Saul Centers, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for the quarter ended September 30, 2026, increased to $78.4 million from $72.0 million in the prior year quarter.
• Net income decreased to $12.6 million for the quarter ended September 30, 2026, from $14.0 million in the prior year quarter.
• Net income available to common stockholders decreased to $6.7 million ($0.27 per share) for the quarter ended September 30, 2026, from $7.7 million ($0.32 per share) in the prior year quarter.
• Net income for the quarter was adversely impacted by $3.7 million due to the initial operations of Hampden House, including $2.9 million in interest expense, net.
• Exclusive of Hampden House, net income increased by $2.3 million, primarily driven by $2.0 million in higher commercial base rent.
• Funds from operations (FFO) available to common stockholders and noncontrolling interests increased to $25.9 million ($0.72 per share) for the quarter ended September 30, 2026, from $25.3 million ($0.72 per share) in the prior year quarter.
• FFO available to common stockholders and noncontrolling interests was adversely impacted by $2.1 million ($0.06 per share) due to Hampden House operations.
• Exclusive of Hampden House, FFO increased by $2.7 million, driven by $2.0 million in higher commercial base rent and $0.6 million in higher residential base rent.
• For the nine months ended September 30, 2026, total revenue increased to $233.5 million from $214.7 million in the prior year period.
• Net income for the nine months ended September 30, 2026, decreased to $36.2 million from $41.0 million in the prior year period, primarily due to a $12.5 million adverse impact from Hampden House.
• Exclusive of Hampden House, net income for the nine-month period increased by $7.7 million, driven by $4.8 million in higher commercial base rent and $4.1 million in higher residential base rent, partially offset by $0.9 million in higher general and administrative costs.
• Net income available to common stockholders for the nine months ended September 30, 2026, decreased to $18.9 million ($0.78 per share) from $22.6 million ($0.93 per share) in the prior year period.
• FFO available to common stockholders and noncontrolling interests for the nine months ended September 30, 2026, totaled $75.9 million ($2.12 per share), compared to $75.2 million ($2.16 per share) in the prior year period.
• FFO for the nine-month period was adversely impacted by $7.7 million ($0.22 per share) due to Hampden House.
• Exclusive of Hampden House, FFO for the nine-month period increased by $8.3 million, driven by $4.8 million in higher commercial base rent, $4.1 million in higher residential base rent, and $0.4 million in lower credit losses, partially offset by $0.9 million in higher general and administrative costs.
• Same property revenue increased $3.5 million (4.9%) to $73.4 million for the quarter ended September 30, 2026, compared to the prior year quarter.
• Same property net operating income increased $2.5 million (5.0%) to $52.3 million for the quarter ended September 30, 2026, compared to the prior year quarter.
• Same property revenue for the nine months ended September 30, 2026, increased $13.3 million (6.4%) to $220.8 million compared to the prior year period.
• Same property net operating income for the nine months ended September 30, 2026, increased $10.2 million (7.0%) to $156.4 million compared to the prior year period.
• Shopping Center same property net operating income for the quarter ended September 30, 2026, totaled $37.4 million, a 4.6% increase, driven by $1.3 million in higher base rent and $0.4 million in lower credit losses.
• Mixed-Use same property net operating income for the quarter ended September 30, 2026, totaled $14.9 million, a 6.1% increase, driven by $1.1 million from the lease up of Twinbrook Quarter Phase I.
• Shopping Center same property net operating income for the nine months ended September 30, 2026, increased $4.1 million (3.9%), driven by $3.4 million in higher base rent and $0.8 million in lower credit losses.
• Mixed-Use same property net operating income for the nine months ended September 30, 2026, increased $6.1 million (15.2%), driven by $6.7 million from the lease up of Twinbrook Quarter Phase I.
• Total assets were $2,172.5 million as of September 30, 2026, compared to $2,162.7 million as of December 31, 2025.
• Total liabilities were $1,705.5 million as of September 30, 2026, compared to $1,685.4 million as of December 31, 2025.
• Mortgage notes payable, net, increased to $1,099.9 million as of September 30, 2026, from $1,063.5 million as of December 31, 2025.
• Revolving credit facility payable, net, decreased to $112.6 million as of September 30, 2026, from $144.7 million as of December 31, 2025.
• Construction loans payable, net, increased to $271.9 million as of September 30, 2026, from $254.7 million as of December 31, 2025.

Business Segments and Product Lines

• The Company operates a portfolio of 62 properties, including 50 community and neighborhood shopping centers and nine mixed-use properties with 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 November 2, 2026, 267 (73.0%) of 366 residential units at Hampden House were leased and occupied, with 100% of retail space leased.
• Same property revenue was favorably impacted by $1.2 million (quarter) and $7.1 million (nine months) due to the lease up of Twinbrook Quarter Phase I.
• Exclusive of Twinbrook Quarter Phase I, same property revenue increased $2.3 million (quarter) and $6.2 million (nine months), driven by higher commercial base rent, higher expense recoveries, lower credit losses, and higher residential base rent.
• Exclusive of Twinbrook Quarter Phase I, Mixed-Use same property net operating income decreased $0.2 million (quarter) and $0.6 million (nine months), primarily due to lower expense recoveries.
• The Residential portfolio was 97.1% leased as of both September 30, 2026, and September 30, 2025, excluding Hampden House.

Other Key Points

• The Company is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland.
• Hampden House operations adversely impacted net income by $3.7 million for the quarter and $12.5 million for the nine-month period.
• The Company reported a gain on disposition of property of $53,000 for the quarter and $53,000 for the nine months ended September 30, 2026.
• Preferred stock dividends totaled $2.8 million for the quarter and $8.4 million for the nine months ended September 30, 2026.
• The Company's portfolio includes three non-operating land and development properties.