Financial Performance - For the nine months ended September 30, 2025, net income attributable to Curbline was $30.3 million, compared to a loss of $1.2 million in the prior year, while Funds From Operations (FFO) increased to $80.5 million from $28.5 million[116]. - Total revenues for the three months ended September 30, 2025, increased to $48,647, up $18,885 from $29,762 in 2024, representing a 63.5% growth[119]. - Rental income for the nine months ended September 30, 2025, was $128,008, an increase of $42,622 or 49.9% compared to $85,386 in 2024[119]. - The increase in net income attributable to Curbline was driven by property acquisitions, increased interest income, and decreased transaction costs related to the Spin-Off[124]. - FFO attributable to Curbline for the nine months ended September 30, 2025, was $80.461 million, up from $28.520 million in the same period of 2024[136]. - Operating FFO attributable to Curbline increased to $81.581 million for the nine months ended September 30, 2025, compared to $59.675 million in the prior year[136]. - Total Curbline NOI for the nine months ended September 30, 2025, was $95.244 million, representing a 41.9% increase from $67.119 million in 2024[141]. - Same-Property NOI for the nine months ended September 30, 2025, was $60.749 million, reflecting a 3.7% increase from $58.558 million in the prior year[141]. Property and Portfolio Management - As of September 30, 2025, Curbline Properties Corp. owned 162 convenience shopping centers with a total gross leasable area of 4.5 million square feet, achieving an aggregate leased rate of 96.7% and an occupancy rate of 93.9%[104]. - The average annualized base rent (ABR) per occupied square foot was $34.38 as of September 30, 2025, down from $35.65 a year earlier, primarily due to property acquisitions[117]. - Curbline signed new leases and renewals for approximately 370,000 square feet of GLA, achieving cash new leasing spreads of 20.6% and cash renewal leasing spreads of 9.0%[117]. - The company owned 162 wholly owned properties as of September 30, 2025, with an occupancy rate of 93.9%, compared to 79 properties and 93.8% occupancy in 2024[119]. - The increase in recoveries from tenants for the nine months ended September 30, 2025, was primarily due to acquisitions, with recoveries at approximately 95.4% of operating expenses[119]. - The convenience property portfolio had leased and occupancy rates of 96.7% and 93.9%, respectively, as of September 30, 2025[185]. Acquisitions and Growth Strategy - The company acquired 69 properties for a total purchase price of $644.1 million from January 1, 2025, to October 29, 2025[114]. - The company has a forward-looking strategy to capitalize on the fragmented convenience shopping center market, with over 68,000 centers available in the U.S.[110]. - The Company plans to acquire additional assets funded by cash on hand, retained cash flow, and debt and equity financing, depending on market conditions[187]. Financial Position and Capital Management - Curbline's current cash position is $430.1 million, with significant access to debt capital for future acquisitions[110]. - The Company had unrestricted cash balances of $430.1 million and a $400.0 million undrawn line of credit as of September 30, 2025[143]. - The Company drew $100.0 million on the 2024 Term Loan in March 2025, which will mature on October 1, 2027[146]. - The 2024 Credit Agreement allows for an increase in available credit up to $750.0 million, subject to certain conditions[144]. - The Company entered into a private placement of $150.0 million of senior unsecured notes with a weighted-average coupon of 5.65%[149]. - The Company executed a treasury lock hedge transaction securing a treasury yield of 4.19% for $50.0 million of 2025 Notes due September 3, 2032[153]. - The Company entered into a 2025 Term Loan Agreement for an unsecured term loan of $150.0 million, with the potential to increase to $250.0 million[154]. - The 2025 Term Loan bears interest at a fixed all-in rate of 4.61%, with a forward interest rate swap fixing the variable-rate SOFR component at 3.66%[155]. - The Company priced a private placement offering of $200.0 million of senior unsecured notes, with interest rates fixed at 5.06% and 5.31% for the 5-Year and 7-Year Notes, respectively[156]. - The Company’s consolidated indebtedness as of September 30, 2025, was $400.0 million with a weighted-average interest rate of 5.0%[128]. - The Company’s fixed-rate debt amounted to $396.4 million, with a weighted average maturity of 3.8 years and an interest rate of 5.0%[190]. - The Company has mitigated interest rate risk on $100.0 million of its 2024 Term Loan and $150.0 million of its 2025 Term Loan by swapping to fixed rates through 2029 and 2031, respectively[191]. - A 100 basis-point increase in market interest rates would adjust the carrying value of the Company's fixed-rate debt to $407.0 million, reflecting the fair value of the swap[192]. - The Company believes that increases in interest expense due to inflation or other economic factors will not significantly impact its distributable cash flow[190]. Shareholder Returns - The company declared three quarterly cash dividends of $0.16 per share in 2025, reflecting a commitment to returning value to shareholders[117]. - The Company declared a quarterly cash dividend of $0.16 per share for the first three quarters of 2025, totaling $51.3 million declared year-to-date[160]. Market and Economic Conditions - The retail sector is facing challenges from changing consumer behaviors and increased competition, but some retailers are expanding their store fleets[186]. - The Company routinely monitors tenant credit profiles and the impact of potential tenant credit issues on financial statements and cash flow[186]. - The Company has not entered into any derivative financial instruments for trading or speculative purposes as of September 30, 2025[194]. - The Company is exposed to credit risk from counterparties to interest rate swaps but mitigates this risk by dealing with major financial institutions[191].

