ROIC - Earnings call transcript Q1 2018 | Retail Opportunity Investments Corp.

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Operator

Welcome to the Retail Opportunity Investments 2018 First Quarter Conference Call. [Operator Instructions].

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

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

would Tanz, Officer. Executive to I Now like introduce the company's Stuart Chief

Stuart Tanz

Good morning, everyone.

Here with Operating our Chief Officer. Financial me Officer; Haynes, Chief and Rick our is today Schoebel, Michael

is our off space another Demand fully for in be start. portfolio to XXXX to are As gets company underway, solid across markets we strong. the continues core to pleased report that

year's first year. has in holiday following quarter the of the case While us relatively the each leaf the quiet front been for that on season typically not this

In part lease fact, over driven ahead their their most feet well on quarter coming square XXX,XXX We first in for leases, active ROIC. tenants us record to leased proactively of to renew it's explorations. by been the

right in center to to daily fit safe a commented country. last being. to With terms for environment volatility each we're acquisitions, but this the to not the the activity located quarter financial in as strength With that well overall, given and on cautious one terms of through of shopping time previously in new accord retailer and the most in retailers on announced, the Seattle their we achieve demand that market, off at start continues best will in the minute, hottest respect based consistently draw leases, are we prudently we're carefully one to solid in their say rent go only mix. be details broad market, the that customers our to as in being In as center of excellent increases first slowed of as in our XXXX. also the the only continued mind, but of in which property the an the call, we Rich we making select markets the ability it's

Washington of economy shopping In with shopping The is located in in state are state the fact, there densely populated Seattle number developments young under having pet a in the best construction are of we boom ranked professionals. that recently center, Immediately that the submarket acquired was new country Tacoma, the the surrounding ongoing is leading which as multifamily toward our of way. center Seattle. geared

in process our in stop the upwards square long-term this center. million think feet. of market, of Seattle the in of the includes very With Greater Additionally We acquisition, city front Tacoma own lightrail promising. that now of directly grocery-anchored grocery-anchored centers expanding totaling a shopping the of system prospects X XX this we transportation is are their shopping center

other in located The mature, additional submarket one center we established of top-ranked where another is shopping have own acquisition that's which acquiring contract strong, Portland, a Portland, market. in growing centers. rapidly currently also are We located grocery-anchored grocery-anchored that we is under very shopping several property key

the all enhance ability and rents In maneuver tenants, we to shopping submarket, our of will and the will own value. move fact, with to new this serving add grocery-anchored which acquisition, long-term centers drive

the Beyond market. acquisitions, close a eye two on we keep continue these to

properties, are in be before, there's the there And properties continues many as while that aggressively past widely-marketed as pursuing several still to while market grocery-anchored market. the activity to it plenty that Florida in this record our well have from deal As the the shopping a rates west so last are level of year. or buyers and centers, flow generally is that consistent That's on in to aren't years, been that rates XX-basis-point metro marginally. across of about relates pretty compared the pricing the low far down still cap coast. the ones saw low-five Cap take, during moved give markets the year, the or grocery-anchored we such increase only has up on average all

thus seller of this centers, waiting we see people are off shopping Taking consideration, inquires the continue down. expectations current active to the market, of into volatility speak head, privately-held rates remains changed and market pricing to In direction being patient. to of all while once which settles up flow the far, much haven't interest will terms as intend

financial Now turn our the to take to quarter. the results you Haynes Mike? call I'll over for Michael to

Michael Haines

Stuart. Thanks,

first first months $XX.X million total revenues quarter XX, income, million GAAP or quarter shareholders for net the in the XXXX diluted For $XX.X share equating compared XXXX, $XX.X ended to to the share, XXXX. per operating the per operating income million quarter to net the $X.XX million $XX.X company GAAP income through three of $XX.X revenues March for and attributable GAAP million million total XXXX. in income GAAP of $X.XX as had common in $XX.X compared and as diluted was to first

first first or lease the $X.XX $XX.X the of compared share to be for displayed sold to million diluted from at that's quarter Included a of in the per terms million, tenant diluted property redeveloped received from first other and $X.XX In former of funds quarter, as settlement a as payment to $XX per a operations XXXX, quarter million equating totaled XXXX. share, $X.X during of FFO multifamily. we for FFO income,

