Saul Centers (BFS) investor relations material

Executive summary

• Revenue for Q2 2026 rose 8.5% year-over-year to $76.8 million, driven by new developments and higher base rent, but net income declined to $11.5 million from $14.2 million due to the initial operations of Hampden House, which had a $4.0 million adverse impact.

• For the six months ended June 30, 2026, revenue increased 8.7% to $155.1 million, while net income fell to $23.6 million from $27.0 million, primarily due to $8.8 million in expenses from Hampden House.

• Same property net operating income (NOI) increased 6.9% for the quarter and 7.9% for the six-month period, with significant contributions from the lease-up of Twinbrook Quarter Phase I.

• Residential and retail leasing at Hampden House continued, with 64.2% of residential units and 85.1% of retail space leased as of August 3, 2026.

Financial highlights

• Q2 2026 rental revenue was $75.4 million, up from $69.4 million year-over-year; total revenue reached $76.8 million.

• Net income attributable to common stockholders was $6.0 million ($0.24 per share) for Q2 2026, down from $7.9 million ($0.33 per share) in Q2 2025.

• Funds From Operations (FFO) available to common stockholders and noncontrolling interests for Q2 2026 was $24.8 million ($0.69 per share), down 2.3% year-over-year.

• Total assets as of June 30, 2026 were $2.16 billion; total liabilities were $1.69 billion; total equity was $470 million.

• Same property NOI margin for Q2 2026 was $52.0 million on $72.8 million same property revenue (71%).

Outlook and guidance

• Management expects continued growth from the lease-up of new developments, especially Twinbrook Quarter and Hampden House, and ongoing expansion of grocery-anchored shopping centers.

• The company maintains a debt-to-asset value ratio under 50% and has $158.1 million available under its credit facility.

• Construction at Ashland Square Phase II is underway, with completion expected in 2028.

• Forward-looking statements caution about macroeconomic risks, tenant credit, and financing conditions.