Saul Centers(US:BFS)2025-05-08 20:20Financial Performance - Net income for the three months ended March 31, 2025, decreased to $12.8 million from $18.3 million for the same period in 2024, primarily due to a $6.5 million adverse impact from the initial operations of Twinbrook Quarter Phase I[114]. - Total revenue increased by 7.7% to $71.856 million in the 2025 Quarter compared to $66.692 million in the 2024 Quarter[115]. - Total expenses increased by 21.8% in the 2025 Quarter compared to the 2024 Quarter, primarily due to initial operations of Twinbrook Quarter Phase I, which generated $8.6 million of expenses[118]. - Funds From Operations (FFO) available to common stockholders for the 2025 Quarter totaled $24.6 million, a decrease of 10.6% compared to the 2024 Quarter, primarily impacted by initial operations of Twinbrook Quarter Phase I[158]. - Net cash provided by operating activities was $30.4 million for the 2025 Quarter, down from $33.8 million in the 2024 Quarter[137]. Revenue and Rent - Base rent rose by $4.456 million, or 8.4%, to $57.554 million in the 2025 Quarter, driven by higher commercial and residential rents[115]. - Same property revenue for the 2025 Quarter was $68.2 million, an increase of $1.8 million compared to the 2024 Quarter, mainly due to higher expense recoveries of $1.3 million and higher base rent of $1.2 million[129]. - Average base rent per square foot increased to $22.24 in Q1 2025, up 5.5% from $21.08 in Q1 2024[165]. - Effective rent per square foot rose to $20.60 in Q1 2025, reflecting a 5.6% increase from $19.50 in Q1 2024[165]. - The average annualized base rent for new leases in Q1 2025 was $36.67 per square foot, while renewed leases averaged $21.59 per square foot[170]. Development Projects - The Company has a pipeline for the development of up to 3,200 apartment units and 870,000 square feet of retail and office space in the Washington, DC metropolitan area[102]. - The Company is developing Twinbrook Quarter Phase I, which includes 452 apartment units and an 80,000 square foot Wegmans supermarket, with a remaining investment not expected to exceed $11.7 million[107]. - The Hampden House project is expected to include up to 366 apartment units and 10,100 square feet of retail space, with a remaining investment not expected to exceed $28.9 million[108]. - The Company is also developing Twinbrook Quarter Phase I, which includes 452 apartment units, an 80,000 square foot Wegmans supermarket, and 230,000 square feet of office space, with a remaining investment not expected to exceed $11.7 million[143]. - The Company is also developing Hampden House, which will include up to 366 apartment units and 10,100 square feet of retail space, with a remaining investment not expected to exceed $28.9 million[144]. Debt and Financing - As of March 31, 2025, the Company's outstanding debt totaled approximately $1.56 billion, with a weighted average remaining term of 8.5 years[106]. - The Company maintains a total debt to total estimated asset market value ratio of under 50%, allowing for additional secured borrowings if necessary[106]. - The Company has availability of approximately $132.4 million under its Credit Facility as of March 31, 2025[106]. - The Company has a $525.0 million Credit Facility, with $296.0 million outstanding as of March 31, 2025, and approximately $132.4 million available under the facility[151]. - The Company maintains a debt to total estimated asset market value ratio of 50% or less, and as of March 31, 2025, this ratio was below 50%[149]. Leasing and Occupancy - The commercial leasing percentage decreased to 94.0% at March 31, 2025, from 94.6% at March 31, 2024[105]. - As of March 31, 2025, 93.9% of the commercial portfolio was leased, down from 94.6% in the previous year[166]. - The Residential portfolio was 99.3% leased as of March 31, 2025, compared to 98.7% in the previous year[178]. - Approximately 149,083 square feet of leased space, representing 1.7% of total commercial square footage, is expected to generate an additional $4.2 million in annualized base rent upon tenant occupancy[166]. - The total annual base rent under expiring leases for Shopping Centers in 2025 is projected to be $12,012,980, representing 8.2% of total annual base rent[172]. Expenses - Property operating expenses rose by 30.3% in the 2025 Quarter compared to the 2024 Quarter, driven by higher repairs and maintenance expenses of $2.0 million and operations of Twinbrook Quarter Phase I costing $1.1 million[119]. - Interest expense, net and amortization of deferred debt costs increased by 34.5% in the 2025 Quarter, primarily due to initial operations of Twinbrook Quarter Phase I costing $4.8 million and higher average outstanding debt[120]. - Depreciation and amortization of deferred leasing costs increased by 20.7% in the 2025 Quarter, primarily due to $2.2 million of depreciation expense related to Twinbrook Quarter Phase I[121]. Cash and Liquidity - Cash and cash equivalents totaled $6.5 million at March 31, 2025, down from $7.1 million at March 31, 2024[136]. - Net cash used in investing activities decreased by $21.1 million, primarily due to decreased development expenditures of $24.0 million[139]. - The Company has no off-balance sheet arrangements that are likely to materially affect its financial condition[156]. Strategic Initiatives - The Company is evaluating acquisition and redevelopment opportunities to enhance net operating income and cash flow growth[161]. - The Company entered into two floating-to-fixed interest rate swap agreements to manage interest rate risk associated with $100.0 million of variable-rate debt[154]. - The Company has been involved in acquisition and redevelopment activities, focusing on enhancing net operating income and cash flow growth[161].