ROIC - Earnings call transcript Q4 2017 | Retail Opportunity Investments Corp.

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Operator

Welcome to Retail Opportunity Investments 2017 Fourth Quarter and Year-End Conference Call. Participants are currently in a listen-only mode.

Following the company's prepared remarks, the call will be opened up for your questions. Please note that certain matters discussed in this call today constitute forward-looking statements within the meaning of the federal securities laws.

Although the company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, the company can give no assurance that these expectations will be achieved. by known cause risks, materially actual results or involve factors and from statements and expressed may statements which results implied forward-looking and uncertainties unknown other future expectations. Such forward-looking such to differ Information the filings regarding Commission, its with in report annual Exchange company's most and such recent factors Securities on described and including risks is the Form XX-K. and company's more refer to the and such risks with information results. the SEC for as the filings to factors company's encouraged well are financial Participants operational regarding as regarding filings can company's be The website. found on its

to Now I Sir, the would Stuart to Tanz, begin. may company's like Officer. introduce Executive call over Chief the you

Stuart Tanz

Thank you.

is our Here today Michael with Schoebel, our and Chief Chief me Financial Officer. Rich Officer, Operating Haines,

post focused and the Coast portfolio year another solid and We retailing as what well pleased our fundamentals core strategically face long-term are grocery initiatives. year our centers of performance, shopping capitalize a on we leasing our portfolio business anchorage our we was acquiring continuing company growth continue well and industry, to through strong of to underlying In the growing carefully true West intrinsic as across enhance portfolio stayed challenging to for of established report markets. the the where of plan, our value for operating that to

million. XX through during centers Specifically, X over for of XXXX we grew terrific shopping acquiring $XXX total by square feet our million portfolio a investment

fit a acquisitions XXXX portfolio every superb are our Our in respect. with

This basis acquired operators that acquisitions added class successfully as grocery during service-based of with acquisitions year among yearly necessity are broad that range have well fact, of thus in nine-year strong retailers. established In history feature past the speak to the properties to customer a far. our our this as we year's portfolio XX so best we

opportunity have came our We as as expansion XXXX already one of releasing below underlying Also, and acquiring opportunities with recapturing space. of that market quickly already leased. available light the space after making Since the underwriting. to and properties flow acquisitions the fully bulk leased expansion seized offer to opportunity on the completed the properties value. enhance our wasn't the and excellent numerous is which well part headway cash and increase of acquiring the we've Additionally, regional

Looking their ahead, additional there Perhaps opportunities opportunities continue well as market of significant the as location through are attributes. cash XXXX releasing are aspect to a our their down key flow involving number the looking is stores. of space increasing most acquisitions expand tenants to road that potential anchored below important

continues markets success and shopping and retailing more no omnichannel be to in increase our in have As an impact is sought situated continued of component going critical a having ideally our it it's than after forward. ever doubt been today bricks mortar industry and important on will centers stores

are where demand XXXX to markets demographically our Portland. in and being Our continues the located acquisitions XXXX the in country situated in well accelerate. fastest Seattle growing tenant in two strong are XX markets, of markets acquisitions Five

area including Metro terrific the Valley. of Silicon of located a heart Francisco the in our the center are Additionally, shopping two San acquisitions in

We hubs. also anchored shopping added several centers Orange located prominent County's key in groceries retail

our acquisitions our an rent are our one in retailers protect consistently ability located perspective to being supply seek and as achieve aspect of these the being to markets virtually already that One below ability that of growth to these strong unlock of to in addition as markets our to ability another going the drivers given underlying serving downside tenant important markets is with important presence strong market additional are various key our core leasing with extremely the risk. the our well synergies maneuver continue be will attribute is which XXXX. to our forward. the ever entry it's initiatives at an out In in as barriers at today think XX% and that significant constrained properties year and to served part in increasingly as work post embedded full demand enhance portfolio leasing, our acquisitions over very tenancies we growth new strategically strong potentially our we And leases. leased that from as maneuver speaking With of

adversely While range was the the broad the with that properties our retailing a country industry current across impacted portfolio. of retail case turmoil not

