CURB

Image source: The Motley Fool. Tuesday, July 28, 2026 at 8:00 a.m. ET Chief Executive Officer - David Lukes Chief Financial Officer - Conor Fennerty VP of Capital Markets - Stephanie Ruys de Perez Need a quote from a Motley Fool analyst? Email [email protected] Operator: Hello, everyone. Thank you for joining us, and welcome to the Curbline Properties' Second Quarter 2026 Call. I will now hand the conference over to Stephanie Ruys de Perez, VP of Capital Markets. Stephanie, please go ahead. Stephanie Ruys de Perez: Thank you. Good morning, and welcome to Curbline Properties' Second Quarter 2026 Earnings Conference Call. Joining me today are Chief Executive Officer, David Lukes; and Chief Financial Officer, Conor Fennerty. In addition to the press release distributed this morning, we have posted our quarterly financial supplement and slide presentation on our website at curbline.com, which are intended to support our prepared remarks during today's call. Please be aware that certain of our statements today may contain forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from our forward-looking statements. Additional information may be found in our earnings press release and in our filings with the SEC, including our most recent reports on Forms 10-K and 10-Q. In addition, we will be discussing non-GAAP financial measures on today's call, including FFO, OFFO and same-property net operating income. Descriptions and reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in today's quarterly financial supplement and investor presentation. At this time, it is my pleasure to introduce our Chief Executive Officer, David Lukes. David Lukes: Thank you, Stephanie. Good morning, and welcome to Curbline Properties' second quarter conference call. Second quarter results highlight the strength of the platform that we have constructed in less than 2 years since our spin-off. We acquired $374 million of properties in the second quarter alone, and we have now acquired $564 million year-to-date. We raised almost $550 million of equity, including $350 million in our June offering. And importantly, we continue to see elevated demand for space with the vast majority of our SNO pipeline expected to commence over the next 3 quarters. These factors in aggregate are driving significant earnings growth with our raised guidance representing over 17% growth, which is among the highest in the sector. I'd like to thank everybody at Curbline for their contributions that have positioned the company for outperformance. We continue to lead in this unique capital-efficient sector with a clear first-mover advantage as the only public company exclusively focused on acquiring top-tier convenience real estate assets across the United States. I'll start with an overview of investment activity and shift to operational highlights before handing it off to Conor to walk through quarterly results, the 2026 guidance increase and the balance sheet in greater detail. Beginning with investments, as I mentioned, we've acquired over $560 million of real estate year-to-date and are raising our full year investment target to $1 billion of acquisitions from $850 million. I've spent no shortage of time previously discussing the drivers behind the acceleration in acquisition opportunities, and there's really no change as to what we are seeing today. First, it's a fragmented industry, and we have the largest team with an incredible network of relationships across the major metros of the country. Second, our reputation and track record are real assets as we look to expand our portfolio to almost 6 million square feet of convenience real estate. And third, the platform and scale that we've constructed allow us to be simply more efficient than local competition, and we continue to fine-tune our processes to underwrite better and close faster. And finally, fourth, opportunities continue to be boosted by what we believe to be the long-term tailwinds driven by a transfer of wealth and real estate to the next generation of owners, many of which who are seeking liquidity. The net result of each of these 4 factors is an increase in opportunities that meet our criteria: primary vehicular corridors, strong demographics, high traffic counts and creditworthy tenants, and importantly, are additive to our future growth rate. And it highlights the unique and significant addressable convenience market that provides an opportunity for us to scale our Curbline business. Moving to operations. We signed over 167,000 square feet of new leases and renewals this quarter. Trailing 12-month spreads remain consistent with our 5-year averages as the shortage of space in the affluent markets where we operate continue to lead to attractive leasing economics. We invest in simple, flexible buildings that are at the nexus of consumer behavior. These straightforward rows of shops can support a wide variety of uses, and this flexibility drives tenant demand from an extremely wide pool of tenants. The result for our portfolio is a highly diversified tenant base with only 7 tenants contributing more than 1% of base rent and only 1 tenant of more than 2%. We now have over 1,300 unique tenants in the portfolio, including over 500 unique national tenants, which represents approximately 70% of our base rent. To this point, all 15 of our new leases this quarter were with different tenants, including FedEx Office, Tropical Smoothie and a variety of other health and service users with a similar national mix as the overall portfolio. In terms of same-property growth, year-to-date growth of 2%, decelerated as we expected, with Conor providing more details on this later. But our capital expenditures also remain well below 10% of NOI, placing us among the most capital-efficient operators in the entire public REIT sector, an important hallmark of the convenience asset class. In summary, we remain incredibly optimistic about the opportunity ahead for Curbline as we exclusively focus on scaling the fragmented convenience real estate sector in an effort to deliver compelling, relative and absolute growth for stakeholders. And with that, I'll turn it over to Conor. Conor Fennerty: Thank you, David. I'll start with second quarter earnings and operating metrics before shifting to the company's revised 2026 guidance and then conclude with the balance sheet. Second quarter results were ahead of budget, largely due to higher NOI, driven in part by higher-than-forecasted occupancy and recoveries, along with higher-than-forecasted acquisition volume. NOI was up 12% sequentially and over 50% year-over-year, driven by acquisitions along with organic growth. Outside of the quarterly operational outperformance, there were no other material variances for the quarter, highlighting the simplicity of the Curbline income statement and business plan. You will note that in the second quarter, we recorded a gross up of $1.8 million of non-cash G&A expense, which was offset by $1.8 million of non-cash other income. This gross up, which is a product of the shared services agreement and nets to 0 net income, will continue as long as the agreement is in place and is excluded from any G&A figures or targets. In terms of operating metrics, the lease rate was up 20 basis points sequentially to 96.5% despite an almost 20 basis point headwind from acquisitions. Occupancy was also up sequentially to 94.3%, which represents the highest level for the portfolio since the spin-off. Leasing volume in the second quarter accelerated from the first quarter, driven by an uptick in renewals, though quarterly volumes and figures remain volatile given the lack of available space in the portfolio. As David noted, we remain encouraged by the amount of activity and depth of demand for available space. As expected, same-property NOI decelerated in the second quarter due to lower forecasted recovery revenue, which acted as a 260 basis point headwind. The second quarter also included $370,000 of expense related to storm damage at a property in North Carolina, which is an additional 100 basis point headwind. Pro forma for these same-property NOI growth would have been 3.1%. Yet despite these headwinds, same-property NOI was ahead of budget and base rent growth was up over 2.3%. Importantly, this growth was generated by