ROIC - Earnings call 3 2023 | Retail Opportunity Investments Corp.

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Operator

Welcome to Retail Opportunity Investments' Third Quarter 2023 Conference Call. [Operator Instructions] Now I would like to introduce Lauren Silveira, the company's Chief Accounting Officer.

Lauren Silveira

Thank you.

Before we begin, please note that certain matters, which we will discuss on today's call are forward-looking statements within the meaning of Federal Securities Laws. These forward-looking statements involve risks and other factors, which can cause actual results to differ significantly from future results that are expressed or implied by such forward-looking statements.

other the annual with to report about risks to our SEC, learn refer these recent most on and should company's the filings including more Participants factors. Form XX-K

discussing is In addition, call. of website. posted the can on non-GAAP these company's non-GAAP results results results GAAP found on our Reconciliation to certain financial be we today's financial quarterly be will in supplemental, which

Stuart Tanz, Now the Chief I'll over turn Stuart? the Executive to call Officer. company's

Stuart A. Tanz

Lauren, and good you, everyone. Thank morning,

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

grocery-anchored We portfolio continues are space. pleased at to to report fully the essentially most perform that over our for our ongoing Notwithstanding the we demand continue portfolio make well. leased XX%, to being of strong

months the we of In XXXX, amount record X have thus a fact, far. space through of leased first

Posting demand Additionally, space driving also on on leases the for demand we on and in both rent to new growth achieve higher. strongest in capitalizing continue are step leasing volume, terms of capitalizing our renewals. with to re-leasing quarter year-to-date the record rents

the the to related and of trading. stay West debt reasonable grocery-anchored many difficulty buyers rates the terms compelled centers would-be has rise idle this largely acquisitions, to the on year limited with shopping respect With Interest to of obtaining continuing number year been and only throughout a Coast in uncertainty financing has sidelines.

are more on starting Notwithstanding in become certain as to owners to view buyers being this transact. opportunity. an the private sideline, seeking active We

for excellent grocery-anchored had that to acquisition we close an under currently our some having contract. we've an we It's center have time. that fact, eye on In shopping are

position of is densely food of to The in we our seller a and tenant Angeles Los long-time which, a The diverse who closing the is well-established natural supermarket in located objective. a tenant are by the facilitate community. and its roster, an owner knowledge is market national populated, efficient a center is given a in ours. anchored private specific market mature, that properties seeking closing, The their center the

have currently this well circumstances we that we capitalize that our acquisition, on, Beyond with several sights opportunities seller we on. are positioned each other to have

balance to our sheet. Turning

public million The third grocery-anchored considerable and raising to quarter, was which we in in offering, at from in and bond strength total. the of $XXX interest we our offering XX speaks completed total, During a stability and business. oversubscribed think grew tracking interest the long-term investors the portfolio marketplace

of third call Michael to Now details quarter over offering and I'll the Mike? turn to our results. Haines the the you through take

Michael B. Haines

results. Thanks, with Stuart. financial Starting our

For the equating third XXXX, ended $X.XX $X.X quarter, GAAP XX, million, for months to the net income shareholders share. was attributable diluted to per September common X

third first And With income the attributable our to diluted of the common share. to in shareholders FFO $X.XX totaled funds of for GAAP respect terms quarter, to share. equating $XX.X months $X.XX diluted X per per from million million, or for results financial XXXX, $XX operations, totaled net

FFO In terms share million diluted company XXXX. the first or for X total $X.XX of had in of FFO, $XXX.X the months per

on increased NOI increased during quarter a for third same-center the by income, by In operating and cash X terms first of net XXXX. of the basis, months X.X% X.X%