a in the and remain to discuss high will continue Rich we again our year occupancy XXXX, growth. solid minute throughout As achieve in rent

posting we NOI a steadily center X.X% grew Additionally, same XXXX. year, for for sixth growth cash the consecutive

our strengths, year and for to open on board we While of that difference our result and The summary we core later sticking new increased the our well. our occurred the performance, are we that closer In to we operating year are and that by X%. of objectives dividend our planned grew principles than to strong openings across pursuant platform anchor Coast. originally bit growth has effect tenants now tenancies. to eighth other the and our good higher West a news announce with core XXXX be pleased in are in portfolio the The company's performing the that it primarily and tenant light anchor was advanced number pleased new by that the dividend had had raising consecutive our stated for capitalizing the expected to with In X%. is

turn to I'll take our to you Michael over of Haines results. Mike? the to financial the details call Now

Michael Haines

Stuart. Thanks

GAAP in GAAP and For ended revenues $XXX.X operating $XX.X XX, total and income, operating income $XX.X compared months had as in company the XX $XXX.X million XXXX, total December the million million to for XXXX. million in revenues

GAAP of total income total XXXX. compared year GAAP to million net fourth the company revenues, in to income had or as million $X.XX GAAP revenues net and GAAP full million in operating $XX was quarter the in fourth operating $XX in XXXX. million the to and respect per to XXXX, $XX.X quarter diluted GAAP $XX.X attributable per For million income common of for as compared $XX.X income of $X.XX XXXX, or the With $XX.X share for shareholders, net million diluted share income for

For quarter company had equating of $X.XX of net share $XX.X or compared diluted the income for of the net the $X.X fourth as to million share to diluted quarter income XXXX. per a per $X.XX GAAP million XXXX, of fourth GAAP

FFO funds per On of diluted of the full terms XXXX, year XXXX. million full from for per as FFO per share was the X.X% $XXX.X representing million over the for share $XXX.X year $X.XX In operations, compared increase FFO a diluted for was XXXX. share FFO of to year for a basis, full XXXX,

totaled share quarter $XX.X million compared to share XXXX. for as representing XXXX, quarter XXXX, a of the the the quarter of of was of fourth increase basis, diluted FFO of On FFO quarter fourth share $XX $X.XX the an FFO XX.X% fourth diluted for per million, per fourth per FFO for For XXXX. over

balance putting our through financing increasing XXXX, sheet interest to pressure took growth on Turning and as hold of the rates. economic for initiatives year the course

objectives total rate. primary was ago, at debt XXXX floating in company's our approximately effectively to of of was rate our reduce the the floating exposure. XX% XXXX, debt of One outset A year

proceeds tenure company XXXX, placement $XXX our During fixed the floating to the private term a We pay in quarter, utilized completed the rate down rate of line. specifically unsecured bonds. fourth million

Additionally, our term rate with $XXX fixed. entire entered existing million loan swaps, agreements floating now our two we into combined effectively interest is swap that rate

another debt year-end initiatives these XXXX, our that of debt XXXX, our was in result less floating rate exposure was a for was our enhance of fixed than maturity extend reducing rate. effectively of our As XX.X% Along us rate. floating key to debt at and total XX% Meaning debt schedule. with objective

During our extending both three respectively. recast term XXXX, our maturities line credit another we and by out years four and loan the

matures this up have the one no now. extend ability our year, line and we small maturing loan for further. renewal when As only we beyond XXXX, debt we later X.X which credit a to And comes years that result, that have until have from that

In terms capital. equity of

million approximately common the million During shares equity. of the acquisitions, quarter based fourth to two $XX approximately connection share, stock of in XXXX, issued X.X a we of $XX.XX on equating value of with

months, net couple January, issued raising and past program, the in December during XXX,XXX approximately in our proceeds. Additionally, ATM approximately of in million shares through we early $X.X

with of billion mentioned, cap may I are to billion with a $X capital raising suitable. had equating during remaining the debt-to-total ATM year-end, our of into XX.X% XXXX, roughly year-end the ratio we $X.X market of debt at our totaling And to year-end. fixed forward, outstanding, average account utilize initiatives maturity X.X years. weighted company market approximately at Taking Going cap XX.X% conditions $X.X when program rate as debt further billion with a market our of look total at

of In approximately terms $XXX had December million of as our line, credit outstanding XXst. we

majority of debt our Importantly, the unsecured. is vast

debt shopping total are our with our words, million only of mortgage In properties. outstanding debt at In $XXX centers XX% of fact, year-end, encumbering out XX unsecured only other XX of was six unencumbered. of

turn Rich, Now, Rich? I'll call to the over discuss property to operations.