comparative isn't of income, the total leased, compared which of of XX% through property the both at our beginning last since still continue the specifically which centers basis, space. coming quarter over year. operating we In all center quarter portfolio of encompassing shopping growth by same the center from of consistently of XXXX, to vacant that year, increased we've growth. NOI benefit X.X% to XX.X% terms full, from our about is owned essentially well with the for cash level last increasing the quarter leasing same occupancy portfolio XX% for of includes that first center XXXX, GLA, achieve as other on net first In our same up pool, as the mind in words, Bear this

organization working our properties folks management performance. property of Our accounting continues all consistent our to growth the our is possible. this function our to working working to as personnel working From entire roll entire diligently as hard together. leases recoveries, rents of coordinated proactively operator as working team higher to leasing to efficiently by If to team our that drive portfolio effort maximize drive

Turning March a the approximately and the At of company's sheet. in company balance $X.X billion billion to had debt capital outstanding. XX, total $X.X approximately market

coverage company's the the billion was respect debt, X.X times. quarter, $X.X first With vast majority the secured. to loan the For is of interest that

$XX quarter, reduced us of retiring the debt mortgage, to a million fact, In only secured first with $XX millions our we outstanding, during leaving secured debt that.

our million XX, of is approximately debt, with of terms bond we remaining of our bulk fixed-rate the at maturity credibility regarding average unsecured $XXX long-term had it line. outstanding X.X facility, on March weighted the our And In unsecured years.

previously FFO stated Lastly, $X.XX for with full share XXXX. we're thus track guidance, year the in of far, per and our our $X.XX FFO guidance diluted between terms of achieving on

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

Richard Schoebel

Mike. Thanks,

restaurant to the touched in where across space of as And there by the sectors, portfolio concepts markets. our that is on, other make a strong a targeted highlighted, and proving we to to Stuart of influx specific from new and demand most consumer. As growing also these retailers, seeing services, boutique-like concepts demand Canada. be fitness of an it. broad concepts focus abundance are the base notably our for to across continues be of unique of continue new continues driven be successful Stuart tailored retailers particularly and We're some as from being as the well large, By U.S very parts introduced, for are most

say customer with short, their most goal Looking to of In accessible down demographic that demographic the centers. to location at of they're safe profiles surrounding local and the astutely keenly national pops to from regional all retailers of mom specific target the their to with shopping the businesses the our bases. again coast, and attributes the and in and drawn parameters growing it's tenants positioning our today locations the expanding heart convenient, to west very players,

in thus our far specific XXXX. result at Looking

Breaking continue at representing to leased, anchor leased portfolio our March above our At At maintain XXth the down achieving nonanchored shop XX%. space. March XX.X% anchored XX.X% stood portfolio rate our between We of a that XX.X% XX, and lease at XXX% leased. full XX%. space was above XX, space stood at or quarter our lease rate and consecutive portfolio

most of quarter first the first date. noted, XXXX Stuart quarter active our to was As

during XX% which XXX,XXX of amount feet, more space the well square a renewals, anchor Off entire the of XXX,XXX the that year. lease involve of number of to that tenants. Specifically, scheduled their tenants key we leased half in nearly feet, expiration, of advance us, already came many to roll including than including total is square

notably increase renewals fixed involved below of market. options achieved are current renewals the we with these X.X% tenants a the increases solid of While are cash in exercising fixed increases. most majority A

to forward. continues be growth there result, a embedded As going these considerable leases in

available only this space. near less that XX.X% new that year, of have our is than of and given at releases, X% terms full limited means rolling amount leased is a portfolio In we of our XXX% portfolio this

grow As not the on property. our value growth tendencies continuing right only the focused our to appeal retailers complement that market, on to serve existing across and to we're such, also and bring Retailers rent the but enhance on of capitalizing and our frequency shopper centers.

