CoStar Group Grows Second Quarter Revenue 21% and Drives Expenses Down 6% Year-over-Year

July 27, 2016 0

WASHINGTON, July 27, 2016 (GLOBE NEWSWIRE) — CoStar Group, Inc. (NASDAQ:CSGP), the leading provider of commercial real estate information, analytics and online marketplaces, announced today that revenue for the quarter ended June 30, 2016 was $207 million, an increase of 21% over revenue of $171 million for the second quarter of 2015. Cost of revenues and operating expenses were reduced by 6% in the second quarter of 2016 to $179 million versus $191 million in the second quarter of 2015.

“After a successful investment year in 2015, we have created a surge in profitability in the first half of 2016 as we continue to grow the top line impressively and deliver strong margin improvement,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “We grew revenue by $36 million and cut expenses by $12 million in the second quarter of 2016 compared to the second quarter of 2015. CoStar Suite revenue growth accelerated to 14% in the second quarter of 2016 versus the second quarter of 2015 and multifamily revenue increased 58% with 24% pro-forma growth over the same period.”

Florance stated, “In the first half of 2016, Apartments.com continued to break away from the pack as the most trafficked apartment internet listing site. According to comScore, in June 2016 Apartments.com generated nearly 23 million visits, which is more than all other apartment internet listing sites. In the same month compared to last year, Apartments.com unique visitors grew 40%, while our two primary competitors saw decreases of 9% and 14%, respectively.”

Year 2015-2016 Quarterly Results – Unaudited
(in millions, except per share data)
  2015   2016
  Q1 Q2 Q3 Q4   Q1 Q2
               
Revenues $ 159   $ 171   $ 189   $ 193     $ 200   $ 207  
Net income (loss) (6 ) (15 ) (5 ) 23     17   16  
Net income (loss) per share – diluted (0.19 ) (0.47 ) (0.17 ) 0.71     0.52   0.48  
Weighted average outstanding shares – diluted 31.8   31.9   32.0   32.3     32.4   32.4  
               
EBITDA 14   (1 ) 22   55     48   46  
Adjusted EBITDA 24   11   36   65     58   56  
Non-GAAP Net Income 11   2   17   36     31   29  
Non-GAAP Net Income per share – diluted 0.34   0.08   0.53   1.10     0.95   0.91  
                           

Net income for the second quarter of 2016 increased to $16 million or $0.48 per diluted share compared to a net loss of $(15) million in the second quarter of 2015. EBITDA in the second quarter of 2016 was $46 million compared to $(1) million in the second quarter of 2015, an increase of $47 million.

Non-GAAP net income (defined below) for the quarter ended June 30, 2016 was $29 million or $0.91 per diluted share, an increase of $27 million compared to non-GAAP net income of $2 million in the second quarter of 2015. Adjusted EBITDA (which excludes stock-based compensation and other items as defined below) was $56 million for the second quarter of 2016 versus $11 million in the second quarter of 2015, which is an increase of 394% year-over-year.

As of June 30, 2016, the Company had approximately $475 million in cash, cash equivalents and investments, which is an increase of $38 million since December 31, 2015. Short and long-term debt outstanding, net of debt issuance costs, totaled approximately $337 million as of June 30, 2016.

2016 Outlook 

“The Company continued to deliver strong revenue growth and better than expected earnings in the second quarter of 2016,” stated Scott Wheeler, Chief Financial Officer of CoStar Group. “With our continued focus on cost management, we are increasing our full-year earnings outlook and expect further margin expansion in the second half of the year.”

Wheeler continued, “In the second quarter of 2016, we achieved the second highest sales quarter in our history in both CoStar Suite and Multifamily. For the fifth consecutive quarter, we generated over $25 million in net bookings with $26 million in net bookings in the second quarter of 2016. Annualized net new sales on annual subscriptions were $23 million in the second quarter of 2016.”

The Company expects revenue of approximately $211 million to $213 million for the third quarter of 2016. Adjusting for the shut-down of non-core services at Apartment Finder in 2015, the current outlook anticipates pro-forma revenue growth (defined below) in the range of 13% to 14% for the third quarter of 2016 over the third quarter of 2015. For the full year of 2016, the Company reaffirms its revenue outlook of approximately $834 million to $840 million.  

The Company exceeded its second quarter 2016 non-GAAP net income per share outlook by approximately $0.09 at the midpoint and expects to reinvest a portion of this favorability into growth initiatives in the third and fourth quarters of 2016. For the third quarter of 2016, the Company expects non-GAAP net income per diluted share (defined below) of approximately $1.00 to $1.04. For the full year of 2016, the Company expects non-GAAP net income per diluted share in a range of approximately $4.05 to $4.13, raising the midpoint by $0.04 from the prior outlook, and by $0.42 from the Company’s initial 2016 guidance.

The preceding forward-looking statements reflect CoStar Group’s expectations as of July 27, 2016, including forward-looking non-GAAP financial measures on a consolidated basis. We are not able to forecast with certainty whether or when certain events, such as acquisition-related costs, the exact amounts or timing of investments, transition, restructuring, settlements or impairments will occur in any given quarter. Given the risk factors, uncertainties and assumptions discussed above, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.

Reconciliation of EBITDA, adjusted EBITDA, non-GAAP net income and non-GAAP net income per diluted share and all of the disclosed non-GAAP financial measures to their GAAP basis results are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.

Non-GAAP Financial Measures

For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company’s financial condition and results of operations, please refer to the Company’s latest periodic report.

EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before (i) interest income (expense), (ii) provision for income taxes, and (iii) depreciation and amortization.

Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before (i) stock-based compensation expense, (ii) acquisition and integration related costs, (iii) restructuring charges and related costs, and (iv) settlements and impairments incurred outside the Company’s normal business operations.

Non-GAAP net income is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before (i) purchase amortization and other related costs, (ii) stock-based compensation expense, (iii) acquisition and integration related costs, (iv) purchase accounting adjustments, (v) restructuring charges and related costs, and (vi) settlements and impairments. From this figure, we then subtract an assumed provision for income taxes to arrive at non-GAAP net income. The company assumes a 38% tax rate in order to approximate our long-term effective corporate tax rate.

Non-GAAP net income per diluted share (also referred to as non-GAAP EPS) is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period. For periods with GAAP net losses and non-GAAP net income, the weighted-average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.

Pro-forma Revenue Definition

Pro-forma revenue growth rates presented in this release include the addition of Apartment Finder core online marketplace revenue recognized prior to the June 1, 2015 acquisition date and exclude any pre- or post- acquisition revenue for discontinued Apartment Finder services such as Finder Social. 

