Curbline Properties Corp. Q4 FY2025 earnings call

• Fourth quarter capped an incredible first year as a public company, with the team's efforts positioning the company for outperformance.
• In 2025, acquired just under $800 million of assets, signed over 400,000 sq ft of new leases/renewals, had over 3% same property growth, and capital expenditures were 7% of NOI.
• Believes there's a significant addressable investment market for scaling the business, convenience sector aligns with consumer behavior, and has the team and balance sheet to support growth.
• Owns the largest high-quality portfolio of convenience properties in the US, with a large addressable market remaining. Built relationships with sellers/brokers across target markets.
• Favors simple, flexible buildings that support a wide variety of uses, leading to a highly diversified tenant base.
• 2026 FFO guidance range $1.17-$1.21 per share, midpoint 12% growth, with $700M of full year investments, 3.25% return on cash, CapEx <10% of NOI, and G&A ~$32M.

The company's convenience retail asset portfolio is the largest high-quality portfolio in the US, totaling almost 5 million square feet. In 2025, they acquired just under $800 million of assets, signed over 400,000 square feet of new leases and renewals, with new lease spreads averaging 20% and renewal spreads just under 10%. Same property growth was over 3% on top of 5.8% growth the prior year. Capital expenditures were 7% of NOI. Revenue contribution is focused on the convenience retail asset segment as the only public company exclusively focused on acquiring top-tier convenience retail assets across the US.

• 2026 FFO guidance is a range of $1.17 to $1.21 per share, midpoint represents 12% growth.
• Assumes roughly $700 million of full year investments, 3.25% return on cash with interest income declining as cash is invested, CapEx as a percentage of NOI less than 10%, and G&A of roughly $32 million.
• Forecasts same property NOI growth of 3% at the midpoint in 2026.

• Execution risk, credit risk, and capital risk associated with acquisitions.
• Uncertainty regarding the recurrence and impact of lease term fees.
• Risk related to the shared services agreement with site centers and potential changes in that agreement affecting guidance.

Q: Can you talk about the acquisition pipeline how it's building? And I know you mentioned $700 million in the guidance. What sort of cap rate is assumed into that and how has that been trending?

A: David Lukes says cap rates have remained averaging just north of 6%, range can be mid-fives to high sixes. Conor Fennerty says pipeline is about half visible for $700 million guidance, with visibility on closings for 2026 already but risk until through diligence Q: My second question was just, I think the same store NOI had a tough comp. And it looks like leasing spreads decelerated a little bit. Maybe could you just talk a little bit more about what happened in the quarter? And then looking forward on the 3% same store NOI guidance, presumably, that's all sort of based on renewals and no occupancy gains. But any sort of other details was baked into that in terms of bad debt and so forth?

A: Conor Fennerty says to look at trailing twelve months for leasing spreads, newly spreads expected back in low twenties. Same property has a small pool, 50% of assets in non-same store pool, bad debt expected to be about a 60 basis point bogey for 2026 Q: Maybe if you can talk a little bit about know, the operations. Your portfolio is big enough now where, you know, you've got some scale. Are you guys seeing any operating synergies by having multiple properties in single markets?

A: David Lukes says synergies are in G&A and tighter cam pool, but recovery rate is high so not a must for same store NOI or property performance Q: My question is maybe if you can talk a little bit about know, the operations. Your portfolio is big enough now where, you know, you've got some scale. Are you guys seeing any operating synergies by having multiple properties in single markets?

A: David Lukes says synergies are in G&A and tighter cam pool, but recovery rate is high so not a must for same store NOI or property performance Q: Hey, good morning, guys. I guess just the first one, On the $1.3 million lease term fees, could you just talk about that? And just in general, kind of how much we should think about these term fees in a given year just given you that that's kind of smaller spaces and you know, good credit at this point.

A: Conor Fennerty says term fees have been a part of the business, recurring, expect them to grow as portfolio grows, driven by various reasons like tenants deciding spaces don't work, and generally make money when getting spaces back Q: Hi. Thanks. Good morning. I wanted to go back to acquisitions and some of the comments that you made about having visibility on around half of the $700 million factored into guidance. Are these all single you know, single off deals? Or are you seeing any portfolios included in the pipeline? And then is there a limit on the amount of volume that you can do in any given year? Are there any constraints either around your appetite or the amount that you might be able to achieve in terms of acquisitions?

A: David Lukes says pipeline is exclusively single asset acquisitions, confidence high in achieving budget with one-off deals, portfolios episodic Q: Yeah. Hey. I guess I was wondering if you could talk a little bit about your expectations for the cadence of lease commencements this year.

A: Conor Fennerty says expect acceleration in first quarter from fourth quarter on same property, modest deceleration in second quarter, big pickup in back half of the year from commencements of spaces recaptured Q: Hey. Good morning. So just following up on the capital questions. David, you've been speaking for some time about growth profile, the double-digit growth profile over a number of years. Your acquisition pace has been tremendous. And as Conor pointed out, there's no slowdown in deal flow. Does your, like, trajectory as you think about debt normalization, has that accelerated, meaning that instead previously, if you thought thinking maybe you had five years of runway before you get to debt normalization, maybe that's sooner, in which case that double-digit growth profile that you guys outlined may actually truncate? Or the way you see it, you still are fine for the next I think you talked about five years, where you can grow sort of in this double-digit way without, you know, capital events slowing that down?

A: David Lukes says business plan has been pulled forward a bit, Conor Fennerty adds operational outperformance, faster buying, and equity issuance have affected the timeline but runway is still long Q: Yeah. Hey. I guess I was wondering if you could talk a little bit about your expectations for the cadence of lease commencements this year.

A: Conor Fennerty says expect acceleration in first quarter from fourth quarter on same property, modest deceleration in second quarter, big pickup in back half of the year from commencements of spaces recaptured Q: Hey, guys. It's a quick follow-up question that if you don't mind. I was just the site prompted something about your G&A. Maybe if you can talk a little bit about where what you think your G&A is gonna be on a going forward basis once, you know, the agreement is settled down and what needs to happen internally to make sure you're properly aligned?

A: Conor Fennerty says expects to run efficiently pro forma for termination of the shared services agreement, believes Curb can be more efficient than pre-spin-off in terms of G&A as a percentage of GAV