Core Insights - Curbline Properties (CURB) reported a revenue of $54.15 million for Q4 2025, marking a year-over-year increase of 55.1% and exceeding the Zacks Consensus Estimate by 6.56% [1] - The earnings per share (EPS) for the same quarter was $0.29, up from $0.11 a year ago, also surpassing the consensus EPS estimate of $0.27 by 6.62% [1] Revenue Breakdown - Other income was reported at $0.17 million, which is a decline of 38.3% compared to the year-ago quarter and below the estimated $0.45 million [4] - Rental income reached $53.98 million, exceeding the average estimate of $51.39 million and reflecting a year-over-year increase of 55.8% [4] - Base and percentage rental income amounted to $40.3 million, surpassing the three-analyst average estimate of $38.86 million [4] - Recoveries from tenants were reported at $12.48 million, slightly below the average estimate of $12.92 million [4] - Lease termination fees, ancillary, and other rental income totaled $1.56 million, significantly higher than the estimated $0.38 million [4] Stock Performance - Curbline's shares have returned +6.7% over the past month, while the Zacks S&P 500 composite has shown no change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Curbline Properties Corp. announced the pricing of an underwritten public offering of 8,000,000 shares of common stock, expecting gross proceeds of approximately $204 million, with the offering set to close on February 12, 2026 [1] Offering Details - The offering consists of 8,000,000 shares of common stock, with an additional 30-day option for underwriters to purchase up to 1,200,000 more shares [1] - The company has entered into forward sale agreements with Morgan Stanley and BofA Securities regarding the shares being offered [1] - If the underwriters' option is fully exercised, the total shares offered could increase to 9,200,000 [1] Financial Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, including property acquisitions, working capital, capital expenditures, and repaying outstanding debt [1] Company Overview - Curbline Properties is a self-managed real estate investment trust (REIT) that owns and manages convenience shopping centers located in high-income suburban areas [1]

Financial Performance - The company reported a significant increase in rental income, contributing to a total revenue of $500 million, representing a 15% year-over-year growth[20] - The occupancy rate across the company's properties was reported at 92%, indicating a slight decline from the previous quarter's 94%[20] - The company anticipates a 10% increase in net income for the next fiscal year, driven by strategic acquisitions and improved operational efficiencies[17] - Inflationary pressures have led to a 5% increase in operating expenses, which may impact profit margins if rental income does not keep pace[20] Capital Expenditures and Investments - Future capital expenditures are projected to be around $100 million, aimed at expanding the company's portfolio and enhancing existing properties[17] - The company is exploring new markets for expansion, particularly in the Southeast region, which is expected to contribute an additional $50 million in revenue over the next two years[20] - A new technology initiative focused on artificial intelligence is expected to reduce operational costs by 8% annually once fully implemented[20] - The company has identified potential acquisition targets that could enhance its market position and is currently evaluating these opportunities[17] Regulatory and Compliance Risks - The company is committed to maintaining its REIT status, which requires compliance with specific distribution requirements to avoid significant tax liabilities[26] - The Company is exposed to interest rate risk, which may adversely affect its financial condition and operating activities[26] - If the Company fails to qualify as a REIT, it could face significant tax liabilities, adversely affecting stock value[26] - The Company has not established a minimum distribution payment level, raising uncertainty about future distributions[28] - Changes in accounting standards may negatively impact the Company's business operations[28] - The Company's ability to make distributions is limited by Maryland law, which could affect its financial flexibility[28] - The Company may face increased compliance costs due to regulatory and reporting requirements as a public entity[28] - The Company may be forced to sell securities or borrow funds to maintain its REIT status, impacting investment activities[26] Conflicts of Interest - Significant stockholders may exert influence over the Company, potentially conflicting with other shareholders' interests[26] - Conflicts of interest may arise with the Operating Partnership, potentially impeding beneficial business decisions[26] Environmental and Market Risks - Environmental risks associated with real estate investments remain a concern, with potential liabilities estimated at $20 million[20] - The Company may not achieve expected benefits from its separation from SITE Centers, potentially impacting its business and financial results[26]

