Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (May 2012)
33 slides from Saul Centers's shareholder meeting presentation, May 14, 2012
Slide 1: Annual Meeting of Shareholders - 2011 Annual Report to Shareholders
Exhibit 99(a) Meeting Annual Saul Shareholders 2011 Centers ANNUAL of REPORT TO SHAREHOLDERS We have prepared a brief slide show to present highlights of 2011 including successful development and acquisition activity, and our core operating performance and financial results. 1
Slide 2: Clarendon Center Development - South Block
Clarendon Development South Saul Centers Block Center At year-end 2010, construction at our Clarendon Center development was substantially completed. The project includes a residential tower with 244 luxury apartment units, 42.000 square feet of street-level retail stores and 170,000 square feet of
Slide 3: Clarendon Center Development - North Block
Clarendon Development North Saul Centers Block Center The North Block contains street level retail with 5 stories of office space above. The 68,000 square foot Airline Reporting Corporation took occupancy as the anchor office tenant in March 2011. 16,000 square feet of office space in this project r
Slide 4: Acquisitions in 2011
3 shopping Acquisitions acquired State Teachers Severna Kentlands Cranberry Saul Centers of Maryland Park in Fund Square, centers 2011 Marketplace, from Westminster, Gaithersburg, Severna Maryland Maryland Park, Maryland A moment about acquisitions. There continue to be limited opportunities in the
Slide 5: Acquisition: Cranberry Square, Westminster, Maryland
Acquisition Cranberry Saul Centers Square Westminster, Maryland Square, We purchased Cranberry Square for $33 million. Cranberry Square, the dominant grocery-anchored neighborhood shopping center in Westminster, MD contains 140,000 square feet. The center was constructed in 1991, is 91.2% leased and
Slide 6: Acquisition: Severna Park Marketplace, Severna Park, Maryland
Acquisition Severna Saul Centers Park Marketplace, Marketplace Severna Park, Maryland We purchased Severna Park Marketplace for $61 million. Severna Park Marketplace is a 254,000 square foot shopping center located in Severna Park, Maryland, in Anne Arundel County. More than 15,000 households with a
Slide 7: Acquisition: Kentlands Square, Gaithersburg, Maryland
Acquisition Kentlands Saul Centers Square Gaithersburg, Gaithersburg, Maryland Square, We purchased Kentlands Square for $74.5 million. Kentlands Square is a 214,000 square foot community shopping center located in Gaithersburg, Maryland, in Montgomery County, adjacent to two of our existing retail
Slide 8: Geographic focus and property type mix
Geographic DC. Other Shopping Mixed-Use 2011 Saul /Centers Property Baltimore 15%Centers 24% Mix Operating 85% &76% Property Income Type Looking at our overall portfolio, our geographic focus continues to be in the metropolitan Washington, DC market. About 85% of our 2011 property operating income w
Slide 9: Overall portfolio leasing percentage
Overall (Excluding Average 1st 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 89.9% 90.5% 91.9% 94.9% 95.8% 96.8% 94.7% 94.0% 93.3% 94.1% 10-year SaulQCenters 2012 Portfolio average Leasing properties =Percentage Leasing 93.7% under Percentage development) The economic challenges of the past few
Slide 10: Retail leasing summary and same space rental rate change
Retail (Excluding Average 91.5% 91.0% 92.2% 93.4% 94.8% Same 5-yr IQ 2011 2010 2009 2008 2.8% -6.3% -6.8% -1.2% 10.1% Saul ’12 avg. Centers Space Leasing Leasing prior properties Rental to Summary Percentage 2008 Rate under = Change 8.7%development) After several challenging years in the financial a
Slide 11: Retail same property NOI growth
Retail Percentage 5-yr IQ 2011 2010 2009 2008 -0.5% -2.2% -0.7% -3.5% 1.2% Saul ‘12 avg. Centers Same prior Change Property to 2008NOI = 2.8% Growth 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 property
Slide 12: Shopping centers: grocery-anchored retail operating income
Shopping Northrock, (2011) 51 35 Tenants Grocers Saul retail centers Centers reported properties Centers are Warrenton, grocery sales generate anchored averaging Virginia 76%&$323 $486 ofproduce property per square 82% operating offoot retailincome operating income During 2011, property operating in
Slide 13: Favorable demographics
Favorable $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 Average National Source: ESRI Saul Centers forecasts U.S. household Avg. Avg.. Demographics Avg. Avg.. Census $71,400 for 2011. $97,600 income Bureau,within Censusthree 2000 mile radius of Saul Centers’ retail properties exceeds the national
Slide 14: Core retail leasing volume and rental rates
Coreretail Boulevard, (2011) 224 Over Lease Saul Centers Shopping 1,000,000 volume leases Fairfax, increased Centers square signed VAfeet butleased rental rates remain under pressure While anchor tenants provide stability and traffic to the centers, small shop leasing is a major driver of growth in
Slide 15: Major retail tenants
Major Top Tenant Giant Safeway Capital CVS Publix Lowe’s Harris Home Office Staples Totals Saul 10 Centers 6Food 64 Retail Depot Teeter 51.4% Name retail One 3Home 3.1% 80.8% 28.1% 5.0% 10 Bank 1.6% Tenants tenants 235Locations Center 1.6% 7.4% 3.1% 1.8% 0.8% 1.5% 18.9% 3.0% 204.3% provided 1.2% 1.4
Slide 16: Major office tenants
