10-Q

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

For The Quarterly Period Ended September 30, 2015

Commission File Number 1-12254

SAUL CENTERS, INC.

(Exact name of registrant as specified in its charter)

Maryland	52-1833074
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

7501 Wisconsin Avenue, Bethesda, Maryland 20814

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code (301) 986-6200

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days.    YES   x    NO  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES   x    NO   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     YES  o    NO  x

Number of shares of common stock, par value $0.01 per share outstanding as of October 30, 2015: 21.2 million.

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SAUL CENTERS, INC.

Table of Contents

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
(a) Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014	4
(b) Consolidated Statements of Operations for the three and nine months ended September 30, 2015 and 2014	5
(c) Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014	6
(d) Consolidated Statement of Stockholders’ Equity for the nine months ended September 30, 2015	7
(e) Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014	8
(f) Notes to Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(a) Critical Accounting Policies	27
(b) Results of Operations:
Same Property Revenue	29
Same Property Operating Income	30
Three months ended September 30, 2015 compared to three months ended September 30, 2014	30
Nine months ended September 30, 2015 compared to nine months ended September 30, 2014	32
(c) Liquidity and Capital Resources	33
Item 3. Quantitative and Qualitative Disclosures About Market Risk	40
Item 4. Controls and Procedures	40
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	41
Item 1A. Risk Factors	41
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3. Defaults Upon Senior Securities	41
Item 4. Mine Safety Disclosures	41
Item 5. Other Information	41
Item 6. Exhibits	42
Signatures	45

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PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments necessary for the fair presentation of the financial position and results of operations of Saul Centers, Inc. for the interim periods have been included. All such adjustments are of a normal recurring nature. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements of Saul Centers, Inc. for the year ended December 31, 2014, which are included in its Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of results to be expected for the year.

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Saul Centers, Inc.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)	September 30, 2015			December 31, 2014
	(Unaudited)
Assets
Real estate investments
Land	$	424,837		$	420,622
Buildings and equipment	1,110,255			1,109,276
Construction in progress	69,175			30,261
	1,604,267			1,560,159
Accumulated depreciation	(416,531		)	(396,617		)
	1,187,736			1,163,542
Cash and cash equivalents	8,922			12,128
Accounts receivable and accrued income, net	50,843			46,784
Deferred leasing costs, net	26,891			26,928
Prepaid expenses, net	8,115			4,093
Deferred debt costs, net	9,091			9,874
Other assets	5,352			3,638
Total assets	$	1,296,950		$	1,266,987
Liabilities
Notes payable	$	807,990		$	808,997
Revolving credit facility payable	30,000			43,000
Construction loan payable	31,413			5,391
Dividends and distributions payable	15,329			14,352
Accounts payable, accrued expenses and other liabilities	31,701			23,537
Deferred income	32,520			32,453
Total liabilities	948,953			927,730
Stockholders’ equity
Preferred stock, 1,000,000 shares authorized:
Series C Cumulative Redeemable, 72,000 shares issued and outstanding	180,000			180,000
Common stock, $0.01 par value, 40,000,000 shares authorized, 21,177,762 and 20,947,141 shares issued and outstanding, respectively	212			209
Additional paid-in capital	300,230			287,995
Accumulated deficit	(179,102		)	(173,774		)
Accumulated other comprehensive loss	(2,272		)	(1,894		)
Total Saul Centers, Inc. stockholders’ equity	299,068			292,536
Noncontrolling interest	48,929			46,721
Total stockholders’ equity	347,997			339,257
Total liabilities and stockholders’ equity	$	1,296,950		$	1,266,987

The Notes to Financial Statements are an integral part of these statements.

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Saul Centers, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share amounts)	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Revenue
Base rent	$	42,431		$	41,452		$	125,786		$	123,053
Expense recoveries	8,181			7,734			24,710			24,348
Percentage rent	157			187			1,153			1,092
Other	1,607			1,222			4,526			7,335
Total revenue	52,376			50,595			156,175			155,828
Operating expenses
Property operating expenses	6,308			6,316			20,120			20,039
Provision for credit losses	621			170			1,281			480
Real estate taxes	5,933			5,594			17,710			16,631
Interest expense and amortization of deferred debt costs	11,229			11,584			33,988			34,537
Depreciation and amortization of deferred leasing costs	11,131			10,256			32,382			30,745
General and administrative	3,802			3,837			11,712			12,540
Acquisition related costs	57			359			78			738
Predevelopment expenses	57			—			57			503
Total operating expenses	39,138			38,116			117,328			116,213
Operating income	13,238			12,479			38,847			39,615
Change in fair value of derivatives	(6		)	1			(12		)	(6		)
Gain on sale of property	—			—			11			6,069
Net Income	13,232			12,480			38,846			45,678
Noncontrolling interests
Income attributable to noncontrolling interests	(2,617		)	(2,374		)	(7,628		)	(9,231		)
Net income attributable to Saul Centers, Inc.	10,615			10,106			31,218			36,447
Preferred stock dividends	(3,093		)	(3,206		)	(9,281		)	(9,619		)
Net income attributable to common stockholders	$	7,522		$	6,900		$	21,937		$	26,828
Per share net income attributable to common stockholders
Basic and diluted	$	0.36		$	0.33		$	1.04		$	1.29
Dividends declared per common share outstanding	$	0.43		$	0.40		$	1.29		$	1.20

The Notes to Financial Statements are an integral part of these statements.

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Saul Centers, Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars in thousands)	2015			2014			2015			2014
Net income	$	13,232		$	12,480		$	38,846		$	45,678
Other comprehensive income
Change in unrealized loss on cash flow hedge	(561		)	374			(510		)	(273		)
Total comprehensive income	12,671			12,854			38,336			45,405
Comprehensive income attributable to noncontrolling interests	(2,471		)	(2,470		)	(7,496		)	(9,161		)
Total comprehensive income attributable to Saul Centers, Inc.	10,200			10,384			30,840			36,244
Preferred stock dividends	(3,093		)	(3,206		)	(9,281		)	(9,619		)
Total comprehensive income attributable to common stockholders	$	7,107		$	7,178		$	21,559		$	26,625

The Notes to Financial Statements are an integral part of these statements.

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Saul Centers, Inc.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except per share amounts)	Preferred Stock		Common Stock		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive (Loss)			Total Saul Centers, Inc.			Noncontrolling Interest			Total
Balance, December 31, 2014	$	180,000	$	209	$	287,995	$	(173,774	)	$	(1,894	)	$	292,536		$	46,721		$	339,257
Issuance of 230,621 shares of common stock:
153,897 shares pursuant to dividend reinvestment plan	—		2		8,011		—			—			8,013			—			8,013
76,724 shares due to exercise of employee stock options and issuance of directors’ deferred stock	—		1		4,224		—			—			4,225			—			4,225
Issuance of 78,101 partnership units pursuant to dividend reinvestment plan	—		—		—		—			—			—			4,060			4,060
Net income	—		—		—		31,218			—			31,218			7,628			38,846
Change in unrealized loss on cash flow hedge	—		—		—		—			(378		)	(378		)	(132		)	(510		)
Series C preferred stock distributions	—		—		—		(6,188		)	—			(6,188		)	—			(6,188		)
Common stock distributions	—		—		—		(18,159		)	—			(18,159		)	(6,219		)	(24,378		)
Distributions payable on Series C preferred stock ($42.97/share)	—		—		—		(3,093		)	—			(3,093		)	—			(3,093		)
Distributions payable common stock ($0.43/share) and distributions payable partnership units ($0.43/unit)	—		—		—		(9,106		)	—			(9,106		)	(3,129		)	(12,235		)
Balance, September 30, 2015	$	180,000	$	212	$	300,230	$	(179,102	)	$	(2,272	)	$	299,068		$	48,929		$	347,997

The Notes to Financial Statements are an integral part of these statements.

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Saul Centers, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Nine months ended September 30,
(Dollars in thousands)	2015			2014
Cash flows from operating activities:
Net income	$	38,846		$	45,678
Adjustments to reconcile net income to net cash provided by operating activities:
Change in fair value of derivatives	12			6
Gain on sale of property	(11		)	(6,069		)
Depreciation and amortization of deferred leasing costs	32,382			30,745
Amortization of deferred debt costs	1,094			969
Non cash compensation costs of stock grants and options	1,136			977
Provision for credit losses	1,281			480
Increase in accounts receivable and accrued income	(5,340		)	(3,282		)
Additions to deferred leasing costs	(4,125		)	(2,830		)
Increase in prepaid expenses	(4,022		)	(2,825		)
(Increase) decrease in other assets	1,590			(355		)
Increase in accounts payable, accrued expenses and other liabilities	1,816			4,172
Increase (decrease) in deferred income	67			(1,537		)
Net cash provided by operating activities	64,726			66,129
Cash flows from investing activities:
Acquisitions of real estate investments (1)	(4,894		)	(48,545		)
Additions to real estate investments	(13,271		)	(11,174		)
Additions to development and redevelopment projects	(31,748		)	(10,193		)
Proceeds from sale of property	32			6,679
Net cash used in investing activities	(49,881		)	(63,233		)
Cash flows from financing activities:
Proceeds from notes payable (1)	46,000			—
Repayments on notes payable	(47,007		)	(16,462		)
Proceeds from revolving credit facility	15,000			41,000
Repayments on revolving credit facility	(28,000		)	(11,000		)
Proceeds from construction loan	26,022			1,859
Additions to deferred debt costs	(311		)	(1,286		)
Proceeds from the issuance of:
Common stock	11,102			12,054
Partnership units	4,060			8,877
Distributions to:
Series A preferred stockholders	—			(2,400		)
Series C preferred stockholders	(9,281		)	(7,219		)
Common stockholders	(26,538		)	(23,997		)
Noncontrolling interests	(9,098		)	(8,597		)
Net cash used in financing activities	(18,051		)	(7,171		)
Net decrease in cash and cash equivalents	(3,206		)	(4,275		)
Cash and cash equivalents, beginning of period	12,128			17,297
Cash and cash equivalents, end of period	$	8,922		$	13,022
Supplemental discussion of non-cash investing and financing activities: (1) The 2014 acquisition of real estate and proceeds from notes payable each exclude $11,000 in connection with the sale and leaseback of the Company's Olney property.

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Notes to Consolidated Financial Statements (Unaudited)

1. Organization, Formation and Structure

Saul Centers, Inc. (“Saul Centers”) was incorporated under the Maryland General Corporation Law on June 10, 1993, and operates as a real estate investment trust (a “REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). The Company is required to annually distribute at least 90% of its REIT taxable income (excluding net capital gains) to its stockholders and meet certain organizational and other requirements. Saul Centers has made and intends to continue to make regular quarterly distributions to its stockholders. Saul Centers, together with its wholly-owned subsidiaries and the limited partnerships of which Saul Centers or one of its subsidiaries is the sole general partner, are referred to collectively as the “Company.” B. Francis Saul II serves as Chairman of the Board of Directors and Chief Executive Officer of Saul Centers.

Saul Centers was formed to continue and expand the shopping center business previously owned and conducted by the B. F. Saul Real Estate Investment Trust, the B. F. Saul Company and certain other affiliated entities, each of which is controlled by B. Francis Saul II and his family members (collectively, the “Saul Organization”). On August 26, 1993, members of the Saul Organization transferred to Saul Holdings Limited Partnership, a newly formed Maryland limited partnership (the “Operating Partnership”), and two newly formed subsidiary limited partnerships (the “Subsidiary Partnerships,” and, collectively with the Operating Partnership, the “Partnerships”), shopping center and mixed-use properties and the management functions related to the transferred properties. Since its formation, the Company has developed and purchased additional properties.

The following table lists the properties acquired, in development and disposed since December 31, 2013.

Name of Property	Location	Type	Year of Acquisition/ Development/Disposition
Acquisitions
1580 Rockville Pike	Rockville, MD	Shopping Center	2014
1582 Rockville Pike	Rockville, MD	Shopping Center	2014
750 N. Glebe Road	Arlington, VA	Shopping Center	2014
730 N. Glebe Road	Arlington, VA	Shopping Center	2014
726 N. Glebe Road	Arlington, VA	Shopping Center	2015
1584 Rockville Pike	Rockville, MD	Shopping Center	2014
Developments
Park Van Ness	Washington, DC	Mixed-Use	2013-2015
Dispositions
Giant	Baltimore, MD	Shopping Center	2014

As of September 30, 2015, the Company’s properties (the “Current Portfolio Properties”) consisted of 50 operating shopping center properties (the “Shopping Centers”), six mixed-use properties which are comprised of office, retail and multi-family residential uses, one of which is held for sale, (the “Mixed-Use Properties”) and three (non-operating) development properties.

2. Summary of Significant Accounting Policies

Nature of Operations

The Company, which conducts all of its activities through its subsidiaries, the Operating Partnership and Subsidiary Partnerships, engages in the ownership, operation, management, leasing, acquisition, renovation, expansion, development and financing of community and neighborhood shopping centers and mixed-use properties, primarily in the Washington, DC/Baltimore metropolitan area.

Because the properties are located primarily in the Washington, DC/Baltimore metropolitan area, the Company is subject to a concentration of credit risk related to these properties. A majority of the Shopping Centers are anchored by one or more major tenants. As of September 30, 2015, 31 of the Shopping Centers were anchored by a grocery store and offer primarily day-to-day necessities and services. Two tenants individually accounted for 2.5% or more of the Company’s total revenue for the nine months endedSeptember 30, 2015. Giant Food, a tenant at nine Shopping Centers, and Safeway, a tenant at eight Shopping Centers, individually accounted for 4.5% and 2.5%, respectively, of the Company's total revenue for the nine months endedSeptember 30, 2015.

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Notes to Consolidated Financial Statements (Unaudited)

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the accounts of Saul Centers and its subsidiaries, including the Operating Partnership and Subsidiary Partnerships, which are majority owned by Saul Centers. All significant intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments necessary for the fair presentation of the financial position and results of operations of Saul Centers, Inc. for the interim periods have been included. All such adjustments are of a normal recurring nature. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements of Saul Centers, Inc. for the year ended December 31, 2014, which are included in its Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of results to be expected for the year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Accounts Receivable, Accrued Income and Allowance for Doubtful Accounts

Accounts receivable primarily represent amounts currently due from tenants in accordance with the terms of the respective leases. Receivables are reviewed monthly and reserves are established with a charge to current period operations when, in the opinion of management, collection of the receivable is doubtful. Accounts receivable in the accompanying financial statements are shown net of an allowance for doubtful accounts of approximately $1.6 million and $0.7 million at September 30, 2015 and December 31, 2014, respectively.

In addition to rents due currently, accounts receivable includes approximately $40.6 million and $38.7 million, at September 30, 2015 and December 31, 2014, respectively, net of allowance for doubtful accounts totaling $0.5 million and $0.3 million, respectively, representing minimum rental income accrued on a straight-line basis to be paid by tenants over the remaining term of their respective leases.

Assets Held for Sale

The Company considers properties to be assets held for sale when all of the following criteria are met:

• management commits to a plan to sell a property;

• it is unlikely that the disposal plan will be significantly modified or discontinued;

• the property is available for immediate sale in its present condition;

• actions required to complete the sale of the property have been initiated;

• sale of the property is probable and the Company expects the completed sale will occur within one year; and

• the property is actively being marketed for sale at a price that is reasonable given its current market value.

The Company must make a determination as to the point in time that it is probable that a sale will be consummated, which generally occurs when an executed sales contract has no contingencies and the prospective buyer has significant funds at risk to ensure performance. Upon designation as an asset held for sale, the Company records the carrying value of each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and ceases depreciation. As of September 30, 2015, the Company has classified as held-for-sale one operating property, comprising 197,127 square feet of gross leasable area. The book value of this property, which is included in Other Assets, was $3.3 million, net of accumulated depreciation of $7.0 million, which does not exceed its estimated fair value, less costs to sell, and liabilities were $0.4 million. Fair value was determined based on a third party appraisal.

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Notes to Consolidated Financial Statements (Unaudited)

Cash and Cash Equivalents

Cash and cash equivalents include short-term investments. Short-term investments include money market accounts and other investments which generally mature within three months, measured from the acquisition date, and/or are readily convertible to cash.

Construction In Progress

Construction in progress includes land, preconstruction and development costs of active projects. Preconstruction costs include legal, zoning and permitting costs and other project carrying costs incurred prior to the commencement of construction. Development costs include direct construction costs and indirect costs incurred subsequent to the start of construction such as architectural, engineering, construction management and carrying costs consisting of interest, real estate taxes and insurance. Construction in progress as of September 30, 2015 and December 31, 2014, is composed of the following:

(in thousands)	September 30, 2015		December 31, 2014
Park Van Ness	$	63,495	$	26,998
Other	5,680		3,263
Total	$	69,175	$	30,261

Deferred Debt Costs

Deferred debt costs consist of fees and costs incurred to obtain long-term financing, construction financing and the revolving line of credit. These fees and costs are being amortized on a straight-line basis over the terms of the respective loans or agreements, which approximates the effective interest method. Deferred debt costs totaled $9.1 million and $9.9 million, net of accumulated amortization of $6.6 million and $5.9 million, at September 30, 2015 and December 31, 2014, respectively.

Deferred Income

Deferred income consists of payments received from tenants prior to the time they are earned and recognized by the Company as revenue, including tenant prepayment of rent for future periods, real estate taxes when the taxing jurisdiction has a fiscal year differing from the calendar year, reimbursements specified in the lease agreement and tenant construction work provided by the Company. In addition, deferred income includes the fair value of certain below market leases.

Deferred Leasing Costs

Deferred leasing costs consist of commissions paid to third-party leasing agents, internal direct costs such as employee compensation and payroll-related fringe benefits directly related to time spent performing leasing-related activities for successful commercial leases and amounts attributed to in-place leases associated with acquired properties. Leasing related activities include evaluating the prospective tenant’s financial condition, evaluating and recording guarantees, collateral and other security arrangements, negotiating lease terms, preparing lease documents and closing the transaction. Unamortized deferred costs are charged to expense if the applicable lease is terminated prior to expiration of the initial lease term. Deferred leasing costs are amortized over the term of the lease or remaining term of acquired leases. Collectively, deferred leasing costs totaled $26.9 million and $26.9 million, net of accumulated amortization of $25.4 million and $21.6 million, as of September 30, 2015 and December 31, 2014, respectively. Amortization expense, included in depreciation and amortization of deferred leasing costs in the consolidated statements of operations, totaled $4.2 million and $3.9 million for the nine months endedSeptember 30, 2015 and 2014, respectively.

Derivative Financial Instruments

The Company may, when appropriate, employ derivative instruments, such as interest-rate swaps, to mitigate the risk of interest rate fluctuations. The Company does not enter into derivative or other financial instruments for trading or speculative purposes. Derivative financial instruments are carried at fair value as either assets or liabilities on the consolidated balance sheets. For those derivative instruments that qualify and are designated as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as a fair value hedge or a cash flow hedge. For those derivative instruments that qualify and are designated as hedging instruments, the effective portion of the gain or loss on the hedge instruments is reported as a component of accumulated other comprehensive income (loss) and recognized in earnings within the same line item associated with the forecasted transaction in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the change in fair value of a derivative instrument is immediately recognized in

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Notes to Consolidated Financial Statements (Unaudited)

earnings. For derivative instruments that do not qualify, or that qualify and are not designated, as hedging instruments, changes in fair value are immediately recognized in earnings.

Derivative financial instruments expose us to credit risk in the event of non-performance by the counterparties under the terms of the derivative instrument. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions as determined by management, and therefore, it believes that the likelihood of realizing losses from counterparty non-performance is remote.

Income Taxes

The Company made an election to be treated, and intends to continue operating so as to qualify, as a REIT under the Code, commencing with its taxable year ended December 31, 1993. A REIT generally will not be subject to federal income taxation, provided that distributions to its stockholders equal or exceed its REIT taxable income and it complies with certain other requirements. Therefore, no provision has been made for federal income taxes in the accompanying consolidated financial statements.

Legal Contingencies

The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, which are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, the Company believes the final outcome of such matters will not have a material adverse effect on its financial position or results of operations. Upon determination that a loss is probable to occur and can be reasonably estimated, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered probable can be difficult to determine.

Postemployment Benefits

From time to time, the Company may enter into an arrangement with an employee at the time of the employee’s separation from service whereby the employee will receive certain payments in exchange for certain releases, covenants not to compete, or other promises. If no future services are required in order for the employee to receive the payments, the Company estimates the amount of payments to be made over the life of the arrangement and records that amount as an expense as of the date of the arrangement with a corresponding liability representing the amount to be paid in the future.

Predevelopment Expenses

Predevelopment expenses represent certain costs incurred by the Company in connection with active development and redevelopment projects and include, for example, costs related to the early termination of tenant leases and demolition of existing structures.

Real Estate Investment Properties

The Company purchases real estate investment properties from time to time and records assets acquired and liabilities assumed, including land, buildings, and intangibles related to in-place leases and customer relationships, based on their fair values. The fair value of buildings generally is determined as if the buildings were vacant upon acquisition and subsequently leased at market rental rates and considers the present value of all cash flows expected to be generated by the property including an initial lease up period. From time to time the Company may purchase a property for future development purposes. The Company determines the fair value of above and below market intangibles associated with in-place leases by assessing the net effective rent and remaining term of the lease relative to market terms for similar leases at acquisition taking into consideration the remaining contractual lease period, renewal periods, and the likelihood of the tenant exercising its renewal options. The fair value of below market lease intangibles is recorded as deferred income and accreted as additional revenue over the remaining contractual lease period and any renewal option periods included in the valuation analysis. The fair value of above market lease intangibles is recorded as a deferred asset and amortized as a reduction of revenue over the remaining contractual lease term. The Company determines the fair value of at-market in-place leases considering the cost of acquiring similar leases, the foregone rents associated with the lease-up period and carrying costs associated with the lease-up period. Intangible assets associated with at-market in-place leases are amortized as additional expense over the remaining contractual lease term. To the extent customer relationship intangibles are present in an acquisition, the fair values of the intangibles are amortized over the lives of the customer relationships. The Company has never recorded a customer relationship intangible asset. Acquisition-related transaction costs are generally charged to expense as incurred and reported as acquisition related costs in the consolidated statements of operations.

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Notes to Consolidated Financial Statements (Unaudited)

If there is an event or change in circumstance that indicates a potential impairment in the value of a real estate investment property, the Company prepares an analysis to determine whether the carrying value of the real estate investment property exceeds its estimated fair value. The Company considers both quantitative and qualitative factors including recurring operating losses, significant decreases in occupancy, and significant adverse changes in legal factors and business climate. If impairment indicators are present, the Company compares the projected cash flows of the property over its remaining useful life, on an undiscounted basis, to the carrying value of that property. The Company assesses its undiscounted projected cash flows based upon estimated capitalization rates, historic operating results and market conditions that may affect the property. If the carrying value is greater than the undiscounted projected cash flows, the Company would recognize an impairment loss equivalent to an amount required to adjust the carrying amount to its then estimated fair value. The value of any property is sensitive to the actual results of any of the aforementioned estimated factors, either individually or taken as a whole. Should the actual results differ from management’s projections, the valuation could be negatively or positively affected. The Company did not recognize an impairment loss on any of its real estate during the nine months endedSeptember 30, 2015 and 2014.

Interest, real estate taxes, development-related salary costs and other carrying costs are capitalized on projects under development and construction. Upon substantial completion of construction and the placement of the assets into service, rental income, real estate tax expense, property operating expenses (consisting of payroll, repairs and maintenance, utilities, insurance and other property related expenses) and depreciation are included in current operations and capitalization of interest ceases. Property operating expenses are charged to operations as incurred. Interest capitalized totaled $1.4 million and $0.4 million for the nine months endedSeptember 30, 2015 and 2014, respectively. Commercial development projects are considered substantially complete and available for occupancy upon completion of tenant improvements, but no later than one year from the cessation of major construction activity. Multi-family residential development projects are considered substantially complete and available for occupancy upon receipt of the certificate of occupancy from the appropriate licensing authority. Substantially completed portions of a project are accounted for as separate projects.

Depreciation is calculated using the straight-line method and estimated useful lives of generally between 35 and 50 years for base buildings, or a shorter period if management determines that the building has a shorter useful life, and up to 20 years for certain other improvements that extend the useful lives. Leasehold improvement expenditures are capitalized when certain criteria are met, including when the Company supervises construction and will own the improvements. Tenant improvements are amortized, over the shorter of the lives of the related leases or the useful life of the improvements, using the straight-line method. Depreciation expense in the Consolidated Statements of Operations totaled $28.2 million and $26.8 million for the nine months endedSeptember 30, 2015 and 2014, respectively. Repairs and maintenance expense totaled $9.0 million and $9.2 million for the nine months endedSeptember 30, 2015 and 2014, respectively, and is included in property operating expenses in the Consolidated Statements of Operations.

Revenue Recognition

Rental and interest income are accrued as earned except when doubt exists as to collectability, in which case the accrual is discontinued. Recognition of rental income commences when control of the space has been given to the tenant. When rental payments due under leases vary from a straight-line basis because of free rent periods or scheduled rent increases, income is recognized on a straight-line basis. Expense recoveries represent a portion of property operating expenses billed to tenants, including common area maintenance, real estate taxes and other recoverable costs, and are recognized in the period in which the expenses are incurred. Rental income based on a tenant’s revenue (“percentage rent”) is accrued when a tenant reports sales that exceed a breakpoint specified in the lease agreement.

Stock-based Employee Compensation, Stock Plan and Deferred Compensation Plan for Directors

The Company uses the fair value method to value and account for employee stock options. The fair value of options granted is determined at the time of each award using the Black-Scholes model, a widely used method for valuing stock-based employee compensation, and the following assumptions: (1) Expected Volatility determined using the most recent trading history of the Company’s common stock (month-end closing prices) corresponding to the average expected term of the options; (2) Average Expected Term of the options is based on prior exercise history, scheduled vesting and the expiration date; (3) Expected Dividend Yield determined by management after considering the Company’s current and historic dividend yield rates, the Company’s yield in relation to other retail REITs and the Company’s market yield at the grant date; and (4) a Risk-free Interest Rate based upon the market yields of US Treasury obligations with maturities corresponding to the average expected term of the options at the grant date. The Company amortizes the value of options granted ratably over the vesting period and includes the amounts as compensation in general and administrative expenses.