limited capital expenditures with trailing 12-month CapEx of 8% of NOI. Moving to our outlook for 2026. We are increasing OFFO guidance to a range between $1.24 and $1.26 per share, which at the midpoint represents just over 17% growth. We believe that this level of growth will be the highest certainly in the retail space and among the highest in the entire REIT sector. Underpinning the midpoint of the range is $1 billion of full year investments, a roughly 3.5% return on cash with interest income declining over the course of the year as cash is invested, CapEx as a percentage of NOI of less than 10% and G&A of roughly $32 million, which includes fees paid to SITE Centers as part of the shared service agreement. Those fees totaled $1.2 million in the second quarter. In terms of same-property NOI, we continue to forecast growth of 3% at the midpoint in 2026, following 3.3% in 2025 and 5.8% in 2024. As I've noted previously, the same-property pool is growing but small, and it includes only assets owned for at least 12 months as of December 31, 2025, resulting in a large non-same-property pool, which we expect to grow at a similar rate to the same-property pool over the course of the year. That said, we expect a meaningful acceleration in base rent into the fourth quarter, driven by lease commencements with almost 90% of the SNO pipeline expected to commence by March 31 of next year and the entire pipeline to commence by the end of third quarter. The speed of the deliveries speaks to the simplicity of the buildings that we buy and operate and differentiates Curbline from other purpose-built retail formats. For moving pieces between the second and the third quarters, as a result of the timing of equity settlements in the second quarter, the quarter end share count was higher than the weighted average. Assuming no additional settlement activity, the third quarter share count would average about 114 million shares, which is a good starting point to layer on additional share settlements, which will be the primary funding source for second half acquisitions. Additionally, below-market revenue is expected to decline sequentially by about $300,000 due to the write-off of below-market leases in the second quarter. Finally, G&A is expected to total about $8 million in the third quarter and $32 million for the full year. Additional details on 2026 guidance and the moving pieces that I just outlined can be found on Page 10 of the earnings slides. Ending on the balance sheet, Curbline was spun off with a unique capital structure aligned with the company's business plan. In the second quarter and including the issue from the June offering, Curbline sold 18.1 million shares on a forward basis with $541 million of expected gross proceeds, which we expect to use to fund acquisitions. Including cash on hand at quarter end of $155 million, along with total unsettled equity proceeds of $696 million, Curbline has over $800 million of immediate liquidity available to fund the roughly $500 million of remaining investments included in guidance. The net result of the capital markets activity since formation as the company ended the quarter with a leverage ratio of approximately 20%, providing substantial dry powder and liquidity, continue to acquire assets and scale, resulting in significant earnings and cash flow growth well in excess of the REIT average. With that, I'll turn it back to David. David Lukes: Thank you, Conor. Operator, we are now ready to take questions. Operator: Your first question is from Ronald Kamdem with Morgan Stanley. Ronald Kamdem: Just starting with some of the KPIs. I think the occupancy, obviously, you gained occupancy despite sort of the drag from the acquisitions you mentioned. I'd just love to hear what you think, how much more upside of occupancy there is? And then on the same-store front, I'm just wondering if the deceleration was maybe a little bit greater than anticipated? And is this sort of 3% the right run rate we should think about going forward? Conor Fennerty: Sure, Ron. It's Conor. I'll go in reverse order. So our budget for the quarter was for a 100 basis point decline in same property. And so we outperformed that. And so in a worst-case scenario, it was in line with our expectations. But to my comments, we were better than expected. We've talked about this ad nauseam. Our same-property pool is larger than it was last year, but still pretty small relative to the asset base. So it's going to lead to a lot of volatility in operating metrics, which I called out on a number of occasions. So we reported 4.8% growth in the first quarter. Obviously, to your point, a deceleration in the second quarter. And then we're expecting a pretty large acceleration in the back half of the year, just given the SNO pipeline that both David and I mentioned and the timing of commencements into the back half of the year. So as I mentioned, the 2 other call-outs, the same property pool is only about 56% of NOI in the second quarter. So you have a significant piece of the company that's not captured. And then the second piece is CapEx percentage NOI remains well below 10%. So the capital needed to generate that 3% plus growth over the course of the year is about 1/3 of other retail companies. We've said again on other calls that we think this is a 2.5% to 4% business. Just given the supply-demand imbalance today, it's probably closer to 4%. And again, there's no change to our expectations for growth over the course of the year. And then just help me, remind me on the first question, excuse me. Ronald Kamdem: Just on the occupancy upside in the portfolio. David Lukes: Ron, it's David. I would say part of the challenge of that question is that it really depends on what we're acquiring. Sometimes we're acquiring with vacancy and that would have a negative impact as it did this quarter. In other cases, we're acquiring assets where we might want to replace a tenant. I would say that I would point you to Page 13 of our supplemental, you'll note that the relationship between new leases versus renewals is 4:1. So there's 4x as many renewals as there are new leases. And this is generally renewals business. So I would say as long as the economy is strong, I would expect that occupancy is going to stay at the higher end over the course of time, which I would put as a traditional 97% or so. But it really depends on when we select to replace tenants as opposed to renew them. Ronald Kamdem: If I could just sneak in my -- a follow-up. Just on the acquisitions, obviously, pretty impressive volumes here. Would just love to hear what you guys are seeing in terms of cap rate and return expectations for this vintage of acquisitions versus maybe 12 to 24 months ago. David Lukes: Well, as of where we sit today with the pipeline of $1 billion expected to purchase this year, the cap rates are still hanging in the low 6s. As I've said on previous calls, just bear in mind that the assets that we're buying are somewhat small, which means that the internal growth rate of those assets can have a pretty big impact on going in cap rates. So we bought assets in the low 5s, and we bought assets in the high 6s, and it really depends on occupancy levels, mark-to-market. I would say the better way to look at this asset class is unlevered IRR, which are around an 8. And I think for us, that's a pretty attractive trade for that type of unlevered IRR given the fact that most of that IRR is coming from cash flow simply because of the low CapEx profile. Operator: Your next question is from the line of Craig Mailman with Citigroup. Craig Mailman: Can you hear me, guys? David Lukes: Yes, thanks, Craig. Good morning. Craig Mailman: Sorry, the operator keeps throwing me off. Following up a little bit on Ron's question and maybe asking it in a different way. I know you guys don't give quarterly guidance, but just given the ramp in 2Q acquisitions and a little bit of the drag you saw in occupancy from this crop and you kind of bought 1/3 of it towards the end of the quarter. I know you guys don't give quarterly guidance, but could you help us think a little bit about the net benefit that should accrue to 3Q sequentially from these acquisitions kind of offset by, Conor, your commentary on where the share count could be just to give