Earnings release
Page 1
Exhibit 99.1 SAUL CENTERS, INC. 7501 Wisconsin Avenue, Suite 1500E, Bethesda, Maryland 20814-6522 (301) 986-6200 Saul Centers, Inc. Reports First Quarter 2025 Earnings May 8, 2025, Bethesda, MD. Saul Centers, Inc. (NYSE: BFS), an equity real estate investment trust (“REIT”), announced operating results for the quarter ended March 31, 2025 (“2025 Quarter”). Total revenue for the 2025 Quarter increased to $71.9 million from $66.7 million for the quarter ended March 31, 2024 (“2024 Quarter”). Net income decreased to $12.8 million for the 2025 Quarter from $18.3 million for the 2024 Quarter. During the 2025 Quarter, the Company continued to lease residential units and work on retail spaces at Twinbrook Quarter Phase I. As of May 5, 2025, 274 residential units have been leased and occupied. Concurrent with the initial delivery of Twinbrook Quarter Phase I on October 1, 2024, interest, real estate taxes, depreciation and all other costs associated with the residential and retail portions of the property began to be charged to expense, while revenue continues to grow as occupancy increases. As a result, compared to the 2024 Quarter, net income for the 2025 Quarter was adversely impacted by $6.5 million due to the initial operations of Twinbrook Quarter Phase I. Exclusive of Twinbrook Quarter Phase I, net income for the 2025 Quarter increased by $1.0 million primarily due to (a) higher commercial base rent of $2.2 million and (b) higher residential base rent of $0.4 million, partially offset by (c) lower expense recoveries, net of expenses, of $0.7 million and (d) lower other property revenue of $0.6 million. Net income available to common stockholders decreased to $7.0 million, or $0.29 per basic and diluted share, for the 2025 Quarter from $10.8 million, or $0.45 per basic and diluted share, for the 2024 Quarter. As compared to the 2024 Quarter, net income available to common stockholders for the 2025 Quarter was adversely impacted by $3.7 million, or $0.15 per basic and diluted share, due to the initial operations of Twinbrook Quarter Phase I. Same property revenue increased $1.8 million, or 2.7%, and same property net operating income decreased $0.2 million, or 0.5%, for the 2025 Quarter compared to the 2024 Quarter. Shopping Center same property net operating income for the 2025 Quarter totaled $35.3 million, a decrease of $0.5 million compared to the 2024 Quarter. Shopping Center same property net operating income decreased primarily due to (a) lower other property revenue of $0.6 million, (b) lower expense recoveries, net of expenses, of $0.4 million and (c) lower lease termination fees of $0.2 million, partially offset by (d) higher base rent of $0.8 million. Mixed-Use same property net operating income totaled $12.7 million, an increase of $0.3 million compared to the 2024 Quarter. Mixed- Use same property net operating income increased primarily due to (a) higher residential base rent of $0.5 million, partially offset by (b) lower expense recoveries, net of expenses, of $0.2 million. One property, Twinbrook Quarter Phase I, was excluded from same property results. Reconciliations of (a) total revenue to same property revenue and (b) net income to same property net operating income are attached to this press release. Same property revenue and same property operating income are non-GAAP financial measures of performance that management believes improve the comparability of reporting periods by excluding the results of properties that were not in operation for the entirety of the comparable reporting periods. We define same property revenue as total revenue less straight-line base rent and above/below market lease amortization of leases acquired in connection with purchased real estate investment properties minus the revenue of properties not in operation for the entirety of the comparable reporting periods, and we define same property net operating income as net income plus (a) interest expense, net and amortization of deferred debt costs, (b) depreciation and amortization of deferred leasing costs, (c) general and administrative expenses, (d) change in fair value of derivatives, and (e) loss on the early extinguishment of debt minus (f) gains on property dispositions, (g) straight-line base rent, (h) above/below market lease amortization of leases acquired in connection with purchased real estate investment properties and (i) the net operating income of properties that were not in operation for the entirety of the comparable periods. www.SaulCenters.com 4
Page 2