X quarter by items. were Our results third impacted

a we notably bulk of increased result higher the decline amortization removing recaptured recapturing adjustment. take as new notably of X lined at which income other a Baby GAAP as in other offsetting primarily third rents. quarter. First, result up onetime portfolio to Partially a a rent leases, The from primarily is our income, already declined cap noncash tenants during the the Buybuy the have lease increase space of

cash With new for basis, at a on both recapture already higher and have spaces, the tenants Buybuy we notes. to same-space several which million operating. rent to offering during through and space, senior as lined respect And public a the unsecured raised we balance bond open Baby a $XXX of touched our up sheet, third just one of like already Stuart quarter, on, is

in time in It bond nearly raising was a decade. public capital market the first

made the the a market with utilize conservative proceeds in we to a December. A discussions diverse intend that to of effort We fully of of and million senior to such, which broad mature number As company. engage with the were mix new investors. notes the having retire to $XXX

down Additionally, our we term loan. $XXX $XXX paid million million of

issuer schedule objective X on a our well each next maturing with maturity public Taking annual year debt be unencumbered. over offering, going Over is XX% laddered bond debt more in of is Looking $XXX our the effectively years, out million XX, Having reestablished is approximately our over our ROIC is September of rate. is to of as forward. fixed over the market, and our bond average. consistent into debt portfolio XX% the unsecured XX% now account of

X.Xx from Additionally, year net was third ago. to for from the EBITDA annualized down quarter, a X.Xx, debt

we to guidance close, our updated year have the XXXX. with a FFO narrowed for Lastly, coming range and

back we positive year projections side, beginning this activity year. the that initial On the of far set at our exceeded the leasing has

However, our projected projected the activity, expense year. the adjusted persistent of interest rise in investment for interrupted and both range interest been rates impacted our guidance accordingly which initial have

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

Richard K. Schoebel

Mike. Thanks,

be of continues of range prospective space. highlighted, to broad Demand Stuart consistently another with actively successful across achieved a quarter active tenants leasing. our strong new we seeking portfolio As

in property's of leased on X in million the at is record our core new anchors location pace. centers service out record our draw to Capitalizing a have of shopping by together a space tenants, their approximately prospective terms with the long-time for square we to and be as Year-to-date, strong respective X.X communities. volume leasing our the us which continue months. lease other sought for tenants Given feet, supermarket destination center and choice we of attributes, the continue demand, first

our between quarter to continues the leased XX% Breaking be XX.X% In finishing down step with close shop again rate record anchor is space achieved space, leased. and we space third our at XXX% leasing behind at that lease leased. above nonanchor and our activity, portfolio XX%, a anchor

feet. XXX,XXX bulk tenants particularly leasing around to a to executed square anchor key continuing During come renew, continues leases, tenants. us the with value our third them center The quarter, long-standing to early number to renewing of we totaling of XX activity

third the renewed quarter, tenants, which during X year. anchor to Specifically, we scheduled next X of until mature not were

Additionally, in as Stuart success to growth. rent indicated, have good of we continue terms re-leasing

a advance maturities new and renewals. identifying enhancing increase strong Specifically, opportunities lease quarter, a and and re-leasing on seeking leasing is on same-space, during the cash rents out, activity on capitalizing well third space base achieved driving Underscoring the quickly, XX% consistent X% leases to the proactive approach of and in higher a increase performance tenancies in recapture rents and space, of we in process. our

to we the XX% Just of out The leased successfully pads average X tenant have reached And quick-serve about regional spaces. an increase new tenant whose rent. the their now a represent national drive-through. rents the during been we third example, our centers, up several prime some recaptured was over the recasted the on and previous restaurant Anticipating with that recently tenant's bring a cite to have freestanding could acquired. business each to quarter, with lined pad, consolidation, base acquisition operators

at which strong restaurant we with the $X.X to future opened the daily in leasing will stronger commenced will properties. continue tenants have and demand rent open initiative, new approximately million paying opened $X cash good a our including rent quarter. enhance of the to be our operating. representing new turn million in operators a success recapturing draw getting much increase, rent, also Along on addition centers, In and tenants Year-to-date, base new have incremental third the basis, to

respect we of at $X.X that incremental The million Three of quarter, XX just yet X bulk Rite X.X% as In stood announcement, at their which list. with expect Rite to the next Aid quarters. base new several are commence our including portfolio, signed opened, leases tenants, together of rent. closure Aid the total over of we leases account our September during terms third of amount and Rite recent we across that the accounted rent. for The haven't to which had the X.X% Aid's for our those XX. total XX, base altogether on of September With

the as below as The much current rents. XX% for X to average is XX% rent market base

continue well. as the with leases Aid, of XX terms average and Rite well all perform the on remaining to they In below market are rents

maturities lease going forward. to Turning

year-end. As of anchor feet X September had we XXX,XXX totaling leases both before maturing of square only feet, quarter, fourth expect XX, release during to including square which we XX,XXX the

