Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (2011)
33 slides from Saul Centers's shareholder meeting presentation, 2011
Slide 1: Annual Meeting of Shareholders
Contere Sau Centers Annual Meeting of Shareholders 2010 Avant Resort We have prepared a brief slide show to present highlights of 2010 including sucessful activity in the debt markets, our core operating performance, financial results and recent development activities.
Slide 2: Debt Maturities Entering 2010
Debt Maturities Entering 2010 201.0 Maturities = None 201! Maturities = Clarendon construction loan © Matures 11/2011, two 9-month extensions 201 2 Maturities = Fixed-rate debt © $111 million outstanding, due 10/201 2, secured by 9 shopping centers In light of the favorable long-term interest rate e
Slide 3: Debt Transactions - 2010
Debt Transactions - 2010 2 new non-recourse loans totalling $63 million = Thruway and Ravenwood Each loan generated net cash proceeds, $17 million in total Pre-payment costs of $5 million Avg | |.4-year term, 25-year amortization, 5.93% rate ANCES During 2010, we completed 2 new long term non-recour
Slide 4: Debt Transactions - 2011
Debt Transactions - 201 | = Clarendon Center Mortgage = $125 million, | 5-year term, 25-year amortization, 5.31 % rate = $20 million cash proceeds sufficient to complete construction ™ Seven Corners Mortgage = $73 million, |5-year term, 25-year amortization, 5.84% rate = Projected closing April 201
Slide 5: Mortgage Debt Maturities
Mortgage Debt Maturities March 31, 2011 Weighted average maturity of mortgage debt 10:7 years $62 $61 Subject to the May 2012 closing of the Seven Corners loan, our mortgage debt maturities are shown here. Over the next seven years, from 2011 through 2017, our total maturities are $98 million. No mo
Slide 6: Debt Summary
Debt Summary March 31, 2011 97% fixed rate, nonrecourse debt Average mortgage debt interest rate is 6.2% Interest coverage = 2./ times $150 million credit line, none drawn Over $33 million in cash balances Cineis 97% of our debt is now fixed rate, non-recourse property debt. The weighted average int
Slide 7: Capital Structure Highlights
Capital Structure Highlights @ Common Equity ™ Preferred Equity ™ Debt 2008 Year End As of March 31, 2011, we had a total combined debt and equity capitalization of approximately $2 billion, compared to $1.4 billion 5 years ago. Total debt is currently $741 million, represented here in blue. Preferr
Slide 8: Clarendon Center luxury apartments
Clarendon Center 244 luxury apartments 42,000 SF ground floor retail 170,000 SF Class "A” office 2 city blocks adjacent to Metro station Amenities include indoor pool, fitness center, community room Ooriae At year end 2010, construction at our Clarendon Center development was substantally completed.
Slide 9: Clarendon Center South
ea en an ae Here is a shot of Clarendon Center South. The first residential leases for the 244 apartments were signed in November 2010, prior to construction completion. Tenants began occupying the building on December 26, 2010, and as of today, all but 2 apartments are leased and only 10 units rema
Slide 10: Clarendon Center North Block
The North Block contains ground floor retail under 5 stories of office space. The 68,000 square foot Airline Reporting Corporation anchors this block, commencing operations in March 2011. The retail space is 100% leased to restaurant and other small shop service oriented tenants. A total of 25,000 s
Slide 11: Maryland acquisitions near White Flint
Maryland A moment about acquisitions. There are limited opportunities in the market to continue to acquire grocery anchored shopping centers at prices that we consider to be attractive for investment. However, during late 2010, we were able to acquire two retail locations on Rockville Pike, adjacent
Slide 12: 11503 Rockville Pike, Maryland
11503 Rockvile Pike, , Maryland ey ad und The first, on the east side of Rockville Pike is a 20,000 square foot retail property, fully leased to two tenants, Staples being the anchor. The second, on the west side, is a 67,000 square foot multi-tenant retail property that is 89% leased. The price for
Slide 13: Geographic Mix & Property Type
Geographic Mix & Property Type DC. / Baltimore _ Shopping Centers 85% \ 79% * \_ Other 15% 200 Property Operating Income Looking at our overall portfolio, our geographic focus continues to be in the metropolitan Washington, DC market. Over 85% of our 2010 property operating income was generated in t
Slide 14: Overall Portfolio Leasing Percentage
Overall Portfolio Leasing Percentage (Exelliding properties under development) 2 Se x € 5 ps I cS ‘op = G ea oe ‘55 g o = ta The economic challenges of the past few years continue to impact our portfolio's operating performance, primarily as a result of decreased leasing percentage as shown here. Ou
Slide 15: Retail Leasing Summary
Retail Leasing Summary (Excluding properties under development) Same Space Rental Rate Change 3 & & z 5 £ é 2 = ¢ 8 § a a : 3 Ae 2007 2008 -« 200020101011 2007-2008 «= 2008-2010 With the decline in overall consumer spending, retailers continue to struggle with declining sales and limited access to c
Slide 16: Retail Same Property NOI Growth
Retail Same Property NOI Growth 5-yr avg prior to 2008 = 2.8% SalkCeniers Over the five years from 2003 to 2007, we achieved average annual retail net operating income growth of 2.8% on a same property basis. Retail same property growth averaged 1.2% during 2008. Since then, same property operating
