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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 5, 2020
 
SAUL CENTERS, INC.
(Exact name of registrant as specified in its charter)
Maryland1-1225452-1833074
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification Number)
7501 Wisconsin Avenue, Bethesda, Maryland 20814
(Address of principal executive office) (Zip Code)
Registrant’s telephone number, including area code (301) 986-6200
Not Applicable
(Former name or former address, if changed since last report)
_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
Name of exchange on which registered:
Trading symbol:
Common Stock, Par Value $0.01 Per ShareNew York Stock ExchangeBFS
Depositary Shares each representing 1/100th of a share of 6.125% Series D Cumulative Redeemable Preferred Stock, Par Value $0.01 Per ShareNew York Stock ExchangeBFS/PRD
Depositary Shares each representing 1/100th of a share of 6.000% Series E Cumulative Redeemable Preferred Stock, Par Value $0.01 Per ShareNew York Stock ExchangeBFS/PRE
    Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
    Emerging growth company
    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    



Item 2.02. Results of Operations and Financial Condition.  
On November 5, 2020, Saul Centers, Inc. issued a press release to report its financial results for the quarter ended September 30, 2020. The release is furnished as Exhibit 99.1 hereto.


Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
99.1 Press Release, dated November 5, 2020, of Saul Centers, Inc.

104.    Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).




SIGNATURES
    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                        SAUL CENTERS, INC.
                        By:    /s/ Scott V. Schneider
                            Scott V. Schneider
Executive Vice President, Chief Financial Officer and Treasurer
                                                                                        
Dated: November 5, 2020    


Document

EXHIBIT INDEX
Exhibit        Description
No.
99.1         Press Release, dated November 5, 2020, of Saul Centers, Inc.
Section 2: EX-99.1 (EX-99.1)
Exhibit 99.1
SAUL CENTERS, INC.
7501 Wisconsin Avenue, Suite 1500, Bethesda, Maryland 20814-6522
(301) 986-6200
Saul Centers, Inc. Reports Third Quarter 2020 Earnings
November 5, 2020, Bethesda, MD.
    Saul Centers, Inc. (NYSE: BFS), an equity real estate investment trust ("REIT"), announced its operating results for the quarter ended September 30, 2020 (“2020 Quarter”). Total revenue for the 2020 Quarter decreased to $56.8 million from $57.1 million for the quarter ended September 30, 2019 (“2019 Quarter”). Net income decreased to $11.6 million for the 2020 Quarter from $15.3 million for the 2019 Quarter. The Waycroft mixed-use development opened in April 2020 and, as of November 3, 2020, applications have been received for 303 residential leases, totaling approximately 62% of the available units, and 258 units were occupied. Concurrent with the opening in April, interest, real estate taxes and all other costs associated with the residential portion of the property, including depreciation, began to be charged to expense, while revenue continues to grow as occupancy increases. As a result, compared to the 2019 Quarter, net income for the 2020 Quarter was adversely impacted by $2.4 million due to the initial operations of The Waycroft. Net income also decreased from the 2019 Quarter due to higher credit losses on operating lease receivables and corresponding reserves (collectively, $1.5 million). Net income available to common stockholders decreased to $6.6 million ($0.28 per diluted share) for the 2020 Quarter from $9.0 million ($0.39 per diluted share) for the 2019 Quarter.