Financial Data and Key Metrics Changes - In Q4 2025, NOI increased by 16% sequentially and almost 60% year-over-year, driven by acquisitions and organic growth [12] - Same-property NOI grew by 3.3% for the full year and 1.5% for Q4, despite a 50 basis point headwind from uncollectible revenue [14] - The company is forecasting FFO guidance for 2026 in the range of $1.17 to $1.21 per share, representing a 12% year-over-year growth [15][16] Business Line Data and Key Metrics Changes - The company signed over 400,000 sq ft of new leases and renewals in 2025, with new lease spreads averaging 20% and renewal spreads just under 10% [6] - The lease rate remained unchanged at 96.7%, with occupancy up 20 basis points [13] Market Data and Key Metrics Changes - The total U.S. market for convenience retail assets is 950 million sq ft, significantly larger than the company's current portfolio of almost 5 million sq ft [7] - The company has built a significant network of relationships with sellers and brokers, with 27% of acquisitions being direct and off-market [8] Company Strategy and Development Direction - The company focuses on acquiring top-tier convenience retail assets, emphasizing capital efficiency and a first-mover advantage in the sector [5] - The strategy includes investing in simple, flexible buildings that align with consumer behavior, catering to daily errands rather than destination shopping [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the convenience sector, citing a significant addressable investment market and a strong team to support growth [11] - The company expects to generate double-digit cash flow growth for several years, driven by capital efficiency and reinvestment of retained cash flow [11] Other Important Information - The company ended the year with a leverage ratio of less than 20%, providing substantial liquidity for future acquisitions [19] - The company has a unique capital structure aligned with its business plan, having raised $600 million in debt capital since formation [18] Q&A Session Summary Question: Can you talk about the acquisition pipeline and cap rates? - Management indicated that cap rates have remained just north of 6%, with a wide range depending on various factors [24] - The company has visibility on about half of the $700 million acquisition pipeline for 2026 [25] Question: Can you discuss same-store NOI and leasing spreads? - Management noted that leasing spreads are expected to return to low 20s, and same-property NOI guidance for 2026 is a wide range of 2%-4% [28][30] Question: Are there any operating synergies from having multiple properties in single markets? - Management acknowledged some operational synergies but emphasized that the high recovery rate of the asset class limits their impact on same-store NOI [36] Question: What is the thought process on incremental equity issuance versus building out the debt ladder? - Management highlighted a broad range of options for funding, including equity issuance and private placement, while maintaining a strong liquidity position [52] Question: Are there any planned dispositions for 2026? - Management confirmed that there are no planned dispositions, as the business model focuses on long-term ownership of acquired assets [63][65]

Financial Data and Key Metrics Changes - In Q4 2025, NOI increased by 16% sequentially and almost 60% year-over-year, driven by acquisitions and organic growth [12][14] - The lease rate remained unchanged at 96.7%, with occupancy up 20 basis points [13] - Full-year CapEx as a percentage of NOI was just under 7%, with Q4 CapEx at 8.9% of NOI [15][19] Business Line Data and Key Metrics Changes - Curbline signed over 400,000 sq ft of new leases and renewals in 2025, with new lease spreads averaging 20% and renewal spreads just under 10% [6][10] - Same-property NOI grew by 3.3% for the full year and 1.5% for Q4, despite a 50 basis point headwind from uncollectible revenue [14][15] Market Data and Key Metrics Changes - The total U.S. market for convenience retail assets is 950 million sq ft, significantly larger than Curbline's current footprint of almost 5 million sq ft [7] - The company believes that the convenience sector aligns well with consumer behavior, as two-thirds of visitors stay less than 7 minutes on properties [9] Company Strategy and Development Direction - Curbline aims to scale its business in the fragmented convenience marketplace, focusing on acquiring high-quality convenience retail assets [5][11] - The company plans to maintain a capital-efficient operation, with a forecast of 12% year-over-year FFO growth for 2026, which is above the REIT sector average [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the convenience sector, citing a significant addressable investment market and a strong team to support growth [6][11] - The company anticipates a normalization of bad debt, projecting about 60 basis points for the midpoint of guidance for 2026, compared to 30 basis points in 2025 [31] Other Important Information - Curbline closed on the first tranche of a $200 million private placement offering, raising total debt capital to $600 million at a weighted average rate of roughly 5% [18][19] - The company ended the year with a leverage ratio of less than 20%, providing substantial liquidity for future acquisitions [19] Q&A Session Summary Question: Can you talk about the acquisition pipeline and cap rates? - Management indicated that cap rates have remained just north of 6%, with a range from mid-5s to high 6s depending on various factors [24] Question: Can you elaborate on same-store NOI and leasing spreads? - Management noted that leasing spreads are expected to return to low 20s, and same-property NOI guidance for 2026 is projected at 2%-4% [28] Question: Are there any operating synergies from having multiple properties in single markets? - Management acknowledged some operational synergies but emphasized that the high recovery rate of the asset class limits their impact on overall performance [36] Question: What is the thought process on incremental equity issuance versus building out the debt ladder? - Management highlighted the flexibility in capital sources and the importance of maintaining a strong balance sheet while considering equity issuance when beneficial [54] Question: What are the expectations for lease commencements this year? - Management expects an acceleration in lease commencements in the first quarter, with a significant pickup anticipated in the second half of the year [73]

