BETHESDA, Md., Nov. 4, 2021 /PRNewswire/ -- Saul Centers, Inc. (NYSE: BFS), an equity real
estate investment trust ("REIT"), announced its operating results
for the quarter ended September 30, 2021 ("2021
Quarter"). Total revenue for the 2021 Quarter increased to
$60.3 million from $56.8 million for the quarter ended
September 30, 2020 ("2020 Quarter"). Net income
increased to $16.9 million for
the 2021 Quarter from $11.6 million
for the 2020 Quarter. The Waycroft mixed-use development
opened in April 2020 and, as of
September 30, 2021, was 98% leased. Concurrent with the
opening in April 2020, interest, real
estate taxes and all other costs associated with the residential
portion of the property, including depreciation, began to be
charged to expense, while revenue continued to grow as occupancy
increased. As a result, net income for the 2021 Quarter was
favorably impacted by $1.5 million,
compared to the 2020 Quarter, due to increased occupancy at The
Waycroft. Net income also increased from the 2020 Quarter due to
(a) lower credit losses on operating lease receivables and
corresponding reserves (collectively, $2.3
million), (b) higher capitalized interest ($1.1 million), primarily due to the Twinbrook
Quarter development project, and (c) higher parking income, net of
expenses ($0.3 million). Net
income available to common stockholders increased to $10.3 million ($0.44 per diluted share) for the 2021 Quarter
from $6.6 million ($0.28 per diluted share) for the 2020
Quarter.
Same property revenue increased $3.5
million (6.2%) and same property operating income increased
$3.1 million (7.3%) for the 2021
Quarter compared to the 2020 Quarter. We define same property
revenue as total revenue minus the revenue of properties not in
operation for the entirety of the comparable reporting
periods. We define same property operating income as net
income plus (a) interest expense, net and amortization of deferred
debt costs, (b) depreciation and amortization of lease costs,
(c) general and administrative expenses and (d) change in fair
value of derivatives minus (e) gains on sale of property and (f)
the results of properties which were not in operation for the
entirety of the comparable periods. Shopping Center same
property operating income for the 2021 Quarter totaled $33.8 million, a $2.3
million increase from the 2020 Quarter. Mixed-Use same
property operating income totaled $11.0 million, a $0.8 million increase from the 2020 Quarter.
The increase in Shopping Center same property operating income was
primarily the result of (a) lower credit losses on operating lease
receivables and corresponding reserves
(collectively, $2.0 million) and (b) higher base rent
($0.3 million). The increase in
Mixed-Use same property operating income was primarily the result
of (a) higher base rent ($1.0
million), (b) lower credit losses on operating lease
receivables and corresponding reserves (collectively, $0.3 million) and (c) higher parking income, net
of expenses ($0.3 million), partially
offset by (d) lower expense recoveries, net of expenses
($0.7 million) and (e) lower
lease termination fees ($0.2 million). Reconciliations of (a)
total revenue to same property revenue and (b) net income to same
property operating income are attached to this press release.
As of September 30, 2021, 92.5% of the commercial portfolio
was leased, compared to 94.0% at September 30, 2020. On
a same property basis, 92.5% of the commercial portfolio was leased
as of September 30, 2021, compared to 94.0% at
September 30, 2020. As of September 30, 2021, the
residential portfolio was 97.8% leased compared to 73.9% at
September 30, 2020. As of September 30, 2021,
excluding the Waycroft, the residential portfolio was 97.7% leased
compared to 94.4% at September 30, 2020.
