Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (2010)
31 slides from Saul Centers's shareholder meeting presentation, 2010
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders We have prepared a brief slide show to present highlights of 2009 including sucessful activity in the debt markets, our core operating performance, financial results and recent development activities.
Slide 2: Debt Maturities Entering 2009
Debt Maturities Entering 2009 = No mortgage debt maturing in 2009 or 2010 ® Loans maturing in December 201 | — $78 million balance outstanding — 8.1% interest rate — Secured by 6 shopping centers Sai tCOniars Liquidity and debt maturities are two critical metrics in times of uncertain credit. We sta
Slide 3: Debt Transactions - 2009
Debt Transactions - 2009 3 new non-recourse loans totalling $118 million Each loan generated net cash proceeds, $35 million in total One of the six properties remains unencumbered by debt = Shopping center generating over $1.8 million in NOI All 15-year terms, 25-year amortization, 7.5% rate Carl Co
Slide 4: Mortgage Debt Maturities
Mortgage Debt Maturities December. 31, 2009 Weighted average matunty of mortgage debt is 8.7 years Year Debt Matures Salil Ceners The $96 million maturity in October 2012 is now the next one we face. This represents a very manageable level of debt on the 9 properties securing this 15 year, amortizin
Slide 5: Debt Summary
Debt Summary March 31, 2010 90% fixed rate, nonrecourse debt Weighted average mortgage maturity = 8.7 years Average mortgage debt interest rate is 6.7% Interest coverage = 3.3 times $150 million credit line, none drawn Over $10 million in cash balances Salil Cantels 90% of our debt is fixed rate and
Slide 6: Capital Structure Highlights
Capital Structure Highlights Common Equity ® Preferred Equity ™ Debt At March 31, 2010, we had a total combined debt and equity capitalization of approximately $1.8 billion, compared to $1.4 billion 5 years ago, and 15% down from our high levels of approximately $1.9 billion from two years ago. Tota
Slide 7: Overall Portfolio Leasing Percentage
Overall Portfolio Leasing Percentage (Excluding properties under development) 92.8% 92.7% | | 2s 3 e J 9g 5.5% 95.4% 95.3% 5.5) 94.1% 94 3% 93.6% 93.3% 0) 0% | P i * ” & & we & re) 2 eo Ro wa ft ot a f & > % g is » 3 5 a ~ & 3 3 5 % ¢ 5 3 < £ 5 = 5 6 The financial crisis which has engulfed our count
Slide 8: Retail Leasing Summary
Retail Leasing Summary {Excluding properties under development) ° & = £ i) 5 ae 3 § e & $ 4 a a Gant COnters With the decline in overall consumer spending, retailers continue to struggle with declining sales and limited access to capital. Declining retail sales lead to lower rental rates. We expect
Slide 9: Retail Same Property NOI Growth
Retail Same Property NOI Growth na Rs) 2 2 Salil CEnters Over the five years from 2003 to 2008, we achieved average annual retail net operating income growth of 2.9% on a same property basis. Retail same property growth averaged 2.5% during the 1st three quarters of 2008. Since the 2008 4th quarter,
Slide 10: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends FFO results for the past 6 years are highlighted here. Over this period, absolute FFO has grown by a compounded average of 3.6% annually. Compounded annual growth per share was 1.8%, from $2.20 per share in 2004 to $2.40 in 2009, much lower than our 5-year ave
Slide 11: Dividend as a % of FFO
Dividend as a % of FFO Low FFO payout ratio 64% of 2009 FFO was paid out in dividends Salil Centers 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 of setting the common stoc
Slide 12: Geographic Mix & Property Type
Geographic Mix & Property Type Our geographic focus continues to be in the metropolitan Washington DC market. Over 82% of our 2009 property operating income was generated in the metropolitan Washington, DC/Baltimore area. This focus is our strength in this period of economic crisis. When nationwide
Slide 13: Office Properties
Office Properties = |.2 million square feet = 3 mid-rise properties produce 74% of office operating income = Operating income grew by over 3% in 2009 = Only 65,900 square feet of space expires in 2010 Salil Conters Our office space totals over 1.2 million square feet. Approximately 74% of the office
Slide 14: Avenel Business Park, Gaithersburg, Maryland
4 ewe Avene Business Park, Gaithersburg, Marylond Sai! COmntGrs Weakness continues in our 1-story office flex properties, the largest being the 391,000 square foot Avenel Business Park, located in the | - 270 corridor in Gaithersburg, Maryland. The park, at 84.1% leased, is currently at its historic
Slide 15: Shopping Centers
Shopping Centers (2009) 47 retail properties generate 7796 of property operating income Prop t Prof F t 31 centers are grocery anchored & produce 84% of retail operating income Tenants reported sales averaging $325 per square foot Grocers reported sales averaging $450 per square foot Sant Comers Dur