    Same property revenue decreased $2.7 million (4.7%) and same property operating income decreased $1.8 million (4.3%) for the 2020 Quarter compared to the 2019 Quarter. We define same property revenue as total revenue minus the revenue of properties not in operation for the entirety of the comparable reporting periods. We define same property operating income as net income plus (a) interest expense, net and amortization of deferred debt costs, (b) depreciation and amortization of deferred leasing costs, (c) general and administrative expenses and (d) change in fair value of derivatives minus (e) gains on sale of property and (f) the results of properties which were not in operation for the entirety of the comparable periods. Shopping Center same property operating income for the 2020 Quarter totaled $31.1 million, a $1.3 million decrease from the 2019 Quarter. Mixed-Use same property operating income totaled $9.6 million, a $0.6 million decrease from the 2019 Quarter. The decrease in Shopping Center same property operating income was primarily the result of (a) higher credit losses on operating lease receivables and corresponding reserves (collectively, $1.4 million) and (b) lower lease termination fees ($0.4 million), partially offset by (c) higher base rent ($0.4 million). The decrease in Mixed-Use same property operating income was primarily the result of (a) lower residential base rent ($0.3 million), (b) higher credit losses on operating lease receivables and corresponding reserves (collectively, $0.2 million) and (c) lower parking income, net of parking expenses ($0.2 million), partially offset by (d) higher lease termination fees ($0.2 million).
    As of September 30, 2020, 94.0% of the commercial portfolio was leased (not including the residential portfolio), compared to 94.8% at September 30, 2019. On a same property basis, 93.9% of the commercial portfolio was leased as of September 30, 2020, compared to 94.8% at September 30, 2019. As of September 30, 2020, the residential portfolio was 73.9% leased compared to 97.9% at September 30, 2019. The decrease in residential portfolio occupancy is primarily due to the increase in units available as a result of the opening of The Waycroft. On a same property basis, 94.4% of the residential portfolio was leased as of September 30, 2020, compared to 97.9% at September 30, 2019.
    For the nine months ended September 30, 2020 (“2020 Period”), total revenue decreased to $166.9 million from $174.9 million for the nine months ended September 30, 2019 (“2019 Period”). Net income decreased to $38.6 million for the 2020 Period from $49.2 million for the 2019 Period. The decrease in net income was primarily due to (a) the initial operations of The Waycroft, including interest expense, net and amortization of deferred debt costs and depreciation and amortization of deferred leasing costs (collectively, $7.0 million), (b) higher credit losses on operating lease receivables and corresponding reserves (collectively, $4.2 million), (c) lower lease termination fees ($1.9 million), (d) lower parking income, net of parking expenses ($0.6 million) and (e) lower base rent, primarily due to the 2019 lease expiration and re-leasing of the grocery anchor at Shops at Fairfax, which opened in August 2020 ($0.6 million), partially offset by (f) lower interest incurred due to lower average interest rates during the period, exclusive of the impact of The Waycroft ($2.5 million), (g) higher capitalized interest for 7316 Wisconsin Avenue ($1.6 million) and (h) lower recoverable expenses, net of expense recoveries ($0.5 million). Net income available to common stockholders decreased to $22.6 million ($0.97 per diluted share) for the 2020 Period compared to $29.8 million ($1.30 per diluted share) for the 2019 Period.
    Same property revenue decreased $10.0 million (5.8%) and same property operating income decreased $7.6 million (5.8%) for the 2020 Period, compared to the 2019 Period. Shopping Center same property operating income decreased (6.2%) and mixed-use