Funds from operations (“FFO”) available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) decreased to $24.6 million, or $0.71 per basic and diluted share, in the 2025 Quarter compared to $27.5 million, or $0.80 per basic and diluted share, in the 2024 Quarter. FFO is a non-GAAP supplemental earnings measure that the Company considers meaningful in measuring its operating performance. A reconciliation of net income to FFO is attached to this press release. FFO available to common stockholders and noncontrolling interests was adversely impacted by $4.4 million, or $0.13 per basic and diluted share, due to the initial operations of Twinbrook Quarter Phase I. Exclusive of Twinbrook Quarter Phase I, FFO available to common stockholders and noncontrolling interests increased by $1.5 million primarily due to (a) higher commercial base rent of $2.2 million and (b) lower interest expense, net and amortization of deferred debt costs of $0.5 million partially offset by (c) lower expense recoveries, net of expenses, of $0.7 million and (d) lower other property revenue of $0.6 million. As of March 31, 2025, 93.9% of the commercial portfolio was leased compared to 94.6% as of March 31, 2024. As of March 31, 2025, excluding The Milton at Twinbrook Quarter, the residential portfolio was 99.3% leased compared to 98.7% as of March 31, 2024. Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 62 properties, which includes (a) 50 community and neighborhood shopping centers and eight mixed-use properties with approximately 10.2 million square feet of leasable area and (b) four non-operating land and development properties. Over 85% of the Saul Centers’ property net operating income is generated by properties in the metropolitan Washington, D.C./Baltimore area. Contact: Carlos L. Heard (301) 986-7737 Safe Harbor Statement Certain matters discussed within this press release 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 contained in the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2024 and include the following: (i) the ability of our tenants to pay rent, (ii) our reliance on shopping center “anchor” tenants and other significant tenants, (iii) our substantial relationships with members of the B. F. Saul Company and certain other affiliated entities, each of which is controlled by B. Francis Saul II and his family members, (iv) risks of financing, such as increases in interest rates, restrictions imposed by our debt, our ability to meet existing financial covenants and our ability to consummate planned and additional financings on acceptable terms, (v) our development activities, (vi) our access to additional capital, (vii) our ability to successfully complete additional acquisitions, developments or redevelopments, or if they are consummated, whether such acquisitions, developments or redevelopments perform as expected, (viii) adverse trends in the retail, office and residential real estate sectors, (ix) risks relating to cybersecurity, including disruption to our business and operations and exposure to liabilities from tenants, employees, capital providers, and other third parties, (x) risks generally incident to the ownership of real property, including adverse changes in economic conditions, changes in the investment climate for real estate, changes in real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, the relative illiquidity of real estate and environmental risks, and (xi) risks related to our status as a REIT for federal income tax purposes, such as the existence of complex regulations relating to our status as a REIT, the effect of future changes to REIT requirements as a result of new legislation and the adverse consequences of the failure to qualify as a REIT. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2024. www.SaulCenters.com 5
Page 3
Saul Centers, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands, except per share amounts) March 31, 2025 December 31, 2024 Assets Real estate investments Land $ 562,857 $ 562,047 Buildings and equipment 1,916,504 1,903,907 Construction in progress 337,446 326,193 2,816,807 2,792,147 Accumulated depreciation (779,214) (767,842) Total real estate investments, net 2,037,593 2,024,305 Cash and cash equivalents 6,492 10,299 Accounts receivable and accrued income, net 50,674 50,949 Deferred leasing costs, net 26,119 25,907 Other assets 10,608 14,944 Total assets $ 2,131,486 $ 2,126,404 Liabilities Mortgage notes payable, net $ 1,039,328 $ 1,047,832 Revolving credit facility payable, net 195,683 186,489 Term loan facility payable, net 99,716 99,679 Construction loans payable, net 209,872 198,616 Accounts payable, accrued expenses and other liabilities 51,407 46,162 Deferred income 20,161 23,033 Dividends and distributions payable 23,583 23,469 Total liabilities 1,639,750 1,625,280 Equity Preferred stock, 1,000,000 shares authorized: Series D Cumulative Redeemable, 30,000 shares issued and outstanding 75,000 75,000 Series E Cumulative Redeemable, 44,000 shares issued and outstanding 110,000 110,000 Common stock, $0.01 par value, 50,000,000 shares authorized, 24,318,414 and 24,302,576 shares issued and outstanding, respectively 243 243 Additional paid-in capital 455,112 454,086 Distributions in excess of accumulated earnings (313,879) (306,541) Accumulated other comprehensive income 1,891 2,966 Total Saul Centers, Inc. equity 328,367 335,754 Noncontrolling interests 163,369 165,370 Total equity 491,736 501,124 Total liabilities and equity $ 2,131,486 $ 2,126,404 www.SaulCenters.com 6
