BETHESDA, Md., Nov. 2, 2023
/PRNewswire/ -- Saul Centers, Inc.
(NYSE: BFS), an equity real estate investment trust ("REIT"),
announced operating results for the quarter ended
September 30, 2023 ("2023 Quarter"). Total revenue for
the 2023 Quarter increased to $63.8
million from $61.1 million for the quarter ended
September 30, 2022 ("2022 Quarter"). Net income
increased to $16.7 million for the
2023 Quarter from $15.5 million
for the 2022 Quarter primarily due to (a) higher commercial base
rent of $1.3 million, (b) higher
residential base rent of $0.7
million, (c) lower loss on early extinguishment of debt
of $0.6 million and (d) lower
general and administrative costs of $0.4
million, partially offset by (e) higher interest expense,
net and amortization of deferred debt costs of $1.3 million and (f) lower recovery income, net
of expenses, of $0.5 million.
Net income available to common stockholders increased to
$10.0 million, or $0.42 per basic and diluted share, for the
2023 Quarter from $9.2 million,
or $0.38 per basic and diluted
share, for the 2022 Quarter.
Same property revenue increased $2.7
million, or 4.4%, and same property operating income
increased $1.4 million, or 3.1%, for
the 2023 Quarter compared to the 2022 Quarter. Shopping
Center same property operating income for the 2023 Quarter totaled
$34.1 million, a $0.4 million increase from the 2022
Quarter. Shopping Center same property operating income
increased primarily due to (a) higher base rent of
$1.0 million, partially offset
by (b) lower recovery income, net of expenses, of $0.5 million. Mixed-Use same property
operating income totaled $12.3 million, a $1.0 million increase from the 2022 Quarter.
Mixed-Use same property operating income increased primarily due
to (a) higher residential base rent of $0.7 million and (b) higher parking income,
net of expenses, of $0.2 million. No properties were
excluded from same property results. Reconciliations of (a)
total revenue to same property revenue and (b) net income to
same property operating income are attached to this press
release.
Same property revenue and same property operating income are
non-GAAP financial measures of performance and improve the
comparability of these measures 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 minus the revenue of properties not in operation for
the entirety of the comparable reporting periods. We define
same property 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 early extinguishment of debt
minus (f) gains on sale of property and (g) the results of
properties not in operation for the entirety of the comparable
periods.
Funds from operations ("FFO") available to common stockholders
and noncontrolling interests (after deducting preferred stock
dividends) increased to $26.0
million, or $0.78 and
$0.76 per basic and diluted share,
respectively, in the 2023 Quarter compared to $24.9 million, or $0.75 and $0.73 per basic and diluted share,
respectively, in the 2022 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. The
increase in FFO available to common stockholders and noncontrolling
interests was primarily the result of (a) higher commercial base
rent of $1.3 million, (b) higher
residential base rent of $0.7
million, (c) lower loss on early extinguishment of debt
of $0.6 million and (d) lower
general and administrative costs of $0.4
million, partially offset by (e) higher interest
expense, net and amortization of deferred debt costs of
$1.3 million and (f) lower recovery
income, net of expenses, of $0.5
million.
As of September 30, 2023, 94.2% of the commercial portfolio
was leased, compared to 93.0% as of September 30, 2022.
As of September 30, 2023, the residential portfolio was 97.5%
leased compared to 97.2% as of September 30, 2022.
For the nine months ended September 30, 2023 ("2023
Period"), total revenue increased to $190.5
million from $183.5 million for the nine months ended
September 30, 2022 ("2022 Period"). Net income increased
to $51.6 million for the 2023 Period
from $50.0 million for the 2022
Period. The increase in net income was primarily due to (a)
higher commercial base rent of $3.3
million, (b) higher residential base rent of $2.5 million, (c) lower depreciation and
amortization of deferred leasing costs of $0.7 million, (d) lower loss on early
extinguishment of debt of $0.6
million and (e) higher lease termination fees of
$0.3 million, partially offset by (f)
higher interest expense, net and amortization of deferred debt
costs of $4.4 million and (g)
lower recovery income, net of expenses, of $1.3 million. Net income available to
common stockholders increased to $31.1
million, or $1.29 per basic
and diluted share, for the 2023 Period compared to $29.9 million, or $1.25 per basic and diluted share, for the
2022 Period.
Same property revenue increased $7.0
million, or 3.8%, and same property operating income
increased $4.7 million, or 3.5% for
the 2023 Period, compared to the 2022 Period. Shopping Center
same property operating income increased $2.0 million, or 2.0%, primarily due to
(a) higher base rent of $3.2
million, partially offset by (b) lower recovery income,
net of expenses, of $0.7 million and
(c) lower lease termination fees of $0.2
million. Mixed-Use same property operating income increased
$2.7 million, or 7.9%, primarily due
to (a) higher residential base rent of $2.5 million and (b) higher lease
termination fees of $0.5 million and
(c) higher parking income, net of expenses, of $0.2 million, partially offset by (d) lower
recovery income, net of expenses, of $0.7
million. No properties were excluded from same
property results.