Richard Schoebel

Thanks, Mike.

Stuart sector adverse that very on notwithstanding well. specifically to Demand daily for to markets the neighborhood be our much protected West and past affected the very our and shopping strong and as it of continues indicated, Coast, our retailing perform particularly space the relates this As trends the portfolio necessity, constrained continued center year, supply to portfolio. sector,

in portfolio spread annual which and year, XX.X% make the X.X% on above leased XXXX, XXXX, XX%, leased quarter, XXXX, year leased. the the incremental anchor lease XXX% a is was shops of year-end now $X non-anchor our between base consecutive our over base to and during space, was XX%. continue the strong anchor just additional a fact, and at XX.X%, demands. Throughout build achieved economic stood of above spread to in a rent between at cash ongoing With down these a every of million We representing respect space basis. number and the very most beginning the at we XX.X% rate space, Breaking fourth our

we that the flow. the cash Taking of of occupancy rent, statistics, didn't of with quarter, that portion rent rent occupancy move paying X.X% incremental come the the leasing each spreads on across of tenants into bulk economic online XX, of associated all to past XXXX, a all spread basis, During new had take which those tenants course we $X.X good $X.X a as commence leasing and additional of XXXX, permitting the X.X%, which the large a to achieve, into representing we of was during through million due cash base on. in in million, in XXXX. respect as late based during Stuart incremental year, lag And is to touched the With continue annual reflected XXXX our December part, that our XXXX, markets. only the broad $X expect we municipality our will annual to process, account, million in growth year, due solid our activity

million X.X the of scheduled approximately renewed, for square executed leasing executed million solid year, totaling the XXX year. feet Specifically, achieving and cash space feet new totaling leases was beginning which that between the we of feet, at than doubled the XXX,XXX we X.X and X.X% XX.X% cash of square strong increase space, square back we rents. space down more leases, increase expire Breaking amount XXX,XXX square renewed the leases, XXX in new is a of regionally to in achieving rents XXX a totaling feet,

renew our as are During underscoring indicative cases, well We well of the more tenants patient advance. portfolio, In attributes our in explorations shopping of year and some this and to the think their markets tenants of our specific us how much more as advance this of their past centers. year, of well trend performing coming in pro-active and of as were our is strength across lease to the leases.

feet, X% XXX,XXX new stats, quarter, square the cash our Turning XX fourth square totaling rents. leases, increase cash in same-space we in leasing renewed XX,XXX and feet, a leases, a XX feet, XXX,XXX leases, during approximately square totaling executed achieving we including increase back to rents totaling XXX XX.X% achieving

retailers One of those combination strong recapturing much our drivers during spaces higher successive releasing the was spaces same-space XXXX, stronger considerably and of underperforming key a to and to rents. below a increases and market

feet approximately adding over past the this recaptured years, over time. annual very space. feet, hard total, aggressively successfully released that past over recaptured and incremental During square million we've In worked XXX,XXX cash in $X.X three flow. recapturing We've underperforming XXX,XXX we during year, square

balanced today a of been. our result has and a - ever it As diverse strong efforts, is as our

the Now, to back call I'll turn over Stuart.