us, I know that we always talk about low 6 caps, but there is that range in there. I don't know if there's some kind of goalpost you can give to help us out. Conor Fennerty: Craig, it's Conor. Just a couple of things. I don't want to make a mountain out of a molehill about the lease rate and the occupancy of what we acquired. Our portfolio is 96.5% leased and the assets we bought had a lease rate in the 95s. So it's not like we're buying stuff in the 70s or 60%. There's a huge lease-up. It just happened to be modestly dilutive to our overall portfolio lease rate. We give the timing of each acquisition to kind of the genesis of your question in the sup to help with the cadence. But if you use effectively a low 6 cap rate on that -- on those assets that were acquired in the second quarter, you'll get to a really good run rate for the third quarter in terms of kind of an apples-and-apples comparison. And then as you think about the cadence over the course of the year for remaining acquisitions, there's about $0.5 billion left to hit our target. If you assume roughly a 50-50 split over the course of those 2 quarters and with a similar level of funding or settlement timing, you should get to a really good spot in terms of the guidance range and how we're thinking about the business for the course of the year. Craig Mailman: And then as we just think about the opportunity set, I mean, you guys are now at almost double what you initially thought you could do when you spun off from an annual acquisition pace this year. Just -- can you just talk about what you -- if this level is sustainable, for how long you think it's sustainable before you get institutional competition and how you guys are now staffed to either handle this or how much more you could kind of do in a year without having to hire more people? David Lukes: Sure, Craig. It's David. I'll give that a shot. As you know, our initial expectations when we spun out was to do $500 million of acquisitions in the first year. We ended up the first year way above that in the kind of $780 million range. I would note that there were 3 kind of small- to medium-sized portfolios within that first year. Portfolios in this business tend to be episodic. I don't think that they're something that can be counted on in kind of like a normal quarterly run. So if you look at that first year, our acquisitions of one-off assets were around $550 million. As we sit here today in the second year, we've got a target of $1 billion, and that is exclusively one-off acquisitions. So what's happening, I think there are a couple of factors. #1, there is definitely a transitioning of generational real estate to the next buyers. And that either happens through resolving estates or as we've seen in the last 6 months, and I think I mentioned on the last call, we've seen a lot more sellers that are seeking liquidity to plan for their estates. And to us, that's a very good sign that deal activity seems more likely to increase than decrease over the next decade. In terms of the total addressable market, even where we stand today, having effectively doubled the size of the portfolio, we're still about 60 basis points of the total U.S. inventory of this asset class. So I do feel like there's a very credible long-term runway. The second component that I would say is unique, and I've mentioned this in the prepared remarks a number of times is that we have been trying to find every avenue and sleeve we can to unlock more inventory in this country. If you've got a business you like and you're only 60 basis points, it's our job to figure out how to attack those sleeves. We've done that from cold calling from mass mailers, from wealth advisers, from accounting firms and law firms. We've driven up and down streets and knock on doors. At this point today, John has a team that is working on acquisitions in some form, whether it's diligence, sourcing or legal. We've got a 26-person department. That size of a transactions team is far larger than any other institution or non-institution in this country. So I think we're just able to get at more of the deal flow. And I personally have a pretty high confidence that will continue for years to come. Conor Fennerty: And in terms of G&A, Craig, we talked about at the time of the spin-off that we thought we could be as efficient as SITE Centers. And if you recall SITE, the way we look at it, SITE's G&A as a percentage of GAV was about 1.1%. We have since updated that framework to say we think Curb can be materially more efficient. And that's despite David's point -- to David's point, adding some folks and adding some more headcount, but we're just starting to scale our G&A load, and that's obviously starting to fall to the bottom line and leading to pretty significant FFO growth. So on the G&A front, you're right, we are adding some more folks. But in terms of the, I would say, significant fixed expense items, those are already in place, which again is allowing us to really scale our G&A, drive free cash flow and drive pretty significant earnings growth. Craig Mailman: If I could slip a third in. Are you guys -- how do you guys think about as your 500 of your 1,300 tenants are national? Are you guys close to or going to think about this as an avenue of kind of like a national accounts group now that you have, I would assume, one of the biggest, if not the biggest, non-anchored strip portfolios in the country? Like how are you guys thinking about organizing to maximize the benefits from having the scale to drive up rents or occupancy or improve tenancy? David Lukes: It's a really interesting point, Craig. I really think it's prescient given, you're right, we're suddenly on the map for a lot of tenants that we weren't on the map a year ago. In fact, I'm not sure the sector was really on the map a year or 2 ago. But this first started to come up in Vegas this year at the ICSC conference. A lot of the tenants are looking for growth. And if we're buying assets that have a 2/3 to 1/3 national to local, the nationals can generate more 4-wall EBITDA from this real estate than the locals. And therefore, I think a lot of the nationals are seeing an opportunity to replace local tenants with national tenants. And so they started to get a lot more aggressive at Vegas with approaching us about how they can work with us on a portfolio basis. So I do agree with you that's an interesting avenue, especially given the fact that we're targeting high-traffic intersections and high-end demographics, which is where a lot of the national chains want to be. So I would say it's an open question. It's a really, really good point. And you'll probably get a lot more commentary on us over the course of the year as we develop those relationships and figure out how it's best to serve those tenants. Operator: Your next question is from the line of Todd Thomas with KeyBanc Capital Markets. Todd Thomas: First, I just wanted to follow up on the discussion around cap rates and IRRs. I was just wondering, I guess, first is, it doesn't sound like it necessarily, but is the recent rise in the 10-year treasury having any impact on more recent price discussions that you're having? And then is Curb changing its underwriting hurdles at all in the current environment, just given the improvement in the company's cost of capital? Or has anything changed at all for the company's investment efforts as a result? David Lukes: Yes, I wish I could say that the industry reacts very quickly to borrowing costs. It just seems like unlevered IRRs are probably the more dominant approach from even the competition that we have locally, even though a lot of them use debt. So I don't really think the cap rates have changed in the last couple of months. We're still seeing the same range. The averages have been about the same. In terms of our own underwriting, I would say that given the fact that we're looking at unlevered IRRs, a lot of that IRR is dependent on the mark-to-market and what we think market rents are growing at. And I think we're pretty conservative on both factors. And so I just don't think we've seen the need yet to kind of reconsider our underwriting assumptions. Todd Thomas: And then Conor, in terms of scaling the platform and some of the commentary around G&A, can you just