Page 4
Saul Centers, Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, (Dollars in thousands, except per share amounts) 2025 2024 Revenues Rental revenue $ 70,547 $ 65,299 Other 1,309 1,393 Total revenue 71,856 66,692 Expenses Property operating expenses 13,742 10,545 Real estate taxes 7,984 7,623 Interest expense, net and amortization of deferred debt costs 16,747 12,448 Depreciation and amortization of deferred leasing costs 14,523 12,029 General and administrative 6,012 5,784 Total expenses 59,008 48,429 Net income 12,848 18,263 Noncontrolling interests Income attributable to noncontrolling interests (3,049) (4,633) Net income attributable to Saul Centers, Inc. 9,799 13,630 Preferred stock dividends (2,798) (2,798) Net income available to common stockholders $ 7,001 $ 10,832 Per share net income available to common stockholders Basic and diluted: $ 0.29 $ 0.45 www.SaulCenters.com 7
Page 5
Reconciliation of net income to FFO available to common stockholders and noncontrolling interests (1) Three Months Ended March 31, (Dollars in thousands, except per share amounts) 2025 2024 Net income $ 12,848 $ 18,263 Add: Real estate depreciation and amortization 14,523 12,029 FFO 27,371 30,292 Subtract: Preferred stock dividends (2,798) (2,798) FFO available to common stockholders and noncontrolling interests $ 24,573 $ 27,494 Weighted average shares and units: Basic 34,686 34,348 Diluted 34,707 34,352 Basic and diluted FFO per share available to common stockholders and noncontrolling interests $ 0.71 $ 0.80 (1) 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 orderto recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by NAREIT as net income, computedin accordance with GAAP, plus real estate depreciation and amortization, and excluding impairment charges on real estate assets and gains or losses from real estate dispositions. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cashneeds, which is disclosed in the Company’s Consolidated Statements of Cash Flows for the applicable periods. There are no material legal or functional restrictions on the use of FFO. FFO should not be considered as an alternative to net income, its most directly comparable GAAP measure, as an indicator of the Company’s operatingperformance, or as an alternative to cash flows as a measure of liquidity. Management considers FFO a meaningful supplemental measure of operating performance becauseit primarily excludes the assumption that the value of the real estate assets diminishes predictably over time (i.e. depreciation), which is contrary to what the Company believes occurs with its assets, and because industry analysts have accepted it as a performance measure. FFO may not be comparable to similarly titled measures employedby other REITs. www.SaulCenters.com 8
Page 6
Reconciliation of revenue to same property revenue (2) Three Months Ended March 31, (Dollars in thousands) 2025 2024 Total revenue $ 71,856 $ 66,692 Revenue adjustments (1) (2,356) (258) Acquisitions, dispositions and development properties (1,300) — Total same property revenue $ 68,200 $ 66,434 Shopping Centers $ 47,998 $ 46,755 Mixed-Use properties 20,202 19,679 Total same property revenue $ 68,200 $ 66,434 Total Shopping Center revenue $ 47,998 $ 46,755 Shopping Center acquisitions, dispositions and development properties — — Total Shopping Center same property revenue $ 47,998 $ 46,755 Total Mixed-Use property revenue $ 21,502 $ 19,679 Mixed-Use acquisitions, dispositions and development properties (1,300) — Total Mixed-Use same property revenue $ 20,202 $ 19,679 (1) Revenue adjustments are straight-line base rent and above/below market lease amortization. (2) Same property revenue is a non-GAAP financial measure of performance that management believes improves the comparability of reporting periods by excluding theresults of properties that were not in operation for the entirety of the comparable reporting periods. Same property revenue adjusts property revenue by subtracting the revenue of properties not in operation for the entirety of the comparable reporting periods. Same property revenue is a measure of the operating performance of theCompany’s properties but does not measure the Company’s performance as a whole. Same property revenue should not be considered as an alternative