Earnings Conference Call

Management will conduct a conference call at 11:00 AM EDT on Thursday, July 28, 2016 to discuss earnings results for the second quarter of 2016 and the Company’s outlook. The audio portion of the conference call will be broadcast live over the Internet at www.costargroup.com/investors/events. To join the conference call by telephone, please dial (800) 230-1059 (from the United States and Canada) or (612) 234-9959 (from all other countries) and refer to conference code 397279. An audio recording of the conference call will be available for replay approximately one hour after the call’s completion and will remain available for a period of time following the call. To access the recorded conference call, please dial (800) 475-6701 (from the U.S. and Canada) or (320) 365-3844 (from all other countries) using access code 397279. The webcast replay will also be available in the Investors section of CoStar Group’s website for a period of time following the call.

CoStar Group, Inc.
Condensed Consolidated Statements of Operations-Unaudited
(in thousands, except per share data)
                 
    Three Months Ended

June 30,
  Six Months Ended

June 30,
    2016   2015   2016   2015
                 
                 
Revenues   $ 206,869     $ 170,657     $ 406,608     $ 329,677  
Cost of revenues   42,679     44,634     85,579     90,030  
Gross margin   164,190     126,023     321,029     239,647  
                 
Operating expenses:                
Selling and marketing   80,468     92,434     155,672     161,912  
Software development   19,547     16,844     37,182     31,992  
General and administrative   30,227     29,909     57,703     55,272  
Purchase amortization   5,829     6,965     12,052     14,107  
    136,071     146,152     262,609     263,283  
                 
Income (loss) from operations   28,119     (20,129 )   58,420     (23,636 )
Interest and other income   159     137     243     431  
Interest and other expense   (2,455 )   (2,354 )   (4,964 )   (4,697 )
Income (loss) before income taxes   25,823     (22,346 )   53,699     (27,902 )
Income tax expense (benefit), net   10,247     (7,380 )   21,402     (6,809 )
Net income (loss)   $ 15,576     $ (14,966 )   $ 32,297     $ (21,093 )
                 
Net income (loss) per share – basic   $ 0.48     $ (0.47 )   $ 1.01     $ (0.66 )
Net income (loss) per share – diluted   $ 0.48     $ (0.47 )   $ 1.00     $ (0.66 )
                 
Weighted average outstanding shares – basic   32,186     31,991     32,135     31,911  
Weighted average outstanding shares – diluted   32,448     31,991     32,415     31,911  
                         

CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures-Unaudited
(in thousands, except per share data)
                 
Reconciliation of Net Income (Loss) to Non-GAAP Net Income
    Three Months Ended

June 30,
  Six Months Ended

June 30,
    2016   2015   2016   2015
                 
Net income (loss)   $ 15,576     $ (14,966 )   $ 32,297     $ (21,093 )
Income tax expense (benefit), net   10,247     (7,380 )   21,402     (6,809 )
Income (loss) before income taxes   25,823     (22,346 )   53,699     (27,902 )
Purchase amortization and other related costs   11,516     13,541     23,435     27,030  
Stock-based compensation expense   9,339     8,415     17,670     15,857  
Acquisition and integration related costs   811     2,936     2,258     3,560  
Settlements and impairments       1,376         2,778  
Non-GAAP income before income taxes   47,489     3,922     97,062     21,323  
Assumed rate for income tax expense, net *   38 %   38 %   38 %   38 %
Assumed provision for income tax expense, net   (18,046 )   (1,491 )   (36,884 )   (8,103 )
Non-GAAP net income   $ 29,443     $ 2,431     $ 60,178     $ 13,220  
                 
Net income (loss) per share – diluted   $ 0.48     $ (0.47 )   $ 1.00     $ (0.66 )
Non-GAAP net income per share – diluted**   $ 0.91     $ 0.08     $ 1.86     $ 0.41  
                 
Weighted average outstanding  shares – basic   32,186     31,991     32,135     31,911  
Weighted average outstanding  shares – diluted**   32,448     32,286     32,415     32,229  
                 
* A 38% tax rate is assumed in order to approximate the Company’s long-term effective corporate tax rate.
** For periods with GAAP net losses and non-GAAP net income, the weighted-average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.
                 
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
    Three Months Ended

June 30,
  Six Months Ended

June 30,
    2016   2015   2016   2015
                 
Net income (loss)   $ 15,576     $ (14,966 )   $ 32,297     $ (21,093 )
Purchase amortization in cost of revenues   5,687     6,576     11,383     12,923  
Purchase amortization in operating expenses   5,829     6,965     12,052     14,107  
Depreciation and other amortization   5,924     5,133     11,526     9,457  
Interest income   (159 )   (137 )   (243 )   (431 )
Interest expense   2,455     2,354     4,964     4,697  
Income tax expense (benefit), net   10,247     (7,380 )   21,402     (6,809 )
EBITDA   $ 45,559     $ (1,455 )   $ 93,381     $ 12,851  
Stock-based compensation expense   9,339     8,415     17,670     15,857  
Acquisition and integration related costs   811     2,936     2,258     3,560  
Settlements and impairments       1,376         2,778  
Adjusted EBITDA   $ 55,709     $ 11,272     $ 113,309     $ 35,046  
                                 

CoStar Group, Inc.
Condensed Consolidated Balance Sheets – Unaudited
(in thousands)
         
    June 30, 2016   December 31, 2015
    (Unaudited)    
ASSETS        
Current assets:        
Cash and cash equivalents   $ 464,151     $ 421,818  
Short-term investments   1,130      
Accounts receivable, net   45,890     40,276  
Income tax receivable   154     430  
Prepaid expenses and other current assets   12,894     10,209  
Total current assets   524,219     472,733  
         
Long-term investments   9,906     15,507  
Deferred income taxes, net   8,581     9,107  
Property and equipment, net   86,508     88,311  
Goodwill   1,256,940     1,252,945  
Intangible assets, net   218,501     238,318  
Deposits and other assets   2,579     2,650  
Total assets   $ 2,107,234     $ 2,079,571  
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable and accrued expenses   $ 79,756     $ 76,397  
Current portion of long-term debt   11,812     16,746  
Deferred revenue   41,262     42,138  
Total current liabilities   132,830     135,281  
         
Long-term debt, less current portion   324,910     338,366  
Deferred gain on sale of building   19,977     21,239  
Deferred rent   29,238     29,628  
Deferred income taxes, net   7,533     4,585  
Income taxes payable   6,805     6,692  
         
Stockholders’ equity   1,585,941     1,543,780  
Total liabilities and stockholders’ equity   $ 2,107,234     $ 2,079,571  
                 

CoStar Group, Inc.
Results of Segments-Unaudited
(in thousands)
               
  Three Months Ended

June 30,
  Six Months Ended

June 30,
  2016   2015   2016   2015
Revenues              
North America $ 199,859     $ 164,486     $ 393,120     $ 317,503  
International              
External customers 7,010     6,171     13,488     12,174  
Intersegment revenue * 10     13     21     21  
Total International revenue 7,020     6,184     13,509     12,195  
Intersegment eliminations (10 )   (13 )   (21 )   (21 )
Total revenues $ 206,869     $ 170,657     $ 406,608     $ 329,677  
               
EBITDA              
North America ** $ 45,127     $ (1,854 )   $ 91,991     $ 11,823  
International *** 432     399     1,390     1,028  
Total EBITDA $ 45,559     $ (1,455 )   $ 93,381     $ 12,851  
               
*Intersegment revenue recorded during 2015 and 2016 was attributable to services performed for the Company’s wholly owned subsidiary, CoStar Portfolio Strategy by Grecam S.A.S. (“Grecam”), a wholly owned subsidiary of CoStar Limited, the Company’s wholly owned U.K. holding company.
               