X further to currently we we in renew. next scheduled will mature X of expect to out that have anchor leases X the XXXX, year, which of Looking currently

release and to non-anchor we have consistent in-line year. performance. of X.X historical we Which of our space, scheduled to feet terms million expect renew In square mature next with space about

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

Stuart A. Tanz

on our leasing year our on activity post achieving to in volume. fourth record leasing here we of of and Based early Rich. lease are terms leasing maintaining year finish the another strong our track and in property operations Thanks, portfolio high successful rate the and year-to-date performance quarter,

base. solid achieving and re-leasing also enhancing While rent growth tenant our

faced growing it's the as across I commercial sectors idle as that the ongoing to say markets certain property been that In to with to currently portfolio, has are also and XXXX prominent environment, the interest terms adjust our largely country with. challenges rate mentioned, slow year higher has market of to the been adjusting safe the market frustrating a along certain in

long-term markets. the our fundamentals protected especially of as our relates highly it the specific Fortunately, sound, remains portfolio sector grocery-anchored and to

of the activity maintain options. to owners. accelerate and the begins As limited level, towards with tracking we current have XXXX, ongoing, constructive markets, owners look strategically off-market property acquisition in to number been we've earnest is opportunities working anticipation, as could rate establish that core refinancing private expectation across next potentially year low potential dialogue debt and could interest our private mature In market in viable an a

And Coast, XX-year market. team's our sector time nearly the again. our this instrumental to acquire has the properties the rarely in strategy access specializing proven on to ever and grocery-anchored exceptional hit West Over gain history that ability of

the market encouraged from look and portfolio grow seeing what we in our currently and XXXX. it's we of early While again, to terms to fully strategically active acquisition the forward becoming are are opportunity favorable in

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

Operator

our Capital BMO And Juan from question Sanabria comes of first Instructions] Markets. [Operator

Juan Sanabria

through looking bankruptcy process, you at may and they more initial a back you the And were give hoping today There's backfill back. and divestitures Just Rite could any to to space? that Aid article hand might incremental planning. rejections any if than space, uses list you're of they bit color the look initially have the an they little on more that that potential talk about

may what have. extra So just intel curious you

Stuart A. Tanz

Rich?

Richard K. Schoebel

Yes.

mean I of including seems happened become potential demand. of automotive, possible. to fulfill terms range opportunities right unable what now a broad we a here has tenants, from were in to are really there new that have speaking is grocery, uses, lot So to be now, we fitness, of tenants,

lease they've I So think, X significant know, space. that you far, in only as There's interest of ours. so rejected

Stuart A. Tanz

Yes, been Juan, bit the demand has overwhelming. a

Juan Sanabria

Okay. were down just rents you how there. then talk just was flat, question, I'm quarter-over-quarter? in It for a build bit occupancy a little base some progress. And about second seems hoping a color but could little just

Michael B. Haines

Mike. Juan, it's

my -- I we'll probably not the -- for the prepared GAAP the I it's hunch is -- think an a into above-market lease, Baby the dig Buybuy in which remarks my had that details mentioned adjustment lease. of

cause lease when the is of was a had above-market recognize which decrease. when -- hit to we had that we that revenue, the of it's revenue, rental So probably terminated,

Juan Sanabria

one expected the $X.X just [indiscernible] the mind. if commencements last occupied? for lease Great. of you And of million the one, What's cadence don't

Michael B. Haines

about March to by June. online and so think supposed another XX by think XX% it is or I I -- come it's of XX%

by of majority it the that's So June.

Operator

from Mailman Citi. question next Craig comes our And of

Craig Mailman

next and commentary, kind inflect So kind the could up is just square higher that just just refinancings just you're you're financing monetize of tracking sense? of on the retail to on acquisition a NOI just as sellers eating the environment it that year. interest into see to debt some space. wanted don't coming service the make to follow are that due it I'm looking least, can't kind the growth trying assets here potentially curious, environment they at that or your I'm to of Stuart, about weak circles, the the expense, get here given in starting here versus coverages

debt and ] that you cost -- rates need [ just moving how what just you guess interest work I commentary accretive guys of pricing make So is rates? these would given in capital for where on to and then