www.SaulCenters.com


same property operating income decreased (4.5%). Shopping Center same property operating income decreased primarily due to (a) higher credit losses on operating lease receivables and corresponding reserves (collectively, $4.0 million), (b) lower lease termination fees ($1.8 million) and (c) lower base rent, primarily due to the 2019 lease expiration and re-leasing of the grocery anchor at Shops at Fairfax, which opened in August 2020 ($0.6 million). Mixed-use same property operating income decreased primarily due to (a) lower base rent ($1.0 million), (b) lower parking income, net of parking expenses ($0.6 million), (c) higher credit losses on operating lease receivables and corresponding reserves (collectively, $0.3 million) and (d) lower percentage rent ($0.3 million), partially offset by (e) higher lease termination fees ($0.5 million).
    Funds from operations ("FFO") available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) was $22.5 million ($0.72 per diluted share) in the 2020 Quarter compared to $24.1 million ($0.78 per diluted share) in the 2019 Quarter. FFO is a non-GAAP supplemental earnings measure which the Company considers meaningful in measuring its operating performance. A reconciliation of net income to FFO is attached to this press release. Concurrent with the opening of The Waycroft in April, interest, real estate taxes and all other costs associated with the residential portion property began to be charged to expense while revenue continues to grow as occupancy increases. As a result, FFO for the 2020 Quarter was adversely impacted by $0.8 million due to the initial operations of The Waycroft. The decrease in FFO available to common stockholders and noncontrolling interests also decreased due to (a) higher credit losses on operating lease receivables and corresponding reserves (collectively, $1.5 million), partially offset by (c) higher capitalized interest for 7316 Wisconsin Avenue ($0.4 million) and (d) lower general and administrative expenses ($0.6 million).
    FFO available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) decreased to $67.8 million ($2.17 per diluted share) in the 2020 Period from $75.2 million ($2.44 per diluted share) in the 2019 Period. FFO available to common stockholders and noncontrolling interests decreased primarily due to (a) higher credit losses on operating lease receivables and corresponding reserves (collectively, $4.2 million), (b) the initial operations of The Waycroft ($3.9 million), (c) lower lease termination fees ($1.9 million), (d) lower parking income, net of parking expenses ($0.6 million) and (e) lower base rent, primarily due to the 2019 lease expiration and re-leasing of the grocery anchor at Shops at Fairfax, which opened in August 2020 ($0.6 million), partially offset by (f) lower interest incurred due to lower average interest rates during the period, exclusive of the impact of The Waycroft ($2.5 million), (g) higher capitalized interest for 7316 Wisconsin Avenue ($1.6 million) and (h) lower recoverable expenses, net of expense recoveries ($0.5 million).
    On March 11, 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. As a result, the COVID-19 pandemic is negatively affecting almost every industry directly or indirectly.
    In the first week of April, the Company delivered The Waycroft, comprised of 491 apartment units and 60,000 square feet of retail space, on North Glebe Road, in Arlington, Virginia. As of November 3, 2020, despite the headwinds of COVID-19, 303 residential applications have been executed, totaling approximately 62% of the available units, and a total of 258 units were occupied. The addition of The Waycroft nearly doubles the residential component of the portfolio to over 1,000 luxury residential units. The project is anchored by a 41,500 square foot Target store. Target commenced paying rent in July 2020 and commenced operations in August 2020. An additional 2,400 square feet of retail space at The Waycroft became operational during the third quarter of 2020.
    The actions taken by federal, state and local governments to mitigate the spread of COVID-19 by ordering closure of nonessential businesses and ordering residents to generally stay at home, and subsequent phased re-openings, have resulted in many of our tenants announcing mandated or temporary closures of their operations and/or requesting adjustments to their lease terms. Experts predict that the COVID-19 pandemic will trigger a period of global economic slowdown or a global recession. COVID-19 could have a material and adverse effect on or cause disruption to our business or financial condition, results from operations, cash flows and the market value and trading price of our securities.
    While the Company’s grocery store, pharmacy, bank and home improvement store tenants generally remain open, restaurants are operating with limited indoor seating, supplemented with delivery and curbside pick-up, and most health, beauty supply and services, fitness centers, and other non-essential businesses are re-opening with limited customer capacity depending on location. As of November 3, 2020, payments by tenants of contractual base rent and operating expense and real estate tax recoveries totaled approximately 83% and 91% for the second quarter and third quarter, respectively. The Company is generally not charging late fees or delinquent interest on past due payments and, in many cases, rent deferral agreements have been negotiated to allow tenants temporary relief where needed. For additional discussion of how the COVID-19 pandemic has impacted the Company's business, please see Part 1, Item 2 (Management's Discussion and Analysis of Financial Condition and Results of Operations) of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.
    The following is a summary of the Company's consolidated total collections of second quarter, third quarter and October rent billings, including minimum rent, operating expense recoveries, and real estate tax reimbursements as of November 3, 2020:
    

