Curbline Properties (CURB) Q3 2024 earnings summary

Executive summary

• Curbline Properties completed its spin-off from SITE Centers on October 1, 2024, becoming a publicly traded REIT focused on convenience real estate in affluent U.S. submarkets, with 79 properties totaling 2.7 million square feet of GLA as of September 30, 2024.

• The company targets high-income, high-growth U.S. submarkets and maintains a diversified tenant base, with Starbucks as the largest tenant at 2.3% of annualized revenue.

• At separation, Curbline was debt-free with $800 million in cash, a $400 million undrawn credit line, and a $100 million term loan facility.

• The company signed new leases and renewals for 257,000 square feet YTD, with a leased rate of 95.4% and an occupied rate of 93.8% at quarter-end.

• Curbline acquired 18 properties for $300.8 million in 2024, including $104.4 million in Q4 acquisitions, expanding its portfolio by 683,000 square feet.

Financial highlights

• For Q3 2024, rental income was $29.6 million, up from $24.1 million year-over-year; total revenues were $29.8 million, up from $24.2 million.

• Net loss for Q3 2024 was $(15.4) million, compared to net income of $8.8 million in Q3 2023, primarily due to $23.6 million in spin-off transaction costs.

• For the nine months ended September 30, 2024, rental income was $85.4 million (up from $67.7 million), with a net loss of $(1.2) million versus net income of $23.4 million in the prior year period.

• Adjusted (Operating) FFO for Q3 2024 was $19.5 million, up from $16.9 million in Q3 2023; for the nine months, Operating FFO was $59.7 million, up from $47.6 million.

• Acquired seven centers for $145.3 million in Q3 and 13 centers for $104.4 million in Q4 to date.

Outlook and guidance

• Curbline intends to grow its asset base through acquisitions, leveraging its net cash position and $500 million in undrawn credit facilities.

• The company expects to make distributions to qualify as a REIT, with the board evaluating the dividend policy to balance liquidity and tax requirements.

• Management anticipates continued strong leasing demand and stable cash flows, supported by portfolio concentration in affluent, high-growth suburban markets.