Roland Kamdem's questions to Site Centers Corp (SITC) leadership • Q1 2024
Question
Roland Kamdem inquired about the acquisition cap rates and expected IRRs for Curbline assets and how the CapEx profile for Curbline will compare to SITE Centers' historical spending.
Answer
CEO David Lukes stated that acquisition cap rates are in the low-to-mid 6% range, but unlevered IRRs are higher than other retail formats due to significantly lower CapEx needs. CFO Conor Fennerty quantified this, explaining that Curbline's CapEx is projected to be sub-10% of NOI, a dramatic difference from the industry's 20-30% range, which is a core part of the investment thesis.