FFO available to common stockholders and noncontrolling
interests, after deducting preferred stock dividends increased to
$79.4 million, or $2.38 and $2.33 per
basic and diluted share, respectively, in the 2023 Period from
$78.5 million, or $2.36 and $2.31 per basic and diluted share,
respectively, in the 2022 Period. FFO available to common
stockholders and noncontrolling interests increased primarily due
to (a) higher commercial base rent of $3.3
million, (b) higher residential base rent of $2.5 million, (c) lower loss on early
extinguishment of debt of $0.6 million and (d) higher lease
termination fees of $0.3 million, partially offset by (e) higher
interest expense, net and amortization of deferred debt costs of
$4.4 million and (f) lower recovery income, net of expenses,
of $1.3 million.
As of October 31, 2023, the Company had collected 98.8% of
contractual base rent and operating expense and real estate tax
recoveries due during the 2023 Quarter. For discussion of how
the COVID-19 pandemic has impacted the Company's business, please
see Part 1, Item 2 (Management's Discussion and Analysis of
Financial Condition and Results of Operations) of our Quarterly
Report on Form 10-Q for the quarter ended September 30,
2023.
Although we are and will continue to be actively engaged in rent
collection efforts related to uncollected rent, and we continue to
work with certain tenants who have requested rent deferrals, we can
provide no assurance that such efforts or our efforts in future
periods will be successful. As of September 30, 2023, of
the $9.4 million of rents previously
deferred, $8.9 million has come due
and $0.3 million has been written
off. Of the amounts that have come due, $8.6
million, or approximately 96%, has been paid as of
October 31, 2023.
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 61
properties, which includes (a) 50 community and neighborhood
shopping centers and seven mixed-use properties with approximately
9.8 million square feet of leasable area and (b) four
non-operating land and development properties. Over 85% of the Saul
Centers' property operating income is generated by properties in
the metropolitan Washington, D.C./Baltimore area.
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 (i) Form 10-K for
the year ended December 31, 2022 and (ii) our Quarterly Report
on Form 10-Q for the quarter ended September 30, 2023 and
include the following: (i) general adverse economic and local real
estate conditions, (ii) the inability of major tenants to continue
paying their rent obligations due to bankruptcy, insolvency or a
general downturn in their business, (iii) financing risks, such as
the inability to obtain equity, debt or other sources of financing
or refinancing on favorable terms to the Company, (iv) the
Company's ability to raise capital by selling its assets,
(v) changes in governmental laws and regulations and
management's ability to estimate the impact of such changes, (vi)
the level and volatility of interest rates and management's ability
to estimate the impact thereof, (vii) the availability of suitable
acquisition, disposition, development and redevelopment
opportunities, and risks related to acquisitions not performing in
accordance with our expectations, (viii) increases in
operating costs, (ix) changes in the dividend policy for the
Company's common and preferred stock and the Company's ability to
pay dividends at current levels, (x) the reduction in the Company's
income in the event of multiple lease terminations by tenants or a
failure by multiple tenants to occupy their premises in a shopping
center, (xi) impairment charges, (xii) unanticipated changes
in the Company's intention or ability to prepay certain debt prior
to maturity and (xiii) an epidemic or pandemic (such as the
outbreak and worldwide spread of COVID-19), and the measures that
international, federal, state and local governments, agencies, law
enforcement and/or health authorities implement to address it,
which may (as with COVID-19) precipitate or exacerbate one or more
of the above-mentioned and/or other risks, and significantly
disrupt or prevent us from operating our business in the ordinary
course for an extended period. 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 (i) our
Annual Report on Form 10-K for the year ended December 31,
2022 and (ii) our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2023.
|
Saul Centers,
Inc.
