Curbline Properties Q4 2025 Earnings Call - 12% FFO Growth Targeted in 2026 Backed by $700M Investment Plan and Strong Liquidity

Operator: Thank you. I’d now like to turn the call over to Stephanie Roester, Vice President of Capital Markets. You may begin.

Stephanie Roester, Vice President of Capital Markets, Curbline Properties: Thank you. Good morning, and welcome to Curbline Properties’ fourth quarter 2025 earnings conference call. Joining me today are Chief Executive Officer, David Lukes, and Chief Financial Officer, Conor Fennerty. In addition to the press release distributed this morning, we have posted our quarterly financial supplement and slide presentation on our website at curbline.com, which are intended to support our prepared remarks during today’s call. Please be aware that certain of our statements today may contain forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from our forward-looking statements. Additional information may be found in our earnings press release, in our filings with the SEC, including our most recent reports on Forms 10-K and 10-Q.

In addition, we will be discussing non-GAAP financial measures on today’s call, including FFO, operating FFO, and same-property net operating income. Descriptions and reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in today’s quarterly financial supplement and investor presentation. At this time, it is my pleasure to introduce our Chief Executive Officer, David Lukes.

David Lukes, Chief Executive Officer, Curbline Properties: Good morning, and welcome to Curbline Properties’ fourth quarter conference call. The fourth quarter capped an incredible first year as a public company for Curbline, and I couldn’t be more pleased with our results. Let me start by thanking the entire team for their tireless efforts to position the company for outperformance. We continue to lead in this unique, capital-efficient sector with a clear first-mover advantage as the only public company exclusively focused on acquiring top-tier convenience retail assets across the United States. Before Conor walks through the quarterly results and our 2026 guidance in detail, I’d like to take a moment to reflect on our first year as a public company, along with our expectations going forward. In 2025, we acquired just under $800 million of assets through a combination of individual acquisitions and portfolio deals.

We signed over 400,000 sq ft of new leases and renewals, with new lease spreads averaging 20% and our renewal spreads just under 10%. We generated over 3% same-property growth on top of 5.8% growth the prior year, and importantly, our capital expenditures were just 7% of NOI, placing us among the most capital-efficient operators in the entire public REIT sector, an important hallmark of the convenience asset class. We believe that these results are not just reflective of a single year, but are representative of the asset class and the opportunities in front of us and help explain our confidence in delivering superior risk-adjusted returns. Specifically, one, we believe that there remains a significant addressable investment market that provides an opportunity to scale this business.

Two, we believe that the convenience sector, with simple and flexible buildings, is aligned with consumer behavior. And three, we believe that we have the team and the balance sheet to support our growth and drive compelling returns. In a little more detail, first, our investments. We believe we currently own the largest high-quality portfolio of convenience properties in the U.S., totaling almost 5 million sq ft. The total U.S. market for this asset class is 950 million sq ft, 190 times larger than our current footprint. Not all of that inventory meets our standards, but our criteria are clear: primary corridors, strong demographics, high traffic counts, and creditworthy tenants.

Our track record demonstrates the liquidity of assets that match those metrics, allowing us to grow via a mixture of one-off deals and portfolios while maintaining our industry leadership by acquiring only the best real estate. Even the top quartile of the convenience sector itself is 50 times larger than our current portfolio, providing a very long runway to grow. To achieve this growth in a highly fragmented sector, the company must build a significant network of relationships with sellers and brokers across our target markets. We’ve built that organization over the past 7 years, and the results are showing. As an example, of the $1 billion of acquisitions we’ve completed since the spin-off of Curbline, 27% of those deals were direct and off-market with sellers, and 73% were marketed through the brokerage community.

Even within those marketed deals, there were 24 different brokerage companies involved in the listing of individual properties, which highlights not only the highly fractured market, but the importance of a national network of relationships that Curbline has built. Second, we invest in simple, flexible buildings that are the nexus of consumer behavior. Our strategy is clear: provide convenient access to customers, running errands woven into their daily lives, and lease to tenants with strong credit who are willing to pay top rent to access those customers. Unlike traditional shopping centers built for destination retailers, our properties serve customers running daily errands. According to third-party geolocation data, two-thirds of our visitors stay less than 7 minutes on our properties, often returning multiple times a day. As a result, rather than purpose-built structures, we favor straightforward rows of shops that support a wide variety of uses.