Specifically, quarter, square you the increase achieving in of space tenants. to average. releases, XX.X% thought process cash example just feet our same of we give And totaling on terms selecting new rent during executed XX,XXX right the an a in first XX

we first one was regional tenant's expire, centers, anchor the theater had operator. which grocery-anchored shopping a During an of at quarter lease our

and space, number the came higher plan and stadium-style convert in a to much that us we anchor sitting retailers our to considerable sign is property enhance format. the acquired introduce consistent a in While, are get serve demand new the several In notably which a to a highly at will consumers requirement, bring chain, of several Furthermore a will and parking new user national can established new with interested the short, transaction wanting our amount the by format by perspective will in traffic theater corporate that drive now free the daily center. will lease up What downtime we guarantor, regional had our our of this lease ways. restaurants no long-term backed one rent, well to rent popular they to from space substantial been to meant new with increase could a had to reduced between consumer center. further seating property if whereby important to we leases in our dedicated the a high

in representing basis. spread this and end on year terms was at million a in economic lease additional Lastly, $X.X build of between spread cash annual space, X.X%, rent the

During our the the $X.X $XXX,XXX the account, together first which was the representing first spread the we move during quarter, come online, off million, rent, of paying Taking activity $X.X in leasing was XXst, that about quarter, hence first we XXXX. million approximately million March through with expect X%, into quarter. received million will the about which incremental as as of $X.X $X.X representing started million of $X.X

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

Stuart Tanz

Thanks, Rick.

of but our broad how our withstanding are. this business, of bodes Looking and relates very to it be for as and Not demand space is well new long-term to there lack well for the that the coast, especially supply. focused strong near-term limited given as space, given protected sector that in. our prospects the the for land west not markets demand available the just ahead, entitlement process future specific markets metro on continues grocery-anchored difficult Especially, portfolio

diversity of for future also our of well our bodes and base prospects strength business. tenant the Additionally the

shoppers continued our While adversely and to across many portfolio. country We the tenants internet bring with a by name as leasing be to focus daily restaurants, to in centers so like clubs, that on not sector, the impacted the case shopping spoke to necessity properties just retailers that's doctors consistently, provide like retailing, on, Rich off. fitness goods as entertaining our that and services dentists, users, well few,

largest, of fact being is from anchored. with grocery over tenants, of the today, portfolio XX% comes In that XX% supermarkets revenue of type our these given our

building we've portfolio fundamentals In Additionally, summer, innovative base and omnichannel enhance bricks that advantage value forward over implementing to built hard strategies at well to productivity. and to internet of today, of our taking as full strong across are look our the years full market taking advantage continue the the to work results. mortar tenants their as delivering and we tenant strong continuing solid

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

Operator

Instructions]. [Operator

of question Collin Our the line from Raymond comes James. from first Mings

Collin Mings

Just the start, Stuart.

XX-basis-point think remarks going this apple-to-apples mix to being in or the a done prepared move Just of about rate, your getting back That an of that the is cap of reflection environment. on kind acquisition comparison year? that should we a deals

Stuart Tanz

It's mean, mix But of to deals. I shopping It's grocery-anchored of it a what is terms in the and would a I metro mix retailers. of number centers. not specific it's better more call, the markets

So the it be end where -- different that wide whole of it's terms up going that is and be. but to is how to pricing every primarily going number across coast, west in going property to is

Collin Mings

upward takeaway cap pressure the I guess you. is seen the overall current environment. or you that there some in rate on message Got have

Stuart Tanz

it's the but I my remarks. said very it's in as little. And little -- margin, very on have, prepared We

Collin Mings

also then, the can Last how NOI you of store thinking point through the growth. just And the maybe suggested update And would XQ year. of you're update build trajectory likely the us the us of remainder on think the from growth you Okay. quarter, the that that and same be of do about there how remainder through of kind you year? terms about in year-over-year on low at

Stuart Tanz

articulated I primarily as expect our as same call, all when year, leasing certainly, rate that that's that call, we ramp head Sure, the but -- full move we leasing of through as I store we our think, well of the in we we've repositioning terms mean, as into to up, run in done anchor we've half second a the as the get done. year the we last

with continue some to So towards will very again, up some ramp the year. it and the it looks increases of like end nice move as certainly we