The Company has a stock plan, which was originally approved in 2004, amended in 2008 and 2013 and which expires in 2023, for the purpose of attracting and retaining executive officers, directors and other key personnel (the “Stock Plan”).

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Notes to Consolidated Financial Statements (Unaudited)

Pursuant to the Stock Plan, the Compensation Committee established a Deferred Compensation Plan for Directors for the benefit of its directors and their beneficiaries, which replaced a previous Deferred Compensation and Stock Plan for Directors. A director may make an annual election to defer all or part of his or her director’s fees and has the option to have the fees paid in cash, in shares of common stock or in a combination of cash and shares of common stock upon separation from the Board. If the director elects to have fees paid in stock, fees earned during a calendar quarter are aggregated and divided by the closing market price of the Company’s common stock on the first trading day of the following quarter to determine the number of shares to be credited to the director. As of September 30, 2015, the director's deferred fee accounts comprise 239,558 shares.

The Compensation Committee has also approved an annual award of shares of the Company’s common stock as additional compensation to each director serving on the Board of Directors as of the record date for the Annual Meeting of Stockholders. The shares are awarded as of each Annual Meeting of Stockholders, and their issuance may not be deferred.

Noncontrolling Interests

Saul Centers is the sole general partner of the Operating Partnership, owning a 74.2% common interest as of September 30, 2015. Noncontrolling interests in the Operating Partnership is comprised of limited partnership units owned by the Saul Organization. Noncontrolling interests reflected on the accompanying consolidated balance sheets is increased for earnings allocated to limited partnership interests and distributions reinvested in additional units, and is decreased for limited partner distributions. Noncontrolling interests reflected on the consolidated statements of operations represents earnings allocated to limited partnership interests.

Per Share Data

Per share data for net income (basic and diluted) is computed using weighted average shares of common stock. Convertible limited partnership units and employee stock options are the Company’s potentially dilutive securities. For all periods presented, the convertible limited partnership units are non-dilutive. The following table sets forth, for the indicated periods, weighted averages of the number of common shares outstanding, basic and dilutive, the effect of dilutive options and the number of options which are not dilutive because the average price of the Company's common stock was less than the exercise prices. The treasury stock method was used to measure the effect of the dilution.

	As of or For The Three Months Ended September 30,		As of or For The Nine Months Ended September 30,
(In thousands)	2015	2014	2015	2014
Weighted average common shares outstanding-Basic	21,158	20,839	21,091	20,726
Effect of dilutive options	33	39	66	35
Weighted average common shares outstanding-Diluted	21,191	20,878	21,157	20,761
Non-dilutive options	298	113	124	113
Years non-dilutive options were issued	2007 and 2015	2007 and 2008	2007 and 2015	2007 and 2008

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 will replace most existing revenue recognition guidance and will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted but not before annual periods beginning after December 15, 2016. ASU 2014-09 must be applied retrospectively by either restating prior periods or by recognizing the cumulative effect as of the first date of application. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures.

In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest” (“ASU 2015-03”). ASU 2015-03 simplifies the presentation of debt issuance costs and will require an entity to deduct transaction costs from the carrying value of the related financial liability and not record those transaction costs as a separate asset. Recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those years, and must be applied retrospectively by adjusting the balance sheet

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Notes to Consolidated Financial Statements (Unaudited)

of each individual period presented. Adoption of ASU 2015-03 is not expected to have a material effect on our consolidated financial statements and related disclosures.

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to the presentation used for the nine months endedSeptember 30, 2015.

3. Real Estate Acquired and Sold

1580, 1582 and 1584 Rockville Pike

In January 2014, the Company purchased for $8.0 million1580 Rockville Pike and incurred acquisition costs of $0.2 million. In April 2014, the Company purchased for $11.0 million1582 Rockville Pike and incurred acquisition costs of $0.2 million. In December 2014, the company purchased for $6.2 million1584 Rockville Pike and incurred acquisition costs of $0.2 million. These retail properties are contiguous with each other and the Company's asset at 1500 Rockville Pike and are located in Rockville, Maryland.

Olney Center

In April 2014, in conjunction with the purchase of 1582 Rockville Pike in Rockville, Maryland, the Company concurrently sold to the seller, for $11.0 million, the 53,765 square foot Olney Center located in Olney, Maryland. Simultaneously with the sale of the Olney Center, the Company entered into a lease of the property with the buyer and continues to operate, lease and manage the property. The lease term is 20 years and the Company has the option to purchase the property for $14.6 million at the end of the lease term. The purchaser has the right to sell the property to the Company at any time from and after April 2016 at a price equal to $11.0 million increased by 1.5% annually beginning January 1, 2015 and continuing each January thereafter. The Company has accounted for this transaction as a secured financing.

Giant Center

In April 2014, the Company sold for $7.5 million the 70,040 square foot Giant Center located in Milford Mill, Maryland and recognized a $6.1 million gain. As of March 31, 2014, the carrying amounts of the associated assets and liabilities were $0.5 million and $0.1 million, respectively. There was no debt on the property.

726, 730 and 750 Glebe Road

In August 2014, the Company purchased for $40.0 million, 750 N. Glebe Road and incurred acquisition costs of $0.4 million. In December 2014, the Company purchased for $2.8 million, 730 N. Glebe Road, and incurred acquisition costs of $40,400. In September 2015, the Company purchased for $4.0 million, 726 N. Glebe Road and incurred acquisition costs of $56,700. These retail properties are contiguous and are located in Arlington, Virginia.

Westview Pad

In February 2015, the Company purchased for $0.9 million, including acquisition costs, a 1.1 acre retail pad site in Frederick, Maryland, which is contiguous with and an expansion of the Company's other Westview asset.

Allocation of Purchase Price of Real Estate Acquired

The Company allocates the purchase price of real estate investment properties to various components, such as land, buildings and intangibles related to in-place leases and customer relationships, based on their fair values. See Note 2. Summary of Significant Accounting Policies-Real Estate Investment Properties.

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Notes to Consolidated Financial Statements (Unaudited)

During 2014, the Company purchased five properties at an aggregate cost of $68.0 million, and incurred acquisition costs of $0.9 million. The purchase prices were allocated to the assets acquired and liabilities assumed based on their fair value as shown in the following table.

(in thousands)	1580 Rockville Pike			1582 Rockville Pike			750 N. Glebe Road		730 N. Glebe Road		1584 Rockville Pike			Total
Land	$	9,600		$	9,742		$	38,224	$	2,683	$	5,798		$	66,048
Buildings	2,200			828			1,327		78		440			4,874
In-place Leases	513			849			449		39		249			2,099
Above Market Rent	—			—			—		—		—			—
Below Market Rent	(4,313		)	(419		)	—		—		(337		)	(5,070		)
Total Purchase Price	$	8,000		$	11,000		$	40,000	$	2,800	$	6,150		$	67,950

4. Noncontrolling Interests - Holders of Convertible Limited Partnership Units in the Operating Partnership

As of September 30, 2015, the Saul Organization holds a 25.8% limited partnership interest in the Operating Partnership represented by approximately 7.3 million convertible limited partnership units. These units are convertible into shares of Saul Centers’ common stock, at the option of the unit holder, on a one-for-one basis provided that, in accordance with the Saul Centers, Inc. Articles of Incorporation, the rights may not be exercised at any time that the Saul Organization beneficially owns, directly or indirectly, in the aggregate more than 39.9% of the value of the outstanding common stock and preferred stock of Saul Centers (the “Equity Securities”). As of September 30, 2015, approximately 965,000 units were convertible into shares of Saul Centers common stock.

The impact of the Saul Organization’s approximately 25.8% limited partnership interest in the Operating Partnership is reflected as Noncontrolling Interests in the accompanying consolidated financial statements. Fully converted partnership units and diluted weighted average shares outstanding for the three months endedSeptember 30, 2015 and 2014, were approximately 28.5 million and 28.1 million, respectively, and for the nine months endedSeptember 30, 2015 and 2014, were approximately 28.4 million and 27.9 million, respectively.

5. Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs

The Company’s outstanding debt totaled approximately $869.4 million at September 30, 2015, of which approximately $824.5 million was fixed-rate debt and approximately $44.9 million was variable rate debt, including $30.0 million outstanding on the Company's unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled $860.5 million as of September 30, 2015.

At September 30, 2015, the Company had a $275.0 million unsecured revolving credit facility, which can be used for working capital, property acquisitions, development projects or letters of credit. The revolving credit facility matures on June 23, 2018, and may be extended by the Company for one additional year subject to the Company’s satisfaction of certain conditions. Saul Centers and certain consolidated subsidiaries of the Operating Partnership have guaranteed the payment obligations of the Operating Partnership under the revolving credit facility. Letters of credit may be issued under the revolving credit facility. On September 30, 2015, based on the value of the Company’s unencumbered properties, approximately $244.6 million was available under the line, $30.0 million was outstanding and approximately $448,000 was committed for letters of credit. The interest rate under the facility is variable and equals the sum of one-month LIBOR and a margin that is based on the Company’s leverage ratio, and which can range from 145 basis points to 200 basis points. As of September 30, 2015, the margin was 145 basis points.

At September 30, 2015, the Company had a $71.6 million construction-to-permanent loan, with $31.4 million outstanding, which is secured by and will be used to partially finance the construction of Park Van Ness.

On March 3, 2015, the Company closed on a 15-year, non-recourse $30.0 million mortgage loan secured by Shops at Fairfax and Boulevard. The loan matures in 2030, bears interest at a fixed rate of 3.69%, requires monthly principal and interest payments totaling $153,300 based on a 25-year amortization schedule and requires a final payment of $15.5 million at maturity. Proceeds were used to pay off the remaining balance of existing debt secured by Shops at Fairfax and Boulevard and to reduce outstanding borrowings under the revolving credit facility.

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Notes to Consolidated Financial Statements (Unaudited)

On April 1, 2015, the Company closed on a 15-year, non-recourse $16.0 million mortgage loan secured by Northrock. The loan matures in 2030, bears interest at a fixed rate of 3.99%, requires monthly principal and interest payments totaling $84,400 based on a 25-year amortization schedule and requires a final payment of $8.4 million at maturity. Proceeds were used to pay off the remaining balance of existing debt secured by Northrock.

Saul Centers is a guarantor of the revolving credit facility, of which the Operating Partnership is the borrower. The Operating Partnership is the guarantor of (a) a portion of the Metro Pike Center bank loan (approximately $7.8 million of the $14.9 million outstanding at September 30, 2015) and (b) the $71.6 million Park Van Ness construction-to-permanent loan, which guarantee will be reduced and eventually eliminated subject to the achievement of certain leasing and cash flow levels. The fixed-rate notes payable are all non-recourse.

The Company accounts for the sale-leaseback of the Olney Center as a secured financing and, accordingly, the $11.0 million proceeds from the sale are included in notes payable. Monthly payments of approximately $60,400, which increase by 1.5% annually, are required under the lease and interest accrues at a fixed rate of 8.0%, which is the implicit rate under the lease. The purchaser has the right to sell the property to the Company at any time from and after April 2016 at a price equal to $11.0 million increased by 1.5% annually beginning January 1, 2015 and continuing each January thereafter. The Company has an option to repurchase the property for $14.6 million when the lease expires in April 2034.

At December 31, 2014, the Company’s outstanding debt totaled approximately $857.4 million, of which $784.8 million was fixed rate debt and $72.6 million was variable rate debt, including $43.0 million outstanding on the Company’s unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled $895.5 million as of December 31, 2014.

At September 30, 2015, the scheduled maturities of debt, including scheduled principal amortization, for years ending December 31, were as follows:

(In thousands)	Balloon Payments			Scheduled Principal Amortization		Total
October 1 through December 31, 2015	$	—		$	5,954	$	5,954
2016	14,724			24,413		39,137
2017	—			25,716		25,716
2018	57,748		(a)	25,902		83,650
2019	60,793			24,615		85,408
2020	61,163			21,893		83,056
Thereafter	418,770			127,712		546,482
	$	613,198		$	256,205	$	869,403

(a) Includes $30.0 million outstanding under the line of credit.

Interest expense and amortization of deferred debt costs for the three and nine months ended September 30, 2015 and 2014, were as follows:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(In thousands)	2015			2014			2015			2014
Interest incurred	$	11,489		$	11,415		$	34,287		$	33,998
Amortization of deferred debt costs	340			355			1,094			969
Capitalized interest	(600		)	(186		)	(1,393		)	(430		)
	$	11,229		$	11,584		$	33,988		$	34,537

6. Stockholders’ Equity and Noncontrolling Interests

The consolidated statements of operations for the nine months endedSeptember 30, 2015 and 2014, reflect noncontrolling interests of $7.6 million and $9.2 million, respectively, representing the Saul Organization’s share of net income for each period.

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Notes to Consolidated Financial Statements (Unaudited)

On February 12, 2013, the Company sold, in an underwritten public offering, 5.6 million depositary shares, each representing 1/100th of a share of 6.875% Series C Cumulative Redeemable Preferred Stock, and received net cash proceeds of approximately $135.2 million. The depositary shares may be redeemed on or after February 12, 2018 at the Company’s option, in whole or in part, at the $25.00 liquidation preference plus accrued but unpaid dividends. The depositary shares pay an annual dividend of $1.71875 per share, equivalent to 6.875% of the $25.00 liquidation preference. The Series C preferred stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and is not convertible into any other securities of the Company except in connection with certain changes of control or delisting events. Investors in the depositary shares generally have no voting rights, but will have limited voting rights if the Company fails to pay dividends for six or more quarters (whether or not declared or consecutive) and in certain other events. On November 12, 2014, the Company sold, in an underwritten public offering, 1.6 million depositary shares of Series C Stock and received net cash proceeds of approximately $39.3 million (the "Additional Series C Stock"). The terms of Additional Series C Stock are identical to the Series C Stock. In December 2014, the Company used the proceeds from the offering of the Additional Series C Stock to redeem the remaining outstanding 8% Series A Cumulative Redeemable Preferred Stock.

7. Related Party Transactions

The Chairman and Chief Executive Officer, the President, the Executive Vice President-Chief Legal and Administrative Officer and the Senior Vice President-Chief Accounting Officer of the Company are also officers of various members of the Saul Organization and their management time is shared with the Saul Organization. Their annual compensation is fixed by the Compensation Committee of the Board of Directors, with the exception of the Senior Vice President-Chief Accounting Officer whose share of annual compensation allocated to the Company is determined by the shared services agreement (described below).

The Company participates in a multiemployer 401K plan with entities in the Saul Organization which covers those full-time employees who meet the requirements as specified in the plan. Company contributions, which are included in general and administrative expense or property operating expenses in the consolidated statements of operations, at the discretionary amount of up to six percent of the employee’s cash compensation, subject to certain limits, were $312,400 and $281,800 for the nine months endedSeptember 30, 2015 and 2014, respectively. All amounts deferred by employees and the Company are fully vested.

The Company also participates in a multiemployer nonqualified deferred compensation plan with entities in the Saul Organization which covers those full-time employees who meet the requirements as specified in the plan. According to the plan, which can be modified or discontinued at any time, participating employees defer 2% of their compensation in excess of a specified amount. For the nine months endedSeptember 30, 2015 and 2014, the Company contributed $103,300 and $107,700, respectively, which is the sum of accrued earnings and three times the amount deferred by employees and is included in general and administrative expense. All amounts deferred by employees and the Company are fully vested. The cumulative unfunded liability under this plan was $1.7 million and $1.8 million, at September 30, 2015 and December 31, 2014, respectively, and is included in accounts payable, accrued expenses and other liabilities in the consolidated balance sheets.

The Company has entered into a shared services agreement (the “Agreement”) with the Saul Organization that provides for the sharing of certain personnel and ancillary functions such as computer hardware, software, and support services and certain direct and indirect administrative personnel. The method for determining the cost of the shared services is provided for in the Agreement and is based upon head count, estimates of usage or estimates of time incurred, as applicable. The terms of the Agreement and the payments made thereunder are deemed reasonable by management and are reviewed annually by the Audit Committee of the Board of Directors, which consists entirely of independent directors. Billings by the Saul Organization for the Company’s share of these ancillary costs and expenses for the nine months endedSeptember 30, 2015 and 2014, which included rental expense for the Company’s headquarters lease, totaled approximately $5.9 million and $5.5 million, respectively. The amounts are generally expensed as incurred and are primarily reported as general and administrative expenses in the consolidated financial statements. As of September 30, 2015 and December 31, 2014, accounts payable, accrued expenses and other liabilities included approximately $453,200 and $543,000, respectively, representing amounts due to the Saul Organization for the Company’s share of these ancillary costs and expenses.

The Company has entered into a shared third-party predevelopment cost agreement with the B. F. Saul Real Estate Investment Trust, a member of the Saul Organization (the “Predevelopment Agreement”). The Predevelopment Agreement, which expires on December 31, 2015, and which may be extended to December 31, 2016, relates to the sharing of third-party predevelopment costs incurred in connection with the planning of the future redevelopment of certain adjacent real estate assets in the Twinbrook area of Rockville, Maryland. The costs will be billed by the third-parties on a pro rata basis based on the acreage owned by each entity and neither party is obligated to advance funds to the other.

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Notes to Consolidated Financial Statements (Unaudited)

The Company subleases its corporate headquarters space from a member of the Saul Organization. The lease commenced in March 2002, was extended in 2012 for five years, and provides for base rent increases of 3% per year, with payment of a pro-rata share of operating expenses over a base year amount. The Agreement requires each party to pay an allocation of total rental payments based on a percentage proportionate to the number of employees employed by each party. The Company’s rent expense for its headquarters location was $684,800 and $630,000 for the nine months endedSeptember 30, 2015 and 2014, respectively, and is included in general and administrative expense.

The B. F. Saul Insurance Agency of Maryland, Inc., a subsidiary of the B. F. Saul Company and a member of the Saul Organization, is a general insurance agency that receives commissions and fees in connection with the Company’s insurance program. Such commissions and fees amounted to $295,000 and $288,800 for the nine months endedSeptember 30, 2015 and 2014, respectively.

Effective as of September 4, 2012, the Company entered into a consulting agreement with B. F. Saul III, a former president of the Company, whereby Mr. Saul III provided certain consulting services to the Company as an independent contractor and was paid at a rate of $60,000 per month. The consulting agreement included certain noncompete, nonsolicitation and nondisclosure covenants, and expired in September 2014. For the nine months endedSeptember 30, 2014, such consulting fees totaled $495,000.

8. Stock Option Plans

The Company has established two stock incentive plans, the 1993 plan and the 2004 plan, as amended, (together, the “Plans”). Under the Plans, options were granted at an exercise price not less than the market value of the common stock on the date of grant and expire ten years from the date of grant. Officer options vest ratably over four years following the grant and are charged to expense using the straight-line method over the vesting period. Director options vest immediately and are charged to expense as of the date of grant.

The following table summarizes the amount and activity of each grant with outstanding unexercised options, the total value and variables used in the computation and the amount expensed and included in general and administrative expense in the Consolidated Statements of Operations for the nine months endedSeptember 30, 2015.

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Notes to Consolidated Financial Statements (Unaudited)

Stock options issued

	Directors
Grant date	5/1/2006			4/27/2007			4/25/2008			4/24/2009			5/7/2010			5/13/2011			5/4/2012			5/10/2013			5/9/2014			5/8/2015			Subtotals
Total grant	30,000			30,000			30,000			32,500			32,500			32,500			35,000			35,000			30,000			35,000			322,500
Vested	30,000			30,000			30,000			32,500			32,500			32,500			35,000			35,000			30,000			35,000			322,500
Exercised	15,000			2,500			2,500			22,500			12,500			12,500			12,500			10,000			2,500			—			92,500
Forfeited	2,500			7,500			7,500			—			2,500			2,500			—			—			—			—			22,500
Exercisable at September 30, 2015	12,500			20,000			20,000			10,000			17,500			17,500			22,500			25,000			27,500			35,000			207,500
Remaining unexercised	12,500			20,000			20,000			10,000			17,500			17,500			22,500			25,000			27,500			35,000			207,500
Exercise price	$	40.35		$	54.17		$	50.15		$	32.68		$	38.76		$	41.82		$	39.29		$	44.42		$	47.03		$	51.07
Volatility	0.206			0.225			0.237			0.344			0.369			0.358			0.348			0.333			0.173			0.166
Expected life (years)	9.0			8.0			7.0			6.0			5.0			5.0			5.0			5.0			5.0			5.0
Assumed yield	5.93		%	4.39		%	4.09		%	4.54		%	4.23		%	4.16		%	4.61		%	4.53		%	4.48		%	4.54		%
Risk-free rate	5.11		%	4.65		%	3.49		%	2.19		%	2.17		%	1.86		%	0.78		%	0.82		%	1.63		%	1.50		%
Total value at grant date	$	143,400		$	285,300		$	254,700		$	222,950		$	287,950		$	297,375		$	257,250		$	278,250		$	109,500		$	125,300		$	2,261,975
Expensed in previous years	143,400			285,300			254,700			222,950			287,950			297,375			257,250			278,250			109,500			—			2,136,675
Expensed in 2015	—			—			—			—			—			—			—			—			—			125,300			125,300
Future expense	—			—			—			—			—			—			—			—			—			—			—
	Officers
Grant date	4/27/2007			5/13/2011			5/4/2012			5/10/2013			5/9/2014			5/8/2015			Subtotals												Grand  Totals
Total grant	135,000			162,500			242,500			202,500			170,000			190,000			1,102,500												1,425,000
Vested	67,500			118,750			81,875			91,250			42,500			—			401,875												724,375
Exercised	14,097			57,504			38,750			21,875			625			—			132,851												225,351
Forfeited	67,500			43,750			135,000			30,000			—			—			276,250												298,750
Exercisable at September 30, 2015	53,403			61,246			43,125			69,375			41,875			—			269,024												476,524
Remaining unexercised	53,403			61,246			68,750			150,625			169,375			190,000			693,399												900,899
Exercise price	$	54.17		$	41.82		$	39.29		$	44.42		$	47.03		$	51.07
Volatility	0.233			0.330			0.315			0.304			0.306			0.298
Expected life (years)	6.5			8.0			8.0			8.0			7.0			7.0
Assumed yield	4.13		%	4.81		%	5.28		%	5.12		%	4.89		%	4.94		%
Risk-free rate	4.61		%	2.75		%	1.49		%	1.49		%	2.17		%	1.89		%
Gross value at grant date	$	1,339,200		$	1,366,625		$	1,518,050		$	1,401,300		$	1,349,800		$	1,584,600		$	8,559,575											$	10,821,550
Estimated forfeitures	62,000			367,937			889,690			280,468			168,749			141,780			1,910,624												1,910,624
Expensed in previous years	1,277,200			909,563			418,899			492,937			196,848			—			3,295,447												5,432,122
Expensed in 2015	—			89,125			117,819			201,825			221,454			150,295			780,518												905,818
Future expense	—			—			91,642			426,070			762,749			1,292,525			2,572,986												2,572,986
Weighted average term of remaining future expense (in years)							2.8

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Notes to Consolidated Financial Statements (Unaudited)

The table below summarizes the option activity for the nine months endedSeptember 30, 2015:

	Number of Shares		Weighted Average Exercise Price per share		Aggregate Intrinsic Value
Outstanding at January 1	748,208		$	44.79	$	9,274,028
Granted	225,000		51.07		153,000
Exercised	(72,309	)	42.71		1,041,624
Expired/Forfeited	—		—
Outstanding September 30	900,899		46.53		4,881,029
Exercisable September 30	476,524		45.33		3,235,179

The intrinsic value measures the price difference between the options’ exercise price and the closing share price quoted by the New York Stock Exchange as of the date of measurement. The intrinsic value for shares exercised during the period was calculated by using the closing share price on the date of exercise. At September 30, 2015, the closing share price of $51.75 was lower than the exercise price of the 73,403 outstanding options granted in 2007, and, therefore, those options had no intrinsic value as of September 30, 2015. The weighted average remaining contractual life of the Company’s outstanding and exercisable options is 7.2 years and 5.9 years, respectively.

9. Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair value. The aggregate fair value of the notes payable with fixed-rate payment terms was determined using Level 3 data in a discounted cash flow approach, which is based upon management’s estimate of borrowing rates and loan terms currently available to the Company for fixed-rate financing and, assuming long-term interest rates of approximately 3.75% and 3.65%, would be approximately $894.4 million and $886.4 million, respectively, compared to the carrying value of $824.5 million and $784.8 million at September 30, 2015 and December 31, 2014, respectively. A change in any of the significant inputs may lead to a change in the Company’s fair value measurement of its debt.

The Company carries its interest rate swap at fair value. The Company has determined the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy with the exception of the impact of counter-party risk, which was determined using Level 3 inputs and is not significant. Derivative instruments are classified within Level 2 of the fair value hierarchy because their values are determined using third-party pricing models which contain inputs that are derived from observable market data. Where possible, the values produced by the pricing models are verified by market prices. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measure of volatility, and correlations of such inputs. The swap agreement terminates on July 1, 2020. As of September 30, 2015, the fair value of the interest-rate swap was approximately $3.6 million and is included in “Accounts payable, accrued expenses and other liabilities” in the consolidated balance sheets. The decrease in value from inception of the swap is reflected in “Other Comprehensive Income” in the Consolidated Statements of Comprehensive Income. Amounts recognized in earnings are included in Changes in Fair Value of Derivatives in the Consolidated Statements of Operations.