This flexibility drives tenant demand from an extremely wide pool of tenants, rising rents, and minimal capital outlay. On page 13 of our supplemental, you’ll notice that we completed a total of 67 new leases over the course of 2025. Sixty-four of those leases were with unique tenants, and 70% were national credit operators, both of which highlight the incredibly deep market for leasing to a wide variety of uses in our simple buildings, and that credit tenants are seeking high traffic intersections. The result for our portfolio is a highly diversified tenant base, with only nine tenants contributing more than 1% of base rent and only one tenant more than 2%. Third, our team and our balance sheet are built to support our growth and structured to scale.

Curbline has all of the pieces on hand to generate double-digit cash flow growth for a number of years to come. Based on our 2026 FFO guidance, we’re forecasting 12% year-over-year FFO growth, which is well above the REIT sector average and is driven not just by external growth, but by the capital efficiency of the business, allowing us to reinvest, retain cash flow into additional investments. In summary, I couldn’t be more optimistic about the opportunity ahead for Curbline as we exclusively focus on scaling the fragmented convenience marketplace and delivering compelling, relative, and absolute growth for stakeholders. With that, I’ll turn it over to Conor.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Thanks, David. I’ll start with fourth quarter earnings and operating metrics before shifting to the company’s 2026 guidance, and then concluding with the balance sheet. Fourth quarter results were ahead of budget, largely due to higher than forecast NOI, driven in part by rent commencement timing, along with higher acquisition volume and lease termination fees, partially offset by G&A. NOI was up 16% sequentially and almost 60% year-over-year, driven by acquisitions along with organic growth. Outside of the quarterly operational outperformance, there are no other material variances for the quarter, highlighting the simplicity of the Curbline income statement and business plan. You will note that in the fourth quarter, we recorded a gross up of $1 million of non-cash G&A expense, which was offset by $1 million of non-cash other income.

This gross up, which is a function of the shared services agreement, and that’s the zero net income, will continue as long as the agreement is in place and is excluded from any G&A figures or targets. In terms of other operating metrics, the lease rate was unchanged from the third quarter at 96.7%, with occupancy up 20 basis points. Leasing volume in the fourth quarter decelerated from the third quarter, but that is simply a function of less available space, as overall leasing activity remains elevated. We remain encouraged by the depth of demand and the economics for available space, which we believe is a differentiator for Curbline as compared to other property types. Same property NOI was up 3.3% for the full year and 1.5% for the fourth quarter, despite a 50 basis point headwind from uncollectible revenue.

Importantly, this growth was generated by limited capital expenditures, with fourth quarter CapEx as a percentage of NOI of 8.9% and full year CapEx as a percentage of NOI of just under 7%. Moving to our outlook for 2026, we are introducing FFO guidance in a range between $1.17 and $1.21 per share, which, at the midpoint, represents 12% growth. We believe that this level of growth will be the highest, certainly in the retail space, and among the highest in the entire REIT sector.

Underpinning the midpoint of the range is one, roughly $700 million of full-year investments. Two, a 3.25% return on cash, with interest income declining over the course of the year as cash is invested. Three, CapEx as a percentage of NOI of less than 10%. And four, G&A of roughly $32 million, which includes fees paid to SITE Centers as part of the shared services agreement. Those fees totaled $970,000 in the fourth quarter. In terms of same property NOI, we are forecasting growth of 3% at the midpoint in 2026. As I have noted previously, the same property pool is growing but small, and it includes only assets owned for at least 12 months as of December 31, 2025, resulting in a large non-same property pool.

That said, we don’t expect as large of a gap in terms of relative growth between the two pools in 2026, though uncollectible revenue will remain a year-over-year headwind to same property pool, despite limited forecast bad debt activity. For moving pieces between the fourth quarter of 2025 and the first quarter of 2026, as a result of the funding of the private placement offering in January, interest expense is set to increase to about $8 million in the first quarter. Additionally, we do not expect the $1.3 million of lease termination fees recorded in the fourth quarter to reoccur in the first quarter. G&A is also expected to remain roughly flat quarter-over-quarter. Details on 2026 guidance and expectations can be found on page 11 of the earnings slides.

