Retail Opportunity Investments Corp. (NASDAQ:ROIC) has reported its financial and operating results for the second quarter of 2024. The company's net income attributable to common stockholders was $7.4 million, or $0.06 per diluted share, compared to $9.9 million, or $0.08 per diluted share, for the same period in 2023. For the six months ended June 30, 2024, the net income was $18.4 million, or $0.14 per diluted share, compared to $18.1 million, or $0.14 per diluted share, in the prior year.
In terms of funds from operations (FFO), ROIC reported $34.1 million, or $0.25 per diluted share, for the second quarter of 2024, down from $35.6 million, or $0.27 per diluted share, in the second quarter of 2023. For the first six months of 2024, FFO was $72.1 million, or $0.54 per diluted share, compared to $69.4 million, or $0.52 per diluted share, for the same period in 2023.
The company's portfolio lease rate increased to 97.0% at the end of the second quarter of 2024, up from 96.4% at the end of the first quarter of 2024. Additionally, ROIC achieved a 12.4% increase in same-space cash base rents on new leases in the second quarter of 2024, with a 5.8% increase on renewals.
During the second quarter of 2024, ROIC acquired a dual grocery-anchored shopping center for $70.1 million and sold a property for $56.6 million. The company also retired a $26.0 million mortgage, leaving one mortgage remaining at the end of the quarter, totaling $33.6 million and maturing in October 2025.
ROIC's total real estate assets (before accumulated depreciation) stood at approximately $3.5 billion at the end of June 2024, with approximately $1.4 billion of principal debt outstanding, including $164.0 million outstanding on its $600.0 million unsecured credit facility. The net principal debt-to-annualized EBITDA ratio for the second quarter of 2024 was 6.6 times.
The company's environmental, social, and governance (ESG) efforts were recognized as it was selected as a green lease leader by the U.S. Department of Energy's Better Buildings Alliance for the fourth consecutive year. ROIC also issued its fifth ESG annual report in June 2024.
In terms of dividends, ROIC distributed a $0.15 per share cash dividend on July 10, 2024, and declared another cash dividend of $0.15 per share, payable on October 4, 2024.
Looking ahead, ROIC updated its FFO per diluted share guidance for 2024 to be in the range of $1.04 to $1.07. The company also provided guidance for GAAP net income to be within the range of $0.25 to $0.28 per diluted share for the year ended December 31, 2024.
ROIC is a fully-integrated, self-managed real estate investment trust that specializes in the acquisition, ownership, and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast. As of June 30, 2024, ROIC owned 95 shopping centers encompassing approximately 10.7 million square feet. Following these announcements, the company's shares moved -1.2%, and are now trading at a price of $13.48. For the full picture, make sure to review Retail Opportunity Investments's 8-K report.
