ROIC - Earnings call transcript Q4 2018 | Retail Opportunity Investments Corp.

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Operator

Welcome to the Retail Opportunity Investments 2018 Fourth Quarter and Year-End Conference Call. Participants are currently in a listen-only mode.

Following the company's prepared comments the call will be opened for 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 Stuart would Chief Company's Executive like introduce Tanz, the Officer.

Stuart Tanz

Thank and morning you, everyone. good

stocks. Here Rich underlying business our our is, Schoebel, Michael XXXX fundamentals today core with Operating and markets remain West Chief our REIT Officer. Notwithstanding me challenging Chief sound. The and our a haven't of Financial Officer; been Coast Haines, for year

across for remain In space strong year. fact, our throughout the portfolio demand consistently

make of worked we most it. the always, hard As to

report efforts, front. As again We a operations amount feet our X.X very of leased property for posted during result pleased over we activity new company. million the that year the of record a another square we strong on XXXX, to leasing are

high which We consecutive new portfolio the record of XX.X%, end also of rate finishing is achieved lease fifth our XX%. now year year above

Xth growth. the we posted again rent releasing solid a for year Additionally, row, and in double-digit same-store NOI posted growth

on new excess fourth the for in consecutive year, rent we leases fact growth space XX%. In same achieved of cash

intrinsic value key during competitive and long aimed our the we In business. and term achieving addition also embarked operating to initiatives, on several property XXXX, strong results, strength of enhancing

disposing is initiatives certain of the properties. non of core One

for portfolio. a for $XX we target objectives week now we to property that XXXX, property is a strategy core no just fit We our properties for last where $XX reasons and started this leasing million, in achieved selling such sold of strategic process second our sell one longer growth million. with are Our have variety certain and

We close one totaling properties up to extended around has and lined we occur sell also two the an to expect to $XX several in which about months, have expect been one which closing million, we next another that mid-year. another

a Additionally, we of are on. process bids receiving in property currently the we have that fifth

that other are leasing with forward later of are objectives properties several year. we've move Beyond the to finished, this had process we once would in that that hope completing we we selling

shopping densely additional The land strategy second we location centers. goal key housing the where commenced development to on along XXXX, XXXX long shopping attributes value In is is centers analysis, populated careful strengthening needed adding certain intrinsic communities densification is yet in in the essentially a portfolio successful non-existent. that our is potential multi-family would capitalize new strong a in available of if The center. of term densify increase our of the identified we competitive position to XX by have which that comprehensive component our each through with for

mid-X% the partner As in in opportunities of where project seasoned as entitlement the we To properties. the a have million a pursuing we process equity. now expect investment XX to three In three looking months, contribute over different joint development as XX-XX with developers currently intend each and six Together multi-family the mitigate land we developers. vetted risk, it's ventures establish will with past projected range. unlevered the we our we primarily represented on to total start, are $XXX return

the to benefits our believe portfolio this early in projects we While, and stages strategy take will tangible the that firmly position embedded time realized, we future. be value serve to will are so on for these the unlock economic better

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

Michael Haines

Stuart. Thanks

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

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

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

increased of year XXXX, fourth $X.XX diluted full $XX.X share. the of both XXXX center for million or or and of net the FFO XXXX fourth to FFO for per million the the $XX as compared X.X% operating for totaled fourth quarter. Same $X.XX For diluted income quarter share quarter per

to Turning and balance our financing sheet initiatives.

fluctuations minimal Given exposure. we careful our to throughout floating XXXX, maintaining interest rate rate paid attention

three XXXX, keep our overall fourth a XX% forward. blended to a end, that which from additional in term our and significantly, rate year loan, the ago debt. its keep million over worked about You years in lower rate only To and fixing to through X.X%. into on it regarding level, is our Today, recall year minimal fixed it bringing years is quarter debt floating during effectively that low floating rate may is three steps only XXXX, our In rate floating of down at have the entered to plus million our debt rate $XXX goal we agreements at had loan to XXXX, the XXX going line we same which took for we the swap the we floating the that now level XX% the debt our of credit end. is at next maturity rate outstanding

addition as In schedule. maintaining of debt, debt a minimal our amount maturity also to our floating we portfolio, further rate well to well-laddered worked XXXX, as during unencumbered enhance

