Saul Centers Inc (BFS) Reports 4.4% Increase in Total Revenue for Q3 2023
Total revenue for Q3 2023 increased by 4.4% to $63.8 million from $61.1 million in Q3 2022.
Net income for Q3 2023 increased by 7.8% to $16.7 million from $15.5 million in Q3 2022.
Funds from operations (FFO) available to common stockholders and noncontrolling interests increased to $26.0 million in Q3 2023 from $24.9 million in Q3 2022.
As of September 30, 2023, 94.2% of the commercial portfolio was leased, compared to 93.0% as of September 30, 2022.
On November 2, 2023, Saul Centers Inc (NYSE:BFS), an equity real estate investment trust (REIT), announced its operating results for the third quarter of 2023. The company reported a significant increase in total revenue, net income, and funds from operations (FFO).
Financial Highlights
The total revenue for Q3 2023 increased by 4.4% to $63.8 million from $61.1 million in Q3 2022. This increase was primarily due to higher commercial and residential base rent, lower loss on early extinguishment of debt, and lower general and administrative costs. However, these gains were partially offset by higher interest expense and lower recovery income.
Net income for Q3 2023 increased by 7.8% to $16.7 million from $15.5 million in Q3 2022. Net income available to common stockholders increased to $10.0 million, or $0.42 per basic and diluted share, for the 2023 Quarter from $9.2 million, or $0.38 per basic and diluted share, for the 2022 Quarter.
Performance of Property Segments
Same property revenue increased by $2.7 million, or 4.4%, and same property operating income increased by $1.4 million, or 3.1%, for the 2023 Quarter compared to the 2022 Quarter. Shopping Center same property operating income for the 2023 Quarter totaled $34.1 million, a $0.4 million increase from the 2022 Quarter. Mixed-Use same property operating income totaled $12.3 million, a $1.0 million increase from the 2022 Quarter.
Funds from Operations (FFO)
FFO available to common stockholders and noncontrolling interests increased to $26.0 million, or $0.78 and $0.76 per basic and diluted share, respectively, in the 2023 Quarter compared to $24.9 million, or $0.75 and $0.73 per basic and diluted share, respectively, in the 2022 Quarter.
Portfolio Leasing Status
As of September 30, 2023, 94.2% of the commercial portfolio was leased, compared to 93.0% as of September 30, 2022. The residential portfolio was 97.5% leased compared to 97.2% as of September 30, 2022.
Outlook
Despite the challenges posed by the COVID-19 pandemic, Saul Centers Inc (NYSE:BFS) has demonstrated resilience and adaptability. The company continues to actively engage in rent collection efforts and work with tenants who have requested rent deferrals. However, the company cautions that there can be no assurance that such efforts or future efforts will be successful.
About Saul Centers Inc (NYSE:BFS)
Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 61 properties, which includes 50 community and neighborhood shopping centers and seven mixed-use properties with approximately 9.8 million square feet of leasable area.
Explore the complete 8-K earnings release (here) from Saul Centers Inc for further details.
This article first appeared on GuruFocus.