www.SaulCenters.com


2020 second quarter
83% of 2020 second quarter total billings has been paid by our tenants.
79% of retail
95% of office
100% of residential
Additionally, rent deferral agreements comprising approximately 11% of 2020 second quarter total billings have been executed (or 67% of the total unpaid balance) including 4% with anchor/national tenants. The executed deferrals typically cover three months of rent and are generally scheduled to be repaid during 2021 and 2022. As a condition to granted rent deferrals, we have sought, and in some cases received, extended lease terms, or waivers of certain adjacent use or common area restrictions. Through October 31, 2020, 3% of second quarter deferred rents have come due. Of the deferred rents that have come due, the majority have been repaid.
2020 third quarter
91% of 2020 third quarter total billings has been paid by our tenants.
89% of retail
95% of office
100% of residential
Additionally, rent deferral agreements comprising approximately 2% of 2020 third quarter total billings have been executed (or 24% of the total unpaid balance) including 1% with anchor/national tenants. The executed deferrals typically cover three months of rent and are generally scheduled to be repaid during 2021 and 2022. As a condition to granted rent deferrals, we have sought, and in some cases received, extended lease terms, or waivers of certain adjacent use or common area restrictions. Through October 31, 2020, no third quarter deferred rents have come due.
    October 2020
90% of October 2020 total billings has been paid by our tenants.
88% of retail
92% of office
99% of residential
Additionally, rent deferral agreements comprising approximately 0.4% of October total billings have been executed (or 3% of the total unpaid balance) none of which are with anchor/national tenants. These deferrals are structured similarly to the second and third quarter deferrals.
    Although we are and will continue to be actively engaged in rent collection efforts related to uncollected rent, and we continue to work with certain tenants who have requested rent deferrals, we can provide no assurance that such efforts or our efforts in future periods will be successful, particularly in the event that the COVID-19 pandemic and restrictions intended to prevent its spread continue for a prolonged period.
    During July 2020, the Company closed on two 15-year, non-recourse mortgage loans with a weighted average rate of 3.59% and total proceeds of $52.1 million. One loan is secured by Ashbrook Marketplace and the other is secured by certain of our assets at Kentlands. The proceeds from the loans were used to pay down the revolving credit facility. With cash balances of over $40.6 million and borrowing capacity of approximately $200.3 million on October 31, 2020, the Company believes that it has sufficient liquidity and flexibility to meet the needs of the Company's operations as the effects of the COVID-19 pandemic continue to evolve.
    Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 60 properties which includes (a) 50 community and neighborhood shopping centers and seven mixed-use properties with approximately 9.8 million square feet of leasable area and (b) three land and development properties. Approximately 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.

Contact:    Scott Schneider
    (301) 986-6220



www.SaulCenters.com


Safe Harbor Statement
    Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on (i) Form 10-K for the year ended December 31, 2019 and (ii) our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and include the following: (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (iv) the Company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations and management’s ability to estimate the impact of such changes, (vi) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (vii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (viii) increases in operating costs, (ix) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (x) the reduction in the Company’s income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xi) impairment charges, (xii) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and (xiii) an epidemic or pandemic (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may (as with COVID-19) precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in (i) our Annual Report on Form 10-K for the year ended December 31, 2019 and (ii) our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.


www.SaulCenters.com


Saul Centers, Inc.
Consolidated Balance Sheets
(In thousands)
September 30,
2020
December 31,
2019
(Unaudited)
Assets
Real estate investments
Land$509,902 $453,322 
Buildings and equipment1,533,103 1,292,631 
Construction in progress74,476 335,644 
2,117,481 2,081,597 
Accumulated depreciation(595,785)(563,474)
1,521,696 1,518,123 
Cash and cash equivalents54,305 13,905 
Accounts receivable and accrued income, net65,701 52,311 
Deferred leasing costs, net27,468 24,083 
Prepaid expenses, net8,387 5,363 
Other assets3,817 4,555 
Total assets$1,681,374 $1,618,340 
Liabilities
Notes payable$835,613 $821,503 
Term loan facility payable74,766 74,691 
Revolving credit facility payable123,778 86,371 
Construction loan payable141,626 108,623 
Dividends and distributions payable19,373 19,291 
Accounts payable, accrued expenses and other liabilities27,874 35,199 
Deferred income26,727 29,306 
Total liabilities1,249,757 1,174,984 
Equity
Preferred stock, 1,000,000 shares authorized:
Series D Cumulative Redeemable, 30,000 shares issued and outstanding
75,000 75,000 
Series E Cumulative Redeemable, 44,000 shares issued and outstanding
110,000 110,000 
Common stock, $0.01 par value, 40,000,000 shares authorized, 23,358,208 and 23,231,240 shares issued and outstanding, respectively
234 232 
Additional paid-in capital417,504 410,926 
Distributions in excess of accumulated earnings(235,720)(221,177)
Total Saul Centers, Inc. equity367,018 374,981 
Noncontrolling interests64,599 68,375 
Total equity431,617 443,356 
Total liabilities and equity$1,681,374 $1,618,340 