Financial Data and Key Metrics Changes - The company reported a 17% sequential increase in NOI, driven by organic growth and acquisitions [12] - Same property NOI increased by 3.7% year-to-date and 2.6% for the third quarter, despite a 40 basis point headwind from uncollectible revenue [13][16] - The company raised OFFO guidance to a range between $1.04 and $1.05 per share, reflecting better-than-projected operations and acquisition pacing [14] Business Line Data and Key Metrics Changes - Leasing volume in the third quarter reached record levels, with a lease rate increase of 60 basis points to 96.7%, one of the highest in the retail REIT sector [12][13] - New lease spreads averaged over 20%, while renewal spreads were just under 10% [5] Market Data and Key Metrics Changes - The company has acquired $850 million in assets since its spin-off, with expectations to reach around $750 million in investment activity for 2025 [5][11] - The total U.S. market for convenience shopping centers is estimated at 950 million sq ft, significantly larger than the company's current footprint of 4.5 million sq ft [9] Company Strategy and Development Direction - The company focuses on acquiring top-tier convenience retail assets, emphasizing capital efficiency and alignment with consumer behavior [5][6] - The strategy includes investing in simple, flexible buildings that support a variety of uses, driving strong tenant demand and minimal capital outlay [8] - The company aims for double-digit free cash flow growth for several years, supported by a strong balance sheet and disciplined acquisition strategy [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the fragmented convenience marketplace, highlighting a strong demand for high-quality convenience shopping centers [11][12] - The company anticipates continued growth in market rents, contributing to future earnings growth [24] Other Important Information - The company closed a $150 million term loan and a $150 million private placement bond offering, raising total debt capital to $400 million at a weighted average rate of 5% [17] - The company expects to end the year with over $250 million in cash and a net debt to EBITDA ratio of less than 1x, providing liquidity for future acquisitions [18] Q&A Session Summary Question: How is the company thinking about equity given the strong balance sheet? - The company has instituted an ATM program and a share buyback, considering equity only if it is accretive for funding [21][22] Question: What is the stabilized yield on recent lease-up acquisitions? - The going-in cap rate for recent acquisitions was slightly higher than the previous quarter, blending to the low 6%s [24] Question: What is the acquisition pipeline looking like for 2026? - The company is seeing an increase in inventory underwritten and remains confident in achieving $750 million in acquisitions for 2025, with potential for upside [28][32] Question: How sensitive is competition to changes in interest rates? - Competition is significantly impacted by rates, with the company being one of the few cash buyers in the market [75] Question: What is the structural cap on lease rates? - The company believes that low 97% occupancy is likely the peak, with potential for some occupancy upside [44]

Financial Data and Key Metrics Changes - The company reported a 17% sequential increase in NOI, driven by organic growth and acquisitions [12] - Same property NOI increased by 3.7% year-to-date and 2.6% for the third quarter, despite a 40 basis point headwind from uncollectible revenue [13][16] - The company raised OFFO guidance to a range between $1.04 and $1.05 per share, reflecting better-than-projected operations and acquisition visibility [14] Business Line Data and Key Metrics Changes - Leasing volume in the third quarter reached record levels, with a lease rate increase of 60 basis points to 96.7%, one of the highest in the retail REIT sector [12][13] - New lease spreads averaged over 20%, while renewal spreads were just under 10% [5] Market Data and Key Metrics Changes - The company has acquired $850 million in assets since its spin-off, with expectations to reach around $750 million in investment activity for 2025 [5][11] - The total U.S. market for convenience shopping centers is estimated at 950 million square feet, indicating significant growth potential for the company [9] Company Strategy and Development Direction - The company focuses on acquiring top-tier convenience retail assets, emphasizing capital efficiency and alignment with consumer behavior [5][6] - The