Financial Performance - Net income for the three months ended September 30, 2025, decreased to $14.0 million from $19.6 million for the same period in 2024, primarily due to a $4.7 million adverse impact from the initial operations of Twinbrook Quarter Phase I[130]. - Total revenue for the three months ended September 30, 2025, was $72.004 million, an increase of 7.0% compared to $67.288 million for the same period in 2024[131]. - Net income for the 2025 Period decreased to $41.0 million from $57.3 million for the 2024 Period, primarily due to a $16.4 million adverse impact from Twinbrook Quarter Phase I[143]. - Total revenue for the 2025 Period increased by 6.9% compared to the 2024 Period, primarily due to the initial operations of Twinbrook Quarter Phase I contributing $8.9 million[144]. - Funds From Operations (FFO) available to common stockholders for the 2025 Quarter totaled $25.3 million, a decrease of 12.3% compared to the 2024 Quarter[189]. - FFO available to common stockholders for the 2025 Period totaled $75.2 million, a decrease of 11.4% compared to the 2024 Period[189]. Revenue and Rent Growth - Base rent increased by 9.1% to $59.250 million in the 2025 Quarter from $54.332 million in the 2024 Quarter[131]. - Total revenue increased by 7.0% in the 2025 Quarter compared to the 2024 Quarter, primarily due to the initial operations of Twinbrook Quarter Phase I generating $3.9 million[133]. - Base rent increased by $4.9 million in the 2025 Quarter compared to the 2024 Quarter, driven by higher base rent related to Twinbrook Quarter Phase I of $3.5 million[134]. - Average annualized base rent per square foot for commercial properties increased by 5.5% to $22.33 for the nine months ended September 30, 2025[198]. - Average annualized effective rent per square foot for commercial properties increased by 5.7% to $20.68 for the nine months ended September 30, 2025[198]. - The average base rent per square foot for new leases in shopping centers was $22.76 for the three months ended September 30, 2025, compared to $20.92 for the same period in 2024[202]. Expenses and Financial Obligations - Total expenses increased by 21.6% in the 2025 Quarter compared to the 2024 Quarter, primarily due to the initial operations of Twinbrook Quarter Phase I, which generated $8.6 million of expenses[137]. - Property operating expenses increased by 22.7% in the 2025 Period compared to the 2024 Period, primarily due to the initial operations of Twinbrook Quarter Phase I of $3.6 million[149]. - Interest expense, net and amortization of deferred debt costs increased by 37.1% in the 2025 Period compared to the 2024 Period, primarily due to the initial operations of Twinbrook Quarter Phase I of $14.4 million[151]. - General and administrative expenses increased by 8.7% in the 2025 Period compared to the 2024 Period, primarily due to higher employment costs of $1.3 million[153]. - Total expenses increased by 20.9% to $173.8 million in the 2025 Period, primarily due to the initial operations of Twinbrook Quarter Phase I, which generated $25.3 million of expenses[148]. Leasing and Occupancy - The commercial leasing percentage decreased to 94.4% at September 30, 2025, down from 95.7% at September 30, 2024[120]. - As of November 3, 2025, 431 of the 452 (95.4%) residential units at Twinbrook Quarter Phase I were leased and occupied[122]. - The Residential portfolio was 98.5% leased as of September 30, 2025, compared to 98.8% at September 30, 2024[213]. - The Mixed-Use Commercial leasing percentage for office properties decreased to 88.5% as of September 30, 2025, from 88.9% as of September 30, 2024[200]. - As of September 30, 2025, 94.5% of the Commercial portfolio was leased, down from 95.7% as of September 30, 2024[199]. Development Projects - The Company has a pipeline for the development of up to 2,800 apartment units and 860,000 square feet of retail and office space, primarily located near Metro stations in Montgomery County, Maryland[117]. - The company is developing Twinbrook Quarter Phase I, which includes 452 apartment units and a Wegmans supermarket, with a remaining investment not expected to exceed $10.1 million[174]. - The company is also developing Hampden House, which will include up to 366 apartment units, with 70 units leased as of November 3, 2025, representing 19.1% occupancy[175]. - The Company has a $145.0 million construction-to-permanent loan related to the Twinbrook Quarter development project, with a balance of $136.6 million as of September 30, 2025[186]. Debt and Liquidity - The Company maintains a total debt to total estimated asset market value ratio of under 50%, allowing for additional secured