Curbline Properties Reports First Quarter 2026 Results
NEW YORK–(BUSINESS WIRE)–
Curbline Properties Corp. (NYSE: CURB) (the “Company” or “Curbline”), an owner of convenience centers in suburban, high household income communities, announced today operating results for the quarter ended March 31, 2026. First quarter net income attributable to Curbline was $3.6 million, or $0.03 per diluted share, as compared to net income of $10.6 million, or $0.10 per diluted share, in the year-ago period.
“Curbline’s first quarter results highlight the Company’s strong start to the year with over $140 million of acquisitions, an acceleration in same-property NOI growth from the fourth quarter to 4.8%, and almost $500 million of private placement notes and common equity funded or raised. Given the Company’s outperformance year-to-date, along with a growing investment pipeline, Curbline is raising its full year investment target and OFFO guidance range,” commented David R. Lukes, President and Chief Executive Officer. “Looking forward, we believe Curbline remains uniquely positioned for growth given its differentiated investment focus, the leasing economics of the Company’s property type, and its balance sheet.”
Results for the First Quarter
- First quarter net income attributable to Curbline was $3.6 million, or $0.3 per diluted share, as compared to net income of $10.6 million, or $0.10 per diluted share, in the year-ago period. The decrease year-over-year was primarily due to a decrease in interest income, an increase in interest expense and an increase in depreciation and amortization expense, partially offset by the impact from asset acquisitions and related increase in net operating income.
- First quarter operating funds from operations attributable to Curbline (“Operating FFO” or “OFFO”) was $29.9 million, or $0.28 per diluted share, compared to $25.1 million, or $0.24 per diluted share, in the year-ago period. The increase year-over-year was primarily due to the impact from asset acquisitions and related increase in net operating income, partially offset by a decrease in interest income and an increase in interest expense.
Significant First Quarter Activity and Recent Activity
- During the first quarter, acquired 14 convenience shopping centers for an aggregate price of $142.4 million.
- In January, funded the remaining $172.0 million of the $200.0 million 2026 senior unsecured notes which the Company agreed to sell in November 2025.
- In February, sold 9.2 million shares of common stock on a forward basis at a public offering price of $25.50 per share before issuance costs, generating expected gross proceeds before issuance costs of $234.6 million with no shares settled to date.
- During the first quarter and second quarter to date, sold 2.6 million shares of common stock on a forward basis under its ATM Continuous Equity Program for expected gross proceeds of $61.0 million, with no shares settled to date.
- In the second quarter to date, acquired eight convenience shopping centers for an aggregate price of $93.8 million.
- As of March 31, 2026, adjusted for forward equity sales completed year to date, the Company had $676.9 million of cash and capital commitments for future acquisitions, including $305.8 million of cash and $371.1 million of gross proceeds from unsettled forward equity sales.
Key Quarterly Operating Results
- Reported an increase of 4.8% in same-property net operating income (“SPNOI”) for the three-month period ended March 31, 2026 compared to March 31, 2025.
- Generated cash new leasing spreads of 20.2% and cash renewal leasing spreads of 7.1%, for the trailing twelve-month period ended March 31, 2026 and cash new leasing spreads of 33.5% and cash renewal leasing spreads of 5.9% for the first quarter of 2026.
- Generated straight-lined new leasing spreads of 35.9% and straight-lined renewal leasing spreads of 17.1%, for the trailing twelve-month period ended March 31, 2026 and straight-lined new leasing spreads of 55.9% and straight-lined renewal leasing spreads of 14.7% for the first quarter of 2026.
- Reported a leased rate of 96.3% at March 31, 2026 compared to 96.7% at December 31, 2025 and 96.0% at March 31, 2025.
- As of March 31, 2026, the Signed Not Opened spread was 220 basis points, representing $8.1 million of annualized base rent.