Stuart Tanz

Rich. Thanks,

we to Our is the of over that sound. want message that business today, drivers make running core our clear, remained

been never stronger year experience. they've XX-plus In fact, in our

the and overall All highest metrics not the entry said, the reflected in economy that towards the of our in With strongest out supply current the taking being toward we our in guidance from demographics even and to in being of among view to mind as barriers are portfolio $XX. stock immune key to be favorable. are solid of speak fundamentals market all with retail we specifically core up, and rock general start growth job metrics to ever, these the the XXXX, in market rates. our the no to new we continues That remained fact the as a FFO approach, initial a and here $XX recent to cautious that country

guidance based minimal XXXX. is a acquisition in Our only of amount on activity

under center incorporates simply contract shopping acquisitions have Specifically, totaling $XX the we million. two that currently

see is number We market to the While to continues acquisition feel see across the we and how evolves. off prudent wait in to Coast be to interests market be the approach the market and environment continue this opportunities. a West active patient current acquisition of in

of terms of on based guidance year NOI, to is be for growth full the space on simply Rich end portion our XXXX. A X.X% releasing expire renewals cash X.X% described. based range a is scheduled good XXXX. same that of assumes to lower dynamic could in the which center that of In The primarily range the currently

$XX some guidance the equity $XX of Between Our Mike and as on. course touched additional account into to takes issuing year. the million also million

ROIC to build find market it's here ourselves are to and to and none prudently on committed we us our at value. continuing the we safe are that business firmly Rest the fully up assured enhance while stock say uncertain Finally, remain environment focused in. long-term of challenge that that currently enjoying

Now up the Operator? questions. open your we for will call

Operator

instructions] [Operator of McElroy Citi. you. question from Our first is Christy Thank

is line Your open.

Stuart Tanz

Good morning, Christy.

Christy McElroy

Hi, guys. good morning

of and that that that you give assumptions that in lease Just timing the some about Does of those upon and X.X%? clarifying trajectory commencement the the should of got. in the our just Can guidance, a mentioned see sort just expect? growth that we outside commencement should range coming to sort the QX given there QX we QX, mean you online, year was same-store versus full NOI talk to X.X% of of lead

Stuart Tanz

large that's probably We'll models the this the as out end year showing to to start of we X.X%. lower pretty the increase, as are what guidance of move but the average year X.X% on our and on

Christy McElroy

to like pretty it Should factors in and would Does I the it it as maybe there though the was growth those of Okay. pay it maybe been a is there occurred in have issue timing like other high but the seem online some seems there? quarter. year come that expected that would the here be have but fourth was earlier commandments higher

Stuart Tanz

get the on we to conservative towards that couple to fourth be of as modeling a as Yeah, on. a of of move tail sort the the see quarters. and of a bit I think waiting that tenants to I Rich there quarter under number is same-store construction of still mean touched occupancy end did lower lot we've side first we're are that We but on loved the

Christy McElroy

is the off? starts cash then the back. we we as think some versus decrease the if in rents think Is guidance, GAAP should burn a rent should is piece How Okay. to non-cash your there of about acquisition expecting? about that flowing there are XXX you FAS And presumably how inherent rents

Michael Haines

base. noncash know based rents We budgeting the the noncash over a granular significant get in rents, tenant and but don't trail off current in have on we'll I that the didn't the XXXX

Stuart Tanz

rolling of that double And are over. get as that leasing as velocity XXXX, again, of articulated part we're the through leasing Rich we with currently experiencing we will be what's

Christy McElroy

you assuming of guidance on inherent mentioned, Okay. that that million the the issuance and of can average that? million equity what of timing are price to us give lastly you the sort you And $XX then just $XX

Michael Haines

market going above additions of that assumption, to in our based ranges it's be our that. shares that across $XX be kind so Well, on below to price and about is spread to slight the the varying conditions, we on the early January guidance but both December, goal set based and issued like

we above or for. what looking is XX were So,

Christy McElroy

so thanks Okay, much.

Michael Haines

you. Thank

Operator

Thank you.

James. comes from Collin question of next Our Mings Raymond

Your line is open.

Stuart Tanz

Good morning, Collin.

