Saul Centers(US:BFS)2020-02-27 21:51Development Projects - Saul Centers focuses on diversification through the development of transit-centric, residential mixed-use projects in the Washington, D.C. metropolitan area[10]. - The company has a development pipeline for up to 3,700 apartment units and 975,000 square feet of retail and office space, with projects located adjacent to red line Metro stations[20]. - The Waycroft project, nearing substantial completion, includes 491 apartment units and 60,000 square feet of retail space[20]. - The total cost of The Waycroft project is expected to be approximately $275.0 million, with $157.0 million financed by a construction-to-permanent loan[33]. - Approximately 90% of the planned retail space at The Waycroft has been leased, including a 41,500 square foot Target[33]. - The Company plans to develop up to 366 apartment units and 10,300 square feet of retail space at a recently acquired property in Bethesda, Maryland[35]. - The Company has completed development plans for a property in Bethesda, Maryland, for up to 366 apartment units and 10,300 square feet of retail space[35]. - The Twinbrook Quarter development plan includes an 80,000 square foot Wegmans grocery store, 460 residential units, and 237,000 square feet of office space[35]. - The total development potential of the combined 18.4-acre site at Twinbrook is 1,865 residential units, 473,000 square feet of retail space, and 431,000 square feet of office space[35]. Financial Management - The company intends to maintain a total debt to total asset value ratio of 50% or less, with current debt levels believed to be below this threshold as of December 31, 2019[26][27]. - The Company intends to finance future acquisitions and developments through various sources, including undistributed operating cash flow and secured bank borrowings[28]. - The Company has policies in place to repurchase its common stock and may engage in such activities in the future[29]. - The Company is subject to competition from various investors, which may impact property acquisition and leasing terms[30]. - The Company does not currently invest in real estate mortgages but may do so at the discretion of the Board of Directors[23]. Property Management - Management actively manages its property portfolio to optimize tenant mix and increase cash flow, with a focus on strategic leasing and tenant selection[19]. - The company plans to replace underperforming tenants with strong traffic generators, including the addition of a 69,000 square foot Giant Food and a 36,000 square foot LA Fitness[20]. - Management believes that the characteristics of cleanliness, lighting, and security are crucial for community and neighborhood shopping centers[19]. - The Company emphasizes long-term property maintenance and periodic renovations to ensure attractiveness and security of its Shopping Centers[19]. - Management will consider various factors for redevelopment and acquisition, including location, community demographics, and potential for capital appreciation[22]. Leasing and Occupancy - The Company has signed leases or leases under negotiation for 12 pad sites within its core portfolio, expected to be operational by late 2021[20]. - The Company has executed leases for approximately 79% of the small shop expansion at Burtonsville Town Square, with a total development cost of approximately $5.7 million[33]. - Ashbrook Marketplace, an 86,000 square foot shopping center, is 100% leased as of February 2020, with a 29,000 square foot Lidl grocery store opened in November 2019[35]. - The fitness center at Broadlands Village is projected to open by March 2020, following the lease with LA Fitness[33]. Environmental Considerations - The Company requires environmental studies for properties that may have environmental hazards prior to acquisition[32].