borrowings if necessary[121]. - The outstanding debt totaled approximately $1.61 billion with a weighted average remaining term of 8.6 years as of September 30, 2025[121]. - The Company had a $600.0 million New Credit Facility, which includes a $460.0 million New Revolving Credit Facility and a $140.0 million New Term Loan[182]. - The New Credit Facility requires the Company to maintain compliance with certain financial covenants, which it was in compliance with as of September 30, 2025[183]. - Approximately $101.1 million was available and undrawn under the New Credit Facility as of September 30, 2025[182]. Cash Flow and Reserves - Cash and cash equivalents increased to $11.8 million as of September 30, 2025, compared to $7.2 million in 2024[168]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $77.6 million, down from $92.4 million in 2024[169]. - The increase in credit losses on operating lease receivables, net, was 91.1% in the 2025 Period compared to the 2024 Period, primarily due to higher reserves across the portfolio[146]. Shareholder Returns - The Company issued 49,880 shares under the Dividend Reinvestment Plan (DRIP) at a weighted average discounted price of $32.57 per share during the nine months ended September 30, 2025[179].

Revenue Performance - Total revenue for Q3 2025 increased to $72.0 million, up from $67.3 million in Q3 2024, representing a growth of 11.0%[3] - For the nine months ended September 30, 2025, total revenue increased to $214.7 million from $200.9 million for the same period in 2024, a growth of 6.0%[10] - Total revenue for the three months ended September 30, 2025, was $72,004,000, an increase of 7.4% compared to $67,288,000 for the same period in 2024[20] - Total rental revenue for the three months ended September 30, 2025, was $70,679,000, an increase of 7.3% from $65,550,000 in 2024[20] Net Income - Net income for Q3 2025 decreased to $14.0 million, down from $19.6 million in Q3 2024, a decline of 28.6%[3] - Net income available to common stockholders decreased to $7.7 million, or $0.32 per share, compared to $11.7 million, or $0.48 per share, in Q3 2024, reflecting a decrease of 34.2%[4] - Net income for the nine months ended September 30, 2025, decreased to $41.0 million from $57.3 million in 2024, a decline of 28.5%[10] - Net income for the three months ended September 30, 2025, was $13,996,000, a decrease of 28.1% from $19,592,000 in the same period of 2024[20] - Net income available to common stockholders for the three months ended September 30, 2025, was $7,691,000, a decrease of 34.3% from $11,683,000 in 2024[20] Funds from Operations (FFO) - Funds from operations (FFO) available to common stockholders decreased to $25.3 million, or $0.72 per share, from $28.9 million, or $0.84 per share, in Q3 2024, a decline of 12.5%[8] - FFO available to common stockholders decreased to $75.2 million, or $2.16 per share, from $84.9 million, or $2.46 per share, in the same period of 2024, a decline of 11.5%[12] - Funds from Operations (FFO) available to common stockholders and noncontrolling interests for the three months ended September 30, 2025, was $25,304,000, down 12.5% from $28,866,000 in 2024[22] - Basic FFO per share available to common stockholders for the three months ended September 30, 2025, was $0.72, down from $0.84 in the same period of 2024[22] Same Property Performance - Same property revenue decreased by $0.2 million, or 0.3%, and same property net operating income decreased by $1.0 million, or 2.0%, for Q3 2025 compared to Q3 2024[5] - Same property net operating income decreased by $3.4 million, or 2.3%, for the nine months ended September 30, 2025, compared to the same period in 2024[11] - Same property revenue for the three months ended September 30, 2025, was $66,491,000, a slight decrease of 0.3% compared to $66,710,000 in 2024[25] - Total same property net operating income for the three months ended September 30, 2025, was $47,994,000, a decrease of 2.0% from $48,979,000 in 2024[29] - Same property net operating income for mixed-use properties totaled $12,235,000 for the three months ended September 30, 2025, compared to $12,830,000 for the same period in 2024, reflecting a decrease of 4.6%[32] - For the nine months ended September 30, 2025, total mixed-use same property net operating income was $37,750,000, down from $38,100,000 in 2024, indicating a decline of 0.9%[32] Operational Metrics - As of September 30, 2025, 94.5% of the commercial portfolio was leased, down from 95.7% as of September 30, 2024[9] - General and administrative expenses for the three months ended September 30, 2025, were $6,658,000, an increase of 17.2% from $5,680,000 in 2024[20] - The company defines same property net operating income as net income adjusted for various expenses, providing a clearer view of operational performance excluding certain costs[30] - Management considers same property net operating income a meaningful supplemental measure, as it reflects actual revenue and expenses from operating properties[30] - The methodology for calculating same property net operating income may differ among other REITs, affecting comparability[30] - The company operates several mixed-use properties, including Avenel Business Park and Clarendon Center, contributing to its overall performance metrics[32] Mixed-Use Properties Performance - Office mixed-use properties generated $5,856,000 in net operating income for the three months ended September 30, 2025, compared to $6,486,000 in 2024, a decrease of 9.7%[32] - Residential mixed-use properties (residential activity) reported net operating income of $5,576,000 for the three months ended September 30, 2025, slightly up from $5,530,000 in 2024, an increase of 0.8%[32] - Residential mixed-use properties (retail activity) achieved net operating income of $803,000 for the three months ended September 30, 2025, compared to $814,000 in 2024, a decrease of 1.4%[32]

Core Insights - Saul Centers, Inc. reported total revenue of $72.0 million for the quarter ended September 30, 2025, an increase from $67.3 million in the same quarter of 2024, while net income decreased to $14.0 million from $19.6 million [1] - The initial operations of Twinbrook Quarter Phase I negatively impacted net income by $4.7 million, primarily due to a reduction in capitalized interest [1][5] - Funds from operations (FFO) available to common stockholders decreased to $25.3 million, or $0.72 per share, compared to $28.9 million, or $0.84 per share, in the prior year [3][7] Financial Performance - Total revenue for the nine months ended September 30, 2025, increased to $214.7 million from $200.9 million for the same period in 2024 [5] - Net income for the nine months decreased to $41.0 million from $57.3 million, with the initial operations of Twinbrook Quarter Phase I adversely impacting net income by $16.4 million [5][6] - Same property revenue decreased by $0.2 million, or 0.3%, and same property net operating income decreased by $1.0 million, or 2.0%, for the quarter compared to the previous year [2] Operational Metrics - As of September 30, 2025, 94.5% of the commercial portfolio was leased, down from 95.7% a year earlier, while the residential portfolio was 98.5% leased compared to 98.8% [4] - The shopping center same property net operating income totaled $35.8 million, a decrease of $0.4 million compared to the previous year, primarily due to lower lease termination fees [2] - Mixed-use same property net operating income for the quarter totaled $12.2 million, a decrease of $0.6 million, mainly due to lower commercial base rent [2] Balance Sheet Highlights - As of September 30, 2025, total assets were $2.17 billion, an increase from $2.13 billion at the end of 2024 [10] - Total liabilities increased to $1.68 billion from $1.63 billion, with mortgage notes payable at $1.02 billion [10] - Total equity decreased to $485.2 million from $501.1 million, reflecting a decline in net income available to common stockholders [10]

Core Insights - Dateline Resources Limited is providing an update on its drilling activities at the Colosseum Gold-REE Project in California, indicating progress in its exploration efforts [1] Drilling Activities - The drilling program is nearly complete, with three drill rigs currently operating on site: one diamond rig and two reverse circulation (RC) rigs [1] - An additional sonic rig was previously supporting the program but has completed its tailings stability work and has been demobilized [1]

Core Insights - Dateline Resources Limited has provided an update on its drilling activities at the Colosseum Gold-REE Project in California, indicating progress in its exploration efforts [1] Drilling Activities - The drilling program is nearly complete, with three drill rigs currently operating on site: one diamond rig and two reverse circulation (RC) rigs [1] - An additional sonic rig was previously supporting the program but has completed its tailings stability work and has been demobilized [1]

Core Viewpoint - The equity market serves as a significant mechanism for wealth creation or destruction over the long term, with Pacifica Yield focusing on undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Group 1 - Pacifica Yield aims to pursue long-term wealth creation [1] - The strategy includes a focus on undervalued yet high-growth companies [1] - High-dividend tickers, REITs, and green energy firms are also key areas of interest [1]