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2015			2014		2015			2014
Change in fair value:
Recognized in earnings	$	(6	)	$	1	$	(12	)	$	(6	)
Recognized in other comprehensive income	(561		)	374		(510		)	(273		)
	$	(567	)	$	375	$	(522	)	$	(279	)

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Notes to Consolidated Financial Statements (Unaudited)

10. Commitments and Contingencies

Neither the Company nor the current portfolio properties are subject to any material litigation, nor, to management’s knowledge, is any material litigation currently threatened against the Company, other than routine litigation and administrative proceedings arising in the ordinary course of business. Management believes that these items, individually or in the aggregate, will not have a material adverse impact on the Company or the current portfolio properties.

11. Business Segments

The Company has two reportable business segments: Shopping Centers and Mixed-Use Properties. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates performance based upon income and cash flows from real estate of the combined properties in each segment. All of our properties within each segment generate similar types of revenues and expenses related to tenant rent, reimbursements and operating expenses. Although services are provided to a range of tenants, the types of services provided to them are similar within each segment. The properties in each portfolio have similar economic characteristics and the nature of the products and services provided to our tenants and the method to distribute such services are consistent throughout the portfolio. Certain reclassifications have been made to prior year information to conform to the 2015 presentation.

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Notes to Consolidated Financial Statements (Unaudited)

(Dollars in thousands)	Shopping Centers			Mixed-Use Properties			Corporate and Other			Consolidated Totals
Three months ended September 30, 2015
Real estate rental operations:
Revenue	$	38,903		$	13,462		$	11		$	52,376
Expenses	(8,295		)	(4,567		)	—			(12,862		)
Income from real estate	30,608			8,895			11			39,514
Interest expense and amortization of deferred debt costs	—			—			(11,229		)	(11,229		)
General and administrative	—			—			(3,802		)	(3,802		)
Acquisition related costs	(57		)	—			—			(57		)
Predevelopment expenses	(57		)	—			—			(57		)
Subtotal	30,494			8,895			(15,020		)	24,369
Depreciation and amortization of deferred leasing costs	(7,779		)	(3,352		)	—			(11,131		)
Change in fair value of derivatives	—			—			(6		)	(6		)
Net income (loss)	$	22,715		$	5,543		$	(15,026	)	$	13,232
Capital investment	$	7,404		$	16,932		$	—		$	24,336
Total assets	$	941,421		$	340,983		$	14,546		$	1,296,950
Three months ended September 30, 2014
Real estate rental operations:
Revenue	$	37,506		$	13,066		$	23		$	50,595
Expenses	(8,088		)	(3,992		)	—			(12,080		)
Income from real estate	29,418			9,074			23			38,515
Interest expense and amortization of deferred debt costs	—			—			(11,584		)	(11,584		)
General and administrative	—			—			(3,837		)	(3,837		)
Acquisition related costs	(359		)	—			—			(359		)
Subtotal	29,059			9,074			(15,398		)	22,735
Depreciation and amortization of deferred leasing costs	(7,055		)	(3,201		)	—			(10,256		)
Change in fair value of derivatives	—			—			1			1
Net income (loss)	$	22,004		$	5,873		$	(15,397	)	$	12,480
Capital investment	$	31,541		$	6,026		$	—		$	37,567
Total assets	$	942,441		$	301,043		$	15,044		$	1,258,528

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Notes to Consolidated Financial Statements (Unaudited)

(Dollars in thousands)	Shopping Centers			Mixed-Use Properties			Corporate and Other			Consolidated Totals
Nine months ended September 30, 2015
Real estate rental operations:
Revenue	$	116,567		$	39,571		$	37		$	156,175
Expenses	(25,785		)	(13,326		)	—			(39,111		)
Income from real estate	90,782			26,245			37			117,064
Interest expense and amortization of deferred debt costs	—			—			(33,988		)	(33,988		)
General and administrative	—			—			(11,712		)	(11,712		)
Acquisition related costs	(78		)	—			—			(78		)
Predevelopment expenses	(57		)	—			—			(57		)
Subtotal	90,647			26,245			(45,663		)	71,229
Depreciation and amortization of deferred leasing costs	(22,633		)	(9,749		)	—			(32,382		)
Gain on sale of property	11			—			—			11
Change in fair value of derivatives	—			—			(12		)	(12		)
Net income (loss)	$	68,025		$	16,496		$	(45,675	)	$	38,846
Capital investment	$	12,883		$	37,030		$	—		$	49,913
Total assets	$	941,421		$	340,983		$	14,546		$	1,296,950
Nine months ended September 30, 2014
Real estate rental operations:
Revenue	$	116,381		$	39,389		$	58		$	155,828
Expenses	(25,580		)	(11,570		)	—			(37,150		)
Income from real estate	90,801			27,819			58			118,678
Interest expense and amortization of deferred debt costs	—			—			(34,537		)	(34,537		)
General and administrative	—			—			(12,540		)	(12,540		)
Acquisition related costs	(738		)	—			—			(738		)
Predevelopment expenses	—			(503		)	—			(503		)
Subtotal	90,063			27,316			(47,019		)	70,360
Depreciation and amortization of deferred leasing costs	(20,863		)	(9,882		)	—			(30,745		)
Gain on sale of property	6,069			—			—			6,069
Change in fair value of derivatives	—			—			(6		)	(6		)
Net income (loss)	$	75,269		$	17,434		$	(47,025	)	$	45,678
Capital investment	$	55,865		$	14,047		$	—		$	69,912
Total assets	$	942,441		$	301,043		$	15,044		$	1,258,528

12. Subsequent Events

The Company has reviewed operating activities for the period subsequent to September 30, 2015, and prior to the date the financial statements are issued or are available to be issued, and determined there are no subsequent events required to be disclosed.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This section should be read in conjunction with the consolidated financial statements of the Company and the accompanying notes in “Item 1. Financial Statements” of this report and the more detailed information contained in the Company’s Form 10-K for the year ended December 31, 2014. Historical results and percentage relationships set forth in Item 1 and this section should not be taken as indicative of future operations of the Company. Capitalized terms used but not otherwise defined in this section have the meanings given to them in Item 1 of this Form 10-Q.

Forward-Looking Statements

This Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are generally characterized by terms such as “believe,” “expect” and “may.”

Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, the Company’s actual results could differ materially from those given in the forward-looking statements as a result of changes in factors which include, among others, the following:

• continuing risks related to the challenging domestic and global credit markets and their effect on discretionary spending;

• risks that the Company’s tenants will not pay rent;

• risks related to the Company’s reliance on shopping center “anchor” tenants and other significant tenants;

• risks related to the Company’s substantial relationships with members of the Saul Organization;

• risks of financing, such as increases in interest rates, restrictions imposed by the Company’s debt, the Company’s ability to meet existing financial covenants and the Company’s ability to consummate planned and additional financings on acceptable terms;

• risks related to the Company’s development activities;

• risks that the Company’s growth will be limited if the Company cannot obtain additional capital;

• risks that planned and additional acquisitions or redevelopments may not be consummated, or if they are consummated, that they will not perform as expected;

• risks generally incident to the ownership of real property, including adverse changes in economic conditions, changes in the investment climate for real estate, changes in real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, the relative illiquidity of real estate and environmental risks;

• risks related to the Company’s status as a REIT for federal income tax purposes, such as the existence of complex regulations relating to the Company’s status as a REIT, the effect of future changes in REIT requirements as a result of new legislation and the adverse consequences of the failure to qualify as a REIT; and

• such other risks as described in Part I, Item 1A of the Company’s Form 10-K for the year ended December 31, 2014.

General

The following discussion is based primarily on the consolidated financial statements of the Company as of and for the three and nine months ended September 30, 2015.

Overview

The Company’s principal business activity is the ownership, management and development of income-producing properties. The Company’s long-term objectives are to increase cash flow from operations and to maximize capital appreciation of its real estate investments.

The Company’s primary operating strategy is to focus on its community and neighborhood shopping center business and to operate its properties to achieve both cash flow growth and capital appreciation. Management believes there is potential for long-term growth in cash flow as existing leases for space in the Shopping Centers and Mixed-Use properties expire and are renewed, or newly-available or vacant space is leased. The Company intends to renegotiate leases where possible and seek new tenants for available space in order to optimize the mix of uses to improve foot traffic through the Shopping Centers. As leases expire, management expects to revise rental rates, lease terms and conditions, relocate existing tenants, reconfigure tenant spaces and introduce new tenants with the goals of increasing occupancy, improving overall retail sales, and ultimately increasing cash flow as economic conditions improve. In those circumstances in which leases are not otherwise expiring, or in

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connection with renovations or relocations, management selectively attempts to increase cash flow through a variety of means, including recapturing leases with below market rents and re-leasing at market rates, as well as replacing financially troubled tenants. When possible, management also will seek to include scheduled increases in base rent, as well as percentage rental provisions, in its leases.

The following table sets forth average annualized base rent per square foot and average annualized effective rent per square foot for the Company's Commercial properties (all properties except for the Clarendon Center apartments). For purposes of this table, annualized effective rent is annualized base rent minus amortized tenant improvements and amortized leasing commissions.

	Nine months ended September 30,
	2015		2014		2013		2012		2011
Base rent	$	18.47	$	18.06	$	17.72	$	17.05	$	15.39
Effective rent	$	16.78	$	16.41	$	15.83	$	15.46	$	14.07

The Company’s redevelopment and renovation objective is to selectively and opportunistically redevelop and renovate its properties, by replacing leases that have below market rents with strong, traffic-generating anchor stores such as supermarkets and drug stores, as well as other desirable local, regional and national tenants. The Company’s strategy remains focused on continuing the operating performance and internal growth of its existing Shopping Centers, while enhancing this growth with selective retail redevelopments and renovations.

The Company continues to develop Park Van Ness, a 271-unit residential project with approximately 9,000 square feet of street-level retail, below street-level structured parking, and amenities including a community room, landscaped courtyards, a fitness room and a rooftop pool and deck. Construction is projected to be completed late in the first quarter of 2016. When complete, the structure will comprise 11 levels, five of which on the east side will be below street level. Because of the change in grade from the street eastward to Rock Creek Park, apartments on all 11 levels will have park or city views. Structural concrete work has been completed. Exterior precast, masonry, glass, unit interior framing and drywall are nearing completion. Apartment fixtures are being installed and building common area finishes are in progress. The total cost of the project, excluding predevelopment expense and land, which the Company has owned, is expected to be approximately $93.0 million, a portion of which will be financed with a $71.6 million construction-to-permanent loan. Costs incurred through September 30, 2015, total approximately $63.5 million, of which $31.4 million has been financed by the loan.

The Company's tenants were further impacted by winter weather, as heavy snowfall in the Mid-Atlantic states during the first quarters of 2015 and 2014 hindered the ability of customers to shop. The cost of removing snow from the Company's properties during the three months ended March 31, 2015 and 2014, was approximately $1.6 million and $2.0 million, respectively, approximately 60% of which will be or has been billed to tenants.

During the most recent downturn in the national real estate market, which began in 2008, the effects on the office and retail markets in the metropolitan Washington, D.C. area initially were less severe than in many other areas of the country. Even though economic conditions in the local economies, where the majority of the Company’s properties are located, have improved over recent years, issues facing the Federal government relating to spending cuts and budget policies have resulted in continued elevated vacancy rates in many sub-markets, thus pressuring rental rate growth. While overall consumer confidence appears to have improved, retailers continue to be cautious about new store openings. The Company’s overall leasing percentage, on a comparative same property basis, which excludes the impact of properties not in operation for the entirety of the comparable periods, was 94.8% at September 30, 2015, unchanged from September 30, 2014.

The Company maintains a ratio of total debt to total asset value of under 50%, which allows the Company to obtain additional secured borrowings if necessary. As of September 30, 2015, amortizing fixed-rate debt with staggered maturities from 2018 to 2034 represented approximately 94.8% of the Company’s notes payable, thus minimizing refinancing risk in any given year. As of September 30, 2015, the Company’s variable-rate debt consisted of a $14.9 million bank term loan secured by Metro Pike Center and $30.0 million outstanding under the revolving credit facility. As of September 30, 2015, the Company has availability of approximately $244.6 million under its $275.0 million unsecured revolving line of credit.

Although it is management’s present intention to concentrate future acquisition and development activities on community and neighborhood shopping centers and Mixed-Use Properties in the Washington, DC/Baltimore metropolitan area and the southeastern region of the United States, the Company may, in the future, also acquire other types of real estate in other areas of the country as opportunities present themselves. While the Company may diversify in terms of property locations, size and

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market, the Company does not set any limit on the amount or percentage of Company assets that may be invested in any one property or any one geographic area.

Critical Accounting Policies

The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which requires management to make certain estimates and assumptions that affect the reporting of financial position and results of operations. If judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied resulting in a different presentation of the financial statements. The Company has identified the following policies that, due to estimates and assumptions inherent in these policies, involve a relatively high degree of judgment and complexity.

Real Estate Investments

Real estate investment properties are stated at historic cost less depreciation. Although the Company intends to own its real estate investment properties over a long term, from time to time it will evaluate its market position, market conditions, and other factors and may elect to sell properties that do not conform to the Company’s investment profile. Management believes that the Company’s real estate assets have generally appreciated in value since their acquisition or development and, accordingly, the aggregate current value exceeds their aggregate net book value and also exceeds the value of the Company’s liabilities as reported in the financial statements. Because the financial statements are prepared in conformity with GAAP, they do not report the current value of the Company’s real estate investment properties.

The Company purchases real estate investment properties from time to time and records assets acquired and liabilities assumed, including land, buildings, and intangibles related to in-place leases and customer relationships, based on their fair values. The fair value of buildings generally is determined as if the buildings were vacant upon acquisition and subsequently leased at market rental rates and considers the present value of all cash flows expected to be generated by the property including an initial lease up period. The Company determines the fair value of above and below market intangibles associated with in-place leases by assessing the net effective rent and remaining term of the in-place lease relative to market terms for similar leases at acquisition taking into consideration the remaining contractual lease period, renewal periods, and the likelihood of the tenant exercising its renewal options. The fair value of below market lease intangibles is recorded as deferred income and accreted as additional lease revenue over the remaining contractual lease period and any renewal option periods included in the valuation analysis. The fair value of above market lease intangibles is recorded as a deferred asset and amortized as a reduction of revenue over the remaining contractual lease term. The Company determines the fair value of at-market in-place leases considering the cost of acquiring similar leases, the foregone rents associated with the lease-up period and carrying costs associated with the lease-up period. Intangible assets associated with at-market in-place leases are amortized as additional expense over the remaining contractual lease term. To the extent customer relationship intangibles are present in an acquisition, the fair value of the intangibles are amortized over the life of the customer relationship.

If there is an event or change in circumstance that indicates a potential impairment in the value of a real estate investment property, the Company prepares an analysis to determine whether the carrying value of the real estate investment property exceeds its estimated fair value. The Company considers both quantitative and qualitative factors including recurring operating losses, significant decreases in occupancy, and significant adverse changes in legal factors and business climate. If impairment indicators are present, the Company compares the projected cash flows of the property over its remaining useful life, on an undiscounted basis, to the carrying value of that property. The Company assesses its undiscounted projected cash flows based upon estimated capitalization rates, historic operating results and market conditions that may affect the property. If the carrying value is greater than the undiscounted projected cash flows, the Company would recognize an impairment loss equivalent to an amount required to adjust the carrying amount to its then estimated fair value. The fair value of any property is sensitive to the actual results of any of the aforementioned estimated factors, either individually or taken as a whole. Should the actual results differ from management’s projections, the valuation could be negatively or positively affected.

When incurred, the Company capitalizes the cost of improvements that extend the useful life of property and equipment. All repair and maintenance expenditures are expensed when incurred. Leasehold improvements expenditures are capitalized when certain criteria are met, including when we supervise construction and will own the improvement. Tenant improvements that we own are depreciated over the life of the respective lease or the estimated useful life of the improvements, whichever is shorter.

Interest, real estate taxes, development-related salary costs and other carrying costs are capitalized on projects under construction. Upon substantial completion of construction and the placement of assets into service, rental income, direct operating expenses, and depreciation associated with such properties are included in current operations and capitalization of interest ceases. Commercial development projects are substantially complete and available for occupancy upon completion of tenant improvements, but no later than one year from the cessation of major construction activity. Residential development

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projects are considered substantially complete and available for occupancy upon receipt of the certificate of occupancy from the appropriate licensing authority. Substantially completed portions of a project are accounted for as separate projects. Depreciation is calculated using the straight-line method and estimated useful lives generally between 35 and 50 years for base buildings, or a shorter period if management determines that the building has a shorter useful life, and up to 20 years for certain other improvements.

Deferred Leasing Costs

Certain initial direct costs incurred by the Company in negotiating and consummating successful Commercial leases are capitalized and amortized over the initial base term of the leases. Deferred leasing costs consist of commissions paid to third-party leasing agents as well as internal direct costs such as employee compensation and payroll-related fringe benefits directly related to time spent performing successful leasing-related activities. Such activities include evaluating prospective tenants’ financial condition, evaluating and recording guarantees, collateral and other security arrangements, negotiating lease terms, preparing lease documents and closing transactions. In addition, deferred leasing costs include amounts attributed to in-place leases associated with acquired properties.

Revenue Recognition

Rental and interest income is accrued as earned except when doubt exists as to collectability, in which case the accrual is discontinued. Recognition of rental income commences when control of the space has been given to the tenant. When rental payments due under leases vary from a straight-line basis because of free rent periods or scheduled rent increases, income is recognized on a straight-line basis. Expense recoveries represent a portion of property operating expenses billed to tenants, including common area maintenance, real estate taxes and other recoverable costs. Expense recoveries are recognized in the period in which the expenses are incurred. Rental income based on a tenant’s revenue, known as percentage rent, is recognized when a tenant reports sales that exceed a breakpoint specified in the lease agreement.

Allowance for Doubtful Accounts - Current and Deferred Receivables

Accounts receivable primarily represent amounts accrued and unpaid from tenants in accordance with the terms of the respective leases, subject to the Company’s revenue recognition policy. Receivables are reviewed monthly and reserves are established with a charge to current period operations when, in the opinion of management, collection of the receivable is doubtful. In addition to rents due currently, accounts receivable include amounts representing minimum rental income accrued on a straight-line basis to be paid by tenants over the remaining term of their respective leases. Reserves are established with a charge to income for tenants whose rent payment history or financial condition casts doubt upon the tenant’s ability to perform under its lease obligations.

Legal Contingencies

The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, which are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, the Company believes the final outcome of current matters will not have a material adverse effect on its financial position or the results of operations. Once it has been determined that a loss is probable to occur, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered probable can be difficult to determine.

Results of Operations

Same property revenue and same property operating income are non-GAAP financial measures of performance and improve the comparability of these measures by excluding the results of properties which were not in operation for the entirety of the comparable reporting periods.

We define same property revenue as total revenue minus the sum of interest income and revenue of properties not in operation for the entirety of the comparable reporting periods, and we define same property operating income as net income plus the sum of interest expense and amortization of deferred debt costs, depreciation and amortization, general and administrative expense, loss on the early extinguishment of debt (if any), predevelopment expense and acquisition related costs, minus the sum of interest income, the change in the fair value of derivatives, gains on property dispositions (if any) and the results of properties which were not in operation for the entirety of the comparable periods.

Other REITs may use different methodologies for calculating same property revenue and same property operating income. Accordingly, our same property revenue and same property operating income may not be comparable to those of other REITs.

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Same property revenue and same property operating income are used by management to evaluate and compare the operating performance of our properties, and to determine trends in earnings, because these measures are not affected by the cost of our funding, the impact of depreciation and amortization expenses, gains or losses from the acquisition and sale of operating real estate assets, general and administrative expenses or other gains and losses that relate to ownership of our properties. We believe the exclusion of these items from revenue and operating income is useful because the resulting measures capture the actual revenue generated and actual expenses incurred by operating our properties.

Same property revenue and same property operating income are measures of the operating performance of our properties but do not measure our performance as a whole. Such measures are therefore not substitutes for total revenue, net income or operating income as computed in accordance with GAAP.

The tables below provide reconciliations of total revenue and operating income under GAAP to same property revenue and operating income for the indicated periods. The same property results include 49 Shopping Centers and six Mixed-Use properties, one of which is held for sale, for each period.

Same property revenue

(in thousands)	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Total revenue	$	52,376		$	50,595		$	156,175		$	155,828
Less: Interest income	(11		)	(23		)	(37		)	(58		)
Less: Acquisitions, dispositions and development properties	(591		)	(367		)	(1,916		)	(832		)
Total same property revenue	$	51,774		$	50,205		$	154,222		$	154,938
Shopping centers	$	38,311		$	37,139		$	114,651		$	115,549
Mixed-Use properties	13,463			13,066			39,571			39,389
Total same property revenue	$	51,774		$	50,205		$	154,222		$	154,938

The $1.6 million increase in same property revenue for the 2015 quarter compared to the 2014 quarter was primarily due to (a) a $0.29 per square foot increase in base rent ($0.6 million), (b) a 45,485 square foot increase in average leased space ($0.2 million), (c) an increase in expense recoveries ($0.4 million) and (d) an increase in other revenue of ($0.4 million).

The $0.7 million decrease in same property revenue for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014 is due primarily to (a) a bankruptcy settlement and collection in 2014 ($1.6 million) and (b) the net impact of a lease termination in 2014 ($1.0 million), partially offset by (c) a 51,821 square foot increase in average leased space ($0.7 million), (d) a $0.08 per square foot increase in base rent ($0.5 million) and (e) a $0.4 million increase in real estate tax recovery income.

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Same property operating income

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2015			2014			2015			2014
Net income	$	13,232		$	12,480		$	38,846		$	45,678
Add: Interest expense and amortization of deferred debt costs	11,229			11,584			33,988			34,537
Add: Depreciation and amortization of deferred leasing costs	11,131			10,256			32,382			30,745
Add: General and administrative	3,802			3,837			11,712			12,540
Add: Predevelopment expenses	57			—			57			503
Add: Acquisition related costs	57			359			78			738
Add: Change in fair value of derivatives	6			(1		)	12			6
Less: Gains on property dispositions	—			—			(11		)	(6,069		)
Less: Interest income	(11		)	(23		)	(37		)	(58		)
Property operating income	39,503			38,492			117,027			118,620
Less: Acquisitions, dispositions & development property	517			326			1,698			688
Total same property operating income	$	38,986		$	38,166		$	115,329		$	117,932
Shopping centers	$	30,091		$	29,092		$	89,084		$	90,113
Mixed-Use properties	8,895			9,074			26,245			27,819
Total same property operating income	$	38,986		$	38,166		$	115,329		$	117,932

Same property operating income increased $0.8 million for the 2015 quarter compared to the 2014 quarter due primarily to (a) a $0.29 per square foot increase in base rent ($0.6 million), (b) a 45,485 square foot increase in average leased space ($0.2 million) and (c) an increase in other revenue of ($0.4 million) partially offset by (d) higher provisions for credit losses ($0.5 million).

Same property operating income decreased $2.6 million for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014 due primarily to (a) the net impact of a lease termination in 2014 ($1.0 million), (b) the impact of a bankruptcy settlement and collection in 2014 ($1.6 million), (c) higher real estate tax expense, the majority of which is not recoverable, ($0.6 million), (d) higher provisions for credit losses ($0.8 million) and (e) higher repairs and maintenance expense in the mixed-use portfolio, the majority of which is not recoverable ($0.3 million) partially offset by (f) a 51,821 square foot increase in average leased space ($0.7 million) and (g) a $0.08 per square foot increase in base rent ($0.5 million).

Three months ended September 30, 2015 compared to the three months endedSeptember 30, 2014

Revenue

	Three months ended September 30,				2014 to 2015 Change
(Dollars in thousands)	2015		2014		Amount			Percent
Base rent	$	42,431	$	41,452	$	979		2.4	%
Expense recoveries	8,181		7,734		447			5.8	%
Percentage rent	157		187		(30		)	(16.0	)%
Other	1,607		1,222		385			31.5	%
Total revenue	$	52,376	$	50,595	$	1,781		3.5	%

Base rent includes $582,800 and $568,900 for the three months endedSeptember 30, 2015 and 2014, respectively, to recognize base rent on a straight-line basis. In addition, base rent includes $446,000 and $466,800, for the three months endedSeptember 30, 2015 and 2014, respectively, to recognize income from the amortization of in-place leases acquired in connection with purchased real estate investment properties.

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Total revenue increased 3.5% in the three months endedSeptember 30, 2015 (“2015 Quarter”) compared to the three months endedSeptember 30, 2014 (“2014 Quarter”) primarily due to (a) an increase in other revenue, primarily due to termination fees ($0.4 million), (b) a 53,766 square foot increase in average leased space ($0.2 million) and (c) a $0.35 per square foot increase in base rent ($0.8 million).

Operating Expenses

	Three months ended September 30,				2014 to 2015 Change
(Dollars in thousands)	2015		2014		Amount			Percent
Property operating expenses	$	6,308	$	6,316	$	(8	)	(0.1	)%
Provision for credit losses	621		170		451			265.3	%
Real estate taxes	5,933		5,594		339			6.1	%
Interest expense and amortization of deferred debt costs	11,229		11,584		(355		)	(3.1	)%
Depreciation and amortization of deferred leasing costs	11,131		10,256		875			8.5	%
General and administrative	3,802		3,837		(35		)	(0.9	)%
Acquisition related costs	57		359		(302		)	(84.1	)%
Predevelopment expenses	57		—		57			NA
Total operating expenses	$	39,138	$	38,116	$	1,022		2.7	%

Total operating expenses increased 2.7% in the 2015 Quarter compared to the 2014 Quarter.

Provision for credit losses. The provision for credit losses for the 2015 Quarter represents 1.19% of the Company’s revenue, an increase from 0.34% for the 2014 Quarter. The increase is due primarily to a rent dispute with an office tenant that is currently in litigation.

Real estate taxes. Real estate taxes increased 6.1% in the 2015 Quarter compared to the 2014 Quarter primarily due to increases in the mixed-use portfolio.