Collin Mings

Stewart. morning good Hey

on previously the sort assets dispositions point? additional to just the you Just you up is around for this then going lined you sale of us any of that status update just guidance, might contemplating be and back being discussed at can thoughts

Stuart Tanz

on are so think really announce and Well, through we redeveloped, to I last expect the bit those dispositions are that two year, in year. moving late process being forward a going properties entitlement that still do later we close the the those

terms set of have we of announced. think sort we that in what So

at We currently at nothing are present announce looking time. other but some possibly dispositions to the

Collin Mings

Rite just are just viewing then Stuart, Albertsons concentration? Aid your kind and Okay, you aggregate of and exposures [ph] how just around the deal thoughts given

Stuart Tanz

let Rich address I'll that. Sure,

Richard Schoebel

those so Rite our to wouldn't have at there as with Aid of it they [ph] shopping enhance the we for either eight way centers Rite traffic or grocery From of our are our that is as portfolio as we our additional Rite Of detail barns shopping it Albertson's possibly profile forward centers to Aid the to think positive rent. anchor, companies, forward. taking as think we have those bring [ph] space. about more currently account But merger the centers together say move our is have or specifically, a with Aid for a XX have in for centers perspective our we looking total it's to relates stores of drug X% And to shopping stronger, shopping tenant additional our Albertson's that combined or and discussing we the XX centers base it be foot think XX account we and credit safe and that existing of X.X% a portfolio, well, potential either footprint only within total the in [ph] Albertson's rent. for base Safeway

Collin Mings

last turn me then one one Okay. and for it And I'll over.

can upside just you as talk of that? is Stuart have visibility that, tie while kind believe again maybe that's just and just on, about can typically upon I just they terms you these where little I the to more contract, you far you target that in two given acquisitions of the know embedded bit under a as that upside just Just so expand that leased, maybe acquisitions closing timing XXX% are

Stuart Tanz

this asset is which start And an here I'll center nice from downtown and with of major a the been well, a closing good is but reporting extremely renovated, one to at Well, that a next this in it's it news Also, Poland system lifts going very be, stop is deal Tacoma the is very we that going Tacoma unlevered there in urbanized. the probably the we're a will close construction, door has at pretty which in and that new gentrified sooner strong to of return. the months. have Stadium pretty Sure. pretty, been rents. from standpoint is under is is the this monorail particular bought doing will a tomorrow Grocery that to City a going currently be center And step close in is several Seattle. so is this off transportation very, actually has good area shopping the some shopping morning. is center King located on perspective. is a

is sub-market years market acreage of asset of power in two of bit a in in in one We run, sub-market acquisition us the with also leases. control the owned in XX-XX has close different, give of which lot other raising exchange. we to this rents will terms we been terms with all family XX, of very centers grocery and located actually on only the extreme will this of that centers of part one It's have this ownership, for very XX and a bit a seller in This this lot a with terms a approximately to rollover strong of itself. one time find the the given upside a - owner a more

overview about excited lot really that's and as this acquisitions. a very and are juice the We is quick of say both one, there we

Collin Mings

it Okay, I'll over. turn Thanks Stuart.

Stuart Tanz

you. Thank

Operator

Thank you.

Wes from Our next Golladay, question RBC Capital Markets. of comes

open. Your line is

Wes Golladay

morning, Anchor does that additional tenants, the rent, Hey, I remarks said think color in other you can impact late rent elaborate that give Stuart your you percent improve opening on on just in everyone. mentioned it you this, year, paying good to recoveries. to convert prepared want the comment. is a does full to the it I

Richard Schoebel

fell anchor mentioned Sure. many the to the you you've circumstances. it now tenant, well This things delay open into also impact of the had roads, is all It's they're down mentioned, there but Rich. the and back an trickles one with that the as but out, in tenants as co-tenancy Cross recoveries that

on I the So, you've hit high think point.

Wes Golladay

the the debt the of trends it picking and pulling looks as will year at need we guidance to be the there as for the looking X.X look or year Okay to base the up is recovery at bad maybe down? same-store far like X.X anything it that throughout ratio

Michael Haines

don't bit bad budget actual it's, debt bit wouldn't than as like X% little guidance a so I little bad our same-store. less it around terribly which our about is so, is debt concerns that impacting our a expenses that I've mean the we actually, our on think in forgot

Wes Golladay

Okay. which in this that's year X% run expenses XXXX And up? XX% is it about XX% that to now or pick were XXXX in high they what rate recoveries about just for for the should fact abnormally on normal recoverable then about down and happened