Consolidated Balance
Sheets
(Unaudited)
|
|
|
(Dollars in
thousands, except per share amounts)
|
September
30,
2023
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
Real estate
investments
|
|
|
|
|
Land
|
$
511,529
|
|
$
511,529
|
|
Buildings and
equipment
|
1,588,219
|
|
1,574,381
|
|
Construction in
progress
|
467,939
|
|
322,226
|
|
2,567,687
|
|
2,408,136
|
|
Accumulated
depreciation
|
(719,163)
|
|
(688,475)
|
|
1,848,524
|
|
1,719,661
|
|
Cash and cash
equivalents
|
6,586
|
|
13,279
|
|
Accounts receivable
and accrued income, net
|
56,894
|
|
56,323
|
|
Deferred leasing
costs, net
|
23,147
|
|
22,388
|
|
Other
assets
|
25,772
|
|
21,651
|
|
Total
assets
|
$ 1,960,923
|
|
$ 1,833,302
|
|
Liabilities
|
|
|
|
|
Notes payable,
net
|
$
943,538
|
|
$
961,577
|
|
Revolving credit
facility payable, net
|
249,521
|
|
161,941
|
|
Term loan facility
payable, net
|
99,493
|
|
99,382
|
|
Construction loan
payable, net
|
50,760
|
|
—
|
|
Accounts payable,
accrued expenses and other liabilities
|
60,819
|
|
42,978
|
|
Deferred
income
|
22,977
|
|
23,169
|
|
Dividends and
distributions payable
|
22,482
|
|
22,453
|
|
Total
liabilities
|
1,449,590
|
|
1,311,500
|
|
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, 40,000,000 shares authorized, 24,064,211 and
24,016,009 shares
issued and outstanding, respectively
|
241
|
|
240
|
|
Additional paid-in
capital
|
449,076
|
|
446,301
|
|
Partnership units in
escrow
|
39,650
|
|
39,650
|
|
Distributions in
excess of accumulated net income
|
(285,024)
|
|
(273,559)
|
|
Accumulated other
comprehensive income
|
4,724
|
|
2,852
|
|
Total Saul Centers,
Inc. equity
|
393,667
|
|
400,484
|
|
Noncontrolling
interests
|
117,666
|
|
121,318
|
|
Total
equity
|
511,333
|
|
521,802
|
|
Total liabilities and
equity
|
$ 1,960,923
|
|
$ 1,833,302
|
|
Saul Centers,
Inc.
Consolidated
Statements of Operations
(In thousands, except
per share amounts)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue
|
(unaudited)
|
|
(unaudited)
|
|
Rental
revenue
|
$
62,369
|
|
$
59,951
|
|
$
186,199
|
|
$
179,765
|
|
Other
|
1,397
|
|
1,136
|
|
4,325
|
|
3,759
|
|
Total
revenue
|
63,766
|
|
61,087
|
|
190,524
|
|
183,524
|
|
Expenses
|
|
|
|
|
|
|
|
|
Property operating
expenses
|
9,720
|
|
8,995
|
|
27,502
|
|
26,174
|
|
Real estate
taxes
|
7,641
|
|
7,078
|
|
22,589
|
|
21,652
|
|
Interest expense, net
and amortization of deferred debt costs
|
12,419
|
|
11,103
|
|
36,518
|
|
32,162
|
|
Depreciation and
amortization of deferred leasing costs
|
12,096
|
|
12,195
|
|
36,227
|
|
36,899
|
|
General and
administrative
|
5,179
|
|
5,555
|
|
16,125
|
|
15,988
|
|
Loss on early
extinguishment of debt
|
—
|
|
648
|
|
—
|
|
648
|
|
Total
expenses
|
47,055
|
|
45,574
|
|
138,961
|
|
133,523
|
|
Net
Income
|
16,711
|
|
15,513
|
|
51,563
|
|
50,001
|
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests
|
(3,892)
|
|
(3,563)
|
|
(12,080)
|
|
(11,670)
|
|
Net income
attributable to Saul Centers, Inc.
