Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (May 2022)
31 slides from Saul Centers's shareholder meeting presentation, May 13, 2022
Slide 1: Annual Presentation to Shareholders – May 13, 2022
Annual Presentation to Shareholders – May 13, 2022
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 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 basis det
Slide 4: Competitors’ FFO per Share
Competitors’ FFO per Share Basic FFO per Share $3.50 $3.14 $3.07 $2.88 $3.00 $2.50 $2.03 $2.00 $1.81 $1.62 $1.50 $1.00 $0.50 $0.00 2015-2019 5 Yr. Avg. 2020 Actual 2021 Actual Competitors' Average Saul Centers, Inc. Ticker REIT 2015-2019 2020 2021 5 Yr. Avg. Actual Actual AKR Acadia Realty Trust $ 1
Slide 5: Competitors’ Dividends per Share
Competitors’ Dividends per Share Dividends per Share $2.50 $2.12 $2.16 $1.98 $2.00 $1.42 $1.50 $0.99 $1.03 $1.00 $0.50 $0.00 2015-2019 5 Yr. Avg. 2020 Actual 2021 Actual Competitors' Average Saul Centers, Inc. Ticker REIT 2015-2019 2020 2021 5 Yr. Avg. Actual Actual AKR Acadia Realty Trust $ 1.18 $
Slide 6: Portfolio Composition
Portfolio Composition (measured by Property Operating Income) During 2021, over 75% of property operating income was generated by shopping centers. 9.3% 2021 15.3% Shopping Centers – 75.4% Office – 15.3% Shopping Centers Apartments – 9.3% 75.4% Office Apartments 2011 Shopping Centers – 75.3% Office
Slide 7: Portfolio Growth (2004 - 2021)
Portfolio Growth (2004 - 2021) $200 $200 Property Operating Income (in millions) $180 $180 $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 Growth Since Inception: Operating propert
Slide 8: Mixed Use Development: The Waycroft
Mixed Use Development Mixed-Use Development The Waycroft 750 N. GlebeVARoad Arlington, Arlington, Virginia Annual Presentation to Shareholders – May 13, 2022 5 Early in 2021, we successfully completed the residential lease-up of the 491-unit apartment house at The Waycroft in Arlington, Virginia. As
Slide 9: Retail Development: Ashbrook Marketplace
Retail Development Ashbrook Marketplace Ashburn, VA Annual Presentation to Shareholders – May 13, 2022 6 Ashbrook Marketplace is centrally located in the heart of Loudoun County, Virginia. The shopping center is anchored by LIDL, one of the largest grocers in the world, known for its value-priced st
Slide 10: Retail Pad Site Development
Retail Pad Site Development We signed leases for two new pad sites in 2021, including: • Shake Shack at Kentlands Square • Wendy’s at Beacon Center Westview Village Tenants at three new pad sites opened in 2021, including: • National Tire and Battery at Shops at Monocacy • Mezeh Grill at The Gle
Slide 11: Status of Deferral Repayments
Deferral Repayments (as of March 31, 2022) Status of Deferral Repayments Amount Repaid Cumulative Collection Pct 100.0% $1,600 90.0% $1,391 $1,397 $1,413 $1,400 $1,348 80.0% $1,200 70.0% Repayments ($000s) $1,000 60.0% 50.0% $800 $609 40.0% $600 30.0% $400 $270 20.0% $200 10.0% $60 $1 $0 0.0% Q2 202
Slide 12: Core Shopping Center Operations
Core Shopping Center Operations Property Operating Income from Grocery-Anchored Shopping Centers $120,000 $105,135 $100,000 79% $80,000 $69,866 82% $60,000 $40,000 $20,000 $0 2011 2021 Property Operating Income ($000s) Annual Presentation to Shareholders – May 13, 2022 9 Approximately 79% of our sho
Slide 13: Shopping Center Leasing Percentage
Shopping Center Leasing Percentage (Same Property) 98% 96.0% 95.4% 95.2% 95.5% 94.8% 95.1% 10 yr. Avg. = 94.6% 94.3% 94% 93.9% 93.2% 93.1% 93.4% Average Leasing Percentage 90% 86% 82% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Q1 2022 numbers reflect results through March 31, 2022 Ann
Slide 14: Small Shop Leasing Percentage
Small Shop Leasing Percentage (in-line spaces < 10,000 square feet) 95% 10 yr. Avg. = 90.1% 92.1% 91.1% 91.2% 91.0% 90.4% 90.2% 89.6% 89.6% 89.7% 90% 88.9% 86.9% Year-End Small Shop Leasing Percentage 85% 80% 75% 70% 65% 60% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Q1 2022 numbers r
Slide 15: Shopping Center Tenant Renewal Percentage
Shopping Center Tenant Renewal Percentage (Same Property) 85% 82.4% 10 yr. Avg. = 75.9% 80.5% 79.0% 78.0% 78.0% 76.0% 76.0% 75.0% 75% Average Renewal Percentage 74.0% 73.0% 70.0% 65% 55% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Q1 2022 numbers reflect results through March 31, 2022
Slide 16: Property Operating Income Growth
