Why ROIC Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, shopping center REIT Retail Opportunity Investments Corp. (NASDAQ: ROIC  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at ROIC and see what CAPS investors are saying about the stock right now.

ROIC facts

Headquarters (founded)

Purchase, N.Y. (2007)

Market Cap

$919.0 million

Industry

Diversified REITs

Trailing-12-Month Revenue

$91.8 million

Management

President / CEO Stuart Tanz
CFO Michael Haines

Return on Equity (average, past 3 years)

1.9%

Cash / Debt

$6.4 million / $397.4 million

Dividend Yield

4.6%

Competitors

Kimco Realty 
Macerich
Vornado Realty Trust

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 497 members who have rated ROIC believe the stock will outperform the S&P 500 going forward.   

Just yesterday, one of those bulls, fellow Fool Matthew Argersinger (TMFMattyA), succinctly summed up the outperform case for our community:

Going back for seconds on ROIC.

REITs in general have sharply underperformed recently thanks to the Fed taper talk which has caused a spike in Treasury yield and, consequently, hurt everything else on the planet that pays any kind of meaningful yield.

ROIC is an exceptionally managed REIT that has put its capital to work buying grocery-anchored shopping malls, mostly on the West Coast. The past few years have been great for bargains in that area, and CEO Stuart Tanz and team have taken advantage. ROIC is cheap relative to NAV and comparable REIT yields, and also comes with very low leverage. Now that most of ROIC's outstanding warrants have been retired, there should be much less of a damper on the stock. Expect this one to outperform.

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