**North America EBITDA includes an allocation of approximately $142,000 and $336,000 for the three months ended June 30, 2016 and 2015, respectively. North America EBITDA includes an allocation of approximately $309,000 and $538,000 for the six months ended June 30, 2016 and 2015, respectively. This allocation represents costs incurred for International employees involved in development activities of the Company’s North America operating segment.
               
***International EBITDA includes a corporate allocation of approximately $78,000 and $69,000 for the three months ended June 30, 2016 and 2015, respectively. International EBITDA includes a corporate allocation of approximately $133,000 and $126,000 for the six months ended June 30, 2016 and 2015, respectively. This allocation represents costs incurred for North America employees involved in management and expansion activities of the Company’s International operating segment.
 

CoStar Group, Inc.
Revenues by Services-Unaudited
(in thousands)
                 
    Three Months Ended

June 30,
  Six Months Ended

June 30,
    2016   2015   2016   2015
                 
Information and analytics                
CoStar Suite   $ 101,074     $ 88,771     $ 198,708     $ 175,581  
Information services   19,425     18,752     38,850     37,289  
Online marketplaces                
Multifamily   54,860     34,742     107,098     60,875  
Commercial property and land   31,510     28,392     61,952     55,932  
Total revenues   $ 206,869     $ 170,657     $ 406,608     $ 329,677  
                                 

CoStar Group, Inc.

Reconciliation of Non-GAAP Financial Measures with 2015-2016 Quarterly Results – Unaudited
(in millions, except per share data)
                 
Reconciliation of Net Income (Loss) to Non-GAAP Net Income
                 
    2015   2016
    Q1 Q2 Q3 Q4   Q1 Q2
                 
Net income (loss)   $ (6.1 ) $ (15.0 ) $ (5.4 ) $ 23.0     $ 16.7   $ 15.6  
Income tax expense (benefit), net   0.6   (7.4 ) 2.6   10.2     11.2   10.2  
Income (loss) before income taxes   (5.5 ) (22.4 ) (2.8 ) 33.2     27.9   25.8  
Purchase amortization and other related costs   13.5   13.5   17.1   13.9     11.9   11.5  
Stock-based compensation expense   7.4   8.4   9.3   9.4     8.3   9.3  
Acquisition and integration related costs   0.6   2.9   1.8   1.0     1.5   0.8  
Restructuring and related costs       2.3   (0.3 )      
Settlements and impairments   1.4   1.4            
Non-GAAP income before income taxes   17.4   3.9   27.7   57.2     49.6   47.5  
Assumed rate for income tax expense, net *   38 % 38 % 38 % 38 %   38 % 38 %
Assumed provision for income tax expense, net   (6.6 ) (1.5 ) (10.5 ) (21.7 )   (18.9 ) (18.0 )
Non-GAAP net income   $ 10.8   $ 2.4   $ 17.2   $ 35.5     $ 30.7   $ 29.4  
                 
Non-GAAP net income per share – diluted**   $ 0.34   $ 0.08   $ 0.53   $ 1.10     $ 0.95   $ 0.91  
                 
Weighted average outstanding  shares – basic   31.8   32.0   32.0   32.0     32.1   32.2  
Weighted average outstanding  shares – diluted**   32.2   32.3   32.2   32.3     32.4   32.4  
                 
* A 38% tax rate is assumed in order to approximate the Company’s long-term effective corporate tax rate.  
** For periods with GAAP net losses and non-GAAP net income, the weighted-average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.  
   
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
                 
    2015   2016
    Q1 Q2 Q3 Q4   Q1 Q2
                 
Net income (loss)   $ (6.1 ) $ (15.0 ) $ (5.4 ) $ 23.0     $ 16.7   $ 15.6  
Purchase amortization   13.5   13.5   17.1   13.9     11.9   11.5  
Depreciation and other amortization   4.3   5.1   5.4   5.7     5.6   5.9  
Interest income   (0.3 ) (0.1 )   (0.0 ) (0.1 )   (0.1 ) (0.2 )
Interest expense   2.3   2.4   2.4   2.3     2.5   2.5  
Income tax expense (benefit), net   0.6   (7.4 ) 2.6   10.2     11.2   10.2  
EBITDA   $ 14.3   $ (1.5 ) $ 22.1   $ 55.0     $ 47.8   $ 45.6  
Stock-based compensation expense   7.4   8.4   9.3   9.4     8.3   9.3  
Acquisition and integration related costs   0.6   2.9   1.8   1.0     1.5   0.8  
Restructuring and related costs       2.3   (0.3 )      
Settlements and impairments   1.4   1.4            
Adjusted EBITDA   $ 23.7   $ 11.2   $ 35.5   $ 65.1     $ 57.6   $ 55.7  
                                         

CoStar Group, Inc.
Reconciliation of Forward-Looking Guidance-Unaudited
(in thousands, except per share data)
               
Reconciliation of Forward-Looking Guidance, Net Income to Non-GAAP Net Income
  Guidance Range   Guidance Range
  For the Three Months   For the Twelve Months
  Ended September 30, 2016   Ended December 31, 2016
  Low   High   Low   High
               
Net income $ 18,400     $ 20,400     $ 72,200     $ 77,400  
Income tax expense, net 12,200     13,600     48,100     51,600  
Income before income taxes 30,600     34,000     120,300     129,000  
Purchase amortization and other related costs 11,200     11,200     46,000     46,000  
Stock-based compensation expense 10,000     9,000     40,000     36,000  
Acquisition and integration related costs         2,300     2,300  
Restructuring and related costs 600     300     3,000     2,500  
Non-GAAP income before income taxes 52,400     54,500     211,600     215,800  
Assumed rate for income tax expense, net * 38 %   38 %   38 %   38 %
Assumed provision for income tax expense, net (19,900 )   (20,700 )   (80,400 )   (82,000 )
Non-GAAP net income $ 32,500     $ 33,800     $ 131,200     $ 133,800  
               
Net income per share – diluted $ 0.57     $ 0.63     $ 2.23     $ 2.39  
Non-GAAP net income per share – diluted $ 1.00     $ 1.04     $ 4.05     $ 4.13  
               
Weighted average outstanding  shares – diluted 32,500     32,500     32,400     32,400  
               
* A 38% tax rate is assumed in order to approximate the Company’s long-term effective corporate tax rate.
               