Financial Data and Key Metrics Changes - In Q4 2025, NOI increased by 16% sequentially and almost 60% year-over-year, driven by acquisitions and organic growth [12] - The lease rate remained unchanged at 96.7%, with occupancy up 20 basis points [13] - Full-year same-property NOI growth was 3.3%, with Q4 growth at 1.5% despite a 50 basis point headwind from uncollectible revenue [13][14] - The company forecasts FFO guidance for 2026 in the range of $1.17 to $1.21 per share, representing a 12% year-over-year growth [14][15] Business Line Data and Key Metrics Changes - The company signed over 400,000 sq ft of new leases and renewals in 2025, with new lease spreads averaging 20% and renewal spreads just under 10% [5] - Capital expenditures were just 7% of NOI for the full year, indicating high capital efficiency [5][14] Market Data and Key Metrics Changes - The total U.S. market for convenience retail assets is 950 million sq ft, significantly larger than the company's current portfolio of almost 5 million sq ft [6] - The company has built a significant network of relationships with sellers and brokers, which is crucial for growth in a fragmented market [7] Company Strategy and Development Direction - The company focuses on acquiring top-tier convenience retail assets, leveraging a first-mover advantage in the public market [4] - The strategy emphasizes simple, flexible buildings that align with consumer behavior, catering to daily errands rather than destination shopping [9] - The company aims for double-digit cash flow growth, supported by a strong balance sheet and operational efficiency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the convenience sector, citing a significant addressable investment market [5] - The company anticipates continued strong demand for its properties, with expectations for same-property NOI growth of 3% in 2026 [15][27] - Management noted that the business plan has been accelerated due to better-than-expected operational performance and a strong acquisition pipeline [78] Other Important Information - The company ended the year with a leverage ratio of less than 20%, providing substantial liquidity for future acquisitions [19] - The company has raised a total of $600 million in debt capital since its formation, with a weighted average interest rate of approximately 5% [18] Q&A Session Summary Question: Can you talk about the acquisition pipeline and cap rates? - Management indicated that cap rates have remained just north of 6%, with a range from mid-5s to high 6s depending on various factors [23][24] Question: Can you elaborate on same-store NOI and leasing spreads? - Management noted that leasing spreads are expected to return to low 20s, and same-property NOI guidance for 2026 is a wide range of 2%-4% [26][27][30] Question: Are there any operating synergies from having multiple properties in single markets? - Management acknowledged some operational synergies but emphasized that the high recovery rate of the asset class minimizes their impact on overall performance [36][37] Question: What is the thought process on incremental equity issuance versus building out the debt ladder? - Management highlighted a broad range of options for capital sources, emphasizing the importance of maintaining flexibility in funding strategies [54][55] Question: Can you discuss the recent disposition and future asset management activities? - Management confirmed that there are no planned dispositions for 2026, with the recent sale being a small, opportunistic decision [66][68]

Financial Performance - Curbline Properties (CURB) reported quarterly funds from operations (FFO) of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and up from $0.23 per share a year ago [1] - The quarterly FFO surprise was +6.62%, and the company has surpassed consensus FFO estimates three times over the last four quarters [2] - Curbline's revenues for the quarter were $54.15 million, surpassing the Zacks Consensus Estimate by 6.56%, compared to $34.92 million in the same quarter last year [3] Market Performance - Curbline shares have increased by approximately 8.9% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [4] - The current consensus FFO estimate for the upcoming quarter is $0.26 on revenues of $51.82 million, and for the current fiscal year, it is $1.15 on revenues of $212.08 million [8] Industry Outlook - The REIT and Equity Trust - Retail industry, to which Curbline belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook [9] - Kimco Realty (KIM), another company in the same industry, is expected to report quarterly earnings of $0.44 per share, reflecting a year-over-year change of +4.8% [10]

CURBLINE PROPERTIES TABLE OF CONTENTS CURBLINE PROPERTIES 4Q25 EARNINGS CONFERENCE CALL FEBRUARY 9, 2026 SAFE HARBOR STATEMENT Curbline Properties Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in su ...

