Saul Centers, Inc. (BFS) Bundle
A Brief History of H3 Company
Company Overview
As of 2024, H3 Company operates primarily in the real estate sector, focusing on both commercial and mixed-use properties. The company has made significant strides in enhancing its property portfolio over the years.
Financial Performance
In the nine months ended September 30, 2024, H3 Company reported a net income of $57.3 million, up from $51.6 million in the same period of 2023, marking a growth of 11.0%.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $57.3 million | $51.6 million | $5.7 million | 11.0% |
| Total Revenue | $200.9 million | $190.5 million | $10.4 million | 5.5% |
| Total Expenses | $53.2 million | $50.1 million | $1.1 million | 2.2% |
Revenue Breakdown
The company’s revenue for the nine months ended September 30, 2024, was primarily driven by real estate rental operations, with the following breakdown:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Shopping Centers | $140.2 million | $132.2 million | $8.0 million | 6.0% |
| Mixed-Use Properties | $60.8 million | $58.3 million | $2.5 million | 4.3% |
Operational Highlights
H3 Company has seen a steady increase in its property portfolio with a total asset value of $2.11 billion as of September 30, 2024, compared to $1.96 billion in 2023.
The company maintains a strong liquidity position with cash and cash equivalents totaling $7.2 million as of September 30, 2024, up from $6.6 million in the previous year.
Debt and Financing
As of September 30, 2024, H3 Company’s total debt stood at approximately $1.51 billion, with $1.32 billion classified as fixed-rate debt. The company has managed its interest expenses effectively, with net interest expenses recorded at $12.2 million for the third quarter of 2024.
| Debt Maturity Schedule | Amount (in thousands) |
|---|---|
| 2024 | $8,692 |
| 2025 | $243,243 |
| 2026 | $166,914 |
| 2027 | $131,878 |
| 2028 | $50,362 |
| Thereafter | $853,249 |
Future Outlook
H3 Company is poised for growth, with ongoing projects such as the Hampden House development, which is expected to add significantly to its asset base upon completion.
A Who Owns Saul Centers, Inc. (BFS)
Ownership Structure
As of September 30, 2024, the ownership of Saul Centers, Inc. (BFS) is primarily held by the B. F. Saul Company and affiliated entities controlled by B. Francis Saul II and his family members, collectively referred to as the "Saul Organization." This organization holds a significant 29.0% limited partnership interest in the Operating Partnership, represented by approximately 10.0 million convertible limited partnership units.
Convertible Limited Partnership Units
The convertible limited partnership units held by the Saul Organization can be converted into shares of Saul Centers’ common stock on a one-for-one basis, subject to certain conditions. As of the same date, approximately 628,000 units are eligible for conversion into shares of common stock.
Third-Party Investors
A third-party investor holds a 1.3% limited partnership interest in the Operating Partnership, represented by 469,740 convertible limited partnership units. Similar to the Saul Organization, these units are convertible into shares of Saul Centers’ common stock at the option of the unit holder.
Shareholder Composition
The following table summarizes the ownership structure of Saul Centers, Inc. as of September 30, 2024:
| Owner | Ownership Percentage | Convertible Units |
|---|---|---|
| Saul Organization | 29.0% | 10,000,000 |
| Third-Party Investor | 1.3% | 469,740 |
| Others | 69.7% | N/A |
Financial Overview
As of September 30, 2024, Saul Centers, Inc. reported total assets valued at $2.113 billion, with total liabilities amounting to $1.604 billion. The company’s equity stood at $508.7 million.
Recent Financial Performance
For the nine months ended September 30, 2024, Saul Centers, Inc. reported:
- Net income: $57.3 million
- Total revenue: $200.9 million
- Net cash provided by operating activities: $92.4 million
Debt Obligations
The company had approximately $1.51 billion in outstanding debt as of September 30, 2024, with approximately $1.32 billion classified as fixed-rate debt.
Preferred Stock
As of September 30, 2024, Saul Centers, Inc. had 3.0 million depositary shares representing shares of 6.125% Series D Cumulative Redeemable Preferred Stock.
Market Capitalization
As of September 30, 2024, the market capitalization of Saul Centers, Inc. is approximately $340 million based on the outstanding shares of common stock.
Conclusion on Ownership Dynamics
The ownership of Saul Centers, Inc. reflects a concentrated structure with significant influence from the Saul Organization, while also accommodating third-party investors through convertible partnership units. This framework contributes to the operational and financial strategies of the company.
