Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (May 2014)
30 slides from Saul Centers's shareholder meeting presentation, May 2014
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders We have prepared a brief slide show to present balance sheet and operating performance highlights of 2013 and recent first quarter 2014 activity, and our current and future development plans. 1
Slide 2: 20 Years a Public REIT
20 Years a Public REIT Properties - 29 to 56 operating properties Leasable area - 5.3 to 9.3 million square feet Total capitalization - $500 million to $2.3 billion Compounded annual return - 11.5% August 2013 marked our 20th anniversary as a public REIT. Through expansion and redevelopment of our c
Slide 3: 20 Years a Public REIT
20 Years a Public REIT 1994 Washington DC / Baltimore Other Shopping Center Mixed / Use 1994 27.0% 20.6% 73.0% 79.4% 1994 2013 14.7% 24.4% 75.6% 85.3% Our geographic focus continues to be in the metropolitan Washington, DC market. Over 85% of our 2013 property operating income was generated in this
Slide 4: Average Leasing Percentage
Overall Portfolio Leasing Percentage (Excluding properties under development) 10-year average = 93.6% 96.8% 95.8% 94.9% Average Leasing Percentage 94.7% 94.0% 93.6% 93.9% 91.9% 91.9% 92.1% 89.9% 11 07 13 05 08 12 14 04 09 06 10 20 20 20 20 20 20 20 20 20 20 20 tQ 1s Overall leasing percentages impro
Slide 5: 2013 Balance Sheet Highlights
2013 Balance Sheet Highlights $140 million Preferred Stock Issue $71 million New Permanent Financings $72 million Construction-to-Permanent Loan During 2013, we completed several equity and debt transactions which have improved our balance sheet and reduced our overall cost of capital. We issued $14
Slide 6: Preferred Stock
Preferred Stock Issued $140 million 6 7/8% Perpetual Series C Redeemed $140 million higher coupon preferred All $80 million of 9% Series B $60 million of 8% Series A Reduced preferred stock dividends Weighted avg. rate reduced 1.3% from 8.4% to 7.1% Annual dividends reduced $2.3 million In February
Slide 7: 2013 Permanent Financings
2013 Permanent Financings 15-Year Financings Beacon Center $35 million @ 3.51% Hampshire Langley 18 million @ 4.04% Seabreeze Plaza 18 million @ 3.99% Total $71 million @ 3.76% In 2013, we completed 3 shopping center financings totaling $71 million. The weighted average 15-year rate on these loans w
Slide 8: Mortgage Debt Maturities
Mortgage Debt Maturities May 1, 2014 $150 Weighted average maturity of $135 mortgage debt 10.0 years $100 Millions $67 $62 $61 $50 $42 $37 $29 $28 $30 $20 $15 $11 $9 $0 21 7 7 15 18 22 23 25 28 14 16 19 24 26 20 1 2 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Year Debt Matures (Excludes scheduled a
Slide 9: Balance Sheet Strength
Balance Sheet Strength 96% fixed rate, nonrecourse debt Average mortgage interest rate is 5.53% $175 million credit line - $172 million available 601 Pennsylvania Ave., free & clear of debt 96% of our total debt is fixed rate, nonrecourse debt. The favorable interest rate environment in 2013 allowed
Slide 10: Market Capitalization Highlights
Market Capitalization Highlights 3/31/2014 closing price = $47.36/sh $2.3 B Common Equity Preferred Equity Debt $2,000 $1,500 $1,303 59.4% Millions $1.1 B $1,000 $180 8.0% $603 $500 $100 $814 37.1% $357 2011 2007 2003 2013 2005 2008 2012 2004 2009 1Q 2014 2006 2010 Year End As of March 31, 2014, our
Slide 11: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends $2.75 $2.57 $2.68 Current dividend of $2.42 $2.40 $2.26 $2.37 $.40/share $2.20 $2.12 $2.03 equates to an 1.88 1.77 1.60 1.68 annual dividend of 1.56 1.53 1.44 1.44 1.44 1.44 $1.60/share. $0.71 0.40 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q 2014 FFO/
Slide 12: Dividend Payout
Dividend as a % of FFO Conservative FFO payout ratio: 61% of 71% 2013 FFO Dividend Payout 70% 68% 64% 64% 64% 61% 56% was paid out in dividends. 2007 2008 2009 2010 2011 2012 2013 1Q 2014 Over the past 5 years, we paid out an average of 66% of FFO as dividends. While the dividend payout increased fr
Slide 13: Shopping Centers
Shopping Centers (2013) Cranberry Square, Westminster, Maryland 50 retail properties generated 75% of property operating income 32 centers were grocery anchored & produced 77% of retail property operating income Grocers reported sales averaging $491 per square foot, but 10 stores reported sales in e
Slide 14: Favorable Demographics
Favorable Demographics Average household income within three mile radius of $120,000 Saul Centers' retail properties exceeds the $100,000 national average $80,000 Saul Centers Avg.... $104,000 National Avg........... $71,800 $60,000 Source: U.S. Census Bureau, Census 2010 ESRI forecasts for 2013. $4
Slide 15: Retail Operating Highlights
Retail Operating Highlights Leasing percentage trending upward Small shop space leased improved from 86.9% to 90.4% Retail rental rates increasing Retail same center property operating income averaging 3.6% last 8 quarters Slowly improving economic conditions have had a positive impact on our operat
Slide 16: Average Leasing Percentage
Retail Leasing Percentage 95.8% 94.8% 94.8% Average Leasing Percentage 94.3% 93.4% 92.7% 92.2% 91.0% 2007 2008 2009 2010 2011 2012 2013 1Q '14 Our retail leasing percentage averaged 94.8% in the most recent quarter, up from a low of 91.0% in 2011. 16
Slide 17: Retail Rental Rates
Retail Rental Rates 10.1% 5-yr avg. prior to 2008 = 8.7% Same Space Rental Rate Change 3.5% 1.6% 0.1% -1.2% -6.3% -6.8% 2008 2009 2010 2011 2012 2013 1Q '14 On a same space basis, retail rental rate increases over expiring rents averaged 8.7% for the 5 year period prior to 2008. In 2008, rental rate
Slide 18: Retail Same Property NOI Growth
Retail Same Property NOI Growth 6.7% 3.6% Percentage Change 5-yr avg.. prior to 2008 = 2.8% 2.0% 1.2% -0.7% -2.2% -3.5% 11 13 08 12 09 4 10 '1 20 20 20 20 20 20 1Q During the 5-years prior to 2008, on a same property basis, we achieved average annual retail property operating income growth of 2.8%.