unencumbered paid mortgage GLA off totaling increasing During total two XX% XXXX, to $XX we portfolio. million our of our loans

have stands in as XXXX, unencumbered. our forward, at no maturing And only in As debt as remaining, today meaning we XXXX. are shopping four debt no mortgages debt centers maturing it well of looking schedule going now, we XX have our XX maturity

and have In that comes extend the matures isn't to fact until when ability we the maturity. the next XXXX line for debt renewal up credit our

out to Looking year. each our XXXX and debt further are beyond, staggered and maturities balanced nicely

equity during our of shares million roughly interest issued of program of common respect with XXXX capital coverage chief we our net through ATM entered financial is X.Xx we of terms raising coverage. X.X XXXX, about year $XX.X Xx consecutive million ratios to an With In our proceeds. ninth which

number down the ratio at its X.Xx terms very of to total debt Additionally, our low we ratio net EBITDA secured ended to mid-year X.X% our end. debt X.Xx year of in year a it and at lowered assets from

We continue to down work that further. on bringing

assumes diluted to guidance the between the XX be full year range The million use we for that we per high low our a sale from year, The the of sell year, end of the the pay down assumes that during terms end of FFO dispositions proceeds in currently of and expect new debt. XXXX range properties acquisitions. and proceeds for into we $X.XX the to reinvest $X.XX the share XXXX. at Looking

on basis. and same-center In between growth, year-over-year of to NOI be a expect terms it we X% X%

takes in loan account $X.X just our on our annual the to guidance mentioned no interest adding our locking Lastly rate million that I about interest term expense.

requiring change the to account leasing takes cost into than that rather internal year takes guidance our effect expensed capitalized. be this Additionally,

We expect million $X.X about will to change our that G&A. add annual for $X.X

takes accounting from new share guidance $X.XX the added and into a $X.XX account FFO leasing change. or expense the swaps So

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

Richard Schoebel

Mike. Thanks

Stuart perform portfolio continues very to As our highlighted well.

consecutive lease high Worth very we fifth improve at for to of continue each consecutive have been the Notwithstanding being we quarter a five finished a XX fully for capitalize above as XX.X%. space. year not past quarters. XXXX noted, noting, above the essentially we we to consistently finished have demand lot record finishing leased a the on with the not above XX%, and portfolio past rate the XX% creatively tenancies with and rollover, years every only For strong of lease year work Stuart of XX% hard

In and take the you million that total, fact a feet a through rents. feet XXX,XXX amount in including growth leases we leased And renewed during XXXX XXX record achieving totaling a was XX.X% during square a rents. space achieved leases new square we amount scheduled As we leased new to cash strong originally renewed releasing expire. XXX total on, To roughly than leases of Stuart strong same XXX solid square the cash leases touched specifics, more in X,XXX,XXX executed increase we again space spreads. and totally of X.X including double X.X% achieving increase feet of space, we in in our XXXX

we a in in terms square fourth leases XX renewed feet XX% increase same square cash quarter, square cash totaling increase XXX,XXX XXX,XXX a leases rents including totaling XXX,XXX XX rents. space executed XXX totaling feet and In we leases of the achieving new approximately feet XX.X% achieving

below of it our seek release out recapture to strong our space key market initiatives much every stronger to effort driving opportunity underperforming tenants. for One constant and the to is results

have to perfect few leaves, anchor an demographic the Just the a two several past that fit such at grocer pad a the ability spaces to brought center. our is centers we part centers replacing additional anchor old of profile. of that restrictive we a oriented for eliminated this value we highlight new each shopping the and at recaptured as now examples, of At year center's provisions one develop during

a burdensome to retailer stronger now and be expand an process at underperforming to another center the forward. national center going parking enabling a restriction we we Additionally, a in the shopping us new much tenant position in with replaced removed

as blended base rent. replacing old tenants, these XXX% anchor part of Importantly we in increase achieved cash

XXXX, paying basis. representing the spread of tenants yet incremental annual signed meaning have newly Turning on additional taken At base build between cash the of space to at lease economic and rent commence $X.X that spreads the X.X% occupancy stood million a beginning and rent. not

base occupancy course our of took the of account XXXX, $X.X of million tenants in that tenants new rent annual million our $X.X economic of December cash cash XX, representing all at additional of as into reflected XXXX past of rent million the During during leasing flow. a in the Taking together million occupancy took on and commence those X.X% XXXX was XXXX during paying that stood year, represented incremental $X.X new which the with activity spread $X.X basis.