Ending on the balance sheet, Curbline was spun off with a unique capital structure aligned with the company’s business plan. In the fourth quarter, Curbline closed on the first tranche of a $200 million private placement offering, with the balance funding in January. The offering brings total debt capital raised since formation to $600 million, a weighted average rate of roughly 5%. Additionally, in the fourth quarter and first quarter to date, the company sold 5.2 million shares on a forward basis, with $120 million of expected gross proceeds, which we expect to settle in 2026....

including cash on hand at year-end of $290 million, along with the debt and equity proceeds, Curbline had $582 million of immediate liquidity available to fund investments, leaving a balance of less than $100 million to fund the investments included in guidance after taking account retained cash flow. Curbline’s proven access to unsecured fixed rate debt, and now the ATM, is a key differentiator from the largely private buyer universe acquiring convenience properties. The net result of the capital markets activity since formation is that the company ended the year with a leverage ratio of less than 20%, providing substantial dry powder and liquidity to continue to acquire assets and scale, resulting in significant earnings and cash flow growth well in excess of the REIT average. With that, I’ll turn it back to David.

David Lukes, Chief Executive Officer, Curbline Properties: Thank you, Conor. Operator, we are now ready to take questions.

Operator: Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. If you’d like to withdraw your question, simply press star one again. Your first question today comes from the line of Ronald Kamden from Morgan Stanley. Your line is open.

Ronald Kamden, Analyst, Morgan Stanley: Hey, thanks so much. Can you talk about the acquisition pipeline, how it’s building? I know you mentioned $700 million in the guidance. What sort of cap rate is assumed into that, and how has that been trending? Thanks.

David Lukes, Chief Executive Officer, Curbline Properties: Good morning, Ron. It’s David. I’ll let Conor talk about the pipeline, but I would say cap rates have remained averaging just north of 6%, as they have the last couple of quarters. I’ll remind you, as we’ve said in previous quarters, that the range can actually be quite wide, between mid-5s to high 6s. That really depends a lot on occupancy, the rent roll, mark to market, and so forth. But when you blend all these deals together, we’re still in the low 6s.

Conor Fennerty, Chief Financial Officer, Curbline Properties: And Ron, just on the pipeline. So as you know, our initial expectations prior to the spin-off were to acquire about $500 million of assets on an annual basis. Obviously, we’ve ramped that up quite a bit to $700 million this year. And at this point, for what we’ve either closed, under contract, or have been awarded, it’s about half, or we have visibility about half of that pipeline today. So there’s quite a bit of visibility on closings for 2026 already. The only thing I would just caveat is there’s risks to that, right, until we get through diligence on each of those assets. But again, I just would frame it versus either even a year ago. We have a much higher level of visibility on the pipeline today than we did at any point.

Ronald Kamden, Analyst, Morgan Stanley: Great. My second question was just, I think the same-store NOI had a tough comp, and it looks like leasing spreads decelerated a little bit. Maybe can you just talk a little bit more about what happened in the quarter, and then looking forward on the 3% same-store NOI guidance, presumably, that’s all sort of based on renewals and new occupancy gains. But any sort of other details was baked into that in terms of bad debt and so forth? Thanks.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Sure. It’s Connor again, Ron. So on the leasing spreads first, you know, as I always caveat, I encourage folks to look at trailing twelve months, just given how small our denominator is. And if we look at the pipeline for leasing activity in the first quarter and the second quarter of this year, we would expect our new lease spreads to be right back in the low 20s, which was where they were for the full year. And I would say a similar comment on renewals. You know, look at TTM as opposed to just one quarter. For same property, similar response, very small pool. We’ve got 50% of the assets are in the non-same store pool, so a couple shops moving out can create some volatility.