Depreciation and amortization of deferred leasing costs. The increase in depreciation and amortization to $11.1 million in the 2015 Quarter from $10.3 million in the 2014 Quarter was primarily due to (a) increased depreciation resulting from new assets and tenant improvements installed throughout the portfolio net of reduced depreciation as a result of assets becoming fully depreciated ($0.3 million), (b) depreciation expense on buildings acquired in 2014 ($0.1 million) and (c) additional depreciation expense as a result of the reduction of the estimated remaining useful life of two buildings at Germantown to six months effective May 1, 2015 ($0.4 million).

Acquisition related costs. Acquisition related costs incurred in the 2015 Quarter related to the Company's acquisition of 726 N. Glebe Road. Acquisition related costs incurred in the 2014 Quarter related to the Company's acquisition of 750 N. Glebe Road.

Predevelopment expenses. Predevelopment expenses incurred in the 2015 Quarter related to lease termination costs in connection with the repositioning of the Germantown Shopping Center.

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Nine months endedSeptember 30, 2015 compared to the nine months endedSeptember 30, 2014

Revenue

	Nine Months Ended   September 30,				2014 to 2015 Change
(Dollars in thousands)	2015		2014		Amount			Percent
Base rent	$	125,786	$	123,053	$	2,733		2.2	%
Expense recoveries	24,710		24,348		362			1.5	%
Percentage rent	1,153		1,092		61			5.6	%
Other	4,526		7,335		(2,809		)	(38.3	)%
Total revenue	$	156,175	$	155,828	$	347		0.2	%

Base rent includes $1.6 million and $1.4 million for the nine months endedSeptember 30, 2015 and 2014, respectively, to recognize base rent on a straight-line basis. In addition, base rent includes $1.3 million and $1.4 million for the nine months endedSeptember 30, 2015 and 2014, respectively, to recognize income from the amortization of in-place leases acquired in connection with purchased real estate investment properties.

Total revenue increased 0.2% in the nine months endedSeptember 30, 2015 (“2015 Period”) compared to the nine months endedSeptember 30, 2014 (“2014 Period”).

Base Rent. The $2.7 million increase in base rent in the 2015 Period compared to 2014 Period is attributable to (a) a $0.30 per square foot increase in base rent ($2.0 million) and (b) a 9,573 square foot increase in leased space ($0.1 million).

Other revenue. Other revenue decreased $2.8 million in the 2015 Period compared to the 2014 Period due primarily to (a) the impact in 2014 of a bankruptcy settlement and collection related to a former tenant at Seven Corners ($1.6 million) and (b) the impact in 2014 of a lease termination fee at Seven Corners ($1.9 million) partially offset by various termination fees throughout the portfolio ($0.8 million) .

Operating Expenses

	Nine Months Ended   September 30,				2014 to 2015 Change
(Dollars in thousands)	2015		2014		Amount			Percent
Property operating expenses	$	20,120	$	20,039	$	81		0.4	%
Provision for credit losses	1,281		480		801			166.9	%
Real estate taxes	17,710		16,631		1,079			6.5	%
Interest expense and amortization of deferred debt costs	33,988		34,537		(549		)	(1.6	)%
Depreciation and amortization of deferred leasing costs	32,382		30,745		1,637			5.3	%
General and administrative	11,712		12,540		(828		)	(6.6	)%
Acquisition related costs	78		738		(660		)	(89.4	)%
Predevelopment expenses	57		503		(446		)	(88.7	)%
Total operating expenses	$	117,328	$	116,213	$	1,115		1.0	%

Total operating expenses increased 1.0% in the 2015 Period compared to the 2014 Period primarily due to increased depreciation, real estate taxes and credit losses partially offset by lower general and administrative, acquisition related costs, interest expenses and predevelopment expenses.

Provision for credit losses. The provision for credit losses for the 2015 Period represents 0.82% of the Company’s revenue, an increase from 0.31% for the 2014 Period. The increase is due primarily to a rent dispute with an office tenant that is currently in litigation.

Real Estate Taxes. Real estate taxes increased 6.5% in the 2015 Period primarily due to (a) 601 Pennsylvania Avenue, (b) Clarendon Center and (c) properties acquired in 2014.

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Interest expense and amortization of deferred debt costs. Interest expense decreased in the 2015 Period due primarily to (a) a $960,000 increase in the amount of interest capitalized partially offset by (b) a $290,000 increase in the amount of interest incurred.

Depreciation and amortization of deferred leasing costs. The increase in depreciation and amortization to $32.4 million in the 2015 Period from $30.7 million in the 2014 Period was primarily due to (a) $0.5 million of depreciation expense on buildings acquired in 2014, (b) $0.6 million of additional depreciation expense as a result of the reduction of the estimated remaining useful life of two buildings at Germantown to six months effective May 1, 2015, and (c) increased depreciation resulting from new assets and tenant improvements installed throughout the portfolio net of reduced depreciation as a result of assets becoming fully depreciated ($0.5 million).

General and administrative expense. The decrease in general and administrative expense was primarily due to the accrual in 2014 of $1.1 million of severance costs.

Acquisition related costs. Acquisition related costs in the 2015 Period related to the Company's acquisition of 726 N. Glebe Road. Acquisition related costs in the 2014 Period related to the Company's acquisition of 1580 and 1582 Rockville Pike and 750 N. Glebe Road.

Predevelopment expenses. Predevelopment expenses in the 2015 Period related to lease termination costs incurred in connection with the repositioning of the Germantown Shopping Center. Predevelopment expenses in the 2014 Period related to the Company's activities at Park Van Ness.

Liquidity and Capital Resources

Cash and cash equivalents totaled $8.9 million and $13.0 million at September 30, 2015 and 2014, respectively. The Company’s cash flow is affected by its operating, investing and financing activities, as described below.

	Nine Months Ended   September 30,
(Dollars in thousands)	2015			2014
Net cash provided by operating activities	$	64,726		$	66,129
Net cash used in investing activities	(49,881		)	(63,233		)
Net cash used in financing activities	(18,051		)	(7,171		)
Decrease in cash and cash equivalents	$	(3,206	)	$	(4,275	)

Operating Activities

Net cash provided by operating activities represents cash received primarily from rental income, plus other income, less property operating expenses, leasing costs, normal recurring general and administrative expenses and interest payments on debt outstanding. The $1.4 milliondecrease in net cash provided by operating activities from 2014 to 2015 is primarily attributable to net changes in other assets and liabilities.

Investing Activities

Net cash used in investing activities includes property acquisitions, developments, redevelopments, tenant improvements and other property capital expenditures. The $13.4 million decrease in cash used in investing activities is primarily due to (a) lower acquisition activity ($43.7 million) partially offset by (b) the Company's development activities at Park Van Ness ($21.6 million) and (c) lower property sales proceeds ($6.6 million). Tenant improvement and property capital expenditures totaled $13.3 million and $11.2 million for the nine months endedSeptember 30, 2015 and 2014, respectively.

Financing Activities

Net cash used in financing activities for the nine months endedSeptember 30, 2015 primarily reflects:

• the repayment of notes payable totaling $47.0 million;

• revolving credit facility principal payments of $28.0 million;

• distributions to common stockholders totaling $26.5 million;

• distributions to holders of convertible limited partnership units in the Operating Partnership totaling $9.1 million; and

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• distributions to preferred stockholders totaling $9.3 million;

which was partially offset by:

• proceeds of $46.0 million received from notes payable;

• advances of $15.0 million from the revolving credit facility;

• proceeds of $4.1 million from the issuance of limited partnership units in the Operating Partnership pursuant to our Dividend Reinvestment and Stock Purchase Plan ("DRIP");

• proceeds of $11.1 million from the issuance of common stock pursuant to our DRIP, directors’ Deferred Compensation Plan and the exercise of stock options; and

• advances of $26.0 million from the Park Van Ness construction loan.

Net cash used in financing activities for the nine months endedSeptember 30, 2014 primarily reflects:

• revolving credit facility payments of $11.0 million;

• repayment of notes payable totaling $16.5 million;

• distributions to common stockholders totaling $24.0 million;

• distributions to holders of convertible limited partnership units in the Operating Partnership totaling $8.6 million; and

• distributions made to preferred stockholders totaling $9.6 million;

which was partially offset by:

• advances from the revolving credit facility totaling $41.0 million;

• proceeds of $8.9 million from the issuance of limited partnership units in the Operating Partnership pursuant to our DRIP;

• proceeds of $12.1 million from the issuance of common stock pursuant to our DRIP, directors’ Deferred Compensation Plan and the exercise of stock options; and

• advances of $1.9 million from the Park Van Ness construction loan.

Liquidity Requirements

Short-term liquidity requirements consist primarily of normal recurring operating expenses and capital expenditures, debt service requirements (including debt service relating to additional and replacement debt), distributions to common and preferred stockholders, distributions to unit holders and amounts required for expansion and renovation of the Current Portfolio Properties and selective acquisition and development of additional properties. In order to qualify as a REIT for federal income tax purposes, the Company must distribute to its stockholders at least 90% of its “real estate investment trust taxable income,” as defined in the Code. The Company expects to meet these short-term liquidity requirements (other than amounts required for additional property acquisitions and developments) through cash provided from operations, available cash and its existing line of credit.

Long-term liquidity requirements consist primarily of obligations under our long-term debt and dividends paid to our preferred shareholders. The Company anticipates that long-term liquidity requirements will also include amounts required for property acquisitions and developments. The Company is developing Park Van Ness, a primarily residential project with street-level retail. As of September 30, 2015, the estimated cost to complete the project is approximately $29.5 million, which will be funded by the remaining availability under the construction-to-permanent loan. The Company may also redevelop certain of the Current Portfolio Properties and may develop additional freestanding outparcels or expansions within certain of the Shopping Centers.

Acquisition and development of properties are undertaken only after careful analysis and review, and management’s determination that such properties are expected to provide long-term earnings and cash flow growth. During the coming year, developments, expansions or acquisitions (if any) are expected to be funded with available cash, bank borrowings from the Company’s credit line, construction and permanent financing, proceeds from the operation of the Company’s dividend reinvestment plan or other external debt or equity capital resources available to the Company. Any future borrowings may be at the Saul Centers, Operating Partnership or Subsidiary Partnership level, and securities offerings may include (subject to certain limitations) the issuance of additional limited partnership interests in the Operating Partnership which can be converted into shares of Saul Centers common stock. The availability and terms of any such financing will depend upon market and other conditions.

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As of September 30, 2015, the scheduled maturities of debt, including scheduled principal amortization, for years ending December 31, were as follows:

(In thousands)	Balloon Payments			Scheduled Principal Amortization		Total
July 1 through December 31, 2015	$	—		$	5,954	$	5,954
2016	14,724			24,413		39,137
2017	—			25,716		25,716
2018	57,748		(a)	25,902		83,650
2019	60,793			24,615		85,408
2020	61,163			21,893		83,056
Thereafter	418,770			127,712		546,482
	$	613,198		$	256,205	$	869,403

(a) Includes $30.0 million outstanding under the line of credit.

Management believes that the Company’s capital resources, which at September 30, 2015 included cash balances of approximately $8.9 million and borrowing availability of approximately $244.6 million on its unsecured revolving credit facility, will be sufficient to meet its liquidity needs for the foreseeable future.

Dividend Reinvestments

In December 1995, the Company established a DRIP to allow its common stockholders and holders of limited partnership interests an opportunity to buy additional shares of common stock by reinvesting all or a portion of their dividends or distributions. The DRIP provides for investing in newly issued shares of common stock at a 3% discount from market price without payment of any brokerage commissions, service charges or other expenses. All expenses of the DRIP are paid by the Company. The Company issued 148,215 and 151,784 shares under the DRIP at a weighted average discounted price of $52.06 and $45.37 per share, during the nine months endedSeptember 30, 2015 and 2014, respectively. The Company issued 78,101 and 196,183 limited partnership units under the DRIP at a weighted average price of $51.99 and $45.25 per unit during the nine months endedSeptember 30, 2015 and 2014, respectively. The Company also credited 5,682 and 5,712 shares to directors pursuant to the reinvestment of dividends specified by the Directors’ Deferred Compensation Plan at a weighted average discounted price of $52.13 and $45.35 per share, during the nine months endedSeptember 30, 2015 and 2014, respectively.

Capital Strategy and Financing Activity

As a general policy, the Company intends to maintain a ratio of its total debt to total asset value of 50% or less and to actively manage the Company’s leverage and debt expense on an ongoing basis in order to maintain prudent coverage of fixed charges. Asset value is the aggregate fair market value of the Current Portfolio Properties and any subsequently acquired properties as reasonably determined by management by reference to the properties’ aggregate cash flow. Given the Company’s current debt level, it is management’s belief that the ratio of the Company’s debt to total asset value was below 50% as of September 30, 2015.

The organizational documents of the Company do not limit the absolute amount or percentage of indebtedness that it may incur. The Board of Directors may, from time to time, reevaluate the Company’s debt/capitalization strategy in light of current economic conditions, relative costs of capital, market values of the Company’s property portfolio, opportunities for acquisition, development or expansion, and such other factors as the Board of Directors then deems relevant. The Board of Directors may modify the Company’s debt/capitalization policy based on such a reevaluation without shareholder approval and consequently, may increase or decrease the Company’s debt to total asset ratio above or below 50% or may waive the policy for certain periods of time. The Company selectively continues to refinance or renegotiate the terms of its outstanding debt in order to achieve longer maturities, and obtain generally more favorable loan terms, whenever management determines the financing environment is favorable.

The Company maintains an unsecured revolving credit facility which was amended and restated in June 2014. The facility provides working capital and funds for acquisitions, certain developments, redevelopments and letters of credit, expires on June 23, 2018, and provides for an additional one-year extension at the Company’s option, subject to the Company’s satisfaction of certain conditions. As of September 30, 2015, $30.0 million was outstanding, approximately $244.6 million was available under the line and approximately $448,000 was committed for letters of credit. The interest rate under the facility is variable and equals the sum of one-month LIBOR and a margin that is based on the Company’s leverage ratio, and which can

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range from 145 basis points to 200 basis points. Based on the leverage ratio as of September 30, 2015, the margin was 145 basis points.

The facility requires the Company and its subsidiaries to maintain compliance with certain financial covenants. The material covenants require the Company, on a consolidated basis, to:

• maintain tangible net worth, as defined in the loan agreement, of at least $542.1 million plus 80% of the Company’s net equity proceeds received after March 2014;

• limit the amount of debt as a percentage of gross asset value, as defined in the loan agreement, to less than 60% (leverage ratio);

• limit the amount of debt so that interest coverage will exceed 2.0x on a trailing four-quarter basis (interest expense coverage); and

• limit the amount of debt so that interest, scheduled principal amortization and preferred dividend coverage exceeds 1.3x on a trailing four-quarter basis (fixed charge coverage).

As of September 30, 2015, the Company was in compliance with all such covenants.

At September 30, 2015, the Company had a $71.6 million construction-to-permanent loan, with $31.4 million outstanding, which is secured by and will be used to partially finance the construction of Park Van Ness.

Saul Centers is a guarantor of the revolving credit facility, of which the Operating Partnership is the borrower. The Operating Partnership is the guarantor of (a) a portion of the Metro Pike Center bank loan (approximately $7.8 million of the $14.9 million outstanding at September 30, 2015) and (b) the $71.6 million Park Van Ness construction-to-permanent loan, which guarantee will be reduced and eventually eliminated subject to the achievement of certain leasing and cash flow levels. The fixed-rate notes payable are non-recourse.

On March 3, 2015, the Company closed on a 15-year, non-recourse $30.0 million mortgage loan secured by Shops at Fairfax and Boulevard. The loan matures in 2030, bears interest at a fixed rate of 3.69%, requires monthly principal and interest payments totaling $153,300 based on a 25-year amortization schedule and requires a final payment of $15.5 million at maturity. Proceeds were used to pay off the remaining balance of existing debt secured by Shops at Fairfax and Boulevard and to reduce outstanding borrowings under the revolving credit facility.

On April 1, 2015, the Company closed on a 15-year, non-recourse $16.0 million mortgage loan secured by Northrock. The loan matures in 2030, bears interest at a fixed rate of 3.99%, requires monthly principal and interest payments totaling $84,400 based on a 25-year amortization schedule and requires a final payment of $8.4 million at maturity. Proceeds were used to pay off the remaining balance of existing debt secured by Northrock.

Preferred Stock

On February 12, 2013, the Company sold, in an underwritten public offering, 5.6 million depositary shares, each representing 1/100th of a share of 6.875% Series C Cumulative Redeemable Preferred Stock, providing net cash proceeds of approximately $135.2 million. The depositary shares may be redeemed at the Company’s option, in whole or in part, at the $25.00 liquidation preference plus accrued but unpaid dividends on or after February 12, 2018. The depositary shares pay an annual dividend of $1.71875 per share, equivalent to 6.875% of the $25.00 liquidation preference. The Series C preferred stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and is not convertible into any other securities of the Company except in connection with certain changes of control or delisting events. Investors in the depositary shares generally have no voting rights, but will have limited voting rights if the Company fails to pay dividends for six or more quarters (whether or not declared or consecutive) and in certain other events. On November 12, 2014, the Company sold, in an underwritten public offering, 1.6 million depositary shares of Series C Stock and received net cash proceeds of approximately $39.3 million (the "Additional Series C Stock"). The terms of Additional Series C Stock are identical to the Series C Stock. In December 2014, the Company used the proceeds from the offering of the Additional Series C Stock to redeem the remaining outstanding 8% Series A Cumulative Redeemable Preferred Stock.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements that are reasonably likely to have a current or future material effect on the Company’s financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.

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Funds From Operations

Funds From Operations (FFO)¹ available to common stockholders and noncontrolling interests for the nine months endedSeptember 30, 2015, totaled $61.9 million, an increase of 2.0% compared to the nine months endedSeptember 30, 2014.

The following table presents a reconciliation from net income to FFO available to common stockholders and noncontrolling interests for the periods indicated:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except per share amounts)	2015			2014			2015			2014
Net income	$	13,232		$	12,480		$	38,846		$	45,678
Subtract:
Gain on sale of property	—			—			(11		)	(6,069		)
Add:
Real estate depreciation and amortization	11,131			10,256			32,382			30,745
FFO	24,363			22,736			71,217			70,354
Subtract:
Preferred stock dividends	(3,093		)	(3,206		)	(9,281		)	(9,619		)
FFO available to common stockholders and noncontrolling interests	$	21,270		$	19,530		$	61,936		$	60,735
Weighted average shares:
Diluted weighted average common stock	21,191			20,878			21,157			20,761
Convertible limited partnership units	7,266			7,199			7,239			7,142
Average shares and units used to compute FFO per share	28,457			28,077			28,396			27,903
FFO per share available to common stockholders and noncontrolling interests	$	0.75		$	0.70		$	2.18		$	2.18

¹  The National Association of Real Estate Investment Trusts (NAREIT) developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by NAREIT as net income, computed in accordance with GAAP, plus real estate depreciation and amortization, and excluding extraordinary items, impairment charges on depreciable real estate assets and gains or losses from property dispositions. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs, which is disclosed in the Company’s Consolidated Statements of Cash Flows for the applicable periods. There are no material legal or functional restrictions on the use of FFO. FFO should not be considered as an alternative to net income, its most directly comparable GAAP measure, as an indicator of the Company’s operating performance, or as an alternative to cash flows as a measure of liquidity. Management considers FFO a meaningful supplemental measure of operating performance because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time (i.e. depreciation), which is contrary to what the Company believes occurs with its assets, and because industry analysts have accepted it as a performance measure. FFO may not be comparable to similarly titled measures employed by other REITs.

Acquisitions and Redevelopments

During the remainder of the year, the Company will continue its activities related to the development of Park Van Ness, may redevelop certain of the Current Portfolio Properties and may develop additional freestanding outparcels or expansions within certain of the Shopping Centers. Acquisition and development of properties are undertaken only after careful analysis and review, and management’s determination that such properties are expected to provide long-term earnings and cash flow growth. During the balance of the year, any developments, expansions or acquisitions are expected to be funded with bank borrowings from the Company’s credit line, construction financing, proceeds from the operation of the Company’s dividend reinvestment plan or other external capital resources available to the Company.

The Company has been selectively involved in acquisition, development, redevelopment and renovation activities. It continues to evaluate the acquisition of land parcels for retail and mixed-use development and acquisitions of operating properties for opportunities to enhance operating income and cash flow growth. The Company also continues to analyze redevelopment, renovation and expansion opportunities within the portfolio. The following describes the acquisition, development, redevelopment and renovation activities of the Company in 2014 and the nine months endedSeptember 30, 2015.

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Park Van Ness

The Company continues to develop Park Van Ness, a 271-unit residential project with approximately 9,000 square feet of street-level retail, below street-level structured parking, and amenities including a community room, landscaped courtyards, a fitness room and a rooftop pool and deck. Construction is projected to be completed late in the first quarter of 2016. When complete, the structure will comprise 11 levels, five of which on the east side will be below street level. Because of the change in grade from the street eastward to Rock Creek Park, apartments on all 11 levels will have park or city views. Structural concrete work has been completed. Exterior precast, masonry, glass, unit interior framing and drywall are nearing completion. Apartment fixtures are being installed and building common area finishes are in progress. The total cost of the project, excluding predevelopment expense and land (which the Company has owned), is expected to be approximately $93.0 million, a portion of which will be financed with a $71.6 million construction-to-permanent loan. Costs incurred through September 30, 2015, total approximately $63.5 million, of which $31.4 million has been financed by the loan.

1500, 1580, 1582 and 1584 Rockville Pike

In January 2014, the Company purchased for $8.0 million a single-tenant retail property with a 12,100 square foot CVS Pharmacy located at 1580 Rockville Pike in Rockville, Maryland, and incurred acquisition costs of $0.2 million.

In April 2014, the Company purchased for $11.0 million a single-tenant retail property with a 40,700 square foot furniture store located at 1582 Rockville Pike in Rockville, Maryland, and incurred acquisition costs totaling approximately $0.2 million. Concurrently with the purchase, the Company sold to the same party, for $11.0 million, the 53,765 square foot Olney Center located in Olney, Maryland.

In December 2014, the Company purchased for $6.2 million a single-tenant retail property with a 4,600 square foot restaurant located at 1584 Rockville Pike in Rockville, Maryland, and incurred acquisition costs totaling approximately $0.2 million.

The properties at 1580, 1582 and 1584 Rockville Pike are contiguous with each other and the Company’s asset at 1500 Rockville Pike. When combined with 1500 Rockville Pike, the four properties comprise 10.3 acres which are zoned for development potential of up to 1.2 million square feet of mixed-use space. The Company is actively engaged in a plan for redevelopment but has not committed to any timetable for commencement of construction.

Olney

Simultaneously with the sale of Olney Center, the Company entered into a lease of the property with the buyer and the Company continues to operate and manage the property. The lease term is 20 years and the Company has the option to purchase the property for $14.6 million at the end of the lease term. The purchaser has the right to sell the property to the Company at any time from and after April 2016 at a price equal to $11.0 million increased by 1.5% annually beginning January 1, 2015 and continuing each January thereafter. The Company has accounted for this transaction as a secured financing.

Giant Center

In April 2014, the Company sold for $7.5 million the 70,040 square foot Giant Center located in Milford Mill, Maryland and recognized a $6.1 million gain. As of March 31, 2014, the carrying amounts of the associated assets and liabilities were $0.5 million and $0.1 million, respectively. There was no debt on the property.

726, 730 and 750 N. Glebe Road

In August 2014, the Company purchased for $40.0 million a single-tenant retail property with a 16,900 square foot automobile dealership located at 750 N. Glebe Road in Arlington, Virginia, and incurred acquisition costs of $0.4 million. In December 2014, the Company purchased for $2.8 million an adjacent single-tenant retail property with a 2,000 square foot store, and incurred acquisition costs of $40,400. In September 2015, the Company purchased for $4.0 million an adjacent single-tenant property with a 4,800 square foot store, and incurred acquisition costs of $56,700. The properties comprise 2.5 acres of land which is zoned for development potential of up to 490,000 square feet of mixed-use space. The Company is actively engaged in a plan for redevelopment but has not committed to any timetable for commencement of construction.

Germantown Center

In 2014, the Company entered into a contingent ground lease with CVS and, as of June 30, 2015, all of the lease contingencies had been satisfied. CVS will demolish two of the four existing buildings that currently comprise the center and will construct a 13,500 square foot pharmacy building. Demolition is expected to commence in the fourth quarter of 2015 and CVS expects to commence operations in 2016. The Company incurred approximately $57,000 of predevelopment costs in the third quarter of 2015 and does not expect to incur further predevelopment costs related to the project.

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Westview Pad

In February 2015, the Company purchased for $0.9 million, including acquisition costs, a 1.1 acre retail pad site in Frederick, Maryland, which is contiguous with and an expansion of the Company's other Westview asset.

Portfolio Leasing Status

The following chart sets forth certain information regarding Commercial leases at our properties.

	Total Properties		Total Square Footage		Percent Leased
	Shopping Centers	Mixed-Use	Shopping Centers	Mixed-Use	Shopping Centers		Mixed-Use
September 30, 2015	50	6	7,905,264	1,453,159	95.4	%	91.1	%
September 30, 2014	50	6	7,879,659	1,453,159	95.0	%	93.6	%

As of September 30, 2015, 94.8% of the Commercial portfolio was leased, unchanged from September 30, 2014. On a same property basis, 94.8% of the Commercial portfolio was leased, unchanged from September 30, 2014. As of September 30, 2015, the Clarendon Center apartments were 97.1% leased compared to 99.6% at September 30, 2014.

The following table shows selected data for leases executed in the indicated periods. The information is based on executed leases without adjustment for the timing of occupancy, tenant defaults, or landlord concessions. The base rent for an expiring lease is the annualized contractual base rent, on a cash basis, as of the expiration date of the lease. The base rent for a new or renewed lease is the annualized contractual base rent, on a cash basis, as of the expected rent commencement date. Because tenants that execute leases may not ultimately take possession of their space or pay all of their contractual rent, the changes presented in the table provide information only about trends in market rental rates. The actual changes in rental income received by the Company may be different.

