BETHESDA, Md., Feb. 22 /PRNewswire-FirstCall/ -- Saul Centers, Inc.
(NYSE:BFS), an equity real estate investment trust (REIT),
announced its operating results for the quarter and year ended
December 31, 2005. Total revenues for the quarter ended December
31, 2005 increased 10.8% to $32,774,000 compared to $29,569,000 for
the 2004 quarter. Operating income, defined as net income available
to common stockholders before minority interests and preferred
stock dividends increased 18.0% to $9,740,000 compared to
$8,256,000 for the comparable 2004 quarter. Net income available to
common stockholders was $5,890,000 or $0.35 per diluted share for
the 2005 quarter, a per share increase of 34.6% compared to net
income available to common stockholders of $4,228,000 or $0.26 per
diluted share for the 2004 quarter. Acquisitions and developments
completed during the trailing twelve months produced the
significant portion of increased operating income for the 2005
fourth quarter. Same property revenues for the total portfolio
increased 4.4% for the 2005 fourth quarter compared to the same
quarter in 2004 and same property operating income increased 2.8%.
The same property comparisons exclude the results of operations of
properties not in operation for each of the comparable reporting
periods. Additionally, Lexington Mall results are not included in
same property performance due to the planned redevelopment of the
center. Property operating income is calculated as total property
revenue less property operating expenses, provision for credit
losses and real estate taxes. Same property operating income in the
shopping center portfolio increased 3.2% for the 2005 fourth
quarter compared to the prior year's quarter. Same property
operating income in the office portfolio grew 1.8% for the 2005
quarter. For the year ended December 31, 2005, total revenues
increased 12.6% to $127,015,000 compared to $112,842,000 for the
2004 year. Operating income before gain on property sold, minority
interests and preferred stock dividends increased 9.8% to
$37,025,000 compared to $33,707,000 for the 2004 year. Net income
available to common stockholders was $21,227,000 or $1.27 per
diluted share for the 2005 year, resulting in a per share increase
of 13.4% compared to net income available to common stockholders of
$18,174,000 or $1.12 per diluted share for the 2004 year.
Acquisitions and developments completed during 2004 and 2005
produced the significant portion of increased operating income for
the 2005 year. Same property revenues for the total portfolio
increased 3.4% for the 2005 year compared to the 2004 year and same
property operating income increased 2.3%. Same property operating
income in the shopping center portfolio increased 2.6% and same
property operating income in the office portfolio grew 1.6% for the
2005 year. As of December 31, 2005, 97.1% of the operating
portfolio was leased, compared to 93.9% a year earlier. The 2004
leasing percentage was adversely impacted by 133,000 square feet of
vacant space in the Lexington Mall which the Company was not
leasing in anticipation of redeveloping the shopping center. Since
September 30, 2005, the Company has been actively planning the
redevelopment of the property and has taken the space out of
service. On a same property basis, 96.9% of the portfolio was
leased, compared to the prior year level of 95.7%. The increase in
2005 leasing percentage resulted from the lease-up of space at Olde
Forte Village and Southside Plaza and to a lesser extent, the full
lease-up of Washington Square. Funds From Operations (FFO)
available to common shareholders (after deducting preferred stock
dividends) increased 12.8% to $13,628,000 in the 2005 fourth
quarter compared to $12,084,000 for the same quarter in 2004. The
$1,544,000 increase in FFO available to common shareholders in the
2005 quarter resulted primarily from increased operating income
from retail acquisition and development properties. On a diluted
per share basis, FFO available to common shareholders increased
8.9% to $0.61 per share in 2005 compared to $0.56 for the 2004
quarter. FFO available to common shareholders for the 2005 year
increased by $6,191,000 (13.2%) to $53,222,000 primarily due to
increased operating income from retail acquisition and development
properties and to a lesser extent, the resolution of the Lexington
Mall land use dispute during the third quarter. Diluted per share
FFO available to common shareholders increased 10.0% to $2.42 per
share in 2005 compared to $2.20 for the 2004 year. FFO, a widely
accepted non-GAAP financial measure of operating performance for
real estate investment trusts, is defined as net income plus
minority interests, extraordinary items and real estate
depreciation and amortization, excluding gains and losses from
property sales. During 2005, the Company paid four quarterly
dividends totaling $1.60 per share on its common stock. On January
31, 2006, the Company paid a quarterly common stock dividend of
$0.42 per share, an annualized dividend rate of $1.68 per share.
Also during 2005, the Company acquired three grocery anchored
shopping centers totaling 370,000 square feet, and completed the
construction and lease-up of three neighborhood shopping center
developments totaling 180,000 square feet. Saul Centers is a
self-managed, self-administered equity real estate investment trust
headquartered in Bethesda, Maryland. Saul Centers currently
operates and manages a real estate portfolio of 45 community and
neighborhood shopping center and office properties totaling
approximately 7.6 million square feet of leasable area. Over 80% of
the Company's cash flow is generated from properties in the
metropolitan Washington, DC/Baltimore area. Saul Centers, Inc.