Core Viewpoint - Saul Centers (NYSE: BFS) has underperformed significantly over the past year, losing approximately 23% of its value, while the broader market has recovered from its April losses [1] Performance Analysis - BFS shares have reached new lows despite the overall market recovery, indicating a persistent weakness in the stock [1] Investment Strategy - The article suggests a contrarian investment approach, highlighting the potential for turnaround stories in the stock market, which could offer favorable risk/reward profiles [1]

Core Viewpoint - Saul Centers (NYSE: BFS) has underperformed significantly over the past year, losing approximately 23% of its value, while the broader market has recovered from its April losses [1] Company Performance - BFS shares have reached new lows despite the overall market recovery, indicating a persistent weakness in the company's stock performance [1] Market Context - The underperformance of BFS is notable as it contrasts with the recovery trends observed in other market segments, suggesting specific challenges faced by the company [1]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited consolidated financial statements, management's discussion, market risk disclosures, and controls for the period [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the quarterly period ended June 30, 2025, showing decreased net income and EPS due to increased expenses Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total real estate investments, net** | $2,047,907 | $2,024,305 | | **Total assets** | $2,139,684 | $2,126,404 | | **Total liabilities** | $1,651,410 | $1,625,280 | | **Total equity** | $488,274 | $501,124 | Consolidated Statements of Operations Highlights (Unaudited) | (In thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $70,834 | $66,943 | $142,690 | $133,635 | | **Net income** | $14,181 | $19,490 | $27,029 | $37,753 | | **Net income available to common stockholders** | $7,921 | $11,649 | $14,922 | $22,481 | | **Basic and diluted EPS** | $0.33 | $0.48 | $0.62 | $0.93 | Consolidated Statements of Cash Flows Highlights (Unaudited) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $56,978 | $65,959 | | **Net cash used in investing activities** | $(54,568) | $(90,194) | | **Net cash provided by (used in) financing activities** | $(7,406) | $22,691 | | **Net decrease in cash and cash equivalents** | $(4,996) | $(1,544) | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the company's REIT operations, significant construction projects, and the replacement of its credit facility - The company operates as a REIT, focusing on community and neighborhood shopping centers and mixed-use properties, primarily in the Washington, DC/Baltimore metropolitan area, with **50 shopping centers and eight mixed-use properties** as of June 30, 2025[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Construction in Progress Breakdown | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Hampden House | $245,947 | $217,537 | | Twinbrook Quarter - Other | $84,612 | $84,662 | | Twinbrook Quarter Phase I - Retail/Residential | $2,542 | $9,664 | | Other | $23,410 | $14,330 | | **Total** | **$356,511** | **$326,193** | - On July 30, 2025, the company replaced its $525.0 million credit facility with a new **$600.0 million senior unsecured credit facility**, comprising a **$460.0 million revolving line** and a **$140.0 million term loan**[51](index=51&type=chunk)[105](index=105&type=chunk) - The company's operations are aggregated into two reportable business segments: Shopping Centers and Mixed-Use Properties, with performance evaluated based on property net operating income (NOI)[95](index=95&type=chunk)[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, results, liquidity, and capital resources, noting net income decline due to Twinbrook Quarter Phase I [Critical Accounting Policies](index=33&type=section&id=Critical%20Accounting%20Policies) This section outlines key accounting policies requiring significant management judgment, particularly for real estate valuation and accounts receivable collectability - Real estate investment properties are stated at historic cost less depreciation and are evaluated for impairment if an event or change in circumstance indicates a potential impairment in value[119](index=119&type=chunk)[120](index=120&type=chunk) - The assessment of accounts receivable and the allowance for doubtful accounts requires significant management judgment, based on an analysis of outstanding balances, historical bad debt levels, and current