Curbline Properties stock offers unique retail investment opportunities, says KeyBanc By Investing.com
On Monday, KeyBanc Capital Markets initiated coverage on the stock of Curbline Properties Corp (NYSE: CURB ), a real estate investment trust (REIT), with a Sector Weight rating.
An analyst from KeyBanc noted that Curbline Properties, which recently completed SITE Centers (NYSE: ) on October 1, 2024, operates a portfolio of 78 condo buildings, comprising approximately 2.6 million square feet of gross leasable space ( GLA).
Curbline Properties is seen as a growing, high-potential business, offering investors a unique opportunity within the retail real estate sector. The company is expected to have higher internal growth compared to its peers, mainly because its portfolio is mostly made up of smaller retail tenants with year-on-year ladders. Additionally, the company benefits from sector-leading operating income (NOI) margins.
The KeyBanc analyst also highlighted that Curbline's capital expenditure is low compared to peers, which could enable the company to reinvest retained earnings into higher yields, thereby accelerating earnings and net asset value (NAV) growth.
In addition, the company's balance sheet is considered unmatched in the publicly traded REIT market, with no debt and $800 million available to support profitable external growth.
Despite these positive attributes, KeyBanc's analysis suggests that the stock's current price already indicates a potential growth premium for Curbline compared to its peers. The company has indicated that it will take a positive stance on the stock if it declines in price.
InvestingPro Insights
The latest data from InvestingPro sheds more light on Curbline Properties Corp's (NYSE:CURB) market performance. The company's market capitalization stands at $2.46 billion, indicating its significant presence in the REIT sector. Despite a slight dip of 3.74% over the past week, CURB has shown strong growth over the long term, with an impressive return of 18.09% over the past month, three months, six months, and year to date.
This strong performance is consistent with KeyBanc's assessment of Curbline as a high-growth business within the retail real estate sector. The stock's previous closing price was $23.44, with a daily trading volume of 1.99 million shares over the past three months, indicating healthy investor interest.
InvestingPro Tips highlights that Curbline Properties has a high return on investment, supporting the analyst's view of the company's ability to successfully reinvest earnings. In addition, the company's strong capital position is noted, confirming KeyBanc's observation of Curbline's unmatched balance sheet in the REIT market.
For investors seeking a deeper understanding of the potential of Curbline Properties, InvestingPro offers 8 additional tips, providing comprehensive analysis to inform investment decisions on this newly launched REIT.
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