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TheStreet Open House

Retail Opportunity Investments Corp. Reports Solid 2012 Results

2013 FFO & DIVIDEND GUIDANCE

ROIC currently estimates FFO for 2013 will be within the range of $0.80 to $0.85 per diluted share, and net income will be within the range of $0.12 to $0.14 per diluted share. The following table provides a reconciliation of GAAP net income to FFO. (In thousands, except per share amounts)

  For the year ending December 31, 2013
  Low End High End
Net Income for period $ 7,000 $ 8,000
Plus:    
Depreciation & amortization  40,500  42,500
Funds From Operations (FFO) $  47,500 $  50,500
     
Weighted average diluted shares 59,250 59,250
     
Earnings per diluted share $0.12 $0.14
FFO per diluted share $0.80 $0.85

ROIC's estimates are based on numerous underlying assumptions. ROIC's management will discuss the company's estimates and underlying assumptions on its February 21, 2013 conference call. ROIC's guidance is a forward-looking statement and is subject to risks and other factors described elsewhere in this press release.

CONFERENCE CALL

ROIC will conduct a conference call and audio webcast to discuss its quarterly results on February 21, 2013 at 12:00 p.m. Eastern Time. Those interested in participating in the conference call should dial (877) 312-8783 (domestic), or (408) 940-3874 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the Conference ID: 88746363. A live webcast will also be available in listen-only mode at http://www.roireit.net/ . The conference call will be recorded and available for replay beginning at 4:00 p.m. Eastern Time on February 21, 2013 and will be available until 11:59 p.m. Eastern Time on February 27, 2013. To access the conference call recording, dial (855) 859-2056 (domestic), or (404) 537-3406 (international) and use the Conference ID: 88746363. The conference call will also be archived on http://www.roireit.net/ for approximately 90 days.

ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.

Retail Opportunity Investments Corporation (Nasdaq:ROIC) is a fully integrated, self-managed real estate investment trust.  ROIC specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers, anchored by national or regional supermarkets and drugstores.  At December 31, 2012, ROIC's property portfolio included 45 shopping centers encompassing approximately 4.8 million square feet. Additional information is available at www.roireit.net .

The Retail Opportunity Investments Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6855

When used herein, the words "believes," "anticipates," "projects," "should," "estimates," "expects," and similar expressions are intended to identify forward-looking statements with the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities and Exchange Act of 1934, as amended. Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ROIC to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors. Additional information regarding these and other factors is described in ROIC's filings with the SEC, including its most recent Annual Report on Form 10-K.

RETAIL OPPORTUNITY INVESTMENTS CORP. CONSOLIDATED BALANCE SHEETS
 
  December 31, 2012 December 31, 2011
ASSETS    
Real Estate Investments:    
Land $   283,445,257 $  167,191,883
Building and improvements  588,248,338 413,640,527
   871,693,595 580,832,410
Less: accumulated depreciation  32,364,772 14,451,032
   839,328,823 566,381,378
Mortgage notes receivable  10,000,000 10,000,000
Investment in and advances to unconsolidated joint ventures  15,295,223 26,242,514
Real Estate Investments, net  864,624,046 602,623,892
Cash and cash equivalents 4,692,230 34,317,588
Restricted cash 1,700,692 1,230,808
Tenant and other receivables, net 12,455,190 6,895,806
Deposits 2,000,000 500,000
Acquired lease intangible asset, net of accumulated amortization 41,230,616 32,024,153
Prepaid expenses 1,245,778 672,679
Deferred charges, net of accumulated amortization 21,623,474 15,342,132
Other 1,339,501 825,569
Total assets $ 950,911,527 $  694,432,627
     
LIABILITIES AND EQUITY    
Liabilities:    
Term loan $   200,000,000 $  110,000,000
Credit facilities 119,000,000  —
Mortgage notes payable 72,689,842 59,905,964
Acquired lease intangibles liability, net of accumulated amortization 57,371,803 46,700,620
Accounts payable and accrued expenses 6,468,580 7,475,283
Tenants' security deposits 2,336,680 1,552,630
Other liabilities 26,502,551 18,309,076
Total liabilities $   484,369,456 $ 243,943,573
     