For the nine months ended September 30, 2021 ("2021
Period"), total revenue increased to $179.0
million from $166.9 million for the nine months ended
September 30, 2020 ("2020 Period"). Net income increased
to $45.8 million for the 2021 Period
from $38.6 million for the 2020
Period. Net income available to common stockholders increased
to $27.8 million ($1.17 per diluted share) for the 2021 Period
compared to $22.6 million
($0.97 per diluted share) for the
2020 Period. The increase in net income was primarily due to
(a) increased base rent at The Waycroft, which opened in
April 2020, and Ashbrook Marketplace,
which opened in November 2019
(collectively, $9.4 million) and (b)
lower credit losses on operating lease receivables and
corresponding reserves (collectively, $4.8
million), partially offset by (c) lower base rent in the
Mixed-Use Portfolio, exclusive of The Waycroft ($3.5 million), and (d) lower expense
recoveries, net of expenses ($3.2
million).
Same property revenue increased $2.9
million (1.8%) and same property operating income increased
$1.8 million (1.5%) for the 2021
Period, compared to the 2020 Period. Shopping Center same
property operating income increased $5.7
million (6.0%) and mixed-use same property operating income
decreased $3.8 million (12.9%).
Shopping Center same property operating income increased primarily
due to (a) lower credit losses on operating lease receivables
and corresponding reserves (collectively, $4.3 million), (b) higher base rent
($1.5 million) and (c) higher
percentage rent ($0.6 million),
partially offset by (d) lower expense recoveries, net of expenses
($0.5 million) and (e) lower
termination fees ($0.2 million).
Mixed-use same property operating income decreased primarily due to
(a) lower base rent ($3.5 million), (b) lower termination fees
($0.7 million) and (c) lower
expense recoveries, net of expenses ($0.4
million), partially offset by (d) lower credit losses on
operating lease receivables and corresponding reserves
(collectively, $0.6 million).
Funds from operations ("FFO") available to common stockholders
and noncontrolling interests (after deducting preferred stock
dividends) was $26.6 million
($0.82 and $0.79 per basic and diluted share, respectively)
in the 2021 Quarter compared to $22.5 million ($0.72 per basic and diluted share) in the
2020 Quarter. FFO is a non-GAAP supplemental earnings measure
which the Company considers meaningful in measuring its operating
performance. A reconciliation of net income to FFO is
attached to this press release. The increase in FFO available
to common stockholders and noncontrolling interests was primarily
the result of (a) lower credit losses on operating lease
receivables and corresponding reserves (collectively, $2.3 million), (b) increased occupancy at
The Waycroft, which opened April
2020 ($1.5 million), and (c)
higher capitalized interest ($1.1
million), primarily due to the Twinbrook Quarter development
project, partially offset by (e) lower expense recoveries, net of
expenses ($0.9 million).
FFO available to common stockholders and noncontrolling
interests (after deducting preferred stock dividends and the impact
of preferred stock redemptions) increased to $75.3 million ($2.37 and $2.29 per
basic and diluted share, respectively) in the 2021 Period from
$67.8 million ($2.17 per basic and diluted share) in the 2020
Period. FFO available to common stockholders and
noncontrolling interests increased primarily due to (a) lower
credit losses on operating lease receivables and corresponding
reserves (collectively, $4.8
million), (b) increased occupancy at The Waycroft, which
opened in April 2020 ($1.2 million), (c) higher percentage rent ($0.8
million), and (d) increased occupancy at Ashbrook Marketplace,
which opened in November 2019 ($0.6 million).
On March 11, 2020, the World
Health Organization declared a novel strain of coronavirus
("COVID-19") a pandemic, and on March 13,
2020, the United States
declared a national emergency with respect to COVID-19. As a
result, the COVID-19 pandemic is negatively affecting almost every
industry directly or indirectly.
The actions taken by federal, state and local governments to
mitigate the spread of COVID-19 by ordering closure of nonessential
businesses and ordering residents to generally stay at home, and
subsequent phased re-openings, resulted in many of our tenants
announcing mandated or temporary closures of their operations
and/or requesting adjustments to their lease terms. Overall, there
remains significant uncertainty around the long-term economic
impact of the COVID-19 pandemic, which could have a material and
adverse effect on or cause disruption to our business or financial
condition, results from operations, cash flows and the market value
and trading price of our securities.
