Saul Centers, Inc. Reports Third Quarter 2024 Earnings
Saul Centers reported strong Q3 2024 results with total revenue increasing to $67.3 million from $63.8 million in Q3 2023. Net income rose to $19.6 million from $16.7 million, while net income per share increased to $0.48 from $0.42. The company's performance was driven by higher base rent (+$2.2M), increased lease termination fees (+$0.6M), and improved expense recoveries. Same property revenue grew 5.5%, and FFO available to common stockholders increased to $28.9 million ($0.84 per basic share). The commercial portfolio occupancy improved to 95.7% from 94.2% year-over-year, while residential occupancy reached 98.8%.
Saul Centers ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi totali che sono aumentati a 67,3 milioni di dollari rispetto ai 63,8 milioni di dollari del terzo trimestre del 2023. Il reddito netto è salito a 19,6 milioni di dollari rispetto ai 16,7 milioni di dollari, mentre l'utile netto per azione è aumentato a 0,48 dollari rispetto a 0,42 dollari. Le performance dell'azienda sono state sostenute da un aumento dell'affitto base (+2,2 milioni di dollari), da un aumento delle commissioni di risoluzione del contratto (+0,6 milioni di dollari) e da un miglioramento nel recupero delle spese. I ricavi delle proprietà sono cresciuti del 5,5%, e FFO disponibile per gli azionisti è aumentato a 28,9 milioni di dollari (0,84 dollari per azione di base). L'occupazione del portafoglio commerciale è migliorata al 95,7% rispetto al 94,2% dell'anno precedente, mentre l'occupazione residenziale ha raggiunto il 98,8%.
Saul Centers informó resultados sólidos para el tercer trimestre de 2024, con ingresos totales que aumentaron a 67,3 millones de dólares desde 63,8 millones de dólares en el tercer trimestre de 2023. El ingreso neto subió a 19,6 millones de dólares desde 16,7 millones de dólares, mientras que el ingreso neto por acción aumentó a 0,48 dólares desde 0,42 dólares. El desempeño de la empresa fue impulsado por un mayor alquiler base (+2,2 millones de dólares), el aumento de las tarifas de terminación de arrendamientos (+0,6 millones de dólares) y una mejor recuperación de gastos. Los ingresos de la misma propiedad crecieron un 5,5%, y FFO disponible para los accionistas comunes aumentó a 28,9 millones de dólares (0,84 dólares por acción básica). La ocupación de la cartera comercial mejoró al 95,7% desde el 94,2% interanual, mientras que la ocupación residencial alcanzó el 98,8%.
Saul Centers는 2024년 3분기 강력한 결과를 보고하며 총 수익이 6380만 달러에서 6730만 달러로 증가했습니다. 순이익은 1670만 달러에서 1960만 달러로 증가했으며, 주당 순이익도 0.42달러에서 0.48달러로 상승했습니다. 회사의 성과는 기본 임대료의 증가(+220만 달러), 임대 해지 수수료의 증가(+60만 달러), 그리고 경비 회수 개선에 의해 촉진되었습니다. 동일 자산 수익은 5.5% 증가했으며, FFO는 보통 주주들이 이용할 수 있는 금액이 2890만 달러(기본 주식 0.84달러)로 증가했습니다. 상업 포트폴리오 점유율은 전년 대비 94.2%에서 95.7%로 개선되었고, 주거 점유율은 98.8%에 도달했습니다.
Saul Centers a rapporté de solides résultats pour le troisième trimestre de 2024, avec des revenus totaux passant de 63,8 millions de dollars à 67,3 millions de dollars au troisième trimestre de 2023. Le revenu net a augmenté à 19,6 millions de dollars contre 16,7 millions de dollars, tandis que le revenu net par action a crû à 0,48 dollar contre 0,42 dollar. Les performances de l'entreprise ont été soutenues par une augmentation du loyer de base (+2,2 millions de dollars), une hausse des frais de résiliation de bail (+0,6 million de dollars) et une amélioration des récupérations de dépenses. Les revenus des mêmes propriétés ont augmenté de 5,5%, et FFO disponible pour les actionnaires ordinaires est passé à 28,9 millions de dollars (0,84 dollar par action de base). Le taux d'occupation du portefeuille commercial a progressé à 95,7% contre 94,2% d'une année sur l'autre, tandis que le taux d'occupation résidentiel a atteint 98,8%.