2026 Guidance
The Company has updated its guidance for net income attributable to Curbline for 2026 to be from $0.29 to $0.36 per diluted share and Operating FFO to be from $1.20 to $1.23. The Company does not include a projection of gains or losses on asset sales, transaction costs or debt extinguishment costs in guidance.
Reconciliation of Net Income Attributable to Curbline to FFO and Operating FFO estimates:
|
|
FY 2026E (prior) |
|
FY 2026E (revised) |
|
Net income attributable to Curbline |
$0.32 — $0.40 |
|
$0.29 — $0.36 |
|
Depreciation and amortization of real estate, net |
0.85 — 0.81 |
|
0.90 — 0.86 |
|
FFO attributable to Curbline (NAREIT) |
$1.17 — $1.21 |
|
$1.19 — $1.22 |
|
Transaction and other costs, net (reported actual) |
N/A |
|
0.01 |
|
Operating FFO attributable to Curbline |
$1.17 — $1.21 |
|
$1.20 — $1.23 |
About Curbline Properties
Curbline Properties is an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban, high household income communities. The Company is a self-managed real estate investment trust (“REIT”) that is publicly traded under the ticker symbol “CURB” on the NYSE. Additional information about the Company is available at curbline.com. To be included in the Company’s e-mail distributions for press releases and other investor news, please click here.
Conference Call and Supplemental Information
The Company will hold its quarterly conference call today at 8:00 a.m. Eastern Time. To participate with access to the slide presentation, please visit the Investor Relations portion of Curbline’s website, ir.curbline.com, or for audio only, dial 800-715-9871 (U.S.) or 646-307-1963 (international) using pass code 6823859 at least ten minutes prior to the scheduled start of the call. The call will also be webcast and available in a listen-only mode on Curbline’s website at ir.curbline.com. If you are unable to participate during the live call, a replay of the conference call will also be available at ir.curbline.com for further review. You may also access the telephone replay by dialing 800-770-2030 or 609-800-9909 (international) using passcode 6823859 through May 5, 2026. Copies of the Company’s supplemental package and earnings slide presentation are available on the Company’s website.
Non-GAAP Measures and Other Operational Metrics
Funds from Operations (“FFO”) is a supplemental non-GAAP financial measure used as a standard in the real estate industry and is a widely accepted measure of REIT performance. The Company believes that both FFO and Operating FFO provide additional indicators of the financial performance of a REIT, more appropriately measure the core operations of the Company, and provide benchmarks to its peer group.
FFO is generally defined and calculated by the Company as net income attributable to Curbline (computed in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”)), adjusted to exclude (i) gains and losses from disposition of real estate property, which are presented net of taxes, (ii) impairment charges on real estate property, (iii) gains and losses from changes in control and (iv) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles net of depreciation allocated to non-controlling interests. The Company’s calculation of FFO is consistent with the definition of FFO provided by NAREIT. The Company calculates Operating FFO as FFO excluding certain non-operating charges, income and gains/losses. Operating FFO is useful to investors as the Company removes non-comparable charges, income and gains/losses to analyze the results of its operations and assess performance of the core operating real estate portfolio. Other real estate companies may calculate FFO and Operating FFO in a different manner.
In calculating the expected range for or amount of net income attributable to Curbline to estimate projected FFO and Operating FFO for future periods, the Company does not include a projection of gains and losses from the disposition of real estate property, potential impairments and reserves of real estate property, debt extinguishment costs and certain transaction costs. Other real estate companies may calculate expected FFO and Operating FFO in a different manner.
The Company also uses net operating income (“NOI”), a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses and excludes depreciation and amortization expense, interest income and expense and corporate level transactions. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis.
