Saul Centers, Inc. Reports First Quarter 2015 Earnings

BETHESDA, Md., May 5, 2015 /PRNewswire/ -- Saul Centers, Inc. (NYSE: BFS), an equity real estate investment trust ("REIT"), announced its operating results for the quarter ended March 31, 2015 ("2015 Quarter").  Total revenue for the 2015 Quarter decreased to $52.1 million from $52.9 million for the quarter ended March 31, 2014 ("2014 Quarter").  Operating income, which is net income before the impact of change in fair value of derivatives, loss on early extinguishment of debt and gains on sales of property and casualty settlements, if any, was $12.7 million for the 2015 Quarter, unchanged from the 2014 Quarter. 

Net income attributable to common stockholders was $7.1 million ($0.34 per diluted share) for each of the 2015 and 2014 Quarters.  Although unchanged from the prior year, net income attributable to common stockholders in 2014 included (a) a lease termination fee ($1.5 million), (b) accrued severance costs, included in general and administrative expenses, ($1.1 million) and (c) predevelopment costs related to Park Van Ness ($0.5 million), none of which impacted 2015.

Same property revenue decreased $1.2 million (or 2.4%) and same property operating income decreased $1.8 million (or 4.5%) for the 2015 Quarter compared to the 2014 Quarter.  Same property operating income equals property revenue minus the sum of (a) property operating expenses, (b) provision for credit losses and (c) real estate taxes and the comparisons exclude the results of properties not in operation for the entirety of the comparable reporting periods.  Shopping center same property operating income decreased $0.9 million (or 2.9%) primarily due to a lease termination fee received in 2014 ($1.5 million).  Mixed-use same property operating income decreased $0.9 million (or 9.4%) primarily due to (a) higher real estate tax expense, the majority of which is not recoverable, ($300,000), (b) lower base rent ($250,000) and (c) lower parking revenue ($123,000).

As of March 31, 2015, 94.5% of the commercial portfolio was leased (not including the apartments at Clarendon Center), compared to 94.3% at March 31, 2014.  On a same property basis, 94.4% of the portfolio was leased at March 31, 2015, compared to 94.3% at March 31, 2014.  The apartments at Clarendon Center were 98.4% leased as of March 31, 2015 compared to 98.8% at March 31, 2014.

Funds from operations ("FFO") available to common shareholders (after deducting preferred stock dividends and redemption charges) increased 1.7% to $20.0 million ($0.71 per diluted share) in the 2015 Quarter from $19.7 million ($0.71 per diluted share) in the 2014 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 and losses from property dispositions, impairment charges on depreciable real estate assets and extraordinary items.  The increase in FFO available to common shareholders for the 2015 Quarter was primarily due to (a) lower severance costs, included in general and administrative expenses, ($1.1 million), (b) lower predevelopment expense related to Park Van Ness ($0.5 million) and (c) lower preferred stock dividends ($0.1 million) partially offset by (d) decreased property operating income ($1.4 million) as a result of a $1.5 million lease termination fee received in 2014.

Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 59 properties which includes (a) 50 community and neighborhood shopping centers and six mixed-use properties with approximately 9.3 million square feet of leasable area and (b) three land and development properties. Approximately 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.

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SOURCE Saul Centers, Inc.