BFS · Saul Centers, Inc.

Saul Centers, Inc., a self-managed equity REIT, reported first quarter 2026 results with total revenue rising 9% to $78.3 million, driven by higher rental revenue of $76.8 million versus $70.5 million in the prior year quarter. However, net income declined to $12.0 million from $12.8 million, primarily due to the startup of Hampden House, a new 366-unit residential and 10,100 sq ft retail property opened October 1, 2025, which adversely impacted results by $4.8 million including a $2.8 million reduction in capitalized interest. Excluding Hampden House, net income grew $4.0 million from higher residential base rent ($2.1 million), commercial base rent ($1.5 million), and lower credit losses ($0.3 million). Net income available to common stockholders fell to $6.3 million or $0.26 per share from $7.0 million or $0.29 per share, with Hampden House reducing it by $1.7 million or $0.07 per share. FFO available to common stockholders and noncontrolling interests held steady at $25.2 million or $0.71 per share despite Hampden House's $3.2 million drag, supported by the same rent increases. Same property revenue rose 7.4% and NOI 9.0%, boosted by $3.2 million from Twinbrook Quarter Phase I lease-up; excluding this, revenue grew 2.8% and NOI 2.5%. Shopping center same property NOI increased 3.4% to $36.5 million on higher base rent and lower credit losses, while mixed-use NOI surged 24.9% to $15.6 million due to Twinbrook. Residential portfolio leased 97.6% at quarter-end, up from 90.4%, led by The Milton at Twinbrook Quarter. Balance sheet showed stable real estate investments at $2.05 billion net, with total debt around $1.60 billion across facilities. Management highlighted Hampden House progress with 45.6% residential and 85.1% retail occupancy as of May 4, 2026, signaling ramping contributions ahead.