Curbline Properties Corp. (CURB) AI Stock Analysis

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Curbline Properties Corp.

(NYSE:CURB)

Rating:75Outperform

Price Target:―

Curbline Properties Corp. is positioned strongly with robust financial health and positive earnings guidance, backed by strong leasing and acquisition activities. However, the high valuation and mixed technical indicators pose potential risks. The company's ability to manage economic challenges and tenant occupancy volatility will be crucial for future performance.

Positive Factors

Financial Performance

Curbline Properties Corp. achieved a core FFO that beat expectations due to interest income, indicating strong financial performance.

Liquidity and Capitalization

The company has no debt outstanding and maintains significant liquidity with $1.1 billion available, enhancing financial stability.

Occupancy and Leasing

Same store leased occupancy increased to 96.9%.

Negative Factors

Interest Income

Interest income is projected to decline in 2025 as cash is invested in acquisitions, potentially impacting short-term earnings.

Tenant Structure

CURB owns smaller convenience-focused centers that predominantly do not have an anchor tenant to drive traffic as the small shop tenants can drive their own traffic.

Valuation

The current valuation is seen as already encompassing strong future growth prospects, leading to a Hold rating.

Curbline Properties Corp. (CURB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.40B

Dividend YieldN/A

Average Volume (3M)437.73K

Price to Earnings (P/E)189.0

Beta (1Y)0.48

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees37

SectorReal Estate

Sector Strength62

IndustryREIT - Retail

Share Statistics

EPS (TTM)0.10

Shares Outstanding105,215,060

10 Day Avg. Volume489,048

30 Day Avg. Volume437,729

Financial Highlights & Ratios

PEG Ratio6.94

Price to Book (P/B)1.27

Price to Sales (P/S)0.00

P/FCF Ratio38.32

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$26.40

Price Target Upside15.84% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Curbline Properties Corp. Business Overview & Revenue Model

Company DescriptionCurbline Properties Corp. (CURB) is a real estate investment and management company specializing in urban property development and leasing. The company focuses on acquiring, developing, and managing high-value commercial and residential properties in major metropolitan areas. CURB's core services include property acquisition, development, asset management, and leasing services, positioning itself as a key player in the urban real estate market.

How the Company Makes MoneyCurbline Properties Corp. generates revenue primarily through rental income from its portfolio of commercial and residential properties. The company invests in high-demand urban areas, ensuring steady leasing income and potential for property appreciation. CURB also engages in property development, creating new real estate projects that are either sold for profit or added to its leasing portfolio. Additionally, the company may form strategic partnerships with construction firms and real estate agencies to optimize its development processes and increase market reach. Revenue is further supplemented by property management fees from third-party owners who utilize CURB's expertise in managing their real estate assets.

Curbline Properties Corp. Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: -2.61%|

Next Earnings Date:Feb 17, 2026

Earnings Call Sentiment Positive

The overall sentiment of the call is positive, with strong leasing activity, acquisition momentum, and financial performance outweighing the potential economic challenges and tenant occupancy volatility.

Q1-2025 Updates

Positive Updates

Strong Leasing Activity

Lease rate increased by 50 basis points sequentially to 96%, with 120,000 square feet of new leases and renewals including major tenants like AT&T and Verizon.

Significant Acquisition Momentum

Acquired 11 properties for over $124 million in Q1, with a current pipeline of over $500 million expected to close in the near term.

Robust Cash Flow and Liquidity

Achieved almost $25 million of retained cash flow with under 5% CapEx as a percentage of NOI, alongside $1 billion in liquidity at quarter end.

Positive Financial Performance

NOI up almost 9% sequentially, driven by organic growth and acquisitions, with an increase in guidance for 2025 OFFO.

Negative Updates

Potential Economic Challenges

Concerns about potential impacts of macroeconomic changes, including tariffs and consumer pullbacks on retail tenants.

Tenant Occupancy Volatility

Same-property occupancy was down sequentially by 60 to 80 basis points, partly due to tenant terminations.

Company Guidance

In the first quarter of 2025, Curbline Properties Corp reported strong performance metrics, highlighting a sequential increase in NOI by almost 9% to $28 million, with CapEx at under 5% of NOI, leading to nearly $25 million in retained cash flow before distributions. The company's lease rate rose by 50 basis points to 96%, with 120,000 square feet of new leases and renewals signed, including key tenants like AT&T and Verizon. Same-property NOI growth is expected to average over 3% for the three-year period ending in 2026. Curbline's acquisition pace exceeded initial guidance, achieving over $475 million in acquisitions over the past nine months, with a current pipeline of more than $500 million. For 2025, Curbline raised its OFFO guidance to $0.99-$1.02 per share, driven by better-than-expected operations and anticipated acquisitions, marking a significant potential for growth with a focus on capital efficiency and a robust balance sheet featuring $600 million in cash and $1 billion in liquidity.