Property Operating Income Growth (Shopping Center Same Property) 6.0% 5.7% 5.4% 5.1% 3.6% 3.0% 10 yr. Avg. = 1.8% 3.0% 2.0% 2.1% 1.6% 0.4% 0.0% -1.1% -3.0% -5.0% -6.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Q1 2022 numbers reflect results through March 31, 2022 Annual Presentation
Slide 17: Shopping Center Lease Expirations
Shopping Center Lease Expirations Lease Expirations of Shopping Center Properties $24,000 $21,485 $20,859 $20,178 Property Operating Income (in millions) $18,000 $16,196 $15,856 $12,000 $10,946 $9,426 $9,101 $6,000 $5,223 $4,371 $2,488 $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Thereafter
Slide 18: Significant Tenant Concentration
Significant Tenant Concentration Percentage of Percentage of Tenant Name # of Locations Portfolio SF Portfolio Revenue Giant Food 12 7.3% 5.3% Capital One 15 0.7% 2.2% CVS 10 1.2% 1.9% Safeway 7 3.2% 1.8% America's Health Insurance Plans 1 0.6% 1.7% Home Depot 3 3.4% 1.5% Lowe's Home Center 2 2.9% 1
Slide 19: Office Portfolio
Office Portfolio 601 Pennsylvania Avenue, Washington, DC Annual Presentation to Shareholders – May 13, 2022 16 Workforce trends, urbanization, and the continued effects of the COVID- 19 pandemic are reshaping tenant preferences, changing the way people work, live, play and shop. As the year progress
Slide 20: Apartment Portfolio
Apartment Portfolio Lyon Place Park Van Ness The Waycroft Arlington, VA Washington, D.C. Arlington, VA Delivered: 2010 Delivered: 2016 Delivered: 2020 Twinbrook Quarter Phase I Hampden House Rockville, MD Bethesda, MD Projected Delivery: 2024 Projected Delivery: 2025 Annual Presentation to Sharehold
Slide 21: Apartment Leasing Percentage
Apartment Leasing Percentage 100% (Includes Stabilized Properties Only) 98.9% 97.8% 96.7% 96.7% 95.9% 8 yr. Avg. = 96.6% 97.1% 96.8% 96% 94.8% 94.8% Average Leasing Percentage 92% 88% 84% 80% 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Q1 2022 numbers reflect results through March 31, 2022 Annua
Slide 22: Apartment Property Operating Income
Apartment Property Operating Income 10.0% Apartment Property Operating Income 9.3% 9.8% (as % of Total Property Operating Income) 9.0% 8.0% 7.0% 6.3% 6.4% 6.1% 6.0% 5.6% 5.0% 4.0% 3.3% 3.4% 3.2% 2.8% 3.0% 3.1% 3.0% 2.0% 1.0% 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Cumulat
Slide 23: 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 White Flint development Green arrows indicates current
Slide 24: Twinbrook Quarter
Twinbrook Quarter Rockville, Maryland Annual Presentation to Shareholders – May 13, 2022 21 During the past year, we started 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 Twi
Slide 25: Twinbrook Quarter
Twinbrook Quarter Rockville, Maryland Annual Presentation to Shareholders – May 13, 2022 22 Excavation of the site is now complete and below grade foundation work has begun. Initial delivery of Phase I is anticipated in 2024. Annual Presentation to Shareholders – May 13, 2022 22
Slide 26: Hampden House
Hampden Mixed-Use House Development Bethesda, Maryland 750 N. Glebe Road Arlington, Virginia Rendering of proposed Glebe Road development Annual Presentation to Shareholders – May 13, 2022 23 Our Hampden House development is located adjacent to both the proposed Purple Line light rail and the Metro’
Slide 27: Hampden House
Hampden Mixed-Use House Development Bethesda, Maryland 750 N. Glebe Road Arlington, Virginia Rendering of proposed Glebe Road development Annual Presentation to Shareholders – May 13, 2022 24 Demolition of the existing structure began in the fourth quarter of 2021 to prepare the site for development
Slide 28: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends $3.50 FFO per share Dividend per share $3.18 $3.18 $3.14 $3.11 $3.03 $2.95 $3.00 $2.88 $2.80 $2.50 $2.37 $2.26 $2.12 $2.12 $2.16 $2.03 $2.04 $2.08 $2.00 $1.84 $1.69 $1.56 $1.50 $1.44 $1.44 $1.44 $1.00 $0.81 $0.57 $0.50 $0.00 2011 2012 2013 2014 2015 2016 2017
Slide 29: Debt Structure
Debt Structure (as of March 31, 2022) • $525 million unsecured credit facility ($100 million term loan and $425 million line of credit) • As of March 31, 2022, $238 million was outstanding under the credit facility • 79% of total debt is fixed-rate, non-recourse • Average interest rate on debt – 4.2
Slide 30: Market Capitalization
Capital Summary • $185 million perpetual preferred stock carries a 6.05% weighted average dividend rate • As of March 31, 2022, our cash balance was approximately $12.3 million and our borrowing capacity under our credit facility was approximately $233 million $3,500 Debt Preferred Equity Common Equ
Slide 31: Thank You
Thank You 28 Annual Presentation to Shareholders – May 13, 2022 28