|
12,819
|
|
11,950
|
|
39,483
|
|
38,331
|
|
Preferred stock
dividends
|
(2,798)
|
|
(2,798)
|
|
(8,395)
|
|
(8,395)
|
|
Net income available
to common stockholders
|
$
10,021
|
|
$
9,152
|
|
$
31,088
|
|
$
29,936
|
|
Per share net income
available to common stockholders
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
0.42
|
|
$
0.38
|
|
$
1.29
|
|
$
1.25
|
|
|
Reconciliation of net
income to FFO available to common stockholders and
noncontrolling
interests (1)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
(In thousands,
except per share amounts)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income
|
$
16,711
|
|
$
15,513
|
|
$
51,563
|
|
$
50,001
|
|
Add:
|
|
|
|
|
|
|
|
|
Real estate
depreciation and amortization
|
12,096
|
|
12,195
|
|
36,227
|
|
36,899
|
|
FFO
|
28,807
|
|
27,708
|
|
87,790
|
|
86,900
|
|
Subtract:
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
(2,798)
|
|
(2,798)
|
|
(8,395)
|
|
(8,395)
|
|
FFO available to common
stockholders and noncontrolling interests
|
$
26,009
|
|
$
24,910
|
|
$
79,395
|
|
$
78,505
|
|
Weighted average shares
and units:
|
|
|
|
|
|
|
|
|
Basic
|
33,357
|
|
33,295
|
|
33,340
|
|
33,238
|
|
Diluted
(2)
|
34,068
|
|
34,005
|
|
34,049
|
|
33,957
|
|
Basic FFO per share
available to common stockholders and noncontrolling
interests
|
$
0.78
|
|
$
0.75
|
|
$
2.38
|
|
$
2.36
|
|
Diluted FFO per share
available to common stockholders and noncontrolling
interests
|
$
0.76
|
|
$
0.73
|
|
$
2.33
|
|
$
2.31
|
|
|
|
(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 order to recognize that income-producing real estate
historically has not depreciated on the basis determined under
GAAP. FFO is defined by NAREIT as net income, computed in
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 cash needs, 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 operating performance, or as an alternative to
cash flows as a measure of liquidity. Management considers FFO a
meaningful supplemental measure of operating performance because it
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
employed by other REITs.
|
|
(2)
|
Beginning March 5,
2021, fully diluted shares and units includes 1,416,071 limited
partnership units that were held in escrow related to the
contribution of Twinbrook Quarter. Half of the units held in escrow
were released on October 18, 2021. The remaining units held in
escrow were released on October 18, 2023.
|
|
Reconciliation of
revenue to same property revenue (3)
|
|
|
(in
thousands)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Total
revenue
|
|
$
63,766
|
|
$
61,087
|
|
$
190,524
|
|
$
183,524
|
|
Less: Acquisitions,
dispositions and development properties
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total same property
revenue
|
|
$
63,766
|
|
$
61,087
|
|
$
190,524
|
|
$
183,524
|
|
|
|
|
|
|
|
|
|
|
Shopping
Centers
|
|
$
44,014
|
|
$
42,478
|
|
$
132,214
|
|
$
128,615
|
|
Mixed-Use
properties
|
|
19,752
|
|
18,609
|
|
58,310
|
|
54,909
|
|
Total same property
revenue
|
|
$
63,766
|
|
$
61,087
|
|
$
190,524
|
|
$
183,524
|
|
|
|
|
|
|
|
|
|
|
Total Shopping
Center revenue
|
|
$
44,014
|
|
$
42,478
|
|
$
132,214
|
|
$
128,615
|
|
Less: Shopping Center
acquisitions, dispositions and development properties
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total same Shopping
Center revenue
|
|
$
44,014
|
|
$
42,478
|
|
$
132,214
|
|
$
128,615
|
|
|
|
|
|
|
|
|
|
|
Total Mixed-Use
property revenue
|
|
$
19,752
|
|
$
18,609
|
|
$
58,310
|
|
$
54,909
|
|
Less: Mixed-Use
acquisitions, dispositions and development properties
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total same Mixed-Use
property revenue
|
|
$
19,752
|
|
$
18,609
|
|
$
58,310
|
|
$
54,909
|
|
|
|
(3)
|
Same property revenue
is a non-GAAP financial measure of performance that management
believes improves the comparability of reporting periods by
excluding the results 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 the Company'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, its most 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 revenue generated and actual expenses incurred
by operating the Company's properties. Other REITs may use
different methodologies for calculating same property
revenue. Accordingly, the Company's same property revenue may
not be comparable to those of other REITs.