While the Company's grocery store, pharmacy, bank and home
improvement store tenants have generally remained fully open
throughout the COVID-19 pandemic, many restaurants have operated
with reduced hours and/or limited indoor seating, supplemented with
delivery and curbside pick-up, and most health, beauty supply and
services, fitness centers, and other non-essential businesses have
re-opened, some with limited customer capacity. As of
October 31, 2021, payments by tenants of contractual base rent
and operating expense and real estate tax recoveries totaled
approximately 98% for the 2021 Quarter. The Company is generally
not charging late fees or delinquent interest on past due payments
and, in limited cases, rent deferral agreements have been
negotiated to allow tenants temporary relief where needed. For
additional discussion of how the COVID-19 pandemic has impacted the
Company's business, please see Part 1, Item 2 (Management's
Discussion and Analysis of Financial Condition and Results of
Operations) of our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2021.
While we expect collections of rent billings, including minimum
rent, operating expense recoveries and real estate tax
reimbursements, to remain below pre-pandemic levels in the
near-term, when taking into account the amount of time elapsed
since the due date of the payment, we continue to experience
sequential improvement in our collection rates. The following table
summarizes the Company's consolidated total collections of the
first quarter, second quarter, third quarter and October 2021 rent billings as of November 1, 2021:
|
Retail
|
Office
|
Residential
|
Total
|
2021 First
Quarter
|
99
|
%
|
100
|
%
|
99
|
%
|
99
|
%
|
2021 Second
Quarter
|
99
|
%
|
100
|
%
|
99
|
%
|
99
|
%
|
2021 Third
Quarter
|
97
|
%
|
100
|
%
|
99
|
%
|
98
|
%
|
October
2021
|
95
|
%
|
99
|
%
|
99
|
%
|
96
|
%
|
Although we are and will continue to be actively engaged in rent
collection efforts related to uncollected rent, and we continue to
work with certain tenants who have requested rent deferrals, we can
provide no assurance that such efforts or our efforts in future
periods will be successful, particularly in the event that the
COVID-19 pandemic and restrictions intended to prevent its spread
continue for a prolonged period. As of September 30,
2021, $4.6 million of deferred rents
have come due. Of the amounts that have come due, $4.5 million has been paid.
With cash balances of over $8.9 million and borrowing capacity of
approximately $220.2 million on
October 31, 2021, the Company believes that it has sufficient
liquidity and flexibility to meet the needs of the Company's
operations as the effects of the COVID-19 pandemic continue to
evolve.
Saul Centers, Inc. is a
self-managed, self-administered equity REIT headquartered in
Bethesda, Maryland, which
currently operates and manages a real estate portfolio of 61
properties which includes (a) 50 community and neighborhood
shopping centers and seven mixed-use properties with approximately
9.8 million square feet of leasable area and (b) four land and
development properties. Approximately 85% of the Saul Centers'
property operating income is generated by properties in the
metropolitan Washington,
DC/Baltimore area.
