EX-99.1 2 bfs-09302025xex991.htm EX-99.1 Document

Exhibit 99.1
SAUL CENTERS, INC.
7501 Wisconsin Avenue, Suite 1500E, Bethesda, Maryland 20814-6522
(301) 986-6200

Saul Centers, Inc. Reports Third Quarter 2025 Earnings
November 6, 2025, Bethesda, MD.

Saul Centers, Inc. (NYSE: BFS) (the "Company"), an equity real estate investment trust ("REIT"), announced operating results for the quarter ended September 30, 2025 ("2025 Quarter"). Total revenue for the 2025 Quarter increased to $72.0 million from $67.3 million for the quarter ended September 30, 2024 ("2024 Quarter"). Net income decreased to $14.0 million for the 2025 Quarter from $19.6 million for the 2024 Quarter. During the 2025 Quarter, the Company continued to lease residential units and work on retail spaces at Twinbrook Quarter Phase I. As of November 3, 2025, 431 of the 452 (95.4%) residential units were leased and occupied.

Concurrent with the initial delivery of Twinbrook Quarter Phase I on October 1, 2024, interest, real estate taxes, depreciation and all other costs associated with the residential portion and the majority of the retail portion of the property began to be charged to expense, while revenue continues to grow as occupancy increases. As a result, compared to the 2024 Quarter, net income for the 2025 Quarter was adversely impacted by $4.7 million, of which $4.6 million was a reduction in capitalized interest, due to the initial operations of Twinbrook Quarter Phase I. Exclusive of Twinbrook Quarter Phase I, net income decreased by $0.9 million primarily due to (a) higher general and administrative costs of $0.8 million, (b) lower lease termination fees of $0.6 million, (c) higher credit losses on operating lease receivables, net, of $0.4 million, (d) lower expense recoveries, net of expenses, of $0.3 million, and (e) higher interest expense, net and amortization of deferred debt costs, of $0.2 million, partially offset by (f) higher commercial base rent of $1.1 million and (g) higher residential base rent of $0.3 million. Net income available to common stockholders decreased to $7.7 million, or $0.32 per basic and diluted share, for the 2025 Quarter from $11.7 million, or $0.48 per basic and diluted share, for the 2024 Quarter. As compared to the 2024 Quarter, net income available to common stockholders for the 2025 Quarter was adversely impacted by $2.4 million, or $0.10 per basic and diluted share, due to the initial operations of Twinbrook Quarter Phase I.

Same property revenue decreased $0.2 million, or 0.3%, and same property net operating income decreased $1.0 million, or 2.0%, for the 2025 Quarter compared to the 2024 Quarter. Shopping Center same property net operating income for the 2025 Quarter totaled $35.8 million, a decrease of $0.4 million compared to the 2024 Quarter. Shopping Center same property net operating income decreased primarily due to lower lease termination fees of $0.6 million. Mixed use same property net operating income for the 2025 Quarter totaled $12.2 million, a decrease of $0.6 million compared to the 2024 Quarter. Mixed use same property net operating income decreased primarily due to lower commercial base rent of $0.6 million. One property, Twinbrook Quarter Phase I, was excluded from same property results. Reconciliations and definitions of (a) total revenue to same property revenue and (b) net income to same property net operating income are attached to this press release.

Same property revenue and same property net operating income are non-GAAP financial measures of performance that management believes improve the comparability of reporting periods by excluding the results of properties that were not in operation for the entirety of the comparable reporting periods. We define same property revenue as total revenue less straight-line base rent and amortization of above/below market premiums and discounts related to leases acquired in connection with purchased real estate investment properties minus the revenue of properties not in operation for the entirety of the comparable reporting periods, and we define same property net 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, (d) change in fair value of derivatives, and (e) loss on the early extinguishment of debt minus (f) gains on property dispositions, (g) straight-line base rent, (h) amortization of above/below market premiums and discounts related to leases acquired in connection with purchased real estate investment properties and (i) the net operating income of properties that were not in operation for the entirety of the comparable periods.


