Curbline Properties adjusts 2026 guidance following $800 million acquisition program

Curbline Properties Corp. (NYSE: CURB) revised its full-year 2026 net income guidance to a range of $0.25 to $0.29 per diluted share on October 22, 2026, while increasing its operating funds from operations guidance to $1.25 to $1.27 per diluted share. The company cited higher interest and depreciation expenses, lower interest income, and a larger weighted-average share count from equity issuances as the primary drivers of the net income adjustment, which partially offset the impact of recent asset purchases.

For the third quarter ended September 30, 2026, Curbline reported net income of $7.4 million, or $0.06 per diluted share, a decrease from $9.3 million, or $0.09 per diluted share, in the prior year period. Operating funds from operations attributable to the company rose to $37.4 million, or $0.32 per diluted share, compared to $29.5 million, or $0.28 per diluted share, a year earlier. David R. Lukes, President and Chief Executive Officer, noted that these results continue first-half trends, with the company raising over $300 million in capital and investments during the period.

The company’s expansion strategy involved significant asset purchases and equity financing. During the third quarter, Curbline acquired 23 convenience shopping centers for a total of $233.9 million. Year-to-date acquisitions reached 72 centers for an aggregate price of $800.0 million. To fund these transactions, the company issued 33.0 million shares through forward sales in public offerings and at-the-market programs, projecting gross proceeds of $925.9 million before costs.

As of September 30, 2026, Curbline held $734.9 million in cash and capital commitments for future acquisitions. This amount comprised $122.8 million in cash and $612.1 million in expected proceeds from unsettled forward equity sales. The company settled 7.3 million forward shares in the third quarter for net proceeds of $184.0 million and sold an additional 3.6 million shares on a forward basis for expected gross proceeds of $102.4 million.

To address interest rate exposure on an unsecured term loan expected to close in the fourth quarter, Curbline executed two separate forward interest rate swap agreements for $50 million each in September and October 2026.

Operating metrics for the portfolio of 239 properties showed same-property net operating income increasing by 3.4% for the three months ended September 30, 2026, driven by base rent growth from new lease commencements. The leased rate declined slightly to 96.4% at the end of September from 96.5% at the end of June and 96.7% at the end of September 2025.

The Signed Not Opened pipeline stood at 190 basis points, representing $7.6 million in annualized base rent as of September 30, 2026. Lukes indicated that the majority of these leases are expected to begin rent payments by March 2027.