economic trends[121](index=121&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) This section details the decrease in net income for Q2 and H1 2025, primarily due to the adverse impact of Twinbrook Quarter Phase I operations - For the three months ended June 30, 2025, net income decreased to **$14.2 million** from **$19.5 million** in the prior year, primarily due to a **$5.4 million adverse impact** from the initial operations of Twinbrook Quarter Phase I[123](index=123&type=chunk) - For the six months ended June 30, 2025, net income decreased to **$27.0 million** from **$37.8 million** in the prior year, primarily due to an **$11.6 million adverse impact** from the initial operations of Twinbrook Quarter Phase I[131](index=131&type=chunk) Change in Total Expenses (Q2 2025 vs Q2 2024) | (In thousands) | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total expenses** | **$56,773** | **$47,634** | **$9,139** | **19.2%** | Change in Total Expenses (H1 2025 vs H1 2024) | (In thousands) | H1 2025 | H1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total expenses** | **$115,781** | **$96,063** | **$19,718** | **20.5%** | [Same property revenue and same property net operating income](index=36&type=section&id=Same%20property%20revenue%20and%20same%20property%20net%20operating%20income) This section presents non-GAAP same-property NOI, which decreased by **4.3%** for Q2 2025 and **2.4%** for H1 2025, mainly due to lower lease termination fees Same Property Net Operating Income (NOI) Comparison | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total same property NOI** | **$48,063** | **$50,216** | **$96,084** | **$98,481** | | YoY Change | (4.3%) | | (2.4%) | | - The decrease in same property NOI for both the three and six-month periods was primarily due to lower lease termination fees in the Shopping Center segment[151](index=151&type=chunk)[152](index=152&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's liquidity, capital strategy, and financing, including major development project funding and a new **$600 million** credit facility - The company is actively developing two major projects: Twinbrook Quarter Phase I and Hampden House, with remaining investments (excluding capitalized interest) not expected to exceed **$10.9 million** and **$18.1 million**, respectively[160](index=160&type=chunk)[161](index=161&type=chunk) - Subsequent to the quarter end, on July 30, 2025, the company replaced its credit facility with a new **$600.0 million senior unsecured credit facility**, enhancing its liquidity[171](index=171&type=chunk) Funds From Operations (FFO) Reconciliation | (In thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $14,181 | $19,490 | $27,029 | $37,753 | | **FFO** | $28,159 | $31,310 | $55,530 | $61,602 | | **FFO available to common stockholders** | $25,360 | $28,511 | $49,933 | $56,005 | | **Basic and diluted FFO per share** | $0.73 | $0.83 | $1.44 | $1.63 | - The commercial portfolio was **94.0% leased** as of June 30, 2025, a decrease from **95.8%** as of June 30, 2024, with a same-property leasing rate of **93.9%**[184](index=184&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section identifies interest rate fluctuations and inflation as primary market risks, with **$201.0 million** in unhedged variable-rate debt - The company is exposed to interest rate risk on its **$201.0 million** of unhedged variable-rate debt, where a **1% change** would result in a **$2.0 million change** in annual interest expense[200](index=200&type=chunk) - Inflation poses a risk by potentially increasing unreimbursed operating costs and adversely impacting consumer demand at retail centers, which could affect tenants' ability to pay rent[201](index=201&type=chunk) [Controls and Procedures](index=51&type=section&id=Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The company's management concluded that disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025[203](index=203&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[204](index=204&type=chunk) [PART II. OTHER INFORMATION](index=52&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, unregistered sales of equity securities, and a list of exhibits [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings - The company reports that there are no material legal proceedings[206](index=206&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company states there are no material updates to the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There are no material updates to the risk factors presented in the company's 2024 Annual Report on Form 10-K[206](index=206&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports the sale of **6,110 shares** of common stock and **179,700 limited partnership units** to its Chairman through the Dividend Reinvestment Plan - B. Francis Saul II, the Company's Chairman and CEO, and affiliated entities acquired **6,110 shares** of common stock and **179,700 limited partnership units** through the company's Dividend Reinvestment Plan[207](index=207&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications, a schedule of portfolio properties, and financial statements - The report includes certifications from the CEO and CFO, a schedule of portfolio properties, and financial statements formatted in Inline XBRL as exhibits[211](index=211&type=chunk)