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Funds from operations ("FFO") available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) decreased to $25.3 million, or $0.72 per basic and diluted share, in the 2025 Quarter compared to $28.9 million, or $0.84 per basic and $0.83 per diluted share, in the 2024 Quarter. FFO is a non-GAAP supplemental earnings measure that the Company considers meaningful in measuring its operating performance. A reconciliation and definition of net income to FFO is attached to this press release. FFO available to common stockholders and noncontrolling interests was adversely impacted by $2.5 million, or $0.07 per basic and diluted share, due to the initial operations of Twinbrook Quarter Phase I. Exclusive of Twinbrook Quarter Phase I, FFO available to common stockholders and noncontrolling interests decreased by $1.0 million primarily due to (a) higher general and administrative costs of $0.8 million, (b) lower lease termination fees of $0.6 million, (c) higher credit losses on operating lease receivables, net, of $0.4 million, (d) lower expense recoveries, net of expenses, of $0.3 million and (e) higher interest expense, net and amortization of deferred debt costs, of $0.2 million, partially offset by (f) higher commercial base rent of $1.1 million and (g) higher residential base rent of $0.3 million.

As of September 30, 2025, 94.5% of the commercial portfolio was leased compared to 95.7% as of September 30, 2024. As of September 30, 2025, excluding The Milton at Twinbrook Quarter, the residential portfolio was 98.5% leased compared to 98.8% as of September 30, 2024.

For the nine months ended September 30, 2025 ("2025 Period"), total revenue increased to $214.7 million from $200.9 million for the nine months ended September 30, 2024 ("2024 Period"). Net income decreased to $41.0 million for the 2025 Period from $57.3 million for the 2024 Period. The decrease in net income was primarily due to the initial operations of Twinbrook Quarter Phase I, which adversely impacted net income by $16.4 million, of which $13.7 million was a reduction of capitalized interest. Net income available to common stockholders decreased to $22.6 million, or $0.93 per basic and diluted share, for the 2025 Period compared to $34.2 million, or $1.42 per basic and diluted share, for the 2024 Period. As compared to the 2024 Period, net income available to common stockholders for the 2025 Period was adversely impacted by $8.6 million, or $0.36 per basic and diluted share, due to the initial operations of Twinbrook Quarter Phase I.

Same property net operating income decreased $3.4 million, or 2.3%, for the 2025 Period compared to the 2024 Period. Shopping Center same property net operating income decreased primarily due to lower lease termination fees of $2.9 million. Mixed use same property income decreased primarily due to lower parking income, net of expenses, of $0.2 million. One property, Twinbrook Quarter Phase I, was excluded from same property results.

FFO available to common stockholders and noncontrolling interests, after deducting preferred stock dividends, decreased to $75.2 million, or $2.16 per basic and diluted share, in the 2025 Period from $84.9 million, or $2.46 per basic and diluted share, in the 2024 Period. FFO available to common stockholders and noncontrolling interests was adversely impacted by $9.8 million, or $0.28 per basic and diluted share, due to the initial operations of Twinbrook Quarter Phase I.

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 62 properties, which includes (a) 50 community and neighborhood shopping centers and eight mixed-use properties with approximately 10.2 million square feet of leasable area and (b) four non-operating land and development properties. Over 85% of the Saul Centers' property net operating income is generated by properties in the metropolitan Washington, D.C./Baltimore area.

Contact:    Carlos L. Heard
(301) 986-7737


www.SaulCenters.com
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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 Form 10-K for the year ended December 31, 2024 and other periodic or current reports filed with the SEC and include the following: (i) the ability of our tenants to pay rent, (ii) our reliance on shopping center "anchor" tenants and other significant tenants, (iii) our substantial relationships with members of the B. F. Saul Company and certain other affiliated entities, each of which is controlled by B. Francis Saul II and his family members, (iv) risks of financing, such as increases in interest rates, restrictions imposed by our debt, our ability to meet existing financial covenants and our ability to consummate planned and additional financings on acceptable terms, (v) our development activities, (vi) our access to additional capital, (vii) our ability to successfully complete additional acquisitions, developments or redevelopments, or if they are consummated, whether such acquisitions, developments or redevelopments perform as expected, (viii) adverse trends in the retail, office and residential real estate sectors, (ix) risks relating to cybersecurity, including disruption to our business and operations and exposure to liabilities from tenants, employees, capital providers, and other third parties, (x) risks generally incident to the ownership of real property, including adverse changes in economic conditions, changes in the investment climate for real estate, changes in real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, the relative illiquidity of real estate and environmental risks, and (xi) risks related to our status as a REIT for federal income tax purposes, such as the existence of complex regulations relating to our status as a REIT, the effect of future changes to REIT requirements as a result of new legislation and the adverse consequences of the failure to qualify as a REIT. 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 our Annual Report on Form 10-K for the year ended December 31, 2024 and other periodic or current reports filed with the SEC.