Saul Centers berichtete über starke Ergebnisse im dritten Quartal 2024, mit einem Anstieg des Gesamtumsatzes auf 67,3 Millionen Dollar von 63,8 Millionen Dollar im dritten Quartal 2023. Der Nettogewinn stieg auf 19,6 Millionen Dollar von 16,7 Millionen Dollar, während der Nettogewinn pro Aktie auf 0,48 Dollar von 0,42 Dollar anstieg. Die Leistung des Unternehmens wurde durch höhere Grundmieten (+2,2 Millionen Dollar), erhöhte Gebühren für Mietvertragskündigungen (+0,6 Millionen Dollar) und verbesserte Kostenrückrecoveries gestützt. Der Umsatz der gleichen Immobilien wuchs um 5,5%, und FFO verfügbares für die Stammaktionäre stieg auf 28,9 Millionen Dollar (0,84 Dollar pro Basisaktie). Die Belegung des gewerblichen Portfolios verbesserte sich auf 95,7% von 94,2% im Vorjahr, während die Wohnbelegung 98,8% erreichte.
- Revenue increased 5.5% to $67.3M in Q3 2024
- Net income grew 17.4% to $19.6M
- FFO per share increased to $0.84 from $0.78
- Commercial portfolio occupancy improved to 95.7% from 94.2%
- Base rent increased by $2.2M
- Same property operating income grew 6.8%
- Higher general and administrative costs (+$0.5M)
- Lower parking income in Mixed-Use properties (-$0.3M)
Insights
Strong Q3 2024 results showcase robust operational performance with
Key strengths include improved occupancy rates (commercial portfolio at
The REIT's portfolio demonstrates exceptional strength in both retail and residential segments. The shopping center same-property operating income increase of
The mixed-use property performance, despite parking revenue challenges, indicates successful adaptation to post-pandemic usage patterns. The geographic concentration in the D.C./Baltimore area, typically seen as a limitation, has proven advantageous given the region's stable government-influenced economy and high-income demographics. The portfolio mix of 50 shopping centers and 7 mixed-use properties provides a balanced revenue stream with upside potential.
Same property revenue increased
Same property revenue and same property operating income are non-GAAP financial measures of performance and improve the comparability of these measures 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 minus the revenue of properties not in operation for the entirety of the comparable reporting periods. We define same property 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 early extinguishment of debt minus (f) gains on property dispositions and (g) the operating income of properties that were not in operation for the entirety of the comparable periods.
Funds from operations ("FFO") available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) increased to
As of September 30, 2024,
For the nine months ended September 30, 2024 ("2024 Period"), total revenue increased to
Same property revenue increased
FFO available to common stockholders and noncontrolling interests, after deducting preferred stock dividends, increased to
Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in
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 (i) Form 10-K for the year ended December 31, 2023 and (ii) our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 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 (i) our Annual Report on Form 10-K for the year ended December 31, 2023 and (ii) our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.
Saul Centers, Inc. Consolidated Balance Sheets (Unaudited) | |||
(Dollars in thousands, except per share amounts) | September 30, | December 31, | |
Assets | |||
Real estate investments | |||
Land | $ 501,787 | $ 511,529 | |
Buildings and equipment | 1,608,995 | 1,595,023 | |
Construction in progress | 653,176 | 514,553 | |
2,763,958 | 2,621,105 | ||
Accumulated depreciation | (758,105) | (729,470) | |
Total real estate investments, net | 2,005,853 | 1,891,635 | |
Cash and cash equivalents | 7,197 | 8,407 | |
Accounts receivable and accrued income, net | 59,824 | 56,032 | |
Deferred leasing costs, net | 25,474 | 23,728 | |
Other assets | 14,676 | 14,335 | |
Total assets | $ 2,113,024 | $ 1,994,137 | |
Liabilities | |||
Mortgage notes payable, net | $ 1,027,386 | $ 935,451 | |
Revolving credit facility payable, net | 187,296 | 274,715 | |
Term loan facility payable, net | 99,642 | 99,530 | |
Construction loans payable, net | 178,558 | 77,305 | |