Condensed Consolidated Balance Sheets ($ in thousands) December 31,
December 31, 2005 2004 Assets (Unaudited) Real estate investments
Land $139,421 $119,029 Buildings 575,504 521,161 Construction in
progress 47,868 42,618 762,793 682,808 Accumulated depreciation
(195,376) (181,420) 567,417 501,388 Cash and cash equivalents 8,007
33,561 Accounts receivable and accrued income, net 23,410 20,654
Lease acquisition costs, net 19,834 17,745 Prepaid expenses 2,540
2,421 Deferred debt costs, net 5,875 5,011 Other assets 4,386 2,616
Total assets $631,469 $583,396 Liabilities Mortgage notes payable
$471,931 $453,646 Revolving credit facility 10,500 - Dividends and
distributions payable 11,319 10,424 Accounts payable, accrued
expenses and other liabilities 13,679 12,318 Deferred income 9,558
6,044 Total liabilities 516,987 482,432 Minority Interests 3,068 -
Stockholders' Equity Preferred stock 100,000 100,000 Common stock
169 164 Additional paid in capital 123,339 106,886 Accumulated
deficit (112,094) (106,086) Total stockholders' equity 111,414
100,964 Total liabilities and stockholders' equity $631,469
$583,396 Saul Centers, Inc. Condensed Consolidated Statements of
Operations (In thousands, except per share amounts) Three Months
Ended Year Ended December 31, December 31, 2005 2004 2005 2004
Revenue (Unaudited) (Unaudited) Base rent $25,784 $23,774 $99,448
$91,125 Expense Recoveries 5,343 4,352 20,027 16,712 Percentage
Rent 639 491 2,057 1,635 Other 1,008 952 5,483 3,370 Total revenue
32,774 29,569 127,015 112,842 Operating Expenses Property operating
expenses 4,031 3,122 14,724 12,070 Provision for credit losses 54
189 237 488 Real estate taxes 2,870 2,585 11,040 9,789 Interest
expense and deferred debt amortization 7,658 7,114 30,207 27,022
Depreciation and amortization 5,888 5,828 24,197 21,324 General and
administrative 2,533 2,475 9,585 8,442 Total operating expenses
23,034 21,313 89,990 79,135 Operating Income 9,740 8,256 37,025
33,707 Gain on Property Disposition - - - 572 Minority Interests
(1,850) (2,028) (7,798) (8,105) Net Income 7,890 6,228 29,227
26,174 Preferred Dividends (2,000) (2,000) (8,000) (8,000) Net
Income Available to Common Stockholders $5,890 $4,228 $21,227
$18,174 Per Share Net Income Available to Common Stockholders:
Basic $0.35 $0.26 $1.27 $1.13 Diluted $0.35 $0.26 $1.27 $1.12
Weighted Average Common Stock Outstanding: Common stock 16,840
16,352 16,663 16,154 Effect of dilutive options 119 100 107 57
Diluted weighted average common stock 16,959 16,452 16,770 16,211
Saul Centers, Inc. Supplemental Information (In thousands, except
per share amounts) Three Months Ended Year Ended December 31,
December 31, 2005 2004 2005 2004 Reconciliation of Net Income to
Funds From Operations (FFO)(1) (Unaudited) (Unaudited) Net Income
$7,890 $6,228 $29,227 $26,174 Less: Gain on sale of property - - -
(572) Add: Real property depreciation & amortization 5,888
5,828 24,197 21,324 Add: Minority interests 1,850 2,028 7,798 8,105
FFO 15,628 14,084 61,222 55,031 Less: Preferred dividends (2,000)
(2,000) (8,000) (8,000) FFO available to common shareholders
$13,628 $12,084 $53,222 $47,031 Weighted Average Shares
Outstanding: Diluted weighted average common stock 16,959 16,452
16,770 16,211 Convertible limited partnership units 5,291 5,198
5,233 5,194 Diluted & converted weighted average shares 22,250
21,650 22,003 21,405 Per Share Amounts: FFO available to common
shareholders $0.61 $0.56 $2.42 $2.20 Reconciliation of Net Income
to Same Property Operating Income Net Income $7,890 $6,228 $29,227
$26,174 Add: Interest expense and deferred debt amortization 7,658
7,114 30,207 27,022 Add: Depreciation and amortization 5,888 5,828
24,197 21,324 Add: General and administrative 2,533 2,475 9,585
8,442 Less: Gain on property disposition - - - (572) Less: Interest
income (140) (82) (661) (257) Add: Minority interests 1,850 2,028
7,798 8,105 Property operating income 25,679 23,591 100,353 90,238
Less: Acquisitions & developments (1,745) (321) (12,418)
(6,101) Less: Lexington property operating income (41) (24) (1,966)
(101) Total same property operating income $23,893 $23,246 $85,969
$84,036 Total Shopping Centers $17,050 $16,521 $58,987 $57,479
Total Office Properties 6,843 6,725 26,982 26,557 Total same
property operating income $23,893 $23,246 $85,969 $84,036 (1) FFO
is a widely accepted non-GAAP financial measure of operating
performance of real estate investment trusts ("REITs"). FFO is
defined by the National Association of Real Estate Investment
Trusts as net income, computed in accordance with GAAP, plus
minority interests, extraordinary items and real estate
depreciation and amortization, excluding gains or losses from
property sales. FFO does not represent cash generated from
operating activities in accordance with GAAP and is not necessarily
indicative of cash available to fund cash needs, which is disclosed
in the Consolidated Statements of Cash Flows in the Company's SEC
reports for the applicable periods. FFO should not be considered as
an alternative to net income, its most directly comparable GAAP
measure, as an indicator of the Company's operating performance, or
as an alternative to cash flows as a measure of liquidity.
Management considers FFO a supplemental measure of operating
performance and along with cash flow from operating activities,
financing activities and investing activities, it provides
investors with an indication of the ability of the Company to incur
and service debt, to make capital expenditures and to fund other
cash needs. FFO may not be comparable to similarly titled measures
employed by other REITs. First Call Analyst: FCMN Contact:
DATASOURCE: Saul Centers, Inc. CONTACT: Scott V. Schneider of Saul
Centers, Inc., +1-301-986-6220 Web site:
http://www.saulcenters.com/
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