Two to at we Looking options. anchor exercising year. anchor leases already have ahead have currently expire scheduled of renewal indicated that tenants six they the will XXXX, their six be this

foot are same retailer scheduled a are term substantially strong negotiating on lease lease One long respect in of and them renewal a negotiating a where other to the the solid rent two very doesn't several signing space get national with we six potentially square a in we doesn't With of releasing working retailer new XXXX, anchor we're and a the involves also option market. and other expire currently anchor one increase below XX,XXX leases that the that option, along with that to another the a renegotiating is have to properties. new a expiring have other new we other renewal anchor expect leases currently

XXXX. terms in leases non-anchor scheduled In have to tenants, expire XXX approximately of we currently

We renew our expect past this with to consistent performance. unreleased space

be we in senior at feet, our densification completed rent XX square respect annual later about in are currently $X.X with X projects year. mid-year. Lastly which totaling housing respect fully which Shopping to to complete expect planning currently most densification that construction efforts, by Center this development million to are pursuing currently on is total multifamily estimate across are and once of return to includes we pad could in Phase opportunities and the XX% our early on Seattle pad XXX Crossroads XX% equating portfolio year, With we these be will which we have In stages. units track finished about an XX,XXX is add next

developer. of the for ground those familiar not Phase X, we to you a lease For parcel

incremental receive part own total additional pre-leased. space annual is we about However the that as to have the floor X. in of retail $XXX,XXX retail the rent Phase already of housing Between built ground ground which expect rent we rent the and we fully being from

design with we'll Phase XXXX a opportunities contributing and position that developer plus densification mentioned, XX-XX ground to is feet of be it floor In Phase the terms The three over square retail. our interest. next complete the of multi-family X apartments the joint Stuart of for venture to as land Crossroads, which current process during structuring hope X We at XXX and be XX% us as ground one includes break in a year. with entitlement a XX,XXX

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

Stuart Tanz

Rich. Thanks

As our indicate, operating continues at and a perform leasing strong level. our to results high firmly portfolio

We expect XXXX. that in to continue

are open in XXXX. the incremental flow bringing We on million highly annual on tenants line $X.X focused new getting cash in

growth embedded on below capture at highly portfolio strong the we Additionally, demand, continuing leases. up work to market focused and ongoing improve to are the our tenancies freeing in in unlock space

the point be our tenant tenant always today continues cornerstone the our solid, rock across to that we base While like businesses to mix important we're improve out it's looking of our to to say. portfolio, as always

years the has with suffered portfolio. the with not many Over landlords been past retailers, our case tenant box bankruptcies several regarding fault considerable that big while especially have and

the almost ongoing flow very eye with on and indicative exposure to running our up is and managing base, tenant as diversity strong of consistent of limited cash well as always our portfolio speak and none hands to risk towards our quality is Our been our has approach downside making sure reliable. a proactive which

cap of rates was of we markets uncertainty increase a of year. terms Accordingly, approach prevailing would cautious through that move acquisitions, the a much on the with as in expectation XXXX Lastly we and took our stayed across through lot there sidelines.

While Coast is was the XXXX, and record progressed shopping increase saw marginal low that become as in pricing quality the see in we grocery is as the West a markets held our there off the in from on uncertainty cap year. seeing, move through what anchored Today such early rates more steady for centers we acquisition based the continuing market year XXXX. and here we market subsiding are opportunities could we that favorable across

As Mike from new we centers guidance of XX touched sales our shopping fund million on, acquisitions. the to asset of that acquire high utilizing assumes end proceeds will

off continue to market private we with a explore to assumption, phase this Beyond ROIC interesting opportunities taking sellers field currency. number of wanting

respect as properties take to and growth said, sheet base target. approach north fully to seeking the intact, year. to can structure we move of every Therefore manage smart our portfolio, opportunities keeping focused pursuits. XX build densification only be yet on just also we we we forward, will our guidance in but conservative as through ever could with external continuing opportunity longer we out not term Assuming possibly as proactively on these assured acquire know early that accretive too terms to in XXXX. lease million through as our will acquisition well acquisitions balance Rest value how our that continue play it's notably a this to With market out for

and Given of the of with be anchored underlying markets today a our future continue portfolio, our grocery excited about prospects our business. to we focus fundamentals strong

will up questions. we Now the your open for call

Operator

first Wes [Operator question with Capital Golladay Instructions] from RBC Markets. Our comes

Your line is open.

