Retail Opportunity Investments Corp (ROIC) WACC Analysis

As of May 23, 2025, Retail Opportunity Investments Corp (ROIC) carries a Weighted Average Cost of Capital (WACC) of 6.8%. WACC reflects the blended rate Retail Opportunity Investments Corp must pay to both equity and debt holders.

Within that, the cost of equity is 7.1%, the cost of debt is 4.2%, and the effective tax rate is 26.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.7 – 0.74
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.62

What It Means for Investors

With a selected WACC of 6.8%, Retail Opportunity Investments Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.