It’s clear, though, if you look at our lease rate, it’s up year-over-year, and it’s effectively unchanged quarter-over-quarter. So the fewer spaces we got back in the fourth quarter, we have already leased and we expect to rent commence in the second and third quarter for 2026. The only other thing I would just say on 2026 same property NOI, it’s a pretty wide range for all the reasons I just laid out, of 2%-4%. We do expect a pretty big acceleration over the course of the year, because of the leased occupied gap compressing. And again, that speaks to the fact that these are leases just signed over the last couple months. It doesn’t take a lot of...

It’s a tighter timeline than a larger format center to get those leases rent paying, which speaks to the property type, which is one of the reasons we love it.

Ronald Kamden, Analyst, Morgan Stanley: Bad debt? Sorry.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Oh, yeah, of course. Sorry. Bad debt, we’ve got about a 60 basis point bogey for the midpoint of guidance for the year. To put that in contrast or compare it to 2025, we had about 30 basis points of bad debt in 2025 to the same property pool. So we are expecting a normalization. We’re not seeing anything that would cause us to expect year-over-year uptick, but it feels just a prudent base case for now, and we’ll update that obviously over the course of the year.

Ronald Kamden, Analyst, Morgan Stanley: Helpful. That’s it for me. Thank you.

Conor Fennerty, Chief Financial Officer, Curbline Properties: You’re welcome.

Operator: Your next question comes from the line of Floris van Dijkum from Ladenburg Thalmann. Your line is open.

David Lukes, Chief Executive Officer, Curbline Properties: Hey, morning, guys. My question is, maybe, if you can talk a little bit about, you know, the operations. Your portfolio is big enough now where, you know, you’ve got some scale. Are you guys seeing any operating synergies by having multiple properties in single markets? I know you’re big in Atlanta and Miami, for example. Maybe talk a little bit about how, you know, if there’s any additional synergies that you can squeeze out of having more assets in single markets.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Hey, good morning, Floris. Thanks for the question. I would say that the synergies, I would put them in two buckets. One is G&A and the expense to run a property, and the second is the more you have in a certain market, the more it allows you to have a little bit of a tighter CAM pool. In both of those cases, there is some truth that, you know, scaling in certain markets does give you a little bit of leverage on both of those costs.

David Lukes, Chief Executive Officer, Curbline Properties: ... but I will say that the recovery rate on this asset class is so high that it doesn’t really flow through to same store NOI or total property performance as much. So I, I would say that the synergies are a nice to have, but they’re not a must-have with how this property type operates.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Yes. Well, it feels like the synergies are much more corporate focused in the sense that, you know, you’re leveraging, you know, public company costs, and you’re seeing that already as you look at just, you know, G&A as a percentage of GAV or G&A as a percentage of revenue.

David Lukes, Chief Executive Officer, Curbline Properties: Maybe my follow-up in terms of capital allocation. Have you considered going, I guess maybe there hasn’t been a need to, but going into more value-add assets with higher vacancies, or are you, you know, sticking to your knitting because, you know, frankly, the market is telling you, you know, go ahead and keep acquiring?

David Lukes, Chief Executive Officer, Curbline Properties: It’s a great question, Floris. I’ll probably back up by saying that it is interesting to see in the entire unanchored strip category, that there are different strategies that are emerging. You know, some folks focus on value add, other folks focus on secondary markets. Some people like short wealth, no credit. I think you see that in other property types, like, you know, student housing as a part of multifamily. You know, there’s lots of examples you can point to. For us, if you think about where we are in the real estate cycle right now for retail, leasing demand is high, occupancy is high, and rents are growing. And so when we look at our strategy of scaling convenience, I think the three risks that we really don’t want to take are execution risk, credit risk, and capital risk.

If you add those three together, it just tells you that the returns we can get on an unlevered IRR basis for buying high-quality real estate that’s, that’s very well leased with high credit tenants, it doesn’t feel worth the risk to take in order to generate slightly higher IRRs. And, and so that strategy for us is allowing us to be very specific about which pieces of real estate we buy. Said differently, if you’re buying high-quality real estate, it’s most likely to outperform in a recession. That’s probably a strategy that I think investors would want to see us pursue.