strategy includes investing in simple, flexible buildings that support a variety of uses, driving strong tenant demand and minimal capital outlay [8] - The company aims to generate double-digit free cash flow growth for several years, supported by a strong balance sheet and disciplined acquisition strategy [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the fragmented convenience marketplace, highlighting a strong demand for high-quality convenience shopping centers [11][12] - The company anticipates continued growth in market rents, contributing to future earnings growth [24] Other Important Information - The company closed a $150 million term loan and a $150 million private placement bond offering, raising total debt capital to $400 million at a weighted average rate of 5% [17] - The company expects to end the year with over $250 million in cash and a net debt to EBITDA ratio of less than one time, providing substantial liquidity for future acquisitions [18] Q&A Session Summary Question: How is the company thinking about equity given the strong balance sheet? - Management indicated that they have instituted an ATM program and a share buyback, considering equity only if it is accretive for funding [21][22] Question: What is the stabilized yield on recent lease-up acquisitions? - The company noted that the going-in cap rate for recent acquisitions was slightly higher than the previous quarter, blending to the low 6% range [24] Question: What is the acquisition pipeline looking like heading into 2026? - Management stated that the inventory being underwritten is increasing, with confidence in achieving $750 million in acquisitions for 2025, with potential for upside [28][32] Question: How sensitive is the competition to changes in interest rates? - Management noted that competition is significantly impacted by rates, with many competitors being levered buyers, while the company remains a cash buyer [75] Question: What is the structural cap on lease rates? - Management indicated that the current lease rate is at 96.7%, with potential for low 97% occupancy as a peak, but with room for growth through renewals [45]

Financial Data and Key Metrics Changes - The company reported a 17% sequential increase in Net Operating Income (NOI), driven by organic growth and acquisitions [11] - Same property NOI increased by 3.7% year-to-date and 2.6% for the third quarter, despite a 40 basis point headwind from uncollectible revenue [12][14] - The company raised its Operating Funds from Operations (OFFO) guidance to a range between $1.04 and $1.05 per share, reflecting better-than-expected operations and acquisition pacing [13] Business Line Data and Key Metrics Changes - The company signed nearly 400,000 square feet of new leases and renewals, with new lease spreads averaging over 20% and renewal spreads just under 10% [5] - Leasing volume in the third quarter hit record levels, contributing to a lease rate increase of 60 basis points to 96.7% [12] Market Data and Key Metrics Changes - The company owns a portfolio totaling 4.5 million square feet, with the total U.S. market for convenience shopping centers being 950 million square feet [8] - The company expects to invest around $750 million in acquisitions for 2025, significantly exceeding the original guidance of $500 million [10] Company Strategy and Development Direction - The company focuses on acquiring top-tier convenience retail assets, emphasizing capital efficiency and alignment with consumer behavior [5][6] - The strategy includes investing in simple, flexible buildings that support a variety of uses, driving strong tenant demand and rising rents [7] - The company aims to generate double-digit free cash flow growth for several years, supported by a strong balance sheet and disciplined acquisition strategy [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the fragmented convenience marketplace, highlighting the depth and liquidity of the asset class [10] - The company anticipates continued strong demand for high-quality convenience shopping centers, with a focus on maintaining a diversified tenant base [8][9] Other Important Information - The company closed a $150 million term loan and a $150 million private placement bond offering, bringing total debt capital raised to $400 million at a weighted average rate of 5% [17] - The company expects to end the year with over $250 million in cash and a net debt to EBITDA ratio of less than one time, providing substantial liquidity for future acquisitions [18] Q&A Session Summary Question: How is