Safe Harbor Statement
Certain matters discussed within this press release may be
deemed to be forward-looking statements within the meaning of the
federal securities laws. For these statements, we claim the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995. Although the Company believes the expectations
reflected in the forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be
attained. These factors include, but are not limited to, the
risk factors described in our Annual Report on (i) Form 10-K for
the year ended December 31, 2020 and
(ii) our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021 and include the following: (i) general
adverse economic and local real estate conditions, (ii) the
inability of major tenants to continue paying their rent
obligations due to bankruptcy, insolvency or a general downturn in
their business, (iii) financing risks, such as the inability to
obtain equity, debt or other sources of financing or refinancing on
favorable terms to the Company, (iv) the Company's ability to raise
capital by selling its assets, (v) changes in governmental
laws and regulations and management's ability to estimate the
impact of such changes, (vi) the level and volatility of interest
rates and management's ability to estimate the impact thereof,
(vii) the availability of suitable acquisition, disposition,
development and redevelopment opportunities, and risks related to
acquisitions not performing in accordance with our expectations,
(viii) increases in operating costs, (ix) changes in the
dividend policy for the Company's common and preferred stock and
the Company's ability to pay dividends at current levels, (x) the
reduction in the Company's income in the event of multiple lease
terminations by tenants or a failure by multiple tenants to occupy
their premises in a shopping center, (xi) impairment charges,
(xii) unanticipated changes in the Company's intention or ability
to prepay certain debt prior to maturity and (xiii) an epidemic or
pandemic (such as the outbreak and worldwide spread of COVID-19),
and the measures that international, federal, state and local
governments, agencies, law enforcement and/or health authorities
implement to address it, which may (as with COVID-19) precipitate
or exacerbate one or more of the above-mentioned and/or other
risks, and significantly disrupt or prevent us from operating our
business in the ordinary course for an extended period. Given
these uncertainties, readers are cautioned not to place undue
reliance on any forward-looking statements that we make, including
those in this press release. Except as may be required by
law, we make no promise to update any of the forward-looking
statements as a result of new information, future events or
otherwise. You should carefully review the risks and risk
factors included in (i) our Annual Report on Form 10-K for the year
ended December 31, 2020 and (ii) our
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021.
Saul Centers,
Inc.
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
(Dollars in
thousands, except per share amounts)
|
September 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Real estate
investments
|
|
|
|
Land
|
$
|
511,596
|
|
|
$
|
511,482
|
|
Buildings and
equipment
|
1,563,059
|
|
|
1,543,837
|
|
Construction in
progress
|
191,707
|
|
|
69,477
|
|
|
2,266,362
|
|
|
2,124,796
|
|
Accumulated
depreciation
|
(639,241)
|
|
|
(607,706)
|
|
|
1,627,121
|
|
|
1,517,090
|
|
Cash and cash
equivalents
|
11,917
|
|
|
26,856
|
|
Accounts receivable
and accrued income, net
|
61,855
|
|
|
64,917
|
|
Deferred leasing
costs, net
|
24,638
|
|
|
26,872
|
|
Other
assets
|
13,969
|
|
|
9,837
|
|
Total
assets
|
$
|
1,739,500
|
|
|
$
|
1,645,572
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
|
794,586
|
|
|
$
|
827,603
|
|
Construction loan
payable
|
147,112
|
|
|
144,607
|
|
Revolving credit
facility payable
|
95,028
|
|
|
103,913
|
|
Term loan facility
payable
|
99,209
|
|
|
74,791
|
|
Accounts payable,
accrued expenses and other liabilities
|
27,199
|
|
|
24,384
|
|
Deferred
income
|
26,216
|
|
|
23,293
|
|
Dividends and
distributions payable
|
20,543
|
|
|
19,448
|
|
Total
liabilities
|
1,209,893
|
|
|
1,218,039
|
|
Equity
|
|
|
|
Preferred stock,
1,000,000 shares authorized:
|
|
|
|
Series D Cumulative
Redeemable, 30,000 shares issued and outstanding
|
75,000
|
|
|
75,000
|
|
Series E Cumulative
Redeemable, 44,000 shares issued and outstanding
|
110,000
|
|
|
110,000
|
|
Common stock, $0.01
par value, 40,000,000 shares authorized, 23,713,961 and 23,476,626
shares issued and outstanding, respectively
|
237
|
|
|
235
|
|
Additional paid-in
capital
|
430,537
|
|
|
420,625
|
|
Partnership units in
escrow
|
79,300
|
|
|
—
|
|
Distributions in
excess of accumulated net income
|
(252,309)
|
|
|
(241,535)
|
|
Total Saul Centers,
Inc. equity
|
442,765
|
|
|
364,325
|
|
Noncontrolling
interests
|
86,842
|
|
|
63,208
|
|
Total
equity
|
529,607
|
|
|
427,533
|
|
Total liabilities and
equity
|
$
|
1,739,500
|
|
|
$
|
1,645,572
|
|
|
|
|
|
|
|
|
|
The Notes to
Financial Statements are an integral part of these
statements.