Stuart Tanz

from up leakage that's the the in crossroads rent talked up say a had the fourth pick the we as the picking said about will on an which as of up that co-tenancy in No quarter of both all impact space, Rich from same-store on the anchorage and as NOI came because bit our that really you at Brook. crossroads lateness the and would

Wes Golladay

you versus your what's how then with how last given compare us see that and does year? Okay do and give you seasonality can tenant's

Richard Schoebel

watch we not but no have in of tenants do keep our no given virtually in basis all a but but We centers close product announced eye tenants the we about. that those that shopping store there's one still portfolio active of keep type on ongoing on exposure an an are currently the XXXX to specific pretty we're our our closing have worried on tenants, many

Wes Golladay

Okay, lot. a thanks

Stuart Tanz

Thank you.

Operator

Thank you.

next from Hoglund Jefferies. question Our of comes George

Your open. line is

Stuart Tanz

Good morning George.

George Hoglund

Hey guys. good morning

question a marking some the upside acquisitions cap give of on and on there can timeframe also of from on rates rents potential little that? color Just and to these market the releasing of what you on then a be some kind would

Stuart Tanz

Well, cap that mark-to-market rates in the $XX going contract on talk you million the around Rich under X.XX have do about to forward? we want and are terms of the portfolio

Richard Schoebel

still our I currently underperforming higher leases the mean on much in at rents. terms Yeah, of we're that and good much working of we're we maybe portfolio see growth certain tenants tenants a there's to roll rent that recapture release on initiatives also better as and in ability working lot to over proactively

George Hoglund

thanks. Okay,

Operator

Thank you.

comes question Market. Capital next Our Thomas KeyBanc from of Todd

Your open. line is

Stuart Tanz

Good morning Todd.

Todd Thomas

morning. good Hi,

time NOI Just we 'XX growth a accretion acquisitions quarterly X.X% share guidance a XXXX? some same-store look rate question from in what's of you're half fourth the are acquisitions the X.X% if primarily the around to causes decrease forecasting at quarter of FFO the $X.XX run to offset second the weighted FFO what

Richard Schoebel

floating be Well, private we placement. part of good that rate out the have is debt. That's debt that but doing in Mike is going impact articulated to of an the that is termed news there increased the going to terms cost

it's that So, Mike. primarily

Michael Haines

low-cost capital. bulk debt biggest outside through acquisitions the in acquire driver of XXXX European of our that relative Hopefully, the the were

Todd Thomas

what some following detail you in it's referenced can little And up the on just delays around the quarter? base quarter in on does two annualized like that sounds question and in commencements much particular on the quarter the Kristy's one around that Fall what commencements then Brooke more of of you timing it those one provide the rent Okay. crossroads, fourth collected versus there how anchors represent the was was a in

Richard Schoebel

opening Sporting it's you're December Barnes Sports down where of Market in weekend. to replacement rent opened have Brooke Shelly paying now. World Furniture, both their in the they Noble. year. Authority, basically Fall also Sport rent started put replace tenants the in just in replace Yeah, Dick Bobs But put & paying then crossroads we it both of Plus Cost are those last the Both Goods to first we to grand and which was And had for on right

So three were leases the in question. those

Todd Thomas

Okay.

Stuart Tanz

has opening that they And lateness had time. a what and have closed which very a the once opened kicked good co-tenancy opened up the was of the than then unforeseeable later is an impact anticipated because because in Dick they news bit almost of quickly which co-tenancy opened.

really other occurred So is doing didn't all we KEM that and the rent was that And well. that see. news very paying the everyone is they're good and impact

going any don't see forward. So, fallout we from that

Todd Thomas

And Okay, or just that's helpful. Stuart last question Mike also.

lower the of terms rates leverage, debt-to-EBITDA in and somewhat current In for the strategy about bit basis. leverage mid-X guess. million you equity you what's the slightly year-end I little are on financing here? times thinking just you is a range with here, of more about $XX the approaching levels?$XX you which how Can higher today? talk But gets from overall interest million have to plans to delever moving What leverage model

