BETHESDA, Md., Aug. 6, 2020 /PRNewswire/ -- Saul Centers,
Inc. (NYSE: BFS), an equity real estate investment trust ("REIT"),
announced its operating results for the quarter ended June 30,
2020 ("2020 Quarter"). Total revenue for the 2020 Quarter
decreased to $53.2 million from
$58.1 million for the quarter
ended June 30, 2019 ("2019 Quarter"). Net income
decreased to $10.2 million for
the 2020 Quarter from $16.8 million
for the 2019 Quarter. The Waycroft mixed-use development
opened in April 2020 and, as of
August 5, 2020, applications have been received for 217
residential leases, totaling approximately 44% of the available
units, with 189 units occupied. Concurrent with the opening in
April, 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
continues to grow as occupancy increases. As a result, net income
for the 2020 Quarter was adversely impacted by $4.6 million due to the initial operations of The
Waycroft. Net income also decreased due to higher credit losses on
operating lease receivables and corresponding reserves
(collectively, $2.8 million).
Net income available to common stockholders was $5.5 million ($0.24 per diluted share) for the 2020 Quarter
compared to ($10.3 million)
($0.45 per diluted share) for
the 2019 Quarter.
Same property revenue decreased $5.3
million (9.1%) and same property operating income decreased
$4.4 million (9.9%) for the 2020
Quarter compared to the 2019 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 deferred leasing
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 2020 Quarter totaled $29.8 million, a $3.9
million decrease from the 2019 Quarter. Mixed-Use same
property operating income totaled $10.1
million, a $0.5 million
decrease from the 2019 Quarter. The decrease in Shopping Center
same property operating income was primarily the result of (a)
higher credit losses on operating lease receivables and
corresponding reserves (collectively, $2.7
million) and (b) lower lease termination fees
($0.5 million). The decrease in
Mixed-Use same property operating income was primarily the result
of (a) lower parking income, net of parking expenses ($0.3 million) and (b) lower percentage
rent ($0.2 million).
As of June 30, 2020, 94.7% of the commercial portfolio was
leased (not including the residential portfolio), unchanged from
June 30, 2019. On a same property basis, 94.7% of the
commercial portfolio was leased as of June 30, 2020, compared
to 95.2% at June 30, 2019. As of June 30, 2020, the
residential portfolio was 67.7% leased compared to 98.1% at
June 30, 2019. The decrease in Residential portfolio occupancy
is primarily due to the increase in units available as a result of
the opening of The Waycroft. On a same property basis, 95.3% of the
residential portfolio was leased as of June 30, 2020, compared
to 98.1% at June 30, 2019.
For the six months ended June 30, 2020 ("2020 Period"),
total revenue decreased to $110.2 million from $117.9 million for the six months ended
June 30, 2019 ("2019 Period"). Net income decreased to
$27.0 million for the 2020
Period from $33.8 million for
the 2019 Period. Net income available to common stockholders
decreased to $16.0 million
($0.69 per diluted share) for
the 2020 Period compared to $20.8 million ($0.91 per diluted share) for the 2019
Period. The decrease in net income available to common
stockholders was primarily due to (a) initial operations of The
Waycroft ($4.6 million), (b) higher
credit losses on operating lease receivables and corresponding
reserves (collectively, $2.7
million), (c) lower lease termination fees ($1.7 million) and (d) lower base rent, primarily
due to the lease expiration and re-leasing of the grocery anchors
at Seven Corners, which opened in March 2020, and at Shops at
Fairfax, which is projected to open in the third quarter of 2020
(collectively, $0.5 million),
partially offset by (e) lower interest incurred due to lower
average interest rates during the period, exclusive of the impact
of The Waycroft ($1.8 million),
(f) lower income attributable to noncontrolling interests
($1.7 million) and (g) higher
capitalized interest for 7316 Wisconsin Avenue ($1.1 million).
Same property revenue decreased $7.3 million (6.3%) and same property
operating income decreased $5.7 million (6.5%) for the 2020 Period,
compared to the 2019 Period. Shopping Center same property
operating income decreased (7.3%) and mixed-use same property
operating income decreased (4.0%). Shopping Center same
property operating income decreased primarily due to
(a) higher credit losses on operating lease receivables and
corresponding reserves (collectively, $2.6
million), (b) lower lease termination fees ($1.4 million) and (c) lower expense recoveries,
net of recoverable expenses ($0.4
million). Mixed-use same property operating income decreased
primarily due to (a) lower parking income, net of parking expenses
($0.4 million) and (b) lower
percentage rent ($0.2 million).