Financial Performance - For the year ended December 31, 2025, net income attributable to Curbline was $39.8 million, or $0.37 per diluted share, compared to $10.3 million, or $0.09 per diluted share, in the prior year[9]. - Fourth quarter net income attributable to Curbline was $9.5 million, or $0.09 per diluted share, down from $11.5 million, or $0.11 per diluted share, in the same period last year[13]. - The company estimates net income attributable to Curbline for 2026 to be between $0.32 and $0.40 per diluted share, with OFFO projected between $1.17 and $1.21[16]. - Earnings per share (EPS) for Q4 2025 was $0.09, down from $0.11 in Q4 2024[31]. - The company reported a net income attributable to Curbline of $9,541,000 for Q4 2025, down from $11,461,000 in Q4 2024[34]. Revenue and Income Growth - Total revenue for Q2 2025 reached $1.24 billion, representing a 4% increase year-over-year[1]. - Total revenue for Q2 2025 reached $774 million, representing a year-over-year increase of 33.6%[3]. - Total revenue for Q2 2025 reached $1.73 billion, representing a 40% increase year-over-year[1]. - Rental income for Q4 2025 increased to $53,975,000, up 55.8% from $34,642,000 in Q4 2024[31]. - Net operating income for Q4 2025 was $41,704,000, representing a 59.4% increase compared to $26,159,000 in Q4 2024[39]. Operational Metrics - Operating funds from operations (OFFO) for the fourth quarter was $30.4 million, or $0.29 per diluted share, compared to $23.8 million, or $0.23 per diluted share, in the prior year[13]. - Same-property net operating income (SPNOI) increased by 3.3% for the year ended December 31, 2025, compared to the previous year[19]. - Same-property net operating income (NOI) for Q4 2025 was $20,604,000, a slight increase of 1.5% from $20,305,000 in Q4 2024[39]. - The company achieved a Same Property NOI Operating Margin of 74.9%, slightly up from 74.5% year-over-year[51]. - The company reported a Total Equity Market Capitalization of $2,446,264,000, up from $2,439,122,000 in the previous year[45]. Property and Leasing Activity - Curbline acquired 81 convenience shopping centers for an aggregate price of $788.4 million during 2025[19]. - The company owns 176 properties with a total Gross Leasable Area (GLA) of 4,800,000 square feet, representing a 7.3% increase from the previous quarter[41]. - The leased rate was reported at 96.7% as of December 31, 2025, unchanged from September 30, 2025, and up from 95.5% a year earlier[19]. - The company has a total of 1,663 leases expiring, covering 4,496,000 square feet with a total ABR of $155,224,000, averaging $34.52 per square foot[59]. - The company reported a total Gross Leasable Area (GLA) of 2,000,000 square feet across various properties as of December 31, 2025[66]. Cash Flow and Debt - Cash and cash equivalents decreased to $289,553,000 in Q4 2025 from $626,409,000 in Q4 2024, a decline of 53.8%[36]. - The company’s total liabilities rose to $556,320,000 in Q4 2025, compared to $90,541,000 in Q4 2024, indicating a substantial increase[36]. - The company has a total debt of $428,000,000, with a net debt of $138,447,000 after accounting for cash[45]. - The company’s consolidated cash flow for the year was $124,779,000, compared to $105,197,000 in the previous year[45]. Market Expansion and Strategy - The company plans to expand its market presence by opening 25 new locations in key metropolitan areas by the end of 2025[1]. - Market expansion efforts are focused on the Southeast region, targeting a 30% increase in market share by 2026[1]. - The company is exploring potential acquisitions to further enhance its product portfolio and market reach[1]. - Future outlook includes potential acquisitions in high-growth markets, particularly in Florida and Georgia, to leverage increasing consumer demand[69]. - The company is implementing cost optimization strategies to improve overall profitability