Saul Centers, Inc. (BFS) Mission Statement
Company Overview
Saul Centers, Inc. (BFS) is a real estate investment trust (REIT) that focuses on the ownership, operation, and development of retail and mixed-use properties. As of September 30, 2024, the company had total assets valued at approximately $2.11 billion, with real estate investments netting about $2.01 billion.
Mission Statement
Saul Centers, Inc. is committed to maximizing long-term value for its shareholders through the acquisition, development, and management of premier retail and mixed-use properties that enhance community engagement and provide sustainable returns. The company aims to achieve operational excellence and foster strong relationships with tenants while maintaining a focus on responsible growth and environmental stewardship.
Core Values
- Integrity: Upholding the highest standards of ethical conduct in all business dealings.
- Innovation: Continuously seeking new and creative approaches to property development and management.
- Community Engagement: Actively participating in the communities where the company operates, enhancing local economies and lifestyles.
- Environmental Sustainability: Committing to sustainable practices that minimize environmental impact.
Financial Performance
As of September 30, 2024, Saul Centers reported a net income of $57.3 million for the nine months ended September 30, 2024, compared to $51.6 million for the same period in 2023. The company’s total comprehensive income attributable to common stockholders stood at $33.2 million for the nine months ended September 30, 2024.
Recent Developments
Saul Centers is currently developing several significant projects, including:
- Twinbrook Quarter: A project in Rockville, Maryland, with total expected costs of $331.5 million, of which $311.3 million has been invested to date.
- Hampden House: Located in Bethesda, Maryland, this project is expected to cost $246.4 million, with $185.2 million already invested.
Key Financial Metrics
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Total Assets | $2.11 billion | $1.99 billion |
| Net Income | $57.3 million | $51.6 million |
| Comprehensive Income | $33.2 million | $32.9 million |
| Debt to Total Asset Ratio | Under 50% | N/A |
| Residential Portfolio Leasing Rate | 98.8% | 97.5% |
Dividend Policy
Saul Centers maintains a Dividend Reinvestment Plan (DRIP) that allows shareholders to reinvest dividends into additional shares at a 3% discount from the market price. For the nine months ended September 30, 2024, the company paid $8.4 million in preferred stock dividends.
Market Position
As of September 30, 2024, the company’s commercial leasing percentage was 95.7%, an increase from 94.1% year-over-year. The average annualized base rent per square foot for commercial properties was reported at $35.54.
Conclusion
Saul Centers, Inc. continues to focus on its mission of creating long-term value through responsible property management and development, while maintaining a strong financial performance and commitment to community and environmental sustainability.
How Saul Centers, Inc. (BFS) Works
Business Model
Saul Centers, Inc. (BFS) operates primarily as a real estate investment trust (REIT), focusing on the ownership, operation, and development of retail and mixed-use properties. The company’s portfolio consists mainly of shopping centers and mixed-use properties located in the metropolitan Washington, D.C. area. As of September 30, 2024, the total assets of Saul Centers, Inc. amounted to approximately $2.11 billion.
Financial Performance
For the nine months ended September 30, 2024, Saul Centers reported total revenue of $200.9 million, an increase from $190.5 million for the same period in 2023. The breakdown of revenue is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Rental Revenue | $194,544 | $186,199 |
| Other Revenue | $6,379 | $4,325 |
Net Income
Net income for the nine months ended September 30, 2024, was $57.3 million, compared to $51.6 million in 2023. Net income attributable to common stockholders was reported as follows:
| Period | Net Income (in thousands) |
|---|---|
| 2024 | $57,345 |
| 2023 | $51,563 |
Expenses
Total expenses for the nine months ended September 30, 2024, were $143.8 million, which is an increase from $139.0 million in the prior year. The major components of expenses are highlighted below:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Property Operating Expenses | $30,312 | $27,502 |
| Real Estate Taxes | $22,852 | $22,589 |
| Interest Expense | $36,928 | $36,518 |
| General and Administrative Expenses | $17,565 | $16,125 |
Liquidity and Capital Resources
As of September 30, 2024, Saul Centers had cash and cash equivalents totaling $7.2 million, compared to $6.6 million at the same time in 2023. The net cash provided by operating activities for the nine months ended September 30, 2024, was $92.4 million, up from $85.0 million in 2023. However, net cash used in investing activities was $145.0 million, slightly down from $147.3 million in 2023.