Funds from operations ("FFO") available to common stockholders
and noncontrolling interests (after deducting preferred stock
dividends) was $20.0 million
($0.64 per diluted share) in the 2020
Quarter compared to $25.3 million
($0.82 per diluted share) in the
2019 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. Concurrent with the opening
of The Waycroft in April, interest, real estate taxes and all
other costs associated with the residential portion property began
to be charged to expense while revenue continues to grow as
occupancy increases. As a result, FFO for the 2020 Quarter was
adversely impacted by $3.2 million
due to the initial operations of The Waycroft. The decrease in FFO
available to common stockholders and noncontrolling interests also
decreased due to (a) higher credit losses on operating lease
receivables and corresponding reserves (collectively, $2.8 million) and (b) lower lease
termination fees ($0.4 million),
partially offset by (c) higher capitalized interest for 7316
Wisconsin Avenue ($0.6 million) and
(d) lower general and administrative expenses ($0.5 million).
FFO available to common stockholders and noncontrolling
interests (after deducting preferred stock dividends and the impact
of preferred stock redemptions) decreased to $45.3 million ($1.45 per diluted share) in the 2020 Period
from $51.1 million ($1.66
per diluted share) in the 2019 Period. FFO available to
common stockholders and noncontrolling interests decreased
primarily due to (a) initial operations of The Waycroft
($3.2 million), (b) higher credit
losses on operating lease receivables and corresponding reserves
(collectively, $2.7 million),
(c) lower lease termination fees ($1.7 million) and (d) lower
base rent, primarily due to the lease expiration and re-leasing of
the grocery anchors at Seven Corners, which opened in
March 2020, and at Shops at Fairfax, which is projected to
open in the third quarter of 2020 (collectively,
$0.5 million), partially offset by (e) lower interest incurred
due to lower average interest rates during the period, exclusive of
the impact of The Waycroft ($1.8 million) and (f) higher
capitalized interest for 7316 Wisconsin Avenue ($1.1 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.
In the first week of April, the Company delivered The Waycroft,
comprised of 491 apartment units and 60,000 square feet of retail
space, on North Glebe Road, in Arlington,
Virginia. As of August 5, 2020, despite the headwinds
of COVID-19, 217 residential applications have been executed,
totaling approximately 44% of the available units, and a total of
189 units were occupied. The addition of The Waycroft nearly
doubles the residential component of the portfolio to over 1,000
luxury residential units. The project is anchored by a 41,500
square foot Target store. Target commenced paying rent in
July 2020 and is scheduled to
commence operations in August. An additional 5,900 square
feet of retail space is expected to be operational during the
second half of 2020.
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, have resulted in many of our tenants
announcing mandated or temporary closures of their operations
and/or requesting adjustments to their lease terms. Experts
predict that the COVID-19 pandemic will trigger a period of global
economic slowdown or a global recession. COVID-19 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 stores, pharmacies, banks and home
improvement stores generally remain open, restaurants, if open, are
operating at limited capacity, with many offering only delivery and
curbside pick-up, and most health, beauty supply and services,
fitness centers, and other non-essential businesses are in various
phases of re-opening depending on location. As of August 5,
2020, approximately 80% of the Company's contractual base rent and
operating expense and real estate tax recoveries for April, May and
June 2020 has been paid. Of the 20%
unpaid, rent subject to executed deferral agreements totaled
approximately $3.9 million, which
represents 8% of total billings and 37% of the total unpaid balance
for such period. The Company is generally not charging late
fees or delinquent interest on these past due payments and, in many
cases, additional rent deferral agreements are being 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 June 30,
2020.
The following is a summary of the Company's consolidated total
rent collections for the second quarter and July rent billings,
including minimum rent, operating expense recoveries, and real
estate tax reimbursements as of August 5, 2020:
2020 Second Quarter
- 80% of 2020 Second Quarter total billings has been paid by
our tenants (comprised of 82%, 78% and 79%, for April, May and
June 2020, respectively.)