Commitments and contingencies
     
Equity:    
Preferred stock, $.0001 par value 50,000,000 shares authorized; none issued and outstanding
Common stock, $.0001 par value 500,000,000 shares authorized; and 52,596,754 and 49,375,738 shares issued and outstanding at December 31, 2012 and 2011 5,260 4,938
Additional paid-in-capital 523,540,268 484,194,434
Accumulated deficit (38,851,234) (19,617,877)
Accumulated other comprehensive loss (18,154,612) (14,094,830)
Total Retail Opportunity Investments Corp. stockholders' equity 466,539,682 450,486,665
Noncontrolling interests 2,389 2,389
Total equity 466,542,071 450,489,054
Total liabilities and equity $   950,911,527 $  694,432,627
 
RETAIL OPPORTUNITY INVESTMENTS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS
 
  For the Three Months Ended For the Year Ended
  December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011
Revenue        
Base rents $ 16,483,947 $ 13,140,344 $ 59,218,635 $ 39,581,142
Recoveries from tenants 4,751,966 3,302,406 14,770,963 10,247,715
Mortgage interest 204,444 204,561 1,106,089 1,908,655
Total revenues 21,440,357 16,647,311 75,095,687 51,737,512
         
Operating expenses        
Property operating 3,455,618 3,120,245 12,779,758 8,409,771
Property taxes 2,165,852 1,460,903 7,281,213 5,022,544
Depreciation and amortizations 8,336,792 6,602,806 29,074,709 21,264,172
General & administrative expenses 4,342,231 2,547,417 13,058,608 9,801,233
Acquisition transaction costs 400,206 515,304 1,347,611 2,290,838
Total operating expenses 18,700,699 14,246,675 63,541,899 46,782,558
         
Operating Income (loss) 2,739,658 2,400,636 11,553,788 4,954,954
Non-operating income (expenses)        
Interest expense and other finance expenses (3,234,979) (2,492,459) (11,379,857) (6,225,084)
Gain on consolidation of JV -- -- 2,144,696 --
Gain on bargain purchase -- -- 3,864,145 9,449,059
Equity in earnings from unconsolidated joint ventures 216,849 320,747 1,697,980 1,458,249
Interest income 162 4,654 11,861 19,143
         
Net Income (Loss) Attributable to Retail Opportunity Investments Corp. $   (278,310) $ 233,578 $ 7,892,613 $ 9,656,321
         
Basic and diluted per share:     $ (0.01) $ 0.01 $ 0.15 $ 0.23
         
Dividends per common share $ 0.14 $0.12 $ 0.53 $ 0.39
CALCULATION OF FUNDS FROM OPERATIONS
(unaudited)
 
  For the Three Months Ended For the Year Ended
  December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011
         
Net income (loss) for period $   (278,310) $     233,578  $   7,892,613 $    9,656,321 
Plus: Real property depreciation 3,965,113 3,040,218 14,265,121 9,460,303
Amortization of tenant improvements and allowances 1,684,028 977,998 4,956,577 2,931,160
Amortization of deferred leasing costs 3,137,007 3,225,622 12,027,888 10,993,941
Funds from operations $  8,507,838 $   7,477,416 $  39,142,199 $    33,041,725
Plus: Acquisition transaction costs 400,206 515,304 1,347,611 2,290,838
Modified funds from operations $   8,908,044 $  7,992,720 $   40,489,810 $     35,332,563
         
Net Cash Provided by (Used in):        
Operating Activities $  5,524,022 $   3,462,969  $   24,720,566 $   17,286,197
Investing Activities $   (135,471,238)  $   (19,875,614 )  $   (261,574,478) $   (225,154,948)
Financing Activities $   111,150,622 $   42,469,799  $   207,228,554 $   157,449,929
         

ROIC computes FFO in accordance with the "White Paper" on FFO published by NAREIT, which defines FFO as net income attributable to common shareholders (determined in accordance with GAAP) excluding gains or losses from debt restructuring and sales of property and impairments, plus real estate related depreciation and amortization, and after adjustments for partnerships and unconsolidated joint ventures. FFO as defined by ROIC may not be comparable to similarly titled items reported by other real estate investment trusts due to possible differences in the application of the NAREIT definition used by such REITs.  In addition, ROIC calculates modified FFO, by adding acquisition transaction costs associated with business combinations which have been expensed in accordance with GAAP to FFO as defined above. For the three months ended December 31, 2012 and 2011, ROIC expensed $400,206 and $515,304, respectively relating to real estate acquisitions. For the year ended December 31, 2012 and 2011, ROIC expensed $1,347,611 and $2,290,838, respectively relating to real estate acquisitions. The table above provides a reconciliation of net income applicable to stockholders in accordance with GAAP to FFO and modified FFO for the three and twelve months ended December 31, 2012 and 2011.

CONTACT: Ashley Bulot, Investor Relations
         858-255-4913
         abulot@roireit.net

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