Stuart A. Tanz

have but Well, to all the in come of cases, Sure. primarily of get they combination challenges in order it's financing. the a not in new fact pocket And financing to the have in to, in lot of more out a cases, terms that market. equity, providing of

In right That's the with margin to with either now, at find cap that what's goal. try to what through ability efficiencies, X.X% our as as goal terms sweet looking XX-month to cost the we're is XXX in basis well rents points the vacancy spot to within about the X.X% capital, of an pipeline of period. in buying drive operating that or range,

And seeing right due on as to our what capital. terms of to doing of deals, couple diligence relates now will cost we're subject what in able on it we we these believe a accretively close be that of these transactions to

Craig Mailman

Okay.

mix like? And How in you're about? if the debt, in to it plan. of could know Kind a yet, you ultimately, what's that So your the how you in, of you're OP And that dilution of you like in returns of finance might do asset where X% the to X% you can again, particular, in you cap have but just talking units, push talked for do going equity, or on you're sounds be close, that to, that? look relative realm optimal kind execute is you going a a that that finance little the but finance I contract not bit asset to you're sales?

Stuart A. Tanz

year next is transaction at second currently going look That's first and financing to year, will end to I that transaction, in of units, through ATM. will in upcoming the stock Well, we quarter now. combination done stock combination combination fruition But the finance than units, trading. opportunities, the OP how certainly into year. OP next have more help some where of that the an this it's into is believe higher and of our price a be we in a of as a not OP come If quarter, a do that the of selling our we're and the assets

Craig Mailman

'XX you Okay. yet. just And guys of out know lowered here, I thought this partly guidance quarter, result guidance the just coming you But haven't given guys lastly, it. a of of the as acquisitions kind

guidance assume under no that, that's think acquisitions macro the of year, volatility are of of should and I in you next As guys transaction in market? you about to Kind approach just mean, kind baked how impacted kind how contract? we the going presenting are that given the

Stuart A. Tanz

at in on Sure. now. Well, activity I that mean, terms external in more property continue more operations of growth our as strong, bit of creating our growth, we're you're our more along or asking again, obviously, remarks, in you've we'll seeing see, as be some year-end remarks the heard questions a But you've potentially on bit in bit more activity terms be a call, giving filling of heard dispositions, a with the because to guidance what growth, right from very level on I think today. you'll

Operator

Securities. Jeffrey next from B&A Spector our question of And comes

Elizabeth Yang Doykan

Jeff. for on actually Lizzy is This

provide a the rent? that just kind to full retailers So same-store lost store the more assumed in end on end narrowed timing greater I just up rent Aid on swing the amount function there higher from confidence range on NOI. visibility wondering troubled more so confirm, fallout to What the of that Is of for was lower to that's if of your or or for is you and there? versus openings color commenced of the Rite And that, would occupancy any follow year? could

Stuart A. Tanz

as You the relates Rich? answer want to it fallout, to question

Richard K. Schoebel

Aid. has been only fallout, Yes. terms by of Right Rite X rejected now, in lease

any to And are The in know, -- leases required process. they they are rent, other leases. until pay the X while reject they you sale as their

any Aid anticipate to don't Rite it or other we fallout financial any as tenants. relates major So

Michael B. Haines

Yes.

as the feel NOI far balance X% for I between for As same-store at and comfortable of already given the X%. X.X% the X year, that yes, we're pretty months,

kind in of items to line quarter, The in be but back with quarter historical. contributed the of other income kind that normal should third our fourth

So range with. feel comfortable the X% pretty X% to we

Elizabeth Yang Doykan

on to, rate I lease And XX% you if was tenant just consistent. latest just like spoke give the you the health, second, given Okay. small temperature could fairly curious seems shop check

If just give on tenants you the of there. latest health the could

Richard K. Schoebel

tenants active, and multiple it And They I been is LOIs Sure. shop local, team available. national Yes. has continue have leasing broad and regional spaces the are fielding capitalizing the mean that. be do our very on a that to coming from for of range we tenants.

Operator

question And comes our next of Golladay Wesley Baird. from

Wesley Golladay

your depending Xs, for give today. funding And some can at assets where question mid- a to you stock Stuart, high we us to can for mean, today's open you're then on you looks the follow-up I sell level, like where appetite at today? acquisitions.

