Key Highlights

  • Second quarter 2026 revenue rose to $76.8 million, while net income fell to $11.5 million from $14.2 million.
  • FFO, a non-GAAP measure, was $0.69 per share against $0.73, and Hampden House reduced it by $0.07 per share.
  • Same property net operating income, a non-GAAP measure, grew 6.9% to $52.0 million, led by Twinbrook Quarter Phase I.
  • Debt principal was $1.63 billion at June 30, with $50.8 million of scheduled principal due in 2026.

Saul Centers (NYSE:BFS) shares were trading near their 52-week low at USD 28.93 on October 19, 2026, down 1.90%. The Bethesda, Maryland-based owner of shopping centers and mixed-use properties last reported results on August 6, when second quarter revenue grew but net income and funds from operations (FFO) per share came in below the prior-year quarter. The company said Hampden House, a residential building that opened on October 1, 2025 and is still leasing up, reduced both measures.

Second quarter results: higher revenue, thinner per-share earnings

Total revenue for the quarter ended June 30, 2026 was $76.8 million, up from $70.8 million. Net income fell to $11.5 million from $14.2 million, and net income available to common stockholders was $6.0 million, or $0.24 per basic and diluted share, against $7.9 million, or $0.33. FFO available to common stockholders and noncontrolling interests, after preferred dividends, was $24.8 million, or $0.69 per share, compared with $25.4 million, or $0.73.

Hampden House reduced quarterly net income by $4.0 million, including $2.9 million of net interest expense and deferred debt cost amortization. Excluding the property, the company said net income rose $1.3 million and FFO rose $1.8 million, citing higher residential and commercial base rent. For the six months, FFO was $49.9 million in both years, or $1.40 per share versus $1.44.

Same property income, leasing and the Hampden House ramp-up

On a same property basis, revenue rose 6.9% to $72.8 million and net operating income rose 6.9% to $52.0 million. Lease-up of Twinbrook Quarter Phase I contributed $2.5 million of the $3.4 million increase. Shopping center income grew 3.6% to $36.6 million, and mixed-use income grew 15.7% to $15.5 million.

The residential portfolio excluding Hampden House was 97.3% leased at June 30, up from 90.5%. At Hampden House, 235 of 366 apartments, or 64.2%, were leased and occupied on August 3. The full portfolio of about 10.6 million square feet was 94.7% leased at June 30 against 94.0% a year earlier, though individual centers varied, and Metro Pike Center stood at 75% against 96%. More than 85% of property income comes from the Washington, D.C. and Baltimore area.

Debt, liquidity and the dividend

Debt principal totaled $1.63 billion at June 30, including $129.0 million of unhedged variable-rate borrowing under the $600.0 million credit facility. About $229.0 million was drawn on that facility and about $158.1 million was available, while cash was $5.9 million. The revolver matures July 30, 2029 and the term loan July 28, 2028, each with extension options. Scheduled principal payments are $50.8 million for the rest of 2026, $39.1 million in 2027 and $198.0 million in 2028.

This year the company refinanced three properties, including a $105.0 million, 15-year non-recourse mortgage on Clarendon Center at 6.27%. Construction loans stood at $271.8 million net, and the company guarantees repayment of the full $143.4 million Twinbrook Quarter Phase I loan and $26.6 million of the $133.0 million Hampden House loan.

Saul Centers declared common dividends of $0.59 per share in each of the first two quarters. Its June 18 announcement set a $0.59 payment for July 31 to holders of record on July 15, alongside preferred dividends payable July 15.

Outlook: lease-up, development and no guidance

The second quarter release gave no earnings guidance. Hampden House and Twinbrook Quarter Phase I remain in lease-up. At Ashland Square Phase II in Manassas, Virginia, site work began in late June, vertical construction is expected later in 2026 and completion is expected in 2028. Timetables for future Twinbrook Quarter phases and New Market are not finalized. The quarterly report states that no material litigation is pending or threatened and that no subsequent events required disclosure.