Retail Opportunity InvestmentsNASDAQ: ROIC

Retail Opportunity Investments Corp. (NASDAQ:ROIC ) Q3 2024 Earnings Conference Call October 23, 2024 9:00 AM ET Company Participants Lauren Silveira - Chief Accounting Officer Stuart Tanz - President and Chief Executive Officer Michael Haines - Chief Financial Officer Richard Schoebel - Chief Operating Officer Conference Call Participants Dori Kesten - Wells Fargo Securities Juan Sanabria - BMO Capital Markets Craig Mailman - Citi Todd Thomas - KeyBanc Capital Markets Wesley Golladay - Baird Michael Mueller - JPMorgan Paulina Rojas-Schmidt - Green Street Operator Welcome to Retail Opportunity Investments' Third Quarter 2024 Conference Call. Participants are currently in a listen-only mode.

Retail Opportunity Investments (ROIC) came out with quarterly funds from operations (FFO) of $0.25 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to FFO of $0.27 per share a year ago.

SAN DIEGO, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the three and nine months ended September 30, 2024.

Steel Dynamics has compounded NOPAT by 19% annually since 2019, with ROIC rising from 11.96% to 15.15%, showcasing strong profitability and management alignment with shareholder interests. The firm has consistently earned economic profits, totaling $8.7 billion since 2019, by maintaining a ROIC greater than its WACC. Despite its profitability, STLD is priced for a 3% permanent decline in NOPAT, presenting a value investment opportunity.

ROIC's portfolio shows strong demand and high occupancy but the REIT has experienced a deceleration in growth and FFO declines. Despite a solid balance sheet and diversified tenant base, the stock's current price is inflated due to an acquisition rumor. Given the mediocre performance, low yield, and high price level, I think holding off on buying ROIC until the prospect of an acquisition is resolved is most wise.

During a market sell-off, such as the one investors have been experiencing this week, particularly with Japan's stock market index (Nikkei 225) selling off by double-digits in a single week only to recover by 12% the day after the crash, investors need to know where their money could be allocated as a discount buying strategy. The last time the market sold off by this much was October 2023, and these types of stocks rallied by double-digits in the following quarter.

Retail Opportunity Investments (ROIC) came out with quarterly funds from operations (FFO) of $0.25 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to FFO of $0.27 per share a year ago.

With a target price of $15/share and a "BUY" rating, ROIC presents a solid opportunity for investors looking for long-term growth and stability in their portfolio. ROIC is a REIT with strong fundamentals, stable portfolio, and potential for outperformance, making it a compelling investment option. Despite not being a class leader, ROIC offers diversification potential, attractive yield, and potential for a buyout, making it a worthwhile investment.

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.