Saul Centers, Inc. Reports Fourth Quarter 2022 Earnings.

BETHESDA, Md: Saul Centers, Inc. (NYSE: BFS), an equity real estate investment trust ("REIT"), announced its operating results for the quarter ended December 31, 2022 ("2022 Quarter"). Total revenue for the 2022 Quarter increased to $62.3 million from $60.2 million for the quarter ended December 31, 2021 ("2021 Quarter"). Net income decreased to $15.4 million for the 2022 Quarter from $15.9 million for the 2021 Quarter. Net income for the 2022 Quarter decreased compared to the 2021 Quarter due to (a) higher interest expense, net and amortization of deferred debt costs of $0.9 million, primarily due to higher interest rates and (b) lower expense recovery income, net of expenses, of $0.6 million, partially offset by (c) higher base rent of $1.1 million. Net income available to common stockholders was $9.1 million ($0.38 per basic and diluted share) for the 2022 Quarter compared to $9.4 million ($0.40 per basic and diluted share) for the 2021 Quarter.

Same property revenue increased 3.5% and same property operating income increased 1.1% for the 2022 Quarter compared to the 2021 Quarter. We define same property revenue as total revenue minus the revenue of properties not in operation for the entirety of the comparable reporting periods. We define same property operating income as net income plus (a) interest expense, net and amortization of deferred debt costs, (b) depreciation and amortization of deferred leasing costs, (c) general and administrative expenses, (d) change in fair value of derivatives, and (e) loss on early extinguishment of debt minus (f) gain on sale of property and (g) the results of properties not in operation for the entirety of the comparable periods. No properties were excluded from same property results for the 2022 Quarter. Shopping Center same property operating income decreased 1.2% and Mixed-Use same property operating income increased 8.0% for the 2022 Quarter compared to the 2021 Quarter. The decrease in Shopping Center same property operating income was primarily the result of lower expense recovery income, net of expenses, of $0.5 million. The increase in Mixed-Use same property operating income was primarily the result of (a) higher base rent of $0.7 million and (b) lower credit losses on operating lease receivables and corresponding reserves, collectively, of $0.2 million. Same property revenue and same property operating income are non-GAAP supplemental performance measures that the Company considers...