What led to Retail Opportunity Investments Corp (NASDAQ: ROIC) stock decline

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Retail Opportunity Investments Corp (NASDAQ: ROIC) stock fell over 2.1% after the company posted lower than expected results for the fourth quarter of FY 19. ROIC in the fourth quarter of FY 19 has reported the adjusted funds from operations per share of 28 cents, while reported the adjusted revenue of $73.6 million in the fourth quarter of FY 19

During the fourth quarter, the company has acquired the following grocery-anchored shopping center. In December 2019, the company has acquired Summerwalk Village for $11.5 million.  The shopping center is about 58,000 square feet and is anchored by Walmart Neighborhood Market. During 2019, the company had sold four properties, of aggregate $74.1 million, including one property in the fourth quarter for $13.6 million.  The company currently has an agreement to sell one property for about $13.5 million.

Additionally, the company has declared a cash dividend of $0.20 per share, which will be payable on March 30, 2020 to stockholders of record on March 16, 2020. On December 30, 2019, ROIC had distributed a $0.1970 per share cash dividend.  For the year 2019, the company has distributed cash dividends totaling $0.7880 per share. Further, during 2019, the company has issued approximately 1.9 million shares of common stock through its ATM program, raising $34.2 million in proceeds, including raising $15 million in the fourth quarter.

Furthermore, in the fourth quarter the company has amended its $600 million unsecured credit facility, had extended the maturity date to February 2024 and reduced the borrowing rate down to LIBOR plus 0.9%. The credit facility’s existing accordion feature provision, which allows ROIC to increase the facility amount by an additional $600 million, was maintained, as well as the provision to extend the facility’s maturity date for two consecutive six-month periods.  In addition, ROIC has amended its $300 million unsecured term loan, extended the maturity date to January 2025 and reduced the borrowing rate down to LIBOR plus 1.0%. The term loan’s accordion feature provision was maintained, which allows ROIC to increase the loan amount by an additional $200 million.

For the full year 2020 FFO is expected to be within the range of $1.09 to $1.13 per diluted share, and net income is expected to be within the range of $0.35 to $0.40 per diluted share.

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