Saul Centers, Inc. · NYSE:BFS
Saul Centers — Shareholder Meeting (2010)
31 slides from Saul Centers's shareholder meeting presentation, Jun 13, 2010
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders We have prepared a brief slide show to present highlights of 2009 including sucessful activity in the debt markets, our core operating performance, financial results and recent development activities.
Slide 2: Debt Maturities Entering 2009
Debt Maturities Entering 2009 = No mortgage debt maturing in 2009 or 2010 = Loans maturing in December 201 | = $78 million balance outstanding — 8.1% interest rate = Secured by 6 shopping centers Liquidity and debt maturities are two critical metrics in times of uncertain credit. We started 2009 wit
Slide 3: Debt Transactions - 2009
Debt Transactions - 2009 5 new non-recourse loans totalling $1! 18 million Each loan generated net cash proceeds, $35 million in total One of the six properties remains unencumbered by debt = Shopping center generating over $1.8 million in NOI All |5-year terms, 25-year amortization, 7.5% rate Durin
Slide 4: Mortgage Debt Maturities
Mortgage Debt Maturities December, 3/1), 2009) verage maturity of mortgage debt is 8.7 years The $96 million maturity in October 2012 is now the next one we face. This represents a very manageable level of debt on the 9 properties securing this 15 year, amortizing loan placed in 1997. Three of our p
Slide 5: Debt Summary
Debt Summary March 31, 2010 90% fixed rate, nonrecourse debt Weighted average mortgage maturity = 8.7 years Average mortgage debt interest rate is 6.7% Interest coverage = 3.3 times $150 million credit line, none drawn Over $10 million in cash balances 90% of our debt is fixed rate and nonrecourse p
Slide 6: Capital Structure Highlights
Capital Structure Highlights 3/31/2010 closing price =$41.40/sh @ Common Equity ™ Preferred Equity ™ Debt At March 31, 2010, we had a total combined debt and equity capitalization of approximately $1.8 billion, compared to $1.4 billion 5 years ago, and 15% down from our high levels of approximately
Slide 7: Portfolio Leasing Percentage
all Portfolio Leasing Percentage (Excluding properties under development) | 5% 95.4% os 3% pe EL 93.6% HHI Ill 93-3% 97.99 92.8% 92.7% oe a - e The financial crisis which has engulfed our country and the world over the past few years has impacted our portfolio's operating performance, primarily as a
Slide 8: Retail Leasing Summary
Retail Leasing Summary (Excluding properties under development) 3 ° a 5 @ SG § rf a 2 = g & = 8 2 3 e & a 5 a g < 5 a With the decline in overall consumer spending, retailers continue to struggle with declining sales and limited access to capital. Declining retail sales lead to lower rental rates. W
Slide 9: Retail Same Property NOI Growth
Retail Same Property NOI Growth 5.yr avg prior to 2008 = 2,99 So e & i is) 8 £ e 5 aS 5 e Over the five years from 2003 to 2008, we achieved average annual retail net operating income growth of 2.9% on a same property basis. Retail same property growth averaged 2.5% during the 1st three quarters of
Slide 10: Funds From Operations (FFO) & Dividends
Funds From Operations (FFO) & Dividends S85 Current dividend of $2.68 A $2.57 3. re ! $2.40 equates to a anntal dividend of $|.44/share. 2008 @ FFO BF Dividends FFO results for the past 6 years are highlighted here. Over this period, absolute FFO has grown by a compounded average of 3.6% annually. C
Slide 11: Dividend as a % of FFO
Dividend as a % of FFO Low FFO payout ratio: 64% of 2009 FFO was paid a 2 © a 3 ic S ef ree ao out in dividends. 2009 «110 Over the past 5 years, we paid out an average of 66% of our FFO as dividends. As you may know, REITs are required to pay out 90% of taxable income. We have followed a policy of
Slide 12: Geographic Mix & Property Type
Geographic Mix & Property Type DC. / Baltimore _ Shopping Centers _ 82% \ 71% |. Other 18% 2009 Property Operating Income Our geographic focus continues to be in the metropolitan Washington DC market. Over 82% of our 2009 property operating income was generated in the metropolitan Washington, DC/Bal
Slide 13: Office Properties
Office Properties = |.2 million square feet =) 3 mid-rise properties produce 74% of office operating income — Operating income grew by over 3% in 2009 Our office space totals over 1.2 million square feet. Approximately 74% of the office portfolio operating income is produced from our 601 Pennsylvani
Slide 14: Flex Properties / Avenel Business Park
Sali Ceilers Weakness continues in our 1-story office flex properties, the largest being the 391,000 square foot Avenel Business Park, located in the | - 270 corridor in Gaithersburg, Maryland. The park, at 84.1% leased, is currently at its historically low leasing percentage. Prior to 2009, about 5
Slide 15: Shopping Centers
Shopping Centers (2003) Harris feeter, Lansdowne Town Center 47 retail properties generate 779% of property operating income 3] centers are grocery anchored & produce 84% of retail operating income Tenants reported sales averaging $325 per square foot Grocers reported sales averaging $450 per square
Slide 16: Favorable Demographics