Reconciliation of Forward-Looking Guidance, Net Income to Adjusted EBITDA  
       
  Guidance Range   Guidance Range
  For the Three Months   For the Twelve Months
  Ended September 30, 2016   Ended December 31, 2016
  Low   High   Low   High
Net income $ 18,400     $ 20,400     $ 72,200     $ 77,400  
Purchase amortization and other related costs 11,200     11,200     46,000     46,000  
Depreciation and other amortization 6,400     6,400     24,600     24,600  
Interest and other expense (income), net 2,400     2,400     9,700     9,700  
Income tax expense, net 12,200     13,600     48,100     51,600  
Stock-based compensation expense 10,000     9,000     40,000     36,000  
Acquisition and integration related costs         2,300     2,300  
Restructuring and related costs 600     300     3,000     2,500  
Adjusted EBITDA $ 61,200     $ 63,300     $ 245,900     $ 250,100  
                               

About CoStar Group, Inc.

CoStar Group, Inc. (NASDAQ:CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. LoopNet is the most heavily trafficked commercial real estate marketplace online with more than 10 million registered members. Apartments.com, ApartmentFinder.com and ApartmentHomeLiving.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Through an exclusive partnership with Move, a subsidiary of News Corporation, Apartments.com is the exclusive provider of apartment community listings across Move’s family of websites, which include realtor.com®, doorsteps.com and move.com. CoStar Group’s websites attracted an average of nearly 25 million unique monthly visitors in aggregate in the second quarter of 2016. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe and Canada with a staff of approximately 2,700 worldwide, including the industry’s largest professional research organization. For more information, visit www.costargroup.com.

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group’s financial expectations, the Company’s plans, objectives, expectations and intentions and other statements including words such as “hope,” “anticipate,” “may,” “believe,” “expect,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential” or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to significant risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risk that the trends stated or implied by this release cannot or will not be sustained at the current pace, including trends related to sales bookings, earnings, profitability, revenue, margin improvement, unique visitors and monthly visits; the risk that the Company is unable to sustain current growth rates or increase them; the risk that cost management efforts do not produce the expected results; the risk that top line growth and/or margin expansion do not continue throughout 2016; the risk that revenues for the third quarter and full year 2016 will not be as stated in this press release; the risk that net income for the third quarter and full year 2016 will not be as stated in this press release; the risk that non-GAAP net income and non-GAAP net income per diluted share for the third quarter and full year 2016 will not be as stated in this press release; the risk that adjusted EBITDA for the third quarter and full year 2016 will not be as stated in this press release; and the risk that the Company’s plans for reinvestment in growth initiatives in the third and fourth quarters change. Additional factors that could cause results to differ materially from those anticipated in the forward-looking statements can be found in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2015, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, and the Company’s other filings with the SEC available at the SEC’s website (www.sec.gov). CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

All ContactsScott Wheeler Chief Financial Officer(202) 336-6920swheeler@costar.comRichard SimonelliVice President, Investor Relations(202) 346-6394rsimonelli@costar.com

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Retail Opportunity Investments Corp. Reports Strong Second Quarter Results

July 27, 2016 0

SAN DIEGO, July 27, 2016 (GLOBE NEWSWIRE) — Retail Opportunity Investments Corp. (NASDAQ:ROIC) announced today financial and operating results for the second quarter ended June 30, 2016.

HIGHLIGHTS

▪      Net income of $8.6 million, or $0.08 per diluted share

▪      17.4% increase in FFO(1) per diluted share to $0.27 (2Q’16 vs. 2Q’15)

▪      $181.8 million of grocery-anchored shopping centers acquired during 2Q’16

▪      $289.4 million of grocery-anchored acquisitions committed year-to-date

▪      97.2% portfolio leased rate at June 30, 2016

▪      4.9% increase in same-center cash net operating income (2Q’16 vs. 2Q’15)

▪      6.3% increase in same-center cash net operating income (1st 6 months)

▪      24.7% increase in same-space comparative cash rents on new leases

▪      15.9% increase in cash rents on renewed leases

▪      $224.2 million of common equity raised year-to-date

▪      $200 million of senior unsecured notes private placement committed (3.95%, 2026 maturity)

▪      32.8% debt-to-total market capitalization ratio at June 30, 2016

▪      4.1x interest coverage for 2Q’16

▪      Quarterly cash dividend of $0.18 per share declared

         __________________________

(1) A reconciliation of GAAP net income to Funds From Operations (FFO) is provided at the end of this press release.

Stuart A. Tanz, President and Chief Executive Officer of Retail Opportunity Investments Corp. stated, “2016 is shaping up thus far to be an outstanding year for the company.  We are fully on track to achieve and possibly exceed our key growth and operating objectives for the year.  We are already approaching $300 million in grocery-anchored shopping center acquisitions, enhancing our strong presence across our core metropolitan markets.  Additionally, we continue to maintain our portfolio above 97% leased, and we continue to achieve solid growth in our same-center and same-space comparative numbers.”  Tanz further stated, “While steadily growing our portfolio, we are at the same time enhancing our financial strength and flexibility.  Thus far we have secured over $400 million of equity and debt capital, which we have lined up through a variety of sources, efficiently and seamlessly funding our growth, while also enhancing our conservative financial metrics.”

FINANCIAL SUMMARY

For the three months ended June 30, 2016, GAAP net income applicable to common shareholders was $8.6 million, or $0.08 per diluted share, as compared to GAAP net income of $5.4 million, or $0.05 per diluted share for the three months ended June 30, 2015.  FFO for the second quarter of 2016 was $30.5 million, or $0.27 per diluted share, as compared to $22.3 million in FFO, or $0.23 per diluted share for the second quarter of 2015, representing a 17.4% increase on a per diluted share basis. ROIC reports FFO as a supplemental performance measure in accordance with the definition set forth by the National Association of Real Estate Investment Trusts. A reconciliation of GAAP net income to FFO is provided at the end of this press release.

