Curbline Properties Corp. ((CURB)) has held its Q1 earnings call. Read on for the main highlights of the call.
Curbline Properties Corp. recently held its earnings call, and the sentiment was overwhelmingly positive. The company showcased strong leasing activity, acquisition momentum, and financial performance, which overshadowed concerns about potential economic challenges and tenant occupancy volatility.
Strong Leasing Activity
Curbline Properties Corp. reported a significant increase in its lease rate, which rose by 50 basis points sequentially to 96%. This improvement was supported by 120,000 square feet of new leases and renewals, including major tenants such as AT&T and Verizon. This strong leasing activity underscores the company’s ability to attract and retain key tenants, contributing to its robust financial performance.
Significant Acquisition Momentum
The company demonstrated impressive acquisition momentum, acquiring 11 properties for over $124 million in the first quarter. Furthermore, Curbline has a current pipeline of over $500 million expected to close in the near term. This aggressive acquisition strategy is poised to enhance the company’s portfolio and drive future growth.
Robust Cash Flow and Liquidity
Curbline achieved almost $25 million in retained cash flow, with capital expenditures under 5% of NOI. The company ended the quarter with $1 billion in liquidity, highlighting its strong financial position and ability to invest in future opportunities while maintaining operational efficiency.
Positive Financial Performance
The company’s NOI increased by almost 9% sequentially, driven by both organic growth and acquisitions. This positive financial performance led to an increase in guidance for 2025 OFFO, reflecting confidence in continued growth and operational success.
Potential Economic Challenges
Despite the positive outlook, Curbline acknowledged potential economic challenges, including the impacts of macroeconomic changes such as tariffs and consumer pullbacks on retail tenants. These factors could pose risks to future performance, but the company remains optimistic about its strategic initiatives.
Tenant Occupancy Volatility
The company experienced some tenant occupancy volatility, with same-property occupancy down by 60 to 80 basis points sequentially. This decline was partly due to tenant terminations, which the company is actively addressing to stabilize occupancy rates.
Forward-Looking Guidance
Looking ahead, Curbline Properties Corp. provided strong forward-looking guidance. The company expects same-property NOI growth to average over 3% for the three-year period ending in 2026. Additionally, Curbline raised its OFFO guidance for 2025 to $0.99-$1.02 per share, driven by better-than-expected operations and anticipated acquisitions. The company is focused on capital efficiency and maintaining a robust balance sheet, with $600 million in cash and $1 billion in liquidity.
In summary, Curbline Properties Corp.’s earnings call highlighted a positive sentiment, driven by strong leasing activity, acquisition momentum, and financial performance. While potential economic challenges and tenant occupancy volatility were noted, the company’s forward-looking guidance suggests continued growth and resilience in the face of market uncertainties.