Curbline Properties: A Case for Undervalued Real Estate Growth in 2025

In the competitive landscape of real estate investment trusts (REITs), Curbline Properties Corp. (CURB) has emerged as a standout performer in 2025, leveraging disciplined capital deployment and scalable operating metrics to drive a compelling growth trajectory. With a projected 20% year-over-year increase in funds from operations (FFO) and over $750 million in capital deployed across acquisitions and financing initiatives, the company is positioning itself as a high-conviction opportunity for investors seeking undervalued real estate exposure.

Accelerating FFO Growth: A Product of Strategic Acquisitions

Curbline's third-quarter 2025 results underscore its ability to translate aggressive acquisition activity into tangible FFO gains. The company reported Operating FFO (OFFO) of $29.5 million, or $0.28 per diluted share-a 47% increase versus $19.5 million, or $0.19 per share in the same period of 2024, according to a company press release. This growth was fueled by the acquisition of 69 convenience shopping centers for an aggregate price of $644.1 million year-to-date, which significantly boosted net operating income, according to a Morningstar report.

The company's updated 2025 guidance of $1.04–$1.05 per share in Operating FFO reflects confidence in maintaining this momentum, with CEO David Lukes emphasizing a "disciplined growth strategy" focused on high-quality assets, as noted in an earnings call transcript. Notably, Curbline's full-year 2024 FFO of $0.97–$1.01 per share provides a clear baseline for the projected 20% growth, aligning with its historical ability to exceed earnings estimates as shown in the company's IR release.

Capital Deployment Efficiency: Beyond Acquisitions

While acquisitions form the backbone of Curbline's growth, the company's capital deployment strategy extends to innovative financing tools that enhance scalability. In July 2025, Curbline secured a $150 million term loan with a maturity extended to January 2031, locking in a fixed all-in rate of 4.61% through a forward interest rate swap, as detailed in that company press release. This move not only stabilizes long-term costs but also frees up liquidity for further investments.

Additionally, the company priced a $200 million private placement of senior unsecured notes in October 2025, including $50 million of 5-year notes at 4.90% and $150 million of 7-year notes at 5.13%, which the press release also reported. These actions demonstrate Curbline's proactive approach to managing its capital structure, ensuring access to affordable funding while mitigating interest rate volatility. When combined with the $644.1 million in acquisitions, total capital deployment for 2025 exceeds $750 million, validating the company's aggressive growth narrative.

Leasing Performance: A Catalyst for Sustainable Cash Flow

Curbline's operational strength is further evidenced by its leasing metrics, which underpin its ability to sustain high FFO growth. As of September 30, 2025, the company achieved a 96.7% leased rate, with cash new leasing spreads of 20.2% and straight-lined new leasing spreads of 36.2% for the trailing twelve months, according to the Morningstar report. These figures highlight robust tenant demand and pricing power, particularly in the convenience retail sector, where Curbline's portfolio is concentrated.

Moreover, same-property net operating income (SPNOI) increased by 3.7% year-to-date for the nine months ending September 30, 2025, compared to the same period in 2024, according to Market Inference. This performance, coupled with a 17% sequential rise in NOI during Q3 2025, underscores the company's ability to generate recurring cash flows from its existing assets-a point the earnings call transcript also highlighted.

Future Outlook: A Compelling Case for Undervaluation

Despite these achievements, Curbline remains undervalued relative to its growth potential. The company's 2025 guidance implies a forward FFO multiple of less than 10x, significantly below the average for its peers. This discount is unjustified given Curbline's track record of exceeding earnings estimates and its strategic focus on high-leased-rate, high-cash-flow assets.

Looking ahead, Curbline's capital-efficient model-combining aggressive acquisitions, innovative financing, and strong leasing performance-positions it to deliver scalable FFO expansion. With $30.29 million in net income for the nine months ending September 30, 2025, compared to a net loss of $1.2 million in the prior-year period, according to a MarketScreener release, the company is demonstrating not just growth but profitability.

Conclusion

Curbline Properties' 2025 performance exemplifies the power of disciplined capital deployment and operational excellence. By deploying over $750 million in capital across acquisitions and financing initiatives, the company has created a scalable platform for FFO growth, supported by industry-leading leasing spreads and a high-leased-rate portfolio. For investors seeking exposure to a REIT with both near-term momentum and long-term durability, Curbline presents a compelling case for inclusion in a diversified portfolio.