Collin Mings

and me One All it for over. last one turn right. I'll

there as something your out Just Stuart, size. has of about buyer about updated of I little a quality maybe They're the just a being talked terms remarks prepared environment. but disposition, buyers bit over lot we've in in been But the your it's several as down thoughts calls. far come last know that a conference acquisition deal pool context still there,

Stuart Tanz

year. expedite. we're there we a we're selling has assets think, midst talk as residential Well, through but looking the shrunk, through retail, the about any drug-anchored grocery, being there. in that have bit entitlement, completed pool buyer affluent are properties Dispositions, and which helping the the I have Yes, properties are to as next the all the, the out couple And we expect moved more at both for we well time as markets. in focus as certainly, again, a looking capital that's that I'll articulated, are more a of present is our to redeveloped doing of primary we as couple other call are what in. And at we regarding to hopefully of going

Operator

from of comes Citi. question the next Christine McElroy line our And from

Christine McElroy

Rich, leasing you to expand a today proactively those in bit. could it just record quarter early on the and the anchor or tenants you happening maybe think Is among space, a coming happening Stuart Just, you that's do to shops space more expand this smaller volumes in you bit. the both that and on more renew, Why about market. comments talked

Richard Schoebel

if mean, mostly Sure. anchor I the space. in activity probably you

or into cases, leases want to of tenants term. bit some are have one stores in put a of they the than to and The options need remaining. coming I there they our are anchor that think only the with are the many themselves. no term looking that capital They anchor committed remaining available further out up option

their in us require they earlier invest would so than to, that So stated option them space. bringing to capital them the to it's can come

to invest fuel have because now want this our There's to to motivation, they We coterminous Kroger they it's station. adding it they of location. extend one want store lots usually out of property, so with the new grocery to the fuel in but be

Christine McElroy

improvements, regarding tenant value value enhancing the X. expansion related on or is the the kind talk And some sort difference disclosure Page activity. improvements the capex to Okay. Can of redevelopment about you then just and enhancing of portion new between your

Richard Schoebel

break recaptured or say those the I in associated And with lease the TIs some the to But the regular enhancement from situations, Yes, where space. at up cases underperforming properties we The and of retailers ahead higher to TIs years of rents. release expiring acquired it enhancement shop space. value those wouldn't is stronger redevelopment of primarily expansion. TIs are more kind value

Christine McElroy

Okay.

So all this of still? it's leasing sort normal CapEx

Richard Schoebel

a In sense, yes.

I repositioning in primarily one is spaces more that to finding release at Many we spaces and what are anchored going mix versus one call, to west. looking waiting tenants. look just these we're with vacancy the at just spaces tenant of think, than the where and vacancy playing that the, small-shop at renew really reconfiguring more the mix offense demand and and them around the sitting for leases. their We tenant versus we tenant

estate ability have the what's at versus just We look then to expirations real and lease the there. enhance

Christine McElroy

just Got then, Collin's lastly, Okay. And you. question. follow up a on

You it's So bit margin, your dispositions talked doing, that have more what what you public/private that risen extent has extent disposition? get the to cap motivation exists there? about bigger the you're increasing that market at price by last but the to implied putting even something you a to more this buybacks or towards talked your today? share gap on over And aggressive you maybe valuation year. it whether your motivate reaching does little To about but meaningfully stock cap rate the or

Stuart Tanz

need more I think gone sector think has of Certainly, Well, the at debt the look one in terms we at as the really more wide thing get been the year. looking teams. And looking really team understand management this best the and the dispositions gap And to importantly, through thing that to the to is present going when ROIC. is that I is, years. for with to today at We've tested quite investors But you're we feel many seen occur things being we through say. is quality time. many battle with do patient over one management portfolio high We've recessions. have, move as we the

at importantly, and reality and box, that, at But outside offense in the other great in buybacks, be that, West is playing news is good the we're increasing looking are to we looking and a the certainly, proactive on more Coast. things. the we're So thinking share position staying very dispositions

Operator

next from Wes line comes Markets. question RBC our of And from the Golladay Capital

Wesley Golladay

looking lease versus we're X% of Stuart, sense growth how that expect same-store gap at much from is we in a this year? Or pool? just economic? the non-comp pool versus have outside should Do the

Stuart Tanz

We don't don't -- me. have I down of broken front the that in know

So I answer time. really after you couldn't call. give with at like this you to follow-up I'd the an

