Curbline Properties initiated with a Neutral at Citi

Citi initiated coverage of Curbline Properties (CURB) with a Neutral rating and $25 price target. The company is the recent spin-off from SITE Centers (SITC), but while it is “new”, its management team and assets are well known by public investors, the analyst tells investors in a research note. Curbline is also a “clean” balance sheet story that is initially capitalized with $800M in cash and an undrawn $100M term loan, providing ample runway for accretive acquisitions on a smaller asset base with solid tenant credit and seemingly lower long-term capex spend vs. peers, even though these tailwinds are balanced by the stock’s “premium” relative valuation, Citi added.