-
- 74% of retail
- 94% of office
- 100% of residential
- Additionally, rent deferral agreements comprising approximately
8% of 2020 Second Quarter total billings have been executed
(or 37% of the total unpaid balance, including 17% with
anchor/national tenants). The executed deferrals typically
cover three months of rent and are generally scheduled to be repaid
during 2021 and 2022. As a condition to granted rent
deferrals, we have sought and received extended lease terms, or
waivers of certain adjacent use or common area restrictions.
July 2020
- 84% of July 2020 total billings
has been paid by our tenants.
-
- 79% of retail
- 94% of office
- 99% of residential
- Additionally, rent deferral agreements comprising approximately
2% of July total billings have been executed (or 10% of the total
unpaid balance, including 6% with anchor/national tenants).
These deferrals are structured similarly to the second quarter
deferrals.
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.
During July 2020, the Company
closed on two 15-year, non-recourse mortgage loans with a weighted
average rate of 3.59% and total proceeds of $52.1 million. One loan is secured by Ashbook
Marketplace and the other is secured by certain of our assets at
Kentlands. The proceeds from the loans were used to pay down the
revolving credit facility. With cash balances of over $53.4 million and borrowing capacity of
approximately $200.3 million on
July 31, 2020, 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 60
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) 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.
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, 2019 and
(ii) our Quarterly Report on Form 10-Q for the quarter ended
June 30, 2020 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, 2019 and (ii) our Quarterly Report
on Form 10-Q for the quarter ended June 30, 2020.
Saul Centers,
Inc. Consolidated Balance Sheets (In
thousands)
|
|
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
(Unaudited)
|
Assets
|
|
|
|
Real estate
investments
|
|
|
|
Land
|
$
|
503,802
|
|
|
$
|
453,322
|
|
Buildings and
equipment
|
1,505,909
|
|
|
1,292,631
|
|
Construction in
progress
|
101,359
|
|
|
335,644
|
|
|
2,111,070
|
|
|
2,081,597
|
|
Accumulated
depreciation
|
(584,002)
|
|
|
(563,474)
|
|
|
1,527,068
|
|
|
1,518,123
|
|
Cash and cash
equivalents
|
66,457
|
|
|
13,905
|
|
Accounts receivable
and accrued income, net
|
57,926
|
|
|
52,311
|
|
Deferred leasing
costs, net
|
27,057
|
|
|
24,083
|
|
Prepaid expenses,
net
|
1,579
|
|
|
5,363
|
|
Other
assets
|
6,549
|
|
|
4,555
|
|
Total
assets
|
$
|
1,686,636
|
|
|
$
|
1,618,340
|
|
|
|
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
|
791,534
|
|
|
$
|
821,503
|
|
Term loan facility
payable
|
74,741
|
|
|
74,691
|
|
Revolving credit
facility payable
|
173,642
|
|
|
86,371
|
|
Construction loan
payable
|
134,650
|
|
|
108,623
|
|
Dividends and
distributions payable
|
19,358
|
|
|
19,291
|
|
Accounts payable,
accrued expenses and other liabilities
|
30,311
|
|
|
35,199
|
|
Deferred
income
|
24,114
|
|
|
29,306
|
|
Total
liabilities
|
1,248,350
|
|
|
1,174,984
|
|
|
|
|
|
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, 23,342,699 and 23,231,240
shares issued and outstanding, respectively
|
233
|
|
|
232
|
|
Additional paid-in
capital
|
416,793
|
|
|
410,926
|
|
Distributions in
excess of accumulated earnings
|
(229,918)
|
|
|
(221,177)
|
|
Total Saul Centers,
Inc. equity
|
372,108
|
|
|
374,981
|
|
Noncontrolling
interests
|
66,178
|
|
|
68,375
|
|
Total
equity
|
438,286
|
|
|
443,356
|
|
Total liabilities and
equity
|
$
|
1,686,636
|
|
|
$
|
1,618,340
|
|
Saul Centers,
Inc. Consolidated Statements of Operations (In
thousands, except per share amounts)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
(unaudited)
|
|
(unaudited)
|
Rental
revenue
|
$
|
52,002
|
|
|
$
|
55,953
|
|
|
$
|
107,418
|
|
|
$
|
112,756
|
|
Other
|
1,218
|
|
|
2,188
|
|
|
2,745
|
|
|
5,135
|
|
Total
revenue
|
53,220
|
|
|
58,141
|
|
|
110,163
|
|
|
117,891
|
|
Expenses
|
|
|
|
|
|
|
|
Property operating
expenses
|
6,410
|
|
|
7,115
|
|
|
13,446
|
|
|
15,116
|
|
Real estate
taxes
|
7,351
|
|
|
6,819
|
|
|
14,504
|
|
|
13,967
|
|
Interest expense, net
and amortization of deferred debt costs
|
12,019
|
|
|
10,793
|
|
|
21,613
|
|
|
21,860
|
|
Depreciation and
amortization of deferred leasing costs
|
12,600
|
|
|
11,524
|
|
|
23,881
|
|
|
23,167
|
|
General and
administrative
|
4,632
|
|
|
5,140
|
|
|
9,682
|
|
|
9,954
|
|
Total
expenses
|
43,012
|
|
|
41,391
|
|
|
83,126
|
|
|
84,064
|
|
Net
Income
|
10,208
|
|
|
16,750
|
|
|
27,037
|
|
|
33,827
|
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
Income attributable
to noncontrolling interests
|
(1,880)
|
|
|
(3,518)
|
|
|
(5,445)
|
|
|
(7,148)
|
|
Net income
attributable to Saul Centers, Inc.