At June 30, 2016, ROIC had a total market capitalization of approximately $3.7 billion with approximately $1.2 billion of principal debt outstanding, equating to a 32.8% debt-to-total market capitalization ratio.  ROIC’s debt outstanding was comprised of $72.0 million of mortgage debt and approximately $1.1 billion of unsecured debt, with $333.5 million outstanding on its unsecured revolving credit facility at June 30, 2016.  Subsequent to the second quarter, ROIC completed an underwritten public offering (see below), utilizing the net proceeds to reduce borrowings outstanding on its unsecured revolving credit facility.  Accordingly, ROIC currently has $190.5 million outstanding on its unsecured revolving credit facility.

For the second quarter of 2016, ROIC’s interest coverage was 4.1 times and 94.3% of its portfolio was unencumbered (based on gross leasable area) at June 30, 2016.

ACQUISITION SUMMARY

Year-to-date, ROIC has committed a total of $289.4 million in grocery-anchored shopping center acquisitions.  During the first quarter of 2016, ROIC acquired a two-property portfolio for $63.3 million.  During the second quarter, ROIC acquired the following two grocery-anchored shopping centers, in separate transactions, totaling $181.8 million.

Bouquet Center

In April 2016, ROIC acquired Bouquet Center for $59.0 million.  The shopping center is approximately 149,000 square feet and is anchored by Safeway (Vons) Supermarket, CVS Pharmacy and Ross Dress For Less.  The property is located in Santa Clarita, California, within the Los Angeles metropolitan area, and is currently 96.0% leased.

North Ranch Shopping Center

In June 2016, ROIC acquired North Ranch Shopping Center for $122.8 million.  The shopping center is approximately 147,000 square feet and is anchored by Kroger (Ralph’s) Supermarket, Trade Joe’s and Rite Aid Pharmacy.  The property is located in Westlake Village, California, within the Los Angeles metropolitan area, and is currently 98.7% leased.

Subsequent to the second quarter, ROIC acquired the following grocery-anchored shopping center.

Monterey Center

In July 2016, ROIC acquired Monterey Center for $12.1 million.  The shopping center is approximately 26,000 square feet and is anchored by Trader Joe’s and Pharmaca Pharmacy.  The property is located in downtown Monterey, California and is currently 100% leased.

In addition, ROIC currently has a binding contract to acquire the following grocery-anchored shopping center.

Bridle Trails Shopping Center

ROIC has a binding contract to acquire Bridle Trails Shopping Center for $32.2 million.  The shopping center is approximately 106,000 square feet and is anchored by Red Apple (Unified) Supermarket and Bartell Drugs, a Seattle-based regional pharmacy.  The property is located in Kirkland, Washington, within the Seattle metropolitan area, and is currently 100% leased.

PROPERTY OPERATIONS SUMMARY

At June 30, 2016, ROIC’s portfolio was 97.2% leased.  For the second quarter of 2016, same-center net operating income (NOI) was $32.2 million, as compared to $30.7 million in same-center NOI for the second quarter of 2015, representing a 4.9% increase.  The second quarter comparative same-center NOI includes all of the properties owned by ROIC as of April 1, 2015, totaling 64 shopping centers. For the first six months of 2016, same-center NOI was $62.3 million, as compared to $58.6 million in same-center NOI for the first six months of 2015, representing a 6.3% increase.  The first six months comparative same-center NOI includes all of the properties owned by ROIC as of January 1, 2015, totaling 61 shopping centers.  ROIC reports same-center NOI on a cash basis.  A reconciliation of GAAP operating income to same-center NOI is provided at the end of this press release.

During the second quarter of 2016, ROIC executed 83 leases, totaling 151,062 square feet, achieving an 18.9% increase in same-space comparative base rent, including 46 new leases, totaling 76,006 square feet, achieving a 24.7% increase in same-space comparative base rent, and 37 renewed leases, totaling 75,056 square feet, achieving a 15.9% increase in base rent.  ROIC reports same-space comparative base rent on a cash basis.

CAPITAL MARKETS SUMMARY

Year-to-date, ROIC has raised a total of approximately $224.2 million in common equity.  In March 2016, ROIC issued $46.1 million of ROIC common equity in the form of operating partnership units in connection with a shopping center acquisitions.  Additionally, thus far in 2016 ROIC has issued approximately 2.2 million shares of common stock through its ATM program, raising approximately $45.0 million in net proceeds.  Furthermore, in July 2016, ROIC issued approximately 6.6 million shares of common stock through an underwritten public offering, raising approximately $133.1 million in net proceeds. ROIC utilized the net proceeds to reduce borrowings outstanding on its unsecured revolving credit facility.

On July 26, 2016, ROIC entered into an agreement to sell $200 million principal amount of 3.95% senior unsecured notes due 2026 in a direct private placement.  ROIC expects to close the transaction in September 2016 and intends to utilize the proceeds to reduce borrowings outstanding on its unsecured revolving credit facility, fund shopping center acquisitions and for general corporate purposes.

CASH DIVIDEND

On June 29, 2016, ROIC distributed to stockholders an $0.18 per share cash dividend.  On July 27, 2016, ROIC’s board of directors declared a cash dividend of $0.18 per share, payable on September 29, 2016 to stockholders of record on September 15, 2016.

2016 FFO GUIDANCE

ROIC currently estimates that FFO for the full year 2016 will be within the range of $1.03 to $1.07 per diluted share, and net income to be within the range of $0.38 to $0.39 per diluted share.  The following table provides a reconciliation of GAAP net income to FFO.

     
    For the year ending

December 31, 2016
    Low End   High End
         
GAAP net income applicable to common stockholders   $  43,661     $  45,357  
Plus:                
Depreciation & Amortization   $  76,128     $  79,084  
Funds From Operations (FFO) applicable to common stockholders   $  119,789     $  124,441  
         
Diluted Shares      116,300        116,300  
         
         
Earnings per share (diluted)   $  0.38     $  0.39  
                 
FFO per share (diluted)   $  1.03     $  1.07  
                 

ROIC’s estimates are based on numerous underlying assumptions.  ROIC’s management will discuss the company’s guidance and underlying assumptions on its July 28, 2016 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 Thursday, July 28, 2016 at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific 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: 9535671. 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 2:00 p.m. Eastern Time on July 28, 2016 and will be available until 11:59 p.m. Eastern Time on August 4, 2016. To access the conference call recording, dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and use the Conference ID: 9535671. The conference call will also be archived on http://www.roireit.net/ for approximately 90 days.

ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.

Retail Opportunity Investments Corp. (NASDAQ: ROIC), is a fully-integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast.  As of June 30, 2016, ROIC owned 77 shopping centers encompassing approximately 9.1 million square feet.  ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast.  ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody’s Investor Services and Standard & Poor’s.  Additional information is available at: www.roireit.net.

When used herein, the words “believes,” “anticipates,” “projects,” “should,” “estimates,” “expects,” guidance” 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 of ROIC to differ materially from future results expressed or implied by such forward-looking statements.   Information regarding such risks and factors is described in ROIC’s filings with the SEC, including its most recent Annual Report on Form 10-K, which is available at: www.roireit.net.