Wes Golladay

costs? go loan to want actual construction projects. the back equity be defined construction your land for densification of getting to just that the on part for contribution the planning the the of Will I you the

Stuart Tanz

yes. is, answer The

Wes Golladay

remember delays new for Are Okay. some NOI of last I year's permitting, contemplating in issues And this for would you guidance? then year, same-store permitting. some looking year for thought into carry growth with same-store in the the had momentum maybe build more NOI. some this up guide that I you

Stuart Tanz

are estimates process is still Coast West The the conservative. on cumbersome and permitting our

Operator

Christy from comes question with next McElroy Citi. Our

line is open. Your

Christy McElroy

comments of made follow-up on some end a the there. that Just you at the

common going you terms mentioned So, just how equity where I'm also in you do cost a be could for strategy? allocation market above You capital trying not you of funding think do about well? sense the if about think at of you're $XX end to could I thinking for your units, OP up but potential pricing by opportunities the million, issue just but get and as point? how acquisitions capital dictated the that

Stuart Tanz

of have guidance. no issuance in equity our We

primarily. those currently articulated external number units, we with that So going had trading. the where in we're well but issued as conversations we've primarily sales in growth private And are through the are where cognizant anticipating stock is OP a through of of price speech, asset sellers, equity gets our we terms given

Christy McElroy

I press just to very terms to And of say, assumptions we in and guidance, much then the adding Mike, appreciate release. want the just

for that. So thank you,

a XXX XXXX? us trying to would give non-cash get that sense FFO? you and look can your Just expectations what FAS for for relative in rent off to the like burn Just

Michael Haines

Well, recently, XXX straight over But obviously depends our our XXXX. anything since leasing also off is we that line haven't going in been in burn FAS naturally time – rents similar. acquiring to on activity

year, FAS Kmart. to from end from at the to that's back XXXX. pop Going of QX Kmart, down acquired XXX, going although, that's the rolling we think a QX we're in in expecting I last year, hit

Christy McElroy

So about year XXX decline to QX? should But in the it should full - then that we year-over-year? XXX accelerated what would versus in expect be that XXXX,

Michael Haines

naturally start Yeah. It'll Yes. off. burning

Operator

from Collin Our next Mings question Raymond with James. comes

Your is open. line

Collin Mings

to about remarks $XX activity there like disposition we how if along Just next match And just on proceeds are those thinking in over those that to on the so? Christy's the kind picking the on see meaningfully you could where isn't front? million leverage or of up even question, year guidance actually prepared lines, for just acquisition you'd down exceed a get

Stuart Tanz

yes. answer The is,

sheet. want you to could I terms know comment disposition in on of a more bit the Mike, balance if the see don't You side.

Michael Haines

sure. asset question, think part sales We're of on those meet we net be assets to below leasing to But to dependent dispose down get where of would keep are continually I the again them. it those that the we to to going second for position that objectives X focusing want whether your

Collin Mings

And more you're going on kind to different had then having just back talk different partner partners. you bit with kind of as with think of just term little expand efforts or the lot of far you maybe key the a ultimately looked you as of business Can the repeat shape see conversations about the and one partner attributes it'll beyond and having we what identify as do our potential with multiple densification near assets - you've to of about take and a think partners? three

Stuart Tanz

Well, lot that terms want of really risk from associated we've separate to our had private, a partners in densification of that to sure demand eggs we the diversify basket number having public in one developer. we make can one We with try of players process. so the with the all

are I of would giving we at within developers, portfolio. first talking call these However, a opportunities densification what about look other our some

quite quickly. moving So, the process has been

We we're two has several three nothing here identified partners signed yet. although sitting the have as making on today; good of very progress. been projects, we're But

at answer put importantly, partners. don't more to aspect. So add the that's just really we made Mike? want And to getting anything be going partners with question, this are the I then different these and to risk if know of to we point progress different that, you want terms in road on excited your projects, diversify to very to down to try the moving