Stuart A. Tanz

Well, of our mind. selling shares, the when consider current factors a set don't activity, price investment acquisition stock including equity have contemplating raising yields. to a price we in our We of terms and in fund number

one In of terms in here to primarily my Coast, activity as And very have and last which remarks, mid-Xs. we the of in deals Diego. on cap low transactions Xs, Friday high-quality in few is a sit the grocery-anchored widely bit again, recently, marketed What couple San ICSC, more a occurring we you Xs, rates, more seen the has West West think for there's the as tomorrow today, over related several one in the Coast. weeks on been, centers the I heard in

of the when sitting it, depending retail usually profile of are call You of of that, to take, assets give experts. come gathering you let's the on today number have But get a still to range, size asset. rates X% this a market cap in or

Some X% X%, or average are bit a the the some X% at are still. on below But above.

Wesley Golladay

then a did like the you pretty you portfolio. ICSC think cuts both there. stores. on safe comprehensive appetite cuts Would Overall, closing I for feel Aid, Rite rent the asking is on your about and also considering to also rent you They are have no your team over say these maybe assets? review that sounds good management where then it And with it mark-to-market it. at be Got for contemplating

Stuart A. Tanz

Absolutely. with And been that LOIs these locations, on our the The been already. been tell overwhelming only of table the probably couple you truth. to got We've have haven't hit that number of demand bit market a in Even a we've locations the Rich. rejected. a has weeks,

on of So here value Rite today in that terms we're good create over situation. be we'll see sitting Aid pretty certainly able ground time to we with confident, what some the the

depending on, again, to quite space. And the want that, the it's the encouraging on large, on of of to anything Rich. I in add terms location very right location, ground. we're depending the if now the actual you don't know But mark-to-market seeing what

Richard K. Schoebel

I that on coming no see the those, and situations. to we're or is ahead and been bring No. lease think as to rent. I other market there's the space downtime able you we up bankruptcy accepted back, out when mean, from we've Normally, whether space get

we with similar So a here Rite situation would very expect Aid.

Wesley Golladay

that income, X worth the it to it. one combination It correct? about at term is income, like also just about And interest can interim $X then below looks wrong, line held, on Got cash a of this a Is year's correct maybe I it's look of or million item? other you of rent I'm if position got you does me And more that get seem good maybe, just it? way income $XXX,XXX income. from like of

Michael B. Haines

of million I at of was it, connection in say, details -- as that's new I the other it and about, those offering termination that were -- the the income on settlement rents. other we've money should leases of I in already of income lease quarter, we income which captured was income lined The $X.X $X.X market. mix from bond touch have in The third the with mentioned, miscellaneous interest that already up million just of a [indiscernible] the of sitting cash and also talked tenants balance other higher the

Operator

from next Fargo of question our Kesten And comes Wells Securities. Dori

Dori Kesten

late pushed assume be to of it the could transaction in noted 'XX? disposition is fair guidance you've improvement environment, that the into prior your Given

Stuart A. Tanz

on We guidance we acquisition as in side. increase the that in of 'XX, ramp will up probably terms dispositions

side this second. that we'll we looking We move so our as is it's can't that that up window will next equation, be give firm relates tight ability you be high-quality the of nice believe that a I give Although of any that assets, will some there believe accelerate -- grocery-anchored call. you that to to into us market the at it specifics disposition as in will again, opening guidance again, 'XX. give the But we

Dori Kesten

'XX thoughts us going on the just this offerings Okay. forward? And your are what then can of views regarding And time addressing part an mentioned 'XXs? fixed the know on guess on your for I kind I the exposure line your maturities give floating you annual environment? update -- with addressed, in of that, you initial versus

Michael B. Haines

expirations... So in terms of

Stuart A. Tanz

[indiscernible].

