On July 23, 2024, Retail Opportunity Investments Corp (ROIC, Financial) released its 8-K filing detailing its financial and operating results for the second quarter ended June 30, 2024. Retail Opportunity Investments Corp is a self-managed real estate investment trust specializing in the acquisition, ownership, and management of necessity-based community and neighborhood shopping centers on the west coast of the United States, anchored by supermarkets and drugstores.
Financial Performance Overview
Retail Opportunity Investments Corp (ROIC, Financial) reported net income attributable to common stockholders of $7.4 million, or $0.06 per diluted share, for the second quarter of 2024. This aligns with the analyst estimate of $0.06 per share. The company generated $83.32 million in total revenues, slightly surpassing the estimated $81.07 million.
Key Financial Metrics
For the three months ended June 30, 2024, ROIC's Funds From Operations (FFO) stood at $34.1 million, or $0.25 per diluted share, compared to $35.6 million, or $0.27 per diluted share, in the same period last year. The company's portfolio lease rate increased to 97.0% from 96.4% in the previous quarter, reflecting robust leasing activity.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income (millions) | $7.4 | $9.9 |
| Earnings Per Share | $0.06 | $0.08 |
| Funds From Operations (millions) | $34.1 | $35.6 |
| FFO Per Share | $0.25 | $0.27 |
Operational Highlights
During the second quarter, ROIC executed 131 leases totaling 392,746 square feet, including 40 new leases and 91 renewals. The company achieved a 12.4% increase in same-space cash base rents on new leases and a 5.8% increase on renewals. Additionally, ROIC acquired the Bressi Ranch Village Center for $70.1 million and sold a property for $56.6 million in the third quarter.
Balance Sheet and Cash Flow
As of June 30, 2024, ROIC had total real estate assets of approximately $3.5 billion and $1.4 billion in principal debt outstanding. The company retired a $26.0 million mortgage during the quarter, leaving one mortgage loan of $33.6 million maturing in October 2025. ROIC's net principal debt-to-annualized EBITDA ratio was 6.6 times.
Environmental, Social & Governance (ESG) Initiatives
ROIC was recognized as a Green Lease Leader by the U.S. Department of Energy’s Better Buildings Alliance and the Institute for Market Transformation for the fourth consecutive year. The company issued its fifth ESG annual report in June 2024, detailing its achievements and ongoing initiatives.
Dividend and Guidance
ROIC declared a $0.15 per share cash dividend, payable on October 4, 2024, to stockholders of record on September 20, 2024. The company updated its FFO guidance for 2024 to a range of $1.04 to $1.07 per diluted share.
Retail Opportunity Investments Corp (ROIC, Financial) continues to demonstrate strong operational performance and strategic growth through acquisitions and leasing activities. The company's focus on necessity-based retail properties and robust leasing demand positions it well for future growth.
Explore the complete 8-K earnings release (here) from Retail Opportunity Investments Corp for further details.
