Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (2024)
28 slides from Saul Centers's shareholder meeting presentation, 2024
Slide 1: Saul Centers Annual Presentation to Shareholders 2024
Saul Centers Annual Presentation to Shareholders 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Safe Harbor Statement Certain matters discussed within this presentation 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 contai
Slide 3: Non-GAAP Measures
Non-GAAP Measures Funds from Operations (“FFO”) 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 b
Slide 4: Total Portfolio Composition
Total Portfolio Composition (measured by property operating income) During 2023, 74% of property operating income was generated by shopping centers. 11.2% 2023 14.7% Shopping Centers – 74.1% 74.1% Office – 14.7% Shopping Centers Apartments – 11.2% Office Apartments 2013 Shopping Centers – 75.6% Offi
Slide 5: Total Portfolio Growth (2004-2023)
Total Portfolio Growth (2004 - 2023) $200 $200 $180 $180 Property Operating Income (in millions) $160 $160 $140 $140 $120 $120 $100 $100 $80 $80 $60 $60 $40 $40 $20 $20 $0 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Growth Since Inception in
Slide 6: Portfolio Development Spotlight: The Waycroft
PortfolioDevelopment Mixed-Use Spotlight The Waycroft 750 N. GlebeVARoad Arlington, Arlington, Virginia 6 The year 2023 was the first year with all retail space at The Waycroft leased and operating for the full 12 months. The property’s 491-unit apartment building is 98% leased. Overall, property ne
Slide 7: Shopping Center Pad Sites
Shopping Center Pad Sites ➢ We leverage land available at our existing centers to add pad site buildings ➢ We currently have four pad sites either under lease or under negotiation ➢ Tenants at two new pad sites opened in 2023 ➢ Wendy’s at Beacon Center ➢ Shake Shack at Kentlands Square Wendy’s at Be
Slide 8: Shopping Center Core Operations
Shopping Center Core Operations Shopping Center Property Operating Income from Centers Anchored by Grocery $140,000 $120,000 $114,723 81% $100,000 ● $87,214 $80,000 77% ● $60,000 $40,000 $20,000 $0 2013 2023 Property Operating Income ($000s) Annual Presentation to Shareholders – May 13, 2022 89 Thir
Slide 9: Shopping Center Leasing Percentage
Shopping Center Leasing Percentage 98% 10 yr. Avg. = 94.9% 95.4% 96.0% 96% 94.8% 95.2% 95.5% 95.3% 95.1% 94.7% 94% 93.4% Year-End Leasing Percentage 93.1% 92% 90% 88% 86% 84% 82% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 9 Over the past ten years, our year-end shopping center leasing percent
Slide 10: Shopping Center Small Shop Leasing Percentage
Shopping Center Small Shop Leasing Percentage (in-line spaces < 10,000 square feet) 10 yr. Avg. = 91.0% 98% 94.7% 94% 92.1% 91.1% 91.2% 90.4% 91.0% 90.2% 91.2% Year-End Small Shop Leasing Percentage 90% 89.6% 88.9% 86% 82% 78% 74% 70% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 As of Decemb
Slide 11: Shopping Center Tenant Renewal Percentage
Shopping Center Tenant Renewal Percentage 10 yr. Avg. = 77.8% 88% 84.7% 83% 82.2% 80.5% 79.0% 78.0% Average Renewal Percentage 78% 76.0% 76.0% 75.0% 74.0% 73.0% 73% 68% 63% 58% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 11 A significant contributor to property operating income growth is the n
Slide 12: Shopping Center Operating Income Growth
Shopping Center Operating Income Growth 7.0% 5.7% 5.4% 5.0% 4.2% 3.0% 3.0% 2.1% 1.6% 0.9% 1.0% 0.4% -1.0% -1.1% -3.0% -5.0% -5.0% -7.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 12 After a sharp increase in 2021 following the height of the COVID-19 pandemic in 2020, our shopping center prope
Slide 13: Shopping Center Lease Expirations Schedule
Shopping Center Lease Expirations Schedule $24,000 $23,483 $21,674 $19,140 Annual Minimum Rent (in thousands) $18,000 $16,997 $15,790 $15,002 $12,313 $12,000 $6,413 $6,000 $5,036 $3,641 $3,907 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Thereafter 13 The majority of our shopping center tena
Slide 14: Office
Office 601 Pennsylvania Avenue, Washington, DC 14 The office market continues to be challenging as workforce trends, urbanization, and the aftermath of the COVID- 19 pandemic are reshaping tenant preferences and office attendance. Annual Presentation to Shareholders – May 17, 2024 14
Slide 15: Office Leasing Percentage