provide an update on the shared service agreement with SITE Centers, just given where we are in the year today, late July, what the latest is with regard to the agreement? And also the impact that we should be considering for G&A after taking into account the gross-ups, which you've talked about the net out, but also the fees paid to SITE Center and how we should start to think about that as we focus on 2027? Conor Fennerty: Sure. So Todd, SITE, as you know, had the onetime option to terminate the SSA by June 30, and they did not exercise that option. So as a result, absent the negotiation between the 2 parties, the SSA would remain in place through the full length of the agreement, which is October 1 of next year. If you recall, our budget for this year assumes status quo. So there's no impact to our budget or G&A this year. As it relates to 2027, obviously, as we get closer and provide guidance, we can give some more updates there. But we do have the pieces for you in our stuff and in our slides in terms of the breakout between the fee paid to SITE, which is $1.2 million this quarter and what I will call our core or other G&A, which is obviously just expenses related to Curbline. So as we grow, that fee paid to SITE will grow. But if you recall, the structure of the SSA was that and the fees paid were meant to mirror the cost of the folks that -- the services that SITE are providing. So in layman's terms or just to put it bluntly, we're not expecting material change to G&A once the SSA expires, whether that's today or whether that's over a year from now. So status quo for this year. But again, just given how we structured the agreement, there's no expected material change to G&A when that agreement does expire. Operator: Your next question is from the line of Floris Van Dijkum with Ladenburg. Floris Gerbrand Van Dijkum: I love the simplicity of your business, which I suspect a lot of the investors on the call probably do as well. I had a couple of questions. The Sunbelt clearly is the biggest part of your portfolio with over 70% of your ABR coming from those markets. How do you think about growing in other key markets going forward? And I think I looked briefly at your slide, I think you have only like 2 or 3 assets in the New York Metro area, one in New Jersey, one in Long Island as far as I could tell. Do you not see the opportunity to acquire there? Or are cap rates lower? Or is there more competition? And if you can maybe talk a little bit about, did you -- obviously, you have a huge amount of assets in Atlanta. Is it just easier to acquire in markets like that because you already have a big presence? Maybe if you can talk a little bit about your acquisition strategy and how do you expand into other key markets across the country, please? David Lukes: Sure. Floris, it's David. I would say that we spent a lot of time together over the past number of years. I think you know that when we spun out Curbline, it certainly had a base portfolio that did have quite a few assets in the Southeast as well as the Southwest. So if that was our departure point, we came with a concentration in those 2 markets, and we also came with a number of relationships that were long-standing in those areas. As we've grown over the past 18 or 20 months, we certainly have started to develop more relationships and get more deals done in the mountain states, Denver, in particular, the Pacific Northwest and the Midwest. So I think it's less of a desire to be concentrated. I think our desire is the opposite. We like to be as distributed as we can amongst the top 30 MSAs as long as it meets our hurdles of traffic and primary corridors and strong demographics. The laggards have definitely been the Northeast corridor. Part of that is just because this real estate is generationally owned. A lot of people have a very low basis, and it's just going to take time to start to penetrate some of these older markets. I would say the same thing about the Pacific Northwest. That's also been an area that's been a little bit more difficult to ramp up. But if you fast forward a number of years, I think we've proven that we're willing to allocate resources to build those relationships. We're starting to make a dent. And once we get into a market, I do think that buying deals in markets prompts a lot more deals to come. So I would expect that math is going to look a lot different in the next couple of years. Floris Gerbrand Van Dijkum: And maybe my follow-up, David, as you think about OP units, do you expect that those will become more prevalent, particularly as you talk about these generational and tax issues going forward? I note that one of your peers who's been public for quite a while, used -- did its first OP unit deal recently in Long Island. Do you think you're going to be more prevalent in using those to source and complete acquisitions going forward? David Lukes: Well, that certainly is an open question. I mean, given how little the entire industry has used of OP units in the last decade or so, I think there's a reason for that. We certainly understand that from our perspective and from the seller's perspective, the math is better on an after-tax basis for using OP units. But it doesn't necessarily mean that the seller ends up wanting that type of tax-deferred structure. In many cases, you're talking about resolving an estate where there's a couple of different heirs. There's other methods such as 1031 when people are planning. So we certainly love the structure. We think it makes sense for both parties, but it's not easy to get them across the finish line. I would expect it will be more than 0, but I don't really anticipate it to be a dramatic change from what you've been seeing in the last decade. Operator: Your next question is from the line of Alexander Goldfarb with Piper Sandler. Alexander Goldfarb: David, just 2 follow-up questions. The first, just going back to the size and scale of the platform, the G&A comments that Conor mentioned on efficiency, could you argue that perhaps you need more people if you're knocking sort of at every country club, every dentist office, every wealth management, et cetera, across the country, would that require more people sort of like a sales force that has to be out there pounding the pavement for each individual deal? I'm just trying to understand how the platform can be more efficient if the deals individually are a lot smaller and you have to tease them out sort of one at a time. David Lukes: Well, you're right. Alex, you certainly could make the argument that more people generates more deal flow. I think where we believe that's true, we have added people. Where we believe it's not true, we've tried other methods to unlock inventory. So I mean, I guess if I just look back on the fact that we initially expected $500 million a year, and now we're at $1 billion this year, I don't want to be too negative on the fact that the team has grown and the team has produced pretty well. So we're being careful with our G&A, but we certainly recognize we're willing to allocate G&A towards growing the business where we see an opportunity to do so. Conor Fennerty: And Alex, to your point, does more people necessitate a higher G&A run rate? And the answer is, in certain departments, yes, as David alluded to, transactions. But to Floris' point, this business is so simple in all the other facets that we are more efficient on that front or in those departments. So again, you're running a little bit higher headcount to your point on sourcing deals. But everywhere else, we don't have a captive. We don't have all the other kind of bells and whistles, which we think are administrative burden and a G&A burden. And so we prefer to operate pretty simply in our departments, which is a huge benefit to G&A. Alexander Goldfarb: And then the second question is on tenant diversity. I hear your point that your portfolio is on the radar of more national tenants. But isn't there an argument that sort of local tenants or small regional tenants provide that sort of pizzazz that makes people want to go to your center versus the one across the street. And therefore, there's sort of a mix that will always bias perhaps more local tenants relative to how many nationals that you could put in? I'm just thinking, especially