to total revenue, itsmost directly comparable GAAP measure, as an indicator of the Company’s operating performance. Management considers same property revenue a meaningful supplemental measure of operating performance because it is not affected by the cost of the Company’s funding, the impact of depreciation and amortization expenses,gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate to ownership of the Company’s properties. Management believes the exclusion of these items from same property revenue is useful because the resulting measure captures the actual revenuegenerated by operating the Company’s properties. Other REITs may use different methodologies for calculating same property revenue. Accordingly, the Company’s sameproperty revenue may not be comparable to those of other REITs. Mixed-Use same property revenue is composed of the following: Three Months Ended March 31, (Dollars in thousands) 2025 2024 Office mixed-use properties (1) $ 9,781 $ 9,781 Residential mixed-use properties (residential activity) (2) 9,296 8,774 Residential mixed-use properties (retail activity) (3) 1,125 1,124 Total Mixed-Use same property revenue $ 20,202 $ 19,679 (1) Includes Avenel Business Park, Clarendon Center – North and South Blocks, 601 Pennsylvania Avenue and Washington Square (2) Includes Clarendon South Block, The Waycroft and Park Van Ness(3) Includes The Waycroft and Park Van Ness www.SaulCenters.com 9
Page 7
Reconciliation of net income to same property net operating income (2) Three Months Ended March 31, (Dollars in thousands) 2025 2024 Net income $ 12,848 $ 18,263 Interest expense, net and amortization of deferred debt costs 16,747 12,448 Depreciation and amortization of deferred leasing costs 14,523 12,029 General and administrative 6,012 5,784 Revenue adjustments (1) (2,356) (258) Total property net operating income 47,774 48,266 Acquisitions, dispositions, and development properties 247 — Total same property net operating income $ 48,021 $ 48,266 Shopping Centers $ 35,273 $ 35,792 Mixed-Use properties 12,748 12,474 Total same property net operating income $ 48,021 $ 48,266 Shopping Center property net operating income $ 35,273 $ 35,792 Shopping Center acquisitions, dispositions and development properties — — Total Shopping Center same property net operating income $ 35,273 $ 35,792 Mixed-Use property net operating income $ 12,501 $ 12,474 Mixed-Use acquisitions, dispositions and development properties 247 — Total Mixed-Use same property net operating income $ 12,748 $ 12,474 (1) Revenue adjustments are straight-line base rent and above/below market lease amortization.(2) Same property net operating income is a non-GAAP financial measure of performance that management believes improves the comparability of reporting periods byexcluding the results of properties that were not in operation for the entirety of the comparable reporting periods. Same property net operating income adjusts property net operating income by subtracting the results of properties that were not in operation for the entirety of the comparable periods. Same property net operating income is ameasure of the operating performance of the Company’s properties but does not measure the Company’s performance as a whole. Same property net operating income should not be considered as an alternative to property net operating income, its most directly comparable GAAP measure, as an indicator of the Company’s operatingperformance. Management considers same property net operating income a meaningful supplemental measure of operating performance because it is not affected by thecost of the Company’s funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate to ownership of the Company’s properties. Management believes the exclusion of these items from propertynet operating income is useful because the resulting measure captures the actual revenue generated and actual expenses incurred by operating the Company’s properties. Other REITs may use different methodologies for calculating same property net operating income. Accordingly, same property net operating income may not be comparableto those of other REITs. Mixed-Use same property net operating income is composed of the following: Three Months Ended March 31, (Dollars in thousands) 2025 2024 Office mixed-use properties (1) $ 6,118 $ 6,249 Residential mixed-use properties (residential activity) (2) 5,825 5,407 Residential mixed-use properties (retail activity) (3) 805 818 Total Mixed-Use same property net operating income $ 12,748 $ 12,474 (1) Includes Avenel Business Park, Clarendon Center – North and South Blocks, 601 Pennsylvania Avenue and Washington Square(2) Includes Clarendon South Block, The Waycroft and Park Van Ness (3) Includes The Waycroft and Park Van Ness www.SaulCenters.com
Page 8
10