			Average Base Rent per Square Foot
Three months ended September 30,	Square Feet	Number of Leases	New/Renewed Leases		Expiring Leases
2015	379,634	87	$	20.05	$	19.56
2014	415,050	76	14.71		14.61

Additional information about the 2015 leasing activity is set forth below. The below information includes leases for space which had not been previously leased during the period of the Company's ownership, either a result of acquisition or development.

	New Leases			Renewed Leases
Number of leases	30			57
Square feet	131,188			248,446
Per square foot average annualized:
Base rent	$	22.51		$	18.75
Tenant improvements	(1.75		)	(0.11		)
Leasing costs	(0.70		)	(0.01		)
Rent concessions	(0.69		)	—
Effective rents	$	19.37		$	18.63

During the three months ended September 30, 2015, the Company entered into 64 new or renewed apartment leases. The average monthly rent per square foot for these leases increased to $3.57 from $3.51. During the three months ended September 30, 2014, the Company entered into 49 new or renewed apartment leases. The average monthly rent per square foot for these leases increased to $3.54 from $3.45.

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As of December 31, 2014, 838,240 square feet of Commercial space was subject to leases scheduled to expire in 2015. Of those leases, as of September 30, 2015, leases representing 204,205 square feet of Commercial space have not yet renewed and are scheduled to expire over the next three months. Below is information about existing and estimated market base rents per square foot for that space.

Expiring Leases:	Total
Square feet	204,205
Average base rent per square foot	$	16.30
Estimated market base rent per square foot	$	15.94

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to certain financial market risks, the most predominant being fluctuations in interest rates. Interest rate fluctuations are monitored by management as an integral part of the Company’s overall risk management program, which recognizes the unpredictability of financial markets and seeks to reduce the potentially adverse effect on the Company’s results of operations.

The Company may, where appropriate, employ derivative instruments, such as interest rate swaps, to mitigate the risk of interest rate fluctuations. The Company does not enter into derivatives or other financial instruments for trading or speculative purposes. On June 29, 2010, the Company entered into an interest rate swap agreement with a $45.6 million notional amount to manage the interest rate risk associated with $45.6 million of variable-rate debt. The swap agreement was effective July 1, 2010, terminates on July 1, 2020 and effectively fixes the interest rate on the debt at 5.83%. The fair value of the swap at September 30, 2015 was approximately $3.6 million and is reflected in accounts payable, accrued expenses and other liabilities in the consolidated balance sheet.

The Company is exposed to interest rate fluctuations which will affect the amount of interest expense of its variable rate debt and the fair value of its fixed rate debt. As of September 30, 2015, the Company had variable rate indebtedness totaling $44.9 million. If the interest rates on the Company’s variable rate debt instruments outstanding at September 30, 2015 had been one percentage point higher, our annual interest expense relating to these debt instruments would have increased by $449,000 based on those balances. As of September 30, 2015, the Company had fixed-rate indebtedness totaling $824.5 million with a weighted average interest rate of 5.54%. If interest rates on the Company’s fixed-rate debt instruments at September 30, 2015 had been one percentage point higher, the fair value of those debt instruments on that date would have been approximately $44.5 million less than the carrying value.

Item 4. Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Company’s reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chairman and Chief Executive Officer, its Senior Vice President-Chief Financial Officer, Secretary and Treasurer, and its Senior Vice President-Chief Accounting Officer as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of “disclosure controls and procedures” in Rule 13a-15(e) promulgated under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

The Company carried out an evaluation under the supervision and with the participation of the Company’s management, including its Chairman and Chief Executive Officer, its Senior Vice President-Chief Financial Officer, Secretary and Treasurer, and its Senior Vice President-Chief Accounting Officer of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of September 30, 2015. Based on the foregoing, the Company’s Chairman and Chief Executive Officer, its Senior Vice President-Chief Financial Officer, Secretary and Treasurer and its Senior Vice President-Chief Accounting Officer concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2015.

During the quarter ended September 30, 2015, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 1A. Risk Factors

The Company has no material updates to the risk factors presented in Item 1A. Risk Factors in the 2014 Annual Report of the Company on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

B. Francis Saul II, the Company’s Chairman of the Board and Chief Executive Officer, his spouse and entities affiliated with Mr. Saul II, through participation in the Company’s Dividend Reinvestment and Stock Purchase Plan for the July 31, 2015 dividend distribution acquired 26,354 shares of common stock at a price of $50.30 per share and 32,041 limited partnership units at a price of $50.30 per unit.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

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Item 6. Exhibits

3.	(a)	First Amended and Restated Articles of Incorporation of Saul Centers, Inc. filed with the Maryland Department of Assessments and Taxation on August 23, 1994 and filed as Exhibit 3.(a) of the 1993 Annual Report of the Company on Form 10-K are hereby incorporated by reference. Articles of Amendment to the First Amended and Restated Articles of Incorporation of Saul Centers, Inc., filed with the Maryland Department of Assessments and Taxation on May 28, 2004 and filed as Exhibit 3.(a) of the June 30, 2004 Quarterly Report of the Company is hereby incorporated by reference. Articles of Amendment to the First Amended and Restated Articles of Incorporation of Saul Centers, Inc., filed with the Maryland Department of Assessments and Taxation on May 26, 2006 and filed as Exhibit 3.(a) of the Company’s Current Report on Form 8-K filed May 30, 2006 is hereby incorporated by reference. Articles of Amendment to the First Amended and Restated Articles of Incorporation of Saul Centers, Inc., filed with the Maryland Department of Assessments and Taxation on May 14, 2013 and filed as Exhibit 3.(a) of the Company’s Current Report on Form 8-K filed May 14, 2013 is hereby incorporated by reference.
	(b)	Amended and Restated Bylaws of Saul Centers, Inc. as in effect at and after August 24, 1993 and as of August 26, 1993 and filed as Exhibit 3.(b) of the 1993 Annual Report of the Company on Form 10-K are hereby incorporated by reference. Amendment No. 1 to Amended and Restate Bylaws of Saul Centers, Inc. adopted November 29, 2007 and filed as Exhibit 3(b) of the Company’s Current Report on Form 8-K filed December 3, 2007 is hereby incorporated by reference.
	(c)	Articles Supplementary to First Amended and Restated Articles of Incorporation of the Company, dated October 30, 2003, filed as Exhibit 2 to the Company’s Current Report on Form 8-A dated October 31, 2003, is hereby incorporated by reference.
	(d)	Articles Supplementary to First Amended and Restated Articles of Incorporation of the Company, as amended, dated March 26, 2008, filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed March 27, 2008, is hereby incorporated by reference.
	(e)	Articles Supplementary to First Amended and Restated Articles of Incorporation of the Company, dated February 6, 2013, filed as Exhibit 3.2 to Saul Centers’ Registration Statement on Form 8-A, filed February 7, 2013, is hereby incorporated by reference.
	(f)	Articles Supplementary to First Amended and Restated Articles of Incorporation of the Company, dated November 10, 2014, filed as Exhibit 3.2 of the Company's Current Report on Form 8-K, dated November 12, 2014, is hereby incorporated by reference.
4.	(a)	Deposit Agreement, dated November 5, 2003, among the Company, Continental Stock Transfer & Trust Company, as Depositary, and the holders of depositary receipts, each representing 1/100th of a share of 8% Series A Cumulative Redeemable Preferred Stock of Saul Centers, Inc. and filed as Exhibit 4 to the Registration Statement on Form 8-A on October 31, 2003 is hereby incorporated by reference.
	(b)	Deposit Agreement, dated February 6, 2013, among the Company, Continental Stock Transfer & Trust Company, as Depositary, and the holders of depositary receipts, each representing 1/100th of a share of 6.875% Series C Cumulative Redeemable Preferred Stock of Saul Centers, Inc. filed as Exhibit 4.1 to Saul Centers’ Registration Statement on Form 8-A on February 7, 2013 is hereby incorporated by reference.
	(c)	Form specimen of receipt representing the depositary shares, each representing 1/100th of a share of 8% Series A Cumulative Redeemable Preferred Stock of Saul Centers, Inc. and included as part of Exhibit 4 to the Registration Statement on Form 8-A on October 31, 2003 is hereby incorporated by reference.
	(d)	Form specimen of receipt representing the depositary shares, each representing 1/100th of a share of 6.875% Series C Cumulative Redeemable Preferred Stock of Saul Centers, Inc. and included as part of Exhibit 4.1 to Saul Centers’ Registration Statement on Form 8-A on February 7, 2013 is hereby incorporated by reference.
	(e)	First Amendment to Deposit Agreement, dated November 12, 2014, among the Company, Continental Stock Transfer & Trust Company, as Depositary, and the holders of depositary receipts, each representing 1/100th of a share of 6.875% Series C Cumulative Redeemable Preferred Stock of Saul Centers, Inc. filed as Exhibit 4.2 to of the Company's Current Report on Form 8-K, dated November 12, 2014, is hereby incorporated by reference.

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10.	(a)	First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit No. 10.1 to Registration Statement No. 33-64562 is hereby incorporated by reference. The First Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership, the Second Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership, and the Third Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.(a) of the 1995 Annual Report of the Company on Form 10-K is hereby incorporated by reference. The Fourth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.(a) of the March 31, 1997 Quarterly Report of the Company is hereby incorporated by reference. The Fifth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 4.(c) to Registration Statement No. 333-41436, is hereby incorporated by reference. The Sixth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.(a) of the September 30, 2003 Quarterly Report of the Company on Form 10-Q is hereby incorporated by reference. The Seventh Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.(a) of the December 31, 2003 Annual Report of the Company on Form 10-K is hereby incorporated by reference. The Eighth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.(a) of the December 31, 2007 Annual Report of the Company on Form 10-K is hereby incorporated by reference. The Ninth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.(a) of the March 31, 2008 Quarterly Report of the Company on Form 10-Q is hereby incorporated by reference. The Tenth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.(a) of the March 31, 2008 Quarterly Report of the Company on Form 10-Q is hereby incorporated by reference. The Eleventh Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.(a) of the September 30, 2011 Quarterly Report of the Company on Form 10-Q is hereby incorporated by reference. The Twelfth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.1 of the Current Report of the Company on Form 8-K dated February 12, 2013 is hereby incorporated by reference. The Thirteenth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership filed as Exhibit 10.1 of the Current Report of the Company on Form 8-K dated November 12, 2014, is hereby incorporated by reference.
	(b)	First Amended and Restated Agreement of Limited Partnership of Saul Subsidiary I Limited Partnership and Amendment No. 1 thereto filed as Exhibit 10.2 to Registration Statement No. 33-64562 are hereby incorporated by reference. The Second Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Subsidiary I Limited Partnership, the Third Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Subsidiary I Limited Partnership and the Fourth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Subsidiary I Limited Partnership as filed as Exhibit 10.(b) of the 1997 Annual Report of the Company on Form 10-K are hereby incorporated by reference.
	(c)	First Amended and Restated Agreement of Limited Partnership of Saul Subsidiary II Limited Partnership and Amendment No. 1 thereto filed as Exhibit 10.3 to Registration Statement No. 33-64562 are hereby incorporated by reference. The Second Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Subsidiary II Limited Partnership filed as Exhibit 10.(c) of the June 30, 2001 Quarterly Report of the Company is hereby incorporated by reference. The Third Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Subsidiary II Limited Partnership as filed as exhibit 10.(c) of the 2006 Annual Report of the Company on Form 10-K are hereby incorporated by reference. The Fourth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Subsidiary II Limited Partnership as filed as Exhibit 10.(c) of the 2009 Annual Report of the Company on Form 10-K are hereby incorporated by reference.
	(d)	Property Conveyance Agreement filed as Exhibit 10.4 to Registration Statement No. 33-64562 is hereby incorporated by reference.
	(e)	Management Functions Conveyance Agreement filed as Exhibit 10.5 to Registration Statement No. 33-64562 is hereby incorporated by reference.
	(f)	Registration Rights and Lock-Up Agreement filed as Exhibit 10.6 to Registration Statement No. 33-64562 is hereby incorporated by reference.
	(g)	Exclusivity and Right of First Refusal Agreement filed as Exhibit 10.7 to Registration Statement No. 33-64562 is hereby incorporated by reference.
	(h)	Agreement of Assumption dated as of August 26, 1993 executed by Saul Holdings Limited Partnership and filed as Exhibit 10.(i) of the 1993 Annual Report of the Company on Form 10-K is hereby incorporated by reference.
	(i)	Deferred Compensation Plan for Directors, dated as of April 23, 2004 and filed as Exhibit 10.(k) of the June 30, 2004 Quarterly Report of the Company is hereby incorporated by reference.
	(j)	Amended and Restated Credit Agreement, dated as of June 24, 2014, by and among Saul Holdings Limited Partnership as Borrower; Wells Fargo Bank, National Association, as Administrative Agent and Sole Lead Arranger; JP Morgan Chase Bank, N.A., as Syndication Agent; and Wells Fargo Bank, National Association, JP Morgan Chase Bank, N.A., Capital One, N.A. and Citizens Bank of Pennsylvania as Lenders, as filed as Exhibit 10.1 of the Company’s Current Report on Form 8-K, dated June 25, 2014, is hereby incorporated by reference.
	(k)	Amended and Restated Guaranty, dated as of June 24, 2014, by and between Saul Centers, Inc., as Guarantor, and Wells Fargo Bank, National Association, as Administrative Agent and Sole Lead Arranger for itself and other financial institutions as Lenders, as filed as Exhibit 10.2 of the Company’s Current Report on Form 8-K, dated June 25, 2014, is hereby incorporated by reference.

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	(l)	The Saul Centers, Inc. 2004 Stock Plan, as amended on April 25, 2008 and May 10, 2013 and filed as Exhibit 10.(a) of the Company's Current Report on Form 8-K filed on May 14, 2013, is hereby incorporated by reference.
	(m)	Form of Director Stock Option Agreements, as filed as Exhibit 10.(j) of the September 30, 2004 Quarterly Report of the Company, is hereby incorporated by reference.
	(n)	Form of Officer Stock Option Grant Agreements, as filed as Exhibit 10.(k) of the September 30, 2004 Quarterly Report of the Company, is hereby incorporated by reference.
	(o)	Promissory Note, dated as of March 23, 2011, by Clarendon Center LLC to The Prudential Life Insurance Company of America as filed as Exhibit 10.(a) of the Company’s Current Report on Form 8-K dated April 28, 2011, is hereby incorporated by reference.
	(p)	Deed of Trust, Security Agreement and Fixture Filing, dated as of March 23, 2011, by Clarendon Center LLC to Lawyers Title Realty Services, Inc. as trustee for the benefit of The Prudential Insurance Company of America, as beneficiary, as filed as Exhibit 10.(b) of the Company’s Current Report on Form 8-K dated April 28, 2011, is hereby incorporated by reference.
	(q)	Shared Services Agreement, dated as of July 1, 2004, between B. F. Saul Company and Saul Centers, Inc., as filed as Exhibit 10. (c) of the Company’s Current Report on Form 8-K dated August 11, 2010, is hereby incorporated by reference.
	(r)	Purchase Agreement, dated as of August 9, 2011, by and among the Company, Saul Holdings Limited Partnership and B. F. Saul Real Estate Investment Trust and filed as Exhibit 10.(r) of the September 30, 2011 Quarterly Report of the Company is hereby incorporated by reference.
	(s)	Agreement of Purchase and Sale, dated as of August 9, 2011, between Cranberry Retail, Inc. and Saul Holdings Limited Partnership, as amended and filed as Exhibit 2.(a) of the September 30, 2011 Quarterly Report of the Company is hereby incorporated by reference.
	(t)	Agreement of Purchase and Sale, dated as of August 9, 2011, between Kentlands Retail, Inc. and Saul Holdings Limited Partnership, as amended and filed as Exhibit 2.(b) of the September 30, 2011 Quarterly Report of the Company is hereby incorporated by reference.
	(u)	Agreement of Purchase and Sale, dated as of August 9, 2011, between Severna Retail, Inc. and Saul Holdings Limited Partnership, as amended and filed as Exhibit 2.(c) of the September 30, 2011 Quarterly Report of the Company is hereby incorporated by reference.
	(v)	Consulting Agreement, dated as of September 4, 2012, by and among Saul Centers, Inc., its subsidiary entities and B. Francis Saul III and filed as Exhibit 10(v) of the September 30, 2012 Quarterly Report of the Company is hereby incorporated by reference.
	(w)	Separation Agreement, dated as of March 25, 2014, by and among Saul Centers, Inc., B. F. Saul Company and Thomas H. McCormick and filed as Exhibit 10(w) of the March 31, 2014 Quarterly Report of the Company is hereby incorporated by reference.
31.		Rule 13a-14(a)/15d-14(a) Certifications of Chief Executive Officer and Chief Financial Officer (filed herewith).
32.		Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer (filed herewith).
99.	(a)	Schedule of Portfolio Properties (filed herewith).
101.		The following financial statements from the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2015, formatted in Extensible Business Reporting Language (“XBRL”): (i) consolidated balance sheets, (ii) consolidated statements of operations, (iii) consolidated statements of changes in stockholders’ equity and comprehensive income, (iv) consolidated statements of cash flows, and (v) the notes to the consolidated financial statements.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SAUL CENTERS, INC. (Registrant)
Date: November 2, 2015	/s/ J. Page Lansdale
	J. Page Lansdale, President and Chief Operating Officer
Date: November 2, 2015	/s/ Scott V. Schneider
	Scott V. Schneider Senior Vice President, Chief Financial Officer (principal financial officer)
Date: November 2, 2015	/s/ Joel A. Friedman
	Joel A. Friedman Senior Vice President, Chief Accounting Officer (principal accounting officer)

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EX-31

Exhibit 31

CERTIFICATIONS

I, B. Francis Saul II, certify that:

1. I have reviewed this report on Form 10-Q of Saul Centers, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal period that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 2, 2015

/s/ B. Francis Saul II____

B. Francis Saul II

Chairman and Chief Executive Officer

CERTIFICATIONS

I, Scott V. Schneider, certify that:

1. I have reviewed this report on Form 10-Q of Saul Centers, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal period that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 2, 2015

/s/ Scott V. Schneider_

Scott V. Schneider

Senior Vice President,

Chief Financial Officer,

Secretary and Treasurer

EX-32

Exhibit 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, B. Francis Saul II, the Chairman and Chief Executive Officer of Saul Centers, Inc. (the “Company”), has executed this certification in connection with the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the period ending September 30, 2015 (the “Report”). The undersigned hereby certifies that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:November 2, 2015/s/ B. Francis Saul II______________________

Name: B. Francis Saul II

Title: Chairman and Chief Executive Officer

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Scott V. Schneider, the Chief Financial Officer of Saul Centers, Inc. (the “Company”), has executed this certification in connection with the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the period ending September 30, 2015 (the “Report”). The undersigned hereby certifies that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:November 2, 2015/s/ Scott V. Schneider_________