when you have like new concepts that are on the rise, those often start out as local or small regionals. And I would just think that's what creates a differentiating standpoint as you think about your 2/3, 1/3 mix. David Lukes: Yes. Certain pieces of that, I would agree with, but there's other -- I guess there's other pieces of what we were talking about, which are more of a choice, an asset management choice. So let's unpack it a little bit. The industry, I think, is fairly consistently 70-30, in that range. Is it 65? Is it 75? I think that level of change over time is the question mark. I don't think it's ever going to get to 90-10. And part of the reason, you're right, is that there are in every local community, certain tenants that are long-standing, can generate enough revenue to support rents and are worthy of being in our property. So I don't ever think we're going to be at a point where we're trying to force 100% nationals. We do spend a significant amount of time on creditworthiness. So our local tenants go through a pretty robust analysis on their credit and their ability to pay and their business history. And there are a lot of small businesses in the country that have that high credit and high probability of retention over time. So I'd agree with you, the local tenants are important. I guess I would diverge a little bit about the comment of unique tenants that draw customers who want to be at your property. That to me, is a philosophy that's more aligned with lifestyle, where you have a destination property and you're trying to get unique and differentiated tenants to kind of attract tenants to come to your properties. Our asset class and what we've been trying to buy are very simple rows of shops on vehicular corridors where it's more running errands. I mean we know that the customers on average spend less than 7 minutes on our asset. They're not coming to cross shop and they're not necessarily coming because of a unique tenant. They're coming because it's convenient. And so our job as asset managers is to generate as much rent as we can from the best credit for people that want that access to those many, many customers traveling, 40,000 cars a day along that road. Operator: Your next question is from the line of Mike Mueller with JPMorgan. Michael Mueller: Conor, you clearly have a lot of unsettled equity to tap today. But on a go-forward basis, how are you thinking about the equity debt mix for acquisition funding? Conor Fennerty: Mike, it's a great question. So to your point, we have just under $900 million of either cash, unsettled equity, free cash flow over the course of the year, and that's offset by use to satisfy the rest of our pipeline of about $500 million. So we expect to end the year with, call it, round numbers, $350 million, $375 million of cash, assuming no changes in the investment cadence. So it does feel like, Mike, for the next 6-plus months, we've got all the equity needed on hand or cash needed on hand. And from there, I think it's likely -- you'll likely see us look to the private placement market. We obviously were pretty active on the equity front and operate with a lower debt-to-equity mix of call it kind of low 20s. But just going forward, if you think back to our original base case, we had assumed 100% debt, and we retain that capacity depending on the best pricing at the time. So it's a long-winded circuitous way of saying TBD and when we get to next year, but we've got significant leverage capacity if for whatever reason we decide to go down that path. Michael Mueller: And then what are you seeing today for acquisition pricing if we're looking at just one-off transactions versus buying a larger pool of comparable properties? I mean is there a significant portfolio premium or is it actually smaller here because of how intensive the product is? Conor Fennerty: I can start and just the rest of our pipeline, which is 100% spoken for, we've got $1 billion over the course of the year. Those are all one-offs, Mike. So when we're speaking about this low 6 cap rate, that is what we're referring to on an individual basis, and I'll defer to David on the portfolio. David Lukes: Yes. I think, Mike, the portfolios we're talking about in this asset class tend to be not that large. In many cases, if we find an owner that has a number of properties, we might only want a portion of them. So I think, honestly, the portfolios that we have bought in the past were simply the sum of each individual asset's value. I don't think there's really a premium or a discount for the larger portfolio size. Operator: We have reached the end of the Q&A session. I will now turn the call back to David Lukes, CEO, for closing remarks. David, please go ahead. David Lukes: Thank you all for your time, and we look forward to speaking to you next quarter. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Curbline Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Curbline Properties wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!* Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 28, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Curbline Properties (CURB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

NEW YORK, July 28, 2026--(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 June 30, 2026. For the six months ended June 30, 2026, net income attributable to Curbline was $10.5 million, or $0.10 per diluted share, as compared to net income of $20.9 million, or $0.20 per diluted share, in the year-ago period. "Curbline’s second quarter results highlight the strength of the platform that we have constructed with record investment volume of $375 million, over $500 million of capital raised, and an uptick in leasing volume with the vast majority of the Company’s SNO pipeline expected to commence rent payment by March 2027. Curbline is again raising its full year investment target and OFFO guidance range given the significant outperformance to date with all cash and capital commitments needed to fund the revised investment pipeline on hand," 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 Second Quarter Second quarter net income attributable to Curbline was $6.9 million, or $0.06 per diluted share, as compared to net income of $10.4 million, or $0.10 per diluted share, in the year-ago period. The decrease year-over-year was primarily due to an increase in interest expense and in depreciation and amortization expense, partially offset by the net impact of asset acquisitions. Second quarter operating funds from operations attributable to Curbline ("Operating FFO" or "OFFO") was $33.3 million, or $0.31 per diluted share, compared to $26.9 million, or $0.26 per diluted share, in the year-ago period. The increase year-over-year was primarily due to the net impact of asset acquisitions, partially offset by an increase in interest expense and a higher weighted-average share count resulting from shares issued to fund acquisitions. Significant Second Quarter Activity and Recent Activity During the second quarter, acquired 30 convenience shopping centers for an aggregate purchase price of $374.1 million. During the second quarter, sold 6.6 million shares of common stock on a forward basis under its at-the-market equity offering program for expected gross proceeds of $186.5 million before issuance costs. In June, conducted an offering of 11.5 million shares of common stock on a forward basis generating expected gross proceeds of $354.8 million before issuance costs. During the second quarter, settled 8.4 million shares of common stock that were sold on a forward basis generating net proceeds of $199.8 million. In June, issued the Company's 2025 Corporate Sustainability Report marking both the first report as a standalone public company and Curbline’s first full year of sustainability reporting. The report was completed in alignment with the Task Force on Climate Related Financial Disclosure and can be found at (https://curbline.com/our-story#sustainability). As of June 30, 2026, adjusted for forward equity sales completed year to date, the Company had $850.9 million of cash and capital commitments for future acquisitions, including $154.7 million of cash and $696.2 million of expected gross proceeds from unsettled forward equity sales. In the third