David Lukes, Chief Executive Officer, Curbline Properties: Thanks, David.

Operator: Your next question comes from a line of Craig Mailman from Citigroup. Your line is open.

Craig Mailman, Analyst, Citigroup: Hey, good morning, guys. I guess just the first one. On the $1.3 million lease term fees, could you just talk about that, and just in general, kind of how much we should think about lease term fees in a given year, just given you guys have kind of smaller spaces and, you know, good credit at this point?

David Lukes, Chief Executive Officer, Curbline Properties: It’s really hard to hear you. Can you try that one more time?

Craig Mailman, Analyst, Citigroup: Oh, sorry. Can you hear me now?

Conor Fennerty, Chief Financial Officer, Curbline Properties: It’s marginally better. I, I think it was about term fees, Craig, and stop me if, if you wouldn’t mind repeating the question, though.

Craig Mailman, Analyst, Citigroup: Yeah. Just on term fees, can you just tell us what drove the $1.3 million in the quarter? And how we should think about kind of your lease term fees on a recurring basis, just given it’s a little bit of a smaller portfolio and just in general, our sense is you guys have better credit. Like, was this driven by you guys or was this a tenant-driven move?

Conor Fennerty, Chief Financial Officer, Curbline Properties: Craig, okay, I’ll, I’ll take a stab at it and just let me know if I, I’m answering the questions. So if you look at the last two years, we had just over $2 million in 2025 and just over $4 million in 2024. It does feel like... And again, if you look back in 2023 from our, from our SEC filings pre-spinoff, that there have been some quarters where we’ve had chunky term fees. Some of those have been one tenant driving the entirety of the fee. Other times, they’ve been more fragmented.

It does feel like it’s a pretty, I don’t want to say recurring part of the business because of how chunky they are, but it does, we do expect there to be kind of a normal level of term fees over the course of any particular year, and I would expect that number to grow as the portfolio grows. To what’s driving those, it could be a function of a number of different things. One, a tenant just deciding a space or a market doesn’t work for them, others where they go dark and paying, and we come to an agreement.

The best thing about it, though, is to David’s point, just given the economics of our business, more often than not, we wouldn’t consider a term fee until it pays for the CapEx, the downtime, and more often than not, we’re actually making money when we get those spaces back. And then the only thing I’d add is, unlike a larger format or purpose-built building, where we’ve got to tear that down or spend a year repurposing that space, we generally can get a tenant back in between 3-9 months. So, for us, we think of it as almost like gravy. But again, it’s. There’s generally just a pretty wide range of reasons that drive them. It doesn’t feel like it’s one specific reason, or one specific tenant that drives the boat.

Let me know if I answered your question, though. Just again, just challenging to hear you.

Craig Mailman, Analyst, Citigroup: Yeah. Is this better? I switched microphones.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Yes.

Craig Mailman, Analyst, Citigroup: Okay, perfect. Sorry about that. But you did answer my question. I guess on the second question, just on kind of sources of capital, you guys are sitting on a good amount of cushion here. And, you know, net debt to EBITDA, even without the forward, is around 1x. Could you just talk about going forward, the thought process on incremental equity issuance versus kind of building out your ladder, becoming a more seasoned issuer, or potentially setting yourself up to become a more seasoned issuer to lower your cost of debt here? And just the decision to use the forward, I guess, versus thought, you know, and that’s it, it’s always good in hindsight, but the stock is, you know, close to 8%-9% higher than where you guys issued the forward earlier this quarter.

So just thoughts in general on that. I know you guys are issuing at least above my EV, so it’s hard to complain, but it feels like, speculating on the stock here, you left a little bit on the table.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Sure, Craig. Well, a lot there to unpack. So, I would just say, starting with liquidity on hand, we have about $580 million of cash and unsettled equity versus our target of $700 million investment. So, to my comments from the transcript or from the opening remarks, excuse me, we only have about a $100 million funding gap for the remainder of the year, which is pretty insignificant when you think about the enterprise value and the fact that we’ve got an undrawn line of credit behind that. So the question is: How do we think about, you know, sources and uses to kind of fill that gap?

