This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A West Coast REIT Making Waves

Stocks in this article: ROIC

NEW YORK ( TheStreet) -- Last week I told you about a diamond in the rough named Retail Opportunity Investment (ROIC - Get Report). This REIT and owner of around 45 shopping centers has built a strategic platform of investing in high-quality retail properties in southern and northern California, Portland, and Seattle.

With a value proposition centered around necessity branded tenants, ROIC has grown by leasing space many leading national chains including Safeway (SWY), Kroger (KR), Albertson's, PetSmart (PETM), and JPMorgan Chase (JPM).



In addition, ROIC's differentiated model focuses on acquiring properties from distressed or under-capitalized shopping center owners. This focused strategy has enabled the company to capitalize on its extensive network of relationships with retailers, brokers, institutional owners, banks, private owners, and other real estate operators.

With a market cap of around $921 million and a very conservative capital structure, ROIC has the potential to be a top REIT performer this year. On March 15, the company had approximately $12.0 million outstanding on its $250 million unsecured credit facility and a total debt to market capitalization ratio of approximately 25%, based on total debt outstanding of approximately $293.6 million and 66.3 million shares of common stock outstanding.

ROIC recently announced that 57.3% of the company's total outstanding warrants have been retired including 12,570,226 warrants exercised, providing ROIC with around $150.8 million of proceeds, 7.75 million warrants repurchased by ROIC for around $10.7 million, and 8 million founders' warrants.

Since that news, ROIC shares have climbed over 7%, to $13.89 (shares hit an all-time high of $13.95 on March 22). ROIC's dividend yield is 4.32% and the company expects to grow its income by acquiring more high-quality assets. In 2012, the San Diego-based REIT acquired 14 shopping centers amounting to $276.1 million, including five shopping centers acquired in Q4 for $139.3 million.



Recently I was in New York City and I had an opportunity to meet with ROIC's Stuart Tanz at TheStreet. Tanz provided some insightful news on how this REIT is making waves.

At the time of publication the author had no position in any of the stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs