Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (2023)
30 slides from Saul Centers's shareholder meeting presentation, 2023
Slide 1: Annual Meeting of Shareholders
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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 (“FFO”) 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 b
Slide 4: Portfolio Composition
Portfolio Composition (measured by Property Operating Income) During 2022, nearly 75% of property operating income was generated by shopping centers. 10.4% 2022 15.1% Shopping Centers – 74.5% 74.5% Office – 15.1% Shopping Centers Apartments – 10.4% Office Apartments 2012 Shopping Centers – 75.8% Off
Slide 5: Portfolio Growth (2004 - 2022)
Portfolio Growth (2004 - 2022) $200 $200 $180 $180 Property Operating Income (in millions) $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 2022 Growth Since Inception in 1994: Oper
Slide 6: Mixed Use Development: The Waycroft
Mixed Use Development Mixed-Use Development The Waycroft 750 N. GlebeVARoad Arlington, Arlington, Virginia Delivered in 2020, Waycroft residential is now 98% leased Waycroft retail is 100% leased. Silver Diner and Salon Lofts opened in 2022 6 In 2022, Silver Diner and Salon Lofts opened at The W
Slide 7: Retail Pad Site Development
Retail Pad Site Development We currently have seven future pad sites either under lease or in negotiation Tenants at two new pad sites have opened or are scheduled to open in 2023: Shake Shack at Kentlands Square Wendy’s at Beacon Center 7 From time to time, we add free-standing pad site buildin
Slide 8: Deferral Repayments
Deferral Repayments $8.0M of $8.4M (96%) collected based on payments due as of December 31, 2022 4% Uncollected 96% Collected 8 During 2020 and 2021, we worked with our tenants to ensure their continued operations during the global COVID- 19 pandemic, including entering into rent deferral agreements
Slide 9: Core Shopping Center Operations
Core Shopping Center Operations Shopping Center Property Operating Income from Centers Anchored by Grocery $120,000 $103,379 $100,000 $88,193 76% ● $80,000 82% ● $60,000 $40,000 $20,000 $0 2012 2022 Property Operating Income ($000s) Annual Presentation to Shareholders – May 13, 2022 99 Approximately
Slide 10: Shopping Center Leasing Percentage
Shopping Center Leasing Percentage (Same Property) 98% 10 yr. Avg. = 94.7% 96.0% 94.8% 95.4% 95.5% 95.2% 95.1% 94.3% 94.7% 94% 93.4% 93.1% Average Leasing Percentage 90% 86% 82% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 10 Over the past ten years, our shopping center leasing percentage has a
Slide 11: Small Shop Leasing Percentage
Small Shop Leasing Percentage (in-line spaces < 10,000 square feet) 10 yr. Avg. = 90.5% 95% 92.1% 91.1% 91.2% 91.0% 91.2% 89.7% 90.4% 90.2% 88.9% 89.6% 90% Year-End Small Shop Leasing Percentage 85% 80% 75% 70% 65% 60% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 11 As of December 31, 2022, our
Slide 12: Shopping Center Tenant Renewal Percentage
Shopping Center Tenant Renewal Percentage (Same Property) 10 yr. Avg. = 77.2% 85% 82.2% 80.5% 79.0% 78.0% 78.0% 76.0% 76.0% 75.0% 75% 74.0% Average Renewal Percentage 73.0% 65% 55% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 12 A significant contributor to property operating income growth is t
Slide 13: Property Operating Income Growth
Property Operating Income Growth (Shopping Center Same Property) 7.0% 10 yr. Avg. = 1.7% 5.7% 5.4% 5.0% 3.6% 3.0% 3.0% 2.1% 1.6% 0.9% 1.0% 0.4% -1.0% -1.1% -3.0% -5.0% -5.0% -7.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 13 Our shopping center same property operating income has averaged ann
Slide 14: Shopping Center Lease Expirations
Shopping Center Lease Expirations Lease Expirations of Shopping Center Properties $24,000 $23,393 $22,059 Annual Minimum Rent (in thousands) $18,341 $18,000 $16,689 $16,030 $12,000 $10,388 $10,043 $9,332 $5,931 $6,000 $4,132 $2,718 $0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Thereafter 14 T
Slide 15: Significant Tenant Concentration
