Maryland | 1-12254 | 52-1833074 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
7501 Wisconsin Avenue, Bethesda, Maryland | 20814 | |
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2: EX-99.1 (EX-99.1) |
June 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Real estate investments | |||||||
Land | $ | 450,256 | $ | 450,256 | |||
Buildings and equipment | 1,263,865 | 1,261,830 | |||||
Construction in progress | 139,285 | 91,114 | |||||
1,853,406 | 1,803,200 | ||||||
Accumulated depreciation | (507,084 | ) | (488,166 | ) | |||
1,346,322 | 1,315,034 | ||||||
Cash and cash equivalents | 6,425 | 10,908 | |||||
Accounts receivable and accrued income, net | 50,634 | 54,057 | |||||
Deferred leasing costs, net | 27,139 | 27,255 | |||||
Prepaid expenses, net | 1,669 | 5,248 | |||||
Other assets | 14,293 | 9,950 | |||||
Total assets | $ | 1,446,482 | $ | 1,422,452 | |||
Liabilities | |||||||
Notes payable | $ | 869,272 | $ | 897,888 | |||
Revolving credit facility payable | 23,065 | 60,734 | |||||
Term loan facility payable | 74,543 | — | |||||
Dividends and distributions payable | 18,599 | 18,520 | |||||
Accounts payable, accrued expenses and other liabilities | 29,078 | 23,123 | |||||
Deferred income | 25,594 | 29,084 | |||||
Total liabilities | 1,040,151 | 1,029,349 | |||||
Equity | |||||||
Preferred stock | 180,000 | 180,000 | |||||
Common stock | 223 | 221 | |||||
Additional paid-in capital | 361,413 | 352,590 | |||||
Distributions in excess of accumulated net income and accumulated other comprehensive loss | (204,689 | ) | (198,406 | ) | |||
Total Saul Centers, Inc. equity | 336,947 | 334,405 | |||||
Noncontrolling interests | 69,384 | 58,698 | |||||
Total equity | 406,331 | 393,103 | |||||
Total liabilities and equity | $ | 1,446,482 | $ | 1,422,452 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Property revenue | (unaudited) | (unaudited) | |||||||||||||
Base rent | $ | 45,943 | $ | 45,575 | $ | 91,810 | $ | 90,051 | |||||||
Expense recoveries | 8,601 | 8,337 | 17,373 | 16,931 | |||||||||||
Percentage rent | 249 | 519 | 667 | 901 | |||||||||||
Other property revenue | 1,431 | 1,466 | 2,769 | 6,467 | |||||||||||
Total property revenue | 56,224 | 55,897 | 112,619 | 114,350 | |||||||||||
Property expenses | |||||||||||||||
Property operating expenses | 6,732 | 6,473 | 13,856 | 13,125 | |||||||||||
Provision for credit losses | 143 | 207 | 429 | 550 | |||||||||||
Real estate taxes | 6,778 | 6,700 | 13,622 | 13,290 | |||||||||||
Total property expenses | 13,653 | 13,380 | 27,907 | 26,965 | |||||||||||
Property operating income | 42,571 | 42,517 | 84,712 | 87,385 | |||||||||||
Other revenue | 69 | 10 | 170 | 23 | |||||||||||
Other expenses | |||||||||||||||
Interest expense and amortization of deferred debt costs | 11,237 | 11,900 | 22,764 | 23,764 | |||||||||||
Depreciation and amortization of deferred leasing costs | 11,351 | 11,691 | 22,700 | 23,033 | |||||||||||
General and administrative | 4,647 | 4,514 | 9,068 | 8,815 | |||||||||||
Total other expenses | 27,235 | 28,105 | 54,532 | 55,612 | |||||||||||
Operating income | 15,405 | 14,422 | 30,350 | 31,796 | |||||||||||
Change in fair value of derivatives | (12 | ) | (1 | ) | (12 | ) | (1 | ) | |||||||
Gain on sale of property | 509 | — | 509 | — | |||||||||||
Net income | 15,902 | 14,421 | 30,847 | 31,795 | |||||||||||
Income attributable to noncontrolling interests | (3,359 | ) | (2,911 | ) | (5,718 | ) | (6,581 | ) | |||||||
Net income attributable to Saul Centers, Inc. | 12,543 | 11,510 | 25,129 | 25,214 | |||||||||||
Extinguishment of issuance costs upon redemption of preferred shares | — | — | (2,328 | ) | — | ||||||||||
Preferred stock dividends | (2,953 | ) | (3,094 | ) | (6,356 | ) | (6,188 | ) | |||||||
Net income available to common stockholders | $ | 9,590 | $ | 8,416 | $ | 16,445 | $ | 19,026 | |||||||
Per share net income available to common stockholders | |||||||||||||||
Basic and diluted | $ | 0.43 | $ | 0.38 | $ | 0.74 | $ | 0.87 | |||||||
Weighted Average Common Stock: | |||||||||||||||