Earnings Release and Operating Results [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) For the second quarter of 2025, Saul Centers reported a 5.8% increase in total revenue year-over-year, though net income and Funds from Operations (FFO) declined significantly due to initial operating costs of the new Twinbrook Quarter Phase I project being expensed rather than capitalized, and lower lease termination fees impacting same property results Q2 2025 vs Q2 2024 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $70.8 million | $66.9 million | +5.8% | | Net Income | $14.2 million | $19.5 million | -27.2% | | Net Income per Share (Diluted) | $0.33 | $0.48 | -31.3% | | FFO per Share (Diluted) | $0.73 | $0.83 | -12.0% | - The initial operations of Twinbrook Quarter Phase I adversely impacted Q2 2025 net income by **$5.4 million**, of which **$3.5 million** was a reduction in capitalized interest, negatively impacting diluted EPS by **$0.12**[4](index=4&type=chunk) Q2 2025 Same Property Performance vs Q2 2024 | Metric | Q2 2025 vs Q2 2024 | Primary Driver | | :--- | :--- | :--- | | Same Property Revenue | -2.2% (-$1.5 million) | $2.0 million lower lease termination fees | | Same Property NOI | -4.3% (-$2.2 million) | $2.1 million lower lease termination fees | [Year-to-Date 2025 Financial Highlights](index=2&type=section&id=Year-to-Date%202025%20Financial%20Highlights) For the six months ended June 30, 2025, total revenue grew compared to the prior year, but net income and FFO decreased due to an $11.6 million adverse impact from Twinbrook Quarter Phase I's initial operations, and same property net operating income declined primarily from lower lease termination fees Six Months 2025 vs 2024 Key Financial Metrics | Metric | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $142.7 million | $133.6 million | +6.8% | | Net Income | $27.0 million | $37.8 million | -28.6% | | Net Income per Share (Diluted) | $0.62 | $0.93 | -33.3% | | FFO per Share (Diluted) | $1.44 | $1.63 | -11.7% | - The initial operations of Twinbrook Quarter Phase I adversely impacted net income for the six-month period by **$11.6 million**, including a **$7.1 million** reduction in capitalized interest, resulting in a negative impact of **$0.26** per diluted share[9](index=9&type=chunk) Six Months 2025 Same Property Performance vs 2024 | Metric | Six Months 2025 vs 2024 | Primary Driver | | :--- | :--- | :--- | | Same Property Revenue | +0.2% (+$0.3 million) | N/A | | Same Property NOI | -2.4% (-$2.4 million) | $2.3 million lower lease termination fees | [Portfolio and Operations Update](index=1&type=section&id=Portfolio%20and%20Operations%20Update) The company is actively leasing its new Twinbrook Quarter Phase I development, with anchor tenant Wegmans commencing operations on June 25, 2025, and residential occupancy reaching 86.1% by early August, while overall portfolio lease rates saw a slight year-over-year decline in both commercial and residential segments - At the new Twinbrook Quarter Phase I development, Wegmans began operations on June 25, 2025, and as of August 4, 2025, 389 of the 452 residential units (**86.1%**) were leased and occupied[3](index=3&type=chunk) Portfolio Lease Percentage (as of June 30) | Portfolio | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Commercial | 94.0% | 95.8% | | Residential (ex. Twinbrook) | 99.0% | 99.4% | [Company Overview](index=2&type=section&id=Company%20Overview) Saul Centers, Inc. is a self-managed equity REIT based in Bethesda, Maryland, with a portfolio of 62 properties, primarily community shopping centers and mixed-use assets totaling approximately 10.2 million square feet of leasable area, heavily concentrated in the metropolitan Washington, D.C./Baltimore area, which generates over 85% of its property net operating income - The company operates and manages a real estate portfolio of **62 properties**, including **50 community and neighborhood shopping centers** and **eight mixed-use