Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (April 2009)
31 slides from Saul Centers's shareholder meeting presentation, Apr 30, 2009
Slide 1: Annual Meeting of Shareholders
Exhibit 99(a) Annual Meeting of Shareholders
Slide 2: Overall Portfolio Leased Space Percentage
Overall 96.3% 100.0% 95.7% 94.8% 95.0% Percentage Dec’06 80.0% 85.0% Leasing 90.0% Annual The Since financial reaching 95.9% 95.4% 94.7% 94.2% Average Mar’07 Portfolio 92.9% crisis 95.3% an Jun’07 ofLeasing all-time Space which 95.4% Sep’07 Leased Percentage has highengulfed Dec’07 level inMar’08 ou
Slide 3: Geographic Focus and Property Mix
Geographic Shopping Other 2008 Our Approximately Washington, The retail geographic Property Office Centers component Mix DC 18% Operating 82% focus & metropolitan DC. 23% Property ofof continues /the Baltimore our Income year-end portfolio’s Type area to be 77% unemployment 2008 inincome 82% the pro
Slide 4: Retail Leasing Highlights
Retail 300 253 274 20.0% 238 168 Signed Rate Feet Square 79 ‘08 -10.0% -5.8% 1Q With Rental The 2Q ‘08 30.0% 24.3% (Percentage) first 2.8% the Same thousands) rate 3Q Rental 150 ‘08 3decline quarters 100 4Q 250 increases ‘08 Increase Space 0.0% 1Q ‘09’08’08’08’08’09 in 13.2% 1Q 200 Leasing overall o
Slide 5: Retail Growth
Retail 5.0% 10.0% 5 1.0% 1.9% Growth ‘08 -10.0% -5.5% -5.0% 1Q We The Declines yr.2Q have ‘rate 2008 avg. 08 4.5% Percentage Same 3Q -2.6% ‘of achieved in = 08 growth 1Q increase average 2.9% Property ‘08 ‘09 0.0% was average rental slowed 4Q NOI 1.2%,rates Growth annual as with aand result quarterl
Slide 6: Funds From Operations and Dividends
Funds1.56 Dividends 7.5% 5.0% $2.10 $2.20 $2.00 1.56 1.60 1.68 1.77 1.88 2003 Operating Over After With credit this 2004 absolute per increasing FFO Dividends Fromshare period, $1.50 results Current 2005 market Operations $2.68 $2.57 the 2006 absolute over dividend conditions common $1.56/share. 200
Slide 7: Low Dividend Payout Ratio
Dividend Low 100% 90% Payout was 71% 66% 61% 64% 2004 50% Over As With you paid FFO payout of 70% 65% 60% taxable the 2005 80% may FFO past out as Dividend in 2006 ratio: aknow, dividends. income 5%years, 2007 of REITs FFO 70% projected we 2008 were are 1Qrequired to paying ‘09 decline out to pay in
Slide 8: Mortgage Debt Maturities
Mortgage December Weighted $100 Millions 2009 2018 Year (Excludes Liquidity Of Our The Maturities our $62 Debt $96 2010 2019 $548 million $62 and average Debt scheduled Matures 31, of 2011 2020 million $61 our debt 2008 Maturities of and 2012 2021 mortgage $50 maturity maturities mortgages of $96 am
Slide 9: Commercial Loan Delinquency and Price Declines
Commercial Price delinquency Source: A that Loan only recent price loans. defaults declines Deutsche report declines rate Real are ofpublished likely 35-45% increasing Estate Bank-Commercial of 35-45% toValuation (or by exceed as Deutsche more) are many 3.5% expected, expected Real loans Bank’s by E
Slide 10: Commercial Financing Example
Commercial Sample 2007 All-in Source: According with $5 Today rate Underwriting million Deutsche 5.6% toCash Real thein8.1% Deutsche flow Estate Bank-Commercial cashYr. $5 flow Financing 1MM Bank d/s may$5 coverage report, have MMReal been Cap commercial 1.0x Estate rate underwritten 1.25x 4.8% Outl
Slide 11: Total Shareholder Return
Total-22.9% (assumes $250 100 -37.5% -34.0% Dec. Saul Our Afterlong Centers’ Centers 2003 Shareholder a tough $100 -36.6% tenured reinvestment Dec. $NAREIT 23% compounded Return 2004 team Return total $150 Dec. Equity ofreturn professionals dividends) 2005 Total annual Sdecline &Dec. return: P 500 2
Slide 12: Capital Structure Highlights
Capital 3/31/2009 = $1,263 $1,500 $584 2002 At approximately Total Preferred one we Our $22.97/sh March face of capital $381 2003 debt the Millions Structure a stock, potentially 31, last is closing 2004 structure $2,000 currently 2008, REIT $1.9 shown $1,000 2005 Highlights price Common billion. we
Slide 13: Prudent Capital Structure
Prudent March No $15 93% The Ourfixed million weighted $150 fixed of31, our Capital rate million 2009 rate, debt outstanding debt average nonrecourse Structure iscredit maturing nowmaturity fixed line in currently debt rate the is 7.4 and nextyears, has all 2.5of $15 years this andmillion is the Wei
Slide 14: Preferred Stock Offerings
Preferred 2 March Perpetual Callable Our Last This issues $100 March, equity 2008 totaling atStock with million par capital we - $80 no by Offerings completed $180 preferred investor the MM provided company MM redemption an November stock additional $80 5 years offering million 2003 rights capacity
Slide 15: Shopping Centers: Grocery Anchored
Shopping Boca (2008) 45 Tenants Grocers During 30 Total Grocery 2007. retail centers of Valley retail our This 2008, reported store properties centers Centers are came sales Plaza, property sales grocery for at sales areBoca generate the are the anchored anchored averaging operating expense aportfol
Slide 16: Favorable Demographics