|
Saul Centers,
Inc.
|
Consolidated
Statements of Operations
|
(In thousands, except
per share amounts)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
(unaudited)
|
|
(unaudited)
|
Rental
revenue
|
$
|
59,058
|
|
|
$
|
55,749
|
|
|
$
|
175,634
|
|
|
$
|
163,167
|
|
Other
|
1,198
|
|
|
1,011
|
|
|
3,351
|
|
|
3,756
|
|
Total
revenue
|
60,256
|
|
|
56,760
|
|
|
178,985
|
|
|
166,923
|
|
Expenses
|
|
|
|
|
|
|
|
Property operating
expenses
|
8,210
|
|
|
7,416
|
|
|
24,420
|
|
|
20,862
|
|
Real estate
taxes
|
7,154
|
|
|
7,523
|
|
|
22,121
|
|
|
22,027
|
|
Interest expense, net
and amortization of deferred debt costs
|
10,914
|
|
|
12,398
|
|
|
34,559
|
|
|
34,011
|
|
Depreciation and
amortization of lease costs
|
12,467
|
|
|
13,713
|
|
|
37,852
|
|
|
37,593
|
|
General and
administrative
|
4,626
|
|
|
4,107
|
|
|
14,234
|
|
|
13,790
|
|
Total
expenses
|
43,371
|
|
|
45,157
|
|
|
133,186
|
|
|
128,283
|
|
Net
Income
|
16,885
|
|
|
11,603
|
|
|
45,799
|
|
|
38,640
|
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests
|
(3,747)
|
|
|
(2,236)
|
|
|
(9,653)
|
|
|
(7,681)
|
|
Net income
attributable to Saul Centers, Inc.
|
13,138
|
|
|
9,367
|
|
|
36,146
|
|
|
30,959
|
|
Preferred stock
dividends
|
(2,798)
|
|
|
(2,798)
|
|
|
(8,395)
|
|
|
(8,394)
|
|
Net income
available to common stockholders
|
$
|
10,340
|
|
|
$
|
6,569
|
|
|
$
|
27,751
|
|
|
$
|
22,565
|
|
Per share net
income available to common stockholders
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
0.44
|
|
|
$
|
0.28
|
|
|
$
|
1.17
|
|
|
$
|
0.97
|
|
|
Reconciliation of net
income to FFO available to common stockholders and
noncontrolling
interests (1)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In thousands,
except per share amounts)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
|
$
|
16,885
|
|
|
$
|
11,603
|
|
|
$
|
45,799
|
|
|
$
|
38,640
|
|
Add:
|
|
|
|
|
|
|
|
Real estate
depreciation and amortization
|
12,467
|
|
|
13,713
|
|
|
37,852
|
|
|
37,593
|
|
FFO
|
29,352
|
|
|
25,316
|
|
|
83,651
|
|
|
76,233
|
|
Subtract:
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
(2,798)
|
|
|
(2,798)
|
|
|
(8,395)
|
|
|
(8,394)
|
|
FFO available to common
stockholders and noncontrolling interests
|
$
|
26,554
|
|
|
$
|
22,518
|
|
|
$
|
75,256
|
|
|
$
|
67,839
|
|
Weighted average
shares and units:
|
|
|
|
|
|
|
|
Basic
|
32,237
|
|
|
31,264
|
|
|
31,774
|
|
|
31,232
|
|
Diluted
(2)
|
33,656
|
|
|
31,264
|
|
|
32,877
|
|
|
31,233
|
|
Basic FFO per share
available to common stockholders and noncontrolling
interests
|
$
|
0.82
|
|
|
$
|
0.72
|
|
|
$
|
2.37
|
|
|
$
|
2.17
|
|
Diluted FFO per share
available to common stockholders and noncontrolling
interests
|
$
|
0.79
|
|
|
$
|
0.72
|
|
|
$
|
2.29
|
|
|
$
|
2.17
|
|
|
|
(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 impairment charges on real estate
assets and gains or losses from real estate 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 the Company believes occurs with its 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.