Michael Haines

the bit that net we're is because was execution that but of partner transaction we equity the price think primarily to prudent have XX that and Well, below in that the through little I'm not kind the calculation elevated, We European pattern of considering ATM coming in stock of of conditions on year-over-year, didn't of working share, through of that issue the that's then any kind because where XXXX, the planning to continue was and to market didn't the equity we equity knock some issue total XX a limited that leverage, pending this that debt-to-EBITDA to down. advance had or a doing we in.

waiting to down. during off held to So, more net we to XXXX become that but suitable issue that and not equity ATM the from through just market were conditions debt-to-EBITDA

Stuart Tanz

maturities I Yeah, in as But the of Michael unencumbered pool which just mean we're I sheet is elements other all the really go The the have that's sheet down is the the it's articulated mean balance mean net I it mean solid. rock list. balance great rock, debt-to-EBITDA. on that Todd, the are I a shape. we is item focused

the articulated. the market watching one element certainly but see we're how as things of we'll focused closely on. Mike sheet the we're balance And go, So, that's

Todd Thomas

market level you Sure, at that understood. your there I is this as happens improve or what way if some look conditions don't other But is mean guess look at asset still to I sales much do you're delever? what then as anticipating. you'll elevated concern. debt-to-EBITDA

Stuart Tanz

at Yeah. can we we in everything. nothing at articulate open We there But of you our this mind terms looking to keep moment. can

Michael Haines

approach waiting like I this very But a think that's we'll to in going if the a a it to now, then it's very to cautiously. market normalized Stuart more becoming to temporary we're mentioned for taking term And XXXX. approach. earlier have see take issue is if that or case different it's cautious we're longer if the taking

Todd Thomas

thank you. Okay,

Operator

Thank you.

next America. comes from of of Craig Our question Bank Schmidt

open. Your line is

Stuart Tanz

Good morning, Craig.

Unidentified Analyst

Hey good more types with morning whether shop less Stuart. whether in could of noticed is or [ph] an if respect wondering speaking categorically for this last to And from changes any certain was Craig. year. the on demand this uptick from year. you this talk This just seen you've I time about is tenant? Justin so small far Or demand you've

Stuart Tanz

from be the into. is get you drive will a our you wanted I'll from To which quarter, business first to out let tell perspective date toughest shop quarter of but turned to the the But we've I particulars. to year, quarter small the one maybe perspective, strongest our in the into you Well Rick has leasing seen. first the typically quarter

Richard Schoebel

They're seeing the directors here first is they've that's back think years. in over than optimistic quarter and seen our that in more I activity leasing they've very about the future. been from past

XXX% internet leasing to new services further and space eager as our anchor that's we're all the now. being still and much been demand doing of And leasing from type terms are available. medical more of the strong, the which we've fill of that concepts get space leasing, the and tenants from our it's away we historically are in right resistant a primarily very them fitness out small where shop leased the with In usages space coming that same to past is retailers

Unidentified Analyst

appreciate the color and Portland for, you back buyer, does about I in or depending Seattle? the you on in California looking that the you that versus signs how that to acquisitions, need Okay, what your locations, talk differ thanks. step assumptions, gave And then guidance on this see you're but, are future can as

Stuart Tanz

markets really all, they've were better. only gotten have deteriorated at none of the Well, in

this we're years continue looking, more our and all what have seen we're thing the So, for we to have I XX know, three the Obviously, might look decades, watching we've we'll think of or of in lot been out up that so, Justin there. side taken across recently But as a close doing impact terms cycles. one still seen and to you we've the a that look markets.

is patience heads, virtue, our not great a lot a the have. has great So, is is it business put what virtue to although, us past people of a

grocery anchored of So, really, West the it's come other the anchored we're rates deals, pricing any bring right signs marketed moved. up bit. of have now, that looking interest forward potentially at Coast, widely cap out, terms not could a in But grocery fall may that

So, signs the point. it's the ground, nothing the at on product to we most specific various Again, in looking we're market. at that this can but still sought-after point

Unidentified Analyst

Understood. Appreciate your time. Thanks.