Saul Centers, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Revenue(unaudited)(unaudited)
Rental revenue$55,749 $55,487 $163,167 $168,242 
Other1,011 1,565 3,756 6,701 
Total revenue56,760 57,052 166,923 174,943 
Expenses
Property operating expenses7,416 7,525 20,862 22,641 
Real estate taxes7,523 7,114 22,027 21,081 
Interest expense, net and amortization of deferred debt costs12,398 10,325 34,011 32,185 
Depreciation and amortization of deferred leasing costs13,713 12,018 37,593 35,185 
General and administrative4,107 4,742 13,790 14,696 
Total expenses45,157 41,724 128,283 125,788 
Net Income11,603 15,328 38,640 49,155 
Noncontrolling interests
Income attributable to noncontrolling interests(2,236)(3,102)(7,681)(10,250)
Net income attributable to Saul Centers, Inc.9,367 12,226 30,959 38,905 
Preferred stock dividends(2,798)(3,210)(8,394)(9,116)
Net income available to common stockholders$6,569 $9,016 $22,565 $29,789 
Per share net income available to common stockholders
Basic and diluted$0.28 $0.39 $0.97 $1.30 





Reconciliation of net income to FFO available to common stockholders and
noncontrolling interests (1)
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands, except per share amounts)2020201920202019
(unaudited)(unaudited)
Net income$11,603 $15,328 $38,640 $49,155 
Add:
Real estate depreciation and amortization13,713 12,018 37,593 35,185 
FFO25,316 27,346 76,233 84,340 
Subtract:
Preferred stock dividends(2,798)(3,210)(8,394)(9,116)
FFO available to common stockholders and noncontrolling interests$22,518 $24,136 $67,839 $75,224 
Weighted average shares:
Diluted weighted average common stock23,353 23,121 23,330 22,993 
Convertible limited partnership units7,911 7,869 7,903 7,852 
Average shares and units used to compute FFO per share31,264 30,990 31,233 30,845 
FFO per share available to common stockholders and noncontrolling interests$0.72 $0.78 $2.17 $2.44 


(1)    The National Association of Real Estate Investment Trusts (NAREIT) developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by NAREIT as net income, computed in accordance with GAAP, plus real estate depreciation and amortization, and excluding impairment charges on real estate assets and gains or losses from real estate dispositions. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs, which is disclosed in the Company’s Consolidated Statements of Cash Flows for the applicable periods. There are no material legal or functional restrictions on the use of FFO. FFO should not be considered as an alternative to net income, its most directly comparable GAAP measure, as an indicator of the Company’s operating performance, or as an alternative to cash flows as a measure of liquidity. Management considers FFO a meaningful supplemental measure of operating performance because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time (i.e. depreciation), which is contrary to what the Company believes occurs with its assets, and because industry analysts have accepted it as a performance measure. FFO may not be comparable to similarly titled measures employed by other REITs.



Reconciliation of revenue to same property revenue (2)
(in thousands)Three months ended September 30,Nine months ended September 30,
2020201920202019
(unaudited)(unaudited)
Total revenue$56,760 $57,052 $166,923 $174,943 
Less: Acquisitions, dispositions and development properties(2,461)(72)(3,161)(1,155)
Total same property revenue$54,299 $56,980 $163,762 $173,788 
Shopping Centers$39,727 $41,313 $119,226 $126,730 
Mixed-Use properties14,572 15,667 44,536 47,058 
Total same property revenue$54,299 $56,980 $163,762 $173,788 
Total Shopping Center revenue$40,336 $41,313 $120,236 $126,730 
Less: Shopping Center acquisitions, dispositions and development properties(609)— (1,010)— 
Total same Shopping Center revenue$39,727 $41,313 $119,226 $126,730 
Total Mixed-Use property revenue$16,424 $15,739 $46,687 $48,213 
Less: Mixed-Use acquisitions, dispositions and development properties(1,852)(72)(2,151)(1,155)
Total same Mixed-Use property revenue$14,572 $15,667 $44,536 $47,058 

