Financial Performance - For the nine months ended September 30, 2025, net income attributable to Curbline was $30.3 million, compared to a loss of $1.2 million in the prior year, while Funds From Operations (FFO) increased to $80.5 million from $28.5 million[116]. - Total revenues for the three months ended September 30, 2025, increased to $48,647, up $18,885 from $29,762 in 2024, representing a 63.5% growth[119]. - Rental income for the nine months ended September 30, 2025, was $128,008, an increase of $42,622 or 49.9% compared to $85,386 in 2024[119]. - The increase in net income attributable to Curbline was driven by property acquisitions, increased interest income, and decreased transaction costs related to the Spin-Off[124]. - FFO attributable to Curbline for the nine months ended September 30, 2025, was $80.461 million, up from $28.520 million in the same period of 2024[136]. - Operating FFO attributable to Curbline increased to $81.581 million for the nine months ended September 30, 2025, compared to $59.675 million in the prior year[136]. - Total Curbline NOI for the nine months ended September 30, 2025, was $95.244 million, representing a 41.9% increase from $67.119 million in 2024[141]. - Same-Property NOI for the nine months ended September 30, 2025, was $60.749 million, reflecting a 3.7% increase from $58.558 million in the prior year[141]. Property and Portfolio Management - As of September 30, 2025, Curbline Properties Corp. owned 162 convenience shopping centers with a total gross leasable area of 4.5 million square feet, achieving an aggregate leased rate of 96.7% and an occupancy rate of 93.9%[104]. - The average annualized base rent (ABR) per occupied square foot was $34.38 as of September 30, 2025, down from $35.65 a year earlier, primarily due to property acquisitions[117]. - Curbline signed new leases and renewals for approximately 370,000 square feet of GLA, achieving cash new leasing spreads of 20.6% and cash renewal leasing spreads of 9.0%[117]. - The company owned 162 wholly owned properties as of September 30, 2025, with an occupancy rate of 93.9%, compared to 79 properties and 93.8% occupancy in 2024[119]. - The increase in recoveries from tenants for the nine months ended September 30, 2025, was primarily due to acquisitions, with recoveries at approximately 95.4% of operating expenses[119]. - The convenience property portfolio had leased and occupancy rates of 96.7% and 93.9%, respectively, as of September 30, 2025[185]. Acquisitions and Growth Strategy - The company acquired 69 properties for a total purchase price of $644.1 million from January 1, 2025, to October 29, 2025[114]. - The company has a forward-looking strategy to capitalize on the fragmented convenience shopping center market, with over 68,000 centers available in the U.S.[110]. - The Company plans to acquire additional assets funded by cash on hand, retained cash flow, and debt and equity financing, depending on market conditions[187]. Financial Position and Capital Management - Curbline's current cash position is $430.1 million, with significant access to debt capital for future acquisitions[110]. - The Company had unrestricted cash balances of $430.1 million and a $400.0 million undrawn line of credit as of September 30, 2025[143]. - The Company drew $100.0 million on the 2024 Term Loan in March 2025, which will mature on October 1, 2027[146]. - The 2024 Credit Agreement allows for an increase in available credit up to $750.0 million, subject to certain conditions[144]. - The Company entered into a private placement of $150.0 million of senior unsecured notes with a weighted-average coupon of 5.65%[149]. - The Company executed a treasury lock hedge transaction securing a treasury yield of 4.19% for $50.0 million of 2025 Notes due September 3, 2032[153]. - The Company entered into a 2025 Term Loan Agreement for an unsecured term loan of $150.0 million, with the potential to increase to $250.0 million[154]. - The 2025 Term Loan bears interest at a fixed all-in rate of 4.61%, with a forward interest rate swap fixing the variable-rate SOFR component at 3.66%[155]. - The Company priced a private placement offering of $200.0 million of senior unsecured notes, with interest rates fixed at 5.06% and 5.31% for the 5-Year and 7-Year Notes, respectively[156]. - The Company’s consolidated indebtedness as of September 30, 2025, was $400.0 million with a weighted-average interest rate of 5.0%[128]. - The Company’s fixed-rate debt amounted to $396.4 million, with a weighted average maturity of 3.8 years and an interest rate of 5.0%[190]. - The Company has mitigated interest rate risk on $100.0 million of its 2024 Term Loan and $150.0 million of its 2025 Term Loan by swapping to fixed rates through 2029 and 2031, respectively[191]. - A 100 basis-point increase in market interest rates would adjust the carrying value of the Company's fixed-rate debt to $407.0 million, reflecting the fair value of the swap[192]. - The Company believes that increases in interest expense due to inflation or other economic factors will not significantly impact its distributable cash flow[190]. Shareholder Returns - The company declared three quarterly cash dividends of $0.16 per share in 2025, reflecting a commitment to returning value to shareholders[117]. - The Company declared a quarterly cash dividend of $0.16 per share for the first three quarters of 2025, totaling $51.3 million declared year-to-date[160]. Market and Economic Conditions - The retail sector is facing challenges from changing consumer behaviors and increased competition, but some retailers are expanding their store fleets[186]. - The Company routinely monitors tenant credit profiles and the impact of potential tenant credit issues on financial statements and cash flow[186]. - The Company has not entered into any derivative financial instruments for trading or speculative purposes as of September 30, 2025[194]. - The Company is exposed to credit risk from counterparties to interest rate swaps but mitigates this risk by dealing with major financial institutions[191].
Curbline Properties Corp.(CURB) - 2025 Q3 - Quarterly Report