The Company presents NOI information herein on a same-property basis (“SPNOI”). The Company defines SPNOI as property revenues less property-related expenses, which excludes depreciation and amortization expense, interest income and expense and corporate level transactions, as well as straight-line rental income and reimbursements and expenses, lease termination income, management fee expense and fair market value of leases. SPNOI only includes assets owned for the entirety of both comparable periods. Other real estate companies may calculate NOI and SPNOI in a different manner. The Company believes SPNOI provides investors with additional information regarding the operating performance of comparable assets because it excludes certain non-cash and non-comparable items as noted above.
FFO, Operating FFO, NOI and SPNOI do not represent cash generated from operating activities in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should not be considered as alternatives to net income computed in accordance with GAAP, as indicators of the Company’s operating performance or as alternatives to cash flow as a measure of liquidity. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures have been provided herein.
The Company calculates Cash Leasing Spreads by comparing the prior tenant’s annual base rent in the final year of the prior lease to the executed tenant’s annual base rent in the first year of the executed lease. Straight-Lined Leasing Spreads are calculated by comparing the prior tenant’s average base rent over the prior lease term to the executed tenant’s average base rent over the term of the executed lease. For both Cash and Straight-Lined Leasing Spreads, the reported calculation excludes first generation units and spaces vacant at the time of acquisition and includes all leases for spaces vacant greater than twelve months along with split and combination deals.
Safe Harbor
Curbline Properties Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact, including statements regarding the Company’s projected operational and financial performance, strategy, prospects and plans, may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, changes in the economic performance and value of the Company’s properties as a result of broad economic and local conditions, such as inflation, interest rate volatility and market reaction to tariffs and other trade policies; changes in local conditions such as an increase or decrease in the supply of, or demand for, retail real estate space in our geographic markets; the impact of changes in consumer trends, distribution channels, suburban population, retailing practices and the space needs of tenants; our dependence on rental income which depends on the successful operations and financial condition of tenants, the loss of which, including as a result of store closures or bankruptcy, could result in significant occupancy loss and negatively impact rental income from our properties; our ability to enter into new leases and renew existing leases, in each case, on favorable terms; our ability to identify, acquire, construct or develop additional properties that produce the cash flows that we expect and may be limited by competitive pressures, and our ability to manage our growth effectively and capture the efficiencies of scale that we expect from expansion; potential environmental liabilities; our ability to secure debt and equity financing on commercially acceptable terms or at all; the illiquidity of real estate investments which could limit our ability to make changes to our portfolio to respond to economic or other conditions; property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from