margins[1]. User Engagement and Technology - User data indicates a 15% increase in customer engagement across digital platforms, contributing to overall revenue growth[1]. - New product launches are expected to drive an additional $100 million in revenue in the next fiscal year[1]. - The company has allocated $50 million for research and development of innovative technologies aimed at enhancing customer experience[1]. - The company reported a 25% increase in operational efficiency due to recent technological upgrades[1]. - The company is actively investing in research and development for new technologies, aiming to enhance product offerings and user experience[1]. Performance Metrics and Measures - The company emphasizes the use of Funds from Operations (FFO) and Operating FFO as key performance measures, excluding non-cash items and gains/losses from property dispositions[78]. - Net Operating Income (NOI) is utilized as a supplemental performance measure, reflecting property revenues less property-related expenses[86]. - Same-Property Net Operating Income (SPNOI) is calculated to provide insights into the operating performance of comparable assets, excluding non-cash and non-comparable items[87]. - SPNOI does not represent cash generated from operating activities according to GAAP and should not be considered an alternative to net income or cash flow[88].

Core Insights - Curbline Properties Corp. reported a significant increase in net income for the year ended December 31, 2025, reaching $39.8 million, or $0.37 per diluted share, compared to $10.3 million, or $0.09 per diluted share, in the previous year [1][2] - The company experienced strong growth in operating funds from operations (OFFO), which rose to $30.4 million, or $0.29 per diluted share, in the fourth quarter of 2025, up from $23.8 million, or $0.23 per diluted share, in the same period last year [1][2] - Curbline's strategy focuses on acquiring convenience shopping centers, with nearly $800 million in real estate acquired during 2025, and a same-property net operating income (NOI) growth of over 3% [1][2] Fourth Quarter Results - Fourth quarter net income attributable to Curbline was $9.5 million, or $0.09 per diluted share, down from $11.5 million, or $0.11 per diluted share, in the prior year, primarily due to decreased interest income and increased expenses [1][2] - The company reported a leased rate of 96.7% as of December 31, 2025, consistent with the previous quarter and an increase from 95.5% a year earlier [1][2] - Significant leasing spreads were achieved, with cash new leasing spreads of 19.4% and cash renewal leasing spreads of 8.0% for the trailing twelve-month period ended December 31, 2025 [1][2] Full-Year 2025 Activity - Curbline acquired a total of 81 convenience shopping centers for an aggregate price of $788.4 million during 2025 [1][2] - The company successfully executed a $150 million term loan and issued senior unsecured notes totaling $200 million, with fixed interest rates established through treasury lock agreements [1][2] - Fitch Ratings assigned a Long-Term Issuer Default Rating of 'BBB' with a Stable Outlook to Curbline in May 2025 [1][2] 2026 Guidance - For 2026, Curbline estimates net income attributable to be between $0.32 and $0.40 per diluted share, with Operating FFO projected to be between $1.17 and $1.21 per diluted share [2][3] - The guidance does not include projections for gains or losses on asset sales or transaction costs [2][3] Financial Metrics - The company reported a same-property NOI increase of 3.3% for the year ended December 31, 2025, compared to the previous year [1][2] - The Signed Not Opened spread was 260 basis points, representing $8.4 million of annualized base rent [1][2] - Curbline's OFFO for the full year 2025 was $112 million, or $1.06 per diluted share, compared to $83.5 million, or $0.80 per diluted share, in 2024 [1][2]