Retail Opportunity InvestmentsNASDAQ: ROIC

Deckers Outdoor Corp. (DECK, Financial) has a great history of compounding its shareholders' money over time. Over the past 10 years, its share price has advanced by 1,133%, equivalent to a 28.80% compounded annual return.

Retail Opportunity Investments operates grocery-anchored shopping centers with a focus on the West Coast. Q1 2024 occupancy was down 1.9% Y/Y to 96.4% but is expected to recover quickly. Net debt accounts for 45% of enterprise value but there are no maturities after 2028 despite well-laddered structure.

Retail Opportunity Investments Corp. is an undervalued shopping center REIT focused on the U.S. West Coast.

Investing has a lot to do with common sense. However, making investment decisions without looking at some of the basic financials and ratios would be dangerous.

Retail Opportunity Investments Corp. (ROIC) Q4 2023 Earnings Call Transcript

Although the revenue and EPS for Retail Opportunity Investments (ROIC) give a sense of how its business performed in the quarter ended December 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Retail Opportunity Investments (ROIC) came out with quarterly funds from operations (FFO) of $0.27 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.27 per share a year ago.

Retail Opportunity Investments is a West Coast-focused REIT with strong fundamentals and a solid portfolio of grocery-anchored shopping centers. Despite a drop in valuation, ROIC maintains high occupancy rates and investment-grade credit ratings. The company offers a 5%+ yield and potential for growth, making it a good alternative for investors seeking diversification and West Coast exposure.

Retail Opportunity Investments Corp. stock has underperformed the Vanguard Real Estate Index ETF in the past year. It owns shopping center properties along the West Coast with a high leased rate, and the majority of tenants are e-commerce resistant. ROIC is materially undervalued compared to both its historical valuation as well as that of its peers.