Capital of the Operating Partnership

12 Months Ended

Dec. 31, 2021

Partners' Capital Notes [Abstract]

Capital of the Operating Partnership

Capital of the Operating Partnership

As of December 31, 2021, the Operating Partnership had 131,227,363 OP Units outstanding. ROIC owned an approximate 93.5% interest in the Operating Partnership at December 31, 2021, or 122,685,266 OP Units. The remaining 8,542,097 OP Units are owned by other limited partners. A share of ROIC’s common stock and an OP unit have essentially the same economic characteristics as they share equally in the total net income or loss and distributions of the Operating Partnership.

As of December 31, 2021, subject to certain exceptions, holders are able to redeem their OP Units, at the option of ROIC, for cash or for unregistered shares of ROIC common stock on a one-for-one basis. If cash is paid in the redemption, the redemption price is equal to the average closing price on the NASDAQ Stock Market for shares of ROIC’s common stock over the ten consecutive trading days immediately preceding the date a redemption notice is received by ROIC.

During the year ended December 31, 2021, ROIC received notices of redemption for a total of 423,986 OP Units. ROIC elected to redeem the 423,986 OP Units for shares of ROIC common stock on a one-for-one basis, and accordingly, 423,986 shares of ROIC common stock were issued.

The redemption value of outstanding OP Units owned by the limited partners as of December 31, 2021, not including ROIC, had such units been redeemed at December 31, 2021, was approximately $162.0 million, calculated based on the average closing price of ROIC’s common stock on the NASDAQ Stock Market for the ten consecutive trading days immediately preceding December 31, 2021, which amounted to $18.96 per share.

Retail Opportunity Investments GP, LLC, ROIC’s wholly-owned subsidiary, is the sole general partner of the Operating Partnership, and as the parent company, ROIC has the full and complete authority over the Operating Partnership’s day-to-day management and control. As the sole general partner of the Operating Partnership, ROIC effectively controls the ability to issue common stock of ROIC upon redemption of any OP Units. The redemption provisions that permit ROIC to settle the redemption of OP Units in either cash or common stock, in the sole discretion of ROIC, are further evaluated in accordance with applicable accounting guidance to determine whether temporary or permanent equity classification on the balance sheet is appropriate. The Company evaluated this guidance, including the ability, in its sole discretion, to settle in unregistered shares of common stock, and determined that the OP Units meet the requirements to qualify for presentation as permanent equity.