Retail Opportunity Investments (US:ROIC)2022-04-26 17:03Financial Performance - Total revenues for Q1 2022 were $76,473,000, an increase of 10.5% compared to $69,187,000 in Q1 2021[19] - Rental revenue increased to $75,037,000 in Q1 2022, up from $68,904,000 in Q1 2021, reflecting a growth of 9.2%[19] - Net income attributable to Retail Opportunity Investments Corp. for Q1 2022 was $11,641,000, a 56.5% increase from $7,415,000 in Q1 2021[19] - Earnings per share for Q1 2022 were $0.09, compared to $0.06 in Q1 2021, representing a 50% increase[19] - Comprehensive income for Q1 2022 was $14,669,000, compared to $9,547,000 in Q1 2021, indicating a growth of 53.5%[19] - Net income for the three months ended March 31, 2022, was $12,466,000, a 56.9% increase from $7,974,000 in the same period of 2021[28] - Operating income rose to $26,681,000, reflecting a 19.9% increase compared to $22,454,000 in the prior year[28] - Funds from operations (FFO) for the three months ended March 31, 2022, were approximately $36.2 million, compared to $31.0 million for the same period in 2021, reflecting a significant increase[161] - The total company cash NOI for the three months ended March 31, 2022, was approximately $52.0 million, compared to $47.6 million in Q1 2021[166] Assets and Liabilities - Total assets as of March 31, 2022, were $2,922,214,000, slightly down from $2,928,844,000 at the end of 2021[17] - Total liabilities decreased to $1,543,933,000 from $1,562,491,000 at the end of 2021, a reduction of 1.2%[17] - Cash and cash equivalents increased to $17,867,000 from $13,218,000, marking a growth of 35.5%[17] - Cash and cash equivalents at the end of the period were $20,353,000, up from $6,992,000 at the end of the same period last year[24] - The Company has a total material cash requirement as of March 31, 2022, amounting to approximately $1.52 billion, including short-term obligations of approximately $45.4 million[206] Cash Flow - Cash provided by operating activities was $47,771,000, an increase of 9.1% from $43,550,000 in the same quarter of 2021[24] - Net cash provided by operating activities was approximately $47.8 million for the three months ended March 31, 2022, an increase of approximately $4.2 million compared to $43.6 million in the same period in 2021[202] - Net cash used in investing activities amounted to approximately $17.0 million for the three months ended March 31, 2022, an increase of approximately $9.6 million from $7.4 million in the comparable period in 2021[203] - Net cash used in financing activities was approximately $25.8 million for the three months ended March 31, 2022, a decrease of approximately $10.0 million compared to $35.7 million in the same period in 2021[204] Shareholder Returns - Dividends per common share increased to $0.13 in Q1 2022 from $0.11 in Q1 2021, a rise of 18.2%[19] - For the three months ended March 31, 2022, dividends paid to stockholders totaled approximately $22.1 million, an increase from $13.1 million for the same period in 2021[189] - The company intends to continue making regular quarterly distributions to holders of its common stock, maintaining compliance with REIT distribution requirements[50] Capital Expenditures - Improvements to properties amounted to $16,031,000 in Q1 2022, compared to $7,465,000 in Q1 2021, indicating a 114.5% increase in capital expenditures[35] - Capitalized costs related to the improvement or replacement of real estate properties were approximately $14.9 million in Q1 2022, compared to $6.9 million in Q1 2021, reflecting a 116.2% increase[52] - The Company has committed approximately $2.5 million for tenant improvements and $145,000 for leasing commissions during the three months ended March 31, 2022[209] Debt and Financing - The Company has a $300 million unsecured term loan with a maturity date extended to January 20, 2025, with a carrying value of $298,980,000 as of March 31, 2022[85] - The credit facility has a borrowing capacity of $600 million, with $10 million outstanding as of March 31, 2022, and $590 million available to borrow[88] - The Company has investment grade credit ratings from Moody's (Baa2), S&P (BBB-), and Fitch (BBB)[200] - The Company employs prudent leverage policies, primarily utilizing unsecured debt to maintain liquidity and flexibility in its capital structure[213] Property and Leasing - As of March 31, 2022, the Company's portfolio consisted of 90 properties totaling approximately 10.2 million square feet of gross leasable area (GLA), with a retail portfolio that was approximately 97.2% leased[143] - During the three months ended March 31, 2022, the Company leased or renewed approximately 417,000 square feet in its portfolio, committing approximately $2.5 million in tenant improvements and $145,000 in leasing commissions for new leases[143] - The Company has a concentration in necessity-based community and neighborhood shopping centers, primarily anchored by supermarkets and drugstores[142] Miscellaneous - The Company deferred approximately $11.2 million of contractual amounts billed due to lease concessions related to the COVID-19 pandemic, with approximately $5.7 million, or 85.6%, collected as of March 31, 2022[66] - The Company has aggregated its properties into one reportable segment, evaluating financial performance using property operating income[79] - The Company recognizes rental income based on lease terms, with minimum rental income from leases with scheduled rent increases recognized on a straight-line basis[62]