Accounts payable, accrued expenses and other liabilities | 59,211 | 57,022 | |
Deferred income | 28,889 | 22,748 | |
Dividends and distributions payable | 23,358 | 22,937 | |
Total liabilities | 1,604,340 | 1,489,708 | |
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, respectively, 24,279,719 and 24,082,887 shares issued and outstanding, respectively | 241 | 241 | |
Additional paid-in capital | 453,074 | 449,959 | |
Distributions in excess of accumulated net income | (297,498) | (288,825) | |
Accumulated other comprehensive income | 1,029 | 2,014 | |
Total Saul Centers, Inc. equity | 341,846 | 348,389 | |
Noncontrolling interests | 166,838 | 156,040 | |
Total equity | 508,684 | 504,429 | |
Total liabilities and equity | $ 2,113,024 | $ 1,994,137 | |
Saul Centers, Inc. Consolidated Statements of Operations (Unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(Dollars in thousands, except per share amounts | 2024 | 2023 | 2024 | 2023 | |||
Revenue | |||||||
Rental revenue | $ 65,550 | $ 62,369 | $ 194,544 | $ 186,199 | |||
Other | 1,738 | 1,397 | 6,379 | 4,325 | |||
Total revenue | 67,288 | 63,766 | 200,923 | 190,524 | |||
Expenses | |||||||
Property operating expenses | 10,111 | 9,720 | 30,312 | 27,502 | |||
Real estate taxes | 7,620 | 7,641 | 22,852 | 22,589 | |||
Interest expense, net and amortization of deferred debt costs | 12,213 | 12,419 | 36,928 | 36,518 | |||
Depreciation and amortization of deferred leasing costs | 12,072 | 12,096 | 36,102 | 36,227 | |||
General and administrative | 5,680 | 5,179 | 17,565 | 16,125 | |||
Total expenses | 47,696 | 47,055 | 143,759 | 138,961 | |||
Gain on disposition of property | — | — | 181 | — | |||
Net Income | 19,592 | 16,711 | 57,345 | 51,563 | |||
Noncontrolling interests | |||||||
Income attributable to noncontrolling interests | (5,111) | (3,892) | (14,786) | (12,080) | |||
Net income attributable to Saul Centers, Inc. | 14,481 | 12,819 | 42,559 | 39,483 | |||
Preferred stock dividends | (2,798) | (2,798) | (8,395) | (8,395) | |||
Net income available to common stockholders | $ 11,683 | $ 10,021 | $ 34,164 | $ 31,088 | |||
Per share net income available to common stockholders | |||||||
Basic and diluted | $ 0.48 | $ 0.42 | $ 1.42 | $ 1.29 | |||
Reconciliation of net income to FFO available to common stockholders and noncontrolling interests (1) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 19,592 | $ 16,711 | $ 57,345 | $ 51,563 | |||
Subtract: | |||||||
Gain on disposition of property | — | — | (181) | — | |||
Add: | |||||||
Real estate depreciation and amortization | 12,072 | 12,096 | 36,102 | 36,227 | |||
FFO | 31,664 | 28,807 | 93,266 | 87,790 | |||
Subtract: | |||||||
Preferred stock dividends | (2,798) | (2,798) | (8,395) | (8,395) | |||
FFO available to common stockholders and noncontrolling interests | $ 28,866 | $ 26,009 | $ 84,871 | $ 79,395 | |||
Weighted average shares and units: | |||||||
Basic | 34,560 | 33,357 | 34,469 | 33,341 | |||
Diluted (2) | 34,582 | 34,068 | 34,479 | 34,049 | |||
Basic FFO per share available to common stockholders and noncontrolling interests | $ 0.84 | $ 0.78 | $ 2.46 | $ 2.38 | |||
Diluted FFO per share available to common stockholders and noncontrolling interests | $ 0.83 | $ 0.76 | $ 2.46 | $ 2.33 | |||
(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. |
(2) | Beginning March 5, 2021, fully diluted shares and units includes 1,416,071 limited partnership units that were held in escrow related to the contribution of Twinbrook Quarter. Half of the units held in escrow were released on October 18, 2021. The remaining units held in escrow were released on October 18, 2023. |
Reconciliation of revenue to same property revenue (1) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||
Total revenue | $ 67,288 | $ 63,766 | $ 200,923 | $ 190,524 | |||
Less: Acquisitions, dispositions and development properties | — | — | — | — | |||
Total same property revenue | $ 67,288 | $ 63,766 | $ 200,923 | $ 190,524 | |||
Shopping Centers | $ 46,463 | $ 44,014 | $ 140,161 | $ 132,214 | |||
Mixed-Use properties | 20,825 | 19,752 | 60,762 | 58,310 | |||
Total same property revenue | $ 67,288 | $ 63,766 | $ 200,923 | $ 190,524 | |||
Total Shopping Center revenue | $ 46,463 | $ 44,014 | $ 140,161 | $ 132,214 | |||
