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Curbline Properties Corp. (NYSE:CURB), a real estate company with a market capitalization of $2.43 billion, disclosed Thursday that it has entered into a Note and Guaranty Agreement for a private placement of $150 million in unsecured senior notes through its subsidiary, Curbline Properties LP. According to InvestingPro data, the company maintains strong financial health with more cash than debt on its balance sheet. The announcement was made in a press release statement filed with the Securities and Exchange Commission.
The notes will be issued in two tranches: $100 million of 5.58% unsecured senior notes due September 3, 2030, and $50 million of 5.87% unsecured senior notes due September 3, 2032. An interest rate lock agreement resulted in a 5.79% effective interest rate for the 2032 notes and a weighted average coupon of 5.65% for the total issuance. The company’s conservative approach to leverage is evident in its low total debt to capital ratio of just 4%, as reported by InvestingPro.
Interest on the notes will be paid semi-annually in arrears on March 3 and September 3 each year, with the full principal due at maturity. The notes are senior unsecured obligations of the operating partnership and are unconditionally guaranteed by Curbline Properties Corp. They will rank equally in right of payment with all other senior unsecured indebtedness of the operating partnership.
The company has the option to prepay the notes in whole or in part, provided the amount is not less than 5% of the aggregate principal outstanding. Prepayment will be at 100% of the principal plus a make-whole amount, calculated as the excess, if any, of the discounted value of remaining scheduled payments over the principal being prepaid. In the event of a change in control, the company must offer to prepay the notes at 100% of the principal plus accrued and unpaid interest, but without the make-whole amount.
The Note Agreement includes customary covenants, such as limits on total leverage, secured leverage, unencumbered leverage, and requirements for minimum fixed charge and unsecured interest coverage ratios.
The sale and purchase of the notes is scheduled for September 3, 2025, pending customary closing conditions. Net proceeds are expected to be used for general corporate purposes, including funding future acquisitions. The notes are being offered and sold in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933. With a current ratio of 16.03 and impressive revenue growth of 31.9% in the last twelve months, InvestingPro analysis reveals the company is well-positioned for expansion while maintaining a solid 2.84% dividend yield for investors.
All information is based on the company’s press release statement filed with the SEC.
In other recent news, Curbline Properties Corp reported its Q1 2025 earnings, revealing steady financial growth. The company achieved earnings per share of $0.10 and revenue of $38.44 million, aligning with market expectations. Curbline also revised its operational funds from operations guidance upwards to a range of $0.99 to $1.20 per share. In terms of strategic movements, Curbline acquired 11 properties for $124 million, enhancing its portfolio and achieving a leased rate of 96%. Analyst firms have shown varied responses, with Stifel maintaining a Buy rating and KeyBanc Capital Markets holding a Sector Weight rating, noting strong performance despite potential macroeconomic challenges. At the annual stockholders’ meeting, two Class I directors were elected, and PricewaterhouseCoopers LLP was ratified as the independent accounting firm. The company continues to enjoy positive engagement from potential tenants, supporting its strategic market positioning.
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