Michael Haines

sensitive partners, being We're to covered you being our product location. type selective all. the very about think it and the I

Operator

BMO with And question Jeremy Management. from Capital comes our next Metz

open. is line Your

Jeremy Metz

I'm fully and you to the the street it a there bit was wasn't here want guidance. was was. where back to go It XXXX. seemed to coming here of appreciating between what just just just think understand I the trying street disconnect where maybe a into like

about of on new think we call the some known, lease from been well have accounting talked the swap your radar. last dilution dispositions I the was

think So where to the some also of just here really and of lies. trying some that through bigger drivers maybe upside

Stuart Tanz

and new to articulating the fourth One, a the think very two penny. the of good start add additional I Mike? we the terms a side, then what will I accelerate and was quarter probably didn't the was guidance. have spread move in G&A as of just half in in, we We penny's Sure. guidance; of our important traction things. which that that into a bringing two another in to penny Michael are certainly a did terms in your did year. But call the swap Well, did comment, fourth and quarter think I lot that primary job those going drivers would to which back of

Michael Haines

the the It's Those are just the from the from we it. pay dilution debt three minor swaps If down lease SFL. interest with accounting changes. expense and

Stuart Tanz

And in terms an a like of had would impact. did G&A. increase have we then of you normally That bit also have some

Jeremy Metz

Richard not nothing on there's the mentioned an one necessarily, so renegotiation some is of of I tenant. really drags There's think And maybe lingering, there anchor items? that's no that

Stuart Tanz

year from Well, coming the big termination fourth Santa in wasn't back increase. terms that until dragging come there come of now as was existing of think quarter part correct to if year, Teresa further XXXX. is down. tenant that third that the that later drag was it the bit in from our will what the of guidance drove the the in I at That of our a guidance But which won't in I'm or in

have out didn't good in issue anticipate pickup that us the anchor for our did that one ability that repositioning may in news is in we we we there's XXXX. downtime, of pop on XXXX. of other. undertook What that Rich The that that been terms some up guidance has there's do in nowhere there popped that substantial else, So given rent that went to

Richard Schoebel

be to Yes, loss new as the anchor in out it's we're opportunity tenant. on think bringing there NOI not take some you as an know itself, these as when particularly is I spaces you're presents and anticipated when of you touching going

continue because on us hard you West good to at playing and to look and into be really XXXX to to off The little the gives transact. still can an value impact as don't point. to when that that So this you're we know the always is have able drive it's Coast news ability going a forecast we're

Jeremy Metz

last perspective, for are year you if I this the appreciate that. just relative couple maybe of have much I And years Yes, where you haven't? budgeting a had to from expectations the perspective, bad in how you some one come debt and last maybe

Michael Haines

bad which notably X.X% to conservative, budgeting of our So, and expense; at above historically the of revenue conservative we actual debt on years. debt outset is revenue. the total always our number guidance to in of assumes the be year, approach terms of be in the to equal bad past several But like expense their over guidance so X.X%

Operator

Schmidt our of And Merrill next question from America comes Bank with Craig Lynch.

line open. Your is

Craig Schmidt

I for cap and was your wondering in targeted acquisitions what are rates dispositions XXXX?

Michael Haines

Target cap rates dispositions about X X.X for to on acquisitions and X.X.

Craig Schmidt

any looking just X.X%. expense then was most pushing particular up component the there operating at that? And Was was that property

Richard Schoebel

Nothing into elements particular, think expenses. probably timing those in I it's some No.

Michael Haines

just I come between kind this talking prior about to quarters. expense issue that - and timing single were kind of the line Rich morning, up So, of identifying early we couldn't with

Operator

Todd Thomas from KeyBanc. question comes next with our And

is open. line Your

Todd Thomas

for quarter question that Kmart. XXX the much increase in is Just first Mike, How expecting first for the FAS you're that?