|
(2)
|
Beginning March 5,
2021, fully diluted shares and units includes 1,416,071 limited
partnership units that are held in escrow related to the
contribution of Twinbrook Quarter to the Company by the B. F. Saul
Real Estate Investment Trust. The units will remain in escrow until
the conditions of the Twinbrook Contribution Agreement, as amended,
are satisfied.
|
Reconciliation of
revenue to same property revenue (3)
|
|
(in
thousands)
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(unaudited)
|
|
(unaudited)
|
Total
revenue
|
|
$
|
60,256
|
|
|
$
|
56,760
|
|
|
$
|
178,985
|
|
|
$
|
166,923
|
|
Less: Acquisitions,
dispositions and development properties
|
|
—
|
|
|
—
|
|
|
(11,309)
|
|
|
(2,151)
|
|
Total same property
revenue
|
|
$
|
60,256
|
|
|
$
|
56,760
|
|
|
$
|
167,676
|
|
|
$
|
164,772
|
|
|
|
|
|
|
|
|
|
|
Shopping
Centers
|
|
$
|
42,485
|
|
|
$
|
40,336
|
|
|
$
|
126,935
|
|
|
$
|
120,236
|
|
Mixed-Use
properties
|
|
17,771
|
|
|
16,424
|
|
|
40,741
|
|
|
44,536
|
|
Total same property
revenue
|
|
$
|
60,256
|
|
|
$
|
56,760
|
|
|
$
|
167,676
|
|
|
$
|
164,772
|
|
|
|
|
|
|
|
|
|
|
Total Shopping
Center revenue
|
|
$
|
42,485
|
|
|
$
|
40,336
|
|
|
$
|
126,935
|
|
|
$
|
120,236
|
|
Less: Shopping Center
acquisitions, dispositions and development properties
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total same Shopping
Center revenue
|
|
$
|
42,485
|
|
|
$
|
40,336
|
|
|
$
|
126,935
|
|
|
$
|
120,236
|
|
|
|
|
|
|
|
|
|
|
Total Mixed-Use
property revenue
|
|
$
|
17,771
|
|
|
$
|
16,424
|
|
|
$
|
52,050
|
|
|
$
|
46,687
|
|
Less: Mixed-Use
acquisitions, dispositions and development properties
|
|
—
|
|
|
—
|
|
|
(11,309)
|
|
|
(2,151)
|
|
Total same Mixed-Use
property revenue
|
|
$
|
17,771
|
|
|
$
|
16,424
|
|
|
$
|
40,741
|
|
|
$
|
44,536
|
|
|
|
(3)
|
Same property revenue
is a non-GAAP financial measure of performance that improves the
comparability of reporting periods by excluding the results of
properties that were not in operation for the entirety of the
comparable reporting periods. Same property revenue adjusts
property revenue by subtracting the revenue of properties not in
operation for the entirety of the comparable reporting
periods. Same property revenue is a measure of the operating
performance of the Company's properties but does not measure the
Company's performance as a whole. Same property revenue
should not be considered as an alternative to total revenue, its
most directly comparable GAAP measure, as an indicator of the
Company's operating performance. Management considers same
property revenue a meaningful supplemental measure of operating
performance because it is not affected by the cost of the Company's
funding, the impact of depreciation and amortization expenses,
gains or losses from the acquisition and sale of operating real
estate assets, general and administrative expenses or other gains
and losses that relate to ownership of the Company's
properties. Management believes the exclusion of these items
from same property revenue is useful because the resulting measure
captures the actual revenue generated and actual expenses incurred
by operating the Company's properties. Other REITs may use
different methodologies for calculating same property
revenue. Accordingly, the Company's same property revenue may
not be comparable to those of other REITs.