Michael B. Haines

next mean, we is 'XXs, obviously, where good is we 'XX be the a rates. become have maturities interest our time term swapped I we August same about this on filings, the which loan the depends line market portion in of in going that Yes, as year, addressed to unhedged with year. out our It really of to the

whether depending down, trending to take floating up, going to if back do of start on rates some level want you advantage exposures that. they rate have Obviously, of continue

the more fixed. year, with 'XXs. So We'll little of bit right we're level. be out pretty end that we will the floating take at highly we're the comfortable a now, But and

where kind and of So things. we rate the just watch on the market have interest goes of to side see

Operator

our next from comes JPMorgan. question And of Michael Mueller

Michael Mueller

missed of thinking it, can lined and rough happen you acquisitions roughly one but of quick of just have base but about it the of higher that's about equal thinking should transaction, Just It in we're when levels we dispositions? you And I XXXX, up. of would from volume could may case sounds a happen? level XXXX, a be near-term ones think talk the like a a here. that couple dollar perspective,

Stuart A. Tanz

I guidance Mike. next our we're mean, to give call, going again, in

That transaction, potential the us, pipeline to look $XXX were look be probably you right in million of sitting now. If you front in million a and what OP to have into 'XX at of the including out could $XX of point course. could range at change, we this

where that side, million sit On the $XX up, initially, know but ramping in million the disposition that's things this of don't probably probably call. I we're as to $XX Mike...

Michael B. Haines

Yes, edges we accretive acquisitions. and the in around use to terms proceeds currently of say, just of own some I'd what those portfolio buy

Michael Mueller

Got it.

there land I then Just on tied the guess, any is update the maybe sales the, there. And Okay. to redevelopments? update an

Stuart A. Tanz

We terms track in entitled got. the that continue to of market land the we've

to We buyers. continue speak with

continue a operators of to got We speak, us interest in opportunities. strong to these joint to lot coming we've venture, these or assets

market But $XX we the of market. And the monitor we but we're again the -- move has see and as very say, we X, Once to very these better, to sell million. a we closely, as we around to the X see will begin to very it good might continue these been position very And properties to to difficult. begin push we're when you to things quickly $XX were assets get well. to expecting the million market in market -- get to still change, if things

Operator

question And Tsai from next our of Linda Jefferies. comes

Linda Yu Tsai

term about Just is you on than and your to year, discount and where more next disposition stock rather focused dispositions what you'll given for clarify, trading said acquisitions? be the volumes acquisition near

Stuart A. Tanz

Combination both. of

Linda Yu Tsai

says Okay. Rite to Juan rejections, Aid Aid has Rite that like confirm announced remaining coming. also from but identified? expect would to, announcement the of wanted then I XXX referred just And would are Or Rite the you from stores sounds X XX leases on considered? are article, which the an it closures the more XXX be identified the of Aid -- more list

Stuart A. Tanz

has their now count. evaluate look ahead of really Well, process, time terms some in it's I tough Rite to store had that to Aid think

it that's the see one why bankruptcy. took think the longer I of bit to a reasons

We store, I is that have X Rich mentioned closing. that think

X you do to Rich, The other beyond are that. operating. mean, tell you... sale. I anything up still They're for Tough

Richard K. Schoebel

mean number also this, No. of leading to as up a have they've stores I think certain I well. exited

Some increases already in of significant them we've rent. reletted

available. And become which may to so future it's in really predict the ones hard

exceptional. demand given we has markets, has as supply on, -- there's the the available that But fact the been in no touched demand really our

Stuart A. Tanz

of would locations the And I they're the be the which part I at mean, arterials meet. premier X a centers, have call would roadways where these number or what of and in of shopping located drive-throughs our intersection

Aid pretty that's see Rite I'm surprised out as confident wouldn't moves to what there remains -- more move rejections, but So I not -- have don't we of saying I why well that we bankruptcy feel we that we get that sitting won't intact. be pretty as

Linda Yu Tsai

then How for And re-leasing just against how year, with new pricing do think one of takes the one. you power next expense -- do interest spreads the spreads? and seeing you're last and puts about you

Michael B. Haines

Well, we'll put December. out next the guidance maturities until don't for come up year. The for 'XX

both pull model of early, trigger we've we all So unless which it's expense the refinanced we Fourth to the for going pretty much quarter, the from be to year. already. 'XXs can where we're going have the interest

is of benefit in. cash income, while the the the have sitting also interest We

able that solid pretty So be when the for we 'XX, in year. give on we'll February guidance guidance give to

Operator

And Rojas-Schmidt Green of our comes next question Street. Paulina from

Stuart A. Tanz

How for Coast you. West Paulina? the are on Early you doing,

Paulina Rojas Schmidt

my with ready enough. good I'm question, awake. hope am, I that's so Here I

Stuart A. Tanz

Yes.

