Saul Centers, Inc. Reports Fourth Quarter 2024 Earnings

Core Insights - Saul Centers, Inc. reported total revenue of $67.9 million for the quarter ended December 31, 2024, an increase from $66.7 million in the same quarter of 2023, while net income decreased to $10.4 million from $17.5 million [1][2][7] Financial Performance - The company's net income for the 2024 Quarter was adversely impacted by $6.8 million due to the initial operations of Twinbrook Quarter Phase 1, which includes residential units and a supermarket [2][5] - Funds from operations (FFO) available to common stockholders decreased to $22.0 million, or $0.63 per share, compared to $26.9 million, or $0.79 per share, in the 2023 Quarter [5][9] - For the year ended December 31, 2024, total revenue increased to $268.8 million from $257.2 million in 2023, while net income decreased to $67.7 million from $69.0 million [7][9] Property Performance - Same property revenue decreased by $564,000, or 0.8%, and same property operating income decreased by $1.2 million, or 2.5%, for the 2024 Quarter compared to the 2023 Quarter [3][19] - The commercial portfolio was 95.2% leased as of December 31, 2024, up from 94.1% a year earlier, while the residential portfolio, excluding Twinbrook Quarter, was 98.3% leased compared to 98.0% in 2023 [6][11] Mixed-Use and Shopping Center Performance - Mixed-Use same property operating income increased by $0.6 million to $12.9 million for the 2024 Quarter, primarily due to higher residential base rent [3][20] - Shopping Center same property operating income totaled $35.3 million, a decrease of $1.8 million compared to the 2023 Quarter, mainly due to lower lease termination fees [3][19] Operational Metrics - As of December 31, 2024, the company operated a real estate portfolio of 62 properties, including 50 shopping centers and eight mixed-use properties, with approximately 10.2 million square feet of leasable area [11][12] - The company experienced higher general and administrative costs of $1.2 million and higher credit losses on operating lease receivables of $0.8 million during the 2024 Period [7][10]