properties**[12](index=12&type=chunk) - Over **85%** of the company's property net operating income is generated by properties located in the metropolitan Washington, D.C./Baltimore area[12](index=12&type=chunk) Financial Statements [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased slightly to $2.14 billion from $2.13 billion at year-end 2024, driven by construction in progress, while total liabilities grew to $1.65 billion from $1.63 billion due to increased borrowings, resulting in a decrease in total equity from $501.1 million to $488.3 million Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate investments, net | $2,047,907 | $2,024,305 | | Total assets | $2,139,684 | $2,126,404 | | Total liabilities | $1,651,410 | $1,625,280 | | Total equity | $488,274 | $501,124 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The statements of operations detail a decline in profitability for both the three and six-month periods ending June 30, 2025, as increased total revenues were more than offset by a significant rise in total expenses, particularly interest expense and depreciation, leading to lower net income compared to prior-year periods Statement of Operations Summary (in thousands) | | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $70,834 | $66,943 | $142,690 | $133,635 | | Total expenses | $56,773 | $47,634 | $115,781 | $96,063 | | Net income | $14,181 | $19,490 | $27,029 | $37,753 | | Net income available to common stockholders | $7,921 | $11,649 | $14,922 | $22,481 | | Basic and diluted EPS | $0.33 | $0.48 | $0.62 | $0.93 | Non-GAAP Reconciliations [Reconciliation of Net Income to FFO](index=6&type=section&id=Reconciliation%20of%20Net%20Income%20to%20FFO) This section reconciles GAAP Net Income to the non-GAAP measure of Funds from Operations (FFO), showing that after adjusting for real estate depreciation and gains on property disposition, FFO available to common stockholders and noncontrolling interests decreased to $25.4 million ($0.73 per share) in Q2 2025 from $28.5 million ($0.83 per share) in Q2 2024 FFO Reconciliation Summary (in thousands, except per share) | | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $14,181 | $19,490 | $27,029 | $37,753 | | FFO | $28,159 | $31,310 | $55,530 | $61,602 | | FFO available to common stockholders | $25,360 | $28,511 | $49,933 | $56,005 | | Basic and diluted FFO per share | $0.73 | $0.83 | $1.44 | $1.63 | [Reconciliation to Same Property Revenue](index=7&type=section&id=Reconciliation%20to%20Same%20Property%20Revenue) This reconciliation adjusts total revenue to show performance for a consistent set of properties, excluding the impact of recent development, revealing a 2.2% decrease in same property revenue in Q2 2025 driven by the Shopping Centers portfolio, while the six-month period saw a slight 0.2% increase supported by Mixed-Use properties Same Property Revenue by Period (in thousands) | | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total same property revenue | $65,998 | $67,480 | $134,198 | $133,914 | | Shopping Centers | $45,578 | $47,372 | $93,576 | $94,127 | | Mixed-Use properties | $20,420 | $20,108 | $40,622 | $39,787 | [Reconciliation to Same Property Net Operating Income (NOI)](index=9&type=section&id=Reconciliation%20to%20Same%20Property%20Net%20Operating%20Income%20(NOI)) This section reconciles GAAP Net Income to Same Property Net Operating Income (NOI), a key REIT performance metric, which decreased by 4.3% in Q2 2025 and 2.4% for the six-month period, primarily due to weaker performance in the Shopping Center portfolio not fully offset by modest growth in the Mixed-Use portfolio Same Property NOI by Period (in thousands) | | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total same property NOI | $48,063 | $50,216 | $96,084 | $98,481 | | Shopping Centers | $35,296 | $37,419 | $70,569 | $73,211 | | Mixed-Use properties | $12,767 | $12,797 | $25,515 | $25,270 | Safe Harbor Statement [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The company provides a standard safe harbor statement, cautioning investors that forward-looking statements are subject to various risks and uncertainties, referencing detailed risk factors in its Form 10-K, including tenant ability to pay rent, reliance on anchor tenants, financing and interest rate risks, development activities, and cybersecurity threats - The company claims protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995[14](index=14&type=chunk) - Key risks cited include: tenant ability to pay rent, reliance on anchor tenants, financing risks like interest rate increases, development activities, access to capital, and cybersecurity[14](index=14&type=chunk)