To your point, we now are a seasoned private placement issuer. We’ve got access to the bank market. We have a 0% secured debt ratio, and we now have access on the ATM. It’s a pretty wide range or a pretty broad menu we now have of options as we think through. I would just tell you, the way we think about it is consistent with the way we thought about it at SITE Centers and the way we thought about it last year, plus, where if equity at one point in time was accretive to the business plan, we would consider it. But we also like, to your point, to start to build up a market and build up a nice ladder on the private placement market, which we’re already seeing a compression in spreads as we continue to tap that market.

So I, I would just tell you, it’s a really wide range of menus of options, which is a fantastic spot to be. And over the course of the year, we’ll decide what’s the best path. But we just have, you know, I would just say, dramatic optionalities, given where we are from a leverage perspective, which is fantastic.

Craig Mailman, Analyst, Citigroup: Great. Thank you.

Conor Fennerty, Chief Financial Officer, Curbline Properties: You’re welcome.

David Lukes, Chief Executive Officer, Curbline Properties: Thanks, Craig.

Operator: Your next question comes from a line of Todd Thomas from KeyBanc Capital Markets. Your line is open.

Todd Thomas, Analyst, KeyBanc Capital Markets: Hi, thanks. Good morning. I wanted to go back to acquisitions and some of the comments that you made about having visibility on, on, you know, around half of the $700 million factored into guidance. Are these all single, you know, single-off deals, or are you seeing any portfolios included in the pipeline? And then, is there a limit on the amount of volume that you can do in any given year? Are there any constraints, you know, either around your appetite or, or the amount that you, you might be able to, to achieve in terms of acquisitions?

David Lukes, Chief Executive Officer, Curbline Properties: Good morning, Todd. It’s David. I would say that the first part of your question is that to date, our pipeline is almost exclusively, actually, it is exclusively single asset acquisitions. So I would say this is the one-at-a-time baseline. And I think, as you know, when we went public, we did have a question mark as to how much of our deal flow was gonna be portfolios versus individual assets. I think what we found is, the more of our G&A that we’ve allocated towards the transaction side of the business and the more people we’ve been able to move into the field and build relationships, the more deal flow has come to us.

I would say every quarter that goes by, we’re starting to see more inventory that fits our criteria, as opposed to simply sifting through all of the inventory that’s on the market. It is a very, very large asset class, and the addressable market for us, even if you look at the top quartile, is still a significant amount of deal volume. So I would say our confidence that we can achieve a baseline of our budget simply doing one-off deals is pretty high. If portfolios do come up, I think it’s great. I would say that so far, portfolios have been episodic as opposed to kind of a normal quarterly run rate.

And given the fact that there’s so much inventory on the one-offs that fit all of our filters in terms of quality, I think we’re less aggressive with having to stretch for portfolios that might have assets in them that we don’t want. So I think that probably answers your question, but our confidence is really high that the individual brokerage community and the sellers are starting to approach us with deals that we really find attractive.

Todd Thomas, Analyst, KeyBanc Capital Markets: Okay, that’s helpful. And then, I wanted to just ask, it looked like there was, perhaps a disposition in the quarter, perhaps something small. Just curious if you can discuss that. And it seems like there would not be, you know, really much in the way of dispositions, you know, just given your, you know, sort of designing and constructing the portfolio from, from scratch in some sense, but any, any sort of dispositions or, you know, kind of asset management, you know, sort of associated activity that, that you’re, you know, sort of anticipating in 2026?

David Lukes, Chief Executive Officer, Curbline Properties: Yeah, Todd, it’s David again. As we’ve said prior, you know, one of the benefits of building a portfolio one at a time is that you don’t really have the need to recycle. We don’t have in our budget any dispositions planned. Our business plan is not about recycling. We’re purely based on buying things that we wanna own over the long term. Every now and then, from an asset management perspective, something might come up where it simply is better to sell it. In particular, the asset this last quarter, which was very small, happened to be adjacent to a property that SITE Centers owned.

