Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (2013)
30 slides from Saul Centers's shareholder meeting presentation, 2013
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders We have prepared a brief slide show to present balance sheet and operating performance highlights of 2012 and recent first quarter 2013 activity, and our current and future development plans. 1
Slide 2: 2012 - 2013 Balance Sheet Highlights
2012 - 2013 Balance Sheet Highlights $140 million Preferred Stock Issue $100 million New Permanent Financings New Corporate Line of Credit During the past 15 months, we completed several equity and debt transactions which have improved our balance sheet and reduced our overall cost of capital. We re
Slide 3: Preferred Stock
Preferred Stock Issued $140 million 6 7/8% Perpetual Preferred C Redeemed $140 million higher coupon preferred All $80 million of 9% Preferred B $60 million of 8% Preferred A Reduced preferred stock dividends Weighted avg rate reduced 1.3% from 8.4% to 7.1% Annual dividends reduced $2.3 million In F
Slide 4: New Permanent Financings
New Permanent Financings 15-Year Financings New Financings Loans Repaid Rate Financed Rate Financed Rate Savings ($s millions) ($s millions) Seven Corners $ 73.0 5.84% 7 Property Mortgage Pool $ 63.9 7.67% White Oak 10.5 4.90% Smallwood Village 10.1 6.12% Hampshire Langley 18.0 4.04% 601 Pennsylvani
Slide 5: New Corporate Line of Credit
New Corporate Line of Credit Closed $175 million line of credit May 2012 4-year term with 1-year extension at Company's option Rate lowered by 3.24%, currently LIBOR + 1.9%, or 2.11% In May 2012, we completed a new 4-year, $175 million line of credit, which replaced an expiring $150 million line. Th
Slide 6: Mortgage Debt Maturities
Mortgage Debt Maturities May 1, 2013 $150 Weighted average maturity of $135 mortgage debt 10.0 years $100 Millions $67 $62 $61 $50 $42 $37 $29 $28 $20 $13 $15 $11 $9 $9 $0 21 7 7 13 15 18 22 23 25 28 14 16 19 24 26 20 1 2 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Year Debt Matures (Excludes sc
Slide 7: Balance Sheet Strength
Balance Sheet Strength 92% fixed rate, nonrecourse debt Average mortgage interest rate is 5.65% $175 million credit line - $140 million available 601 Pennsylvania Ave., free & clear of debt 92% of our total debt is fixed rate, nonrecourse debt. Throughout 2012, the favorable interest rate environmen
Slide 8: Market Capitalization Highlights
Market Capitalization Highlights 3/28/2013 closing price = $43.74/sh $2,195 Common Equity Preferred Equity Debt $2,000 $1,500 53.7% Millions $1,060 $1,000 8.6% $603 $500 $100 37.7% $357 2011 2007 2003 1Q 2013 2002 2005 2008 2012 2004 2009 2006 2010 Year End As of March 31, 2013, our total combined d
Slide 9: Operating Highlights
Operating Highlights Overall leasing percentage trending upward Retail tenant sales improving Retail rental rates increasing Retail same center property operating income in excess of 3.5% last 3 quarters Slowly improving economic conditions had a positive impact on our operating performance during 2
Slide 10: Average Leasing Percentage
Overall Portfolio Leasing Percentage (Excluding properties under development) 96.8% 95.8% Average Leasing Percentage 94.7% 94.9% 94.0% 10-year average = 93.4% 93.3% 92.9% 91.9% 91.9% 92.1% 89.9% 11 * * 07 03 05 08 04 09 06 10 12 13 20 20 20 20 20 20 20 20 20 20 20 tQ 1s * Impact of property repositi
Slide 11: Retail Leasing Summary
Retail Leasing Summary (Excluding properties under development) 95.8% Same Space Rental Rate Change 94.8% Average Leasing Percentage 93.8% 93.4% 92.7% 11.1% 5-yr avg. prior to 92.2% 10.1% 2008 = 8.7% 91.0% 1.6% 0.3% -1.2% -6.8% -6.3% 2007 2008 2009 2010 2011 2012 1Q '13 2007 2008 2009 2010 2011 2012
Slide 12: Retail Same Property NOI Growth
Retail Same Property NOI Growth 5.2% 5-yr avg. prior to 2008 = 2.8% Percentage Change 2.0% 1.2% -0.7% -2.2% -3.5% 11 3 08 12 09 10 '1 20 20 20 20 20 1Q During the 5-years prior to 2008, on a same property basis, we achieved average annual retail net operating income growth of 2.8%. Retail same prope
Slide 13: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends 5-yr avg. FFO per share Current dividend of $2.75 growth prior to 2008 = $2.68 4.6%/yr $2.57 $.36/share $2.42 $2.40 equates to an $2.26 $2.20 annual dividend of $2.10 $2.12 $2.03 $1.44/share. 1.88 1.77 1.68 1.56 1.56 1.60 1.53 1.44 1.44 1.44 2003 2004 2005 200
Slide 14: Dividend Payout
Dividend as a % of FFO Conservative FFO payout ratio: 64% of 71% 2012 FFO Dividend Payout 70% 68% 64% 64% 64% was paid out in dividends. 2007 2008 2009 2010 2011 2012 Over the past 5 years, we paid out an average of 66% of FFO as dividends. While the dividend payout increased from 2009 to 2011, the
Slide 15: Geographic Mix & Property Type
Geographic Mix & Property Type DC. / Baltimore 85% Shopping Centers 75% Mixed-Use Other 25% 15% 2012 Property Operating Income Our portfolio geographic focus continues to be in the metropolitan Washington, DC market. About 85% of our 2012 property operating income was generated in the metropolitan W