(2)     Same property revenue is a non-GAAP financial measure of performance that improves the comparability of reporting periods by excluding the results of properties that were not in operation for the entirety of the comparable reporting periods. Same property revenue adjusts property revenue by subtracting the revenue of properties not in operation for the entirety of the comparable reporting periods. Same property revenue is a measure of the operating performance of the Company’s properties but does not measure the Company’s performance as a whole. Same property revenue should not be considered as an alternative to total revenue, its most directly comparable GAAP measure, as an indicator of the Company’s operating performance. Management considers same property revenue a meaningful supplemental measure of operating performance because it is not affected by the cost of the Company’s funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate to ownership of the Company’s properties. Management believes the exclusion of these items from same property revenue is useful because the resulting measure captures the actual revenue generated and actual expenses incurred by operating the Company’s properties. Other REITs may use different methodologies for calculating same property revenue. Accordingly, the Company’s same property revenue may not be comparable to those of other REITs.




Reconciliation of net income to same property operating income (3)
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2020201920202019
(unaudited)(unaudited)
Net income$11,603 $15,328 $38,640 $49,155 
Add: Interest expense, net and amortization of deferred debt costs12,398 10,325 34,011 32,185 
Add: Depreciation and amortization of deferred leasing costs13,713 12,018 37,593 35,185 
Add: General and administrative4,107 4,742 13,790 14,696 
Property operating income41,821 42,413 124,034 131,221 
Add (Less): Acquisitions, dispositions and development properties(1,159)97 (901)(519)
Total same property operating income$40,662 $42,510 $123,133 $130,702 
Shopping Centers$31,059 $32,339 $93,365 $99,516 
Mixed-Use properties9,603 10,171 29,768 31,186 
Total same property operating income$40,662 $42,510 $123,133 $130,702 
Shopping Center operating income$31,581 $32,339 $94,195 $99,516 
Less: Shopping Center acquisitions, dispositions and development properties(522)— (830)— 
Total same Shopping Center operating income$31,059 $32,339 $93,365 $99,516 
Mixed-Use property operating income$10,240 $10,074 $29,839 $31,705 
Add (Less): Mixed-Use acquisitions, dispositions and development properties(637)97 (71)(519)
Total same Mixed-Use property operating income$9,603 10,171 $29,768 $31,186 


(3) Same property operating income is a non-GAAP financial measure of performance that improves the comparability of reporting periods by excluding the results of properties that were not in operation for the entirety of the comparable reporting periods. Same property operating income adjusts property operating income by subtracting the results of properties that were not in operation for the entirety of the comparable periods. Same property operating income is a measure of the operating performance of the Company’s properties but does not measure the Company’s performance as a whole. Same property operating income should not be considered as an alternative to property operating income, its most directly comparable GAAP measure, as an indicator of the Company’s operating performance. Management considers same property operating income a meaningful supplemental measure of operating performance because it is not affected by the cost of the Company’s funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate to ownership of the Company’s properties. Management believes the exclusion of these items from property operating income is useful because the resulting measure captures the actual revenue generated and actual expenses incurred by operating the Company’s properties. Other REITs may use different methodologies for calculating same property operating income. Accordingly, same property operating income may not be comparable to those of other REITs.


v3.20.2
Cover Page Document
Nov. 07, 2019
Document Information [Line Items]  
Entity Central Index Key 0000907254
Document Type 8-K
Document Period End Date Nov. 05, 2020
Entity Registrant Name SAUL CENTERS, INC.
Entity Incorporation, State or Country Code MD
Entity File Number 1-12254
Entity Tax Identification Number 52-1833074
Entity Address, Address Line One 7501 Wisconsin Avenue
Entity Address, City or Town Bethesda
Entity Address, State or Province MD
Entity Address, Postal Zip Code 20814
City Area Code 301
Local Phone Number 986-6200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Common Stock, Par Value $0.01 Per Share  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, Par Value $0.01 Per Share
Security Exchange Name NYSE
Trading Symbol BFS
Depositary Shares each representing 1/100th of a share of 6.125% Series D Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share  
Document Information [Line Items]  
Title of 12(b) Security Depositary Shares each representing 1/100th of a share of 6.125% Series D Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share
Security Exchange Name NYSE
Trading Symbol BFS/PRD
Series E Preferred Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Depositary Shares each representing 1/100th of a share of 6.000% Series E Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share
Security Exchange Name NYSE
Trading Symbol BFS/PRE