Curbline Properties Announces Tax Basis

Rhea-AI Summary

Curbline Properties Corp. (NYSE: CURB) has completed its separation from SITE Centers Corp. (NYSE: SITC) on October 1, 2024, becoming an independent publicly traded company. The separation involved a distribution where SITC shareholders received two CURB common shares for every SITC common share held as of September 23, 2024.

The fair market value of CURB's common stock for federal income tax purposes has been determined to be $22.29 per share, based on the average closing price during its first three trading days. The impact of this distribution on SITC shareholders' tax basis will be detailed in an IRS Form 8937, expected to be available on SITE Centers' website in Q1 2025.

Positive

• Successful completion of separation from SITE Centers Corp.
• Establishment as an independent publicly traded company
• Distribution ratio of two CURB shares for every SITC share
• Fair market value of CURB stock determined at $22.29 per share

Negative

• None.

Insights

Financial Analyst

This announcement provides important tax information for investors who received CURB shares in the spinoff from SITE Centers. The fair market value of $22.29 per CURB share is a key figure for calculating capital gains or losses when these shares are eventually sold. This valuation, based on the first three trading days, seems reasonable and in line with typical spinoff practices.

While this news doesn't directly impact CURB's current operations or financials, it's important for shareholders' tax planning. The pending information about the impact on SITC shareholders' cost basis will be critical for those who held SITC shares through the distribution. This transparency in tax reporting is positive for investor relations, though the delay until Q1 2025 for full details is longer than ideal.

For CURB, with a market cap of $2.3 billion, this spinoff represents a significant event. Investors should closely monitor the company's performance as an independent entity, focusing on its property portfolio, occupancy rates and dividend policy going forward.

NEW YORK--(BUSINESS WIRE)-- On October 1, 2024, Curbline Properties Corp. (NYSE: CURB) (“CURB” or “Curbline”) completed its separation from SITE Centers Corp. (NYSE: SITC) (“SITC”) and became an independent publicly traded company. In the separation, SITC distributed two CURB common shares for every SITC common share held by SITC shareholders on the close of business on September 23, 2024 (the “Distribution”).

The fair market value of CURB’s common stock received by SITC shareholders in the Distribution for federal income tax purposes has been determined to be $22.29 per share based on the average closing price per share of CURB’s common stock on its first three trading days beginning October 1, 2024.

The impact of the Distribution on SITE Centers shareholders’ basis in SITC common stock will be determined after the taxable year closes and will be noted on IRS Form 8937 with details expected to be available on SITE Centers’ website at www.sitecenters.com in the first quarter of 2025.

About Curbline Properties

Curbline is an independent, publicly traded company trading under the ticker symbol “CURB” on the NYSE. Curbline is an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban, high household communities. Curbline plans to elect to be treated as a REIT for U.S. federal income tax purposes. Additional information about Curbline is available at www.curbline.com. To be included in the Company’s e-mail distributions for press releases and other investor news, please click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241004736085/en/

Conor Fennerty

EVP and Chief Financial Officer

(216) 755-6200

Source: Curbline Properties Corp.

FAQ

When did Curbline Properties (CURB) complete its separation from SITE Centers?

Curbline Properties (CURB) completed its separation from SITE Centers on October 1, 2024.

What was the distribution ratio for CURB shares in the separation from SITE Centers?

SITE Centers shareholders received two CURB common shares for every SITC common share held on September 23, 2024.

What is the fair market value of Curbline Properties (CURB) stock for tax purposes?

The fair market value of CURB stock for federal income tax purposes has been determined to be $22.29 per share.

When will information about the tax impact of the CURB distribution be available?

Details about the tax impact of the CURB distribution are expected to be available on SITE Centers' website in the first quarter of 2025.