BETHESDA, Md., April 26 /PRNewswire-FirstCall/ -- Saul Centers,
Inc. (NYSE:BFS), an equity real estate investment trust (REIT),
announced its operating results for the quarter ended March 31,
2006. Total revenues for the quarter ended March 31, 2006 increased
10.4% to $33,467,000 compared to $30,307,000 for the 2005 quarter.
Operating income, defined as net income available to common
stockholders before minority interests and preferred stock
dividends, increased 10.1% to $9,509,000 compared to $8,639,000 for
the comparable 2005 quarter. Net income available to common
stockholders was $5,707,000 or $0.33 per diluted share for the 2006
quarter, a per share increase of 17.9% compared to net income
available to common stockholders of $4,610,000 or $0.28 per diluted
share for the 2005 quarter. Successful leasing activity at several
core shopping centers and operating income from developments
completed during the trailing twelve months produced the
significant portion of increased operating income for the 2006
first quarter. Same property revenues for the total portfolio
increased 4.5% for the 2006 first quarter compared to the same
quarter in 2005 and same property operating income increased 4.6%.
Same property operating income in the shopping center portfolio
increased 6.4% for the 2006 first quarter compared to the prior
year's quarter. Same property operating income in the office
portfolio was unchanged for the 2006 quarter. Successful leasing
activity at several core shopping centers was the primary
contributor to the improvement in same property results. 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. As of March 31, 2006, 96.8% of the
operating portfolio was leased, compared to 92.4% a year earlier.
The 2005 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, 96.8% of the portfolio
was leased, compared to the prior year level of 93.9%. The increase
in 2006 leasing percentage resulted from the lease-up of space at
Great Eastern Plaza, Southside Plaza and Olde Forte Village and to
a lesser extent, improved leasing at several other properties.
Funds From Operations (FFO) available to common shareholders (after
deducting preferred stock dividends) increased 13.3% to $13,885,000
in the 2006 first quarter compared to $12,254,000 for the same
quarter in 2005. The $1,631,000 increase in FFO available to common
shareholders in the 2006 quarter resulted primarily from increased
operating income from successful leasing activity at several core
shopping centers and operating income from new developments. On a
diluted per share basis, FFO available to common shareholders
increased 10.7% to $0.62 per share in 2006 compared to $0.56 for
the 2005 quarter. FFO, a widely accepted non-GAAP financial measure
of operating performance for real estate investment trusts, is
defined as net income plus minority interests, extraordinary items
and real estate depreciation and amortization, excluding gains and
losses from property sales. Saul Centers is a self-managed,
self-administered equity real estate investment trust headquartered
in Bethesda, Maryland. Saul Centers currently operates and manages
a real estate portfolio of 45 community and neighborhood shopping
center and office properties totaling approximately 7.6 million
square feet of leasable area. Over 80% of the Company's cash flow
is generated from properties in the metropolitan Washington,
DC/Baltimore area. Saul Centers, Inc. Condensed Consolidated
Balance Sheets ($ in thousands) March 31, December 31, 2006 2005
Assets (Unaudited) Real estate investments Land $145,760 $139,421
Buildings 595,728 575,504 Construction in progress 50,376 47,868
791,864 762,793 Accumulated depreciation (200,267) (195,376)
591,597 567,417 Cash and cash equivalents 7,754 8,007 Accounts
receivable and accrued income, net 23,505 23,410 Lease acquisition
costs, net 20,212 19,834 Prepaid expenses 2,293 2,540 Deferred debt
costs, net 5,916 5,875 Other assets 6,918 4,386 Total assets
$658,195 $631,469 Liabilities Mortgage notes payable $490,519
$471,931 Revolving credit facility 10,500 10,500 Dividends and
distributions payable 11,379 11,319 Accounts payable, accrued
expenses and other liabilities 17,818 13,679 Deferred income 10,601
9,558 Total liabilities 540,817 516,987 Minority Interests 4,606
3,068 Stockholders' Equity Preferred stock 100,000 100,000 Common
stock 170 169 Additional paid in capital 126,115 123,339
Accumulated deficit (113,513) (112,094) Total stockholders' equity
112,772 111,414 Total liabilities and stockholders' equity $658,195
$631,469 Saul Centers, Inc. Condensed Consolidated Statements of
Operations (In thousands, except per share amounts) Three Months
Ended March 31, 2006 2005 Revenue (Unaudited) Base rent $26,900
$24,132 Expense recoveries 5,513 4,980 Percentage rent 326 504
Other 728 691 Total revenue 33,467 30,307 Operating Expenses
Property operating expenses 3,968 3,773 Provision for credit losses
80 54 Real estate taxes 3,052 2,583 Interest expense and deferred
debt amortization 8,019 7,409 Depreciation and amortization 6,376
5,615 General and administrative 2,463 2,234 Total operating
expenses 23,958 21,668 Operating Income 9,509 8,639 Minority
Interests (1,802) (2,029) Net Income 7,707 6,610 Preferred
Dividends (2,000) (2,000) Net Income Available to Common
Stockholders $5,707 $4,610 Per Share Net Income Available to Common
Stockholders: Basic $0.34 $0.28 Diluted $0.33 $0.28 Weighted
Average Common Stock Outstanding: Common stock 16,911 16,468 Effect
of dilutive options 152 89 Diluted weighted average common stock
17,063 16,557 Saul Centers, Inc. Supplemental Information (In
thousands, except per share amounts) Three Months Ended March 31,
2006 2005 Reconciliation of Net Income to (Unaudited) Funds From
Operations (FFO) (1) Net Income $7,707 $6,610 Add: Real property
depreciation & amortization 6,376 5,615 Add: Minority interests
1,802 2,029 FFO 15,885 14,254 Less: Preferred dividends (2,000)
(2,000) FFO available to common shareholders $13,885 $12,254
Weighted Average Shares Outstanding: Diluted weighted average
common stock 17,063 16,557 Convertible limited partnership units
5,347 5,201 Diluted & converted weighted average shares 22,410
21,758 Per Share Amounts: FFO available to common shareholders
$0.62 $0.56 Reconciliation of Net Income to Same Property Operating
Income Net Income $7,707 $6,610 Add: Interest expense and deferred
debt amortization 8,019 7,409 Add: Depreciation and amortization
6,376 5,615 Add: General and administrative 2,463 2,234 Less:
Interest income (67) (140) Add: Minority interests 1,802 2,029
Property operating income 26,300 23,757 Less: Acquisitions &
developments (1,584) (95) Less: Lexington Mall (19) (56) Total same
property operating income $24,697 $23,606 Total Shopping Centers
$18,045 $16,958 Total Office Properties 6,652 6,648 Total same
property operating income $24,697 $23,606 (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.
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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