Operator

Thank you.

comes of question next Tibone, Street Green from Advisor. Our Vince

open. Your line is

Stuart Tanz

Vince. morning Good

Vince Tibone

calls, previous expected what's of morning. developments On Can driver 'XX, comment pad guys development on growth. one is you guidance? Good of you same-store NOI being discussed impact the on pad

Stuart Tanz

our is in correct? development - Pad same-store,

Richard Schoebel

in But a majority add-on. these Stuart not all different an But would various online there development wouldn't stages. in guidance, we that we're the as we guidance, half pad Yeah, the still to be the have not would in dozen or our later it's of come it's they're year. in working said, expect about that, so, opportunities our on,

Vince Tibone

that. want clarify to just Okay,

from rollout, So, would and property any be same pad be all excluded that redevelopments development guidance?

Stuart Tanz

Yes, correct.

Vince Tibone

year? And any you expect to half the for rough for back can is like there ABR out you as what in of roll in terms peg the

Stuart Tanz

it specific instances number entitlement but of front It's number, these have us. hard we with don't of a say, in just I tracking to because the We pads, have are and a process other to I obviously that me. build don't but need

Vince Tibone

the Okay. or And any portion portfolio, in considering in your any right, you then are thanks. in still near-term? All other dispositions Sacramento

Stuart Tanz

Yes.

Vince Tibone

leave Okay, that. I'm going at to

Operator

you. Thank

Mueller of Morgan, from is JP open. Our line next question your comes Michael

Stuart Tanz

Mike. morning Good

Michael Mueller

morning. good Hey,

in have move give to to Just sense to you'll markets, a interest would curious, could rates, start start through, what move? level rate or your of you cap cap see before to

Stuart Tanz

tenure to points, answer. to impact question XX-XX the a We've from year basis probably pricing. Tough no certainly seen move ago, with

referring in at dominant tell still really it's interest the sought Mike, points determine increase in is market XX least XX to I anything. years, hard you see the most products, seen, after profiles buyer sought-after in you Coast see of So, center the what my will That shopping country. we've the basis to all market, impact but the have. The raise the It's to it anchored you've to West XX grocery got in before with and would have shrunk rates. view probably most the the

question answer. it's So, tough a to

Michael Mueller

Got it.

Okay, that you. was it. Thank

Stuart Tanz

Thank you, Mike.

Operator

Thank you.

from Lucas One. comes of Chris question next Capital Our

open. is line Your

Stuart Tanz

Good morning, Chris.

Chris Lucas

would a Stuart dispositions Hi you any couple them the of for question move question. you on? building on the guidance dispositions Recognizing just are have guys. XXXX? for I Just entitlements to follow-ups, How you're I guess that some doing? forward waiting into is, for are

Stuart Tanz

in not it's our No, guidance.

Although, properties it's those balance we our close those sheet. associated there's no two the with paydown entitled NOI all on are in get just XXXX

right terms our nothing but now no there's in So, NOI that modeling selling. we're guidance of there's in that

Chris Lucas

the represents if for Okay. what at And you then spread value to that missed lease I the the around have I dollar this, but of know do base quarter? minimum fourth don't end commence

Richard Schoebel

to The amount be still received?

Chris Lucas

that between variance? what's book what's and Yeah, the leased been but commenced what's

Richard Schoebel

million looking we the end what said you We of $X.X spread that's have the not is that year the about for? at commenced that as about is representing that X.X%.

Chris Lucas

Yeah, sorry. yeah, I'm missed I just that.

Richard Schoebel

No problem.

Chris Lucas

I you. That's Thank all I appreciate have. it.

Stuart Tanz

Chris. Thanks, Great.

Richard Schoebel

Chris. you, Thank Great.

Operator

any questions I'd I you. to the showing at for Mr. Tanz like to am closing this back no Thank time. over further conference turn remarks.

Stuart Tanz

In closing us interest joining appreciate I'd in your like for thank We ROIC. of to you greatly all today.

you additional Thanks posted again quarterly the which is supplemental have or any you questions please company's our everyone. on directly. additional website. day Mike, find Also, can of information great package, me Rich contact If and a have

Operator

Thank you. Thank Have wonderful today's conference. for day. participation. gentlemen a you this and conclude Ladies does your

may disconnect. You all

Retail Opportunity Investments (ROIC) 22 Feb 182017 Q4 Earnings call transcript