natural disasters, public health crises and weather-related factors in locations where we own properties, the ability to estimate accurately the amounts thereof and the sufficiency and timing of any insurance recovery payments related to such damages; any change in strategy; the effect of future offerings of debt and equity securities on the value of our common stock; any disruption, failure or breach of the networks or systems on which the Company relies, including as a result of cyber-attacks; impairment in the value of real estate property that we own; changes in tax laws impacting REITs and real estate in general, as well as our ability to maintain our REIT status; our ability to retain and attract key management personnel; and the finalization of the financial statements for the quarter ended March 31, 2026. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company’s most recent Annual Report on Form 10-K under “Item 1A. Risk Factors” and our subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
|
Curbline Properties Corp. |
||||
|
|
in thousands, except per share |
|
||
|
|
|
1Q26 |
|
1Q25 |
|
|
Revenues: |
|
|
|
|
|
Rental income (1) |
$57,671 |
|
$38,438 |
|
|
Other property revenues |
316 |
|
257 |
|
|
|
57,987 |
|
38,695 |
|
|
Expenses: |
|
|
|
|
|
Operating and maintenance |
7,808 |
|
5,402 |
|
|
Real estate taxes |
7,276 |
|
4,821 |
|
|
|
15,084 |
|
10,223 |
|
|
|
|
|
|
|
|
Net operating income |
42,903 |
|
28,472 |
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
Interest expense |
(7,888) |
|
(567) |
|
|
Interest income |
2,908 |
|
5,653 |
|
|
Depreciation and amortization |
(25,659) |
|
(14,463) |
|
|
General and administrative (2) |
(9,623) |
|
(8,928) |
|
|
Other income (expense), net (3) |
996 |
|
458 |
|
|
Gain on disposition of real estate, net |
0 |
|
42 |
|
|
Income before taxes |
3,637 |
|
10,667 |
|
|
Tax expense |
(69) |
|
(105) |
|
|
Net income |
3,568 |
|
10,562 |
|
|
Non-controlling interests |
(5) |
|
(12) |
|
|
Net income attributable to Curbline |
$3,563 |
|
$10,550 |
|
|
|
|
|
|
|
|
Weighted average shares – Basic – EPS |
105,085 |
|
104,912 |
|
|
Assumed conversion of diluted securities |
1,299 |
|
225 |
|
|
Weighted average shares – Diluted – EPS |
106,384 |
|
105,137 |
|
|
|
|
|
|
|
|
Earnings per share of common stock – Basic |
$0.03 |
|
$0.10 |
|
|
Earnings per share of common stock – Diluted |
$0.03 |
|
$0.10 |
|
|
|
|
|
|
|
(1) |
Rental income: |
|
|
|
|
|
Minimum rents |
$36,157 |
|
$23,229 |
|
|
Ground lease minimum rents |
3,865 |
|
3,204 |
|
|
Straight-line rent, net |
1,230 |
|
661 |
|
|
Amortization of (above)/below-market rent, net |
1,677 |
|
930 |
|
|
Percentage and overage rent |
134 |
|
93 |
|
|
Recoveries |
14,779 |
|
9,450 |
|
|
Uncollectible revenue |
(418) |
|
(219) |
|
|
Ancillary and other rental income |
247 |
|
236 |
|
|
Lease termination fees |
0 |
|
854 |
|
|
|
|
|
|
|
(2) |
SITE SSA gross up |
($1,763) |
|
($631) |
|
|
|
|
|
|
|
(3) |
Other income (expense), net: |
|
|
|
|
|
Transaction costs |
($767) |
|
($173) |
|
|
SITE SSA gross up |
1,763 |
|
631 |
|
Curbline Properties Corp. |
||||
|
|
in thousands, except per share |
|
||
|
|
|
1Q26 |
|
1Q25 |
|
|
Net income attributable to Curbline |
$3,563 |
|
$10,550 |
|
|
Depreciation and amortization of real estate, net of non-controlling interests |
25,617 |
|
14,446 |
|
|
Gain on disposition of real estate, net of non-controlling interests |
0 |
|
(42) |
|
|
FFO attributable to Curbline |
$29,180 |
|
$24,954 |
|
|
Transaction costs, net of non-controlling interests |
765 |
|
173 |
|
|
Operating FFO attributable to Curbline |
$29,945 |
|
$25,127 |