Slide 17: Shopping Centers
Shopping Centers (2010) Harris Teeter, Lansdowne Town Center 48 retail properties generate 79% of property operating income 32 centers are grocery anchored & produce 84% of retail operating income Tenants reported) sales averaging $322 per square foot ‘ocers reported sales averaging $482 per square
Slide 18: Favorable Demographics
Favorable Demographics Average household income Within three mile radius of Saul Centers’ retail $110,000 Nien proper! eeds the national average I Saul Centers Avg. $98,400 The long-term success of our core portfolio hinges largely on prime infill locations. Saul Centers' demographics are well above
Slide 19: Core Shopping Centers
Core Shopping Centers (2010) Smallwood Village Center, Waldorf, MD. 221 retail leases signed (1 80 prior year) 67% renewal rate compared to 7 1% previous 3 years Over 1,000,000 square feet leased Lease volume increased but rental rates are decreasing While anchor tenants provide the traffic to the c
Slide 20: Top retail tenants
Top 10 retail tenants Major Retail Tenants provided oniv20% of 2010 Revenue 2010 Revenue Super Fresh Office Depot A diverse retail tenant base minimizes exposure to any one tenant's credit. Of 2010 rental revenue, only Giant Food, at 4.3%, Safeway at 3.1% and Capital One Bank at 2.8% accounted for m
Slide 21: Retail tenants in bankruptcy
3 Retail tenants in Retail Bankruptcies bankruptey provided 1.8% of 2010 Revenue SF % 2010 Revenue The recent bankruptcies of chain's such as Blockbuster Video, A&P operating as Super Fresh, and Border's Books will continue to put pressure on the shopping center industry. Rents from these three tena
Slide 22: Seven Corners
sad 6a CHO Se I'll now review leasing and operations at a few of our significant assets. Seven Corners is a 568,000 square foot community shopping center in Falls Church, Virginia. It is anchored by a Shoppers Food Warehouse and a Home Depot. During 2010, we added a free-standing 6,000 square foot R
Slide 23: Lansdowne Town Center
FT cL ra Sait Centers Lansdowne Towne Center is a 189,000 square foot, Harris Teeter anchored shopping center, located off Route 7, near Leesburg, Virginia. We completed our development of Lansdowne in 2007, our fourth shopping center in Loudoun County. Despite the relative prosperity of Loudoun Cou
Slide 24: Westview Village
We constructed Westview Village on MD Route 85 in Frederick, MD in 2009. This development includes 60,000 square feet of retail shop space, 30,000 square feet of professional office space, and 11,000 square feet of pad space. Leasing was slow throughout 2010, with 36% of the 100,000 square feet leas
Slide 25: Southdale
Southdale is a 484,000 square foot community shopping center located in Glen Burnie, MD, south of Baltimore. The center is anchored by Home Depot, Marshall's, Value City Furniture, and a Fresh World grocery store. Southdale had our only Circuit City store, which vacated 37,000 square feet in 2009 wi
Slide 26: Thruway
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 and Stein Mart, and has of number of nationally recognized tenants such as Rite Aid, Hanesbrands, Talbots, Borders Books, Chi
Slide 27: Office/Mixed-Use Properties
Office/ Mixed-Use Properties & | .6 million square feet = 21% of property operating income = Property operating income decreased 7.5% in 2010 = 40,000 square foot tenant vacated Van Ness Square Our office/mixed-use space totals over 1.6 million square feet. Operating income in the office/mixed-use p
Slide 28: Washington Square office leasing
om COMels Also at year-end 2010, leases expired for two full floor users totalling 64,000 square feet at our Washington Square building in Alexandria, Virginia. Due to business contraction, these tenants required only 15,000 square feet of space collectively upon renewal. As a result, we had an addi
Slide 29: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends equate: annual dividend of $1.44/share. ™@ FFO M™ Dividends FFO results for the past 10 years are highlighted here. Compounded annual FFO growth per share from 2001 through 2007 was 4.8%. Beginning in 2008, we have experienced FFO declines due to the economic
Slide 30: Dividend as a % of FFO
Dividend as a % of FFO Low FFO Payout ratio: 68% of 2010 FFO Was paid a Q & < 3 iS S z = 5 out in dividends, 2009 2010 1a'tt Over the past 5 years, we paid out an average of 66% of our FFO as dividends. As you may know, REITs are required to pay out 90% of taxable income. We have followed a policy o
Slide 31: Total Shareholder Return
Total! Shareholder Return (assumes reinvestment of dividends) Saul Centers! compounded annual return 5S year= 4.496 !O.year = 15.19% fae A Dec 2006 Dec ec 21 Dec 2009 Dec 2010 Mar 2011 == Saul Centers ~~ NAREIT Equity Russell 2000 ~ 500 mal Our 10-year compounded total return now averages 15.1% per
Slide 32: Closing remarks
We remain committed to, and confident in, the long-term performance of our core retail and office properties. Our balance sheet is strong, and we are prepared to endure the potential for continued economic stress. 32
Slide 33: 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," "e d "may." Although we believe that the expectations reflected in such forward-looking stateme