BETHESDA, Md., May 3 /PRNewswire-FirstCall/ -- Saul Centers, Inc. (NYSE: BFS), an equity real
estate investment trust (REIT), announced its operating results for
the quarter ended March 31, 2010.
Total revenue for the three months ended March 31, 2010 ("2010 Quarter") increased 10.0%
to $43,648,000 compared to
$39,689,000 for the three months
ended March 31, 2009 ("2009
Quarter"). Operating income, which is net income available to
common stockholders before income attributable to the
noncontrolling interest and preferred stock dividends, increased
8.9% to $12,574,000 for the 2010
Quarter compared to $11,550,000 for
the 2009 Quarter. Net income available to common stockholders was
$6,768,000, or $0.37 per diluted share, for the 2010 Quarter
compared to net income available to common stockholders of
$5,956,000, or $0.33 per diluted share, for the 2009
Quarter.
Same property revenue for the total portfolio increased 8.6% for
the 2010 Quarter compared to the 2009 Quarter and same property
operating income increased 4.2%. The same property
comparisons exclude the results of operations of properties not in
operation for each of the comparable reporting quarters. Same
property operating income in the shopping center portfolio
increased 7.3% for the 2010 Quarter compared to the 2009 Quarter.
The primary cause of this increase was the collection of rents and
other past due charges from a former anchor tenant. Excluding this
one-time revenue, same property shopping center operating income
declined 1.3% from the prior year. Same property operating
income in the office portfolio decreased 5.7% for the 2010 Quarter
compared to the 2009 Quarter primarily due to a decrease in lease
termination fees.
As of March 31, 2010, 91.6% of the
operating portfolio was leased compared to 92.9% at March 31, 2009. On a same property basis,
92.7% of the portfolio was leased, compared to the prior year level
of 93.3%. The 2010 leasing percentages decreased due to a net
decrease of approximately 52,000 square feet of leased space, of
which approximately 30,000 square feet was attributable to Avenel
Business Park.
Funds from operations (FFO) available to common shareholders
(after deducting preferred stock dividends) increased 7.1% to
$15,862,000 in the 2010 Quarter
compared to $14,806,000 for the 2009
Quarter. On a diluted per share basis, FFO available to
common shareholders increased 4.7% to $0.67 per share for the 2010 Quarter compared to
$0.64 per share for the 2009 Quarter.
FFO, a widely accepted non-GAAP financial measure of
operating performance for REITs, is defined as net income plus real
estate depreciation and amortization, and excluding gains from
property dispositions and extraordinary items. FFO increased
in the 2010 Quarter primarily due to the collection of rents and
other past due charges from a former anchor tenant ($1,939,000 or $0.08
per diluted share) offset in part by a decline in property
operating income largely due to snow removal expense, net of tenant
recoveries, from severe winter storms impacting the Mid-Atlantic
region primarily in February 2010
(approximately $1,200,000 or
$0.05 per diluted share).
Saul Centers is a self-managed,
self-administered equity REIT headquartered in Bethesda, Maryland. Saul Centers currently operates and manages a
real estate portfolio of 52 community and neighborhood shopping
center and office properties totaling approximately 8.4 million
square feet of leasable area. Over 80% of the Company's
property operating income is generated from properties in the
metropolitan Washington,
DC/Baltimore area.
Saul Centers,
Inc.
|
|
Condensed
Consolidated Balance Sheets
|
|
($ in
thousands)
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2010
|
|
2009
|
|
Assets
|
(Unaudited)
|
|
|
|
|
Real estate investments
|
|
|
|
|
|
|
Land
|
$
223,286
|
|
$
223,193
|
|
|
|
Buildings and equipment
|
742,471
|
|
740,442
|
|
|
|
Construction in progress
|
165,400
|
|
147,589
|
|
|
|
|
1,131,157
|
|
1,111,224
|
|
|
|
Accumulated depreciation
|
(282,271)
|
|
(276,310)
|
|
|
|
|
848,886
|
|
834,914
|
|
|
Cash and cash equivalents
|
19,432
|
|
20,607
|
|
|
Accounts receivable and accrued
income, net
|
38,599
|
|
37,503
|
|
|
Deferred leasing costs, net
|
15,191
|
|
15,609
|
|
|
Prepaid expenses, net
|
2,532
|
|
3,096
|
|
|
Deferred debt costs, net
|
7,291
|
|
7,537
|
|
|
Other assets
|
8,454
|
|
6,308
|
|
|
|
Total assets
|
$
940,385
|
|
$
925,574
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Mortgage notes payable
|
$
572,236
|
|
$
576,069
|
|
|
Construction loans payable
|
71,760
|
|
60,737
|
|
|
Dividends and distributions
payable
|
12,260
|
|
12,220
|
|
|
Accounts payable, accrued expenses and
other liabilities
|
26,923
|
|
23,395
|
|
|
Deferred income
|
26,952
|
|
27,090
|
|
|
|
Total liabilities
|
710,131
|
|
699,511
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred stock
|
179,328
|
|
179,328
|
|
|
Common stock
|
181
|
|
180
|
|
|
Additional paid-in capital
|
173,239
|
|
169,363
|
|
|
Accumulated deficit
|
(123,925)
|
|
(124,167)
|
|
|
|
Total Saul Centers, Inc. stockholders'
equity
|
228,823
|
|
224,704
|
|
|
Noncontrolling interest
|
1,431
|
|
1,359
|
|
|
|
Total stockholders' equity
|
230,254
|
|
226,063
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders'
equity
|
$
940,385
|
|
$
925,574
|
|
|
|
|
|
|
|
Saul Centers,
Inc.
