Curbline Properties dips on pricing $204 mln stock offering

Shares of real estate investment trust Curbline Properties CURB.N down 1.4% before the bell to $25.36 after overnight follow-on priced

New York City-based owner of suburban convenience shopping centers late Tues announced 8 mln shares for expected gross proceeds of $204 mln on a forward basis

Offering price equates to $25.50, which is 0.1% discount to stock's last close

CURB entered into 18-month forward sale agreements with bookrunners Morgan Stanley and BofA

Upon settlement of agreements, it anticipates using net proceeds for general purposes, including funding acquisition of properties, working capital and capex, and repaying debt

Co has ~105.4 mln shares outstanding

A forward sale structure allows the REIT to lock in current stock price and delays new share issuance and collecting proceeds until they are needed, consequently avoiding immediate dilution

Co early Mon reported Q4 FFO/sh of 29 cents, above consensus view of 27 cents, per LSEG data

Through Tues close, CURB shares up 11% YTD. During the session, stock hit highest intraday level ($26.03) since co was spun out of Site Centers SITC.N in 2024

8 of 9 analysts rate the stock "strong buy" or "buy", 1 rates "hold"; median PT $27