Curbline Properties Corp. Q1 FY2026 earnings call

Good morning, welcome to CurbLine Properties' first quarter conference call. Investment opportunities remained elevated, leasing demand strong, and new markets tapped. Signed over 145,000 square feet of new leases and renewals this quarter. Trailing 12-month spreads consistent with five-year averages. Generated almost 5% growth in same property NOI this quarter with capital expenditures at 6.3% of quarterly NOI.

Increasing OFFO guidance to a range between $1.20 and $1.23 per share, midpoint represents 14% growth. 2026 investment target raised to $850 million from $750 million. Same property NOI forecasted to grow 3% at midpoint in 2026. Interest expense set to increase, non-cash revenue expected to decline, G&A expected to remain roughly flat. Dilution from forward offerings expected to be a one cent per share headwind to 2026 OFFO.

Q: Ronald Camden asked about acquisition guidance raise, cap rates and IRRs.

A: Pipeline exclusively individual properties, cap rates in low sixes with unlevered IRR 7% - 9%.

Q: Craig Millman asked about Iran impact on foot traffic and cushion in leases.

A: Foot traffic not great proxy for tenant profitability, insulation from consumer behavior.

Q: Flores Van Ditchcom asked about management value add and difference between gap cap rates and cash gap rates.

A: Management value add in making sure tenants pay market rent, average differential between GAAP and cash about 35 basis points.

Q: Thomas Todd asked about transacting using OP equity and visibility on increased pipeline.

A: Starting to shift deal teams to access seller cohort, about 90% of $850 million bogey closed, under contract or awarded.

Q: Alexander Goldfarb asked about pacing of acquisitions.

A: Expecting active middle of the year in closing timeline.

Q: Mike Mueller asked about geographical biases in pricing.

A: Historical spread exists but competition less in some states.

Q: Paulina Rojas asked about reach through from white phone transaction and vulnerability.

A: More differences than similarities, balance sheet and diversification mitigate risk.