www.SaulCenters.com
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Saul Centers, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands, except per share amounts)
September 30,
2025
December 31,
2024
Assets
Real estate investments
Land$556,499 $562,047 
Buildings and equipment1,930,091 1,903,907 
Construction in progress371,521 326,193 
2,858,111 2,792,147 
Accumulated depreciation(802,512)(767,842)
Total real estate investments, net2,055,599 2,024,305 
Cash and cash equivalents11,788 10,299 
Accounts receivable and accrued income, net58,966 50,949 
Deferred leasing costs, net26,191 25,907 
Other assets15,037 14,944 
Total assets$2,167,581 $2,126,404 
Liabilities
Mortgage notes payable, net$1,022,235 $1,047,832 
Revolving credit facility payable, net185,376 186,489 
Term loan facility payable, net138,761 99,679 
Construction loans payable, net241,687 198,616 
Accounts payable, accrued expenses and other liabilities46,734 46,162 
Deferred income23,674 23,033 
Dividends and distributions payable23,909 23,469 
Total liabilities1,682,376 1,625,280 
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, 50,000,000 shares authorized,
24,493,115 and 24,302,576 shares issued and outstanding, respectively
245 243 
Additional paid-in capital457,283 454,086 
Distributions in excess of accumulated earnings(326,978)(306,541)
Accumulated other comprehensive income1,076 2,966 
Total Saul Centers, Inc. equity316,626 335,754 
Noncontrolling interests168,579 165,370 
Total equity485,205 501,124 
Total liabilities and equity$2,167,581 $2,126,404 

www.SaulCenters.com
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Saul Centers, Inc.
Consolidated Statements of Operations
(Unaudited)

Three Months Ended
September 30,
Nine Months Ended
September 30,
(In thousands, except per share amounts)2025202420252024
Revenues
Rental revenue$70,679 $65,550 $210,652 $194,544 
Other1,325 1,738 4,042 6,379 
Total revenue72,004 67,288 214,694 200,923 
Expenses
Property operating expenses12,024 10,111 37,190 30,312 
Real estate taxes8,154 7,620 24,154 22,852 
Interest expense, net and amortization of deferred debt costs17,066 12,213 50,633 36,928 
Depreciation and amortization of deferred leasing costs14,106 12,072 42,727 36,102 
General and administrative6,658 5,680 19,085 17,565 
Total expenses58,008 47,696 173,789 143,759 
Gain on disposition of property— — 120 181 
Net income13,996 19,592 41,025 57,345 
Noncontrolling interests
Income attributable to noncontrolling interests(3,507)(5,111)(10,017)(14,786)
Net income attributable to Saul Centers, Inc.10,489 14,481 31,008 42,559 
Preferred stock dividends(2,798)(2,798)(8,395)(8,395)
Net income available to common stockholders$7,691 $11,683 $22,613 $34,164 
Per share net income available to common stockholders
Basic and diluted$0.32 $0.48 $0.93 $1.42 


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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)2025202420252024
Net income$13,996 $19,592 $41,025 $57,345 
Subtract:
Gain on disposition of property— — (120)(181)
Add:
Real estate depreciation and amortization14,106 12,072 42,727 36,102 
FFO28,102 31,664 83,632 93,266 
Subtract:
Preferred stock dividends(2,798)(2,798)(8,395)(8,395)
FFO available to common stockholders and noncontrolling interests$25,304 $28,866 $75,237 $84,871 
Weighted average shares and units:
Basic35,057 34,560 34,863 34,469 
Diluted35,069 34,582 34,880 34,479 
Basic FFO per share available to common stockholders and noncontrolling interests$0.72 $0.84 $2.16 $2.46 
Diluted FFO per share available to common stockholders and noncontrolling interests$0.72 $0.83 $2.16 $2.46 

(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.


