Financial Performance - The company reported a net loss attributable to Curbline Predecessor of $15.4 million for the three months ended September 30, 2024, compared to a net income of $8.8 million for the same period in 2023 [55]. - Funds from Operations (FFO) attributable to Curbline Predecessor decreased to $(4.3) million for the three months ended September 30, 2024, from $16.4 million in the prior year [55]. - Total revenues for the three months ended September 30, 2024, were $29.8 million, an increase of $5.5 million compared to $24.2 million in the same period of 2023 [64]. - The company reported a net loss of $1.199 million attributable to Curbline Predecessor for the nine months ended September 30, 2024, compared to a net income of $23.385 million in 2023, a decrease of $24.584 million [72]. - Operating FFO for the nine months ended September 30, 2024, increased to $19,512 million from $16,874 million in the prior year, primarily due to property acquisitions [81]. - Cash flow provided by operating activities decreased by $23.7 million to $25,256 million for the nine months ended September 30, 2024, primarily due to higher transaction costs related to the spin-off [92]. Property Portfolio - As of September 30, 2024, Curbline Properties Corp. owned a portfolio of 79 properties with approximately 2.7 million square feet of gross leasable area (GLA) [51]. - The company owned 79 wholly owned properties as of September 30, 2024, with an occupancy rate of 93.8% and an average ABR of $35.65 per occupied square foot [67]. - Curbline Properties acquired 12 properties for an aggregate purchase price of $81.6 million from October 1, 2024, to November 8, 2024 [62]. - The company acquired 14 convenience properties for a total gross purchase price of $219,174 million through September 30, 2024 [96]. - The convenience property portfolio had a leased rate of 95.4% and an occupancy rate of 93.8% as of September 30, 2024 [101]. Expenses and Costs - Total expenses for the three months ended September 30, 2024, were $21.538 million, an increase of $6.472 million from $15.066 million in 2023 [69]. - General and administrative expenses for the nine months ended September 30, 2024, were approximately 8.5% of total revenues, up from 5.0% in 2023 [70]. - The company incurred transaction costs of $30.879 million for the nine months ended September 30, 2024, compared to $1.054 million in 2023, a change of $29.825 million [71]. Liquidity and Financing - The company had $800 million in cash on hand at the time of its separation from SITE Centers, positioning it for future acquisitions without the need for near-term equity [53]. - The Company had approximately $800.0 million in cash on hand, a $400.0 million unsecured, undrawn line of credit, and a $100.0 million unsecured, delayed draw term loan following its separation from SITE Centers [82]. - The Company expects to maintain sufficient liquidity and financial flexibility to pursue its business plan, which includes acquiring additional convenience properties [94]. - The Company entered into a $100.0 million forward interest rate swap agreement to fix the variable-rate component of its Term Loan Facility at 3.578% [86]. - Cash flow provided by financing activities increased by $140.6 million, primarily due to increased transactions with SITE Centers [93]. Market Conditions and Risks - The company routinely monitors tenant credit profiles to assess potential impacts on financial statements and cash flow due to changing economic conditions [103]. - Inflation and changing consumer spending patterns continue to pose risks to the retail sector and the company's tenants [103]. - The company has favorable prospects to backfill spaces vacated by bankrupt or non-renewing tenants, despite economic uncertainties [103]. - The company has not entered into any derivative financial instruments for trading or speculative purposes, maintaining a focus on risk management [111]. Occupancy and Leasing - The leased rate was 95.4% as of September 30, 2024, down from 96.7% at December 31, 2023 [63]. - The company signed new leases and renewals for approximately 257,000 square feet of GLA during the nine months ended September 30, 2024 [63]. - Occupancy rates were reported at 96.3% and 93.6%, with an average base rent (ABR) of $35.31 per square foot as of September 30, 2023 [102]. - The weighted-average cost of tenant improvements and lease commissions for leases executed during the nine months ended September 30, 2024, was estimated at $1.62 per rentable square foot [102]. Interest and Debt Management - Interest expense for the three months ended September 30, 2024, was $388 thousand, a change of $750 thousand from the previous year [71]. - The company had no indebtedness as of September 30, 2024, but rising interest rates and capital market conditions could impact future financing and investment plans [104]. - A 100 basis-point increase in interest rates is estimated to decrease the fair value of the company's fixed-rate debt from $24.8 million to $24.6 million [109]. - The company entered into a $100.0 million forward interest rate swap agreement to fix the variable-rate SOFR component of its Term Loan Facility to 3.578% from April 1, 2025, through October 1, 2028 [112]. Performance Metrics - Funds from Operations (FFO) and Operating FFO are used to assess the financial performance of the company, excluding certain non-cash items and gains/losses from property dispositions [73]. - The company emphasizes that FFO and Operating FFO should be considered alongside GAAP net income for a comprehensive understanding of its performance [79]. - Net (loss) income attributable to Curbline for the nine months ended September 30, 2024, was $(15,410) million, a decrease from $8,779 million in the prior year [81].
Curbline Properties Corp.(CURB) - 2024 Q3 - Quarterly Report