Real Estate Investments

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Real Estate Investments

Real Estate Investments

The following real estate investment transactions have occurred during the nine months ended September 30, 2016.

Property Acquisitions

On March 10, 2016, the Company acquired a two-property portfolio for an adjusted purchase price of approximately $64.3 million. The first property known as Magnolia Shopping Center is located in Santa Barbara, California, is approximately 116,000 square feet and is anchored by Kroger (Ralph’s) Supermarket. The second property, known as Casitas Plaza Shopping Center is located in Carpinteria, California, within Santa Barbara County, is approximately 97,000 square feet and is anchored by Albertson’s Supermarket and CVS Pharmacy. The acquisitions were funded through the issuance of 2,434,833 OP Units with a fair value of approximately $46.1 million, the assumption of $9.3 million and $7.6 million in mortgage loans on Magnolia Shopping Center and Casitas Plaza Shopping Center, respectively, and cash on hand.

On April 28, 2016, the Company acquired the property known as Bouquet Center located in Santa Clarita, California, within the Los Angeles metropolitan area, for a purchase price of approximately $59.0 million. Bouquet Center is approximately 149,000 square feet and is anchored by Safeway (Vons) Supermarket, CVS Pharmacy and Ross Dress For Less. The property was acquired with borrowings under the Company's unsecured revolving credit facility, proceeds from the ATM program and available cash from operations.

On June 1, 2016, the Company acquired the property known as North Ranch Shopping Center located in Westlake Village, California, within the Los Angeles metropolitan area, for a purchase price of approximately $122.8 million. North Ranch Shopping Center is approximately 147,000, square feet and is anchored by Kroger (Ralph's) Supermarket, Trader Joe's, Rite Aid Pharmacy, and Petco. The property was acquired with borrowings under the Company's unsecured revolving credit facility, proceeds from the ATM program and available cash from operations.

On July 14, 2016, the Company acquired the property known as Monterey Center, located in downtown Monterey, California, for a purchase price of approximately $12.1 million. Monterey Center is approximately 26,000 square feet and is anchored by Trader Joe's and Pharmaca Pharmacy. The property was acquired with cash on hand.

On September 15, 2016, the Company acquired the property known as Rose City Center located in Portland, Oregon, for a purchase price of approximately $12.8 million. Rose City Center is approximately 61,000 square feet and is anchored by Safeway Supermarket. The property was acquired with borrowings under the Company's unsecured revolving credit facility and cash on hand.

Any reference to the number of properties and square footage are unaudited and outside the scope of the Company’s independent registered public accounting firm’s review of its financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.

The financial information set forth below summarizes the Company’s purchase price allocation for the properties acquired during the nine months ended September 30, 2016 (in thousands).

	September 30, 2016
ASSETS
Land	$	67,590
Building and improvements	210,858
Acquired lease intangible assets	14,887
Deferred charges	5,035
Assets acquired	$	298,370
LIABILITIES
Mortgage notes assumed	$	17,618
Acquired lease intangible liabilities	26,631
Liabilities assumed	$	44,249

The allocations for Magnolia Shopping Center, Casitas Plaza Shopping Center, Bouquet Center and North Ranch Shopping Center are final. The allocations for Monterey Center and Rose City Center are preliminary and will be adjusted as final information becomes available.

Pro Forma Financial Information

The pro forma financial information set forth below is based upon the Company’s historical consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015, adjusted to give effect to the acquisition of properties described above as if such transactions had been completed at the beginning of 2015. The pro forma financial information set forth below is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2015, nor does it purport to represent the results of future operations (in thousands). 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Statement of operations:
Revenues	$	45,634	$	46,834	$	142,220	$	143,235
Net income attributable to Retail Opportunity Investments Corp.	$	7,436	$	7,950	$	23,360	$	19,423

The following table summarizes the operating results included in the Company’s historical consolidated statement of operations for the three and nine months ended September 30, 2016, for the properties acquired during the nine months ended September 30, 2016 (in thousands).

	Three Months Ended September 30, 2016		Nine Months Ended September 30, 2016
Statement of operations:
Revenues	$	4,923	$	8,180
Net income attributable to Retail Opportunity Investments Corp.	$	626	$	948