Name: Scott V. Schneider

Title: Senior Vice President,

Chief Financial Officer, Secretary and

Treasurer

EX-99.A

																			Exhibit 99 (a)
Saul Centers, Inc.
Schedule of Current Portfolio Properties
September 30, 2015
						Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Percentage Leased as of September 30,										(1)
		Property		Location					2015		2014		2013		2012		2011		Anchor / Significant Tenants
Shopping Centers
	Ashburn Village			Ashburn, VA		221,273	1994/00/01/02/06	26.4	95	%	94	%	93	%	91	%	87	%	Giant Food, Hallmark Cards, McDonald's, Burger King, Dunkin Donuts, Kinder Care
	Ashland Square Phase I			Dumfries, VA		23,120	2007	2.0	100	%	100	%	100	%	100	%	100	%	Capital One Bank, CVS Pharmacy, The All American Steakhouse
	Beacon Center			Alexandria, VA		358,071	1972 (1993/99/07)	32.3	100	%	100	%	100	%	100	%	100	%	Lowe's Home Improvement Center, Giant Food, Outback Steakhouse, Marshalls, Hancock Fabrics, Home Goods, Party Depot, Panera Bread, TGI Fridays, Starbucks, Famous Dave's, Chipotle, Subway
	BJ's Wholesale Club			Alexandria, VA		115,660	2008	9.6	100	%	100	%	100	%	100	%	100	%	BJ's Wholesale Club
	Boca Valley Plaza			Boca Raton, FL		121,269	2004	12.7	100	%	89	%	91	%	81	%	78	%	Publix, Wachovia Bank, Jaco Hybrid Training, Subway
	Boulevard			Fairfax, VA		49,140	1994 (1999/09)	5.0	100	%	95	%	100	%	100	%	100	%	Panera Bread, Party City, Petco
	Briggs Chaney MarketPlace			Silver Spring, MD		194,347	2004	18.2	99	%	99	%	99	%	99	%	97	%	Safeway, Ross Dress For Less, Family Dollar, Advance Auto Parts, McDonald's, Wendy's, Chuck E. Cheese's
	Broadlands Village			Ashburn, VA		174,734	2003/4/6	24.0	98	%	95	%	88	%	85	%	91	%	Safeway, The All American Steakhouse, Bonefish Grill, Dollar Tree, Starbucks, Subway
	Countryside Marketplace			Sterling, VA		138,229	2004	16.0	93	%	93	%	90	%	92	%	92	%	Safeway, CVS Pharmacy, Starbucks, McDonald's, 7-Eleven, Orange Theory
	Cranberry Square			Westminster, MD		141,450	2011	18.9	97	%	98	%	95	%	92	%	91	%	Giant Food, Staples, Party City, Pier 1 Imports, Jos. A. Bank, Wendy's, Giant Gas Station, Mattress Discounters, Banfield Pet Hospital
	Cruse MarketPlace			Cumming, GA		78,686	2004	10.6	92	%	88	%	84	%	88	%	88	%	Publix, Subway, Orange Theory
	Flagship Center			Rockville, MD		21,500	1972, 1989	0.5	100	%	100	%	100	%	100	%	100	%	Capital One Bank
	French Market			Oklahoma City, OK		244,718	1974 (1984/98)	13.8	97	%	100	%	96	%	87	%	98	%	Burlington Coat Factory, Bed Bath & Beyond, Petco, The Tile Shop, Staples, Lakeshore Learning Center, Dollar Tree, Circle K
	Germantown			Germantown, MD		27,241	1992	2.7	100	%	81	%	81	%	81	%	82	%	Jiffy Lube, CVS Pharmacy
	726/730/750 N. Glebe Road			Arlington, VA		23,688	2014/15	2.5	100	%	100	%	N/A		N/A		N/A		Rosenthal Mazda
	The Glen			Woodbridge, VA		136,440	1994 (2005)	14.7	95	%	96	%	97	%	97	%	96	%	Safeway Marketplace, The All American Steakhouse, Panera Bread, Five Guys, Chipotle
	Great Eastern			District Heights, MD		255,398	1972 (1995)	31.9	74	%	74	%	74	%	98	%	98	%	Pep Boys, No Excuse Workout, Room Style Furniture
	Great Falls Center			Great Falls, VA		91,666	2008	11.0	99	%	98	%	95	%	98	%	93	%	Safeway, CVS Pharmacy, Capital One Bank, Starbucks, Subway
	Hampshire Langley			Takoma Park, MD		131,700	1972 (1979)	9.9	100	%	100	%	100	%	99	%	98	%	Expo E Mart, Radio Shack, Starbucks, Chuck E. Cheese's, Sardi's Chicken, Kool Smiles
	Hunt Club Corners			Apopka, FL		101,522	2006	13.9	94	%	94	%	94	%	94	%	94	%	Publix, Walgreens, Radio Shack, Hallmark
	Jamestown Place			Altamonte Springs, FL		96,341	2005	10.9	90	%	88	%	86	%	92	%	92	%	Publix, Carrabas Italian Grill
	Kentlands Square I			Gaithersburg, MD		114,381	2002	11.5	100	%	100	%	100	%	100	%	98	%	Lowe's Home Improvement Center, Chipotle
	Saul Centers, Inc.
	Schedule of Current Portfolio Properties
	September 30, 2015
						Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Percentage Leased as of September 30,										(1)
		Property		Location					2015		2014		2013		2012		2011		Anchor / Significant Tenants
	Shopping Centers (continued)
	Kentlands Square II			Gaithersburg, MD		247,783	2011	23.4	99	%	99	%	96	%	96	%	100	%	Giant Food, Kmart, Party City, Panera Bread, Not Your Average Joe's, Payless Shoes, Hallmark, Chick-Fil-A, Coal Fire Pizza, Brasserie Beck, Cava Mezza Grill, Zengo Cycle
	Kentlands Place			Gaithersburg, MD		40,697	2005	3.4	100	%	100	%	100	%	100	%	93	%	Elizabeth Arden's Red Door Salon, Bonefish Grill, Subway
	Lansdowne Town Center			Leesburg, VA		189,422	2006	23.4	97	%	94	%	94	%	90	%	94	%	Harris Teeter, CVS Pharmacy, Panera Bread, Not Your Average Joe's, Starbucks, Capital One Bank, Pike's Fish House
	Leesburg Pike Plaza			Baileys Crossroads, VA		97,752	1966 (1982/95)	9.4	100	%	96	%	100	%	100	%	100	%	CVS Pharmacy, Party Depot, FedEx Kinko's, Verizon Wireless
	Lumberton Plaza			Lumberton, NJ		192,718	1975 (1992/96)	23.3	91	%	95	%	94	%	80	%	65	%	Aldi, Rite Aid, Virtua Health Center, Family Dollar, Retro Fitness, Big Lots, Burger King
	Metro Pike Center			Rockville, MD		67,488	2010	4.6	77	%	83	%	91	%	79	%	79	%	McDonald's, Jennifer Convertibles, Dunkin Donuts, 7-Eleven, Mattress Warehouse
	Shops at Monocacy			Frederick, MD		109,144	2004	13.0	100	%	97	%	93	%	89	%	92	%	Giant Food, Giant Gas Station, Panera Bread, Starbucks, Five Guys, California Tortilla, Firehouse Subs, Comcast
	Northrock			Warrenton, VA		99,789	2009	15.4	94	%	91	%	85	%	81	%	81	%	Harris Teeter, Longhorn Steakhouse, Ledo's Pizza, Capital One Bank, Jos. A Bank
	Olde Forte Village			Ft. Washington, MD		143,577	2003	16.0	97	%	97	%	97	%	93	%	90	%	Safeway, Advance Auto Parts, Dollar Tree, Radio Shack, McDonald's, Wendy's, Ledo's Pizza
	Olney			Olney, MD		53,765	1975 (1990)	3.7	96	%	94	%	94	%	95	%	97	%	Rite Aid, Olney Grill, Ledo's Pizza, Popeye's, Sardi's Fusion Restaurant, Jersey Mikes
	Orchard Park			Dunwoody, GA		87,365	2007	10.5	98	%	98	%	94	%	90	%	90	%	Kroger, GNC, Subway, Pacific Dental
	Palm Springs Center			Altamonte Springs, FL		126,446	2005	12.0	98	%	98	%	98	%	97	%	94	%	Albertson's, Duffy's Sports Grill, Toojay's Deli, The Tile Shop, Rockler Tools
	Ravenwood			Baltimore, MD		93,328	1972 (2006)	8.0	99	%	96	%	94	%	91	%	93	%	Giant Food, Starbucks
	11503 Rockville Pk / 5541 Nicholson Ln			Rockville, MD		40,249	2010 / 2012	3.0	63	%	63	%	70	%	100	%	100	%	Staples, Casual Male
	1500/1580/1582/1584 Rockville Pike			Rockville, MD		110,128	2012/2014	10.3	90	%	99	%	100	%	N/A		N/A		Party City, CVS Pharmacy, Sheffield Furniture
	Seabreeze Plaza			Palm Harbor, FL		146,673	2005	18.4	93	%	97	%	91	%	98	%	95	%	Publix, Earth Origins Health Food, Petco, Planet Fitness, Vision Works, My Salon Suites
	Marketplace at Sea Colony			Bethany Beach, DE		21,677	2008	5.1	95	%	95	%	91	%	90	%	92	%	Seacoast Realty, Armand's Pizza, Candy Kitchen, Touch of Italy
	Seven Corners			Falls Church, VA		573,481	1973 (1994-7/07)	31.6	100	%	100	%	100	%	100	%	100	%	The Home Depot, Shoppers Food & Pharmacy, Michaels Arts & Crafts, Barnes & Noble, Ross Dress For Less, Ski Chalet, G Street Fabrics, Off-Broadway Shoes, JoAnn Fabrics, Dress Barn, Starbucks, Dogfishhead Ale House, Red Robin Gourmet Burgers, Chipotle, Wendy's, Burlington Coat Factory
	Severna Park Marketplace			Severna Park, MD		254,174	2011	20.6	100	%	100	%	100	%	100	%	100	%	Giant Food, Kohl's, Office Depot, A.C. Moore, Goodyear, Chipotle, McDonald's, Jos. A. Bank, Radio Shack, Five Guys, Unleashed (Petco)
	Shops at Fairfax			Fairfax, VA		68,762	1975 (1993/99)	6.7	100	%	96	%	100	%	100	%	95	%	Super H Mart
	Saul Centers, Inc.
	Schedule of Current Portfolio Properties
	September 30, 2015
						Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Percentage Leased as of September 30,										(1)
		Property		Location					2015		2014		2013		2012		2011		Anchor / Significant Tenants
	Shopping Centers (continued)
	Smallwood Village Center			Waldorf, MD		174,749	2006	25.1	69	%	72	%	74	%	70	%	63	%	Safeway, CVS Pharmacy, Family Dollar
	Southdale			Glen Burnie, MD		484,035	1972 (1986)	39.6	95	%	89	%	97	%	93	%	84	%	The Home Depot, Michaels Arts & Crafts, Marshalls, PetSmart, Value City Furniture, Athletic Warehouse, Starbucks, Gallo Clothing, Office Depot, The Tile Shop, Mercy Personal Physicians
	Southside Plaza			Richmond, VA		371,761	1972	32.8	98	%	98	%	98	%	89	%	87	%	Community Supermarket, Maxway, Citi Trends, City of Richmond, McDonald's, Burger King, Kool Smiles, Hibachi Grill
	South Dekalb Plaza			Atlanta, GA		163,418	1976	14.6	90	%	93	%	94	%	88	%	87	%	Rose's, Big Lots, Emory Clinic, Deal$ (Dollar Tree), Shoe Land
	Thruway			Winston-Salem, NC		362,456	1972 (1997)	30.5	96	%	96	%	95	%	93	%	85	%	Harris Teeter, Trader Joe's, Stein Mart, Talbots, Hanes Brands, Jos. A. Bank, Bonefish Grill, Chico's, Ann Taylor Loft, Rite Aid, FedEx Kinkos, Plow & Hearth, New Balance, Aveda Salon, Christies Hallmark, Carter's Kids, McDonald's, Chick-Fil-A, Wells Fargo Bank, Francesca's Collections, Great Outdoor Provision Company, White House / Black Market, Soma
	Village Center			Centreville, VA		146,032	1990	17.2	94	%	98	%	98	%	98	%	90	%	Giant Food, Tuesday Morning, Starbucks, McDonald's, Pet Supplies Plus, Bikram Yoga
	Westview Village			Frederick, MD		97,145	2009	11.6	95	%	90	%	87	%	82	%	55	%	Sleepy's, Music & Arts, Firehouse Subs, CiCi's Pizza, Café Rio, Five Guys, Regus, Silver Diner
	White Oak			Silver Spring, MD		480,676	1972 (1993)	27.9	99	%	100	%	100	%	100	%	99	%	Giant Food, Sears, Walgreens, Boston Market, Sarku, Capital One Bank
				Total Shopping Centers	(3)	7,905,264		760.1	95.4	%	95.0	%	94.7	%	93.0	%	90.8	%
Saul Centers, Inc.
Schedule of Current Portfolio Properties
September 30, 2015
						Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Percentage Leased as of September 30,										(1)
		Property		Location					2015		2014		2013		2012		2011		Anchor / Significant Tenants
Mixed-Use Properties
	Avenel Business Park			Gaithersburg, MD		390,683	1981-2000	37.1	85	%	90	%	91	%	87	%	79	%	General Services Administration, Gene Dx, Inc., Molecular Transfer, Inc.
	Clarendon Center-North Block			Arlington, VA		108,387	2010	0.6	96	%	96	%	96	%	90	%	86	%	Pete's New Haven Pizza, AT&T, Four Sisters Grill, Airline Reporting Corporation
	Clarendon Center-South Block			Arlington, VA		104,894	2010	1.3	100	%	100	%	100	%	100	%	91	%	Trader Joe's, Circa, Burke & Herbert Bank, Bracket Room, Cannon Design, Winston Partners, Keppler Speakers Bureau, ECG Management Co., Leadership Institute, Capital One
	Clarendon Center Residential-South Block (244 units)					188,671	2010		97	%	100	%	98	%	100	%	100	%
	Crosstown Business Center			Tulsa, OK		197,127	1975 (2000)	22.4	85	%	94	%	81	%	75	%	87	%	Roxtec, Keystone Automotive, Freedom Express, Direct TV, Baldor Oklahoma Power Systems
	601 Pennsylvania Ave.			Washington, DC		227,021	1973 (1986)	1.0	98	%	95	%	95	%	95	%	96	%	National Gallery of Art, Americas Health Insurance Plans, Credit Union National Assn., Southern Company, Regus, Freedom Forum, Capital Grille
	Washington Square			Alexandria, VA		236,376	1975 (2000)	2.0	93	%	93	%	89	%	89	%	89	%	Vanderweil Engineering, Freeman Expositions, Tauri Group, Cooper Carry, Bank of America, Marketing General, Alexandria Economic Development, Trader Joe's, Fed Ex Kinko's, Talbots, Teaism Restaurant, Starbucks, Cardinal Bank, National Pace Association
				Total Mixed-Use Properties	(3)	1,453,159		64.4	91.1	%	93.6	%	91.0	%	84.0	%	84.3	%	(2)
				Total Portfolio	(3)	9,358,423		824.5	94.8	%	94.8	%	94.2	%	91.6	%	89.8	%	(2)
Land and Development Parcels
	Ashland Square Phase II			Manassas, VA			2004	17.3	Marketing to grocers and other retail businesses, with a development timetable yet to be finalized.
	Park Van Ness			Washington, DC			1973/2011	1.4	Construction of a 271-unit residential project with street-level retail is currently in process.
	New Market			New Market, MD			2005	35.5	Parcel will accommodate retail development in excess of 120,000 SF near I-70, east of Frederick, Maryland. A development timetable has not been determined.
				Total Development Properties				54.2
		(1	)	Percentage leased is a percentage of rentable square feet leased for commercial space and a percentage of units leased for apartments. Includes only operating properties owned as of September 30, 2015. As such, prior year totals do not agree to prior year tables.
		(2	)	Total percentage leased is for commercial space only.
		(3	)	Prior year leased percentages for Total Shopping Centers, Total Mixed-Use Properties and Total Portfolio have been recalculated to exclude the impact of properties sold or removed from service and, therefore, the percentages reported in this table may be different than the percentages previously reported.

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Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs - Interest Expense and Amortization of Deferred Debt Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Debt Disclosure [Abstract]
Interest incurred	$ 11,489	$ 11,415	$ 34,287	$ 33,998
Amortization of deferred debt costs	340	355	1,094	969
Capitalized interest	(600)	(186)	(1,393)	(430)
Interest expense and amortization of deferred debt costs	$ 11,229	$ 11,584	$ 33,988	$ 34,537

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Business Segments - Schedule of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Real estate rental operations:
Revenue	$ 52,376	$ 50,595	$ 156,175	$ 155,828
Expenses	(12,862)	(12,080)	(39,111)	(37,150)
Income from real estate	39,514	38,515	117,064	118,678
Interest expense and amortization of deferred debt costs	(11,229)	(11,584)	(33,988)	(34,537)
General and administrative	(3,802)	(3,837)	(11,712)	(12,540)
Acquisition related costs	(57)	(359)	(78)	(738)
Predevelopment expenses	(57)		(57)	(503)
Subtotal	24,369	22,735	71,229	70,360
Depreciation and amortization of deferred leasing costs	(11,131)	(10,256)	(32,382)	(30,745)
Gain on sale of property	0	0	11	6,069
Change in fair value of derivatives	(6)	1	(12)	(6)
Net Income	13,232	12,480	38,846	45,678
Capital investment	24,336	37,567	49,913	69,912
Total assets	1,296,950	1,258,528	1,296,950	1,258,528	$ 1,266,987
Mixed-Use Properties
Real estate rental operations:
Predevelopment expenses	0
Corporate and Other
Real estate rental operations:
Predevelopment expenses	0
Operating Segments | Shopping Centers
Real estate rental operations:
Revenue	38,903	37,506	116,567	116,381
Expenses	(8,295)	(8,088)	(25,785)	(25,580)
Income from real estate	30,608	29,418	90,782	90,801
Interest expense and amortization of deferred debt costs	0	0	0	0
General and administrative	0	0	0	0
Acquisition related costs	(57)	(359)	(78)	(738)
Predevelopment expenses	(57)		(57)	0
Subtotal	30,494	29,059	90,647	90,063
Depreciation and amortization of deferred leasing costs	(7,779)	(7,055)	(22,633)	(20,863)
Gain on sale of property			11	6,069
Change in fair value of derivatives	0	0	0	0
Net Income	22,715	22,004	68,025	75,269
Capital investment	7,404	31,541	12,883	55,865
Total assets	941,421	942,441	941,421	942,441
Operating Segments | Mixed-Use Properties
Real estate rental operations:
Revenue	13,462	13,066	39,571	39,389
Expenses	(4,567)	(3,992)	(13,326)	(11,570)
Income from real estate	8,895	9,074	26,245	27,819
Interest expense and amortization of deferred debt costs	0	0	0	0
General and administrative	0	0	0	0
Acquisition related costs	0	0	0	0
Predevelopment expenses			0	(503)
Subtotal	8,895	9,074	26,245	27,316
Depreciation and amortization of deferred leasing costs	(3,352)	(3,201)	(9,749)	(9,882)
Gain on sale of property			0	0
Change in fair value of derivatives	0	0	0	0
Net Income	5,543	5,873	16,496	17,434
Capital investment	16,932	6,026	37,030	14,047
Total assets	340,983	301,043	340,983	301,043
Corporate and Other | Corporate and Other
Real estate rental operations:
Revenue	11	23	37	58
Expenses	0	0	0	0
Income from real estate	11	23	37	58
Interest expense and amortization of deferred debt costs	(11,229)	(11,584)	(33,988)	(34,537)
General and administrative	(3,802)	(3,837)	(11,712)	(12,540)
Acquisition related costs	0	0	0	0
Predevelopment expenses			0	0
Subtotal	(15,020)	(15,398)	(45,663)	(47,019)
Depreciation and amortization of deferred leasing costs	0	0	0	0
Gain on sale of property			0	0
Change in fair value of derivatives	(6)	1	(12)	(6)
Net Income	(15,026)	(15,397)	(45,675)	(47,025)
Capital investment	0	0	0	0
Total assets	$ 14,546	$ 15,044	$ 14,546	$ 15,044

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Fair Value of Financial Instruments - Changes in Fair Value of Swaps (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Change in fair value:
Recognized in earnings	$ (6)	$ 1	$ (12)	$ (6)
Recognized in other comprehensive income	(561)	374	(510)	(273)
Total change in fair value	$ (567)	$ 375	$ (522)	$ (279)

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Summary of Significant Accounting Policies - Basic and Diluted Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accounting Policies [Abstract]
Weighted average common shares outstanding-Basic	21,158	20,839	21,091	20,726
Effect of dilutive options (in shares)	33	39	66	35
Weighted average common shares outstanding-Diluted	21,191	20,878	21,157	20,761
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	298	113	124	113

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Real Estate Acquired and Sold (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Purchase Price Allocation

The purchase prices were allocated to the assets acquired and liabilities assumed based on their fair value as shown in the following table.

(in thousands)	1580 Rockville Pike			1582 Rockville Pike			750 N. Glebe Road		730 N. Glebe Road		1584 Rockville Pike			Total
Land	$	9,600		$	9,742		$	38,224	$	2,683	$	5,798		$	66,048
Buildings	2,200			828			1,327		78		440			4,874
In-place Leases	513			849			449		39		249			2,099
Above Market Rent	—			—			—		—		—			—
Below Market Rent	(4,313		)	(419		)	—		—		(337		)	(5,070		)
Total Purchase Price	$	8,000		$	11,000		$	40,000	$	2,800	$	6,150		$	67,950

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Stock Option Plans - Narrative (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2015 compensation_plan $ / shares shares	Dec. 31, 2007 shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of stock incentive plans | compensation_plan	2
Option expiration period	10 years
Option vesting period	4 years
Closing share price (in usd per share)	$ 51.75
Options granted (in shares) | shares	225,000	73,403
Weighted average remaining contractual life of the Company's outstanding options	7 years 2 months 28 days
Weighted average remaining contractual life of the Company's exercisable options	5 years 11 months 1 day

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Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs - Narrative (Details) - USD ($)			1 Months Ended	9 Months Ended
	Apr. 01, 2015	Mar. 03, 2015	Apr. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Outstanding debt				$ 869,403,000
Debt outstanding with fixed-rate				824,500,000	$ 784,800,000
Debt outstanding with variable-rate				44,900,000	72,600,000
Revolving credit facility payable				30,000,000	43,000,000
Carrying value of properties collateralizing mortgage notes				860,500,000	895,500,000
Construction loan				31,413,000	5,391,000
Total outstanding debt					857,400,000
Olney Center
Debt Instrument [Line Items]
Proceeds from sale of real estate			$ 11,000,000	11,000,000
Sale-leaseback, monthly lease payments				$ 60,400
Annual increase in rental payments, percentage				1.50%
Sale-leaseback, fixed interest rate				8.00%
Sales price of property				$ 11,000,000
Sale leaseback, option to purchase the property			$ 14,600,000	14,600,000
Metro Pike Center Bank Loan | Fixed Rate Mortgage Notes Payable
Debt Instrument [Line Items]
Guarantor obligations, maximum exposure				7,800,000
Metro Pike Center Bank Loan | Variable Rate Loans Payable
Debt Instrument [Line Items]
Amount outstanding				14,900,000
Shops at Fairfax and Boulevard
Debt Instrument [Line Items]
Construction-to-permanent loan		$ 30,000,000
Debt term		15 years
Debt maturity year		2030
Fixed interest rate		3.69%
Shops at Fairfax and Boulevard | Fixed Rate Mortgage Notes Payable
Debt Instrument [Line Items]
Monthly principal and interest payments		$ 153,300
Debt amortization period		25 years
Final payment amount		$ 15,500,000
Northrock
Debt Instrument [Line Items]
Construction-to-permanent loan	$ 16,000,000
Debt term	15 years
Debt maturity year	2030
Fixed interest rate	3.99%
Northrock | Fixed Rate Mortgage Notes Payable
Debt Instrument [Line Items]
Monthly principal and interest payments	$ 84,400
Debt amortization period	25 years
Final payment amount	$ 8,400,000
Van Ness Square
Debt Instrument [Line Items]
Construction-to-permanent loan				71,600,000
Construction loan				31,400,000
Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility payable				30,000,000	$ 43,000,000
Line of credit facility, maximum borrowing capacity				$ 275,000,000
Line of credit facility maturity date				Jun. 23, 2018
Extension in line of credit facility period				1 year
Line of credit facility, maximum borrowing capacity				$ 244,600,000
Description of variable rate basis				one-month LIBOR
Unsecured Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Interest rate spread on LIBOR				1.45%
Unsecured Revolving Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Interest rate spread on LIBOR				1.45%
Unsecured Revolving Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Interest rate spread on LIBOR				2.00%
Letter of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 448,000

XML

Business Segments - Narrative (Details)	9 Months Ended
	Sep. 30, 2015 segment
Segment Reporting [Abstract]
Number of reportable business segments	2

XML

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2014 USD ($)
Statement of Cash Flows [Abstract]
Amount excluded from acquisition of real estate and proceeds from notes payable	$ 11,000

XML

Stock Option Plans - Stock Options Issued (Details)	9 Months Ended
	Sep. 30, 2015 USD ($) $ / shares shares
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Exercisable at end of period (in shares) | shares	476,524
Exercise price (in usd per share) | $ / shares	$ 42.71
Weighted average term of remaining future expense (in years)	2 years 10 months 6 days
Directors | 5/1/2006
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 01, 2006
Total grant (in shares) | shares	30,000
Vested (in shares)	$ 30,000
Exercised (in shares) | shares	15,000
Forfeited (in shares) | shares	2,500
Exercisable at end of period (in shares) | shares	12,500
Remaining unexercised (in shares) | shares	12,500
Exercise price (in usd per share) | $ / shares	$ 40.35
Volatility	0.206
Expected life (years)	9 years
Assumed yield	5.93%
Risk-free rate	5.11%
Total value at grant date	$ 143,400
Expensed in previous years	143,400
Expensed in 2015	0
Future expense	$ 0
Directors | 4/27/2007
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	Apr. 27, 2007
Total grant (in shares) | shares	30,000
Vested (in shares)	$ 30,000
Exercised (in shares) | shares	2,500
Forfeited (in shares) | shares	7,500
Exercisable at end of period (in shares) | shares	20,000
Remaining unexercised (in shares) | shares	20,000
Exercise price (in usd per share) | $ / shares	$ 54.17
Volatility	0.225
Expected life (years)	8 years
Assumed yield	4.39%
Risk-free rate	4.65%
Total value at grant date	$ 285,300
Expensed in previous years	285,300
Expensed in 2015	0
Future expense	$ 0
Directors | 4/25/2008
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	Apr. 25, 2008
Total grant (in shares) | shares	30,000
Vested (in shares)	$ 30,000
Exercised (in shares) | shares	2,500
Forfeited (in shares) | shares	7,500
Exercisable at end of period (in shares) | shares	20,000
Remaining unexercised (in shares) | shares	20,000
Exercise price (in usd per share) | $ / shares	$ 50.15
Volatility	0.237
Expected life (years)	7 years
Assumed yield	4.09%
Risk-free rate	3.49%
Total value at grant date	$ 254,700
Expensed in previous years	254,700
Expensed in 2015	0
Future expense	$ 0
Directors | 4/24/2009
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	Apr. 24, 2009
Total grant (in shares) | shares	32,500
Vested (in shares)	$ 32,500
Exercised (in shares) | shares	22,500
Forfeited (in shares) | shares	0
Exercisable at end of period (in shares) | shares	10,000
Remaining unexercised (in shares) | shares	10,000
Exercise price (in usd per share) | $ / shares	$ 32.68
Volatility	0.344
Expected life (years)	6 years
Assumed yield	4.54%
Risk-free rate	2.19%
Total value at grant date	$ 222,950
Expensed in previous years	222,950
Expensed in 2015	0
Future expense	$ 0
Directors | 5/7/2010
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 07, 2010
Total grant (in shares) | shares	32,500
Vested (in shares)	$ 32,500
Exercised (in shares) | shares	12,500
Forfeited (in shares) | shares	2,500
Exercisable at end of period (in shares) | shares	17,500
Remaining unexercised (in shares) | shares	17,500
Exercise price (in usd per share) | $ / shares	$ 38.76
Volatility	0.369
Expected life (years)	5 years
Assumed yield	4.23%
Risk-free rate	2.17%
Total value at grant date	$ 287,950
Expensed in previous years	287,950
Expensed in 2015	0
Future expense	$ 0
Directors | 5/13/2011
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 13, 2011
Total grant (in shares) | shares	32,500
Vested (in shares)	$ 32,500
Exercised (in shares) | shares	12,500
Forfeited (in shares) | shares	2,500
Exercisable at end of period (in shares) | shares	17,500
Remaining unexercised (in shares) | shares	17,500
Exercise price (in usd per share) | $ / shares	$ 41.82
Volatility	0.358
Expected life (years)	5 years
Assumed yield	4.16%
Risk-free rate	1.86%
Total value at grant date	$ 297,375
Expensed in previous years	297,375
Expensed in 2015	0
Future expense	$ 0
Directors | 5/4/2012
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 04, 2012
Total grant (in shares) | shares	35,000
Vested (in shares)	$ 35,000
Exercised (in shares) | shares	12,500
Forfeited (in shares) | shares	0
Exercisable at end of period (in shares) | shares	22,500
Remaining unexercised (in shares) | shares	22,500
Exercise price (in usd per share) | $ / shares	$ 39.29
Volatility	0.348
Expected life (years)	5 years
Assumed yield	4.61%
Risk-free rate	0.78%
Total value at grant date	$ 257,250
Expensed in previous years	257,250
Expensed in 2015	0
Future expense	$ 0
Directors | 5/10/2013
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 10, 2013
Total grant (in shares) | shares	35,000
Vested (in shares)	$ 35,000
Exercised (in shares) | shares	10,000
Forfeited (in shares) | shares	0
Exercisable at end of period (in shares) | shares	25,000
Remaining unexercised (in shares) | shares	25,000
Exercise price (in usd per share) | $ / shares	$ 44.42
Volatility	0.333
Expected life (years)	5 years
Assumed yield	4.53%
Risk-free rate	0.82%
Total value at grant date	$ 278,250
Expensed in previous years	278,250
Expensed in 2015	0
Future expense	$ 0
Directors | 5/9/2014
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 09, 2014
Total grant (in shares) | shares	30,000
Vested (in shares)	$ 30,000
Exercised (in shares) | shares	2,500
Forfeited (in shares) | shares	0
Exercisable at end of period (in shares) | shares	27,500
Remaining unexercised (in shares) | shares	27,500
Exercise price (in usd per share) | $ / shares	$ 47.03
Volatility	0.173
Expected life (years)	5 years
Assumed yield	4.48%
Risk-free rate	1.63%
Total value at grant date	$ 109,500
Expensed in previous years	109,500
Expensed in 2015	0
Future expense	$ 0
Directors | 5/8/2015
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 08, 2015
Total grant (in shares) | shares	35,000
Vested (in shares)	$ 35,000
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	0
Exercisable at end of period (in shares) | shares	35,000
Remaining unexercised (in shares) | shares	35,000
Exercise price (in usd per share) | $ / shares	$ 51.07
Volatility	0.166
Expected life (years)	5 years
Assumed yield	4.54%
Risk-free rate	1.50%
Total value at grant date	$ 125,300
Expensed in previous years	0
Expensed in 2015	125,300
Future expense	$ 0
Directors | Subtotals
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Total grant (in shares) | shares	322,500
Vested (in shares)	$ 322,500
Exercised (in shares) | shares	92,500
Forfeited (in shares) | shares	22,500
Exercisable at end of period (in shares) | shares	207,500
Remaining unexercised (in shares) | shares	207,500
Total value at grant date	$ 2,261,975
Expensed in previous years	2,136,675
Expensed in 2015	125,300
Future expense	$ 0
Officers
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Total grant (in shares) | shares	1,425,000
Vested (in shares)	$ 724,375
Exercised (in shares) | shares	225,351
Forfeited (in shares) | shares	298,750
Exercisable at end of period (in shares) | shares	476,524
Remaining unexercised (in shares) | shares	900,899
Total value at grant date	$ 10,821,550
Estimated forfeitures	1,910,624
Expensed in previous years	5,432,122
Expensed in 2015	905,818
Future expense	$ 2,572,986
Officers | 4/27/2007
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	Apr. 27, 2007
Total grant (in shares) | shares	135,000
Vested (in shares)	$ 67,500
Exercised (in shares) | shares	14,097
Forfeited (in shares) | shares	67,500
Exercisable at end of period (in shares) | shares	53,403
Remaining unexercised (in shares) | shares	53,403
Exercise price (in usd per share) | $ / shares	$ 54.17
Volatility	0.233
Expected life (years)	6 years 6 months
Assumed yield	4.13%
Risk-free rate	4.61%
Total value at grant date	$ 1,339,200
Estimated forfeitures	62,000
Expensed in previous years	1,277,200
Expensed in 2015	0
Future expense	$ 0
Officers | 5/13/2011
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 13, 2011
Total grant (in shares) | shares	162,500
Vested (in shares)	$ 118,750
Exercised (in shares) | shares	57,504
Forfeited (in shares) | shares	43,750
Exercisable at end of period (in shares) | shares	61,246
Remaining unexercised (in shares) | shares	61,246
Exercise price (in usd per share) | $ / shares	$ 41.82
Volatility	0.330
Expected life (years)	8 years
Assumed yield	4.81%
Risk-free rate	2.75%
Total value at grant date	$ 1,366,625
Estimated forfeitures	367,937
Expensed in previous years	909,563
Expensed in 2015	89,125
Future expense	$ 0
Officers | 5/4/2012
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 04, 2012
Total grant (in shares) | shares	242,500
Vested (in shares)	$ 81,875
Exercised (in shares) | shares	38,750
Forfeited (in shares) | shares	135,000
Exercisable at end of period (in shares) | shares	43,125
Remaining unexercised (in shares) | shares	68,750
Exercise price (in usd per share) | $ / shares	$ 39.29
Volatility	0.315
Expected life (years)	8 years
Assumed yield	5.28%
Risk-free rate	1.49%
Total value at grant date	$ 1,518,050
Estimated forfeitures	889,690
Expensed in previous years	418,899
Expensed in 2015	117,819
Future expense	$ 91,642
Officers | 5/10/2013
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 10, 2013
Total grant (in shares) | shares	202,500
Vested (in shares)	$ 91,250
Exercised (in shares) | shares	21,875
Forfeited (in shares) | shares	30,000
Exercisable at end of period (in shares) | shares	69,375
Remaining unexercised (in shares) | shares	150,625
Exercise price (in usd per share) | $ / shares	$ 44.42
Volatility	0.304
Expected life (years)	8 years
Assumed yield	5.12%
Risk-free rate	1.49%
Total value at grant date	$ 1,401,300
Estimated forfeitures	280,468
Expensed in previous years	492,937
Expensed in 2015	201,825
Future expense	$ 426,070
Officers | 5/9/2014
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 09, 2014
Total grant (in shares) | shares	170,000
Vested (in shares)	$ 42,500
Exercised (in shares) | shares	625
Forfeited (in shares) | shares	0
Exercisable at end of period (in shares) | shares	41,875
Remaining unexercised (in shares) | shares	169,375
Exercise price (in usd per share) | $ / shares	$ 47.03
Volatility	0.306
Expected life (years)	7 years
Assumed yield	4.89%
Risk-free rate	2.17%
Total value at grant date	$ 1,349,800
Estimated forfeitures	168,749
Expensed in previous years	196,848
Expensed in 2015	221,454
Future expense	$ 762,749
Officers | 5/8/2015
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Grant date	May 08, 2015
Total grant (in shares) | shares	190,000
Vested (in shares)	$ 0
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	0
Exercisable at end of period (in shares) | shares	0
Remaining unexercised (in shares) | shares	190,000
Exercise price (in usd per share) | $ / shares	$ 51.07
Volatility	0.298
Expected life (years)	7 years
Assumed yield	4.94%
Risk-free rate	1.89%
Total value at grant date	$ 1,584,600
Estimated forfeitures	141,780
Expensed in previous years	0
Expensed in 2015	150,295
Future expense	$ 1,292,525
Officers | Subtotals
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Total grant (in shares) | shares	1,102,500
Vested (in shares)	$ 401,875
Exercised (in shares) | shares	132,851
Forfeited (in shares) | shares	276,250
Exercisable at end of period (in shares) | shares	269,024
Remaining unexercised (in shares) | shares	693,399
Total value at grant date	$ 8,559,575
Estimated forfeitures	1,910,624
Expensed in previous years	3,295,447
Expensed in 2015	780,518
Future expense	$ 2,572,986

