Saul Centers, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for the quarter ended June 30, 2026, increased to $76.8 million from $70.8 million in the same period in 2025.
• Net income decreased to $11.5 million for the quarter ended June 30, 2026, from $14.2 million in the prior year period.
• Net income available to common stockholders decreased to $6.0 million ($0.24 per share) for the quarter ended June 30, 2026, from $7.9 million ($0.33 per share) in 2025.
• Funds from operations (FFO) available to common stockholders and noncontrolling interests decreased to $24.8 million ($0.69 per share) for the quarter ended June 30, 2026, from $25.4 million ($0.73 per share) in 2025.
• For the six months ended June 30, 2026, total revenue increased to $155.1 million from $142.7 million in 2025.
• Net income for the six months ended June 30, 2026, decreased to $23.6 million from $27.0 million in 2025.
• Net income available to common stockholders for the six months ended June 30, 2026, decreased to $12.3 million ($0.50 per share) from $14.9 million ($0.62 per share) in 2025.
• FFO available to common stockholders and noncontrolling interests for the six months ended June 30, 2026, totaled $49.9 million ($1.40 per share), compared to $49.9 million ($1.44 per share) in 2025.
• Same property revenue increased $4.7 million (6.9%) for the quarter ended June 30, 2026, compared to 2025.
• Same property net operating income increased $3.4 million (6.9%) for the quarter ended June 30, 2026, compared to 2025.
• Same property revenue increased $9.8 million (7.2%) for the six months ended June 30, 2026, compared to 2025.
• Same property net operating income increased $7.7 million (7.9%) for the six months ended June 30, 2026, compared to 2025.
• Shopping Center same property net operating income totaled $36.6 million for the quarter ended June 30, 2026, a 3.6% increase from 2025.
• Mixed-Use same property net operating income totaled $15.5 million for the quarter ended June 30, 2026, a 15.7% increase from 2025.
• Shopping Center same property net operating income increased $2.5 million (3.5%) for the six months ended June 30, 2026, compared to 2025.
• Mixed-Use same property net operating income increased $5.2 million (20.1%) for the six months ended June 30, 2026, compared to 2025.
• Total real estate investments, net, were $2,044.7 million as of June 30, 2026, compared to $2,055.6 million as of December 31, 2025.
• Total liabilities were $1,689.9 million as of June 30, 2026, compared to $1,685.4 million as of December 31, 2025.
• Mortgage notes payable, net, increased to $1,108.0 million as of June 30, 2026, from $1,063.5 million as of December 31, 2025.
• Revolving credit facility payable, net, decreased to $85.3 million as of June 30, 2026, from $144.7 million as of December 31, 2025.
• Construction loans payable, net, increased to $271.8 million as of June 30, 2026, from $254.7 million as of December 31, 2025.

Guidance and Future Outlook

• No forward guidance, future growth projections, or long-term goals were stated in the press release.