RETAIL OPPORTUNITY INVESTMENTS CORP.

Consolidated Balance Sheets

(In thousands)

  June 30,  2016   December 31,  2015
ASSETS      
Real Estate Investments:      
Land  $   730,661     $   669,307  
Building and improvements    1,835,071       1,627,310  
    2,565,732       2,296,617  
Less:  accumulated depreciation    162,411       134,311  
Real Estate Investments, net    2,403,321       2,162,306  
Cash and cash equivalents    17,535       8,844  
Restricted cash    121       227  
Tenant and other receivables, net    30,480       28,652  
Deposits    2,000       500  
Acquired lease intangible assets, net of accumulated amortization    77,017       66,942  
Prepaid expenses    943       1,953  
Deferred charges, net of accumulated amortization    33,747       30,129  
Other    1,778       1,895  
Total assets  $  2,566,942     $   2,301,448  
       
LIABILITIES AND EQUITY      
Liabilities:      
Term loan  $   298,996     $   298,802  
Credit facility    330,591       132,028  
Senior Notes Due 2024   245,092       244,833  
Senior Notes Due 2023    244,736       244,426  
Mortgage notes payable    71,961       62,156  
Acquired lease intangible liabilities, net of accumulated amortization    142,815       124,861  
Accounts payable and accrued expenses    15,479       13,205  
Tenants’ security deposits    5,709       5,085  
Other liabilities    14,541       11,036  
Total liabilities    1,369,920       1,136,432  
           
Commitments and contingencies               
               
Redeemable OP Units             33,674  
       
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 101,979,470 and 99,531,034 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively   10       10  
Additional paid-in-capital    1,218,721       1,166,395  
Dividends in excess of earnings      (143,563 )       (122,991 )
Accumulated other comprehensive loss      (6,328 )       (6,743 )
Total Retail Opportunity Investments Corp. stockholders’ equity    1,068,840       1,036,671  
Non-controlling interests    128,182       94,671  
Total equity    1,197,022       1,131,342  
Total liabilities and equity  $  2,566,942     $   2,301,448  
       

 

RETAIL OPPORTUNITY INVESTMENTS CORP.

Consolidated Statements of Operations

 (In thousands, except per share data)

         
    Three Months Ended June 30,   Six Months Ended June 30,
      2016       2015       2016       2015  
Revenues                
Base rents    $   45,652     $   36,028     $   89,500     $   71,230  
Recoveries from tenants        12,511         9,841         24,371         19,530  
Other income        508         346         894         577  
Total revenues        58,671         46,215         114,765         91,337  
                 
Operating expenses                
Property operating        8,210         6,854         15,708         13,779  
Property taxes        6,053         4,686         11,708         9,418  
Depreciation and amortization        21,821         16,874         42,754         34,508  
General and administrative expenses        3,516         3,654         6,835         6,295  
Acquisition transaction costs        298         245         434         416  
Other expenses        217         104         371         253  
Total operating expenses        40,115         32,417         77,810         64,669  
                 
Operating income        18,556         13,798         36,955         26,668  
Non-operating expenses                
Interest expense and other finance expenses        (9,918 )       (8,387 )       (19,392 )       (16,881 )
Net income        8,638         5,411         17,563         9,787  
Net income attributable to non-controlling interest        (934 )       (210 )       (1,832 )       (386 )
Net Income Attributable to Retail Opportunity Investments Corp.    $   7,704     $   5,201     $   15,731     $   9,401  
                 
Net income per share – basic and diluted:   $   0.08     $   0.05     $   0.16     $   0.10  
                 
Dividends per common share    $   0.18     $   0.17     $   0.36     $   0.34  
                 

 

CALCULATION OF FUNDS FROM OPERATIONS

(Unaudited)

(In thousands)

       
  Three Months Ended June 30,   Six Months Ended June 30,
    2016       2015       2016       2015  
               
Net income attributable to ROIC  $   7,704     $   5,201     $   15,731     $   9,401  
Plus:  Depreciation and amortization   21,821       16,874       42,754       34,508  
Funds from operations – basic     29,525         22,075         58,485         43,909  
Net income attributable to non-controlling interests   934       210       1,832       386  
Funds from operations – diluted $   30,459     $   22,285     $   60,317     $   44,295  
               

 

SAME-CENTER CASH NET OPERATING INCOME ANALYSIS

(Unaudited)

(In thousands, except number of shopping centers and percentages)

           
       Three Months Ended     Six Months Ended 
      6/30/16   6/30/15   $ Change   % Change   6/30/16   6/30/15   $ Change   % Change
                                   
Number of shopping centers included in same-center analysis       64         64                 61         61          
Same-center occupancy     97.1 %     97.3 %         (0.2 %)     97.1 %     97.2 %         (0.1 %)
                                   
Revenues:                                  
 Base rents    $   33,534     $   32,127     $   1,407       4.4 %   $   64,146     $   61,078     $   3,068       5.0 %
 Percentage rent       154         69         85       123.2 %       320         169         151       89.3 %
 Recoveries from tenants        10,595         9,891         704       7.1 %       20,378         18,922         1,456       7.7 %
 Other property income       513         356         157       44.1 %       657         548         109       19.9 %
Total Revenues         44,796         42,443         2,353       5.5 %       85,501         80,717         4,784       5.9 %
                                                                   
Operating Expenses                                                                
 Property operating expenses   $   6,953     $   6,679     $   274       4.1 %   $   13,073     $   12,477     $   596       4.8 %
 Bad debt expense       753         333         420       126.1 %       799         644         155       24.1 %
 Property taxes        4,842         4,682         160       3.4 %       9,298         8,984         314       3.5 %
Total Operating Expenses       12,548         11,694         854       7.3 %       23,170         22,105         1,065       4.8 %
Same Center Cash Net Operating Income   $   32,248     $   30,749     $   1,499       4.9 %   $   62,331     $   58,612     $   3,719       6.3 %
                               

 

SAME-CENTER CASH NET OPERATING INCOME RECONCILIATION

(Unaudited)

(In thousands)

       
  Three Months Ended June 30,   Six Months Ended June 30,
    2016       2015       2016       2015  
               
Same-center cash NOI  $   32,248     $   30,749     $   62,331     $   58,612  
Adjustments                              
Depreciation and amortization      (21,821 )       (16,874 )       (42,754 )       (34,508 )
General and administrative expenses      (3,516 )       (3,654 )       (6,835 )       (6,295 )
Acquisition transaction costs      (298 )       (245 )       (434 )       (416 )
Other expense      (217 )       (104 )       (371 )       (253 )
Property revenues and expenses (1)      5,627         3,735         10,710         6,923  
Non same-center cash NOI     6,533         191         14,308         2,605  
GAAP operating income  $   18,556     $   13,798     $   36,955     $   26,668  
               

1. Includes straight-line rents, amortization of above and below-market lease intangibles, anchor lease termination fees, net of contractual amounts, and expense and recovery adjustments related to prior periods.