XML

Business Segments (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business Segments

(Dollars in thousands)	Shopping Centers			Mixed-Use Properties			Corporate and Other			Consolidated Totals
Three months ended September 30, 2015
Real estate rental operations:
Revenue	$	38,903		$	13,462		$	11		$	52,376
Expenses	(8,295		)	(4,567		)	—			(12,862		)
Income from real estate	30,608			8,895			11			39,514
Interest expense and amortization of deferred debt costs	—			—			(11,229		)	(11,229		)
General and administrative	—			—			(3,802		)	(3,802		)
Acquisition related costs	(57		)	—			—			(57		)
Predevelopment expenses	(57		)	—			—			(57		)
Subtotal	30,494			8,895			(15,020		)	24,369
Depreciation and amortization of deferred leasing costs	(7,779		)	(3,352		)	—			(11,131		)
Change in fair value of derivatives	—			—			(6		)	(6		)
Net income (loss)	$	22,715		$	5,543		$	(15,026	)	$	13,232
Capital investment	$	7,404		$	16,932		$	—		$	24,336
Total assets	$	941,421		$	340,983		$	14,546		$	1,296,950
Three months ended September 30, 2014
Real estate rental operations:
Revenue	$	37,506		$	13,066		$	23		$	50,595
Expenses	(8,088		)	(3,992		)	—			(12,080		)
Income from real estate	29,418			9,074			23			38,515
Interest expense and amortization of deferred debt costs	—			—			(11,584		)	(11,584		)
General and administrative	—			—			(3,837		)	(3,837		)
Acquisition related costs	(359		)	—			—			(359		)
Subtotal	29,059			9,074			(15,398		)	22,735
Depreciation and amortization of deferred leasing costs	(7,055		)	(3,201		)	—			(10,256		)
Change in fair value of derivatives	—			—			1			1
Net income (loss)	$	22,004		$	5,873		$	(15,397	)	$	12,480
Capital investment	$	31,541		$	6,026		$	—		$	37,567
Total assets	$	942,441		$	301,043		$	15,044		$	1,258,528

(Dollars in thousands)	Shopping Centers			Mixed-Use Properties			Corporate and Other			Consolidated Totals
Nine months ended September 30, 2015
Real estate rental operations:
Revenue	$	116,567		$	39,571		$	37		$	156,175
Expenses	(25,785		)	(13,326		)	—			(39,111		)
Income from real estate	90,782			26,245			37			117,064
Interest expense and amortization of deferred debt costs	—			—			(33,988		)	(33,988		)
General and administrative	—			—			(11,712		)	(11,712		)
Acquisition related costs	(78		)	—			—			(78		)
Predevelopment expenses	(57		)	—			—			(57		)
Subtotal	90,647			26,245			(45,663		)	71,229
Depreciation and amortization of deferred leasing costs	(22,633		)	(9,749		)	—			(32,382		)
Gain on sale of property	11			—			—			11
Change in fair value of derivatives	—			—			(12		)	(12		)
Net income (loss)	$	68,025		$	16,496		$	(45,675	)	$	38,846
Capital investment	$	12,883		$	37,030		$	—		$	49,913
Total assets	$	941,421		$	340,983		$	14,546		$	1,296,950
Nine months ended September 30, 2014
Real estate rental operations:
Revenue	$	116,381		$	39,389		$	58		$	155,828
Expenses	(25,580		)	(11,570		)	—			(37,150		)
Income from real estate	90,801			27,819			58			118,678
Interest expense and amortization of deferred debt costs	—			—			(34,537		)	(34,537		)
General and administrative	—			—			(12,540		)	(12,540		)
Acquisition related costs	(738		)	—			—			(738		)
Predevelopment expenses	—			(503		)	—			(503		)
Subtotal	90,063			27,316			(47,019		)	70,360
Depreciation and amortization of deferred leasing costs	(20,863		)	(9,882		)	—			(30,745		)
Gain on sale of property	6,069			—			—			6,069
Change in fair value of derivatives	—			—			(6		)	(6		)
Net income (loss)	$	75,269		$	17,434		$	(47,025	)	$	45,678
Capital investment	$	55,865		$	14,047		$	—		$	69,912
Total assets	$	942,441		$	301,043		$	15,044		$	1,258,528

XML

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Changes in Fair Value of Derivatives

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2015			2014		2015			2014
Change in fair value:
Recognized in earnings	$	(6	)	$	1	$	(12	)	$	(6	)
Recognized in other comprehensive income	(561		)	374		(510		)	(273		)
	$	(567	)	$	375	$	(522	)	$	(279	)

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Stock Option Plans - Summary of Option Activity (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2007
Number of Shares
Outstanding at beginning of period (in shares)	748,208
Granted (in shares)	225,000	73,403
Exercised (in shares)	(72,309)
Expired/Forfeited (in shares)	0
Outstanding at end of period (in shares)	900,899
Exercisable at end of period (in shares)	476,524
Weighted Average Exercise Price per share
Outstanding at beginning of period (in usd per share)	$ 44.79
Granted (in usd per share)	51.07
Exercised (in usd per share)	42.71
Expired/Forfeited (in usd per share)	0.00
Outstanding at end of period (in usd per share)	46.53
Exercisable at end of period (in usd per share)	$ 45.33
Aggregate Intrinsic Value
Outstanding at beginning of period	$ 9,274,028
Granted	153,000
Exercised	$ 1,041,624
Expired/Forfeited
Outstanding at end of period	$ 4,881,029
Exercisable at end of period	$ 3,235,179

XML

Organization, Formation and Structure (Details)	Sep. 30, 2015 partnership property
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Distribution of REIT taxable income (excluding net capital gains) to its stockholders	90.00%
Number of partnerships | partnership	2
Shopping Centers
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of real estate properties	50
Mixed-Use Properties
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of real estate properties	6
Mixed Use Properties Held-for-sale
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of real estate properties	1
Non-operating Development Properties
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of real estate properties	3

XML

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) ft² tenant store property	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) ft² tenant store property shares	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Significant Accounting Policies [Line Items]
Number of tenants | tenant	1		1
Number of shopping centers | store	31		31
Allowance for doubtful accounts receivables	$ 1,600		$ 1,600		$ 700
Period expected for the sale of property to occur			1 year
Area of real estate property (in sq ft) | ft²	197,127		197,127
Property held-for-sale, accumulated depreciation	$ 7,000		$ 7,000
Liabilities on property held-for-sale	400		400
Deferred debt costs	9,091		9,091		9,874
Accumulated amortization, deferred debt costs	6,600		6,600		5,900
Deferred leasing costs, net	26,891		26,891		26,928
Accumulated amortization deferred leasing cost	25,400		25,400		21,600
Amortization expense deferred leasing cost			4,200	$ 3,900
Interest capitalized	600	$ 186	$ 1,393	430
Commercial development projects, availability for occupancy, maximum period after major construction activity			1 year
Depreciation expense			$ 28,200	26,800
Repairs and maintenance expense			$ 9,000	$ 9,200
Shares credited to directors' deferred fee accounts | shares			239,558
Percentage of ownership in Operating Partnership			74.20%
Other Assets
Significant Accounting Policies [Line Items]
Property held-for-sale, book value	$ 3,300		$ 3,300
Held-for-sale
Significant Accounting Policies [Line Items]
Number of real estate properties | property	1		1
Minimum
Significant Accounting Policies [Line Items]
Accounts receivable, net representing rental income accrued	$ 40,600		$ 40,600		38,700
Allowance for doubtful accounts receivables representing rental income accrued	$ 500		$ 500		$ 300
Minimum | Building
Significant Accounting Policies [Line Items]
Estimated useful life			35 years
Maximum | Building
Significant Accounting Policies [Line Items]
Estimated useful life			50 years
Maximum | Building Improvements
Significant Accounting Policies [Line Items]
Estimated useful life			20 years
Giant Food
Significant Accounting Policies [Line Items]
Percentage of total revenue			4.50%
Number of shopping centers | store			9
Safeway
Significant Accounting Policies [Line Items]
Percentage of total revenue			2.50%
Number of shopping centers | store			8
Revenues
Significant Accounting Policies [Line Items]
Number of tenants | tenant	2		2
Percentage of total revenue			2.50%

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income		$ 38,846	$ 45,678
Adjustments to reconcile net income to net cash provided by operating activities:
Change in fair value of derivatives		12	6
Gain on sale of property		(11)	(6,069)
Depreciation and amortization of deferred leasing costs		32,382	30,745
Amortization of deferred debt costs		1,094	969
Non cash compensation costs of stock grants and options		1,136	977
Provision for credit losses		1,281	480
Increase in accounts receivable and accrued income		(5,340)	(3,282)
Additions to deferred leasing costs		(4,125)	(2,830)
Increase in prepaid expenses		(4,022)	(2,825)
(Increase) decrease in other assets		1,590	(355)
Increase in accounts payable, accrued expenses and other liabilities		1,816	4,172
Increase (decrease) in deferred income		67	(1,537)
Net cash provided by operating activities		64,726	66,129
Cash flows from investing activities:
Acquisitions of real estate investments	[1]	(4,894)	(48,545)
Additions to real estate investments		(13,271)	(11,174)
Additions to development and redevelopment projects		(31,748)	(10,193)
Proceeds from sale of property		32	6,679
Net cash used in investing activities		(49,881)	(63,233)
Cash flows from financing activities:
Proceeds from notes payable	[1]	46,000	0
Repayments on notes payable		(47,007)	(16,462)
Proceeds from revolving credit facility		15,000	41,000
Repayments on revolving credit facility		(28,000)	(11,000)
Proceeds from construction loan		26,022	1,859
Additions to deferred debt costs		(311)	(1,286)
Proceeds from the issuance of:
Common stock		11,102	12,054
Partnership units		4,060	8,877
Distributions to:
Common stockholders		(26,538)	(23,997)
Noncontrolling interest		(9,098)	(8,597)
Net cash used in financing activities		(18,051)	(7,171)
Net decrease in cash and cash equivalents		(3,206)	(4,275)
Cash and cash equivalents, beginning of period		12,128	17,297
Cash and cash equivalents, end of period		8,922	13,022
Series A Preferred Stock
Distributions to:
Preferred stockholders		0	(2,400)
Series C Preferred Stock
Distributions to:
Preferred stockholders		$ (9,281)	$ (7,219)

[1] The 2014 acquisition of real estate and proceeds from notes payable each exclude $11,000 in connection with the sale and leaseback of the Company's Olney property.

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Summary of Significant Accounting Policies - Construction in Progress (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Construction in progress	$ 69,175	$ 30,261
Park Van Ness
Property, Plant and Equipment [Line Items]
Construction in progress	63,495	26,998
Other
Property, Plant and Equipment [Line Items]
Construction in progress	$ 5,680	$ 3,263

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Stockholders' Equity and Noncontrolling Interests (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions			1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 12, 2014	Feb. 12, 2013	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Class of Stock [Line Items]
Income attributable to noncontrolling interests				$ 2,617	$ 2,374	$ 7,628	$ 9,231
6.875 Series C Cumulative Redeemable Preferred Stock
Class of Stock [Line Items]
Number of depositary shares sold		5.6
Depository shares to cumulative redeemable preferred stock ratio		1.00%
Percentage of redeemable preferred stock		6.875%
Cash proceeds from sale depositary shares		$ 135,200
Dividend payment accrual date		Feb. 12, 2018
Cumulative redeemable preferred stock liquidation preference (in usd per share)		$ 25.00
Annual dividend on depositary shares (in usd per share)		$ 1.71875
Series C Cumulative Redeemable Preferred Stock
Class of Stock [Line Items]
Number of depositary shares sold	1.6
Percentage of redeemable preferred stock		6.875%
Cash proceeds from sale depositary shares	$ 39,300
Series A Cumulative Redeemable Preferred Stock
Class of Stock [Line Items]
Dividend rate on preferred stock			8.00%

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Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Real estate investments
Land	$ 424,837	$ 420,622
Buildings and equipment	1,110,255	1,109,276
Construction in progress	69,175	30,261
Real estate investments	1,604,267	1,560,159
Accumulated depreciation	(416,531)	(396,617)
Real estate investments, net	1,187,736	1,163,542
Cash and cash equivalents	8,922	12,128
Accounts receivable and accrued income, net	50,843	46,784
Deferred leasing costs, net	26,891	26,928
Prepaid expenses, net	8,115	4,093
Deferred debt costs, net	9,091	9,874
Other assets	5,352	3,638
Total assets	1,296,950	1,266,987
Liabilities
Notes payable	807,990	808,997
Revolving credit facility payable	30,000	43,000
Construction loan payable	31,413	5,391
Dividends and distributions payable	15,329	14,352
Accounts payable, accrued expenses and other liabilities	31,701	23,537
Deferred income	32,520	32,453
Total liabilities	948,953	927,730
Preferred stock, 1,000,000 shares authorized:
Common stock, $0.01 par value, 40,000,000 shares authorized, 21,177,762 and 20,947,141 shares issued and outstanding, respectively	212	209
Additional paid-in capital	300,230	287,995
Accumulated deficit	(179,102)	(173,774)
Accumulated other comprehensive loss	(2,272)	(1,894)
Total Saul Centers, Inc. stockholders’ equity	299,068	292,536
Noncontrolling interest	48,929	46,721
Total stockholders’ equity	347,997	339,257
Total liabilities and stockholders’ equity	1,296,950	1,266,987
Series C Preferred Stock
Preferred stock, 1,000,000 shares authorized:
Series C Cumulative Redeemable, 72,000 shares issued and outstanding	$ 180,000	$ 180,000

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Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value of Financial Instruments [Line Items]
Long-term debt, fixed interest rate	3.75%	3.65%
Notes payable, fair value	$ 894.4	$ 886.4
Notes payable, carrying value	$ 824.5	$ 784.8
Interest Rate Swap
Fair Value of Financial Instruments [Line Items]
Interest rate swap agreement, termination date	Jul. 01, 2020
Fair value of derivative liability	$ 3.6

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Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Dividend Distributions Payable	Series C Preferred Stock Dividend Distributions	Series C Preferred Stock Dividend Distributions Payable	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Deficit Dividend Distributions Payable	Accumulated Deficit Series C Preferred Stock Dividend Distributions	Accumulated Deficit Series C Preferred Stock Dividend Distributions Payable	Accumulated Other Comprehensive (Loss)	Total Saul Centers, Inc.	Total Saul Centers, Inc. Dividend Distributions Payable	Total Saul Centers, Inc. Series C Preferred Stock Dividend Distributions	Total Saul Centers, Inc. Series C Preferred Stock Dividend Distributions Payable	Noncontrolling Interest	Noncontrolling Interest Dividend Distributions Payable
Beginning Balance at Dec. 31, 2014	$ 339,257				$ 180,000	$ 209	$ 287,995	$ (173,774)				$ (1,894)	$ 292,536				$ 46,721
Issuance of 230,621 shares of common stock:
153,897 shares pursuant to dividend reinvestment plan	8,013					2	8,011						8,013
76,724 shares due to exercise of employee stock options and issuance of directors’ deferred stock	4,225					1	4,224						4,225
Issuance of 78,101 partnership units pursuant to dividend reinvestment plan	4,060																4,060
Net income	38,846							31,218					31,218				7,628
Change in unrealized loss on cash flow hedge	(510)											(378)	(378)				(132)
Series C preferred stock distributions			$ (6,188)	$ (3,093)						$ (6,188)	$ (3,093)				$ (6,188)	$ (3,093)
Common stock distributions	(24,378)							(18,159)					(18,159)				(6,219)
Distributions payable common stock ($0.43/share) and distributions payable partnership units ($0.43/unit)		$ (12,235)							$ (9,106)					$ (9,106)				$ (3,129)
Ending Balance at Sep. 30, 2015	$ 347,997				$ 180,000	$ 212	$ 300,230	$ (179,102)				$ (2,272)	$ 299,068				$ 48,929

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Real Estate Acquired and Sold - Purchase Price Allocation (Details) $ in Thousands	Dec. 31, 2014 USD ($)
Business Acquisition [Line Items]
Land	$ 66,048
Buildings	4,874
Below Market Rent	(5,070)
Total Purchase Price	67,950
In-place Leases
Business Acquisition [Line Items]
Finite-lived Intangibles	2,099
Above Market Rent
Business Acquisition [Line Items]
Finite-lived Intangibles	0
1580 Rockville Pike
Business Acquisition [Line Items]
Land	9,600
Buildings	2,200
Below Market Rent	(4,313)
Total Purchase Price	8,000
1580 Rockville Pike | In-place Leases
Business Acquisition [Line Items]
Finite-lived Intangibles	513
1580 Rockville Pike | Above Market Rent
Business Acquisition [Line Items]
Finite-lived Intangibles	0
1582 Rockville Pike
Business Acquisition [Line Items]
Land	9,742
Buildings	828
Below Market Rent	(419)
Total Purchase Price	11,000
1582 Rockville Pike | In-place Leases
Business Acquisition [Line Items]
Finite-lived Intangibles	849
1582 Rockville Pike | Above Market Rent
Business Acquisition [Line Items]
Finite-lived Intangibles	0
750 N. Glebe Road
Business Acquisition [Line Items]
Land	38,224
Buildings	1,327
Below Market Rent	0
Total Purchase Price	40,000
750 N. Glebe Road | In-place Leases
Business Acquisition [Line Items]
Finite-lived Intangibles	449
750 N. Glebe Road | Above Market Rent
Business Acquisition [Line Items]
Finite-lived Intangibles	0
730 N. Glebe Road
Business Acquisition [Line Items]
Land	2,683
Buildings	78
Below Market Rent	0
Total Purchase Price	2,800
730 N. Glebe Road | In-place Leases
Business Acquisition [Line Items]
Finite-lived Intangibles	39
730 N. Glebe Road | Above Market Rent
Business Acquisition [Line Items]
Finite-lived Intangibles	0
1584 Rockville Pike
Business Acquisition [Line Items]
Land	5,798
Buildings	440
Below Market Rent	(337)
Total Purchase Price	6,150
1584 Rockville Pike | In-place Leases
Business Acquisition [Line Items]
Finite-lived Intangibles	249
1584 Rockville Pike | Above Market Rent
Business Acquisition [Line Items]
Finite-lived Intangibles	$ 0

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

The Company, which conducts all of its activities through its subsidiaries, the Operating Partnership and Subsidiary Partnerships, engages in the ownership, operation, management, leasing, acquisition, renovation, expansion, development and financing of community and neighborhood shopping centers and mixed-use properties, primarily in the Washington, DC/Baltimore metropolitan area.

Because the properties are located primarily in the Washington, DC/Baltimore metropolitan area, the Company is subject to a concentration of credit risk related to these properties. A majority of the Shopping Centers are anchored by one or more major tenants.

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the accounts of Saul Centers and its subsidiaries, including the Operating Partnership and Subsidiary Partnerships, which are majority owned by Saul Centers. All significant intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments necessary for the fair presentation of the financial position and results of operations of Saul Centers, Inc. for the interim periods have been included. All such adjustments are of a normal recurring nature. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements of Saul Centers, Inc. for the year ended December 31, 2014, which are included in its Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of results to be expected for the year.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Accounts Receivable, Accrued Income and Allowance for Doubtful Accounts

Accounts Receivable, Accrued Income and Allowance for Doubtful Accounts

Accounts receivable primarily represent amounts currently due from tenants in accordance with the terms of the respective leases. Receivables are reviewed monthly and reserves are established with a charge to current period operations when, in the opinion of management, collection of the receivable is doubtful.

Assets Held for Sale

Assets Held for Sale

The Company considers properties to be assets held for sale when all of the following criteria are met:

• management commits to a plan to sell a property;

• it is unlikely that the disposal plan will be significantly modified or discontinued;

• the property is available for immediate sale in its present condition;

• actions required to complete the sale of the property have been initiated;

• sale of the property is probable and the Company expects the completed sale will occur within one year; and

• the property is actively being marketed for sale at a price that is reasonable given its current market value.

The Company must make a determination as to the point in time that it is probable that a sale will be consummated, which generally occurs when an executed sales contract has no contingencies and the prospective buyer has significant funds at risk to ensure performance. Upon designation as an asset held for sale, the Company records the carrying value of each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and ceases depreciation.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include short-term investments. Short-term investments include money market accounts and other investments which generally mature within three months, measured from the acquisition date, and/or are readily convertible to cash.

Construction In Progress

Construction In Progress

Construction in progress includes land, preconstruction and development costs of active projects. Preconstruction costs include legal, zoning and permitting costs and other project carrying costs incurred prior to the commencement of construction. Development costs include direct construction costs and indirect costs incurred subsequent to the start of construction such as architectural, engineering, construction management and carrying costs consisting of interest, real estate taxes and insurance.

Deferred Debt Costs

Deferred Debt Costs

Deferred debt costs consist of fees and costs incurred to obtain long-term financing, construction financing and the revolving line of credit. These fees and costs are being amortized on a straight-line basis over the terms of the respective loans or agreements, which approximates the effective interest method.

Deferred Income

Deferred Income

Deferred income consists of payments received from tenants prior to the time they are earned and recognized by the Company as revenue, including tenant prepayment of rent for future periods, real estate taxes when the taxing jurisdiction has a fiscal year differing from the calendar year, reimbursements specified in the lease agreement and tenant construction work provided by the Company. In addition, deferred income includes the fair value of certain below market leases.

Deferred Leasing Costs

Deferred Leasing Costs

Deferred leasing costs consist of commissions paid to third-party leasing agents, internal direct costs such as employee compensation and payroll-related fringe benefits directly related to time spent performing leasing-related activities for successful commercial leases and amounts attributed to in-place leases associated with acquired properties. Leasing related activities include evaluating the prospective tenant’s financial condition, evaluating and recording guarantees, collateral and other security arrangements, negotiating lease terms, preparing lease documents and closing the transaction. Unamortized deferred costs are charged to expense if the applicable lease is terminated prior to expiration of the initial lease term. Deferred leasing costs are amortized over the term of the lease or remaining term of acquired leases.

