Roughly a year after its spinoff, Curbline Properties has beefed up its portfolio by acquiring 69 convenience shopping centers for a total price of $644.1 million.
The Beachwood, Ohio-based landlord offered an update on its buying binge when it reported third-quarter earnings on Tuesday. On Oct. 1 last year, Curbline was spun off as a standalone real estate investment trust by Site Centers, a shopping center owner. At the time, Curbline had roughly 80 convenience centers, also known as strip malls.
Now Curbline has roughly doubled that number, owning 162 properties across the country, according to regulatory filings.
Curbline is focused on convenience centers — defined as retail sites without a big-box or grocery store to anchor them — and says it is the only pure-play REIT in that sector. It targets shopping strips "positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban, high household income communities," according to the company. Those types of properties generate lots of foot traffic as customers come to them frequently to run daily errands, according to Curbline.
“Curbline remains uniquely positioned in the public real estate sector as it looks to scale the first public real estate company focused exclusively on convenience properties given its differentiated investment focus, the leasing economics of the company’s property type, and its balance sheet,” David Lukes, the REIT's president and CEO, said in a statement.
During the third quarter, Curbline reported that it acquired 37 convenience shopping centers for an aggregate price of $336.1 million. Then in October, during the fourth quarter, it picked up two more centers for $29 million. Curbline purchased Springs Ranch Center in Colorado Springs, Colorado, and French Creek Square in Avon, Ohio, earlier this month. Those deals brought the REIT's year-to-date acquisitions to 69 convenience centers for a total of $644.1 million.
Piper Sandler in a note pointed out that Curbline has raised its goal for purchases for this year.
"The increased acquisition target (now $750 million-plus versus original $500 million) speaks to the opportunity," Piper Sandler said.
In contrast to Curbline, Site continues to shed properties. Most recently, Site said it had deals in place to sell four shopping centers for $263.6 million, including two in New Jersey.