They offered us a price to buy that asset that we thought was attractive because the cost to change out a tenant and do some work on it was such that we felt it was better to exit and sell to SITE Centers. SITE Centers, on the other hand, felt like they got more liquidity from owning an adjacent parcel with a property that they’re trying to sell. Again, it was quite small. It went to both boards for approval, which are separate boards, as you know. But I don’t expect this to be a recurring issue.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Todd, just to expand on that, it was a vacant piece of land. So to David’s point, it was sub $2 million, and there’s nothing in the 2026 budget for further dispositions.

Todd Thomas, Analyst, KeyBanc Capital Markets: Okay, great. Thank you.

David Lukes, Chief Executive Officer, Curbline Properties: Thanks, Todd.

Operator: ... Your next question comes from the line of Hong Zhang from J.P. Morgan. Your line is open.

David Lukes, Chief Executive Officer, Curbline Properties: Yeah, hey. I guess I was wondering if you could talk a little bit about your expectations for the cadence of lease commencements this year?

Conor Fennerty, Chief Financial Officer, Curbline Properties: Sure, Hong. I guess I would, I would respond by kind of giving the framework of same property NOI, ’cause they should go hand in hand. We do expect an acceleration in the first quarter from the fourth quarter on same property, and then a modest deceleration in the second quarter, which is a comp on uncollectible revenue and just on some CapEx recovery items. And then to my response, I think it was to Floris earlier, we do expect a pretty big pickup in the back half of the year, from commencements of the spaces re-recaptured in the fourth quarter. So, I would expect that gap to compress on the same property to accelerate in the third and the fourth quarter.

David Lukes, Chief Executive Officer, Curbline Properties: Got it. Thank you.

Conor Fennerty, Chief Financial Officer, Curbline Properties: You’re welcome.

Operator: Your next question comes from the line of Alexander Goldfarb from Piper Sandler. Your line is open.

Alexander Goldfarb, Analyst, Piper Sandler: Hey, good morning. So just following up on the capital questions. You know, David, you’ve been speaking for some time about the growth profile, the double-digit growth profile over a number of years. Your acquisition pace has been tremendous, and as Conor pointed out, there’s no slowdown in deal flow. Does your, like, trajectory, as you think about norm- debt normalization, has that accelerated, meaning that instead previously, if you thought, thinking maybe you had five years of runway before you get to debt normalization, maybe that’s sooner, in which case, that double-digit growth profile that you guys outlined may actually truncate? Or the way you see it, you still are fine for the next, I think you talked about five years, where you can grow, you know, sort of in this, double digit way without, you know, capital events, slowing that down?

David Lukes, Chief Executive Officer, Curbline Properties: Morning, Alex. It’s David. I can turn it over to Conor for the long-term business plan, but I think the short story is accurate, in that when we went public, we had a five-year business plan, and we had a $500 million a year guidance, what we thought we could do in the first year, and we obviously exceeded that last year, and I think our budget for this year is certainly higher as well. So I think by definition, that five-year business plan has compressed. On the other hand, I feel like the addressable market has also revealed itself to be surprisingly strong, and I think our reliance on portfolio deals has certainly gone down in our own minds.

The confidence that that cadence will continue is equally as high, but there’s no question that the business plan has been pulled forward a little bit.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Yeah, Alex, just expanding on that, I would say the two other significant variances would be, one, we’ve outperformed dramatically on operations versus our initial expectations. That obviously has driven a higher level of EBITDA, more retained cash flow, which extends the timeline. To David’s point, we’ve bought more quickly, which compresses it. And then the second thing is, we’ve already issued some equity. And just given how small our denominator is, that equity issuance, you know, expands the pipeline. So whether the 5-year business plan is now 4.5 or, or, you know, 4.25, you know, I’m not sure, but there are other factors that have limited our near-term needs for equity. And again, we just have so much optionality with the balance sheet that that runway is still pretty long today.

Alexander Goldfarb, Analyst, Piper Sandler: Okay, and then the second question is, Conor, it seems like SITE is, you know, could well end up, you know, coming to an end, I guess, this year. Just that’s our, our math. I don’t want to put words in their company’s face, their name. But, your 2026 guidance, does that contemplate sort of a complete wind down, separation, payment, settlement, whatever, resolution from SITE? Or if something happens there, there would be some update to your guidance?