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Reconciliation of revenue to same property revenue (2)

Three Months Ended
September 30,
Nine Months Ended
September 30,
(In thousands)2025202420252024
Total revenue$72,004 $67,288 $214,694 $200,923 
Revenue adjustments (1)(2,050)(578)(7,145)(299)
Acquisitions, dispositions and development properties(3,463)— (6,860)— 
Total same property revenue$66,491 $66,710 $200,689 $200,624 
Shopping Centers$46,204 $46,250 $139,780 $140,377 
Mixed-Use properties20,287 20,460 60,909 60,247 
Total same property revenue$66,491 $66,710 $200,689 $200,624 
Total Shopping Center revenue$46,204 $46,250 $139,780 $140,377 
Shopping Center acquisitions, dispositions and development properties— — — — 
Total Shopping Center same property revenue$46,204 $46,250 $139,780 $140,377 
Total Mixed-Use property revenue$23,750 $20,460 $67,769 $60,247 
Mixed-Use acquisitions, dispositions and development properties(3,463)— (6,860)— 
Total Mixed-Use same property revenue$20,287 $20,460 $60,909 $60,247 

(1)Revenue adjustments are straight-line base rent and above/below market lease amortization.
(2)Same property revenue is a non-GAAP financial measure of performance that management believes 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. We define same property revenue as total revenue less straight-line base rent and amortization of above/below market premiums and discounts related to leases acquired in connection with purchased real estate investment properties minus 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 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.


Mixed-Use same property revenue is composed of the following:

Three Months Ended
September 30,
Nine Months Ended
September 30,
(In thousands)2025202420252024
Office mixed-use properties (1)
$9,673 $10,235 $29,251 $30,069 
Residential mixed-use properties (residential activity) (2)
9,428 9,088 28,183 26,814 
Residential mixed-use properties (retail activity) (3)
1,186 1,137 3,475 3,364 
Total Mixed-Use same property revenue
$20,287 $20,460 $60,909 $60,247 

(1)Includes Avenel Business Park, Clarendon Center – North and South Blocks, 601 Pennsylvania Avenue and Washington Square
(2)Includes Clarendon South Block, The Waycroft and Park Van Ness
(3)Includes The Waycroft and Park Van Ness

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Reconciliation of net income to same property net operating income (2)

Three Months Ended
September 30,
Nine Months Ended
September 30,
(In thousands)2025202420252024
Net income$13,996 $19,592 $41,025 $57,345 
Interest expense, net and amortization of deferred debt costs17,066 12,213 50,633 36,928 
Depreciation and amortization of deferred leasing costs14,106 12,072 42,727 36,102 
General and administrative6,658 5,680 19,085 17,565 
Gain on disposition of property
— — (120)(181)
Revenue adjustments (1)(2,050)(578)(7,145)(299)
Total property net operating income49,776 48,979 146,205 147,460 
Acquisitions, dispositions, and development properties(1,782)(2,127)
Total same property net operating income$47,994 $48,979 $144,078 $147,460 
Shopping Centers$35,759 $36,149 $106,328 $109,360 
Mixed-Use properties12,235 12,830 37,750 38,100 
Total same property net operating income$47,994 $48,979 $144,078 $147,460 
Shopping Center property net operating income$35,759 $36,149 $106,328 $109,360 
Shopping Center acquisitions, dispositions and development properties— — — — 
Total Shopping Center same property net operating income$35,759 $36,149 $106,328 $109,360 
Mixed-Use property net operating income$14,017 $12,830 $39,877 $38,100 
Mixed-Use acquisitions, dispositions and development properties(1,782)— (2,127)— 
Total Mixed-Use same property net operating income$12,235 $12,830 $37,750 $38,100 

(1)Revenue adjustments are straight-line base rent and above/below market lease amortization.
(2)Same property net operating income is a non-GAAP financial measure of performance that management believes 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. We define same property net 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, (d) change in fair value of derivatives, and (e) loss on the early extinguishment of debt minus (f) gains on property dispositions, (g) straight-line base rent, (h) amortization of above/below market premiums and discounts related to leases acquired in connection with purchased real estate investment properties and (i) the net operating income of properties that were not in operation for the entirety of the comparable periods. Same property net 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 net operating income 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. Management considers same property net 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 net 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 net operating income. Accordingly, same property net operating income may not be comparable to those of other REITs.

Mixed-Use same property net operating income is composed of the following:

Three Months Ended
September 30,
Nine Months Ended
September 30,
(In thousands)2025202420252024
Office mixed-use properties (1)
$5,856 $6,486 $18,182 $19,302 
Residential mixed-use properties (residential activity) (2)
5,576 5,530 17,163 16,372 
Residential mixed-use properties (retail activity) (3)
803 814 2,405 2,426 
Total Mixed-Use same property net operating income$12,235 $12,830 $37,750 $38,100 

(1)Includes Avenel Business Park, Clarendon Center – North and South Blocks, 601 Pennsylvania Avenue and Washington Square
(2)Includes Clarendon South Block, The Waycroft and Park Van Ness
(3)Includes The Waycroft and Park Van Ness

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