(Source: PRNewswire-FirstCall)
BETHESDA, Md., April 22 /PRNewswire-FirstCall/ -- Saul Centers, Inc. , an equity real estate investment trust (REIT), announced its operating results for the quarter ended March 31, 2009. Total revenue for the three months ended March 31, 2009 ("2009 Quarter") increased 2.5% to $39,689,000 compared to $38,722,000 for the three months ended March 31, 2008 ("2008 Quarter"). Operating income, which is net income available to common stockholders before gain on property dispositions, income attributable to the noncontrolling interest and preferred stock dividends, increased 4.3% to $11,550,000 for the 2009 Quarter compared to $11,073,000 for the 2008 Quarter. The Company issued approximately $79,300,000 of Series B preferred stock in March 2008, which increased the 2009 Quarter preferred stock dividends by $1,688,000 as compared to the 2008 Quarter. Net income available to common stockholders was $5,956,000 or $0.33 per diluted share for the 2009 Quarter, compared to net income available to common stockholders of $7,033,000 or $0.39 per diluted share for the 2008 Quarter.
Same property revenue for the total portfolio decreased 0.5% for the 2009 Quarter compared to the 2008 Quarter and same property operating income decreased 3.3%. The same property comparisons exclude the results of operations of properties not in operation for each of the comparable reporting quarters. Same property operating income in the shopping center portfolio decreased 5.5% for the 2009 Quarter compared to the 2008 Quarter. The primary cause of this decrease were vacancies during the quarter at three shopping centers; small shop space at Broadlands Village in Ashburn, Virginia; an anchor space at Seven Corners in Falls Church, Virginia; and an anchor space at White Oak in Silver Spring, Maryland. The vacant anchor space at both Seven Corners and White Oak has been re-leased but is not yet producing rental income. Increased property operating expenses and real estate taxes, net of recovered amounts and increased credit loss reserves also contributed to the decrease in property operating income for the 2009 Quarter. Same property operating income in the office portfolio increased 3.8% for the 2009 Quarter largely due to increased lease termination fees.
As of March 31, 2009, 92.9% of the operating portfolio, including the Northrock development project which is phasing into service, was leased compared to 95.4% at March 31, 2008. On a same property basis, 93.3% of the portfolio was leased, compared to the prior year level of 95.5%. The 2009 leasing percentages decreased due to a net decrease of approximately 178,000 square feet of leased space.
Funds from operations (FFO) available to common shareholders (after deducting preferred stock dividends) decreased 7.0% to $14,806,000 in the 2009 Quarter compared to $15,919,000 for the 2008 Quarter. On a diluted per share basis, FFO available to common shareholders decreased 5.9% to $0.64 per share for the 2009 Quarter compared to $0.68 per share for the 2008 Quarter. FFO, a widely accepted non-GAAP financial measure of operating performance for REITs, is defined as net income plus income attributable to the noncontrolling interest, extraordinary items and real estate depreciation and amortization, excluding gains from property dispositions. FFO decreased in the 2009 Quarter primarily due to the increase in preferred stock dividends of $1,688,000 ($0.07 per diluted share) which was slightly offset by lower interest expense and lower general and administrative expense.
Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. Saul Centers currently operates and manages a real estate portfolio of 51 community and neighborhood shopping center and office properties totaling approximately 8.3 million square feet of leasable area. Over 80% of the Company's property operating income is generated from properties in the metropolitan Washington, DC/Baltimore area.
Saul Centers, Inc.
