Saul Centers(BFS) - 2020 Q3 - Quarterly Report

Financial Performance - Total revenue for the 2020 Quarter was $56.76 million, a decrease of 0.5% compared to $57.05 million in the 2019 Quarter[142]. - Total revenue decreased by 4.6% in the 2020 Period compared to the 2019 Period, totaling $166,923,000[150]. - Funds From Operations (FFO) available to common stockholders and noncontrolling interests for the 2020 Period totaled $67.8 million, a decrease of 9.8% compared to the 2019 Period[190]. - Net income for the three months ended September 30, 2020, was $11.6 million, down from $15.3 million in the same period of 2019[192]. - FFO for the three months ended September 30, 2020, was $25.3 million, compared to $27.3 million in the same period of 2019[192]. Tenant Payments and Rent Collection - As of November 3, 2020, approximately 83% of total billings for the second quarter and 91% for the third quarter have been paid by tenants[106][111]. - 90% of October 2020 total billings has been paid by tenants, with 88% for retail, 92% for office, and 99% for residential[110]. - 83% of 2020 second quarter total billings has been paid by tenants, with 79% for retail, 95% for office, and 100% for residential[111]. - 91% of 2020 third quarter total billings has been paid by tenants, with 89% for retail, 95% for office, and 100% for residential[111]. - The Company anticipates that some tenants may not be able to pay amounts due, leading to potential losses against rent receivables[106]. Development and Acquisition Activities - The Company has a development pipeline for up to 3,700 apartment units and 975,000 square feet of retail and office space, primarily located near Metro stations[117]. - The Company plans to focus future acquisition and development activities on transit-centric, primarily residential mixed-use properties in the Washington, D.C./Baltimore metropolitan area[123]. - The Company executed leases for approximately 90% of the planned retail space at The Waycroft, including a 41,500 square foot Target[125]. - The Company received unanimous approval for the Twinbrook Quarter development, which includes up to 460 residential units and 270,000 square feet of office space[133]. - The Company completed construction of a residential project at 750 N. Glebe Road in Arlington, Virginia, with a total cost of approximately $275.0 million, financed by a $157.0 million construction-to-permanent loan[178]. Financial Position and Liquidity - The Company had $40.6 million in cash and cash equivalents and approximately $200.3 million available under its unsecured revolving credit facility as of October 31, 2020[112]. - The company has approximately $200.3 million available under its $325.0 million unsecured revolving credit facility as of September 30, 2020[122]. - The company expects to meet short-term liquidity requirements through cash provided from operations and available cash, with a total cash balance of approximately $40.6 million as of October 31, 2020[180]. - The Company was in compliance with all financial covenants as of September 30, 2020, including a leverage ratio of less than 60%[186]. - The ratio of the Company's debt to total asset value was below 50% as of September 30, 2020, in line with its policy to maintain a ratio of total debt to total asset value of 50% or less[183]. Impact of COVID-19 - The Company continues to monitor the effects of COVID-19 on its operations and those of its tenants, with future developments remaining highly uncertain[113]. - Credit losses on operating lease receivables increased by $1.4 million in the 2020 Quarter, reflecting the impact of COVID-19 on tenant operations[141]. - Credit losses on operating lease receivables increased significantly to $4,162,000 in the 2020 Period, representing 2.49% of total revenue[153]. - Property operating expenses decreased by 7.9% to $20.9 million in the 2020 Period, primarily due to the deferral of nonessential property expenses related to COVID-19[157]. Leasing and Occupancy Rates - The company's commercial leasing percentage decreased to 93.9% as of September 30, 2020, down from 94.8% a year earlier[120]. - As of September 30, 2020, 94.0% of the Commercial portfolio was leased, down from 94.8% at September 30, 2019[196]. - The Residential portfolio was 73.9% leased as of September 30, 2020, compared to 97.9% at September 30, 2019, primarily due to the opening of The Waycroft[196]. - The Company has entered into 181 new or renewed apartment leases during the three months ended September 30, 2020, with an average monthly rent per square foot decreasing to $3.34 from $3.55[201]. Expenses and Cost Management - Total expenses increased by 8.2% in the 2020 Quarter compared to the 2019 Quarter, totaling $45,157,000[144]. - Total expenses for the 2020 Period increased by 2.0% compared to the 2019 Period, totaling $128,283,000[156]. - General and administrative expenses decreased by 6.2% to $13.8 million in the 2020 Period, due to reduced overhead expenses[160]. - Real estate taxes increased by 5.7% in the 2020 Quarter, reaching $7,523,000, mainly due to the substantial completion of The Waycroft[145]. - Interest expense, net and amortization of deferred debt costs rose by 20.1% in the 2020 Quarter, totaling $12,398,000, due to lower capitalized interest from The Waycroft opening[146].