Curbline Properties Raises Annual Operating FFO Guidance
The company increased its full-year Operating FFO projection to a range of $1.24 to $1.26 per diluted share
Curbline Properties (CURB) raised its full-year operating forecast after accelerating its acquisition pace during the second quarter. The real estate investment trust shifted its focus toward aggressive portfolio expansion despite a deceleration in organic income growth.
Operating FFO rose to $33.3 million, or $0.31 per diluted share, compared to $26.9 million, or $0.26 per diluted share, in the year-ago period. However, net income attributable to Curbline decreased to $6.9 million, or $0.06 per diluted share, from $10.4 million, or $0.10 per diluted share, in the prior year. The decline in net income was due to higher depreciation and interest expenses.
Growth in same-property net operating income slowed to -0.5% in the second quarter, down from 4.8% in the first quarter. Cash new leasing spreads were 8.2%, a decrease from the trailing twelve-month average of 20.2%. Cash renewal leasing spreads rose to 8.6%, up from the trailing twelve-month average of 7.4%.
Investment activity increased as the company acquired 30 properties for $374.1 million in the second quarter. This followed a first quarter in which the company acquired 14 properties for $142.4 million. Total gross leasable area rose to 5.7 million square feet as of June 30, compared to 5.0 million square feet as of March 31.
Curbline raised its full-year 2026 Operating FFO guidance to a range of $1.24 to $1.26 per diluted share, up from a previous range of $1.20 to $1.23. The company lowered its full-year net income guidance to a range of $0.27 to $0.32 per diluted share, down from a prior range of $0.29 to $0.36.
Cash and capital commitments for future acquisitions rose to $850.9 million as of June 30, compared to $676.9 million as of March 31. The leased rate increased to 96.5% as of June 30, from 96.3% as of March 31.