Michael Haines

believe about million. I $X it's

Todd Thomas

year? on about you throughout as so the from a bit, your and primary then, around the drivers real of the up to escalators it that X.X% following leasing little maybe and And NOI new behind occupancy just that growth, renewal contributions can same-store sort the just pertains assumptions then talk

Richard Schoebel

bit a the XXXX guess is I'm further, for or on the of X.X% in XXXX? the Todd questions in is just occupancy to I XXXX terms dive the Well question trying assumption

Todd Thomas

leasing at are terms NOI looking throughout X% of are in same-store contribution X%. for What the year? from then forecast I to and right you the XXXX occupancy the guess what assumptions escalators your For

Stuart Tanz

the that. the lower strong the in for touch at rate then drop of a occupancy year. average. the could a continue of off year on of is holidays guidance XX% seeing are the above we XX% in part space rate our slight anticipate potential the to lease our the Well stay range will guidance steady building that said lease of hold to for early assumes we expect or throughout thus the We the following XX%. demand That But than the and far balance and that

spreads releasing to taking In our individual each terms of lease. tied account detailed budgets into our property is guidance

But year. the the we similar achieved a achieve So lease on from we last spreads what to one releasing speaking releasing generally average next. to assumptions expect this vary to

Todd Thomas

Stuart And about. the pipeline so you dispositions for talked additional that

some, complete. on the that in have sort the put you color of and how be XXXX brackets any objectives million to or for likely dispositions? around properties or you the leasing just XXXX many some of to you're some provide $XX they those expect do would you're Can in size some of targeting beyond pipeline So that sale trying assets that's where you be guidance ready

Stuart Tanz

XX They'll be between probably ready another another we're be And about for million. sale properties or anticipating three that to maybe pipeline another in XXXX. four totaling

Todd Thomas

just rate then to are - And lastly able you share center? the cap on Vancouver market

Stuart Tanz

blended a of six three terms so Vancouver X was in rate Let a X quarters see cap X about in Todd. going me to just that

Operator

Donnelly next Wells Jeff question from Fargo. our And with comes

Your open. line is

Jeff Donnelly

so come expect you Stuart cash the I'm you'll it land you the think much redevelopments. interest supplement do primarily that mentioned in just cash. your I would how in would from be if land you curious guess you remarks contribute for with that your contributions? the And need versus do

Stuart Tanz

our times little. present the the very given little working performance we're that At it's partners currently with if on very any,

Jeff Donnelly

wondering California will you I'm ownership. that's shopping both – and of material And trigger is since a a not there sure and is just for how the if reassess component. under thinking center split reassessment up I'm off just Prop step chance I'm a you a for these change new entails XX developments construction residential I'm that curious that that parcel on if could redevelopments incur?

Stuart Tanz

property each properties. for created We've lines specific very

adjustments lot anticipate any line lot done impact any under XX. and Prop in gone we've line So adjustments don't And those we from reassessment already. with

Jeff Donnelly

I'm accelerated one your end QX just spreads done apologize Rich. it just or curious I environment trying what the just function tenor the last remarks leasing maybe a a in that leasing is? bit maybe of was And QX. sort is kind random your at stuff year I a question maybe just it walk of but from is for of you're change is of curious get definitely retailers into take of a to

Richard Schoebel

I to there's push the mean people open I always holidays. think obviously for get a

So into think play. that came certainly I

Operator

comes Our question from next Tayo Jefferies. Okusanya with

Your line is open.

Tayo Okusanya

the into that question, forecast X% to the X.X on is of you same-store same-store, debt earlier X%? NOI discussed Quick your bad million built that expense

Stuart Tanz

X.X% the debt not X.X%. was bad

Tayo Okusanya

Okay right. X.X%

Stuart Tanz

it in And same-store is in number. is yes same-store it our – our

Tayo Okusanya

regards that's of reason then to So second considerations the going there. in specific of regards of to the all process forward any delevering part And in asset JVs?

Stuart Tanz

at time. Not present the

Tayo Okusanya

because is to just from? want it is the business that more lack kind And coming make of curious where is just of interest don't decision you I'm that complex

Stuart Tanz

haven't done since we a joint venture Well XXXX.

it's So think thinking given And popup, we our the our that's we won't joint just at now now. venture that we but important may for tend transparency story. opportunity mean to an is look that something - just and extremely avoid doesn't simplicity not

We continue want to as company keep this as to straightforward possible. again

Operator

from Our with Michael next Mueller JPMorgan. comes question

line Your is open.