Conor Fennerty, Chief Financial Officer, Curbline Properties: Yeah, it’s a good question, Alex. So we have assumed the status quo in guidance with no changes to the Shared Services Agreement in 2026. Now, as you know, though, if it’s terminated by SITE on the two-year anniversary, which is October 1, 2026, there would be a pretty significant fee paid by SITE to Curbline, which would more than offset, in our view, any expenses associated with the transition. So, it would be a good guy of sorts if it did occur in 2026. Given that, to your point, it’s a decision by the independent board of SITE and Curbline to terminate it. We didn’t feel it was appropriate to put in our budget, but it would be a good guy in any scenario.

Alexander Goldfarb, Analyst, Piper Sandler: Okay, and just if I could just follow up that, I know you’re not giving 2027 guidance, but as we think about our 2027, is there something that you would tell us to think about as we model 2027, or you would just say, "Hey, leave everything status quo right now, and, you know, we’ll deal with that a year from now in the February call?

Conor Fennerty, Chief Financial Officer, Curbline Properties: It would be the latter, in my opinion.

Alexander Goldfarb, Analyst, Piper Sandler: Okay, thank you.

Conor Fennerty, Chief Financial Officer, Curbline Properties: You’re welcome.

David Lukes, Chief Executive Officer, Curbline Properties: Thanks, Alex.

Operator: Your next question comes from a line of Floris van Dijkum from Compass Point Research. Your line is open.

David Lukes, Chief Executive Officer, Curbline Properties: Hey, guys. Just a quick follow-up question, if you don’t mind. I was just... The SITE prompted something about your G&A. And maybe if you can talk a little bit about where—what you think your G&A is gonna be on a going-forward basis, once, you know, the agreement is settled down, and what needs to happen internally to make sure you’re properly aligned.

Conor Fennerty, Chief Financial Officer, Curbline Properties: Sure, Floris, it’s Conor. So, we mentioned prior to the spin-off that we felt that Curbline could be as, if not more efficient than SITE as it relates to G&A as a percentage of GAV, which is how we look at expenses. That was about 1.1% or 1% of GAV. To Alex’s question from a moment ago, what are some factors or things that have changed? And I would just tell you, one, is operational performance. Two, we realized we could run this business more efficiently. And so, as I mentioned in my prepared remarks, we’re paying about $1 million per quarter to SITE. Effectively, what we’ve said to folks is, that fee would essentially just be replaced by the cost that would come over from SITE once that agreement is terminated.

So it’s a long, inelegant way of saying, we feel like we’ve got great visibility. We’re spending an inordinate amount of time on the expense structure of Curbline, and I would just tell you, if we look back versus two years ago, it is extremely... It’s more efficient. Our expectations will be more efficient today than it was pre-spin-off. Other than that, to Alex’s point, once we have clarity on the exact timing of the resolution and termination of the SSA, we’ll provide the specifics, but I would just tell you, we expect to run really efficiently, pro forma for the termination.

David Lukes, Chief Executive Officer, Curbline Properties: But 1%-1.5% of GAV is sort of a good benchmark?

Conor Fennerty, Chief Financial Officer, Curbline Properties: No, what I said was 1%-1.1% of GAV, and what we’re saying is Curb, we expect to be more efficient than that.

David Lukes, Chief Executive Officer, Curbline Properties: Got it. Got it.

Conor Fennerty, Chief Financial Officer, Curbline Properties: That was just after we deployed the $2.5 billion initial business plan. Once you get through that, then you really start to scale the expense. Coming back to your first question from the start of the call, then you really start to scale the corporate expenses, and that’s where you start to generate pretty significant EBITDA growth.

David Lukes, Chief Executive Officer, Curbline Properties: Thanks, Conor.

Conor Fennerty, Chief Financial Officer, Curbline Properties: You’re welcome.

Operator: We have reached the end of our question and answer session. I will now turn the call back over to David Lukes for closing remarks.

David Lukes, Chief Executive Officer, Curbline Properties: Thank you all very much for joining our call, and we look forward to speaking with you next quarter.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.