Wesley Golladay

Okay.

at Sounds that good. are you sites? you're Stuart, of you anymore assets? also Are playing still looking your any to control incremental dispositions of offense. gain And you looking non-income-producing mentioned

Stuart Tanz

I at the either opportunity center in say. land mean, But we the even answer terms some an terms couple is the of is our normal yes. that one within that's our of as opportunities maybe or centers a We're of looking in business of repositioning.

are about could but just be at time, present terms focus on, headway that we're there. the but talk estate. Dispositions, we looking think at in continuing I of real to some making really nothing the it. to And

Operator

the Wells comes And Fargo. from of question Jeff line Donnelly our next

Jeffrey Donnelly

on, thanks guess, for commentary guess, I markets. I capital Stuart, the

just for mentioned You or curious, what up of buyers showing your I'm sorts in backing transactions. fewer away be showing are up that opinion? buyers not might there

Stuart Tanz

looking as are longer-term to short-term. capital. many don't syndicators, their relates that really that These Certainly, much investing are buyers deploy to We it people see private a really companies. on capital speculators, as are

But I out us there But they the So capital. patient. Whether buyers. watching think I are in is there the profile. and available buyer it's And impact buyers of terms thinking It's it's about X then that, like What of do might sort of financial somewhat as and rates of go are of financing institutional then, is the there there's all are I -- think much are think that pool buyers. being higher market cap go? somewhat a under-capitalized in They bit or terms having where of hear lower? number why and XXXX out combination we a for see the markets smaller. not an

the an having impact. what It's really So that's the seeing really that's at present market of those all all time. we're in impacting

Jeffrey Donnelly

that where year two at people access I financing to think a XX%, not I'm of LTV, think to threshold it's you debt be and basis. years sure do the down, out? think dropped you is? available was a readily of XX% Do pushing loan-to-value you if regard it is kind it Like or proceeds or it's or guess? ago So on financing debt access today that is in ago may

Stuart Tanz

and debt the of I access. its think capital the cost its

Michael Haines

the is Actually, the little more of the pushing I the through [indiscernible] a discerning think is, quality borrower where LTV the and down credit on lender bit depending borrower.

Jeffrey Donnelly

steadily deals And to I five-year guess? out a coincidence, then, about Or is that average closer six-year gears. quarters Or is seek to your on noticed really Is to term there that something up leasing? driving of of it deals? the decision? for in just just effort term I kind else deals. lease is concerted deals, to few bumped it from Having way switch last to just that, kind up nonanchored

Stuart Tanz

term probably it's because tenants. a of out think trickly The term several getting hard you upfront tenants want an street a mostly that typically it's coincidence, look they do when commit option. I to at committed bit to out a although that will one-way of more options we get require the take hand

do to more committed we term. make So effort an get

Jeffrey Donnelly

quarter, scheduled could do recent that about slightly about XXXX rents or you year, decelerate much Last higher answer, just either similar leasing wondering, and the at to I but was a expiration guess, hurdles over expiring what gap face aren't new is is to I'm rent X% sort or expanding simply XX that's I look rents market as it's months, that be the shop that and average the renewal spread in maybe and than this when achieving, XX X%. X% might shop think you're your however, last like spreads XXXX. because a you This year? most did this that year instructive next of in

Stuart Tanz

I year. last don't hurdles higher any think we versus this have year

that just that particular particular in the around quarter. to I moves on deals think that done number depending happen be

hard to really of nail a give a down to you'd -- run still it's down a the forward. there's -- see within good that So better lot going rate portfolio. But growth

Michael Haines

we a to Jeff. don't as Yes, see XX kick Remember, we we have every that which days, trend, report out this days. articulates so tenants many XX within

So -- don't at is no, -- we this see this a all. trend but as

fact, second the cases, see of In a continuing very number, X% renewals and on mark-to-market right quarter in as we're we're that number higher in strong, number. now, that to our than the

Operator

Hoglund Jefferies. line And question our George from of from next comes the

George Hoglund

is, question just line balance, First stock any price million year-to-date? on of performing $XXX the updated terms is thoughts in kind how million, of $XXX that, given the

Stuart Tanz

on tail down, everything only the debt. is fixed we're of can repositioning initiative kind the pay long-term rate of that's The debt doing. proactively ones else end we is available Well, major the

in free Our be flow the is than delever. past. to should recently this cash Most higher year

is So it be. obviously, we would the price where to like stock now

Richard Schoebel

end move combination it that will to free of be some massive of that will flow tails cash So a continue to revolver...