|
Reconciliation of net
income to same property operating income (4)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Net
income
|
$
|
16,885
|
|
|
$
|
11,603
|
|
|
$
|
45,799
|
|
|
$
|
38,640
|
|
Add: Interest
expense, net and amortization of deferred debt costs
|
10,914
|
|
|
12,398
|
|
|
34,559
|
|
|
34,011
|
|
Add: Depreciation and
amortization of lease costs
|
12,467
|
|
|
13,713
|
|
|
37,852
|
|
|
37,593
|
|
Add: General and
administrative
|
4,626
|
|
|
4,107
|
|
|
14,234
|
|
|
13,790
|
|
Property operating
income
|
44,892
|
|
|
41,821
|
|
|
132,444
|
|
|
124,034
|
|
Less: Acquisitions,
dispositions and development properties
|
—
|
|
|
—
|
|
|
(6,655)
|
|
|
(71)
|
|
Total same property
operating income
|
$
|
44,892
|
|
|
$
|
41,821
|
|
|
$
|
125,789
|
|
|
$
|
123,963
|
|
|
|
|
|
|
|
|
|
Shopping
Centers
|
$
|
33,845
|
|
|
$
|
31,581
|
|
|
$
|
99,848
|
|
|
$
|
94,195
|
|
Mixed-Use
properties
|
11,047
|
|
|
10,240
|
|
|
25,941
|
|
|
29,768
|
|
Total same property
operating income
|
$
|
44,892
|
|
|
$
|
41,821
|
|
|
$
|
125,789
|
|
|
$
|
123,963
|
|
|
|
|
|
|
|
|
|
Shopping Center
operating income
|
$
|
33,845
|
|
|
$
|
31,581
|
|
|
$
|
99,848
|
|
|
$
|
94,195
|
|
Less: Shopping Center
acquisitions, dispositions and development properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total same Shopping
Center operating income
|
$
|
33,845
|
|
|
$
|
31,581
|
|
|
$
|
99,848
|
|
|
$
|
94,195
|
|
|
|
|
|
|
|
|
|
Mixed-Use property
operating income
|
$
|
11,047
|
|
|
$
|
10,240
|
|
|
$
|
32,596
|
|
|
$
|
29,839
|
|
Less: Mixed-Use
acquisitions, dispositions and development properties
|
—
|
|
|
—
|
|
|
(6,655)
|
|
|
(71)
|
|
Total same Mixed-Use
property operating income
|
$
|
11,047
|
|
|
10,240
|
|
|
$
|
25,941
|
|
|
$
|
29,768
|
|
|
|
(4)
|
Same property
operating income is a non-GAAP financial measure of performance
that improves the comparability of reporting periods by excluding
the results of properties that were not in operation for the
entirety of the comparable reporting periods. Same property
operating income adjusts property operating income by subtracting
the results of properties that were not in operation for the
entirety of the comparable periods. Same property operating
income is a measure of the operating performance of the Company's
properties but does not measure the Company's performance as a
whole. Same property operating income should not be
considered as an alternative to property operating income, its most
directly comparable GAAP measure, as an indicator of the Company's
operating performance. Management considers same property
operating income a meaningful supplemental measure of operating
performance because it is not affected by the cost of the Company's
funding, the impact of depreciation and amortization expenses,
gains or losses from the acquisition and sale of operating real
estate assets, general and administrative expenses or other gains
and losses that relate to ownership of the Company's
properties. Management believes the exclusion of these items
from property operating income is useful because the resulting
measure captures the actual revenue generated and actual expenses
incurred by operating the Company's properties. Other REITs
may use different methodologies for calculating same property
operating income. Accordingly, same property operating income
may not be comparable to those of other REITs.
|
View original
content:https://www.prnewswire.com/news-releases/saul-centers-inc-reports-third-quarter-2021-earnings-301417130.html
SOURCE Saul Centers, Inc.