Favorable Demographics Average household income within three mile raditis of $110,000. - ‘= ; a Sati! Centers’ retail $100,000 properties exceeds the National average $90,000 Wl Saul Centers Avg. $99,700 $80,000 Wl National Avg. $71,400 $70,000 The long-term success of our core portfolio hinges larg
Slide 17: Core Shopping Centers
Core Shopping Centers (2009) Smallwood Village Center, Waldorf, MD 180 retail leases signed 74% renewal rate compared to 70% previous 3 years Over 1,000,000 square feet leased lease volume increased to 689,000 square feet signed 3Q/4Q vs. 376,000 square feet signed 1|Q/2Q ers While anchor tenants pr
Slide 18: Top 10 Retail Tenants
Top !0 retail tenants Major Retail Tenants provided enlyi 207% of 2009 Revenue SF% 2009 Revenue Super Fr lc A diverse retail tenant base minimizes exposure to any one tenant's credit. Of 2009 rental revenue, only Giant Food, at 4.4%, Safeway at 3.2% and Chevy Chase Bank at 2.3% accounted for more th
Slide 19: Retail Lease Expirations
Over 50 % of base rents in place to 2014 & beyond Retail Lease Expirations Base Rent $ Base Rent % 381,000 867,000 65,000 2014 & beyond 3,964,000 6,637,000 * As of April |, 2010 Retail lease expirations for the balance of 2010 total 381,000 SF. Over 45% of the space that expired in 2010 has been suc
Slide 20: Seven Corners, Falls Church
Seven Corners, Fails Chureh, igi Saul Centers Seven Corners is a 568,000 square foot community shopping center in Falls Church, Virginia. It is anchored by a Shoppers Food Warehouse and a Home Depot. During late 2008, we signed a lease with Syms clothing store, replacing a dark 50,000 square foot an
Slide 21: White Oak
White Oak is a 354,000 square foot community shopping center located in Silver Spring, Maryland anchored by a Giant supermarket, and a Sears. During 2009, we successfully re-tenanted an expiring Rite Aid and adjacent former Blockbuster store, by signing a 13,000 square foot Walgreens lease. Walgreen
Slide 22: Southdale
HOWE DEC fae ae Michaels Southdale is a 484,000 square foot community shopping center located in Glen Burnie, Maryland, south of Baltimore. The center is anchored by Home Depot, Marshall's, Value City Furniture, and a Fresh World grocery store. Circuit City vacated their 37,000 square foot store in
Slide 23: Ashburn Village
Ashburn Village Vinee Sent-conor: Ashburn Village is a 222,000 square foot, Giant anchored shopping center, located off Route 7 in Loudoun County, Virginia. We developed the initial phase of Ashburn Village in 1994, our first entry into Loudoun County. While one of the dominant centers in Loudoun Co
Slide 24: Seabreeze Plaza, Palm Harbor, Florida
Seabreeze Plaza, Palin Harbor, Florida Gaul Centers Seabreeze is a 147,000 square foot, Publix anchored neighborhood center located in Palm Harbor, Florida, just outside of Tampa. This Publix has the highest sales per square foot of any grocery store in our portfolio, with sales volume in excess of
Slide 25: Northrock shopping center completed
In early 2009, we completed construction of Northrock shopping center, a neighborhood center totaling approximately 103,000 square feet of leasable area. The center is in Warrenton, Virginia along heavily traveled US Route 29. In June, 2009, Harris Teeter opened a 52,700 square foot grocery store. T
Slide 26: Westview Village completed
We also just completed construction of Westview Village on MD Route 85 in Frederick, Maryland. This development includes 60,000 square feet of retail shop space, 30,000 square feet of professional office space, and 11,000 square feet of pad space. The 101,000 square foot center is 30% leased, with a
Slide 27: Clarendon Center
Clarendon Genter 244 luxury apartments 42,000 SF ground floor retail 170,000 SF Class “A” office 2'city blocks adjacent to Metro station Amenities include indoor pool, fitness center, community room Salt Our Clarendon Center development will be comprised of a residential tower with 244 luxury apartm
Slide 28: Clarendon Center construction update
Here is a recent construction photo of the development. Construction has topped out on the South block and interior work is proceeding. The development is on schedule, with construction to be completed by the end of 2010. A total of 14,000 square feet of the 42,000 square feet of ground floor retail
Slide 29: Clarendon Center North Block
Clarendon Center North Block The North block will contain ground floor retail under 5 stories of office space. Several office leases are under negotiation, but there are no signed leases yet to report. A total of $130 million of the estimated $195 million of total project cost has been incurred to d
Slide 30: Total Shareholder Return
Total Shareholder Return (assumes reinvestment of dividends) si8o-| 160: 140-4 | | T T 2004 Dee 2005 Dec 1006 De Dec2008 Dee 2009 Mar 2010: Saul Centers NAREIT Equity Russell 2000. During the past twelve months, we have rebounded from a tough total return decline during 2008 and through the 1st quar
Slide 31: Closing remarks
We remain committed to, and confident in, the long-term performance of our core retail and office properties. We feel we are prepared to endure the potential for continued economic stress, with cash reserves and a strong balance sheet. 31