Saul Centers(BFS) - 2021 Q1 - Quarterly Report

Financial Performance - The Company reported a 3.1% increase in total revenue for the three months ended March 31, 2021, totaling $58.724 million compared to $56.943 million in the same period of 2020[127]. - Net income for the three months ended March 31, 2021, was $12,795,000, a decrease of 23.8% from $16,829,000 in 2020[160]. - Funds From Operations (FFO) for the 2021 Quarter totaled $22.7 million, a decrease of 10.1% compared to the 2020 Quarter[159]. - Same property revenue for the three months ended March 31, 2021, was $55.551 million, a decrease of 2.5% from $56.943 million in 2020[140]. - Same property operating income for the same period was $40.533 million, down 5.2% from $42.754 million in 2020[142]. Leasing and Rent Collection - The company reported a 96% collection rate for the first quarter of 2021, with 95% for retail, 97% for office, and 99% for residential tenants[93]. - The company's commercial leasing percentage decreased to 92.2% as of March 31, 2021, down from 96.3% a year earlier[105]. - Rent deferral agreements executed for the first quarter of 2021 comprised approximately 0.2% of total billings, with none involving anchor/national tenants[96]. - The average monthly rent per square foot for new or renewed apartment leases decreased to $3.18 from $3.53 during the three months ended March 31, 2021[171]. - The average base rent for expiring leases was $23.89 per square foot, while the estimated market base rent was $22.68 per square foot[173]. Development and Acquisition - The company has a pipeline for the development of up to 3,700 apartment units and 975,000 square feet of retail and office space adjacent to red line Metro stations in Montgomery County, Maryland[102]. - The Company completed The Waycroft project, consisting of 491 apartment units and 60,000 square feet of retail space, with a total cost of approximately $279.0 million[111]. - The Twinbrook Quarter site has a development potential of 1,865 residential units and 473,000 square feet of retail space, with site plan approval received in August 2020[118]. - The company acquired an office building and land for $35.5 million and $4.5 million, respectively, funded through its revolving credit facility[113]. - The redevelopment plan for Hampden House includes up to 366 apartment units and 10,300 square feet of retail space, with construction timing dependent on market conditions and permit approvals[113]. Financial Position and Liquidity - As of April 30, 2021, the company had $10.0 million in cash and cash equivalents, with approximately $212.8 million available under its unsecured revolving credit facility[97]. - As of March 31, 2021, the Company maintained a total debt to total asset ratio of under 50%, with $179.0 million in variable-rate debt outstanding under the credit facility[106]. - The Company has a $400 million credit facility, with approximately $220.8 million available under the revolving credit facility as of March 31, 2021[154]. - Management believes that the company's capital resources, including approximately $10.0 million in cash and $212.8 million in borrowing availability, provide sufficient liquidity to meet operational needs[150]. - The Company anticipates funding future developments and acquisitions through available cash, bank borrowings, and proceeds from its dividend reinvestment plan[149]. Impact of COVID-19 - The company anticipates that some tenants may not be able to pay amounts due, leading to potential losses against rent receivables[93]. - The Company expects the volume of lease renewals and rental rates in 2021 to be negatively impacted by the effects of COVID-19[105]. - Credit losses on operating lease receivables increased by $1.1 million in the 2021 Quarter compared to the 2020 Quarter, primarily due to increased reserves related to COVID-19 impacts[130]. - The Company has not identified any impairment triggering events related to COVID-19 as of March 31, 2021, but will continue to monitor for potential future impacts[92]. - Rent collections for April 2021 were at 93%, with 91% for retail, 94% for office, and 99% for residential[96]. Expenses and Costs - Total expenses rose by 14.5% in the 2021 Quarter, amounting to $45.9 million, up from $40.1 million in the 2020 Quarter[130]. - Property operating expenses increased by 23.5% to $8.7 million in the 2021 Quarter, driven by higher snow removal costs and the completion of The Waycroft[131]. - Interest expense, net and amortization of deferred debt costs increased by 25.0% to $12.0 million, primarily due to lower capitalized interest following The Waycroft's opening[132]. - Real estate taxes increased by 9.5% to $7.829 million, mainly due to the substantial completion of The Waycroft[132]. - The Company experienced a significant increase in credit losses on operating lease receivables, reporting a loss of $1.211 million in the 2021 Quarter compared to $130,000 in the 2020 Quarter[127].