Jefferies initiated coverage of Curbline Properties Corp (NYSE: CURB) with a buy rating and a $36 price target, representing roughly 21% upside from the $29.78 closing price.
The firm highlighted the company’s position as the first and only public REIT focused exclusively on convenience centers—small-format, unanchored retail strips located at high-traffic suburban intersections. These properties, historically held by private operators, benefit from low capital expenditure requirements, Jefferies noted.
Curbline’s portfolio spans approximately 950 million square feet, with standardized units averaging 26,000 square feet. Capital expenditures for such properties are among the lowest in real estate, at roughly 8% of net operating income, according to the firm. Internal growth drivers include 3% annual contractual rent increases, renewal spreads, and roughly 30% of local tenants rolling to market rates.
Since its October 2024 spin-off, Curbline has acquired more than $1.5 billion in assets, including a record $374 million in the second quarter of 2026. The company has revised its fiscal 2026 acquisition target to $1.0 billion, executing transactions at low-6% capitalization rates against an estimated 5% cost of debt.
Jefferies projects mid-teens funds-from-operations (FFO) growth and an approximate 9% compound annual growth rate in adjusted FFO. Revenue rose nearly 55% over the last twelve months, while net operating income increased 12% sequentially and more than 50% year-over-year in the second quarter of 2026. Earnings for the period were $0.06 per share on revenue of $63.29 million.
The initiation follows a recent price-target increase by KeyBanc, which raised its target to $34 with an Overweight rating.