Significant Tenant Concentration Percentage of Percentage of Tenant Name # of Locations Portfolio SF Portfolio Revenue Giant Food 11 6.7% 5.1% Capital One 14 0.6% 2.0% CVS 10 1.3% 1.9% America’s Health Insurance Plans 1 0.6% 1.6% Safeway 6 3.0% 1.5% Home Depot 2 3.1% 1.4% Publix Super Markets 6 3.1%
Slide 16: Office Portfolio
Office Portfolio 601 Pennsylvania Avenue, Washington, DC 16 Workforce trends, urbanization, and the aftermath of the COVID-19 pandemic are reshaping tenant preferences, changing the way people work, live, play and shop. Annual Presentation to Shareholders – May 12, 2023 16
Slide 17: Office Leasing Percentage
Office Leasing Percentage (Same Property) 98% 10 yr. Avg. = 89.2% 94.5% 93.6% 94% 90.5% 90.8% 91.6% 91.1% 90% 88.4% 86.5% 86% Average Leasing Percentage 82.3% 82.5% 82% 78% 74% 70% 66% 62% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 17 Over the past ten years, our office leasing percentage has
Slide 18: 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 18 Our recent and future develop
Slide 19: Apartment Leasing Percentage
Apartment Leasing Percentage 100% 98.9% (Includes Stabilized Properties Only) 9 yr. Avg. = 97.1% 97.8% 98.2% 96.7% 96.7% 97.1% 97.2% 96.3% 96% Average Leasing Percentage 94.8% 92% 88% 84% 80% 2014 2015 2016 2017 2018 2019 2020 2021 2022 19 In 2022, our apartment leasing percentage was 97.2%, approxi
Slide 20: Apartment Property Operating Income
Apartment Property Operating Income 11.0% Apartment Property Operating Income 10.4% (as % of Total Property Operating Income) 10.0% 9.3% 9.0% 8.0% 7.0% 6.3% 6.4% 6.1% 6.0% 5.6% 5.0% 4.0% 3.4% 3.2% 3.0% 3.1% 3.0% 2.0% 1.0% 0.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cumulative Total Portfo
Slide 21: 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 North Bethesda (White Flint) development Green arrows i
Slide 22: Twinbrook Quarter
Twinbrook Quarter Rockville, Maryland 22 During the past year, we continued 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 Twinbrook Station on Metro’s Red Line. Phase I will
Slide 23: Twinbrook Quarter
Twinbrook Quarter Rockville, Maryland 23 Concrete work is substantially complete and pre-cast façade panels, masonry and windows are being installed. Initial delivery of Phase I is anticipated in late 2024. Annual Presentation to Shareholders – May 12, 2023 23
Slide 24: Hampden House
Hampden Mixed-Use House Development Bethesda, Maryland 750 N. Glebe Road Arlington, Virginia Rendering of proposed Glebe Road development 24 Our Hampden House development is located adjacent to both the forthcoming Purple Line light rail and the Metro’s Red Line in downtown Bethesda, Maryland. It wi
Slide 25: Hampden House
Hampden Mixed-Use House Development Bethesda, Maryland 750 N. Glebe Road Arlington, Virginia Rendering of proposed Glebe Road development 25 Excavation is complete at the Hampden House site and below grade construction of the parking garage is in progress. Construction is expected to be completed du
Slide 26: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends $3.50 FFO per share Dividend per share $3.18 $3.14 $3.11 $3.08 $3.10 $3.03 $2.95 $3.00 $2.88 $2.80 $2.50 $2.37 $2.34 $2.20 $2.09 $2.12 $2.12 $2.05 $2.00 $1.92 $1.72 $1.60 $1.50 $1.44 $1.00 $0.50 $0.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 26 FFO wa
Slide 27: Debt Structure
Debt Structure (as of March 31, 2023) • $525 million unsecured credit facility ($100 million term loan and $425 million line of credit) • As of March 31, 2023, $294 million was outstanding under the credit facility • 84.7% of total debt is fixed-rate, with an average interest rate of 4.77% • Weighte
Slide 28: Capital Summary
Capital Summary • $185 million perpetual preferred stock carries a 6.05% weighted average dividend rate • As of March 31, 2023, our cash balance was approximately $11.8 million and our borrowing capacity under our credit facility was approximately $189 million Debt Preferred Equity Common Equity $3,
Slide 29: First Quarter 2023 Results
First Quarter 2023 Results 29 Annual Presentation to Shareholders – May 12, 2023 29
Slide 30: Thank You
Thank You 30 Annual Presentation to Shareholders – May 12, 2023 30