|
8,328
|
|
|
13,232
|
|
|
21,592
|
|
|
26,679
|
|
Preferred stock
dividends
|
(2,798)
|
|
|
(2,953)
|
|
|
(5,596)
|
|
|
(5,906)
|
|
Net income
available to common stockholders
|
$
|
5,530
|
|
|
$
|
10,279
|
|
|
$
|
15,996
|
|
|
$
|
20,773
|
|
Per share net
income available to common stockholders
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
0.24
|
|
|
$
|
0.45
|
|
|
$
|
0.69
|
|
|
$
|
0.91
|
|
|
|
Reconciliation of net
income to FFO available to common stockholders and
noncontrolling
interests (1)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
(In thousands,
except per share amounts)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Net income
|
$
|
10,208
|
|
|
$
|
16,750
|
|
|
$
|
27,037
|
|
|
$
|
33,827
|
|
Add:
|
|
|
|
|
|
|
|
Real estate
depreciation and amortization
|
12,600
|
|
|
11,524
|
|
|
23,881
|
|
|
23,167
|
|
FFO
|
22,808
|
|
|
28,274
|
|
|
50,918
|
|
|
56,994
|
|
Subtract:
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
(2,798)
|
|
|
(2,953)
|
|
|
(5,596)
|
|
|
(5,906)
|
|
FFO available to
common stockholders and noncontrolling interests
|
$
|
20,010
|
|
|
$
|
25,321
|
|
|
$
|
45,322
|
|
|
$
|
51,088
|
|
Weighted average
shares:
|
|
|
|
|
|
|
|
Diluted weighted
average common stock
|
23,338
|
|
|
22,994
|
|
|
23,319
|
|
|
22,929
|
|
Convertible limited
partnership units
|
7,902
|
|
|
7,853
|
|
|
7,899
|
|
|
7,844
|
|
Average shares and
units used to compute FFO per share
|
31,240
|
|
|
30,847
|
|
|
31,218
|
|
|
30,773
|
|
FFO per share
available to common stockholders and noncontrolling
interests
|
$
|
0.64
|
|
|
$
|
0.82
|
|
|
$
|
1.45
|
|
|
$
|
1.66
|
|
|
|
(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.
