Retail Opportunity Investments (ROIC) Q3 2024 earnings summary

Executive summary

• Portfolio lease rate was 97.1% as of September 30, 2024, with over 1.2 million sq ft leased year-to-date and robust tenant demand across grocery-anchored centers.

• Net income attributable to common stockholders was $32.1M ($0.25/share) for Q3 2024, up from $8.4M ($0.07/share) in Q3 2023, driven by a $26.7M gain on real estate sales.

• Portfolio comprised 93–94 grocery-anchored shopping centers totaling 10.5–10.6 million sq ft on the West Coast, with major tenants including Albertsons, Kroger, Trader Joe's, and Safeway.

• Two property sales in Q3 2024 generated $68.8M–$69M, with a $26.7M gain, and one acquisition for $70M–$71M, supporting capital recycling.

• Largest publicly traded West Coast-focused grocery-anchored shopping center REIT, maintaining investment-grade credit ratings.

Financial highlights

• Q3 2024 total revenues were $83.5M, up from $81.7M in Q3 2023; nine-month revenues reached $252.1M, up from $243.1M year-over-year.

• Q3 2024 net income was $32.1M, up from $8.4M in Q3 2023; nine-month net income was $50.5M, up from $26.5M.

• Funds from Operations (FFO) for Q3 2024 was $33.2M ($0.25/share), compared to $36.0M ($0.27–$0.28/share) in Q3 2023; nine-month FFO was $105.3M ($0.78/share), nearly flat year-over-year.

• Same-center cash NOI for Q3 2024 was $54.3M, down 2.1% year-over-year; nine-month same-center cash NOI was $163.3M, up 1.5%.

• Q3 2024 dividend per share was $0.15, unchanged from Q3 2023.

Outlook and guidance

• 2024 GAAP net income guidance is $0.45–$0.47 per diluted share; FFO guidance is $1.03–$1.05 per diluted share.

• Same-center NOI growth for 2024 projected at 1%–2% year-over-year, with expectations for stronger growth in 2025 as new anchors take occupancy.

• Management expects to meet all liquidity needs through operating cash flows, debt refinancings, asset sales, and available credit.

• Portfolio remains 97.1% leased, with strong tenant demand and robust leasing activity.

• Refinancing of $250M in senior notes maturing in December is planned, with expected pricing in the mid-5.5% range.