Curbline Properties Corp.(CURB) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, net income attributable to Curbline increased to $10.55 million, up from$7.98 million in the prior year, representing a year-over-year growth of 32%[97] - Funds from Operations (FFO) attributable to Curbline for the same period rose to $24.95 million, compared to$17.21 million in the previous year, marking a 45% increase[97] - Total revenues for the three months ended March 31, 2025, increased to $38,695,000 from$28,039,000 in 2024, representing a $10,656,000 increase or approximately 38$38,438,000 in Q1 2025, up from $27,866,000 in Q1 2024, marking a$10,572,000 increase or about 38%[100] - Net income attributable to Curbline increased to $10,550,000 in Q1 2025 from$7,975,000 in Q1 2024, reflecting a $2,575,000 increase or approximately 32$24,954,000, up from $17,210,000 in Q1 2024, indicating a$7,744,000 increase or about 45%[116] - Operating Funds from Operations (Operating FFO) for Q1 2025 reached $25,127,000, compared to$20,321,000 in Q1 2024, representing a $4,806,000 increase or approximately 24$28.472 million, reflecting a 28.9% increase compared to $22.086 million in the prior year[121] Property and Leasing Information - As of March 31, 2025, Curbline Properties Corp. owned 107 convenience shopping centers with a total gross leasable area (GLA) of 3.4 million square feet, achieving an aggregate leased rate of 96.0$35.14 as of March 31, 2025, a slight decrease from $35.62 at December 31, 2024, and$35.87 at March 31, 2024[98] - New cash leasing spreads were reported at 20.8%, while cash renewal leasing spreads were at 8.3% for the first quarter of 2025[98] - Approximately 54% of the ABR under Curbline's leases is set to expire within the next five years, providing opportunities for rent increases[95] - The Company executed new leases and renewals totaling approximately 124,000 square feet of GLA for the three months ended March 31, 2025[149] - As of March 31, 2025, the convenience property portfolio had leased and occupancy rates of 96.0% and 93.5%, respectively, with an ABR per occupied square foot of $35.14[151] Acquisitions and Investments - Curbline acquired 16 properties for a total purchase price of$139.1 million during the first quarter of 2025[98] - The Company acquired 16 convenience shopping centers for a total purchase price of $139.1 million through April 22, 2025[138] Cash and Debt Management - As of March 31, 2025, the Company had$594 million in unrestricted cash and a $400 million undrawn line of credit, with total debt outstanding at$100 million[123] - The Company maintains a $100 million interest rate swap agreement to fix the variable-rate SOFR component of its Term Loan Facility at 3.578$100.0 million of indebtedness as of March 31, 2025, with a fixed interest rate of 5.078% on its Term Loan Facility[153] - The Company’s fixed-rate debt carrying value was adjusted to include the $100.0 million of variable-rate debt swapped to a fixed rate, with a fair value of the swap as an asset of$19,722 at March 31, 2025[160] - A 100 basis-point increase in market interest rates would adjust the fair value of the swap to an asset of $3.1 million at March 31, 2025[161] Dividend and Shareholder Returns - The company declared a quarterly cash dividend of$0.16 per share of common stock, paid in April 2025[98] - The Company declared a quarterly cash dividend of $0.16 per share, totaling$17.1 million, with $17 million paid on April 8, 2025[130] Operational Challenges and Strategies - Rising interest rates and market volatility pose risks to the Company’s ability to finance future investments and maturities[153] - The Company believes it can backfill spaces vacated by bankrupt or non-renewing tenants due to favorable market conditions[152] - The Company intends to actively manage interest costs on variable-rate debt and may enter into swap positions or interest rate caps[162] - The Company routinely monitors tenant credit profiles to assess potential impacts on financial statements and cash flow[152] - The increase in recoveries from tenants was primarily due to acquisitions, with recoveries at approximately 92.4$8,928,000 in Q1 2025 from $1,524,000 in Q1 2024, reflecting a$7,404,000 increase[101] - The company reported a decrease in lease termination fees and ancillary income from $2,090,000 in Q1 2024 to$1,090,000 in Q1 2025, a decline of $1,000,000[100] - The Company has not entered into any derivative financial instruments for trading or speculative purposes as of March 31, 2025[162]