|
Reconciliation of
revenue to same property revenue (2)
|
|
(in
thousands)
|
|
Three months ended
June 30,
|
|
Six months ended June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(unaudited)
|
|
(unaudited)
|
Total
revenue
|
|
$
|
53,220
|
|
|
$
|
58,141
|
|
|
$
|
110,163
|
|
|
$
|
117,891
|
|
Less: Acquisitions,
dispositions and development properties
|
|
(570)
|
|
|
(194)
|
|
|
(700)
|
|
|
(1,083)
|
|
Total same property
revenue
|
|
$
|
52,650
|
|
|
$
|
57,947
|
|
|
$
|
109,463
|
|
|
$
|
116,808
|
|
|
|
|
|
|
|
|
|
|
Shopping
Centers
|
|
$
|
38,058
|
|
|
$
|
42,259
|
|
|
$
|
79,499
|
|
|
$
|
85,417
|
|
Mixed-Use
properties
|
|
14,592
|
|
|
15,688
|
|
|
29,964
|
|
|
31,391
|
|
Total same property
revenue
|
|
$
|
52,650
|
|
|
$
|
57,947
|
|
|
$
|
109,463
|
|
|
$
|
116,808
|
|
|
|
|
|
|
|
|
|
|
Total Shopping
Center revenue
|
|
$
|
38,329
|
|
|
$
|
42,259
|
|
|
$
|
79,900
|
|
|
$
|
85,417
|
|
Less: Shopping Center
acquisitions, dispositions and development properties
|
|
(271)
|
|
|
—
|
|
|
(401)
|
|
|
—
|
|
Total same Shopping
Center revenue
|
|
$
|
38,058
|
|
|
$
|
42,259
|
|
|
$
|
79,499
|
|
|
$
|
85,417
|
|
|
|
|
|
|
|
|
|
|
Total Mixed-Use
property revenue
|
|
$
|
14,891
|
|
|
$
|
15,882
|
|
|
$
|
30,263
|
|
|
$
|
32,474
|
|
Less: Mixed-Use
acquisitions, dispositions and development properties
|
|
(299)
|
|
|
(194)
|
|
|
(299)
|
|
|
(1,083)
|
|
Total same Mixed-Use
property revenue
|
|
$
|
14,592
|
|
|
$
|
15,688
|
|
|
$
|
29,964
|
|
|
$
|
31,391
|
|
|
|
(2)
|
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 (3)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
(In
thousands)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
Net
income
|
$
|
10,208
|
|
|
$
|
16,750
|
|
|
$
|
27,037
|
|
|
$
|
33,827
|
|
Add: Interest
expense, net and amortization of deferred debt costs
|
12,019
|
|
|
10,793
|
|
|
21,613
|
|
|
21,860
|
|
Add: Depreciation and
amortization of deferred leasing costs
|
12,600
|
|
|
11,524
|
|
|
23,881
|
|
|
23,167
|
|
Add: General and
administrative
|
4,632
|
|
|
5,140
|
|
|
9,682
|
|
|
9,954
|
|
Property operating
income
|
39,459
|
|
|
44,207
|
|
|
82,213
|
|
|
88,808
|
|
Add (Less):
Acquisitions, dispositions and development properties
|
363
|
|
|
12
|
|
|
258
|
|
|
(617)
|
|
Total same property
operating income
|
$
|
39,822
|
|
|
$
|
44,219
|
|
|
$
|
82,471
|
|
|
$
|
88,191
|
|
|
|
|
|
|
|
|
|
Shopping
Centers
|
$
|
29,762
|
|
|
$
|
33,707
|
|
|
$
|
62,306
|
|
|
$
|
67,177
|
|
Mixed-Use
properties
|
10,060
|
|
|
10,512
|
|
|
20,165
|
|
|
21,014
|
|
Total same property
operating income
|
$
|
39,822
|
|
|
$
|
44,219
|
|
|
$
|
82,471
|
|
|
$
|
88,191
|
|
|
|
|
|
|
|
|
|
Shopping Center
operating income
|
$
|
29,965
|
|
|
$
|
33,707
|
|
|
$
|
62,614
|
|
|
$
|
67,177
|
|
Less: Shopping Center
acquisitions, dispositions and development properties
|
(203)
|
|
|
—
|
|
|
(308)
|
|
|
—
|
|
Total same Shopping
Center operating income
|
$
|
29,762
|
|
|
$
|
33,707
|
|
|
$
|
62,306
|
|
|
$
|
67,177
|
|
|
|
|
|
|
|
|
|
Mixed-Use property
operating income
|
$
|
9,494
|
|
|
$
|
10,500
|
|
|
$
|
19,599
|
|
|
$
|
21,631
|
|
Add (Less): Mixed-Use
acquisitions, dispositions and development properties
|
566
|
|
|
12
|
|
|
566
|
|
|
(617)
|
|
Total same Mixed-Use
property operating income
|
$
|
10,060
|
|
|
$
|
10,512
|
|
|
$
|
20,165
|
|
|
$
|
21,014
|
|
|
|
(3)
|
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:http://www.prnewswire.com/news-releases/saul-centers-inc-reports-second-quarter-2020-earnings-301108060.html
SOURCE Saul Centers, Inc.