Office Leasing Percentage 98% 10 yr. Avg. = 88.7% 94.5% 93.6% 94% 91.1% 90.8% 91.6% 90% 88.4% 86.5% 86.0% Year-End Leasing Percentage 86% 82.3% 82.5% 82% 78% 74% 70% 66% 62% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 15 Over the past ten years, our year-end office leasing percentage has avera
Slide 16: Portfolio Significant Tenant Concentration
Portfolio Significant Tenant Concentration Percentage of Percentage of Tenant Name # of Locations Portfolio SF Portfolio Revenue Giant Food 11 6.7% 4.9% CVS 10 1.3% 1.9% America’s Health Insurance Plans 1 0.6% 1.6% Capital One 10 0.3% 1.4% Airlines Reporting Corporation 1 0.7% 1.4% Publix Super Mark
Slide 17: Apartments
Apartments Lyon Place Park Van Ness The Waycroft Arlington, VA Washington, DC Arlington, VA Delivered: 2010 Delivered: 2016 Delivered: 2020 Twinbrook Quarter Phase I Hampden House Rockville, MD Bethesda, MD Projected Delivery: 2024 Projected Delivery: 2025 17 Our recent and future development focus
Slide 18: Apartments Leasing Percentage
Apartments Leasing Percentage 100% 98.9% (Includes Stabilized Properties Only) 10 yr. Avg. = 97.2% 97.8% 98.2% 98.0% 96.7% 96.7% 97.1% 97.2% 96.3% 96% Year-End Leasing Percentage 94.8% 92% 88% 84% 80% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 18 As of December 31, 2023, our apartment leasing
Slide 19: Apartments Property Operating Income
Apartments Property Operating Income (as % of total portfolio property operating income) 12.0% 11.2% 10.4% 10.0% 9.3% 8.0% 6.3% 6.4% 6.1% 6.0% 5.6% 4.0% 3.2% 3.0% 3.1% 2.0% 0.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cumulative Total Portfolio Apartment Units Available * Lyon Place at Cla
Slide 20: Development and Growth
Development and Growth Development Pipeline Mixed-Use development pipeline nearby three Metro sites • 2,231 apartment units Twinbrook Quarter • 483,000 SF of retail and Hampden House • 431,000 SF of office • 1,600,000 SF of additional mixed-use North Bethesda (White Flint) development Green arrows i
Slide 21: Twinbrook Quarter
Twinbrook Quarter Rockville, Maryland 21 During the past year, we continued construction of the residential and retail portions of Twinbrook Quarter Phase I. The first phase of our 18-acre project in Rockville, Maryland, is located adjacent to the Twinbrook Station on Metrorail’s Red Line. Phase I w
Slide 22: Twinbrook Quarter
Twinbrook Quarter Rockville, Maryland 22 Sitework and ground floor retail façade work continues around all four sides of the building. Apartment unit construction is in process on levels two through 12 and work is in process on the lobbies and interior amenity spaces. Initial delivery of Phase I is
Slide 23: Hampden House
Hampden Mixed-Use House Development Bethesda, Maryland 750 N. Glebe Road Arlington, Virginia Rendering of proposed Glebe Road development 23 Our Hampden House development is located adjacent to both the forthcoming Maryland Purple Line light rail and the Metrorail’s Red Line in downtown Bethesda, Ma
Slide 24: Hampden House
Hampden Mixed-Use House Development Bethesda, Maryland 750 N. Glebe Road Arlington, Virginia Rendering of proposed Glebe Road development 24 Above grade construction of the structure is nearing completion and has topped out at the roof level. Exterior sheathing and window installation has begun. Int
Slide 25: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends $3.50 FFO per share Dividend per share $3.18 $3.14 $3.17 $3.11 $3.08 $3.10 $3.03 $2.95 $3.00 $2.88 $2.80 $2.50 $2.34 $2.36 $2.20 $2.09 $2.12 $2.12 $2.05 $2.00 $1.92 $1.72 $1.60 $1.50 $1.00 $0.50 $0.00 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 25 FFO wa
Slide 26: Debt Structure
Debt Structure (as of March 31, 2023) • $525 million unsecured credit facility ($100 million term loan and $425 million line of credit) • As of March 31, 2024, $374 million was outstanding under the credit facility • 80.8% of total debt is fixed-rate, with an average interest rate of 4.68% • Weighte
Slide 27: Capital Summary
Capital Summary • $185 million perpetual preferred stock carries a 6.05% weighted average dividend rate • As of March 31, 2024, our cash balance was approximately $7.1 million and our undrawn availability under our credit facility was approximately $127.6 million Debt Preferred Equity Common Equity
Slide 28: Thank You
Thank You 28 Annual Presentation to Shareholders – May 17, 2024 28