the company thinking about equity given the strong balance sheet? - Management indicated that they have instituted an ATM program and a share buyback, considering equity only if it is accretive for capital use [21] Question: What is the stabilized yield on recent lease-up acquisitions? - The company noted that the going-in cap rate was slightly higher than the previous quarter, blending to the low 6% range, with expectations for market rents to continue growing [22] Question: What is the acquisition pipeline looking like heading into 2026? - Management stated that the amount of inventory being underwritten is increasing, with a confident outlook for $750 million in acquisitions for 2025 and potential upside [25][28] Question: How sensitive is the competition to changes in interest rates? - Management noted that competition is impacted by rates, with many competitors being levered buyers, while the company remains a cash buyer, making it a desirable counterparty [64]

Financial Performance - Earnings per share were $0.09[7] - Operating Funds From Operations (OFFO) per share were $0.28[10] - Year-to-date (YTD) Same-Property Net Operating Income (SPNOI) growth was +3.7%[11] - The company revised its 2025 net income attributable to Curbline guidance to $0.35-$0.38 per share and OFFO guidance to $1.04-$1.05 per share[33] Leasing Activity - Straight-line new leasing spreads were +40% in 3Q25[6, 16] - Straight-line renewal spreads were +21% in 3Q25[6, 16] - Blended straight-line lease spread for 3Q25 was +27.4%[12] - Leased rate increased to 96.7%, up 60 basis points sequentially[6, 16] Acquisitions and Investments - Acquired 37 properties in 3Q25 for $336 million[6, 12] - Year-to-date acquisitions totaled 69 properties for $644 million, including 2 properties for $29 million in 4Q25 to date[6] Liquidity and Capital - The company had over $800 million of liquidity as of September 30, 2025, including $430 million in cash and $400 million of credit facility availability[6, 27] - $300 million of debt capital was funded in 3Q25, including a $150 million term loan and a $150 million private placement[6] - Priced a $200 million private placement transaction in October 2025, expected to be funded around year-end 2025[6, 28]

Financial Performance - Third quarter net income attributable to Curbline was $9.3 million, or $0.09 per diluted share, compared to a net loss of $15.4 million, or $0.15 per diluted share, in the year-ago period[14] - Operating funds from operations attributable to Curbline ("Operating FFO") was $29.5 million, or $0.28 per diluted share, compared to $19.5 million, or $0.19 per diluted share, in the year-ago period[14] - Rental income for Q3 2025 was $48,466,000, a 63.8% increase from $29,576,000 in Q3 2024[31] - Net operating income for Q3 2025 reached $36,007,000, up 57.2% compared to $22,910,000 in Q3 2024[38] - Funds from operations (FFO) attributable to Curbline for Q3 2025 was $29,096,000, compared to a loss of $4,302,000 in Q3 2024[34] - The company reported a net income attributable to Curbline of $9,346,000 in Q3 2025, recovering from a loss of $15,410,000 in Q3 2024[34] - The total Curbline NOI for Q3 2025 was $36,007 thousand, a significant increase of 57.2% compared to Q3 2024[53] - The quarterly Same-Property Net Operating Income (NOI) for Q3 2025 was $20,129 thousand, reflecting a 2.6% increase compared to Q3 2024[53] - The total annual Same-Property NOI for the first nine months of 2025 was $60,749 thousand, a 3.7% increase from $58,558 thousand in the same period of 2024[53] Acquisitions and Investments - Acquired 37 convenience shopping centers for an aggregate price of $336.1 million during the third quarter[14] - Acquired two convenience shopping centers during the fourth quarter to date for an aggregate price of $29.0 million, bringing year-to-date acquisitions to 69 convenience shopping centers for an aggregate price of $644.1 million[15] - The company has identified potential acquisition targets to further enhance its market position and diversify its portfolio[1] - Curbline Properties Corp. is actively pursuing new acquisitions to enhance its portfolio, targeting properties with an ABR above $40.00 per square foot[73] Leasing and Occupancy - Reported a leased rate of 96.7% at September 30, 2025, compared to 96.1% at June 30, 2025, and 95.4% at September 30, 2024[21] - Generated cash new leasing spreads of 20.2% and cash renewal leasing spreads of 9.1% for the trailing twelve-month period ended September 30, 2025[21] - The Same Property leased rate improved to 97.1% in