Common stock | 22,260 | 21,846 | 22,219 | 21,796 | |||||||||||
Effect of dilutive options | 28 | 81 | 34 | 114 | |||||||||||
Diluted weighted average common stock | 22,288 | 21,927 | 22,253 | 21,910 | |||||||||||
Reconciliation of net income to FFO available to common stockholders and noncontrolling interests (1) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Net income | $ | 15,902 | $ | 14,421 | $ | 30,847 | $ | 31,795 | |||||||
Subtract: | |||||||||||||||
Gain on sale of property | (509 | ) | — | (509 | ) | — | |||||||||
Add: | |||||||||||||||
Real estate depreciation and amortization | 11,351 | 11,691 | 22,700 | 23,033 | |||||||||||
FFO | 26,744 | 26,112 | 53,038 | 54,828 | |||||||||||
Subtract: | |||||||||||||||
Extinguishment of issuance costs upon redemption of preferred shares | — | — | (2,328 | ) | — | ||||||||||
Preferred stock dividends | (2,953 | ) | (3,094 | ) | (6,356 | ) | (6,188 | ) | |||||||
FFO available to common stockholders and noncontrolling interests | $ | 23,791 | $ | 23,018 | $ | 44,354 | $ | 48,640 | |||||||
Weighted average shares: | |||||||||||||||
Diluted weighted average common stock | 22,288 | 21,927 | 22,253 | 21,910 | |||||||||||
Convertible limited partnership units | 7,726 | 7,497 | 7,646 | 7,476 | |||||||||||
Average shares and units used to compute FFO per share | 30,014 | 29,424 | 29,899 | 29,386 | |||||||||||
FFO per share available to common stockholders and noncontrolling interests | $ | 0.79 | $ | 0.78 | $ | 1.48 | $ | 1.66 | |||||||
Reconciliation of property revenue to same property revenue | ||||||||||||||||
(in thousands) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Total property revenue | $ | 56,224 | $ | 55,897 | $ | 112,619 | $ | 114,350 | ||||||||
Less: Acquisitions, dispositions and development properties | — | (344 | ) | (2,421 | ) | (2,934 | ) | |||||||||
Total same property revenue | $ | 56,224 | $ | 55,553 | $ | 110,198 | $ | 111,416 | ||||||||
Shopping Centers | $ | 40,848 | $ | 40,239 | $ | 79,400 | $ | 81,086 | ||||||||
Mixed-Use properties | 15,376 | 15,314 | 30,798 | 30,330 | ||||||||||||
Total same property revenue | $ | 56,224 | $ | 55,553 | $ | 110,198 | $ | 111,416 | ||||||||
Total Shopping Center revenue | $ | 40,848 | $ | 40,583 | $ | 81,821 | $ | 84,020 | ||||||||
Less: Shopping Center acquisitions, dispositions and development properties | — | (344 | ) | (2,421 | ) | (2,934 | ) | |||||||||
Total same Shopping Center revenue | $ | 40,848 | $ | 40,239 | $ | 79,400 | $ | 81,086 | ||||||||
Total Mixed-Use property revenue | $ | 15,376 | $ | 15,314 | $ | 30,798 | $ | 30,330 | ||||||||
Less: Mixed-Use acquisitions, dispositions and development properties | — | — | — | — | ||||||||||||
Total same Mixed-Use property revenue | $ | 15,376 | $ | 15,314 | $ | 30,798 | $ | 30,330 |
Reconciliation of property operating income to same property operating income | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Property operating income | $ | 42,571 | $ | 42,517 | $ | 84,712 | $ | 87,385 | |||||||
Less: Acquisitions, dispositions and development properties | — | (73 | ) | (2,024 | ) | (2,047 | ) | ||||||||
Total same property operating income | $ | 42,571 | $ | 42,444 | $ | 82,688 | $ | 85,338 | |||||||
Shopping Centers | $ | 32,274 | $ | 32,132 | $ | 62,298 | $ | 64,896 | |||||||
Mixed-Use properties | 10,297 | 10,312 | 20,390 | 20,442 | |||||||||||
Total same property operating income | $ | 42,571 | $ | 42,444 | $ | 82,688 | $ | 85,338 | |||||||
Shopping Center operating income | $ | 32,274 | $ | 32,205 | $ | 64,322 | $ | 66,943 | |||||||
Less: Shopping Center acquisitions, dispositions and development properties | — | (73 | ) | (2,024 | ) | (2,047 | ) | ||||||||
Total same Shopping Center operating income | $ | 32,274 | $ | 32,132 | $ | 62,298 | $ | 64,896 | |||||||
Mixed-Use operating income | $ | 10,297 | $ | 10,312 | $ | 20,390 | $ | 20,442 | |||||||
Less: Mixed-Use Acquisitions, dispositions and development properties | — | — | — | — | |||||||||||
Total same Mixed-Use property operating income | $ | 10,297 | $ | 10,312 | $ | 20,390 | $ | 20,442 |