Retail Opportunity Investments Corp. Reports 2024 Third Quarter Results

Core Insights - Retail Opportunity Investments Corp. (ROIC) reported strong financial results for Q3 and the first nine months of 2024, with significant increases in net income and leasing activity [2][3][4] Financial Performance - Net income attributable to common stockholders for Q3 2024 was $32.1 million, or $0.25 per diluted share, compared to $8.4 million, or $0.07 per diluted share in Q3 2023 [3][4] - Funds From Operations (FFO) for Q3 2024 was $33.2 million, or $0.25 per diluted share, down from $36.0 million, or $0.27 per diluted share in Q3 2023 [4] - For the first nine months of 2024, GAAP net income was $50.5 million, or $0.39 per diluted share, compared to $26.5 million, or $0.21 per diluted share in the same period of 2023 [3][4] Leasing Activity - ROIC achieved 450,623 square feet of leasing activity in Q3 2024, marking the most active quarter year-to-date, with a total of 1.2 million square feet leased year-to-date [2][3] - The portfolio lease rate was 97.1% as of September 30, 2024, with a 98.0% anchor lease rate and a 96.0% non-anchor lease rate [2][3] Rent Growth - There was a 13.8% increase in same-space cash base rents on new leases in Q3 2024, and a 7.0% increase on renewals [2][3] - For the first nine months of 2024, same-center cash net operating income (NOI) increased by 1.5% compared to the same period in 2023 [4][19] Dispositions and Acquisitions - ROIC sold properties totaling $68.8 million in Q3 2024, realizing a $26.7 million gain on sale of real estate [2][6] - The company has been actively recycling investment capital, with $70.1 million in acquisitions year-to-date [3] Debt and Dividends - As of September 30, 2024, ROIC had a net principal debt-to-annualized EBITDA ratio of 6.3x, down from 6.4x in Q3 2023 [2][5] - A cash dividend of $0.15 per share was declared on October 22, 2024, payable on January 10, 2025 [8] Guidance - ROIC updated its guidance for 2024, estimating GAAP net income to be in the range of $0.45 to $0.47 per diluted share, and FFO to be between $1.03 and $1.05 per diluted share [9]