Debt Profile
The total outstanding debt of Saul Centers, Inc. was approximately $1.51 billion as of September 30, 2024. This included:
| Debt Type | Amount (in thousands) |
|---|---|
| Fixed-Rate Debt | $1,320,000 |
| Variable-Rate Debt | $188,000 |
Development Projects
Saul Centers is actively developing several projects, including:
- Twinbrook Quarter Phase I: This project includes an 80,000 square foot supermarket, approximately 25,000 square feet of retail space, and 452 residential units. The total expected cost is approximately $331.5 million.
- Hampden House: Located in Bethesda, MD, this project will provide up to 366 apartment units and 10,100 square feet of retail space, with an expected total cost of around $246.4 million.
Market Position
As of September 30, 2024, the company's commercial leasing percentage stood at 95.7%, compared to 94.1% at the end of September 2023. This reflects a strong demand for its properties and effective management of its leasing operations.
Stock Performance
The closing share price of Saul Centers on the last trading day of September 2024 was $41.96. The company has a Dividend Reinvestment Plan (DRIP) which allows shareholders to reinvest dividends into additional shares at a discount.
Conclusion on Financial Health
Saul Centers, Inc. continues to demonstrate robust financial health, with steady revenue growth, controlled expenses, and a strategic focus on development projects that enhance its portfolio value.
How Saul Centers, Inc. (BFS) Makes Money
Revenue Streams
Saul Centers, Inc. generates revenue primarily through its real estate rental operations, which include shopping centers and mixed-use properties. For the nine months ended September 30, 2024, the company reported total revenue of $200.9 million, an increase of 5.5% from $190.5 million in the same period of 2023.
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Base Rent | $160.6 million | $155.8 million | $4.8 million | 3.1% |
| Expense Recoveries | $30.7 million | $27.7 million | $3.0 million | 10.9% |
| Percentage Rent | $1.6 million | $1.5 million | $0.1 million | 5.2% |
| Other Property Revenue | $2.1 million | $1.4 million | $0.7 million | 51.9% |
| Other Revenue | $6.4 million | $4.3 million | $2.1 million | 47.5% |
Base Rent
Base rent is the largest component of revenue for Saul Centers, representing 80% of rental revenue. In the third quarter of 2024, base rent increased by $2.2 million to $54.3 million compared to $52.1 million in the same quarter of 2023.
Expense Recoveries
Expense recoveries have also seen a significant increase, rising to $10.3 million for the third quarter of 2024, an increase of 6.1% from $9.7 million in the third quarter of 2023. This growth is attributed to higher recoverable property operating expenses.
Other Revenue
Other revenue, which includes lease termination fees and miscellaneous income, increased to $1.7 million in the third quarter of 2024 from $1.4 million in the previous year, marking a 24.4% increase.
Operating Income
Operating income for the nine months ended September 30, 2024, reached $147.8 million, compared to $140.4 million in 2023, reflecting a 5.3% increase.
| Operating Income Source | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Shopping Centers | $109.1 million | $103.5 million | $5.6 million | 5.4% |
| Mixed-Use Properties | $38.6 million | $36.9 million | $1.7 million | 4.6% |
Expenses
Total expenses for the nine months ended September 30, 2024, amounted to $143.8 million, a rise of 3.5% from $139.0 million for the same period in 2023.
| Expense Type | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Property Operating Expenses | $30.3 million | $27.5 million | $2.8 million | 10.2% |
| Real Estate Taxes | $22.9 million | $22.6 million | $0.3 million | 1.2% |
| Interest Expense, Net | $36.9 million | $36.5 million | $0.4 million | 1.1% |
| General and Administrative | $17.6 million | $16.1 million | $1.5 million | 8.9% |
Net Income
Net income for the nine months ended September 30, 2024, was $57.3 million, compared to $51.6 million for the same period in 2023, representing an increase of 11.0%.
| Net Income | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $57.3 million | $51.6 million | $5.7 million | 11.0% |
Funds From Operations (FFO)
Funds from operations (FFO), a key performance metric for real estate investment trusts (REITs), for the nine months ended September 30, 2024, totaled $84.9 million, an increase of 6.9% from $79.4 million in the same period of 2023.
| FFO | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| FFO | $84.9 million | $79.4 million | $5.5 million | 6.9% |
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Updated on 16 Nov 2024
Resources:
- Saul Centers, Inc. (BFS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Saul Centers, Inc. (BFS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Saul Centers, Inc. (BFS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.