Maryland | 1-12254 | 52-1833074 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
7501 Wisconsin Avenue, Suite 1500 E, Bethesda, Maryland | 20814 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | 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)) |
SAUL CENTERS, INC. | ||
By: | /s/ Scott V. Schneider | |
Scott V. Schneider | ||
Senior Vice President and Chief Financial Officer |
Section 2: EX-99.1 (EX-99.1) |
Contact: | Scott V. Schneider | |
(301) 986-6220 | ||
December 31, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Real estate investments | |||||||
Land | $ | 450,256 | $ | 422,546 | |||
Buildings and equipment | 1,261,830 | 1,214,697 | |||||
Construction in progress | 91,114 | 63,570 | |||||
1,803,200 | 1,700,813 | ||||||
Accumulated depreciation | (488,166 | ) | (458,279 | ) | |||
1,315,034 | 1,242,534 | ||||||
Cash and cash equivalents | 10,908 | 8,322 | |||||
Accounts receivable and accrued income, net | 54,057 | 52,774 | |||||
Deferred leasing costs, net | 27,255 | 25,983 | |||||
Prepaid expenses, net | 5,248 | 5,057 | |||||
Other assets | 9,950 | 8,355 | |||||
Total assets | $ | 1,422,452 | $ | 1,343,025 | |||
Liabilities | |||||||
Mortgage notes payable | $ | 897,888 | $ | 783,400 | |||
Revolving credit facility payable | 60,734 | 48,217 | |||||
Construction loan payable | — | 68,672 | |||||
Dividends and distributions payable | 18,520 | 17,953 | |||||
Accounts payable, accrued expenses and other liabilities | 23,123 | 20,838 | |||||
Deferred income | 29,084 | 30,696 | |||||
Total liabilities | 1,029,349 | 969,776 | |||||
Equity | |||||||
Preferred stock | 180,000 | 180,000 | |||||
Common stock | 221 | 217 | |||||
Additional paid-in capital | 352,590 | 328,171 | |||||
Accumulated deficit and other comprehensive loss | (198,406 | ) | (189,883 | ) | |||
Total Saul Centers, Inc. equity | 334,405 | 318,505 | |||||
Noncontrolling interests | 58,698 | 54,744 | |||||
Total equity | 393,103 | 373,249 | |||||
Total liabilities and equity | $ | 1,422,452 | $ | 1,343,025 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | |||||||||||||||
Revenue | |||||||||||||||
Base rent | $ | 45,705 | $ | 44,043 | $ | 181,141 | $ | 172,381 | |||||||
Expense recoveries | 8,969 | 8,258 | 35,347 | 34,269 | |||||||||||
Percentage rent | 490 | 363 | 1,458 | 1,379 | |||||||||||
Other | 1,511 | 1,537 | 9,339 | 9,041 | |||||||||||
Total revenue | 56,675 | 54,201 | 227,285 | 217,070 | |||||||||||
Operating expenses | |||||||||||||||
Property operating expenses | 7,146 | 6,787 | 27,689 | 27,527 | |||||||||||
Provision for credit losses | 304 | 287 | 906 | 1,494 | |||||||||||
Real estate taxes | 6,873 | 6,414 | 26,997 | 24,680 | |||||||||||
Interest expense and amortization of deferred debt costs | 11,640 | 11,415 | 47,225 | 45,683 | |||||||||||
Depreciation and amortization of deferred leasing costs | 11,298 | 10,939 | 45,694 | 44,417 | |||||||||||
General and administrative | 4,998 | 4,996 | 18,176 | 17,496 | |||||||||||
Acquisition related costs | — | 3 | — | 60 | |||||||||||
Total operating expenses | 42,259 | 40,841 | 166,687 | 161,357 | |||||||||||
Operating income | 14,416 | 13,360 | 60,598 | 55,713 | |||||||||||
Change in fair value of derivatives | 72 | 3 | 70 | (6 | ) | ||||||||||
Gain on sale of property | — | 1,013 | — | 1,013 | |||||||||||
Net Income | 14,488 | 14,376 | 60,668 | 56,720 | |||||||||||
Income attributable to noncontrolling interests | (2,928 | ) | (2,911 | ) | (12,411 | ) | (11,441 | ) | |||||||
Net income attributable to Saul Centers, Inc. | 11,560 | 11,465 | 48,257 | 45,279 | |||||||||||
Preferred stock dividends | (3,094 | ) | (3,094 | ) | (12,375 | ) | (12,375 | ) | |||||||
Net income available to common stockholders | $ | 8,466 | $ | 8,371 | $ | 35,882 | $ | 32,904 | |||||||
Per share net income available to common stockholders | |||||||||||||||
Diluted | $ | 0.38 | $ | 0.38 | $ | 1.63 | $ | 1.52 | |||||||