NON-GAAP DISCLOSURES

Funds from operations (“FFO”), is a widelyrecognized nonGAAP financial measure for REITs that the Company believes when considered with financial statements presented in accordance with GAAP, provides additional and useful means to assess its financial performance.  FFO is frequently used by securities analysts, investors and other interested parties to evaluate the performance of REITs, most of which present FFO along with net income as calculated in accordance with GAAP.  The Company computes FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income attributable to common stockholders (determined in accordance with GAAP) excluding gains or losses from debt restructuring, sales of depreciable property and impairments, plus real estate related depreciation and amortization, and after adjustments for partnerships and unconsolidated joint ventures.

The Company uses cash net operating income (“NOI”) internally to evaluate and compare the operating performance of the Company’s properties.  The Company believes cash NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level, and when compared across periods, can be used to determine trends in earnings of the Company’s properties as this measure is not affected by the non-cash revenue and expense recognition items, the cost of the Company’s funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate to the Company’s ownership of properties.  The Company believes the exclusion of these items from operating income is useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating the Company’s properties as well as trends in occupancy rates, rental rates and operating costs.  Cash NOI is a measure of the operating performance of the Company’s properties but does not measure the Company’s performance as a whole and is therefore not a substitute for net income or operating income as computed in accordance with GAAP.  The Company defines cash NOI as operating revenues (base rent and recoveries from tenants), less property and related expenses (property operating expenses and property taxes), adjusted for non-cash revenue and operating expense items such as straight-line rent and amortization of lease intangibles, debt-related expenses and other adjustments.  Cash NOI also excludes general and administrative expenses, depreciation and amortization, acquisition transaction costs, other expense, interest expense, gains and losses from property acquisitions and dispositions, extraordinary items, tenant improvements and leasing commissions.  Other REITs may use different methodologies for calculating cash NOI, and accordingly, the Company’s cash NOI may not be comparable to other REITs.

Contact:Ashley Rubino, Investor Relations858-255-4913arubino@roireit.net

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New 144-Unit Affordable Senior Housing Community Complete in Baton Rouge, La.

July 27, 2016 0

BATON ROUGE, La., July 27, 2016 (GLOBE NEWSWIRE) — WNC, a national investor in real estate and community development initiatives, announced today the completion of Cypress Springs, a new 144-unit affordable senior housing community in Baton Rouge, La. WNC provided approximately $6.1 million in low-income housing tax credit (LIHTC) equity to fund the development.

Located at 8200 Cypress Road, Cypress Springs includes three buildings comprised of 76 one-bedroom units and 68 two-bedroom units. The property’s amenities include a fitness center, central laundry facility, activity room/clubhouse, computer center, tenant storage area, sauna and picnic area. The community also offers onsite management and support services. Each unit is equipped with intercom entry, central air conditioning, kitchen appliances and a ceiling fan. The property has 159 parking spaces.

Cypress Springs was developed by Community Development Inc. The project developer was C. Fred Cornforth.

“Cypress Springs is an excellent property offering new, well-constructed housing to the Baton Rouge senior community,” said WNC Executive Vice President and Chief Operating Officer Michael Gaber. “WNC is proud to be a partner in Cypress Springs and to help deliver additional affordable senior housing to the people of Baton Rouge and to a nation in dire need of quality affordable housing.”

About WNC

WNC, founded in 1971 and headquartered in Irvine, Calif., is a national investor in real estate and community development initiatives, as well as a leading investor in low-income housing tax credits (LIHTC). WNC has acquired more than $7.6 billion of assets totaling in excess of 1,290 properties in 45 states, Washington D.C., and the U.S. Virgin Islands. Since 2000, WNC has been awarded four New Markets Tax Credit (NMTC) allocations, totaling $178 million, and has facilitated development of 17 low-income community projects. WNC’s investor base exceeds 19,500 institutional and retail clients, including Fortune 500 companies, multinational banks, and insurance companies. Additional information is available at www.wncinc.com.

ContactJulie Leber Spotlight Marketing Communications949.427.5172 ext. 703 julie@spotlightmarcom.com 

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Elevate Mortgage Group Gains FHA Eagle Approval

July 27, 2016 0

MIDVALE, Utah, July 27, 2016 (GLOBE NEWSWIRE) — Elevate Mortgage Group is pleased to announce that it has this month received FHA Full Eagle approval. This anticipated and welcome news for the company means that it will be able to perform all lending functions in-house without the need for a sponsor company. Elevate can now originate, underwrite, fund, service, and/or own FHA insured loans. Elevate previously operated as a correspondent and only originated loans that were underwritten by its sponsoring mortgagee. With the approval, granted on June 22, Elevate is now officially titled “mortgagee” or “sponsor.”

To put this development into perspective, FHA Full Eagle approval takes into account several eligibility requirements, which include required business licenses and a company classification as a partnership, corporation, or other chartered institution. Other approval requirements include state approval for the company’s legal name, a commercial space, a company net worth of over $250 million, and liquidity assets equal to 20 percent of that net worth or $100 million, if that is lower than the 20 percent mark. Elevate has met each requirement and will continue to operate in a manner that FHA borrowers can trust.

Division President Felipe Pacheco said he was excited to announce that Elevate Mortgage Group, a division of Low VA Rates, had completed the required steps to receive Full Eagle delegated approval from the Department of Housing and Urban Development. “While we have always had the ability to originate FHA loans, this approval allows us to underwrite these files in-house without supervision from HUD, giving us the ability to better control our pipeline and achieve quicker turn times,” he said. “This approval helps catapult EMG and LVR to the same arena as some of the largest lenders in the nation.”

Mr Pacheco said this type of approval was not easy to attain. “Eagle Approval is not just handed out to any lender,” he said. “In order for us to qualify for this approval, we had to demonstrate financial strength and stability as a company as well as go through a rigorous review process on all FHA files over the past year. It is truly an honor to have this approval, and we will cherish this as we continue to offer our clients all options offered in the mortgage industry. We would like thank the underwriting team, loan officers, and processors who help us with their expertise to achieve this honor.”

As a Full Eagle, Elevate’s credentials will not only match the outstanding service it has given its customers since its inception in 2014 – the company pledges to expand even further on its foundation of quality. With FHA approval, Elevate employees will take on more responsibilities, and this will mean even more big changes for Elevate. The company has already begun to expand, starting with the establishment of their second branch in Tooele, Utah, in April 2016.