Major Top Tenant Revenue American National Credit HQ Southern U. AECOM BRLI Seracare Pharmaceutical Totals Saul S.Global 10 Centers Government Acquisition 11 Office Union Name office Life Gallery Expiring Company (former 22.7% Health Workplace Tenants Natl. Locations tenants Sciences Care 8.2% of In
Slide 17: Anchor tenant vacancies
Anchor 79 Tenant Re-leased Borders Syms All Totals 4 $2.1 Saul Retail %Green million Centers of Seven 167,500 Name Tenant anchor vacated Books Super Market ($0.08/sh) Corners Property Vacancies 1.8% Thruway tenants space Fresh Southdale 132,300 49,100 has Lumberton Square caused FFO 25,100 been loss
Slide 18: Seven Corners, Falls Church, Virginia
SevenCenters Saul Corners Falls Church, Virginia Corners, 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 2011, Syms declared chapter 7 bankruptcy and terminated their lease early on Dece
Slide 19: Thruway, Winston-Salem, North Carolina
Thruway, Thruway Saul Centers 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 and Stein Mart, and has a number of nationally recognized tenants
Slide 20: Southdale, Glen Burnie, Maryland
Southdale, Southdale Saul Centers Glen Burnie, Maryland 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, and Value City Furniture. In 2011, a 48,000 square foot tenant defaulted on their lea
Slide 21: Small shop tenant defaults continue to decline
RetailCenters Small Total Tenants Space Year 2009 2010 2011 Saul (SF) 2,302,208 2,399,482 2,358,848 Small Shop Leased Small Leasing (SF) Tenant Shop Shop Vacating Vacating 80,132 166,539 108,519 Spaces Defaulting Tenant Defaults Early 3.5% of Early 6.9% 4.6% Defaults Less Continue &% Than Defaulting
Slide 22: Office/Mixed-Use properties
Office/Mixed-Use 1.4 24% -Property Avenel Washington 601 Saul 55,000 million Pennsylvania Centers of Business property square operating square Square, feet operating Park, Ave., feet Properties income of Alexandria, Gaithersburg, (commercial) downsizing Washington income decreased VAtenants DC MD 10
Slide 23: Washington Square, Alexandria, Virginia
Washington Saul CentersSquare, Square Old Town Alexandria, Virginia Tenants downsizing their spaces upon lease renewal gave back 55,000 square feet of vacant space at Washington Square in Alexandria, Virginia. As of March 2011, Washington Square was 74% leased, but new leases signed during 2011 have
Slide 24: Funds From Operations and dividends
Funds 5-yr FFO 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 $2.03 1.44 $2.12 1.53 $2.40 1.88 $2.68 1.77 $2.75 1.68 $2.57 1.60 $2.42 $2.10 1.56 $2.20 Current Saul avg. Centers Dividends From dividend FFOOperations perofshare $.36/share (FFO) growth&equates prior Dividends toto2008 an annual = 4.
Slide 25: Conservative dividend payout ratio
Dividend IQ 2011 2010 2009 2008 2007 2006 62% 71% 68% 70% 64% 65% Conservative Saul ‘12 Centers as aFFO Payout % ofpayout FFO ratio: 71% of 2011 FFO was paid out in dividends. 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
Slide 26: Debt summary - 2011
Debt 2011 -$125 $101 Saul Acquisition Clarendon Centers Summary Maturities New million, Loans construction Center Loans 15-year - 2011 Mortgage - 3term, shopping loan 25-year centers amortization, 4.48% 5.31% rate In light of the favorable long-term interest rate environment over the past year and t
Slide 27: Debt summary - 2012
Debt -2012 Saul White $63Centers Seven $73 Proceeds $10.5 Summary Maturities New million million, million Oak Corners Loans repaid Mortgage outstanding, 15-year new -Mortgage 2012 allproceeds, debt term, secured due 25-year 15-year 10/2012, byamortization, the term, 10/20 7 shopping 25-year secured
Slide 28: Mortgage debt maturities
Mortgage May Weighted Year 2027 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 $42 $135 $20 $67 $9 $37 $11 $61 $62 $28 $15 $13 $70 $0 $50 $100 $150 Millions (Excludes Saul Centers 1, Debt 2012 average Debt scheduled Matures Maturities maturity amortization) of mortga
Slide 29: Debt summary - May 1, 2012
Debt -May Saul Average 98%Centers Interest $150 Over1, Summary fixed $30 million 2012 coverage mortgage million rate, credit nonrecourse = indebt line, 2.6 cash times interest none balances debt drawn rate is 6.0% 98% of our debt is now fixed rate, non-recourse property debt. The weighted average in
Slide 30: Capital structure highlights
Capital 3/31/2012 Common Preferred IQ 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 $822 $190 $1,060 $2,082 $352 $424 $500 $1,000 $1,500 $2,000 Millions Debt Year Saul ‘12 Centers EndStructure Equity closingHighlights price = $40.57/sh As of March 31, 2012, we had a total combined debt and
Slide 31: Total shareholder return
(assumes Total $100 $150 $200 $250 $300 $350 Dec Apr NAREIT Russell S Saul & 2012 P 2001 2003 2005 2007 2009 2011 2002 2004 2006 2008 2010 Centers’ Centers Shareholder Return 500 2000 Equity reinvestment $100 compounded Return Invested of dividends) compounded annual return: 10 year = 10.3% At the e
Slide 32: Closing remarks and questions
NYSE Annual Westview Saul Centers Symbol: Meeting Village, BofFFrederick, Shareholders S 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 to endure the challenges of the current
Slide 33: Forward-looking statements
Forward-looking This Although forward-looking -financings Saul continuing risks suchpresentation Centers other of financing, that generally related we on our planned risks risks believe acceptable togrowth incident our statements Statements as contains related and such described tenants’ substantial