|
|
Mixed-Use same property
revenue is composed of the following:
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Office mixed-use
properties (1)
|
|
$
9,805
|
|
$
9,489
|
|
$
28,806
|
|
$
28,381
|
|
Residential mixed-use
properties (retail activity) (2)
|
|
1,173
|
|
1,017
|
|
3,461
|
|
2,948
|
|
Residential mixed-use
properties (residential activity) (3)
|
|
8,774
|
|
8,103
|
|
26,043
|
|
23,580
|
|
Total Mixed-Use same
property revenue
|
|
$
19,752
|
|
$
18,609
|
|
$
58,310
|
|
$
54,909
|
|
|
|
(1)
|
Includes Avenel
Business Park, Clarendon Center – North and South Blocks,
601 Pennsylvania Avenue and Washington Square
|
|
(2)
|
Includes The Waycroft
and Park Van Ness
|
|
(3)
|
Includes Clarendon
South Block, The Waycroft and Park Van Ness
|
|
Reconciliation of net
income to same property operating income (4)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
(In
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(unaudited)
|
|
(unaudited)
|
|
Net
income
|
$
16,711
|
|
$
15,513
|
|
$
51,563
|
|
$
50,001
|
|
Add: Interest expense,
net and amortization of deferred debt costs
|
12,419
|
|
11,103
|
|
36,518
|
|
32,162
|
|
Add: Depreciation and
amortization of deferred leasing costs
|
12,096
|
|
12,195
|
|
36,227
|
|
36,899
|
|
Add: General and
administrative
|
5,179
|
|
5,555
|
|
16,125
|
|
15,988
|
|
Add: Loss on early
extinguishment of debt
|
—
|
|
648
|
|
—
|
|
648
|
|
Property operating
income
|
46,405
|
|
45,014
|
|
140,433
|
|
135,698
|
|
Less: Acquisitions,
dispositions and development properties
|
—
|
|
—
|
|
—
|
|
—
|
|
Total same property
operating income
|
$
46,405
|
|
$
45,014
|
|
$
140,433
|
|
$
135,698
|
|
|
|
|
|
|
|
|
|
Shopping
Centers
|
$
34,069
|
|
$
33,652
|
|
$
103,547
|
|
$
101,513
|
|
Mixed-Use
properties
|
12,336
|
|
11,362
|
|
36,886
|
|
34,185
|
|
Total same property
operating income
|
$
46,405
|
|
$
45,014
|
|
$
140,433
|
|
$
135,698
|
|
|
|
|
|
|
|
|
|
Shopping Center
operating income
|
$
34,069
|
|
$
33,652
|
|
$
103,547
|
|
$
101,513
|
|
Less: Shopping Center
acquisitions, dispositions and development properties
|
—
|
|
—
|
|
—
|
|
—
|
|
Total same Shopping
Center operating income
|
$
34,069
|
|
$
33,652
|
|
$
103,547
|
|
$
101,513
|
|
|
|
|
|
|
|
|
|
Mixed-Use property
operating income
|
$
12,336
|
|
$
11,362
|
|
$
36,886
|
|
$
34,185
|
|
Less: Mixed-Use
acquisitions, dispositions and development properties
|
—
|
|
—
|
|
—
|
|
—
|
|
Total same Mixed-Use
property operating income
|
$
12,336
|
|
$
11,362
|
|
$
36,886
|
|
$
34,185
|
|
|
|
(4)
|
Same property operating
income is a non-GAAP financial measure of performance that
management believes improves the comparability of reporting periods
by excluding the results of properties that were not in operation
for the entirety of the comparable reporting periods. Same
property operating income adjusts property operating income by
subtracting the results of properties that were not in operation
for the entirety of the comparable periods. Same property
operating income is a measure of the operating performance of the
Company's properties but does not measure the Company's performance
as a whole. Same property operating income should not be
considered as an alternative to property operating income, its most
directly comparable GAAP measure, as an indicator of the Company's
operating performance. Management considers same property
operating income 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 property 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
operating income. Accordingly, same property operating income
may not be comparable to those of other REITs.
|
|
Mixed-Use same property
operating income is composed of the following:
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
(In
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Office mixed-use
properties (1)
|
|
$
6,177
|
|
$
5,939
|
|
$
18,354
|
|
$
18,265
|
|
Residential mixed-use
properties (retail activity) (2)
|
|
862
|
|
743
|
|
2,509
|
|
2,142
|
|
Residential mixed-use
properties (residential activity) (3)
|
|
5,297
|
|
4,680
|
|
16,023
|
|
13,778
|
|
Total Mixed-Use same
property operating income
|
|
$
12,336
|
|
$
11,362
|
|
$
36,886
|
|
$
34,185
|
|
|
|
(1)
|
Includes Avenel
Business Park, Clarendon Center – North and South Blocks,
601 Pennsylvania Avenue and Washington Square
|
|
(2)
|
Includes The Waycroft
and Park Van Ness
|
|
(3)
|
Includes Clarendon
South Block, The Waycroft and Park Van Ness
|
View original
content:https://www.prnewswire.com/news-releases/saul-centers-inc-reports-third-quarter-2023-earnings-301976452.html
SOURCE Saul Centers, Inc.
