Curbline Properties Corp. (NYSE: CURB)

Sector: Real Estate Industry: REIT - Retail CIK: 0002027317
Market Cap 2.91 Bn
P/B 1.53
P/E 73.16
P/S 15.93
ROIC (Qtr) 1.32
Div Yield % 2.48
Rev 1y % (Qtr) 55.05
Total Debt (Qtr) 423.24 Mn
Debt/Equity (Qtr) 0.22
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About

Investment thesis

Bull case

  • Operating cash flow of 124.60M provides exceptional 2396.17x coverage of minority interest expenses 52000, showing strong core operations.
  • Operating cash flow of 124.60M provides exceptional 10.26x coverage of interest expenses 12.14M, showing strong debt service capability.
  • Strong tangible asset base of 2.33B provides 5.51x coverage of total debt 423.24M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 124.60M provides 3.67x coverage of SG&A expenses 33.92M, showing efficient operational cost management.
  • Robust free cash flow of 109.03M exceeds capital expenditure of 15.57M by 7x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 124.60M barely covers its investment activities of (803.25M), with a coverage ratio of -0.16, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 124.60M provides thin coverage of dividend payments of (77.38M) with a -1.61 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 289.55M provide limited coverage of acquisition spending of (787.68M), which is -0.37x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 51.97M show weak coverage of depreciation charges of 72.41M, with a 0.72 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 72.41M relative to operating cash flow of 124.60M, which is 0.58x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the REIT - Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SPG Simon Property Group Inc. 62.65 Bn 27.30 11.19 26.32 Bn
2 O Realty Income Corp 15.99 Bn 61.56 15.32 28.37 Bn
3 KIM Kimco Realty Corp 14.22 Bn 20.86 8.63 8.35 Bn
4 REG Regency Centers Corp 14.06 Bn 27.37 9.05 4.98 Bn
5 PECO Phillips Edison & Company, Inc. 11.82 Bn 3,838.00 46.61 2.38 Bn
6 FRT Federal Realty Investment Trust 8.00 Bn 23.50 8.55 5.03 Bn
7 EPRT Essential Properties Realty Trust, Inc. 6.41 Bn 25.34 11.42 2.51 Bn
8 ADC Agree Realty Corp 5.53 Bn 44.48 15.36 3.29 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.17 1.13
EV to Cash from Ops. EV/CFO 23.12 22.52
EV to Debt EV to Debt 6.81 2.49
EV to EBIT EV/EBIT 55.42 42.49
EV to EBITDA EV/EBITDA 27.96 19.89
EV to Free Cash Flow [EV/FCF] EV/FCF 26.42 27.13
EV to Market Cap EV to Market Cap 0.99 461,431.31
EV to Revenue EV/Rev 15.75 13.31
Price to Book Value [P/B] P/B 1.53 3.17
Price to Earnings [P/E] P/E 73.16 177.24
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.51 0.69
Dividend Payout Ratio % Div Payout % (Qtr) 181.10 169.12
Dividend per Basic Share Div per Share (Qtr) 0.67 2.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 64.73 -68.66
Interest Coverage Int. cover (Qtr) 4.28 2.52
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 12.48 -12.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -53.78 68.41
Dividend Growth (1y) % Div 1y % (Qtr) 168.00 13.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 365.56 224.52
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 35.85 0.11
EBIT Growth (1y) % EBIT 1y % (Qtr) 365.56 222.92
EBT Growth (1y) % EBT 1y % (Qtr) 288.12 290.94
EPS Growth (1y) % EPS 1y % (Qtr) 270.00 273.30
FCF Growth (1y) % FCF 1y % (Qtr) 198.94 -81.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 46.82 6.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.07 0.12
Cash Payout Ratio Cash Payout (Qtr) 0.55 0.14
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.22 -2.59
Interest Cover Ratio Int Coverage (Qtr) 4.28 2.52
Times Interest Earned Times Interest Earned (Qtr) 4.28 2.52
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 68.00 78.58
EBIT Margin % EBIT Margin % (Qtr) 28.42 45.34
EBT Margin % EBT Margin % (Qtr) 21.78 25.50
Gross Margin % Gross Margin % (Qtr) 74.90 73.99
Net Profit Margin % Net Margin % (Qtr) 21.80 23.85