quarter to date, acquired four convenience shopping centers for an aggregate purchase price of $47.1 million. Significant Year to Date 2026 Activity Year to date, acquired 48 convenience shopping centers for an aggregate purchase price of $563.7 million. Year to date, sold 29.3 million shares of common stock on a forward basis in follow-on public offerings and under its at-the-market equity offering program, generating expected gross proceeds of $823.5 million before issuance costs. Key Quarterly Operating Results Reported an increase of 2.1% in same-property net operating income ("SPNOI") for the six-month period ended June 30, 2026 compared to June 30, 2025. Generated cash new leasing spreads of 20.2% and cash renewal leasing spreads of 7.4%, for the trailing twelve-month period ended June 30, 2026 and cash new leasing spreads of 8.2% and cash renewal leasing spreads of 8.6% for the second quarter of 2026. Generated straight-lined new leasing spreads of 35.7% and straight-lined renewal leasing spreads of 17.1%, for the trailing twelve-month period ended June 30, 2026 and straight-lined new leasing spreads of 27.1% and straight-lined renewal leasing spreads of 18.1% for the second quarter of 2026. Reported a leased rate of 96.5% at June 30, 2026 compared to 96.1% at June 30, 2025 and 96.7% at December 31, 2025. The sequential increase was due to an acceleration in net leasing activity, partially offset by an approximately 20 basis point impact from acquisitions. As of June 30, 2026, the Signed Not Opened spread was 220 basis points, representing $7.6 million of annualized base rent. 2026 Guidance The Company has updated its guidance for net income attributable to Curbline for 2026 to be from $0.27 to $0.32 per diluted share and Operating FFO to be from $1.24 to $1.26 per diluted share. 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: 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 833-461-5787 (U.S.) or 626-884-3620 (international) using meeting ID 341781138 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 future review through July 28, 2027. 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 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, which 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 June 30, 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.Income Statement Curbline Properties Corp.Reconciliation: Net Income to FFO and Operating FFO and Other Financial Information Curbline Properties Corp.Balance Sheet Curbline Properties Corp.Reconciliation of Net Income Attributable to Curbline to Same-Property NOI View source version on businesswire.com: https://www.businesswire.com/news/home/20260728275237/en/ Contacts (216) 755-6200.

This article first appeared on GuruFocus. Property Acquisitions: $374 million in Q2; $564 million year-to-date. Equity Raised: $550 million, including $350 million in June offering. NOI Growth: Up 12% sequentially and over 50% year-over-year. Lease Rate: Increased by 20 basis points to 96.5%. Occupancy Rate: Increased to 94.3%, highest since spin-off. Same-Property NOI Growth: 2% year-to-date; pro forma growth would have been 3.1%. Capital Expenditures: Trailing 12-month CapEx at 8% of NOI. OFFO Guidance: Increased to $1.24-$1.26 per share, representing over 17% growth. 2026 Investment Target: Raised to $1 billion from $850 million. Liquidity: Over $800 million available for investments. Leverage Ratio: Approximately 20%. Warning! GuruFocus has detected 5 Warning Sign with CURB. Is CURB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Curbline Properties Corp (NYSE:CURB) acquired $374 million of properties in the second quarter, contributing to a year-to-date total of $564 million. The company raised almost $550 million of equity, including $350 million in a June offering, enhancing its financial flexibility. CURB's raised guidance represents over 17% growth, which is among the highest in the sector. The company signed over 167,000 square feet of new leases and renewals this quarter, maintaining strong leasing activity. CURB's portfolio is highly diversified with over 1,300 unique tenants, including over 500 unique national tenants, representing approximately 70% of base rent. Same property net operating income (NOI) growth decelerated to 2% year-to-date, with expectations of further deceleration. The second quarter included $370,000 of expense related to storm damage at a property in North Carolina, impacting financial performance. The lease rate was modestly dilutive to the overall portfolio due to acquisitions with slightly lower occupancy rates. There is a significant portion of the company's portfolio not captured in the same property pool, leading to volatility in operating metrics. The company faces challenges in expanding into the Northeast Corridor and Pacific Northwest due to generational ownership and low basis of real estate. Q: Can you provide insights on the occupancy upside and the deceleration in same-store growth? A: Conor Fennerty, CFO: We outperformed our budget for the quarter despite a 100 basis point decline in same property. The same property pool is small, leading to volatility in metrics. We expect a large acceleration in the back half of the year due to the S&O pipeline. Occupancy is expected to remain high, around 97%, depending on tenant replacement decisions. David Lukes, CEO: The occupancy will depend on acquisitions and tenant replacements. We expect it to stay high as long as the economy is strong. Q: What are you seeing in terms of cap rates and return expectations for recent acquisitions? A: David Lukes, CEO: The cap rates are in the low 6s, with assets bought in the low 5s to high 6s depending on occupancy and market conditions. We focus on unlevered IRR, which is around 8%, driven by cash flow due to low CapEx. Q: How sustainable is the current acquisition pace, and how are you staffed to handle it? A: David Lukes, CEO: We initially targeted $500 million in acquisitions but are now aiming for $1 billion, driven by generational real estate transitions and liquidity needs. We have a 26-person team, the largest in the sector, to handle acquisitions. We believe there's a long-term runway for growth. Q: Is the rise in the 10-year treasury affecting acquisition pricing, and are you changing underwriting hurdles? A: David Lukes, CEO: Cap rates haven't changed significantly despite borrowing cost increases. We focus on unlevered IRRs and are conservative with market rent growth assumptions, so no changes to underwriting hurdles are needed. Q: How do you plan to expand into other key markets, particularly in the Northeast and Pacific Northwest? A: David Lukes, CEO: We aim to be distributed among the top 30 MSAs, focusing on traffic, corridors, and demographics. The Northeast and Pacific Northwest are challenging due to generational ownership, but we are building relationships and expect to expand in these areas over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Curbline Properties Corp.? Here are five stocks we like better. Curbline raised its 2026 acquisition target to $1 billion from $850 million after acquiring $374 million of properties in the second quarter and $564 million year to date. Operating performance exceeded budget, with occupancy reaching a post-spinoff high of 94.3% and lease rates rising to 96.5%. The company maintained its 3% midpoint outlook for 2026 same-property NOI growth. Curbline increased 2026 operating funds from operations guidance to $1.24–$1.26 per share, while maintaining strong liquidity of more than $800 million and low leverage of approximately 20%. Curbline Properties (NYSE:CURB) raised its 2026 acquisition target and adjusted funds from operations outlook after reporting second-quarter results that management said exceeded its budget, supported by higher occupancy, recoveries and acquisition volume. Chief Executive Officer David Lukes said the convenience-focused real estate investment trust acquired $374 million of properties during the second quarter and $564 million year to date. The company increased its full-year acquisition target to $1 billion from $850 million. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit “We continue to lead in this unique capital efficient sector with a clear first-mover advantage as the only public company exclusively focused on acquiring top-tier convenience real estate assets across the U.S.,” Lukes said. Lukes said the company’s investment pipeline is supported by a fragmented ownership base, its network of relationships in major metropolitan markets, the scale of its platform and what it views as a long-term transfer of real estate ownership to a new generation of owners seeking liquidity. → This Tiny AI Supplier Could Be More Important Than the Chipmakers The company targets properties along primary vehicle corridors with strong demographics, high traffic counts and creditworthy tenants. Curbline is approaching 6 million square feet of convenience real estate, according to Lukes. During the question-and-answer session, Lukes said current acquisition cap rates remain in the low-6% range for the company’s expected $1 billion of purchases in 2026. He said cap rates can vary from the low-5% range to the high-6% range depending on occupancy and mark-to-market potential. He described unlevered internal rates of return of around 8% as a more useful measure for the asset class. → 2 Stocks Built to Thrive If Inflation Refuses to Fade The company’s 2026 acquisition pipeline is made up entirely of one-off transactions, Chief Financial Officer Conor Fennerty said. Lukes added that portfolios in the sector tend to be relatively small and that Curbline generally values portfolio purchases as the sum of the individual assets rather than applying a portfolio premium or discount. Curbline signed more than 167,000 square feet of new leases and renewals during the quarter. Its lease rate increased 20 basis points sequentially to 96.5%, despite acquisitions creating an approximately 20-basis-point headwind. Occupancy rose to 94.3%, the highest level since the company’s spinoff, Fennerty said. The portfolio has more than 1,300 distinct tenants, including more than 500 national tenants that account for roughly 70% of base rent. Only seven tenants account for more than 1% of base rent, and only one represents more than 2%, Lukes said. All 15 new leases signed in the quarter involved different tenants, including FedEx Office and Tropical Smoothie, along with health and service businesses. Lukes said the company’s properties are designed as flexible rows of shops that can accommodate a broad range of uses and tenant types. Responding to questions about occupancy potential, Lukes said occupancy should remain at the higher end of the company’s range, which he characterized as approximately 97%, as long as economic conditions remain healthy. However, he noted that occupancy can be affected by whether acquired properties have vacancies or whether Curbline elects to replace existing tenants. Second-quarter net operating income rose 12% sequentially and more than 50% from a year earlier, driven by acquisitions and organic growth, Fennerty said. The company’s results were ahead of budget, he said, due largely to higher NOI from stronger-than-expected occupancy and recoveries as well as greater acquisition volume. Same-property NOI growth decelerated during the second quarter, as expected. Lower recovery revenue represented a 260-basis-point headwind, while $370,000 of storm-related expenses at a North Carolina property added another 100-basis-point headwind. Excluding those items, same-property NOI growth would have been 3.1%, according to Fennerty. Base rent growth was more than 2.3%. Fennerty said the company continues to expect 3% same-property NOI growth at the midpoint of its 2026 outlook, following growth of 3.3% in 2025 and 5.8% in 2024. He said the same-property pool represented only about 56% of second-quarter NOI and can create volatility in reported operating metrics. The company expects base-rent growth to accelerate meaningfully in the fourth quarter as leases in its signed-not-open pipeline begin to commence. Almost 90% of that pipeline is expected to commence by March 31 of next year, with the entire pipeline expected to begin by the end of the third quarter of next year. Curbline raised its 2026 operating funds from operations guidance to $1.24 to $1.26 per share. At the midpoint, the outlook represents growth of just over 17%, Fennerty said. The guidance assumes $1 billion in investments, roughly a 3.5% return on cash, capital expenditures of less than 10% of NOI and approximately $32 million in general and administrative expense. Curbline raised nearly $550 million in equity during the second quarter, including a June offering. The company sold 18.1 million shares on a forward basis during the quarter, including shares related to the June offering, for expected gross proceeds of $541 million. At quarter-end, Curbline had $155 million of cash and $696 million of unsettled equity proceeds. Fennerty said the company had more than $800 million of immediate liquidity available to fund about $500 million of remaining investments included in its guidance. The company ended the quarter with a leverage ratio of approximately 20%. Fennerty said Curbline expects to have sufficient equity and cash available for at least the next six months and could consider the private-placement market thereafter. He said the company retains debt capacity, while the eventual funding mix will depend on market pricing. Fennerty also said SITE Centers did not exercise its one-time option to terminate the companies’ shared-services agreement by June 30. Unless the parties negotiate a change, the agreement will remain in effect through Oct. 1, 2027. Curbline paid SITE Centers $1.2 million in fees during the second quarter, and management said it does not expect a material change in G&A when the agreement expires. Curbline Properties Corp. is a real estate investment trust which is an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban. Curbline Properties Corp. is based in NEW YORK. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Curbline Properties Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance outperformance was driven by a significant acceleration in acquisition volume, totaling $374 million in Q2 alone, supported by a fragmented market and a first-mover advantage. Management attributes the increased deal flow to a generational transfer of wealth, where private owners are seeking liquidity for estate planning purposes. Operational strength is underpinned by a highly diversified tenant base where only one tenant contributes more than 2% of base rent, mitigating individual tenant risk. The portfolio's focus on 'vehicular corridors' and 'errand-based' shopping drives high demand from national tenants who can generate higher 4-wall EBITDA than local operators. Strategic positioning as a capital-efficient operator is highlighted by capital expenditures remaining below 10% of NOI, significantly lower than traditional retail REIT averages. The company leverages a 26-person transaction team to source one-off deals through non-traditional channels like cold calling and wealth advisor networks. Full-year 2026 investment guidance was raised to $1 billion from $850 million, reflecting high confidence in the current acquisition pipeline. OFFO guidance was increased to a range of $1.24 to $1.26 per share, representing approximately 17% year-over-year growth at the midpoint. Management expects a meaningful acceleration in base rent during the fourth quarter as nearly 90% of the signed-but-not-opened (SNO) pipeline commences by March 2027. Guidance assumes a roughly 3.5% return on cash, with interest income expected to decline as liquidity is deployed into real estate assets. Future acquisition funding is secured by over $800 million in immediate liquidity, including $696 million in unsettled equity proceeds. Same-property NOI growth experienced a deceleration in the second quarter due to a 260 basis point headwind from lower forecasted recovery revenue and a 100 basis point headwind from storm damage; pro forma for these items, growth would have been 3.1%. A non-cash G&A gross-up of $1.8 million was recorded due to the shared services agreement with SITE Centers, though it resulted in zero impact on net income. Storm damage at a North Carolina property created a 100 basis point headwind to same-property NOI during the second quarter. The leverage ratio ended the quarter at approximately 20%, which management views as substantial 'dry powder' for future scaling. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes the $1 billion annual pace is sustainable due to the massive total addressable market, of which Curbline currently owns only 60 basis points. The company's scale allows for a dedicated 26-person transaction team, which provides a competitive edge over local buyers in sourcing fragmented one-off assets. David Lukes noted that cap rates have remained stable in the low 6% range despite treasury volatility, as the market reacts slowly to borrowing costs. Underwriting remains focused on unlevered IRRs of approximately 8%, which are primarily driven by cash flow rather than residual value due to low CapEx requirements. SITE Centers did not exercise its option to terminate the agreement early, meaning the SSA will likely remain in place until October 2027. Conor Fennerty clarified that no material change to G&A is expected when the agreement eventually expires, as the current fees mirror the actual cost of services provided. Management clarified that their assets are 'errand-based' rather than 'destination-based,' meaning convenience and traffic counts are more important than unique local tenants. National tenants are increasingly aggressive in seeking space within the portfolio because they can leverage the high-traffic locations more efficiently than local shops.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Curbline Properties (CURB) has scheduled the release of its financial and operational results for the quarter ended June 30, 2026, before the market opens on July 28, followed by an earnings call and webcast. See our latest analysis for Curbline Properties. Curbline Properties’ share price has eased over the past month but still carries a 90 day share price return of 11.63% and a year to date share price return of 31.09%, with a 1 year total shareholder return of 38.55%. This suggests recent momentum has been building into this upcoming earnings update. If this earnings release has you looking beyond a single REIT, it can be a useful time to broaden your watchlist with other income focused plays and 18 top founder-led companies Curbline Properties has given shareholders a strong 12 month ride, yet the stock has slipped over the past month and now sits close to analyst targets. This raises the question of how much of that move really lines up with fundamentals rather than sentiment. The most followed narrative currently pegs Curbline Properties’ fair value at $31.13, slightly above the last close of $30.32. This puts extra attention on how this earnings call could challenge or reinforce those assumptions. Read the complete narrative. Want to see how that acquisition runway translates into the fair value figure? The narrative leans heavily on rapid top line expansion, shifting margins and a rich earnings multiple that would usually be associated with fast growing sectors rather than a traditional REIT. Result: Fair Value of $31.13 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Curbline Properties story also hinges on steady acquisition economics and healthy tenant demand, and either higher funding costs or weaker occupancies could quickly challenge that fair value case. Find out about the key risks to this Curbline Properties narrative. The earlier fair value discussion paints Curbline Properties as roughly 3% undervalued at $31.13 versus a $30.32 share price. The contrasting picture comes from earnings based multiples, where Curbline trades at a P/E of 107x, well above the US Retail REITs industry at 26.6x, the peer average at 40.5x, and the fair ratio of 28.8x. That kind of gap suggests investors are already paying upfront for a lot of future growth and execution, so it is important to consider how comfortable you are with that trade off. To see how this stacks up numerically against other approaches, review the See what the numbers say about this price — find out in our valuation breakdown. If the mixed signals around Curbline Properties have you unsure, take a closer look at the data now and weigh both sides of the story using the 3 key rewards and 1 important warning sign If Curbline Properties has your attention, do not stop there. Widen your opportunity set with fresh stock ideas tailored to different goals and risk levels. Target reliable income by scanning companies built around consistent payouts using the 8 dividend fortresses Hunt for quality at a reasonable price by checking stocks that screen well on value and fundamentals through the 44 high quality undervalued stocks Prioritize resilience by focusing on companies with steadier profiles and lower risk scores using the 79 resilient stocks with low risk scores This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CURB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

NEW YORK, July 06, 2026--(BUSINESS WIRE)--Curbline Properties Corp. (NYSE: CURB), an owner of convenience centers in suburban, high household income communities, announced today investment activity for the second quarter of 2026. "As expected, the second quarter was Curbline’s highest quarterly investment volume since our spin-off, with $374 million of acquisitions across 25 unique transactions. The record levels speak to our team, the infrastructure and process that we’ve built along with the Company’s network of relationships, track record and targeted approach to sourcing investments consistent with the existing portfolio," said 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." Through June 30, 2026, Curbline acquired 44 convenience shopping centers for $516.5 million. In the second quarter, the Company physically settled 8,404,164 shares that were previously sold generating net proceeds of approximately $199.8 million. 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 Curbline is available at www.curbline.com. To be included in the Company’s e-mail distributions for press releases and other investor news, please click here. 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; and our ability to retain and attract key management personnel. 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 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260706667839/en/ Contacts For additional information:Conor Fennerty, EVP and Chief Financial Officer (216) 755-6200

NEW YORK, June 01, 2026--(BUSINESS WIRE)--Curbline Properties Corp. (NYSE: CURB), an owner of convenience centers in suburban, high household income communities, announced today year-to-date investment and capital markets activity in connection with presentations at NAREIT’s REITweek 2026 Investor Conference. "Through the first five months of the year, Curbline has acquired almost $400 million of assets and we are expecting total second quarter acquisitions to be the highest quarterly volume since our spin-off. Our pipeline of opportunities continues to expand as we benefit from the Company’s network of relationships, track record and targeted approach to sourcing investments consistent with the existing portfolio. In May, Curbline also raised over $100 million of gross proceeds through its at-the-market ("ATM") equity offering program, providing additional capital for acquisition opportunities in the highly fragmented but liquid marketplace for convenience centers," said 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." Year-to-date, Curbline has acquired 31 convenience shopping centers for $386.3 million. In May 2026, Curbline sold 3.9 million shares of common stock under the Company’s ATM program on a forward basis with expected gross proceeds of $106.3 million. The sales, along with cash on hand and unsettled forward equity sales from prior issuance, are expected to be used to fund acquisitions. 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 Curbline is available at www.curbline.com. To be included in the Company’s e-mail distributions for press releases and other investor news, please click here. 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; and our ability to retain and attract key management personnel. 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 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260601266438/en/ Contacts For additional information:Conor Fennerty, EVP and Chief Financial Officer (216) 755-6200