Q3 2025, up from 96.2% in Q3 2024[53] - In Q3 2025, new leases totaled 16 with a Gross Leasable Area (GLA) of 49,186 square feet at an Average Base Rent (ABR) of $38.60, representing a 26.9% increase[57] - Renewal leases in Q3 2025 amounted to 33, covering 86,417 square feet with an ABR of $34.88, reflecting a 10.3% increase[62] - The total number of new and renewal leases in Q3 2025 was 49, with a combined GLA of 153,101 square feet and an ABR of $36.23, indicating a 16.2% increase[62] Financial Guidance and Projections - Updated guidance for net income attributable to Curbline for 2025 to be from $0.35 to $0.38 per diluted share and Operating FFO to be from $1.04 to $1.05 per diluted share[17] - Future guidance suggests a projected revenue growth of 15% for the next quarter, driven by new product launches and market expansion strategies[1] - Future guidance for Q3 2025 anticipates revenue growth of 20% to 25% based on current market trends[8] - Future guidance indicates an expected increase in FFO (Funds from Operations) by 10% year-over-year, driven by strategic leasing and property management initiatives[76] Operational Efficiency and Sustainability - The company is investing in technology to enhance customer experience, with a focus on digital platforms and mobile applications[1] - Operational efficiency improvements are anticipated to reduce costs by approximately 10% over the next fiscal year[1] - The company is committed to sustainability initiatives, aiming for a 20% reduction in carbon footprint by 2026[1] - The company is committed to sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2026[1] - Curbline Properties Corp. is committed to sustainability, with plans to implement green building practices in new developments, targeting a 20% reduction in energy consumption[73] Market Presence and Growth - The company plans to expand its market presence with new properties in various states, including Arizona and Texas[1] - The company is focusing on expanding its presence in high-demand markets, particularly in Texas and California, where several properties have shown significant rental growth[72] - The company has identified potential markets for expansion, including the Southeast and Mid-Atlantic regions, where demand for retail space is projected to grow by 5% annually[72] Financial Metrics and Ratios - Total assets increased to $2,445,290,000 in Q3 2025 from $2,033,098,000 in Q4 2024, reflecting a growth of 20.3%[36] - Total liabilities rose to $521,771,000 in Q3 2025 from $90,541,000 in Q4 2024, indicating increased leverage[36] - The total equity market capitalization decreased from $2,439,122 thousand as of December 31, 2024, to $2,346,408 thousand as of September 30, 2025[44] - Curbline Properties Corp. reported a total debt of $400,000 thousand, with a net debt of $(30,112) thousand as of September 30, 2025[44] - The company has a significant number of leases expiring in 2026, representing 10.0% of total SF and 9.6% of ABR[62] - The company’s fixed charge ratio was 18.6X for the period, significantly above the covenant requirement of 1.5X[45] - Curbline Properties Corp. has a consolidated outstanding indebtedness ratio of 15% as of September 30, 2025, well below the covenant limit of 60%[45] Definitions and Clarifications - FFO is defined as net income attributable to Curbline, adjusted to exclude gains and losses from real estate dispositions, impairment charges, and certain non-cash items[78] - Operating FFO is calculated by excluding non-comparable charges and gains/losses, providing a clearer view of the core operating performance of the real estate portfolio[79] - The Company uses FFO and Operating FFO to improve understanding of operating results, measure asset performance, and influence acquisition and capital investment strategies[80] - NOI is calculated as property revenues minus property-related expenses, excluding depreciation and amortization, providing insight into financial condition and operational results[84] - SPNOI is defined as property revenues minus property-related expenses for assets owned during both comparable periods, excluding non-cash and non-comparable items[85] - Management recognizes the limitations of FFO and Operating FFO compared to GAAP net income, as they do not represent cash generated from operating activities[83] - The Company does not include projections of gains and losses from real estate dispositions in estimating future FFO and Operating FFO[82] - FFO and Operating FFO are used as additional indicators of operating performance alongside GAAP net income and cash flows[81] - The Company believes that comparing FFO and Operating FFO with reported net income provides a better understanding of its performance[83]

