Schmidt - Bank of ...

Retail Opportunity Investments Corp (NASDAQ:ROIC) Q2 2019 Results Earnings Conference Call July 25, 2019 9:00 AM ET | --- | |------------------------------------------| | | | Company Participants | | Carol Merriman - Investor Relations | | Stuart Tanz - Chief Executive Officer | | Rich Schoebel - Chief Operating Officer | | Michael Haines - Chief Financial Officer | | Conference Call Participants | | Christy McElroy - Citi | | Collin Mings - Raymond James | | Jeremy Metz - BMO Capital Markets | | Todd Thoma ...

Retail Opportunity Investments Corp. (NASDAQ:ROIC) Q1 2019 Results Earnings Conference Call April 25, 2019 9:00 AM ET Company Participants Stuart Tanz - Director, President, Chief Executive Officer Michael Haines - Chief Financial Officer Rich Schoebel - Chief Operating Officer Conference Call Participants Christine McElroy - Citi Jeremy Metz - BMO Capital Markets Todd Thomas - KeyBanc Capital Markets Wes Golladay - RBC Capital Markets Michael Mueller - JPMorgan Tayo Okusanya - Jefferies Craig Schmidt - Ban ...

Financial Data and Key Metrics Changes - For the full year 2018, total revenues increased to $296 million from $273 million in 2017, and GAAP operating income rose to $103 million from $94 million [16] - For Q4 2018, total revenues were $75 million, up from $73 million in Q4 2017, while GAAP operating income increased to $27 million from $26 million [17] - GAAP net income attributable to common shareholders for 2018 was $42.7 million or $0.38 per diluted share, compared to $38.5 million or $0.35 per diluted share in 2017 [18] - Funds from operations (FFO) for 2018 were $142.1 million, compared to $138.9 million in 2017, with FFO per diluted share remaining at $1.14 [19] - Same center net operating income (NOI) increased by 2.5% for both the full year and Q4 2018 [20] Business Line Data and Key Metrics Changes - The company leased over 1.5 million square feet in 2018, achieving a record high year-end portfolio lease rate of 97.7% [7][31] - Same space cash rent growth on new leases exceeded 20% for the fourth consecutive year [8] - In Q4 2018, the company executed 109 leases totaling 402,000 square feet, achieving a 26.8% increase in same space cash rents [34] Market Data and Key Metrics Changes - The company reported strong demand for space across its portfolio, particularly in core West Coast markets [6] - The economic spread between build and lease space decreased to 2.9% by the end of 2018, representing $6.8 million in additional incremental annual base rent [38] Company Strategy and Development Direction - The company is focusing on disposing of non-core properties to enhance long-term competitive strength, having sold properties for $28 million and $17 million in 2018, with additional properties lined up for sale [9][10] - Densification of shopping centers is a key strategy, with 20 centers identified for potential multi-family components, aiming for a $200 million investment with projected returns in the mid-7% range [12][13] - The company plans to partner with experienced multi-family developers to mitigate development risks [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the business and the portfolio's performance, expecting continued strong demand for space in 2019 [46] - The company anticipates FFO for 2019 to be between $1.11 and $1.15 per diluted share, with same-center NOI growth expected between 2% and 3% [27][28] Other Important Information - The company maintained a minimal floating rate debt exposure of 10% and increased its unencumbered portfolio to 95% of total assets [21][23] - The interest coverage ratio was 3.4x, and the net debt to EBITDA ratio improved to 7.1x by year-end [26] Q&A Session Summary Question: Contribution of land for densification projects - Management confirmed that they plan to obtain a construction loan for actual construction costs [57] Question: Same-store NOI growth guidance and permitting issues - Management acknowledged that the permitting process remains cumbersome on the West Coast and that estimates are conservative [58] Question: Funding for acquisitions above $50 million - Management indicated that external growth is anticipated primarily through asset sales, with no equity issuance planned [61] Question: Bad debt expense budgeting - Management budgeted bad debt expense at 1.5% of revenue, which is historically above actual numbers [80] Question: Targeted cap rates for dispositions and acquisitions - Target cap rates for dispositions are 6.5% to 7%, while acquisitions are targeted at about 5.5% [83] Question: Impact of leasing spreads and tenant negotiations - Management noted that leasing spreads accelerated due to year-end pushes from retailers, and they are negotiating new leases with expiring tenants [96]