|
|
|
|
|
|
|
|
Weighted average shares & units – Basic: FFO & OFFO |
105,085 |
|
104,912 |
|
|
Assumed conversion of dilutive securities |
1,299 |
|
225 |
|
|
Weighted average shares & units – Diluted: FFO & OFFO |
106,384 |
|
105,137 |
|
|
|
|
|
|
|
|
FFO per share – Basic |
$0.28 |
|
$0.24 |
|
|
FFO per share – Diluted |
$0.27 |
|
$0.24 |
|
|
Operating FFO per share – Basic |
$0.28 |
|
$0.24 |
|
|
Operating FFO per share – Diluted |
$0.28 |
|
$0.24 |
|
|
|
|
|
|
|
|
Capital expenditures and certain non-cash items: |
|
|
|
|
|
Maintenance capital expenditures |
$381 |
|
$10 |
|
|
Tenant allowances and landlord work, net |
1,870 |
|
802 |
|
|
External leasing commissions, net |
453 |
|
479 |
|
|
Loan cost amortization |
(573) |
|
(253) |
|
|
Stock compensation expense |
(2,971) |
|
(3,594) |
|
Curbline Properties Corp. |
||||
|
|
$ in thousands |
|
|
|
|
|
|
|
||
|
|
|
1Q26 |
|
4Q25 |
|
|
Assets: |
|
|
|
|
|
Land |
$802,068 |
|
$759,267 |
|
|
Buildings |
1,389,994 |
|
1,304,288 |
|
|
Fixtures and tenant improvements |
111,983 |
|
107,013 |
|
|
|
2,304,045 |
|
2,170,568 |
|
|
Accumulated depreciation |
(223,132) |
|
(209,429) |
|
|
|
2,080,913 |
|
1,961,139 |
|
|
Construction in progress and land |
34,914 |
|
27,355 |
|
|
Real estate, net |
2,115,827 |
|
1,988,494 |
|
|
|
|
|
|
|
|
Cash |
305,778 |
|
289,553 |
|
|
Receivables and straight-line rents (1) |
24,156 |
|
22,514 |
|
|
Amounts receivable from SITE Centers |
15,930 |
|
21,457 |
|
|
Intangible assets, net (2) |
140,022 |
|
137,513 |
|
|
Other assets, net (3) |
19,386 |
|
10,259 |
|
|
Total Assets |
2,621,099 |
|
2,469,790 |
|
|
|
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
|
Revolving credit facilities |
0 |
|
0 |
|
|
Unsecured debt |
595,503 |
|
423,239 |
|
|
|
595,503 |
|
423,239 |
|
|
Dividends payable |
18,922 |
|
20,872 |
|
|
Other liabilities (4) |
107,407 |
|
112,209 |
|
|
Total Liabilities |
721,832 |
|
556,320 |
|
|
|
|
|
|
|
|
Common stock |
1,055 |
|
1,054 |
|
|
Paid-in capital |
1,956,479 |
|
1,958,845 |
|
|
Distributions in excess of net income |
(60,514) |
|
(46,100) |
|
|
Accumulated comprehensive loss |
(2,841) |
|
(4,606) |
|
|
Non-controlling interest |
5,088 |
|
4,277 |
|
|
Total Equity |
1,899,267 |
|
1,913,470 |
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
$2,621,099 |
|
$2,469,790 |
|
|
|
|
|
|
|
(1) |
Straight-line rents (including fixed CAM), net |
$15,175 |
|
$13,929 |
|
(2) |
Below-market leases (as lessee), net |
14,771 |
|
14,788 |
|
(3) |
Acquisition escrow deposits |
9,541 |
|
3,258 |
|
(4) |
Below-market leases, net |
67,689 |
|
66,698 |
|
Curbline Properties Corp. |
|||
|
$ in thousands |
|
|
|
|
|
1Q26 |
|
1Q25 |
|
GAAP Reconciliation: |
|
|
|
|
Net income attributable to Curbline |
$3,563 |
|
$10,550 |
|
Interest expense |
7,888 |
|
567 |
|
Interest income |
(2,908) |
|
(5,653) |
|
Depreciation and amortization |
25,659 |
|
14,463 |
|
General and administrative |
9,623 |
|
8,928 |
|
Other expense (income), net |
(996) |
|
(458) |
|
Gain on disposition of real estate, net |
0 |
|
(42) |
|
Tax expense |
69 |
|
105 |
|
Non-controlling interests |
5 |
|
12 |
|
Total Curbline NOI |
42,903 |
|
28,472 |
|
Less: Non-Same Property NOI |
(15,901) |
|
(2,705) |
|
Total Same-Property NOI |
$27,002 |
|
$25,767 |
|
|
|
|
|
|
Total Curbline NOI % Change |
50.7% |
|
|
|
Same-Property NOI % Change |
4.8% |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428030390/en/
(216) 755-6200
KEYWORDS: New York United States North America
INDUSTRY KEYWORDS: Retail Convenience Store Other Retail Commercial Building & Real Estate Construction & Property REIT
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