Business Segments

12 Months Ended

Dec. 31, 2017

BUSINESS SEGMENTS

The Company has two reportable business segments: Shopping Centers and Mixed-Use Properties. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates performance based upon income and cash flows from real estate for the combined properties in each segment. All of our properties within each segment generate similar types of revenues and expenses related to tenant rent, reimbursements and operating expenses. Although services are provided to a range of tenants, the types of services provided to them are similar within each segment. The properties in each portfolio have similar economic characteristics and the nature of the products and services provided to our tenants and the method to distribute such services are consistent throughout the portfolio. Certain reclassifications have been made to prior year information to conform to the 2017 presentation.



SAUL CENTERS, INC. Notes to Consolidated Financial Statements
(In thousands)	Shopping			Mixed-Use			Corporate			Consolidated
As of or for the year ended December 31, 2017	Centers			Properties			and Other			Totals
Real estate rental operations:
Revenue	$	165,853		$	61,352		$	80		$	227,285
Expenses	(34,675		)	(20,917		)	—			(55,592		)
Income from real estate	131,178			40,435			80			171,693
Interest expense and amortization of deferred debt costs	—			—			(47,225		)	(47,225		)
General and administrative	—			—			(18,176		)	(18,176		)
Subtotal	131,178			40,435			(65,321		)	106,292
Depreciation and amortization of deferred leasing costs	(29,977		)	(15,717		)	—			(45,694		)
Change in fair value of derivatives	—			—			70			70
Net income (loss)	$	101,201		$	24,718		$	(65,251	)	$	60,668
Capital investment	$	90,896		$	29,098		$	—		$	119,994
Total assets	$	974,061		$	438,283		$	10,108		$	1,422,452

As of or for the year ended December 31, 2016
Real estate rental operations:
Revenue	$	160,179		$	56,840		$	51		$	217,070
Expenses	(34,931		)	(18,770		)	—			(53,701		)
Income from real estate	125,248			38,070			51			163,369
Interest expense and amortization of deferred debt costs	—			—			(45,683		)	(45,683		)
General and administrative	—			—			(17,496		)	(17,496		)
Subtotal	125,248			38,070			(63,128		)	100,190
Depreciation and amortization of deferred leasing costs	(29,964		)	(14,453		)	—			(44,417		)
Acquisition related costs	(60		)	—			—			(60		)
Change in fair value of derivatives	—			—			(6		)	(6		)
Gain on sale of property	—			1,013			—			1,013
Net income (loss)	$	95,224		$	24,630		$	(63,134	)	$	56,720
Capital investment	$	64,044		$	27,001		$	—		$	91,045
Total assets	$	976,545		$	358,419		$	8,061		$	1,343,025



SAUL CENTERS, INC. Notes to Consolidated Financial Statements (continued)
(In thousands)	Shopping			Mixed-Use			Corporate			Consolidated
As of or for the year ended December 31, 2015	Centers			Properties			and Other			Totals
Real estate rental operations:
Revenue	$	156,110		$	52,916		$	51		$	209,077
Expenses	(33,877		)	(17,266		)	—			(51,143		)
Income from real estate	122,233			35,650			51			157,934
Interest expense and amortization of deferred debt costs	—			—			(45,165		)	(45,165		)
General and administrative	—			—			(16,353		)	(16,353		)
Subtotal	122,233			35,650			(61,467		)	96,416
Depreciation and amortization of deferred leasing costs	(30,171		)	(13,099		)	—			(43,270		)
Acquisition related costs	(84		)	—			—			(84		)
Predevelopment expenses	(57		)	(75		)	—			(132		)
Change in fair value of derivatives	—			—			(10		)	(10		)
Gain on sale of property	11			—			—			11
Net income (loss)	$	91,932		$	22,476		$	(61,477	)	$	52,931
Capital investment	$	17,159		$	52,460		$	—		$	69,619
Total assets	$	931,256		$	354,254		$	9,898		$	1,295,408