Core Insights - Curbline Properties Corp. reported strong third-quarter results for 2025, exceeding expectations with over $330 million in acquisitions and a leased rate approaching 97% [2][5][6] - The company is uniquely positioned in the public real estate sector, focusing exclusively on convenience properties, which supports its growth strategy [2] Financial Performance - Third-quarter net income attributable to Curbline was $9.3 million, or $0.09 per diluted share, a significant improvement from a net loss of $15.4 million, or $0.15 per diluted share, in the same period last year [5][22] - Operating funds from operations (OFFO) for the third quarter were $29.5 million, or $0.28 per diluted share, compared to $19.5 million, or $0.19 per diluted share, in the prior year [5][25] - The company reported a 3.7% increase in same-property net operating income (SPNOI) for the nine-month period ended September 30, 2025, compared to the same period in 2024 [11][27] Acquisition and Financing Activities - During the third quarter, Curbline acquired 37 convenience shopping centers for a total of $336.1 million, bringing year-to-date acquisitions to 69 centers for $644.1 million [5][6] - The company closed a $150 million term loan in July 2025, with a fixed all-in interest rate of 4.61% [5][6] - In October 2025, Curbline priced a private placement offering of $200 million in senior unsecured notes, with fixed interest rates of 5.06% and 5.31% for 5-year and 7-year notes, respectively [6][30] Guidance and Future Outlook - Curbline updated its guidance for 2025, projecting net income attributable to be between $0.35 and $0.38 per diluted share, and Operating FFO to be between $1.04 and $1.05 per diluted share [8][30] - The company continues to experience strong leasing activity, with cash new leasing spreads of 20.2% and cash renewal leasing spreads of 9.1% for the trailing twelve-month period ended September 30, 2025 [11][27]

Group 1 - As of October 22, 2025, two stocks in the real estate sector are showing signs of being overbought, which may concern momentum-focused investors [1][2] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating that a stock may be overbought [2] Group 2 - Curbline Properties Corp. (NYSE:CURB) has an RSI value of 73.9, with a recent stock price of $24.23, reflecting a 3.2% increase [6] - Essential Properties Realty Trust Inc (NYSE:EPRT) has an RSI value of 72.4, with a recent stock price of $31.63, reflecting a 0.8% increase [6] Group 3 - Morgan Stanley analyst upgraded Curbline Properties from Equal-Weight to Overweight with a price target of $27, and the stock has gained approximately 7% over the past month [6] - Berenberg analyst initiated coverage on Essential Properties with a Buy rating and a price target of $36, with the stock gaining around 6% over the past five days [6]

Core Insights - Two stocks in the real estate sector are showing signs of being overbought, which may concern momentum-focused investors [1][2] Company Summaries - **Curbline Properties Corp. (NYSE:CURB)**: - Upgraded from Equal-Weight to Overweight by Morgan Stanley analyst Ronald Kamdem with a price target of $27 - Stock gained approximately 7% over the past month, reaching a 52-week high of $25.69 - RSI Value is 73.9, indicating overbought conditions - Recent price action shows shares rose 3.2% to close at $24.23 [3][6] - **Essential Properties Realty Trust Inc (NYSE:EPRT)**: - Initiated coverage with a Buy rating by Berenberg analyst Kai Klose, with a price target of $36 - Stock gained around 6% over the past five days, achieving a 52-week high of $34.88 - RSI Value is 72.4, also indicating overbought conditions - Recent price action shows shares gained 0.8% to close at $31.63 [4][6]

Core Points - Curbline Properties Corp. has authorized a $250 million share repurchase program and filed for a $250 million "at the market" (ATM) stock offering program to enhance stakeholder value [1][2] Company Overview - Curbline Properties is a self-managed REIT that owns and manages convenience shopping centers located in affluent suburban areas, focusing on high household income communities [3] Financial Initiatives - The share repurchase and ATM programs are part of the company's strategy to scale its operations as the first public REIT dedicated exclusively to convenience properties in wealthy submarkets across the United States [2]