Slide 16: Shopping Centers
Shopping Centers (2012) Cranberry Square, Westminster, Maryland 50 retail properties generated 75% of property operating income 33 centers were grocery anchored & produced 82% of retail operating income Tenants reported sales averaging $339 per square foot Grocers reported sales averaging $491 per s
Slide 17: Favorable Demographics
Favorable Demographics Average household income within three mile radius of $120,000 Saul Centers' retail properties exceeds the $100,000 national average $80,000 Saul Centers Avg.. $114,000 National Avg.. $68,200 $60,000 Source: U.S. Census Bureau, Census 2000 ESRI forecasts for 2011. $40,000 Saul
Slide 18: Major Retail Tenants
Top 10 retail tenants provided only 19% Major Retail Tenants of the Company's 2012 Total Revenue Tenant Name Locations Retail SF % 2012 Total Revenue Giant Food 10 8.2% 5.0% Safeway 8 5.0% 2.7% Capital One Bank 20 0.9% 2.3% CVS 6 1.4% 1.5% Publix 5 3.1% 1.4% Lowe's Home Center 2 3.3% 1.4% Harris Tee
Slide 19: Seven Corners
Seven Corners Seven Corners, Falls Church, Virginia Seven Corners is a 570,000 square foot community shopping center in Falls Church, Virginia, anchored by Shoppers Food Warehouse, Home Depot and Burlington Coat. During 2011, Syms declared chapter 7 bankruptcy and terminated their lease in December,
Slide 20: Thruway
Thruway Thruway, Winston-Salem, North Carolina Thruway is generally regarded as the leading community shopping center in Winston-Salem, North Carolina. This 363,000 square foot shopping center is anchored by Harris Teeter, Stein Mart and Trader Joe's, and has many nationally recognized tenants such
Slide 21: Kentlands Square
Kentlands Square Kentlands Square, Gaithersburg, Maryland We own a total of 395,000 square feet of community shopping center space in the Kentlands area of Gaithersburg, Maryland, in Montgomery County. More than 38,000 households, with annual household incomes averaging over $128,000, are located wi
Slide 22: Office/Mixed-Use Properties
Office/Mixed-Use Properties 1.5 million square feet Avenel Business Park, Gaithersburg, MD Excludes Van Ness Square, being positioned for development 25% of property operating income 601 Pennsylvania Ave.., Washington DC Clarendon Center, Arlington, VA Our office/mixed-use space totals over 1.5 mill
Slide 23: Major Office Tenants
Top 10 office tenants provided Major Office Tenants only 9% of the Company's 2012 Total Revenue Tenant Name Locations M-U SF % 2012 Total Year Revenue Expiring Airline Reporting Corp. 1 4.8% 1.7% 2023 American Health Ins. Plans 1 3.9% 1.6% 2014 National Gallery of Art 1 2.5% 1.2% 2014 Credit Union N
Slide 24: 601 Pennsylvania Ave.
601 Pennsylvania Ave. 601 Pennsylvania Ave. NW, Washington DC 601 Pennsylvania Avenue is 95% leased. Of the top four tenants shown on the previous Major Office Tenant schedule that represent more than 1.0% of our revenue, two are long-term leases expiring in 2023, and two expire next year. These two
Slide 25: Clarendon Center
Clarendon Center North Block Office Building Lyon Place Apartments We completed construction at the Clarendon Center development at yearend 2010. The project includes Lyon Place, a residential tower with 244 luxury apartment units, 42,000 square feet of street-level retail and 170,000 square feet of
Slide 26: Development
Development Van Ness Square Street View to Rock Creek Park 4455 Connecticut Ave. NW, Washington DC During 2012, we positioned our Van Ness Square office/retail property for redevelopment by not renewing expiring leases and entering into early lease termination agreements. As of last week, we success
Slide 27: Future Development Pipeline
Future Development Pipeline 4 development sites acquired in 2010-2012 with potential of over 2.1 million SF M 1500 Rockville Pike Flagship Pads (legacy ownership) M Metro Pike Center 11503 Rockville Pike 5541 Nicholson Lane Rockville Pike, Montgomery County, MD Looking beyond our development of Van
Slide 28: Total Shareholder Return
Total Shareholder Return (assumes reinvestment of dividends) Saul Centers' compounded annual return: 10 year = 10.9% $350 NAREIT Equity $300 Saul Centers Total Return $100 Invested Russell 2000 $250 S & P 500 $200 $150 $100 Dec 2002 Dec 2004 Dec 2006 Dec 2008 Dec 2010 Dec 2012 Dec 2003 Dec 2005 Dec
Slide 29: We remain committed to, and confident in, the long-term performance
NYSE Symbol: B F S Annual Meeting of Shareholders Severna Park MarketPlace, Severna Park, Maryland We remain committed to, and confident in, the long-term performance of our core retail and mixed-use properties. Our balance sheet is strong, and we are prepared for new challenges during this period o
Slide 30: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements are generally characterized by terms such as "believe," "expect" and "may." Although we believe that the expectations reflected in such forward-looking