Paulina Rojas Schmidt

at potential interest the you're what acquisitions? particularly seem your doesn't level consequences environment about -- I'm you're rate high when worried, question balance look like you and step it's retailer my especially towards your on is, of more current future. the concern? sheet. a seeing So would It back of thinking take attitude describe Beside the you today, of How more given

Stuart A. Tanz

can Well, is us control. look, of environment look, that the of rate situation something none terms the interest in

economists I 'XX. think we wrong most in have been So 'XX, into look as

rates what elevated I are to think for stay than most interest longer going are anticipating.

bond However, offering. as very a we into had look we successful 'XX,

to top use the now that, to do on of without some might be ability pay giving there certainly more the help of importantly, potentially and And and whether have to deal what out some we And really we financing. and to high specifics. debt the back accelerate there think out some alleviate some to want go down. and So rates, look at we dispositions flexibility about you with time that have of more concern interest

sheet really balance strength given sits through And dealing don't with today at that terms sheets. of hopefully, comfortable that. add get lock the good, we'll of And be is feel 'XX attractive So everyone I our rate. an where Mike, in issue debt very to our And to this. able you very if we want to all balance the know in in same

Michael B. Haines

agree I you're what with saying.

no happening might opinions the go. and where think there of marketplace out what's I in the rates shortage economy on overall there's in

The with with the news is, So see evolves patient, be work the refinanced, of wait capacity and 'XXs just it. already kind it on credit we the 'XXs, got the just to and good have market how line. see we've full we as

some flexibility there well. timing the So got of on that we've as

Paulina Rojas Schmidt

other it of my think the your wrong? least unusual is Rite look from is of your grocery-anchored peers, then I market Aid? is, putting into some And implied And is the a is Or you significantly historical at current at the rate, do higher What perspective. getting than much too weight when events? question what which market interpretation true cap is

Stuart A. Tanz

this feel here like growth. challenges now, resolved. it's look, been 'XX today, noise which very maturity, mean, And of noise some the -- And has it just out we around for Aid. been I sitting some that looks ROIC come has think will debt in our Yes. perspective. I We right very rent strong the comfortable the potentially from now Rite with

at in when Coast, the nothing And There's more in Remember, available. market today have from portfolio years. look perspective. not this there's on we space anchor West anchor had lease an to nothing the X an available importantly, we

LOIs got has again, anchor as others. a incredible as the bit had of a tenants from we finally well So overwhelming is, demand space grocery-anchored available. an come We've since been series

with where we is We pretty comfortable going of to point, importantly, sit. go the to away. quickly think we that able process. we'll that's And at show some So through feel today the going lot value more noise market again, created there's be this pretty mark-to-market be a to

Paulina Rojas Schmidt

have seen of some think Can mentioned, provide demand color on for you? the you I grocers, space. you grocers have type from right, what you approached

Stuart A. Tanz

know... the table, regional grocers time, at the at Rich, national local approach had grocers, We've I all don't grocers us, and one

Michael B. Haines

types those a names, of... Without getting it's all specific of on variety

Stuart A. Tanz

strong tenants. Very

Paulina Rojas Schmidt

receive if stores? thinking the would Or think the back, last do subdivide you smaller And are you Okay. tenant have space? one, it's space to were the that you likely space about single users you for into more to

Richard K. Schoebel

Most downsize already. and back of already Aid spaces taken Rite our where we've have space them rightsized been

to our that the and tenant, but the retenant would in we lease we users, consider done look the all splitting factors the space. circumstances. It also with when a on we and all single would goal depends at really would be So them we've economics which other

Operator

from of Markets. KeyBanc question next Thomas our And Todd comes Capital

Todd Thomas

follow-ups. A couple of

an about us with I how if that's whether term the or talk rejected. buying you auction, First, in across leases to interest Rite tell XX one contemplating? was you're much appetite on can left regard you in been that's could that your excluding Aid, option average is the leases wondering And the portfolio, in

Stuart A. Tanz

buying these are The currently looking answer this pipeline especially is buying terms Rich, grow yes the term? answer as LOIs leases, of now, is in we of we're as having in seeing at leases discussion, of we terms if the yes, the we're and right see

Richard K. Schoebel

I range XXXX term Aids the the don't But have been out we out is to as far Yes, way the XXXX. throughout go year, then they -- XXXX. renewing all Todd. not and here, average and next Rite as we've until the expiration And

and bit these on of a of there's many term So course, of leases then, options.