Stuart Tanz

our of debt. end Back

Richard Schoebel

Down, exactly.

George Hoglund

equity any it kicking to your larger or other guys sector the everyone there think at you appetite the sense is broadly, Okay. And And just just What's center people on Do M&A in like from entity are just transactions? out capital sit happen, you looking environment? tires hear of starting of shopping the or still just private there's there discussions kind on sidelines? more then terms is level out an

Stuart Tanz

at don't think hear spending of versus their say. all. and get M&A an working perspective, chatter from time are and other a trying as to lot much real out go I the companies certainly bigger we out Well, And there I estate on

has are I more and that today be management in of the advantage, team, the team, the we of there that's think with that much out just that management one think, see smaller I more an the certainly might which focused is you a market bit terms that, out focused playing the the changes thing means retailing change in certainly in companies which smaller, dealing with are changes see coming.

an or don't perspective, from I I activity the in hear sector. activity. M&A don't much really there much see think will So be

some take at asked M&A said, who to to through think bigger as I spoken on I've when of box about currently what it other there I the why more have want primarily. the out trying retailing, when of some time, relates CEOs to, present to of would I the work issues I've I'm

Operator

KeyBanc. line And question Todd the from of our comes next Thomas from

Todd Thomas

the whether been question, same-store just and the that to I First throughout X.X% half. just on NOI X.X% that all growth for second at expectation any wanted clarify year? the growth ramp you'll see to to change there's forecast the full

Michael Haines

No.

that maintaining guidance. think still we're I

half, a range. than second us it first to guidance QX I we to the in and make we're But want would. little bit actually lighter move be overall better the came enough think, what we half expect than thought the to not

Todd Thomas

prefer proceeds where today? can and be there And buy on the that about to to think are And here -- Okay. -- two that then, some will throughout should a you sales leverage? slowing that the 'XX, extent reducing asset you you're in then on redeployed execute you Stuart, or there are would -- any but sales that's assets dispositions, things. how bit. change little embedded considering quickly, pipelines asset know how we I mentioned guidance? the Are when

Stuart Tanz

go. -- mean, some I as both of we It's from would in capital sell that that assume we a stuff really. guidance, our combination deploy we we that we

basis, net-net on So change. no really -- a

company OP in sourcing there as deals the out still NOI forward, good we However, have for units bought look off-market of as that as there opportunities is growth. well doing terms

how really that's sort of in capital the our it's churning And the things. model So guidance, we've of Todd. terms of

Todd Thomas

of terms renew I'm Rich, you're you then, little much implied negotiations compensated how rent Okay. just than with that do in what this, would for activity you those early. curious, GOA just a bit? be type better to tenants XXXX? you today. getting by of this through in a approaching foresee us how market also, you're those And Can mark-to-market And walk of much

Richard Schoebel

as to that we we opportunities. certainty up. mentioned, have early, really some options at We with other put perspective, left. that want GOA. these when anchor deal from they We any now A conversation know footage The proactively know that predict million couple start a I target don't renewing with that fuel, couple but come in Kroger I also hard a to they that's deal our I get way may we into little that we where putting lease a square don't have store. there's can to a years. a any look particular mean, comes so reach every We out something dollars up, tenants. they're in good time obviously,

are now early. to we're another trying with that, location. We option them going an Together have exercise

scale are dealing one only at not and an secure we shopping we're center, with shopping our bringing to So tenant using center. in anchor another

There's about every So working we're single day. no doubt at it.

