CURB

Curbline is a freshly spun-off (October 1, 2024) pure-play convenience shopping-center REIT with a focused, durable concept: 176 small-format centers, 4.8M sq ft, 94.1% occupancy, 96.7% leased, and $34.52 ABR/sq ft on units that are mostly under 10,000 sq ft. The balance sheet is enviable for a REIT — only $423M of long-term debt against $1.91B of equity (0.29x L/E), $290M of cash, and a 5.0% weighted-average rate with 3.7 years to maturity — which is exactly the kind of dry powder you want for the roll-up strategy management is executing.

The quality of the headline growth is the problem. FY2025 revenue rose 51% to $183M and net income tripled to $39.9M, but MD&A is unusually candid: of the $46.3M increase in base/percentage rent, $43.0M came from acquisitions and only $1.4M from Comparable Portfolio Properties — that's well under 2% same-store growth. ABR per occupied square foot actually slipped from $35.62 to $34.52 as acquired assets came in at lower rents. Pre-Spin comparisons are also a carve-out from SITE Centers, not a real legal entity, so the YoY deltas overstate underlying momentum. Operating cash flow of $125M covers the $77.4M dividend (which already exceeds GAAP net income), but ROE is just 2.1% as the equity base hasn't yet been put to work.