Curbline Properties Corp. Financial Statement Overview

Summary

Curbline Properties Corp. demonstrates strong revenue growth and a solid balance sheet with low leverage. The company manages cash flow effectively, maintaining positive free cash flow. However, profitability margins present some challenges, indicating room for improvement in generating returns for shareholders.

Income Statement

Very Positive

Curbline Properties Corp. demonstrates strong revenue growth with a 63.4% increase from 2022 to 2024. The gross profit margin in 2024 is robust at 77.2%, indicating efficient cost management. However, the net profit margin decreased to 8.5% in 2024 from 33.1% in 2023, reflecting potential challenges in controlling operational expenses or interest costs.

Balance Sheet

Positive

The company maintains a solid equity base, with an equity ratio of 95.5% in 2024, highlighting stability. The debt-to-equity ratio is low at 0.02, suggesting prudent leverage use. Return on equity is relatively modest at 0.5% in 2024, indicating room for improvement in generating returns for shareholders.

Cash Flow

Positive

Operating cash flow is stable, aligning closely with net income, which shows good cash conversion. Free cash flow remained positive despite significant investing outflows, underscoring effective cash management. The free cash flow to net income ratio is strong, suggesting a healthy capacity to reinvest or distribute cash.

TTM	Dec 2024	Dec 2023	Dec 2022
Breakdown
Income Statement		Total Revenue
103.12M	120.88M	93.66M	73.14M
	Gross Profit
77.28M	93.28M	71.75M	57.76M
	EBIT
17.14M	33.93M	34.54M	27.36M
	EBITDA
44.19M	53.09M	64.53M	53.98M
	Net Income Common Stockholders
6.60M	10.26M	31.01M	25.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
594.04M	626.41M	566.00K	77.00K
	Total Assets
1.38B	2.03B	921.63M	758.02M
	Total Debt
144.78M	40.15M	47.00M	53.82M
	Net Debt
-449.26M	-586.26M	46.44M	53.74M
	Total Liabilities
185.22M	90.54M	58.99M	66.24M
	Stockholders Equity
1.93B	1.94B	862.64M	691.78M
Cash Flow		Free Cash Flow
47.30M	54.26M	59.24M	49.88M
	Operating Cash Flow
47.30M	54.26M	59.24M	49.88M
	Investing Cash Flow
-484.78M	-437.40M	-186.02M	-323.46M
	Financing Cash Flow
1.03B	1.01B	126.91M	273.33M

Curbline Properties Corp. Risk Analysis

Curbline Properties Corp. disclosed 50 risk factors in its most recent earnings report. Curbline Properties Corp. reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Curbline Properties Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTY	75 Outperform	$1.61B	24.03	7.23%	6.34%	7.80%	4.15%
CURB	75 Outperform	$2.40B	188.97		―	―	―
FCPT	75 Outperform	$2.75B	25.63	7.62%	5.11%	6.20%	0.28%
IVT	72 Outperform	$2.18B	124.10	1.07%	3.26%	7.45%	119.81%
WSR	70 Outperform	$1.25B	20.35	7.33%	4.11%	4.39%	24.45%
AKR	64 Neutral	$2.60B	118.06	0.92%	3.89%	2.62%	84.20%
Sector *	61 Neutral	$2.83B	10.91	0.42%	8438.90%	5.74%	-20.95%

* Real Estate Sector Average

Performance Comparison

CURB

Curbline Properties Corp.

22.79

3.19

16.28%

GTY

Getty Realty

29.04

3.61

14.20%

WSR

Whitestone REIT

12.31

-0.25

-1.99%

AKR

Acadia Realty

19.55

3.22

19.72%

FCPT

Four Corners Property

27.39

4.70

20.71%

IVT

InvenTrust Properties

28.12

4.48

18.95%

Curbline Properties Corp. Corporate Events

Executive/Board ChangesShareholder Meetings

Curbline Properties Elects New Directors at Annual Meeting

Neutral

May 9, 2025

On May 7, 2025, Curbline Properties Corp. held its annual meeting of stockholders where key decisions were made regarding the company’s leadership and financial oversight. Linda B. Abraham and David R. Lukes were elected as Class I directors, with Lukes receiving a notably higher number of votes in favor. Additionally, the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 was overwhelmingly approved, indicating strong shareholder support for the company’s financial governance.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.