Business Segments and Product Lines

• The Company operates a portfolio of 62 properties, including 50 community and neighborhood shopping centers, nine mixed-use properties, and three non-operating land and development properties, totaling approximately 10.6 million square feet of leasable area.
• Over 85% of property net operating income is generated by properties in the Washington, D.C./Baltimore metropolitan area.
• Hampden House, a mixed-use property, commenced operations on October 1, 2025, and was excluded from same property results.
• As of August 3, 2026, 64.2% (235 of 366) of residential units at Hampden House were leased, and 85.1% (8,600 of 10,100) of retail space was leased.
• The Residential portfolio was 97.3% leased at June 30, 2026, compared to 90.5% at June 30, 2025.
• Excluding The Milton at Twinbrook Quarter and Hampden House, the Residential portfolio was 97.6% leased at June 30, 2026, compared to 96.6% at June 30, 2025.
• The Milton at Twinbrook Quarter occupancy increased to 96.7% at June 30, 2026, from 77.0% at June 30, 2025.
• Twinbrook Quarter Phase I lease-up contributed $2.7 million to same property revenue and $2.5 million to same property net operating income for the quarter ended June 30, 2026.
• Exclusive of Twinbrook Quarter Phase I, same property revenue increased $2.0 million for the quarter, driven by higher commercial base rent ($1.3 million) and higher expense recoveries ($0.9 million).
• Exclusive of Twinbrook Quarter Phase I, same property net operating income increased $0.9 million for the quarter, driven by higher commercial base rent ($1.3 million) partially offset by lower expense recoveries ($0.4 million).
• Exclusive of Hampden House, net income increased $1.3 million for the quarter, driven by higher residential base rent ($1.4 million) and higher commercial base rent ($1.2 million), partially offset by higher general and administrative costs ($0.4 million), higher interest expense ($0.3 million), and higher depreciation ($0.3 million).
• Exclusive of Hampden House, FFO available to common stockholders and noncontrolling interests increased $1.8 million for the quarter, driven by higher residential base rent ($1.4 million) and higher commercial base rent ($1.2 million), partially offset by higher general and administrative costs ($0.4 million) and higher interest expense ($0.3 million).
• Exclusive of Hampden House, net income increased $5.4 million for the six months ended June 30, 2026, driven by higher residential base rent ($3.5 million) and higher commercial base rent ($2.8 million), partially offset by higher general and administrative costs ($0.8 million).
• Exclusive of Hampden House, FFO available to common stockholders and noncontrolling interests increased $5.6 million for the six months ended June 30, 2026, driven by higher residential base rent ($3.5 million) and higher commercial base rent ($2.8 million), partially offset by higher general and administrative costs ($0.8 million).
• Exclusive of Twinbrook Quarter Phase I, Mixed-Use same property net operating income decreased $0.4 million for the quarter, primarily due to lower expense recoveries ($0.3 million).
• Exclusive of Twinbrook Quarter Phase I, Mixed-Use same property net operating income decreased $0.4 million for the six months ended June 30, 2026, primarily due to higher credit losses on operating lease receivables ($0.4 million).
• Shopping Center same property net operating income for the six months ended June 30, 2026, increased due to higher base rent ($2.1 million) and lower credit loss on operating lease receivables ($0.5 million).

Market and Competitive Landscape

• No specific market trends, competition details, or market share data were provided in the press release.

Risks and Challenges

• Initial operations of Hampden House adversely impacted net income by $4.0 million for the quarter and $8.8 million for the six months ended June 30, 2026, primarily due to interest expense and amortization of deferred debt costs.
• Risks identified in the Safe Harbor Statement include macroeconomic conditions, geopolitical instability, rising inflation, tenant ability to pay rent, reliance on anchor tenants, financing risks, interest rate increases, development activity risks, adverse trends in retail/office/residential sectors, cybersecurity risks, and REIT status compliance risks.

Management Commentary and Tone

• Management noted that net income and FFO were adversely impacted by the initial operations of Hampden House, which began charging costs to expense while revenue grows with occupancy.
• Management highlighted that exclusive of Hampden House and Twinbrook Quarter Phase I, performance was driven by higher base rents in residential and commercial sectors.
• No direct quotes from management were included in the press release text.

Analyst Questions and Answers

• No analyst questions and answers were included in the press release text.

Other Key Points

• The Company is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland.
• Preferred stock dividends totaled $2.8 million for the quarter and $5.6 million for the six months ended June 30, 2026.
• There were no gains or losses on property dispositions for the quarter ended June 30, 2026, compared to a $120,000 gain in the prior year quarter.
• General and administrative expenses increased to $6.8 million for the quarter ended June 30, 2026, from $6.4 million in 2025.
• Interest expense, net and amortization of deferred debt costs increased to $20.0 million for the quarter ended June 30, 2026, from $16.8 million in 2025.
• Depreciation and amortization of deferred leasing costs increased to $16.0 million for the quarter ended June 30, 2026, from $14.1 million in 2025.
• Property operating expenses increased to $13.6 million for the quarter ended June 30, 2026, from $11.4 million in 2025.
• Real estate taxes increased to $8.8 million for the quarter ended June 30, 2026, from $8.0 million in 2025.
• Cash and cash equivalents were $5.9 million as of June 30, 2026, compared to $8.7 million as of December 31, 2025.
• Accounts receivable and accrued income, net, were $62.8 million as of June 30, 2026, compared to $60.8 million as of December 31, 2025.
• Construction in progress increased to $116.4 million as of June 30, 2026, from $110.0 million as of December 31, 2025.
• Noncontrolling interests in equity were $173.6 million as of June 30, 2026, compared to $169.4 million as of December 31, 2025.