Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (2017)
28 slides from Saul Centers's shareholder meeting presentation, 2017
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders
Slide 2: Park Van Ness
Park Van Ness Ha
Slide 3: Park Van Ness – Street-Level Retail
Park Van Ness – Street-Level Retail
Slide 4: Park Van Ness
Park Van Ness dM :
Slide 5: Asset Management - Recent Acquisitions and Dispositions
Asset Management - Recent Acquisitions and Dispositions Burtonsville Town Square, Burtonsville, MD Acquisitions Burtonsville Town Square – 121,000 SF • Anchored by Giant and CVS Dispositions Crosstown Marketplace – 197,000 SF • Industrial park in Tulsa, Oklahoma
Slide 6: Core Shopping Center Operations
Core Shopping Center Operations Severna Park Marketplace, Severna Park, MD • 70% of shopping center NOI from grocery-anchored, service oriented neighborhood centers • Overall retail leasing percentage at 96%
Slide 7: Challenges to Traditional Retail Environment
Challenges to Traditional Retail Environment • Internet retail sales putting pressure on traditional retail uses • (i.e. Electronics, clothing, books, sporting goods, bank branches) • Service uses in well located centers, while not immune, remain in demand: • Food & Drug • Restaurants • Medical • Be
Slide 8: Retailers In The News
Retailers In The News % Total # of Locations in Current Company Retailer Portfolio Revenue H.H. Gregg 0 Stores - Eastern Mountain Sports 0 Stores - The Limited 0 Stores - Abercrombie & Fitch 0 Stores - Sports Authority 0 Stores - Pier 1 Imports 1 Store 0.1% Radio Shack 4 Stores 0.2% Payless Shoes 7
Slide 9: Current Repositioning - Safeway
Current Repositioning - Safeway Briggs Chaney Marketplace, Silver Spring, Maryland (Conceptual) Broadlands Village, Ashburn, VA
Slide 10: Redevelopment and Expansion - Core Portfolio
Redevelopment and Expansion - Core Portfolio Silver Diner, Westview Village Mercy Physicians, Southdale CVS Pharmacy, Germantown
Slide 11: Retail Leasing Percentage
Retail Leasing Percentage 100.0% 97.0% 96.2% 94.3% 94.8% 95.4% 96.0% 95.9% 93.2% 93.1% 92.4% 93.2% 90.0% 80.0% 70.0% Average Leasing % 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1st Q 2017 Excludes impact of properties sold or removed from service
Slide 12: Small Shop Leasing Percentage
Small Shop Leasing Percentage 100.0% 89.7% 91.1% 91.2% 90.4% 91.5% 90.0% 86.9% 84.0% 83.7% 80.0% Average Leasing % 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 1Q 2017
Slide 13: Tenant Renewal Percentage
Tenant Renewal Percentage 100% 90% 80% 78% 76% 75% 74% 70% 70% 67% Average Leasing % 60% 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016
Slide 14: Retail Rental Rate Change
Retail Rental Rate Change 12.0% 11.1% 10.1% 9.0% 6.0% 4.5% 3.9% 3.0% 3.0% 1.6% 0.1% 0.0% -1.2% -3.0% -6.0% -6.8% -6.3% -9.0% -12.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 15: Property Operating Income
Property Operating Income (Retail same center) 6.0% 5.4% 4.9% 3.6% 3.0% 3.0% 3.0% 2.4% 2.0% 1.2% 0.0% -0.7% -3.0% -3.5% -4.2% -6.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 * Q1 2017 * Excludes impact of Staples termination fee
Slide 16: Top Tenants
Tenant Name # Locations Retail SF % 2016 Total Revenue Giant Food 9 6.7% 4.3% Safeway * 9 5.8% 2.6% Capital One Bank ** 18 0.7% 2.0% CVS 8 1.2% 1.6% Harris Teeter 4 2.5% 1.5% Lowes Home Center 2 3.3% 1.3% Publix 5 3.1% 1.3% Home Depot 2 3.8% 1.6% Trader Joe’s 3 0.5% 0.8% Petco 4 0.6% 0.5% Totals 66
Slide 17: Office/Mixed-Use Portfolio
Office/Mixed-Use Portfolio Park Van Ness, Washington, DC Clarendon Center, Arlington, Virginia
Slide 18: Office / Mixed-Use Leasing Percentage
Office / Mixed-Use Leasing Percentage (commercial space only) 100.0% 96.3% 95.8% 91.4% 91.4% 93.0% 89.2% 91.0% 91.0% 90.0% 88.1% 84.2% 84.4% 80.0% 70.0% Average Leasing % 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017 Excludes impact of properties
Slide 19: Transit-Oriented Mixed-Use Development Pipeline
Transit-Oriented Mixed-Use Development Pipeline 22 acres at three Metro sites for up to: 3,000 apartment units 175,000 SF retail 475,000 SF office Red arrow indicates current development location Yellow arrows indicate future development locations. Green arrows indicate operating property locations
Slide 20: Glebe Road Development
Glebe Road Development Rendering of proposed Glebe Road development
Slide 21: Portfolio Composition
Portfolio Composition (measured by Property Operating Income) 23% Shopping Centers 2016 – 77% / 1993 – 73% 77% Office/Mixed-Use 15% Washington DC / Baltimore 2016 – 85% / 1993 – 79% 85% Other
Slide 22: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends $3.50 $2.95 $3.03 $3.00 $2.75 $2.80 $2.68 $2.50 $2.40 $2.37 $2.26 $2.12 $2.03 $2.00 1.88 1.84 1.77 1.69 1.53 1.56 1.44 1.44 1.44 1.44 $1.50 $1.00 $0.87 0.51 $0.50 $- 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1st Q 2017 FFO / share Dividend / share
Slide 23: Dividend Payout
Dividend as a % of FFO 100.0% 90.0% 80.0% 70.1% 70.9% 67.9% 70.0% 64.4% 63.8% 63.7% 60.8% 60.7% 58.6% 60.0% 55.7% 57.0% Dividend Payout 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017
Slide 24: Mortgage Debt Maturities
Mortgage Debt Maturities (May 1, 2017) $300 Outstanding Balance at March 31, 2017 Balloon Payment due at Maturity $250 $211 $200 Weighted average rate = 5.02% $162 In Millions Weighted average maturity is 6.7 years $150 $96 $100 $70 $74 $74 $66 $50 $43 $44 $29 $13 $11 $0 $0 $0 Year Debt Matures
Slide 25: Portfolio Growth
Portfolio Growth Operating properties - 29 to 56 Leasable area - 5.3 million to 9.5 million square feet $163.3 M $160 Property operating income – 6.2% compounded annual Property Operating Income (in millions) $140 growth $120 $100 $80 $60 $40 $43.0 M $20 $- Year
Slide 26: Capital Summary
Capital Summary $3,500 Total capitalization has grown from $500 million to $2.96 billion $ 2.96 B $3,000 Leverage has decreased from 51% to 30.7% $2,500 Total return to shareholders = 11.5% compounded annually $2,000 61% $1,500 In Millions $1,000 6.% $ 0.5 B $500 49.3 % 33% 50.7 % $- Debt Preferred
Slide 27: Annual Meeting of Stockholders
Annual Meeting of Stockholders
Slide 28: 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-looki