Todd Thomas

spread the rate little between sells? the growth accretive? on with starting those sales. the just accomplish buys really be rate rationale, and can some you Or the circling What NOI of back dispositions. dispositions the to you're more to bit is a or of to it see if just I'm yields then today Stuart, talk I guess, curious asset dispositions you're would more strategic and about cap And the behind planned about Okay. the underwrite acquisition to whether relative that hoping

Stuart A. Tanz

of a that into in in And on the terms of equation the combination mid-Xs assets, growth, on we -- some We may Xs. side get It's of arbitrage or with a Xs. the then of combination cap rates. buying these believe other low of that NOI the the obviously

the type So with buyers of seen they up aggressively. it's buy to couple of been West really paying have Coast, those a of transactions these quite a And assets X combination on we XXXX have things. where

such accelerating of drive product timing terms and potentially little market, program will I luck a there's bit focus this here, a with these that the in on of of selling and fact help some importantly, assets. bit hopefully, more So the of of think

Todd Thomas

Okay. do joint today, And you Is think venture, sheet acquisitions, around a that forward joint bringing no that moving everything also specifically you in sales pencil you everything or sheet? But on would in Or advantage of terms that was on of I land complicated. really be in take the acquisitions mention a the surface? to thinking creative own heard to balance more nothing I partner then in to but I position looking might maybe bit something think earlier, make considering ventures greater that some little consider of opportunities you about balance and a were perhaps discussing. you're deals

Stuart A. Tanz

of, sheet. last team for you is Todd, XX The of management to as focus balance know, years the stay this on

terms aggressively biggest have the over We in in of the approached off some quite been balance last business by months the of sheet. going players X

Nothing today us excited. would front of is that us get in

assets I'll However, someone shareholders, call something gives if to could getting on But sheet balance back does on of of walk these this I the year. the say next continues in over balance be growth of year sheet the again, what in look the we and would with never highly time. never accretive terms as into us that be focus to plan balance and

Todd Thomas

we to Mike, implied here. rent. the the about Okay. and XXXX, last And Is both But level for the around model Is fourth new XXX, one as could, guess, straight considerations maybe right think rent for consider the noncash heading one FAS quarter XQ the think That's updated rate, with line for straight-line the made adjustments we if about, around run as just some I that helpful. into you I guidance. on year?

Michael B. Haines

pull had Baby little so QX, lease yes. haven't because static. rent terminated a But I we bit is we FAS really We was our had the recently, anything would amortization acquired in pretty a obviously Buybuy that say down drag. from that of XXX a bit a of

in for the acquisitions, guidance February, So do up we be if unknown buying should pretty solid barring end any year, when the whole comes or something. out terminations it

if the say On be I -- X the good that our the number would that be straight-line side, you activity. run rent -- a run months annualize was would rate that, would rate, leasing given

Todd Thomas

Okay. it. Got

be the quarter, quarter fourth forward? straight-line should run moving the rate implied So about a clean rent to think pretty fourth

Michael B. Haines

the will on depend QX. It be. should in It activity due leasing all

Operator

would this turn back no remarks. questions to I now for I'm to Stuart like Tanz further at showing it time. closing

Stuart A. Tanz

to thanks us for closing, joining In of all you today.

As ROIC. interest always, in we your appreciate

on as find If Also additional me questions, directly. package, you which have in quarterly supplemental Rich company's any you website, as please Lauren, posted our XX-Q. the additional or can information Mike, our contact well is

seeing and of there, Lastly, again, a any that the to we today. from Diego, you conference attending San Los everyone. annual have in And We you to NAREIT's of planning day, too. look attend are that starts conference few you those that you for Thanks great are for hope there. to Angeles, forward ICSC in a see now weeks in

Operator

and This you concludes now today's conference call. disconnect. for you may participating, Thank

Retail Opportunity Investments (ROIC) 25 Oct 232023 Q3 Earnings call transcript