Michael Mueller

the still active to you're more. out you assets So as with and finished we fund growth? you two you're lined if or that we've or once could time set them know number to pullback be the what you and are up. next equity just dispositions over in to terms about going stock not we have disposition of We're going got stuff thinking about that thinking I see the going you're use to see on Are that. about years possibly him want at a talked probably improves some to in just of clean wondering in do front point how it you three you thinking about the

Stuart Tanz

looking market, look the probably the in with Well associated both of of shopping risk But as so how a X the focused getting deterioration at as we these of X portfolio as in will to there in-depth we in portfolio really NOI Sacramento concern this at the the right very things our every terms of trends well. given why the are quarter risk in on highly as some X Sacramento. of other any our growth. good it number that's and – headway doing occupied of terms we just leases we're go of of now, well And looking see But terms in be mark itself. X our years of are those terms areas nothing NOI, That's making and X years portfolio at more is mark the quarter list. through to number really in overall we're focused And on centers dispositions in a dispositions. number relates out of out is in terms out,

Michael Mueller

other one that. question maybe And on

looking X% the once if X%? that you're of continue X.X% at sell So X.X% you if be cap you would lower to today, assets and rates, that Sacramento rate to the this assets, to batch cap expect more next you're than is to out on batch

Michael Haines

Yes.

Operator

Capital from Lucas comes question with Chris next our And One Securities.

Chris Lucas

if bucket? had in for to of XXX points think catch-all wanted generally. basis in bad just was there specific there this it's on I you a Just or follow tenants debt wondering Is the conservative mind that the just same-store up I guidance just - it's year. any pretty is

Michael Haines

a across board is budget catch-all the It it's revenue. on bucket,

Chris Lucas

And budgeting XXXX that Mike, same going the that NOI for that same-store to - years for amount the you that rough used related guidance sort into was is you... of

Michael Haines

It bad each below our as in budgeting a of Historically year that. is of run-rate all the typically that this is. year same. though, our being - same debt guidance for We coming actual

Chris Lucas

at, zoning just wanted Stuart, sort projects barriers that need mixed opportunities. of all follow them on are some up of that guess I guess, of the getting the I just of to looking that I or of terms you put how time to of ground? projects done; these is where then to any clear actually much need development in about use, - more getting I in of in at i.e., think I sort of necessary are set, the shovel any approvals to you're point And anchor of hit, the guess site to sort be get plan a where I getting order to sign-offs, mean you you

Stuart Tanz

fast-tracking are encumbrances now right Chris, no front of that question. have in very us. good we X The

as it the - is tenants we focusing call we'll lot leases. would properties, you I because XX are with. it's been group the What dealing and - would other to because of the working entitlement our able relates tenants have bucket we fast-track leases. a things well are I as that X, that's process up with relocating on And we've that the current So other a XX balance need the that first And items bucket very more terminating that's is - to next are there's quicker - one which why X no may on. step than call are what asking as time we does reasons to bit deal be this come of a think terminating

to clarity making but in of the these encumbrances, takes but to headway these on - with speak It assets. that bucket that really get expect bucket time. within coming second are good of just we year other because have this We more nothing 'XX,

Chris Lucas

strategic those or guess part are in that redevelopment this for NOI of last we is I is to same-store my question is the de-leasing And in me included still is, future of clear drives in issues year, as of which their - that 'XX? guidance that sort that

Stuart Tanz

There is of X And the only the we've from we gone got from quarter of year, that out because terminate budgeting 'XX in equation. of lease in that's so the these the that's Kmart impact projects. has terms fourth last

might we NOI taking bucket Looking forward, the move we can but little as NOI right I touched off terms we'll from from to through in as very in impact terms that the grid that see happen as it or just informed NOI investors of of say, that on, changes that as any now our taking relates might that keep X you offline. process

Operator

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

Stuart Tanz

In thank your I ROIC. would truly for of us We you to today. interest in closing, joining all appreciate like

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

Operator

today's participating you program. This today's gentlemen, and conference. thank in concludes for Ladies

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

Retail Opportunity Investments (ROIC) 20 Feb 192018 Q4 Earnings call transcript