Curbline Properties secures $150 million term loan facility with PNC Bank

Curbline Properties Corp. (NYSE:CURB) announced this week that it has entered into a $150 million term loan agreement with PNC Bank, National Association, acting as administrative agent, and a group of lenders. The agreement, signed Tuesday, also includes Curbline’s subsidiary, Curbline Properties LP, as borrower.

According to a statement based on the company’s SEC filing, the proceeds from the term loan facility are intended for general corporate purposes, including funding future acquisitions. The facility allows for an increase in the aggregate amount available up to $250 million, provided that existing or new lenders agree to supply additional commitments and certain customary conditions are met.

The loan matures in January 2029, with two one-year extension options that could potentially extend the maturity to January 2031 at the operating partnership’s discretion, contingent on meeting certain conditions. Interest on the term loan is variable, with rates determined by the company’s choice of either the term or daily simple SOFR rate plus an applicable margin, or an alternative base rate plus an applicable margin. The applicable margin is tied to credit ratings from S&P Global Ratings, Moody’s Investors Service, or Fitch Ratings.

In May, Curbline entered into a $150 million forward interest rate swap agreement to fix the SOFR component of the loan at 3.659% from July 16, 2025, through January 1, 2031. This results in an all-in fixed rate of 4.609% based on the current spread.

The term loan agreement permits prepayment at any time without premium or penalty, subject to customary breakage costs for SOFR-based borrowings. The agreement includes standard covenants related to leverage, debt service coverage, and fixed-charge coverage ratios, as well as limitations on asset sales and certain mergers and acquisitions. Default provisions include failure to make timely payments or to pay other significant indebtedness after applicable grace periods.

This summary is based on a press release statement and details disclosed in the company’s recent SEC filing.

In other recent news, Curbline Properties Corp. reported its first-quarter 2025 earnings, revealing a steady increase in financial performance. 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 addition, Curbline announced a private placement of $150 million in unsecured senior notes, with proceeds intended for general corporate purposes and funding future acquisitions.

Stifel analysts reaffirmed a Buy rating for Curbline Properties, maintaining a price target of $26.00, citing confidence in the company’s strategic positioning. Meanwhile, KeyBanc Capital Markets maintained a Sector Weight rating, emphasizing the company’s strong performance in the first quarter and noting potential upside if the macroeconomic environment remains stable. Furthermore, Curbline Properties held its annual stockholders’ meeting, where two Class I directors were elected, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year.

Curbline’s management highlighted a shift in leasing dynamics, noting increased tenant interest due to the uniformity of their small-shop spaces. The company’s portfolio has expanded with the acquisition of 11 properties for $124 million, boosting its market presence. With a leased rate of 96% and strong leasing volumes, Curbline continues to demonstrate resilience in the convenience property sector.

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