Curbline Properties Corp.(CURB) - 2025 Q2 - Quarterly Results

Earnings Release & Financial Statements Press Release The company reported strong Q2 2025 results with significant growth in net income and Operating FFO, leading to raised full-year guidance - The CEO highlighted strong Q2 performance driven by results ahead of expectations, the highest quarterly new leasing volume since formation, $155 million in acquisitions, and $150 million in capital raising[11] - Significant recent activities include acquiring 19 centers for $154.9M in Q2, obtaining a 'BBB' Fitch rating, and entering a $150M private placement of unsecured senior notes[14][20] Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income Attributable to Curbline | $10.4 million | $6.2 million | | Diluted EPS | $0.10 | $0.06 | | Operating FFO (OFFO) | $26.9 million | $19.8 million | | OFFO per Diluted Share | $0.26 | $0.19 | Key Quarterly Operating Results (Q2 2025) | Metric | Value/Change | | :--- | :--- | | Same-Property NOI Growth (YoY) | +6.2% | | Leased Rate | 96.1% | | Cash New Leasing Spreads | 10.6% | | Cash Renewal Leasing Spreads | 8.3% | | Signed Not Opened Spread | 260 bps ($6.4M annualized rent) | Revised Full-Year 2025 Guidance (per Diluted Share) | Metric | Prior Guidance | Revised Guidance | | :--- | :--- | :--- | | Net Income Attributable to Curbline | $0.43 - $0.50 | $0.37 - $0.44 | | Operating FFO Attributable to Curbline | $0.99 - $1.02 | $1.00 - $1.03 | Company Summary Portfolio Summary The company's portfolio grew to 125 properties with strong operating metrics, concentrated in top MSAs like Miami, Atlanta, and Phoenix Portfolio Operational Overview (as of 6/30/2025) | Metric | Q2 2025 | | :--- | :--- | | Properties | 125 | | Total GLA (in thousands) | 3,689 | | Base Rent PSF | $35.26 | | Leased Rate | 96.1% | | Commenced Rate | 93.5% | | Quarterly SPNOI | 6.2% | Top 5 MSAs by ABR | MSA | % of ABR | | :--- | :--- | | Miami-Fort Lauderdale-West Palm Beach, FL | 12.9% | | Atlanta-Sandy Springs-Alpharetta, GA | 9.4% | | Phoenix-Mesa-Chandler, AZ | 9.3% | | Orlando-Kissimmee-Sanford, FL | 7.1% | | Houston-The Woodlands-Sugar Land, TX | 5.3% | Trailing Twelve-Month (TTM) Leasing Spreads | Spread Type | New Leases | Renewals | Blended | | :--- | :--- | :--- | :--- | | Cash Rent Spreads | 15.3% | 8.5% | 10.4% | | Straight-Lined Rent Spreads | 33.0% | 18.1% | 22.4% | Capital Structure The company maintained a strong capital structure with a total enterprise value of $2.07 billion and a net cash position of approximately $330 million Capital Structure Summary (as of June 30, 2025) | Metric | Value (in thousands) | | :--- | :--- | | Total Equity Market Capitalization | $2,402,050 | | Total Debt | $100,000 | | Less: Cash | ($429,865) | | Net Debt | ($329,865) | | Total Enterprise Value | $2,072,185 | Debt Detail The company's debt consists of a $100 million unsecured term loan, with an undrawn $400 million revolver providing significant flexibility Debt Composition (as of June 30, 2025) | Debt Instrument | Balance (in thousands) | Maturity Date | Interest Rate | | :--- | :--- | :--- | :--- | | Unsecured Revolver ($400m) | $0 | Sep-29 | SOFR+0.95% | | Unsecured Term Loan ($100m) | $100,000 | Oct-29 | 4.68% | | Total Debt | $100,000 | | | Same Property Metrics Same-Property NOI grew by a strong 6.2% in Q2 2025, driven by a 6.7% increase in same-property revenues - The same-property leased rate increased by 20 basis points to 96.5% as of Q2 2025 compared to 96.3% in Q2 2024[50] Same-Property NOI Performance (vs. Prior Year) | Period | Revenue Change | Expense Change | SPNOI Change | | :--- | :--- | :--- | :--- | | Q2 2025 | 6.7% | 8.3% | 6.2% | | 6M 2025 | 6.0% | 11.4% | 4.4% | Leasing Summary The company executed 42 leases in Q2 2025, achieving blended cash rent spreads of 9.2% and strong TTM leasing activity Q2 2025 Leasing Spreads (Comparable Pool) | Lease Type | Cash Spread | Straight-Lined Spread | | :--- | :--- | :--- | | New Leases | 10.6% | 29.5% | | Renewals | 8.3% | 20.0% | | New + Renewals | 9.2% | 23.9% | Trailing Twelve-Month Leasing Spreads (Comparable Pool) | Lease Type | Cash Spread | Straight-Lined Spread | | :--- | :--- | :--- | | New Leases | 15.3% | 33.0% | | Renewals | 8.5% | 18.1% | | New + Renewals | 10.4% | 22.4% | Lease Expiration Schedule The company maintains a well-staggered lease expiration schedule, with less than 12% of ABR expiring through 2026 Lease Expirations by ABR | Year | % of ABR Expiring | | :--- | :--- | | 2025 | 2.3% | | 2026 | 8.9% | | 2027 | 12.1% | | 2028 | 17.5% | | 2029 | 9.9% | | Thereafter | 48.4% | Top 25 Tenants The tenant base is highly diversified, with the top 25 tenants representing only 24.3% of total ABR - The top 25 tenants contribute 24.3% of total ABR, demonstrating a diversified tenant roster[60] Top 5 Tenants by ABR | Rank | Tenant | % of Total ABR | | :--- | :--- | :--- | | 1 | Starbucks | 2.6% | | 2 | Verizon | 1.5% | | 3 | Darden | 1.3% | | 4 | JPMorgan Chase | 1.3% | | 5 | Inspire Brands | 1.2% | Investments Acquisitions The company maintained a rapid acquisition pace, investing $539.5 million year-to-date through Q3 2025 2025 Acquisition Summary (YTD) | Period | Owned GLA (in thousands) | Price (in thousands) | | :--- | :--- | :--- | | Q1 2025 | 285 | $124,190 | | Q2 2025 | 306 | $154,906 | | Q3 2025 QTD | 608 | $260,386 | | Total 2025 YTD | 1,199 | $539,482 | Shopping Center Summary Property List The portfolio comprises 125 geographically diversified properties with concentrations in high-growth suburban markets - The portfolio comprises 125 properties as of June 30, 2025[65][67][69] - The property list indicates a strong presence in high-growth suburban markets, including 13 properties in the Phoenix-Mesa-Chandler MSA and 14 in the Atlanta-Sandy Springs-Alpharetta MSA[65][67] Reporting Policies and Other Notable Accounting Policies and Non-GAAP Measures The company utilizes standard non-GAAP REIT metrics like FFO and SPNOI to evaluate core operating performance - FFO is defined according to NAREIT standards, starting with net income and excluding real estate depreciation and gains/losses from property sales to better reflect portfolio performance[75] - Operating FFO is a further refinement of FFO, excluding non-core items like transaction costs to provide a clearer view of ongoing operational performance[76] - SPNOI includes only assets owned for the entirety of both comparable periods and excludes non-cash items to measure performance for a consistent pool of properties[82]