Favorable Average $90,000 $100,000 $110,000 Source: $70,000 National $50,000 Long-term Saul Our 3Centers’ top Centers and U.S. 20 household Avg. Demographics 5success properties mile demographics Census properties - $73,800 Saul population of Centers income Bureau, in our3-mile terms $80,000 core wi
Slide 17: Core Retail Leasing
Coreretail Leesburg (2008) 190 10.1% While During expiring 73% Currently demand. of Shopping anchor increase 2008, the leases. Pike, leases our tenants we tenants occupancy Baileys Centers insigned executed rents whose provide Crossroads, onisleases over new at the a leases 5-year 190 expired traffi
Slide 18: Top Retail Tenants
Top Major of Tenant Giant 1.2% A Only Our We diverse 2008 had 10 top Giant 1.1% Food Retail Name retail only Revenue 10retail tenants Office Food, 9one Tenants tenants 6.8% Locations tenant Circuit at Depot comprise 4.4% 4.4%, provided base SF City 4Safeway Safeway 1.1% minimizes %only store, 2008 o
Slide 19: Retail Lease Expirations
53As 2013 Year 2009 50,152,000 * Retail Approximately %of Square *& of Lease lease 350,000 April beyond base53.0% expirations Feet Expirations 1, half 2009 5.3% STotals Fof% $our for 5,408,000 Base rents 6,596,000 base theRent in balance rents place 5.7% $92.9% Base are to of2010 contracted 2009 Ren
Slide 20: Seven Corners
Seven It During Syms Theis anchored center will Corners, Corners therelocate is fourth our by isFalls alargest quarter Shoppers from 568,000 Church, nearby retail of square 2008, Food Virginia property andWarehouse we foot plans replaced as community to measured beand an open expiring a shopping Hom
Slide 21: Thruway
Thruway, Thruway During Also, This center in2008, 2008, isWinston is a 354,000 we one Hanes successfully of Salem, our Brand square top North opened five foot re-tenanted Carolina incommunity size a 20,000 and a 20,000 operating square shopping square foot income center store footand located in spac
Slide 22: Southdale
Southdale, The In Southdale the center fall of had is is Glen a2008, currently anchored 484,000 our Burnie, only we 91.1% replaced by square Circuit Maryland Home leased, foot City anDepot, expiring community store, withMarshall’s only which Giant shopping 1 small vacated grocery andshop Value cente
Slide 23: Lansdowne Town Center / Loudoun
Loudoun38,000 Completed includes Lansdowne dramatically County, in Town isdecreased 2007, our square Virginia. Center, Center fourth the retail feet center center isLeesburg, aofsales, 189,000 professional isincurrently Loudoun, and Virginia square often 96.2% office for tenant foot, a leased. space
Slide 24: Hunt Club Corners Renovation
Before Hunt We Our acquired have 5Club grocers renovation five Corners Hunt centers continue After Club is in a strong, 101,000 Florida, in renovation 2006with square and totaling Hunt an justoverall foot, over completed ClubPublix 590,000 5% Corners, sales aanchored façade square Apopka, increase r
Slide 25: Development: Northrock
Development Northrock In We Harris A total January haveTeeter ofsubstantially 62% Center, 2008, has Property ofwe leased the Warrenton, acquired center completed 52,700 isapproximately Virginia pre-leased. square construction feet and 15.4 for is scheduled Northrock acres of undeveloped to Shopping
Slide 26: Development: Westview Village
Development Westview In additional We A Leasing pad November have has activity substantially executed Village, been 15,000 2007, Property ground issquare leases Frederick, slow wecompleted leased purchased for feet totaling the of Maryland toremainder pad Mimi’s, construction 12,000 a 10.4 spacesqua
Slide 27: Office Properties
Office Washington 1.2 3 Approximately Washington, Our Over Only properties million office 90% 68,000 Properties of space portfolio square produce Square, square DC. the73% totals office feet feet is Alexandria, of 75% currently over leases the ofofthe office 1.2 office have office million 92.5% Virg
Slide 28: 601 Pennsylvania Avenue
601 Pennsylvania Our The 601’s Onlybuilding 227,000 2significant leasessquare isexpired 100% tenants Avenue, foot in leased. 2009, include 601 Washington, Pennsylvania Ittotaling isthe theNational single 26,000 DCAvenue largest Gallery square office asset of feet. Art, inbuilding, New our theportfol
Slide 29: Development: Clarendon Center
Development Projected 244 2 Desirable Our located This cityluxury Clarendon isblocks one right 405,000 “Urban apartments ofat adjacent Property the Center thepremier Village” SF Clarendon to development 42,000 - Clarendon Metro residential neighborhood Metro SF station ground will station andbecomme
Slide 30: Development: Clarendon Center Construction Update
Development Clarendon Arlington, Here We The are development is completing a recent Virginia Center, Property construction isthe on 4-level schedule, photo subsurface with of the construction development. garage structure to be completed in the nextby30the days. end of 2010.
Slide 31: NYSE Symbol: BFS
NYSE Annual White We remain areOak, Symbol: prepared Meeting committed Silver Bto ofFSpring, endure Shareholders S to, and Maryland the confident potential for in, the a prolonged long-termperiod performance of economic of ourstress. core retail and office properties.