Slide 19: Major Retail Tenants
Top 10 retail tenants provided only 18% Major Retail Tenants of the Company's 2013 Total Revenue Tenant Name Locations Retail SF % 2013 Total Revenue Giant Food 10 7.5% 4.8% Safeway 8 5.0% 2.6% Capital One Bank 19 0.8% 2.2% CVS 7 1.6% 1.7% Publix 5 3.1% 1.4% Lowe's Home Center 2 3.3% 1.4% Harris Tee
Slide 20: Beacon Center
Beacon Center Beacon Center, Alexandria, Virginia These next few slides will provide an overview of some recent activities at several of our shopping centers. Beacon Center is a 358,000 square foot community shopping center in Alexandria, Virginia, anchored by Giant Food, Lowe's Home Improvement Cen
Slide 21: Countryside
Countryside Countryside MarketPlace, Sterling, Virginia Countryside MarketPlace is one of the oldest and best located shopping centers along Route 7 in Loudoun County, Virginia. This 138,000 square foot shopping center is anchored by Safeway and CVS Pharmacy and has a McDonalds and Starbucks. 28,000
Slide 22: Kentlands Square
Kentlands Square Kentlands Square, Gaithersburg, Maryland We own a total of 403,000 square feet of community shopping center space in the Kentlands area of Gaithersburg, Maryland, in Montgomery County. More than 38,000 households, with annual household incomes averaging over $117,000, are located wi
Slide 23: Office/Mixed-Use Properties
Office/Mixed-Use Properties 1.5 million square feet Avenel Business Park, Gaithersburg, MD 25% of property operating income 601 Pennsylvania Ave.., Washington DC Clarendon Center, Arlington, VA Our office/mixed-use space totals over 1.5 million square feet, representing 25% of our total property ope
Slide 24: Major Office Tenants
Top 10 office tenants provided Major Office Tenants only 10% of the Company's 2013 Total Revenue Tenant Name Locations Rentable 2013 Total Year SF % Revenue Expiring American Health Ins. Plans 1 3.8% 1.8% 2026 Airline Reporting Corp. 1 4.7% 1.7% 2023 National Gallery of Art 1 2.4% 1.4% 2019 Credit U
Slide 25: Clarendon Center
Clarendon Center North Block Office Building Lyon Place Apartments Our most significant mixed-use property is Clarendon Center, located on two blocks adjacent to the Clarendon Metro station in Arlington County, Virginia. The property includes Lyon Place, a residential tower with 244 luxury apartment
Slide 26: 601 Pennsylvania Ave.
601 Pennsylvania Ave. 601 Pennsylvania Ave. NW, Washington DC We have just commenced a significant lobby, elevator and building common area upgrade at 601 Pennsylvania Avenue which will modernize the finishes of this premier office building. We successfully renewed leases that were due to expire in
Slide 27: Development
Development Park Van Ness 4455 Connecticut Ave. NW, Washington DC Street View to Rock Creek Park Construction Progress Photo, May 8, 2014 By the end of April 2013, we negotiated and terminated the last of the tenants in Van Ness Square. We completed demolition of the old office building in March 201
Slide 28: Future Development Pipeline
Future Development Pipeline Development sites M acquired in 2010-2014 with mixed-use potential of over 2.5 million SF Twinbrook holdings 9.2 acres White Flint holdings 7.6 acres M Rockville Pike, Montgomery County, MD Looking beyond our development of Park Van Ness, we are currently focusing our fut
Slide 29: We remain committed to, and confident in, the long-term performance
NYSE Symbol: B F S Annual Meeting of Stockholders Hunt Club Corners, Apopka, Florida 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 for new opportunities during this period of economic
Slide 30: 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-looking