|
|
Condensed
Consolidated Statements of Operations
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2010
|
|
2009
|
|
Revenue
|
(Unaudited)
|
|
|
Base rent
|
|
|
$
31,695
|
|
$
30,665
|
|
|
Expense recoveries
|
|
|
8,727
|
|
7,580
|
|
|
Percentage rent
|
|
|
358
|
|
233
|
|
|
Other
|
|
|
|
2,868
|
|
1,211
|
|
|
|
Total revenue
|
|
43,648
|
|
39,689
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
Property operating expenses
|
7,679
|
|
5,370
|
|
|
Provision for credit losses
|
197
|
|
327
|
|
|
Real estate taxes
|
4,685
|
|
4,416
|
|
|
Interest expense and amortization of
deferred debt costs
|
8,591
|
|
8,196
|
|
|
Depreciation and amortization of
deferred leasing costs
|
7,073
|
|
7,041
|
|
|
General and administrative
|
2,849
|
|
2,789
|
|
|
|
Total operating expenses
|
31,074
|
|
28,139
|
|
Net income
|
12,574
|
|
11,550
|
|
|
Income attributable to the
noncontrolling interest
|
(2,021)
|
|
(1,809)
|
|
Net income attributable to Saul
Centers, Inc.
|
10,553
|
|
9,741
|
|
|
Preferred dividends
|
|
|
(3,785)
|
|
(3,785)
|
|
Net income available to common
stockholders
|
$
6,768
|
|
$
5,956
|
|
|
|
|
|
|
|
|
|
|
Per share net income available to
common stockholders :
|
|
|
|
|
|
Diluted
|
$
0.37
|
|
$
0.33
|
|
|
|
|
|
|
|
|
|
|
Weighted average common stock
:
|
|
|
|
|
|
Common stock
|
18,084
|
|
17,870
|
|
|
Effect of dilutive options
|
82
|
|
30
|
|
|
Diluted weighted average common
stock
|
18,166
|
|
17,900
|
|
|
|
|
|
|
|
|
|
Saul Centers,
Inc.
|
|
Supplemental
Information
|
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
March
31,
|
|
|
2010
|
|
2009
|
|
Reconciliation of net income to FFO
available to common shareholders: (1)
|
(Unaudited)
|
|
|
Net income
|
|
$
12,574
|
|
$
11,550
|
|
|
Add: Real property depreciation
and amortization
|
7,073
|
|
7,041
|
|
|
|
|
|
|
|
|
|
FFO
|
19,647
|
|
18,591
|
|
|
Less: Preferred
dividends
|
(3,785)
|
|
(3,785)
|
|
|
|
FFO available to common
shareholders
|
$
15,862
|
|
$
14,806
|
|
|
|
|
|
|
|
|
Weighted average shares
:
|
|
|
|
|
|
Diluted weighted average common
stock
|
18,166
|
|
17,900
|
|
|
Convertible limited partnership
units
|
5,416
|
|
5,416
|
|
|
Diluted & converted weighted
average shares
|
23,582
|
|
23,316
|
|
|
|
|
|
|
|
Per share amounts:
|
|
|
|
|
|
FFO available to common shareholders
(diluted)
|
$
0.67
|
|
$
0.64
|
|
|
|
|
|
|
|
Reconciliation of net income to same
property operating income:
|
|
|
|
|
|
Net income
|
$
12,574
|
|
$
11,550
|
|
|
Add: Interest expense and
amortization of deferred debt costs
|
8,591
|
|
8,196
|
|
|
Add: Depreciation and
amortization of deferred leasing costs
|
7,073
|
|
7,041
|
|
|
Add: General and
administrative
|
2,849
|
|
2,789
|
|
|
Less: Interest income
|
-
|
|
(3)
|
|
|
|
|
|
|
|
|
|
Property operating
income
|
31,087
|
|
29,573
|
|
|
Less: Acquisitions &
developments
|
(301)
|
|
(22)
|
|
|
|
|
|
|
|
|
|
Total same property operating
income
|
$
30,786
|
|
$
29,551
|
|
|
|
|
|
|
|
|
|
Total shopping centers
|
$
24,052
|
|
$
22,410
|
|
|
Total office properties
|
6,734
|
|
7,141
|
|
|
|
Total same property operating
income
|
$
30,786
|
|
$
29,551
|
|
|
|
(1) The National
Association of Real Estate Investment Trusts (NAREIT) developed FFO
as a relative non-GAAP financial measure of performance of an
equity REIT in order to recognize that income-producing real estate
historically has not depreciated on the basis determined under
GAAP. FFO is defined by NAREIT as net income, computed in
accordance with GAAP, plus real estate depreciation and
amortization, and excluding extraordinary items and gains or
losses from property dispositions. 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 Company's Consolidated Statements
of Cash Flows for the applicable periods. There are no
material legal or functional restrictions on the use of FFO.
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
meaningful supplemental measure of operating performance because it
primarily excludes the assumption that the value of the real estate
assets diminishes predictably over time (i.e. depreciation), which
is contrary to what we believe occurs with our assets, and because
industry analysts have accepted it as a performance measure.
FFO may not be comparable to similarly titled measures
employed by other REITs.
|
|
|
|
|
|
|
|
|
|
SOURCE Saul Centers, Inc.