0000907254-26-000006
SEC filingSaul Centers, Inc. reported total revenue of $289.8 million for fiscal year 2025, driven primarily by rental revenue of $284.4 million. Net income was $49.2 million, with net income available to common stockholders at $26.3 million after accounting for $11.2 million in preferred stock dividends and $11.7 million attributable to noncontrolling interests. The company generated $99.8 million in net cash from operating activities, while investing activities used $95.8 million primarily for additions to real estate investments and development projects. The balance sheet shows total assets of $2.16 billion, with total liabilities of $1.69 billion and total equity of $477.3 million. The company maintained a total portfolio leased percentage of 94.6% at year-end, with shopping centers at 95.6% leased and mixed-use properties at 88.7% leased.
Saul Centers, Inc. reported total revenue of $289.8 million for fiscal year 2025, consisting of $284.4 million in rental revenue and $5.5 million in other revenue. Total expenses were $240.7 million, including property operating expenses of $52.0 million, real estate taxes of $32.4 million, interest expense of $70.5 million, depreciation and amortization of $58.8 million, and general and administrative expenses of $26.9 million. The company recorded gains on dispositions of properties of $120,000. Net income was $49.2 million, with $37.5 million attributable to Saul Centers, Inc. and $11.7 million attributable to noncontrolling interests. After preferred stock dividends of $11.2 million, net income available to common stockholders was $26.3 million, with basic and diluted earnings per share of $1.00 each.
The company's revenue is primarily derived from rental operations across its portfolio of shopping centers and mixed-use properties. Rental revenue accounted for 98.1% of total revenue at $284.4 million, with other revenue contributing $5.5 million. The company's shopping centers generated consistent traffic through grocery stores, discount department stores, and drug stores that offer day-to-day necessities. The mixed-use properties contain approximately 2.8 million square feet of GLA, composed of 1.0 million square feet of office space, 0.3 million square feet of retail space, and 1,824 apartments. All mixed-use properties are located in the Washington, DC/Baltimore metropolitan area.
The company's operating performance resulted in net income of $49.2 million, representing a net margin of approximately 17.0% based on total revenue. The expense structure shows property operating expenses of $52.0 million (17.9% of revenue), real estate taxes of $32.4 million (11.2% of revenue), and interest expense of $70.5 million (24.3% of revenue). Depreciation and amortization totaled $58.8 million (20.3% of revenue), while general and administrative expenses were $26.9 million (9.3% of revenue). The company's profitability was supported by gains on dispositions of properties totaling $120,000.
Net cash provided by operating activities was $99.8 million, driven by net income of $49.2 million adjusted for non-cash items including depreciation and amortization of $58.8 million. Net cash used in investing activities was $95.8 million, primarily for additions to real estate investments ($43.1 million) and development projects ($52.8 million). Net cash used in financing activities was $5.5 million, including distributions to preferred stockholders ($11.2 million), common stockholders ($57.1 million), and noncontrolling interests ($25.1 million). The balance sheet shows total assets of $2.16 billion, with real estate investments net of accumulated depreciation at $2.06 billion. Total liabilities were $1.69 billion, including mortgage notes payable of $1.06 billion and construction loans payable of $254.7 million. Total equity was $477.3 million, with $307.8 million attributable to Saul Centers, Inc. and $169.4 million to noncontrolling interests.
The company's primary strategy is to continue diversifying assets through development of transit-oriented, residential mixed-use projects and expansion of grocery-anchored shopping centers in the Washington, DC/Baltimore metropolitan area. The company has a pipeline of entitled sites for development of up to 2,500 apartment units and 850,000 square feet of retail and office space, all located proximate to Washington Metropolitan Area Transit Authority red line Metro stations in Montgomery County, Maryland. The company recently entered into a lease with Publix to develop a new grocery store at Ashland Square in Prince William County, Virginia, expected to comprise approximately 124,000 square feet of retail space. The company maintains a ratio of total debt to total asset value under 50% and has approximately $96.2 million available under its credit facility as of December 31, 2025.