Saul Centers Declares Quarterly Dividends and Provides Business Updates

Rhea-AI Summary

On March 11, 2021, Saul Centers declared a quarterly dividend of $0.53 per share to be paid on April 30, 2021. This matches the previous quarter's dividend. Additionally, dividends of $0.3828125 and $0.375 will be paid for preferred stocks on April 15, 2021. The company reported that 99% of its tenants are operating, with 100% of shopping centers open. Rent collection rates show 95% for Q4 2020, 93% for January 2021, and 92% for February 2021, indicating robust recovery amidst the ongoing pandemic.

Positive

• Quarterly dividend maintained at $0.53, reflecting stability for shareholders.
• 99% of tenants operational, enhancing revenue reliability.
• Collections of 95% for Q4 2020, demonstrating effective rent recovery.

Negative

• 93% and 92% collection rates for January and February 2021 signal potential tenant issues.

BETHESDA, Md., March 11, 2021 /PRNewswire/ -- On March 11, 2021, Saul Centers, Inc. (the "Company," NYSE: BFS) declared a quarterly dividend of $0.53 per share on its common stock, to be paid April 30, 2021, to holders of record as of April 15, 2021. The dividend on the common stock is the same as the amount paid in the previous quarter and the prior year's comparable quarter. 

The Company also declared quarterly dividends on (a) its 6.125% Series D Cumulative Redeemable Preferred Stock in the amount of $0.3828125 per depositary share and (b) its 6.000% Series E Cumulative Redeemable Preferred Stock in the amount of $0.3750000 per depositary share. The dividends on the preferred stock will be paid April 15, 2021, to holders of record as of April 1, 2021.

COVID-19 Update (as of March 10, 2021)

• Our portfolio is comprised of 50 shopping centers and seven mixed-use properties, totaling approximately 9.0 million square feet of retail and office gross leasable area (GLA).  In addition, our portfolio contains three residential properties, comprising over 1,000 luxury apartment units, or approximately 0.8 million square feet.
• Of our 50 shopping centers, 43 are anchored by a grocery store, home improvement store, pharmacy or bank, all of which have remained open during the pandemic due to their "essential business" designations.
• 99% of our tenants are currently open and operating under modified protocols in accordance with state and local guidelines.
• 100% of our shopping centers are currently open.

Collections Update

The following is a summary of the Company's consolidated total collections of fourth quarter 2020, January 2021 and February 2021 rent billings, including minimum rent, operating expense recoveries, and real estate tax reimbursements as of March 10, 2021:

2020 fourth quarter

• 95% of 2020 fourth quarter total billings has been paid by our tenants.
• 94% of retail
• 94% of office
• 100% of residential

January 2021

• 93% of January 2021 total billings has been paid by our tenants.
• 92% of retail
• 90% of office
• 99% of residential

February 2021

• 92% of February 2021 total billings has been paid by our tenants.
• 91% of retail
• 90% of office
• 99% of residential

As of February 28, 2021, approximately $1.2 million in deferred rent has come due, of which, through March 10, 2021, approximately $1.1 million has been repaid (86%), as shown in the following table.

(In thousands)
Original Rent Due By Quarter		Original Rent Amount				Repayment Year		Repayment Amount				Amount Due				Amount Collected				Collection Percentage
2020 First Quarter		$	66			2020		$	331			$	331			$	298			90	%
2020 Second Quarter		6,212				2021		5,764				897				762				85	%
2020 Third Quarter		1,386				2022		1,460
2020 Fourth Quarter		266				2023		320
2021 First Quarter		84				2024		107
Total		$	8,014			2025		16
						Thereafter		16
						Total		$	8,014			$	1,228			$	1,060			86	%

The Waycroft Update

In the first week of April 2020, we delivered The Waycroft, comprised of 491 apartment units and 60,000 square feet of retail space, on North Glebe Road, in Arlington, Virginia. As of March 10, 2021, despite the headwinds of the COVID-19 pandemic, we have executed 453 residential leases, totaling approximately 92% of the available units, and 419 units are occupied, totaling approximately 85% of the available units. The addition of the Waycroft nearly doubled the residential component of our portfolio to over 1,000 luxury residential units. The project is anchored by a 41,500 square foot Target store, which commenced operations in August 2020.

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 61 properties which includes (a) 50 community and neighborhood shopping centers and seven mixed-use properties with approximately 9.8 million square feet of leasable area and (b) four land and development properties. Approximately 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.

More information about Saul Centers is available on the Company's website at www.saulcenters.com.

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, 2020 and include the following: (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (iv) the Company's ability to raise capital by selling its assets, (v) changes in governmental laws and regulations and management's ability to estimate the impact of such changes, (vi) the level and volatility of interest rates and management's ability to estimate the impact thereof, (vii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (viii) increases in operating costs, (ix) changes in the dividend policy for the Company's common and preferred stock and the Company's ability to pay dividends at current levels, (x) the reduction in the Company's income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xi) impairment charges, (xii) unanticipated changes in the Company's intention or ability to prepay certain debt prior to maturity and (xiii) an epidemic or pandemic (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may (as with COVID-19) precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period. 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, 2020.

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SOURCE Saul Centers, Inc.

FAQ

What is the dividend amount declared by Saul Centers on March 11, 2021?

Saul Centers declared a dividend of $0.53 per share on March 11, 2021.

When will Saul Centers pay the dividend declared on March 11, 2021?

The dividend will be paid on April 30, 2021.

What are the collection rates reported for Saul Centers in early 2021?

The collection rates were 95% for Q4 2020, 93% for January 2021, and 92% for February 2021.

What percentage of tenants are operational at Saul Centers?

99% of tenants are currently operational.

What is the significance of the dividend declared by Saul Centers?

The maintenance of the dividend at $0.53 indicates stability and confidence in the company's performance.