About Elevate:

Elevate Mortgage Group is a mortgage loan company that started business in December 2014 and is located in Midvale, Utah. In addition to its headquarters branch, a second Elevate branch is in Tooele, Utah, but the company provides its loan services to the entire nation. Elevate offers FHA loans, conventional loans, and VA loans. It is a division of United Military Mortgage, operating as Low VA Rates.

Amy Blauser801-830-0950

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Retail Opportunity Investments Corp. Agrees to Sell $200 Million of Senior Unsecured Notes Due 2026

July 27, 2016 0

SAN DIEGO, July 27, 2016 (GLOBE NEWSWIRE) — Retail Opportunity Investments Corp. (NASDAQ:ROIC) (The “Company”), announced today that it has agreed to sell $200 million principal amount of 3.95% Senior Unsecured Notes in a private placement. The Company expects to issue the notes in September 2016. The notes will mature on the ten year anniversary of their issuance.

Proceeds from the financing will be used to repay amounts outstanding under the Company’s $500 million revolving credit facility and for general corporate purposes.

The Senior Unsecured Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Act”) or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act and applicable state securities laws. This press release is for information only, does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT RETAIL OPPORTUNITY INVESTMENTS CORP.

Retail Opportunity Investments Corp. (NASDAQ:ROIC), is a fully-integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast.  As of March 31, 2016, ROIC owned 75 shopping centers encompassing approximately 8.8 million square feet.  ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast.  ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody’s Investor Services and Standard & Poor’s.  Additional information is available at: www.roireit.net.

When used herein, the words “believes,” “anticipates,” “projects,” “should,” “estimates,” “expects,” “guidance” 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 of ROIC to differ materially from future results expressed or implied by such forward-looking statements.   Information regarding such risks and factors is described in ROIC’s filings with the SEC, including its most recent Annual Report on Form 10-K, which is available at: www.roireit.net.

 

Contact:Ashley Rubino, Investor Relations858-255-4913arubino@roireit.net

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SRS Real Estate Partners Expands National Net Lease Group into Chicago Office

July 26, 2016 0

NEWPORT BEACH, Calif., July 26, 2016 (GLOBE NEWSWIRE) — SRS Real Estate Partners (SRS), North America’s largest commercial real estate firm exclusively dedicated to retail services, has announced that it has established a new arm of the National Net Lease Group (NNLG) in SRS’ Chicago office with the addition of four new team members. Joining the NNLG in Chicago are Dan Elliot, Sean Lutz, Chris Migely and Tara Tolomeo, who together provide full advisory services for net lease investors in the Chicago market and throughout the Midwest. The NNLG, which offers advisory services nationwide, was established by Matthew Mousavi and Patrick Luther in March of this year and is headquartered in the Newport Beach office.

Formerly of SVN Commercial Real Estate Advisors, the new Chicago team is well-respected and has consistently been recognized as one of the top sales teams in the country with annual production exceeding $100M. Leading the team are senior vice presidents, Dan Elliot and Sean Lutz, who together have more than 30 years of experience in single-tenant sales, anchored and unanchored shopping center sales, power center and portfolio dispositions and pre-development sales. Rounding out the team are Chris Migely, associate, who will provide additional advisory support, and Tara Tolomeo, marketing coordinator, who will provide marketing support for their inventory of more than 25 assets.

The NNLG is a singular, cohesive team with one base of operations out of Southern California where all resources and marketing efforts are centrally coordinated and executed. Now with more than 100 properties on market in 28 states, with total consideration in excess of $600M, the new team makes SRS better positioned than ever to serve net lease clients. The expansion of the NNLG into the Chicago office marks another substantial stride in SRS’ strategic plan to become a major player in retail investment sales across the U.S. The team will benefit from SRS’ nationwide platform of retail-only brokers and the retailer insight that comes along with their relationships. Their clients will gain advantages through remarkably faster speed-to-market and broad exposure through SRS’ unified marketing and technology platforms. SRS’ retail investment sales platform is now more competitively positioned than ever, and continues to be the only exclusively retail, national real estate advisory firm.

“The addition of this team expands the reach and depth of the National Net Lease Group and allows us to collectively better serve the Midwest markets,” said Patrick Luther, managing principal for the National Net Lease Group. “Dan and Sean are highly qualified, seasoned brokers who share our vision and team culture. With an inventory of more than 25 individual assets with total consideration in excess of $100M, we look forward to assisting and building their momentum and market share.”

“Dan and Sean have an extensive track record, and are respected investment advisors,” said Matthew Mousavi, managing principal for the National Net Lease Group. “This team is an excellent addition to the National Net Lease Group and we are excited to assist them in growing their business.”



About SRS Real Estate Partners

SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 20 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, investment services and development services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit www.srsre.com.

A photo accompanying this release is available at: http://www.globenewswire.com/newsroom/prs/?pkgid=40924

Christina Wezwick214.560.3215

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New York Mortgage Trust 2016 Second Quarter Conference Call Scheduled For Wednesday August 3, 2016

July 20, 2016 0

NEW YORK, July 20, 2016 (GLOBE NEWSWIRE) — New York Mortgage Trust, Inc. (Nasdaq: NYMT) (the “Company”) is scheduled to report financial results for the three and six months ended June 30, 2016 after the close of market on August 2, 2016. New York Mortgage Trust’s executive management will host a conference call and audio webcast at 9:00 a.m., Eastern Time, on Wednesday, August 3, 2016. The conference call dial-in number is 877-312-8806.

A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis, at the Investor Relations section of the Company’s website at www.nymtrust.com. Please allow extra time, prior to the call, to visit the site and download the necessary software to listen to the Internet broadcast.

A replay of the conference call will be available by calling 855-859-2056. The conference ID number is 53717862. The replay will be available until Wednesday, August 10, 2016.

About New York Mortgage Trust

New York Mortgage Trust, Inc. is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes. NYMT is an internally managed REIT which invests in mortgage-related and financial assets and targets residential mortgage loans, including second mortgages and loans sourced from distressed markets, multi-family CMBS, direct financing to owners of multi-family properties through mezzanine loans and preferred equity investments and other commercial real estate-related investments, Agency RMBS consisting of fixed-rate, adjustable-rate and hybrid adjustable-rate RMBS and Agency IOs consisting of interest only and inverse interest-only RMBS that represent the right to the interest component of the cash flow from a pool of mortgage loans. The Midway Group, L.P. and Headlands Asset Management, LLC provide investment management services to the Company with respect to certain of its targeted asset classes.

CONTACT: AT THE COMPANY Kristine R. Nario Chief Financial Officer Phone: (646) 216-2363 Email: knario@nymtrust.com

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