JPMorgan Starts Curbline Properties Corp (CURB) at Overweight

JPMorgan analyst Michael Mueller initiates coverage on Curbline Properties Corp (NYSE: CURB) with a Overweight rating and a price target of $25.00.

The analyst comments: "Curbline was spun out from SITE Centers (SITC – N) on October 1, 2024 and is the go-forward vehicle that management will operate as while the remaining SITC assets are liquidated. CURB's strategy in the strip center REIT space is a unique one as it focuses on smaller-format, unanchored, convenience centers that are generally situated along the curbline of major streets/intersections and have easy access. We like the business and the potential for the stock. What we see as most intriguing is that CURB starts its public life with a completely unleveraged balance sheet and ~$800 million of cash on hand. This is significant dry powder and should enable the company to drive above-average bottom-line FFO/share growth near-term via an acquisition strategy that targets ~$500 million annually. Additionally, as it relates to core operations, its inline-only tenant base offers significant tenant diversification, strong overall in-place rent escalators, and the potential for a lower cap-ex spend. In terms of risks, we believe that CURB's acquisition activity will be front-and-center for the Street which could translate into a stock headwind if activity does not pan out as expected, particularly as the stock trades at relative premiums to the strips."

For an analyst ratings summary and ratings history on Curbline Properties Corp click here. For more ratings news on Curbline Properties Corp click here.

Shares of Curbline Properties Corp closed at $22.60 yesterday.

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