Compass Point starts on Curbline Properties with neutral rating

Investing.com — Compass Point has initiated coverage of Curbline Properties Corp (NYSE:CURB) with a “neutral” rating and a price target of $24 given company’s unique focus on unanchored convenience properties and its low-leverage model.

Spun out from Site Centers in October 2024, CURB owns 97 properties, primarily in suburban markets across the Southeast and Southwest, including Miami, Atlanta, and Phoenix. The company operates with no debt and plans to fund acquisitions using an $800 million cash balance and expected unsecured debt issuance in 2025, enabling potential portfolio doubling without equity raises.

Shares of CURB trade at a slight discount to NAV but command a premium valuation of 23.7x projected 2025 FFO of $0.99, reflecting its growth prospects. Despite a 15% rise since listing, Compass Point remains cautious, noting the need for CURB to demonstrate consistent public market performance and growth execution before justifying further premium multiples.

With plans to become the largest unanchored convenience space owner in the U.S., CURB’s growth trajectory will depend on strategic acquisitions and efficient leverage management.