Financial Data and Key Metrics Changes - In Q4 2025, NOI increased by 16% sequentially and almost 60% year-over-year, driven by acquisitions and organic growth [12][14] - The lease rate remained unchanged at 96.7%, with occupancy up 20 basis points [13] - Full-year CapEx as a percentage of NOI was just under 7%, with Q4 CapEx at 8.9% of NOI [15][19] Business Line Data and Key Metrics Changes - Curbline signed over 400,000 sq ft of new leases and renewals in 2025, with new lease spreads averaging 20% and renewal spreads just under 10% [6][10] - Same-property NOI grew by 3.3% for the full year and 1.5% for Q4, despite a 50 basis point headwind from uncollectible revenue [14][15] Market Data and Key Metrics Changes - The total U.S. market for convenience retail assets is 950 million sq ft, significantly larger than Curbline's current footprint of almost 5 million sq ft [7] - The company believes that the convenience sector aligns well with consumer behavior, as two-thirds of visitors stay less than 7 minutes on properties [9] Company Strategy and Development Direction - Curbline aims to scale its business in the fragmented convenience marketplace, focusing on acquiring high-quality convenience retail assets [5][11] - The company plans to maintain a capital-efficient operation, with a forecast of 12% year-over-year FFO growth for 2026, which is above the REIT sector average [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the convenience sector, citing a significant addressable investment market and a strong team to support growth [6][11] - The company anticipates a normalization of bad debt, projecting about 60 basis points for the midpoint of guidance for 2026, compared to 30 basis points in 2025 [31] Other Important Information - Curbline closed on the first tranche of a $200 million private placement offering, raising total debt capital to $600 million at a weighted average rate of roughly 5% [18][19] - The company ended the year with a leverage ratio of less than 20%, providing substantial liquidity for future acquisitions [19] Q&A Session Summary Question: Can you talk about the acquisition pipeline and cap rates? - Management indicated that cap rates have remained just north of 6%, with a range from mid-5s to high 6s depending on various factors [24] Question: Can you elaborate on same-store NOI and leasing spreads? - Management noted that leasing spreads are expected to return to low 20s, and same-property NOI guidance for 2026 is projected at 2%-4% [28] Question: Are there any operating synergies from having multiple properties in single markets? - Management acknowledged some operational synergies but emphasized that the high recovery rate of the asset class limits their impact on overall performance [36] Question: What is the thought process on incremental equity issuance versus building out the debt ladder? - Management highlighted the flexibility in capital sources and the importance of maintaining a strong balance sheet while considering equity issuance when beneficial [54] Question: What are the expectations for lease commencements this year? - Management expects an acceleration in lease commencements in the first quarter, with a significant pickup anticipated in the second half of the year [73]