Less: Shopping Center acquisitions, dispositions and development properties | — | — | — | — | |||
Total same Shopping Center revenue | $ 46,463 | $ 44,014 | $ 140,161 | $ 132,214 | |||
Total Mixed-Use property revenue | $ 20,825 | $ 19,752 | $ 60,762 | $ 58,310 | |||
Less: Mixed-Use acquisitions, dispositions and development properties | — | — | — | — | |||
Total same Mixed-Use property revenue | $ 20,825 | $ 19,752 | $ 60,762 | $ 58,310 | |||
(1) | 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. Same property revenue adjusts property revenue by subtracting 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, | ||||||
(Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Office mixed-use properties (1) | $ 10,596 | $ 9,805 | $ 30,411 | $ 28,806 | |||
Residential mixed-use properties (residential activity) (2) | 9,047 | 8,774 | 26,853 | 26,043 | |||
Residential mixed-use properties (retail activity) (3) | 1,182 | 1,173 | 3,498 | 3,461 | |||
Total Mixed-Use same property revenue | $ 20,825 | $ 19,752 | $ 60,762 | $ 58,310 | |||
(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 |
Reconciliation of net income to same property operating income (1) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 19,592 | $ 16,711 | $ 57,345 | $ 51,563 | |||
Add: Interest expense, net and amortization of deferred debt costs | 12,213 | 12,419 | 36,928 | 36,518 | |||
Add: Depreciation and amortization of deferred leasing costs | 12,072 | 12,096 | 36,102 | 36,227 | |||
Add: General and administrative | 5,680 | 5,179 | 17,565 | 16,125 | |||
Less: Gain on disposition of property | — | — | (181) | — | |||
Property operating income | 49,557 | 46,405 | 147,759 | 140,433 | |||
Less: Acquisitions, dispositions and development properties | — | — | — | — | |||
Total same property operating income | $ 49,557 | $ 46,405 | $ 147,759 | $ 140,433 | |||
Shopping Centers | $ 36,362 | $ 34,069 | $ 109,143 | $ 103,547 | |||
Mixed-Use properties | 13,195 | 12,336 | 38,616 | 36,886 | |||
Total same property operating income | $ 49,557 | $ 46,405 | $ 147,759 | $ 140,433 | |||
Shopping Center operating income | $ 36,362 | $ 34,069 | $ 109,143 | $ 103,547 | |||
Less: Shopping Center acquisitions, dispositions and development properties | — | — | — | — | |||
Total same Shopping Center operating income | $ 36,362 | $ 34,069 | $ 109,143 | $ 103,547 | |||
Mixed-Use property operating income | $ 13,195 | $ 12,336 | $ 38,616 | $ 36,886 | |||
Less: Mixed-Use acquisitions, dispositions and development properties | — | — | — | — | |||
Total same Mixed-Use property operating income | $ 13,195 | $ 12,336 | $ 38,616 | $ 36,886 | |||
(1) | Same property 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. Same property operating income adjusts property operating income by subtracting the results of properties that were not in operation for the entirety of the comparable periods. Same property 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 operating income should not be considered as an alternative to property operating income, its most directly comparable GAAP measure, as an indicator of the Company's operating performance. Management considers same property 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 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 operating income. Accordingly, same property operating income may not be comparable to those of other REITs. |
Mixed-Use same property operating income is composed of the following: | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Office mixed-use properties (1) | $ 6,847 | $ 6,177 | $ 19,644 | $ 18,354 | |||
Residential mixed-use properties (residential activity) (2) | 5,489 | 5,297 | 16,412 | 16,023 | |||
Residential mixed-use properties (retail activity) (3) | 859 | 862 | 2,560 | 2,509 | |||
Total Mixed-Use same property operating income | $ 13,195 | $ 12,336 | $ 38,616 | $ 36,886 | |||
(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 |
View original content:https://www.prnewswire.com/news-releases/saul-centers-inc-reports-third-quarter-2024-earnings-302299364.html
SOURCE Saul Centers, Inc.
FAQ
What was Saul Centers (BFS) revenue in Q3 2024?
What was Saul Centers (BFS) earnings per share in Q3 2024?
What was Saul Centers (BFS) occupancy rate in Q3 2024?
What was Saul Centers (BFS) FFO per share in Q3 2024?
