Financial Performance - Curbline Properties reported a net income of $10.6 million, or $0.10 per diluted share, for Q1 2025, up from $8.0 million, or $0.08 per diluted share, in Q1 2024, reflecting a year-over-year increase of 32.5%[14] - Operating funds from operations (OFFO) for Q1 2025 were $25.1 million, or $0.24 per diluted share, compared to $20.3 million, or $0.19 per diluted share, in the prior year, marking a 23.6% increase[14] - Net income attributable to Curbline rose to $10,550,000 in Q1 2025, up from $7,975,000 in Q1 2024, a 32.8% increase[32] - Funds from Operations (FFO) attributable to Curbline increased to $24,954,000 in Q1 2025, compared to $17,210,000 in Q1 2024, reflecting a 45.1% growth[32] - Total Curbline NOI increased by 28.9% to $28,472 in Q1 2025 from $22,086 in Q1 2024[48] - Rental income increased to $38,438,000 in Q1 2025 from $27,866,000 in Q1 2024, representing a 37.9% growth[29] Property Portfolio and Acquisitions - Curbline acquired 11 convenience shopping centers for a total of $124.2 million during the first quarter of 2025[11] - The company expanded its property portfolio to 107 properties with a total Gross Leasable Area (GLA) of 3,385,000 square feet as of March 31, 2025, up from 97 properties and 3,098,000 square feet at the end of 2024[39] - In Q1 2025, Curbline Properties Corp. acquired properties totaling 285 thousand square feet for $124,190,000[60] - Year-to-date acquisitions for 2025 reached 315 thousand square feet with a total investment of $139,073,000[60] Leasing and Occupancy - The leased rate increased to 96.0% as of March 31, 2025, compared to 95.5% at December 31, 2024, and 96.6% at March 31, 2024[20] - The same property leased rate improved to 96.9% in Q1 2025 from 96.6% in Q1 2024, indicating a 0.3% increase[48] - Curbline generated cash new leasing spreads of 20.8% and cash renewal leasing spreads of 8.3% for Q1 2025[20] - The leasing activity for new leases in Q1 2025 showed an average base rent (ABR) of $41.37 PSF, a 20.8% increase compared to the previous quarter[50] Financial Guidance and Market Capitalization - The company updated its 2025 guidance for net income attributable to Curbline to a range of $0.43 to $0.50 per diluted share, and for Operating FFO to a range of $0.99 to $1.02 per diluted share[15] - The company reported a total equity market capitalization of $2,545,127,000 as of March 31, 2025, up from $2,439,122,000 at the end of 2024[42] - The market value per share increased to $24.19 as of March 31, 2025, compared to $23.22 at the end of 2024[42] Expenses and Liabilities - Operating and maintenance expenses increased by 21.5% to $3,615 in Q1 2025 from $2,979 in Q1 2024[48] - Curbline's total liabilities increased to $185,224,000 in Q1 2025 from $90,541,000 in Q4 2024, primarily due to the addition of an unsecured term loan[34] - The total debt stood at $98,988,000, with an unsecured term loan of $100,000,000 maturing in October 2029[44] Tenant and Revenue Composition - Top 25 tenants contribute $26,975 in base rent, accounting for 24.3% of total portfolio rent of $111,065[58] - Total Gross Leasable Area (GLA) for top 25 tenants is 741 thousand square feet, representing 21.9% of the total portfolio GLA of 3,385 thousand square feet[58] - The largest tenant, Starbucks, has 23 units with a base rent of $2,576,000, making up 2.3% of total rent[58] - The second-largest tenant, Darden, occupies 8 units with a base rent of $1,586,000, representing 1.4% of total rent[58] Strategic Initiatives and Future Growth - The company is actively expanding its portfolio through strategic acquisitions in key markets such as Phoenix and Jacksonville[60] - Future growth strategies include focusing on new property developments and enhancing existing properties to increase rental income[60] - The company’s centers are located in key metropolitan areas, including Atlanta, Chicago, and New York, contributing to diverse revenue streams[64] Performance Metrics and Limitations - The company utilizes Funds from Operations (FFO) and Operating FFO as key performance measures, which exclude depreciation and amortization unique to real estate[68] - FFO is calculated as net income attributable to the company, adjusted for gains and losses from real estate dispositions, impairment charges, and certain non-cash items[70] - The company recognizes the limitations of FFO and Operating FFO, stating they do not represent cash generated from operating activities in accordance with GAAP[75] - The company emphasizes that SPNOI does not represent cash available for dividends or capital expenditures, and should not be considered an alternative to GAAP net income[78]
Curbline Properties Corp.(CURB) - 2025 Q1 - Quarterly Results