Saul Centers(US:BFS)2024-11-07 21:20Financial Performance - Net income for the third quarter of 2024 increased to $19.6 million, up from $16.7 million in the same quarter of 2023, representing a growth of approximately 17.4%[85]. - Total revenue for the three months ended September 30, 2024, increased by 5.5% to $67.288 million compared to $63.766 million in the same period of 2023[86]. - Net income for the nine months ended September 30, 2024, increased to $57.3 million from $51.6 million for the same period in 2023[88]. - Total revenue for the nine months ended September 30, 2024, increased by 5.5% to $200.923 million compared to $190.524 million in the same period of 2023[89]. - Funds From Operations (FFO) available to common stockholders for the 2024 Quarter totaled $28.9 million, an increase of 11.0% compared to the 2023 Quarter[114]. - FFO available to common stockholders for the nine months ended September 30, 2024, was $93,266,000, up from $87,790,000 in 2023, reflecting a growth of 6.3%[115]. Revenue and Rent Growth - Base rent for the three months ended September 30, 2024, rose by 4.2% to $54.332 million, driven by a $1.9 million increase in commercial base rent and a $0.3 million increase in residential base rent[86]. - Same property revenue for the three months ended September 30, 2024, increased by $3.5 million, or 5.5%, compared to the same period in 2023, primarily due to higher base rent, expense recoveries, and lease termination fees[96]. - The increase in same property revenue for the 2024 Period was $10.4 million, primarily due to higher base rent of $5.0 million[96]. - Average annualized base rent per square foot for commercial properties increased to $21.16 for the nine months ended September 30, 2024, from $20.75 in 2023, a change of 1.98%[120]. - The effective rent per square foot also rose to $19.57 in 2024, compared to $19.20 in 2023, marking an increase of 1.93%[120]. Expenses and Costs - Total expenses for the three months ended September 30, 2024, increased by 1.4% to $47.696 million from $47.055 million in the same period of 2023[87]. - Property operating expenses for the nine months ended September 30, 2024, increased by 10.2% to $30.312 million, primarily due to higher repairs and maintenance expenses[90]. - General and administrative expenses for the nine months ended September 30, 2024, increased by 8.9% to $17.565 million, attributed to higher marketing and leasing costs[92]. - Total expenses increased by 3.5% in the 2024 Period compared to the 2023 Period, reaching $143,759 thousand[90]. Development Projects - The company has a development pipeline that includes up to 3,700 apartment units and 975,000 square feet of retail and office space, primarily located near Metro stations in Montgomery County, Maryland[79]. - The total cost of the Twinbrook Quarter Phase I project is expected to be approximately $331.5 million, with $311.3 million already invested as of September 30, 2024[80]. - The Hampden House project in downtown Bethesda is expected to cost approximately $246.4 million, with $185.2 million invested to date[81]. - The development potential of the entire 18.4-acre Twinbrook Quarter site includes 1,865 residential units and 473,000 square feet of retail space[80]. Debt and Liquidity - The company's outstanding debt totaled approximately $1.51 billion as of September 30, 2024, with a weighted average remaining term of 8.7 years[79]. - The company maintains a total debt to total estimated asset market value ratio of under 50%, allowing for additional secured borrowings if necessary[79]. - The company has availability of approximately $172.6 million under its Credit Facility as of September 30, 2024[79]. - The Company was in compliance with all financial covenants as of September 30, 2024, including a leverage ratio of less than 60%[112]. - The Company expects to meet short-term liquidity requirements through cash provided from operations, available cash, and its existing line of credit[108]. Leasing and Occupancy - The commercial leasing percentage increased to 95.7% as of September 30, 2024, compared to 94.1% a year earlier, indicating improved occupancy rates[79]. - Approximately 96,200 square feet (91.6%) of the retail space in Twinbrook Quarter has been leased, with openings expected throughout 2025[80]. - The residential portfolio was 98.8% leased as of September 30, 2024, compared to 97.5% a year earlier[132]. - The leasing percentage at office mixed-use properties increased to 88.9% as of September 30, 2024, from 83.6% in 2023, showing improvement in this segment[124]. Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2024, was $92.4 million, compared to $85.0 million for the same period in 2023[104]. - Cash and cash equivalents totaled $7.2 million as of September 30, 2024, compared to $6.6 million as of September 30, 2023[103]. - The company reported a net decrease in cash and cash equivalents of $1.2 million for the nine months ended September 30, 2024, compared to a decrease of $6.7 million in the same period in 2023[104]. Stock and Incentives - The Company issued 43,452 shares under the Dividend Reinvestment Plan (DRIP) at a weighted average discounted price of $37.21 during the nine months ended September 30, 2024[110]. - The company granted 117,000 restricted shares to officers under the 2024 Stock Incentive Plan, with an estimated future expense of approximately $3.0 million related to unvested restricted stock grants[117].