Slide 16: The long-term success of our core portfolio hinges largely on prime infill locations
The long-term success of our core portfolio hinges largely on prime infill locations. Saul Centers' demographics are well above the national averages. Saul Centers' properties 3-mile trade areas have average household incomes of $99,700, compared to the national average of $71,400. Our 3 and 5 mile
Slide 17: Core Shopping Centers
Core Shopping Centers (2009) 180 retail leases signed 74% renewal rate compared to 70% previous 3 years Over | ,000,000 square feet leased Lease volume increased to 689,000 square feet signed 3Q/4Q vs 376,000 square feet signed 1Q/2Q salt Canlers While anchor tenants provide the traffic to the cente
Slide 18: Top 10 retail tenants
Top [0 retail tenants Major Retail Tenants Pie yiecaeilyia0° of 2009 Revenue 2009 Revenue Saul COnlers A diverse retail tenant base minimizes exposure to any one tenant's credit. Of 2009 rental revenue, only Giant Food, at 4.4%, Safeway at 3.2% and Chevy Chase Bank at 2.3% accounted for more than 2%
Slide 19: Retail Lease Expirations
Over 50 % of base rents in place to Retail Lease Expirations 2014 & beyond Square Feet ( Base Rent $ Base Rent % 381,000 5.3% $ 5,631,000 867,000 12.0% 2,745,000 800,000 | % 13,965,000 625,000 8.7% 10,936,000 3,964,000 54.9% 53,306,000 6,637,000 $ 96,533,000 cant COnlGrs Retail lease expirations for
Slide 20: Seven Corners
SYMS CLOTHING 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 late 2008, we signed a lease with Syms clothing store, replacing a dark 50,000 square foot anchor space. Syms opened in June
Slide 21: White Oak
Be ancy cas | TON ys ise White Oak is a 354,000 square foot community shopping center located in Silver Spring, Maryland anchored by a Giant supermarket, and a Sears. During 2009, we successfully re-tenanted an expiring Rite Aid and adjacent former Blockbuster store, by signing a 13,000 square foot
Slide 22: Southdale
Southdale is a 484,000 square foot community shopping center located in Glen Burnie, Maryland, south of Baltimore. The center is anchored by Home Depot, Marshall's, Value City Furniture, and a Fresh World grocery store. Circuit City vacated their 37,000 square foot store in mid-March 2009 due to the
Slide 23: Ashburn Village
Ashburn Village is a 222,000 square foot, Giant anchored shopping center, located off Route 7 in Loudoun County, Virginia. We developed the initial phase of Ashburn Village in 1994, our first entry into Loudoun County. While one of the dominant centers in Loudoun County, small shop retailers have st
Slide 24: Seabreeze Plaza
Seabreeze Plaza Sant Centers Seabreeze is a 147,000 square foot, Publix anchored neighborhood center located in Palm Harbor, Florida, just outside of Tampa. This Publix has the highest sales per square foot of any grocery store in our portfolio, with sales volume in excess of $775 per square foot. W
Slide 25: Northrock
Northrock SakbCOntars In early 2009, we completed construction of Northrock shopping center, a neighborhood center totaling approximately 103,000 square feet of leasable area. The center is in Warrenton, Virginia along heavily traveled US Route 29. In June, 2009, Harris Teeter opened a 52,700 square
Slide 26: Westview Village
We also just completed construction of Westview Village on MD Route 85 in Frederick, Maryland. 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. The 101,000 square foot center is 30% leased, with a
Slide 27: Clarendon Center luxury apartments
Clarendon Center 244 luxury apartments $2,000 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 Saul Canters Our Clarendon Center development will be comprised of a residential tower with 244 luxur
Slide 28: Clarendon Center
a Ts gle ndon ( Center ane Do re, Here is a recent construction photo of the development. Construction has topped out on the South block and interior work is proceeding. The development is on schedule, with construction to be completed by the end of 2010. A total of 14,000 square feet of the 42,000
Slide 29: Clarendon Center
Clarendon Center The North block will contain ground floor retail under 5 stories of office space. Several office leases are under negotiation, but there are no signed leases yet to report. A total of $130 million of the estimated $195 million of total project cost has been incurred to date. 29
Slide 30: Total Shareholder Return
Total Shareholder Return {assumes reinvestment of dividends) Saul Canters During the past twelve months, we have rebounded from a tough total return decline during 2008 and through the 1st quarter of 2009. Our 10-year compounded total return now averages more than 16% per year and our 5-year total r
Slide 31: Saul Centers
Sati. Centers NYSE Symbol: BFS Anntialleetinpiot Siareno) ders Panera 840s PAR?Y ony * BONNIE AN). Salil Centers We remain committed to, and confident in, the long-term performance of our core retail and office properties. We feel we are prepared to endure the potential for continued economic stress