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]

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] - The lease rate remained unchanged at 96.7%, with occupancy up 20 basis points [13] - Full-year same-property NOI growth was 3.3%, with Q4 growth at 1.5% despite a 50 basis point headwind from uncollectible revenue [13][14] - The company forecasts FFO guidance for 2026 in the range of $1.17 to $1.21 per share, representing a 12% year-over-year growth [14][15] Business Line Data and Key Metrics Changes - The company 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% [5] - Capital expenditures were just 7% of NOI for the full year, indicating high capital efficiency [5][14] Market Data and Key Metrics Changes - The total U.S. market for convenience retail assets is 950 million sq ft, significantly larger than the company's current portfolio of almost 5 million sq ft [6] - The company has built a significant network of relationships with sellers and brokers, which is crucial for growth in a fragmented market [7] Company Strategy and Development Direction - The company focuses on acquiring top-tier convenience retail assets, leveraging a first-mover advantage in the public market [4] - The strategy emphasizes simple, flexible buildings that align with consumer behavior, catering to daily errands rather than destination shopping [9] - The company aims for double-digit cash flow growth, supported by a strong balance sheet and operational efficiency [11] 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 [5] - The company anticipates continued strong demand for its properties, with expectations for same-property NOI growth of 3% in 2026 [15][27] - Management noted that the business plan has been accelerated due to better-than-expected operational performance and a strong acquisition pipeline [78] Other Important Information - The company ended the year with a leverage ratio of less than 20%, providing substantial liquidity for future acquisitions [19] - The company has raised a total of $600 million in debt capital since its formation, with a weighted average interest rate of approximately 5% [18] 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 [23][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 a wide range of 2%-4% [26][27][30] 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 minimizes their impact on overall performance [36][37] Question: What is the thought process on incremental equity issuance versus building out the debt ladder? - Management highlighted a broad range of options for capital sources, emphasizing the importance of maintaining flexibility in funding strategies [54][55] Question: Can you discuss the recent disposition and future asset management activities? - Management confirmed that there are no planned dispositions for 2026, with the recent sale being a small, opportunistic decision [66][68]

Financial Data and Key Metrics Changes - The company delivered FFO and DPS of 20.7¢ per security, slightly above guidance of 20.6¢, with like-for-like income growth of 2.9% and occupancy reaching 99.9% [4][7][8] - Gearing stands at 29.4%, positioned at the lower end of the target range, expected to increase with capital deployment into growth opportunities [5][9] - NTA per security grew by 8¢ or 2.2% to $3.64, supported by underlying rental growth and cap rate compression [8][10] Business Line Data and Key Metrics Changes - The portfolio consists of over 90 assets valued at over $700 million, with a significant focus on metro and highway locations [2][3] - The company executed $38.8 million in divestments in the first half, enhancing portfolio quality and providing balance sheet capacity for future growth [4][12] Market Data and Key Metrics Changes - Property valuations increased by 2.3%, driven by rental growth and cap rate compression of eight basis points [10] - The portfolio capitalization rate is 6.32%, supported by strength in the underlying transaction market [10] Company Strategy and Development Direction - The company is focused on developing the Glasshouse Mountains project, which will enhance overall portfolio quality and increase strategic weighting to highway assets [11][12] - Future growth initiatives include progressing the redevelopment of Glasshouse Mountain southbound and securing other growth opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in momentum leading up to the federal election, but a strong increase in volumes post-election [11] - For FY '26, the company expects to deliver FFO and distributions per security of 20.9¢, reflecting year-on-year growth of 1.2% [13] Other Important Information - The company maintains a carbon-neutral position across controlled assets and engages with tenants to support their ESG objectives [6] - Environmental initiatives are integral to development plans, including EV charging bays and renewable energy sources [7] Q&A Session Summary Question: Can you walk us through the bridge in FY '26 regarding key moving parts and drivers? - Management indicated that like-for-like NOI growth will be similar, offset by a moderate increase in the cost of debt and dilution from asset sales [16] Question: Are you assuming any more capital deployment during the period? - Guidance does not assume capital deployment beyond the Glasshouse Mountains northbound project [17] Question: What is the focus on the pipeline for restocking? - The focus is on convenience retail hubs and highway sites with truck stop facilities, with ongoing discussions with developers [18][19] Question: How much are you willing to spend on new projects? - The company has a buying capacity of approximately $50 to $60 million while remaining within the target gearing range [20] Question: What are the key metrics for the development project? - Expected development IRR is around 20%, with a long-term hold IRR of about 10% [22]