Stuart Tanz

that retailers. sought very here, the a but in think terms and and portfolio quality high very after of I located is Todd, the that team team, management key very fact And that well

the you're in many I of market now. right seeing actually deal So one still tenant assets in the in think that the leading And of have relationship. the the in having don't this other power in that with to quality that's about terms having their all we other We're when we're charge being locations. landlord ability and retailer of places. go we And talk markets and retailing too

Todd Thomas

the also that elsewhere that's some and And Rich, how it. sense just And examples, retailers give provide Can Canada. just just about coming some that helpful. Got deep to in a demand from West maybe are and is? us talked You then Coast from U.S. for lastly

Richard Schoebel

has leasing with this available. team impressed our And we mean, few think very quarter offers have they They coming that have I boutique-type they from multiple it is on just that of been I very this spaces have. offers amount first have very of the operators.

very to been to that to very very real So located it's we've -- be are new these estate concepts have fortunate in. eager well be

in seen the about from when amount which XXXX our first the team demand is of is the lowest quarter, they've activity. So usually optimistic leasing you just have that very

Operator

Capital line the our next from One. comes And Lucas of Chris question of

Christopher Lucas

Just little specifically that the Michael, same-store was? us than better point maybe forward NOI help stealing you the expected. mentioned there. a quick And you might year? better-than-expected that that couple is of that would came understand a it can exactly number what expecting you -- you the have bit calling anything ones. to are drove or sort been that what later in Or Anything

Michael Haines

same-store pool. nothing out the centers usually stands different portfolio probably individual. in of that across small collection amounts of But the Nothing It's from the we're a

Christopher Lucas

front? the tenant Things Rich, on that then, year, tenant question or that to retailers retention with last you before? And to sort this guess compares have is really of year or year the of What I worse sort fallout. seen better

Richard Schoebel

I it's steady. would say, pretty

by bad involving tenant tenants. there's In very terms rate debt regard was of in XXs. terms bad going been year-over-year, mid-to-high tenant made quarter, the remain to that, debt. handful I reflective tenant only no fallout. and of the just retention of first of and our in In they The shop kind were in say those increase in would

Christopher Lucas

And Great. last Stuart, then question for Okay. you.

to Just are unit current you -- stock that the you What pricing negotiate? to are of relates relates relative as you you willing willing those market where How of valuation of sort it except? it sellers. flexibility off sellers with the to conversations to have level of potential that to sort have

Stuart Tanz

moved. pricing Well, among expectations haven't these owners

been So unit valuation the this relationship to favorable year. hasn't

of in underlying issues been current the that's doing one our So of transactions. sort trading OP of terms

terms I the sellers that current certainly are looking valuation still even of my Although, in XX with price at stock in or at higher. a discussions think comfortable

harder, on know us a most for the looking owners So other know are these of estate, and real the our the becoming but bit horizon short-term. well, hand, investment it's long-term versus

So of But from the things sort important. sit as volatility the perspective. in them a for where is not market that's transaction

Operator

our question Craig of from line comes of And from America. the Bank next Schmidt

Craig Schmidt

that's property same-store run quarters, up a remainder the The your rate for NOI NOI operating good wondered, particularly seem of up if ratcheting is expense just the your growth? X.X. given of the on same-store I

Michael Haines

time right, trend, it's it's were more of building of think the function it run we not -- but a don't ahead. certain Necessary was expenses indicative a

Craig Schmidt

to by but only the expect we revenue operating maybe growth stronger So NOI expense? climb bit not little less a can

Michael Haines

Yes, exactly.

income recovering Even income. those at ratio tracks the as though that our same-store look If recovery expenses increase, with you well. basically overall recovery

Operator

this no closing over Tanz back the would remarks. I'm At to showing for I call questions. time, Stuart like further any turn to

Stuart Tanz

like would I closing, joining us today. In for to thank of all you

for and We please If posted month, website. are you Hall of next South Thanks which Avenue. can great our in the of And XX, the is you day, all on be you quarterly and our that there. you lastly, Street booth, company's which in have directly. additional to again, in convention Vegas ICSE corner Las package, starting questions, XXth stop attending the please additional contact Mike, have Also a Rich information those everyone. will at May or supplemental by hope find see me

Operator

in Ladies conference. and gentlemen, participation your thank today you for

Everyone, may You day. a have great all disconnect.

Retail Opportunity Investments (ROIC) 26 Apr 182018 Q1 Earnings call transcript