Retail Opportunity Investments Corp (ROIC) Reports Strong Q3 2023 Results
ROIC reported $8.4 million of net income attributable to common stockholders ($0.07 per diluted share).
Funds From Operations (FFO) stood at $36.0 million ($0.27 per diluted share).
Same-center cash net operating income increased by 8.2% compared to Q3 2022.
Portfolio lease rate was 98.2% as of September 30, 2023.
On October 24, 2023, Retail Opportunity Investments Corp (NASDAQ:ROIC) announced its financial and operating results for the third quarter of 2023. The company reported a net income of $8.4 million attributable to common stockholders, translating to $0.07 per diluted share. The Funds From Operations (FFO) for the period stood at $36.0 million or $0.27 per diluted share.
Financial Highlights
ROIC's same-center cash net operating income saw an 8.2% increase compared to the third quarter of 2022. The portfolio lease rate as of September 30, 2023, was 98.2%, a slight increase from 97.8% at the same time the previous year. During the third quarter, ROIC executed leases for 465,187 square feet of space, both new and renewed. The company also reported a 36.0% increase in same-space cash base rents on new leases and a 7.2% increase on renewals.
Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, During the third quarter, we continued to build on the leasing momentum that we established in the first of half of 2023. As a result, through the first nine months, we leased a record amount of space. Additionally, we continued to achieve solid releasing rent growth, with the third quarter being our strongest year-to-date in terms of same-space rent increases on both new leases and renewals.
Financial Results Summary
For the three months ended September 30, 2023, GAAP net income attributable to common stockholders was $8.4 million, or $0.07 per diluted share, as compared to GAAP net income attributable to common stockholders of $18.5 million, or $0.15 per diluted share, for the three months ended September 30, 2022. For the first nine months of 2023, same-center NOI increased 3.6% as compared to same-center NOI for the first nine months of 2022.
Property Operations Summary
At September 30, 2023, ROICs portfolio was 98.2% leased. During the third quarter of 2023, ROIC executed 95 leases, totaling 465,187 square feet, including 34 new leases, totaling 155,585 square feet, achieving a 36.0% increase in same-space comparative base rent, and 61 renewed leases, totaling 309,602 square feet, achieving a 7.2% increase in base rent.
Dividend Summary
On October 6, 2023, ROIC distributed a $0.15 per share cash dividend. On October 24, 2023, the Board declared a cash dividend of $0.15 per share, payable on January 5, 2024, to stockholders of record on December 15, 2023.
2023 Guidance Summary
ROIC currently estimates that GAAP net income for 2023 will be within the range of $0.28 to $0.30 per diluted share, and FFO will be within the range of $1.05 to $1.07 per diluted share.
This article first appeared on GuruFocus.
