Saul Centers (BFS) investor relations material

Executive summary

• Q3 revenue rose 8.9% to $78.4M, while net income declined to $12.6M from $14.0M, mainly due to Hampden House start-up costs; excluding Hampden House, net income increased $2.3M.

• 9M revenue rose 8.7% to $233.5M, while net income declined to $36.2M from $41.0M; Hampden House reduced 9M net income by $12.5M.

• 9M FFO available to common stockholders and noncontrolling interests increased to $75.9M from $75.2M; excluding Hampden House, it increased $8.3M.

Financial highlights

• Q3 total revenue was $78.4M, up 8.9%; rental revenue was $77.0M, up 8.9%, while expenses rose 13.5% to $65.8M.

• Q3 net income available to common stockholders was $6.7M, or $0.27/share, versus $7.7M, or $0.32/share; Hampden House reduced it by $1.6M, or $0.07/share.

• 9M net income available to common stockholders was $18.9M, or $0.78/share, versus $22.6M, or $0.93/share; Hampden House reduced it by $5.8M, or $0.24/share.

• Q3 same-property revenue rose $3.5M, or 4.9%, and NOI rose $2.5M, or 5.0%; 9M increases were $13.3M, or 6.4%, and $10.2M, or 7.0%, respectively.

• Hampden House generated $6.1M of Q3 expenses and $18.2M for 9M; net interest expense rose to $20.3M in Q3 from $17.1M and to $60.0M for 9M from $50.6M.

Segment performance

• Q3 property NOI was $53.0M versus $49.8M; Shopping Centers contributed $37.4M and Mixed-Use Properties $15.6M.

• Q3 same-property NOI rose 5.0% to $52.3M; Shopping Centers increased 4.6% to $37.4M and Mixed-Use Properties increased 6.1% to $14.9M.

• 9M same-property NOI rose 7.0% to $156.4M; Shopping Centers increased 3.9% to $110.4M and Mixed-Use Properties increased 15.2% to $45.9M.

• Twinbrook Quarter Phase I lease-up contributed $1.1M to Q3 same-property NOI growth and $6.7M to 9M growth; excluding it, Q3 Mixed-Use same-property NOI declined $0.2M.