Weighted Average Common Stock: | |||||||||||||||
Common stock | 22,072 | 21,674 | 21,901 | 21,505 | |||||||||||
Effect of dilutive options | 114 | 154 | 107 | 110 | |||||||||||
Diluted weighted average common stock | 22,186 | 21,828 | 22,008 | 21,615 |
Reconciliation of net income to FFO available to common stockholders and noncontrolling interests (1) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
(In thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 14,488 | $ | 14,376 | $ | 60,668 | $ | 56,720 | ||||||||
Subtract: | ||||||||||||||||
Gain on sale of property | — | (1,013 | ) | — | (1,013 | ) | ||||||||||
Add: | ||||||||||||||||
Real estate depreciation and amortization | 11,298 | 10,939 | 45,694 | 44,417 | ||||||||||||
FFO | 25,786 | 24,302 | 106,362 | 100,124 | ||||||||||||
Subtract: | ||||||||||||||||
Preferred stock dividends | (3,094 | ) | (3,094 | ) | (12,375 | ) | (12,375 | ) | ||||||||
FFO available to common stockholders and noncontrolling interests | $ | 22,692 | $ | 21,208 | $ | 93,987 | $ | 87,749 | ||||||||
Weighted average shares: | ||||||||||||||||
Diluted weighted average common stock | 22,186 | 21,828 | 22,008 | 21,615 | ||||||||||||
Convertible limited partnership units | 7,536 | 7,420 | 7,503 | 7,375 | ||||||||||||
Average shares and units used to compute FFO per share | 29,722 | 29,248 | 29,511 | 28,990 | ||||||||||||
FFO per share available to common stockholders and noncontrolling interests | $ | 0.76 | $ | 0.73 | $ | 3.18 | $ | 3.03 | ||||||||
(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 extraordinary items, impairment charges on depreciable real estate assets and gains or losses from property 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 | ||||||||||||||||
(in thousands) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Total revenue | $ | 56,675 | $ | 54,201 | $ | 227,285 | $ | 217,070 | ||||||||
Less: Interest income | (49 | ) | (15 | ) | (80 | ) | (52 | ) | ||||||||
Less: Acquisitions, dispositions and development properties | (1,175 | ) | (605 | ) | (13,746 | ) | (5,364 | ) | ||||||||
Total same property revenue | $ | 55,451 | $ | 53,581 | $ | 213,459 | $ | 211,654 | ||||||||
Shopping Centers | $ | 39,824 | $ | 38,883 | $ | 160,393 | $ | 158,044 | ||||||||
Mixed-Use properties | 15,627 | 14,698 | 53,066 | 53,610 | ||||||||||||
Total same property revenue | $ | 55,451 | $ | 53,581 | $ | 213,459 | $ | 211,654 |
Reconciliation of net income to same property operating income | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
(In thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 14,488 | $ | 14,376 | $ | 60,668 | $ | 56,720 | ||||||||
Add: Interest expense and amortization of deferred debt costs | 11,640 | 11,415 | 47,225 | 45,683 | ||||||||||||
Add: Depreciation and amortization of deferred leasing costs | 11,298 | 10,939 | 45,694 | 44,417 | ||||||||||||
Add: General and administrative | 4,998 | 4,996 | 18,176 | 17,496 | ||||||||||||
Add: Acquisition related costs | — | 3 | — | 60 | ||||||||||||
Add: Change in fair value of derivatives | (72 | ) | (3 | ) | (70 | ) | 6 | |||||||||
Less: Gains on property dispositions | — | (1,013 | ) | — | (1,013 | ) | ||||||||||
Less: Interest income | (49 | ) | (15 | ) | (80 | ) | (52 | ) | ||||||||
Property operating income | 42,303 | 40,698 | 171,613 | 163,317 | ||||||||||||
Less: Acquisitions, dispositions & development property | (948 | ) | (238 | ) | (8,978 | ) | (1,760 | ) | ||||||||
Total same property operating income | $ | 41,355 | $ | 40,460 | $ | 162,635 | $ | 161,557 | ||||||||
Shopping centers | $ | 31,230 | $ | 30,737 | $ | 127,096 | $ | 124,470 | ||||||||
Mixed-Use properties | 10,125 | 9,723 | 35,539 | 37,087 | ||||||||||||
Total same property operating income | $ | 41,355 | $ | 40,460 | $ | 162,635 | $ | 161,557 |
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