Curbline Properties’ Q1 Surge: A Retail REIT on FIRE?
10min read Let me tell you, folks—Curbline Properties (CURB) just lit a match under its sector. The first quarter results are a spark plug for growth in this cautious market. With net income jumping 32.5% and a net cash balance sheet, this REIT isn’t just surviving—it’s thriving. But here’s the kicker: it’s doing it in retail, an industry many have written off. How? Let’s break it down.
The Numbers That Ignite
Curbline’s Q1 net income hit $0.10 per share, a leap from last year’s $0.08. That’s not just growth—it’s acceleration. The company’s focus on “curbline” convenience centers—those prime intersections in affluent suburbs—is paying off. These are the gas stations, pharmacies, and grocery stores that people can’t avoid. Think of them as the 21st-century corner stores, but with Tesla Superchargers and Starbucks.
The Operating Funds from Operations (OFFO) also surged to $0.24 per share, up from $0.19. That’s real money flowing into the business, and it’s backing up their aggressive acquisition strategy. In Q1 alone, they snapped up 11 centers for $124.2 million, with another $14.9 million in deals already in Q2. This isn’t reckless spending—it’s calculated. These properties are in high-income areas where demand outpaces supply.
The Lease Machine
Curbline’s leased rate hit 96%, and while that’s slightly down from a year ago, the spreads tell the story. Their cash new leasing spreads of 27.8% (TTM) and 20.8% in Q1 alone mean they’re commanding premium rents. Even renewals, which dipped to 8.3% in the quarter, still show growth. The straight-lined leasing spreads—which factor in future rent hikes—are even hotter at 47.7% (TTM). This isn’t just about today’s income; it’s about locking in future cash flows.
And let’s not forget the Signed Not Opened (SNO) pipeline: a 250 basis point spread on $5.5 million in annualized rent. That’s like having a guaranteed raise in your paycheck next year.
The Fuel in the Tank
Curbline isn’t just buying properties—they’re financing smartly. A $100 million delayed draw term loan at 5.078%? That’s a steal in this rate environment. And they ended Q1 with a net cash position, meaning they’re not over-leveraged. This gives them flexibility to pounce on more deals or weather a slowdown.
Risks? Sure—but This REIT’s Built to Handle Them
Jim Cramer’s mantra: “Know your risks.” Curbline isn’t immune to retail headwinds or tenant defaults. But their strategy is laser-focused on non-discretionary spending hubs—places people can’t skip, even in a recession. Plus, their same-property NOI grew 2.5% year-over-year, proving stability in their core portfolio.
The Bottom Line: Buy, Sell, or Hold?
This is a BUY. At $24.50 per share (as of Q1 results), Curbline trades at a 4.9% dividend yield, which is solid for a REIT. Their raised guidance—$0.43 to $0.50 in net income per share for 2025—suggests they’re not just firing on all cylinders, but upgrading the engine.
The data doesn’t lie: 32.5% net income growth, $124M in acquisitions, and a 250 bps SNO pipeline are all red flags to investors—in the best way possible. If you’re looking for a REIT that’s not just surviving but dominating in a tough sector, Curbline’s flames are worth catching.
Final Take: Curbline Properties isn’t just a retail REIT—it’s a retail REIGN. With disciplined growth, premium locations, and a cash-rich balance sheet, this stock could be the spark that lights your portfolio’s fire.