Derivative Financial Instruments

Derivative Financial Instruments

The Company may, when appropriate, employ derivative instruments, such as interest-rate swaps, to mitigate the risk of interest rate fluctuations. The Company does not enter into derivative or other financial instruments for trading or speculative purposes. Derivative financial instruments are carried at fair value as either assets or liabilities on the consolidated balance sheets. For those derivative instruments that qualify and are designated as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as a fair value hedge or a cash flow hedge. For those derivative instruments that qualify and are designated as hedging instruments, the effective portion of the gain or loss on the hedge instruments is reported as a component of accumulated other comprehensive income (loss) and recognized in earnings within the same line item associated with the forecasted transaction in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the change in fair value of a derivative instrument is immediately recognized in earnings. For derivative instruments that do not qualify, or that qualify and are not designated, as hedging instruments, changes in fair value are immediately recognized in earnings.

Derivative financial instruments expose us to credit risk in the event of non-performance by the counterparties under the terms of the derivative instrument. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions as determined by management, and therefore, it believes that the likelihood of realizing losses from counterparty non-performance is remote.

Income Taxes

Income Taxes

The Company made an election to be treated, and intends to continue operating so as to qualify, as a REIT under the Code, commencing with its taxable year ended December 31, 1993. A REIT generally will not be subject to federal income taxation, provided that distributions to its stockholders equal or exceed its REIT taxable income and it complies with certain other requirements. Therefore, no provision has been made for federal income taxes in the accompanying consolidated financial statements.

Legal Contingencies

Legal Contingencies

The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, which are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, the Company believes the final outcome of such matters will not have a material adverse effect on its financial position or results of operations. Upon determination that a loss is probable to occur and can be reasonably estimated, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered probable can be difficult to determine.

Postemployment Benefits

Postemployment Benefits

From time to time, the Company may enter into an arrangement with an employee at the time of the employee’s separation from service whereby the employee will receive certain payments in exchange for certain releases, covenants not to compete, or other promises. If no future services are required in order for the employee to receive the payments, the Company estimates the amount of payments to be made over the life of the arrangement and records that amount as an expense as of the date of the arrangement with a corresponding liability representing the amount to be paid in the future.

Predevelopment Expenses

Predevelopment Expenses

Predevelopment expenses represent certain costs incurred by the Company in connection with active development and redevelopment projects and include, for example, costs related to the early termination of tenant leases and demolition of existing structures.

Real Estate Investment Properties

Real Estate Investment Properties

The Company purchases real estate investment properties from time to time and records assets acquired and liabilities assumed, including land, buildings, and intangibles related to in-place leases and customer relationships, based on their fair values. The fair value of buildings generally is determined as if the buildings were vacant upon acquisition and subsequently leased at market rental rates and considers the present value of all cash flows expected to be generated by the property including an initial lease up period. From time to time the Company may purchase a property for future development purposes. The Company determines the fair value of above and below market intangibles associated with in-place leases by assessing the net effective rent and remaining term of the lease relative to market terms for similar leases at acquisition taking into consideration the remaining contractual lease period, renewal periods, and the likelihood of the tenant exercising its renewal options. The fair value of below market lease intangibles is recorded as deferred income and accreted as additional revenue over the remaining contractual lease period and any renewal option periods included in the valuation analysis. The fair value of above market lease intangibles is recorded as a deferred asset and amortized as a reduction of revenue over the remaining contractual lease term. The Company determines the fair value of at-market in-place leases considering the cost of acquiring similar leases, the foregone rents associated with the lease-up period and carrying costs associated with the lease-up period. Intangible assets associated with at-market in-place leases are amortized as additional expense over the remaining contractual lease term. To the extent customer relationship intangibles are present in an acquisition, the fair values of the intangibles are amortized over the lives of the customer relationships. The Company has never recorded a customer relationship intangible asset. Acquisition-related transaction costs are generally charged to expense as incurred and reported as acquisition related costs in the consolidated statements of operations.

If there is an event or change in circumstance that indicates a potential impairment in the value of a real estate investment property, the Company prepares an analysis to determine whether the carrying value of the real estate investment property exceeds its estimated fair value. The Company considers both quantitative and qualitative factors including recurring operating losses, significant decreases in occupancy, and significant adverse changes in legal factors and business climate. If impairment indicators are present, the Company compares the projected cash flows of the property over its remaining useful life, on an undiscounted basis, to the carrying value of that property. The Company assesses its undiscounted projected cash flows based upon estimated capitalization rates, historic operating results and market conditions that may affect the property. If the carrying value is greater than the undiscounted projected cash flows, the Company would recognize an impairment loss equivalent to an amount required to adjust the carrying amount to its then estimated fair value. The value of any property is sensitive to the actual results of any of the aforementioned estimated factors, either individually or taken as a whole. Should the actual results differ from management’s projections, the valuation could be negatively or positively affected. The Company did not recognize an impairment loss on any of its real estate during the nine months endedSeptember 30, 2015 and 2014.

Interest, real estate taxes, development-related salary costs and other carrying costs are capitalized on projects under development and construction. Upon substantial completion of construction and the placement of the assets into service, rental income, real estate tax expense, property operating expenses (consisting of payroll, repairs and maintenance, utilities, insurance and other property related expenses) and depreciation are included in current operations and capitalization of interest ceases. Property operating expenses are charged to operations as incurred. Interest capitalized totaled $1.4 million and $0.4 million for the nine months endedSeptember 30, 2015 and 2014, respectively. Commercial development projects are considered substantially complete and available for occupancy upon completion of tenant improvements, but no later than one year from the cessation of major construction activity. Multi-family residential development projects are considered substantially complete and available for occupancy upon receipt of the certificate of occupancy from the appropriate licensing authority. Substantially completed portions of a project are accounted for as separate projects.

Depreciation is calculated using the straight-line method and estimated useful lives of generally between 35 and 50 years for base buildings, or a shorter period if management determines that the building has a shorter useful life, and up to 20 years for certain other improvements that extend the useful lives. Leasehold improvement expenditures are capitalized when certain criteria are met, including when the Company supervises construction and will own the improvements. Tenant improvements are amortized, over the shorter of the lives of the related leases or the useful life of the improvements, using the straight-line method.

Revenue Recognition

Revenue Recognition

Rental and interest income are accrued as earned except when doubt exists as to collectability, in which case the accrual is discontinued. Recognition of rental income commences when control of the space has been given to the tenant. When rental payments due under leases vary from a straight-line basis because of free rent periods or scheduled rent increases, income is recognized on a straight-line basis. Expense recoveries represent a portion of property operating expenses billed to tenants, including common area maintenance, real estate taxes and other recoverable costs, and are recognized in the period in which the expenses are incurred. Rental income based on a tenant’s revenue (“percentage rent”) is accrued when a tenant reports sales that exceed a breakpoint specified in the lease agreement.

Stock-based Employee Compensation, Stock Plan and Deferred Compensation Plan for Directors

Stock-based Employee Compensation, Stock Plan and Deferred Compensation Plan for Directors

The Company uses the fair value method to value and account for employee stock options. The fair value of options granted is determined at the time of each award using the Black-Scholes model, a widely used method for valuing stock-based employee compensation, and the following assumptions: (1) Expected Volatility determined using the most recent trading history of the Company’s common stock (month-end closing prices) corresponding to the average expected term of the options; (2) Average Expected Term of the options is based on prior exercise history, scheduled vesting and the expiration date; (3) Expected Dividend Yield determined by management after considering the Company’s current and historic dividend yield rates, the Company’s yield in relation to other retail REITs and the Company’s market yield at the grant date; and (4) a Risk-free Interest Rate based upon the market yields of US Treasury obligations with maturities corresponding to the average expected term of the options at the grant date. The Company amortizes the value of options granted ratably over the vesting period and includes the amounts as compensation in general and administrative expenses.

The Company has a stock plan, which was originally approved in 2004, amended in 2008 and 2013 and which expires in 2023, for the purpose of attracting and retaining executive officers, directors and other key personnel (the “Stock Plan”). Pursuant to the Stock Plan, the Compensation Committee established a Deferred Compensation Plan for Directors for the benefit of its directors and their beneficiaries, which replaced a previous Deferred Compensation and Stock Plan for Directors. A director may make an annual election to defer all or part of his or her director’s fees and has the option to have the fees paid in cash, in shares of common stock or in a combination of cash and shares of common stock upon separation from the Board. If the director elects to have fees paid in stock, fees earned during a calendar quarter are aggregated and divided by the closing market price of the Company’s common stock on the first trading day of the following quarter to determine the number of shares to be credited to the director. As of September 30, 2015, the director's deferred fee accounts comprise 239,558 shares.

The Compensation Committee has also approved an annual award of shares of the Company’s common stock as additional compensation to each director serving on the Board of Directors as of the record date for the Annual Meeting of Stockholders. The shares are awarded as of each Annual Meeting of Stockholders, and their issuance may not be deferred.

Noncontrolling Interests

Noncontrolling Interests

Saul Centers is the sole general partner of the Operating Partnership, owning a 74.2% common interest as of September 30, 2015. Noncontrolling interests in the Operating Partnership is comprised of limited partnership units owned by the Saul Organization. Noncontrolling interests reflected on the accompanying consolidated balance sheets is increased for earnings allocated to limited partnership interests and distributions reinvested in additional units, and is decreased for limited partner distributions. Noncontrolling interests reflected on the consolidated statements of operations represents earnings allocated to limited partnership interests.

Per Share Data

Per Share Data

Per share data for net income (basic and diluted) is computed using weighted average shares of common stock. Convertible limited partnership units and employee stock options are the Company’s potentially dilutive securities. For all periods presented, the convertible limited partnership units are non-dilutive. The following table sets forth, for the indicated periods, weighted averages of the number of common shares outstanding, basic and dilutive, the effect of dilutive options and the number of options which are not dilutive because the average price of the Company's common stock was less than the exercise prices. The treasury stock method was used to measure the effect of the dilution.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 will replace most existing revenue recognition guidance and will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted but not before annual periods beginning after December 15, 2016. ASU 2014-09 must be applied retrospectively by either restating prior periods or by recognizing the cumulative effect as of the first date of application. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures.

In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest” (“ASU 2015-03”). ASU 2015-03 simplifies the presentation of debt issuance costs and will require an entity to deduct transaction costs from the carrying value of the related financial liability and not record those transaction costs as a separate asset. Recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those years, and must be applied retrospectively by adjusting the balance sheet of each individual period presented. Adoption of ASU 2015-03 is not expected to have a material effect on our consolidated financial statements and related disclosures.

Reclassifications

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to the presentation used for the nine months endedSeptember 30, 2015.

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Noncontrolling Interests - Holders of Convertible Limited Partnership Units in the Operating Partnership (Details) - Noncontrolling Interest - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Noncontrolling Interest [Line Items]
Percentage of ownership interest of noncontrolling interest	25.80%		25.80%
Limited partnership units	7,300		7,300
Limited partnership units, conversion ratio	100.00%		100.00%
Outstanding stock percent that should be acquired for rights to be exercised	39.90%		39.90%
Limited partnership units convertible into shares of common stock, eligible for conversion	965		965
Fully converted partnership units and diluted weighted average shares outstanding	28,500	28,100	28,400	27,900

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Schedule of Construction in Progress

Construction in progress as of September 30, 2015 and December 31, 2014, is composed of the following:

(in thousands)	September 30, 2015		December 31, 2014
Park Van Ness	$	63,495	$	26,998
Other	5,680		3,263
Total	$	69,175	$	30,261

Basic and Diluted Shares Outstanding

The following table sets forth, for the indicated periods, weighted averages of the number of common shares outstanding, basic and dilutive, the effect of dilutive options and the number of options which are not dilutive because the average price of the Company's common stock was less than the exercise prices. The treasury stock method was used to measure the effect of the dilution.

	As of or For The Three Months Ended September 30,		As of or For The Nine Months Ended September 30,
(In thousands)	2015	2014	2015	2014
Weighted average common shares outstanding-Basic	21,158	20,839	21,091	20,726
Effect of dilutive options	33	39	66	35
Weighted average common shares outstanding-Diluted	21,191	20,878	21,157	20,761
Non-dilutive options	298	113	124	113
Years non-dilutive options were issued	2007 and 2015	2007 and 2008	2007 and 2015	2007 and 2008

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Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2015 $ / shares shares
Issuance of stock, shares | shares	230,621
Pursuant to dividend reinvestment plan, shares | shares	153,897
Exercise of employee stock options and issuance of directors' deferred stock, shares | shares	76,724
Issuance of partnership units, shares | shares	78,101
Distributions payable common stock, per share (in usd per share)	$ 1.29
Dividend Distributions Payable
Distributions payable common stock, per share (in usd per share)	0.43
Distributions partnership units, per unit (in usd per unit)	0.43
Series C Preferred Stock | Dividend Distributions Payable
Preferred stock, per share (in usd per share)	$ 42.97

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, shares authorized	1,000,000	1,000,000
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	21,177,762	20,947,141
Common stock, shares outstanding	21,177,762	20,947,141
Series C Preferred Stock
Cumulative Redeemable Preferred stock, shares issued	72,000	72,000
Cumulative Redeemable Preferred stock, shares outstanding	72,000	72,000

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Stock Option Plans

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Plans

Stock Option Plans

The Company has established two stock incentive plans, the 1993 plan and the 2004 plan, as amended, (together, the “Plans”). Under the Plans, options were granted at an exercise price not less than the market value of the common stock on the date of grant and expire ten years from the date of grant. Officer options vest ratably over four years following the grant and are charged to expense using the straight-line method over the vesting period. Director options vest immediately and are charged to expense as of the date of grant.

The following table summarizes the amount and activity of each grant with outstanding unexercised options, the total value and variables used in the computation and the amount expensed and included in general and administrative expense in the Consolidated Statements of Operations for the nine months endedSeptember 30, 2015.

Stock options issued

	Directors
Grant date	5/1/2006			4/27/2007			4/25/2008			4/24/2009			5/7/2010			5/13/2011			5/4/2012			5/10/2013			5/9/2014			5/8/2015			Subtotals
Total grant	30,000			30,000			30,000			32,500			32,500			32,500			35,000			35,000			30,000			35,000			322,500
Vested	30,000			30,000			30,000			32,500			32,500			32,500			35,000			35,000			30,000			35,000			322,500
Exercised	15,000			2,500			2,500			22,500			12,500			12,500			12,500			10,000			2,500			—			92,500
Forfeited	2,500			7,500			7,500			—			2,500			2,500			—			—			—			—			22,500
Exercisable at September 30, 2015	12,500			20,000			20,000			10,000			17,500			17,500			22,500			25,000			27,500			35,000			207,500
Remaining unexercised	12,500			20,000			20,000			10,000			17,500			17,500			22,500			25,000			27,500			35,000			207,500
Exercise price	$	40.35		$	54.17		$	50.15		$	32.68		$	38.76		$	41.82		$	39.29		$	44.42		$	47.03		$	51.07
Volatility	0.206			0.225			0.237			0.344			0.369			0.358			0.348			0.333			0.173			0.166
Expected life (years)	9.0			8.0			7.0			6.0			5.0			5.0			5.0			5.0			5.0			5.0
Assumed yield	5.93		%	4.39		%	4.09		%	4.54		%	4.23		%	4.16		%	4.61		%	4.53		%	4.48		%	4.54		%
Risk-free rate	5.11		%	4.65		%	3.49		%	2.19		%	2.17		%	1.86		%	0.78		%	0.82		%	1.63		%	1.50		%
Total value at grant date	$	143,400		$	285,300		$	254,700		$	222,950		$	287,950		$	297,375		$	257,250		$	278,250		$	109,500		$	125,300		$	2,261,975
Expensed in previous years	143,400			285,300			254,700			222,950			287,950			297,375			257,250			278,250			109,500			—			2,136,675
Expensed in 2015	—			—			—			—			—			—			—			—			—			125,300			125,300
Future expense	—			—			—			—			—			—			—			—			—			—			—
	Officers
Grant date	4/27/2007			5/13/2011			5/4/2012			5/10/2013			5/9/2014			5/8/2015			Subtotals												Grand  Totals
Total grant	135,000			162,500			242,500			202,500			170,000			190,000			1,102,500												1,425,000
Vested	67,500			118,750			81,875			91,250			42,500			—			401,875												724,375
Exercised	14,097			57,504			38,750			21,875			625			—			132,851												225,351
Forfeited	67,500			43,750			135,000			30,000			—			—			276,250												298,750
Exercisable at September 30, 2015	53,403			61,246			43,125			69,375			41,875			—			269,024												476,524
Remaining unexercised	53,403			61,246			68,750			150,625			169,375			190,000			693,399												900,899
Exercise price	$	54.17		$	41.82		$	39.29		$	44.42		$	47.03		$	51.07
Volatility	0.233			0.330			0.315			0.304			0.306			0.298
Expected life (years)	6.5			8.0			8.0			8.0			7.0			7.0
Assumed yield	4.13		%	4.81		%	5.28		%	5.12		%	4.89		%	4.94		%
Risk-free rate	4.61		%	2.75		%	1.49		%	1.49		%	2.17		%	1.89		%
Gross value at grant date	$	1,339,200		$	1,366,625		$	1,518,050		$	1,401,300		$	1,349,800		$	1,584,600		$	8,559,575											$	10,821,550
Estimated forfeitures	62,000			367,937			889,690			280,468			168,749			141,780			1,910,624												1,910,624
Expensed in previous years	1,277,200			909,563			418,899			492,937			196,848			—			3,295,447												5,432,122
Expensed in 2015	—			89,125			117,819			201,825			221,454			150,295			780,518												905,818
Future expense	—			—			91,642			426,070			762,749			1,292,525			2,572,986												2,572,986
Weighted average term of remaining future expense (in years)							2.8

The table below summarizes the option activity for the nine months endedSeptember 30, 2015:

	Number of Shares		Weighted Average Exercise Price per share		Aggregate Intrinsic Value
Outstanding at January 1	748,208		$	44.79	$	9,274,028
Granted	225,000		51.07		153,000
Exercised	(72,309	)	42.71		1,041,624
Expired/Forfeited	—		—
Outstanding September 30	900,899		46.53		4,881,029
Exercisable September 30	476,524		45.33		3,235,179

The intrinsic value measures the price difference between the options’ exercise price and the closing share price quoted by the New York Stock Exchange as of the date of measurement. The intrinsic value for shares exercised during the period was calculated by using the closing share price on the date of exercise. At September 30, 2015, the closing share price of $51.75 was lower than the exercise price of the 73,403 outstanding options granted in 2007, and, therefore, those options had no intrinsic value as of September 30, 2015. The weighted average remaining contractual life of the Company’s outstanding and exercisable options is 7.2 years and 5.9 years, respectively.

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Document and Entity Information - shares shares in Millions	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	SAUL CENTERS INC
Entity Central Index Key	0000907254
Trading Symbol	BFS
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		21.2

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair value. The aggregate fair value of the notes payable with fixed-rate payment terms was determined using Level 3 data in a discounted cash flow approach, which is based upon management’s estimate of borrowing rates and loan terms currently available to the Company for fixed-rate financing and, assuming long-term interest rates of approximately 3.75% and 3.65%, would be approximately $894.4 million and $886.4 million, respectively, compared to the carrying value of $824.5 million and $784.8 million at September 30, 2015 and December 31, 2014, respectively. A change in any of the significant inputs may lead to a change in the Company’s fair value measurement of its debt.

The Company carries its interest rate swap at fair value. The Company has determined the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy with the exception of the impact of counter-party risk, which was determined using Level 3 inputs and is not significant. Derivative instruments are classified within Level 2 of the fair value hierarchy because their values are determined using third-party pricing models which contain inputs that are derived from observable market data. Where possible, the values produced by the pricing models are verified by market prices. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measure of volatility, and correlations of such inputs. The swap agreement terminates on July 1, 2020. As of September 30, 2015, the fair value of the interest-rate swap was approximately $3.6 million and is included in “Accounts payable, accrued expenses and other liabilities” in the consolidated balance sheets. The decrease in value from inception of the swap is reflected in “Other Comprehensive Income” in the Consolidated Statements of Comprehensive Income. Amounts recognized in earnings are included in Changes in Fair Value of Derivatives in the Consolidated Statements of Operations.

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2015			2014		2015			2014
Change in fair value:
Recognized in earnings	$	(6	)	$	1	$	(12	)	$	(6	)
Recognized in other comprehensive income	(561		)	374		(510		)	(273		)
	$	(567	)	$	375	$	(522	)	$	(279	)

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Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Base rent	$ 42,431	$ 41,452	$ 125,786	$ 123,053
Expense recoveries	8,181	7,734	24,710	24,348
Percentage rent	157	187	1,153	1,092
Other	1,607	1,222	4,526	7,335
Total revenue	52,376	50,595	156,175	155,828
Operating expenses
Property operating expenses	6,308	6,316	20,120	20,039
Provision for credit losses	621	170	1,281	480
Real estate taxes	5,933	5,594	17,710	16,631
Interest expense and amortization of deferred debt costs	11,229	11,584	33,988	34,537
Depreciation and amortization of deferred leasing costs	11,131	10,256	32,382	30,745
General and administrative	3,802	3,837	11,712	12,540
Acquisition related costs	57	359	78	738
Predevelopment expenses	57	0	57	503
Total operating expenses	39,138	38,116	117,328	116,213
Operating income	13,238	12,479	38,847	39,615
Change in fair value of derivatives	(6)	1	(12)	(6)
Gain on sale of property	0	0	11	6,069
Net Income	13,232	12,480	38,846	45,678
Noncontrolling interests
Income attributable to noncontrolling interests	(2,617)	(2,374)	(7,628)	(9,231)
Net income attributable to Saul Centers, Inc.	10,615	10,106	31,218	36,447
Preferred stock dividends	(3,093)	(3,206)	(9,281)	(9,619)
Net income attributable to common stockholders	$ 7,522	$ 6,900	$ 21,937	$ 26,828
Per share net income attributable to common stockholders
Basic and diluted (in usd per share)	$ 0.36	$ 0.33	$ 1.04	$ 1.29
Dividends declared per common share outstanding (in usd per share)	$ 0.43	$ 0.40	$ 1.29	$ 1.20

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Real Estate Acquired and Sold

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Real Estate Acquired and Sold

Real Estate Acquired and Sold

1580, 1582 and 1584 Rockville Pike

In January 2014, the Company purchased for $8.0 million1580 Rockville Pike and incurred acquisition costs of $0.2 million. In April 2014, the Company purchased for $11.0 million1582 Rockville Pike and incurred acquisition costs of $0.2 million. In December 2014, the company purchased for $6.2 million1584 Rockville Pike and incurred acquisition costs of $0.2 million. These retail properties are contiguous with each other and the Company's asset at 1500 Rockville Pike and are located in Rockville, Maryland.

Olney Center

In April 2014, in conjunction with the purchase of 1582 Rockville Pike in Rockville, Maryland, the Company concurrently sold to the seller, for $11.0 million, the 53,765 square foot Olney Center located in Olney, Maryland. Simultaneously with the sale of the Olney Center, the Company entered into a lease of the property with the buyer and continues to operate, lease and manage the property. The lease term is 20 years and the Company has the option to purchase the property for $14.6 million at the end of the lease term. The purchaser has the right to sell the property to the Company at any time from and after April 2016 at a price equal to $11.0 million increased by 1.5% annually beginning January 1, 2015 and continuing each January thereafter. The Company has accounted for this transaction as a secured financing.

Giant Center

In April 2014, the Company sold for $7.5 million the 70,040 square foot Giant Center located in Milford Mill, Maryland and recognized a $6.1 million gain. As of March 31, 2014, the carrying amounts of the associated assets and liabilities were $0.5 million and $0.1 million, respectively. There was no debt on the property.

726, 730 and 750 Glebe Road

In August 2014, the Company purchased for $40.0 million, 750 N. Glebe Road and incurred acquisition costs of $0.4 million. In December 2014, the Company purchased for $2.8 million, 730 N. Glebe Road, and incurred acquisition costs of $40,400. In September 2015, the Company purchased for $4.0 million, 726 N. Glebe Road and incurred acquisition costs of $56,700. These retail properties are contiguous and are located in Arlington, Virginia.

Westview Pad

In February 2015, the Company purchased for $0.9 million, including acquisition costs, a 1.1 acre retail pad site in Frederick, Maryland, which is contiguous with and an expansion of the Company's other Westview asset.

Allocation of Purchase Price of Real Estate Acquired

The Company allocates the purchase price of real estate investment properties to various components, such as land, buildings and intangibles related to in-place leases and customer relationships, based on their fair values. See Note 2. Summary of Significant Accounting Policies-Real Estate Investment Properties.

During 2014, the Company purchased five properties at an aggregate cost of $68.0 million, and incurred acquisition costs of $0.9 million. The purchase prices were allocated to the assets acquired and liabilities assumed based on their fair value as shown in the following table.

(in thousands)	1580 Rockville Pike			1582 Rockville Pike			750 N. Glebe Road		730 N. Glebe Road		1584 Rockville Pike			Total
Land	$	9,600		$	9,742		$	38,224	$	2,683	$	5,798		$	66,048
Buildings	2,200			828			1,327		78		440			4,874
In-place Leases	513			849			449		39		249			2,099
Above Market Rent	—			—			—		—		—			—
Below Market Rent	(4,313		)	(419		)	—		—		(337		)	(5,070		)
Total Purchase Price	$	8,000		$	11,000		$	40,000	$	2,800	$	6,150		$	67,950

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Nature of Operations

The Company, which conducts all of its activities through its subsidiaries, the Operating Partnership and Subsidiary Partnerships, engages in the ownership, operation, management, leasing, acquisition, renovation, expansion, development and financing of community and neighborhood shopping centers and mixed-use properties, primarily in the Washington, DC/Baltimore metropolitan area.

Because the properties are located primarily in the Washington, DC/Baltimore metropolitan area, the Company is subject to a concentration of credit risk related to these properties. A majority of the Shopping Centers are anchored by one or more major tenants. As of September 30, 2015, 31 of the Shopping Centers were anchored by a grocery store and offer primarily day-to-day necessities and services. Two tenants individually accounted for 2.5% or more of the Company’s total revenue for the nine months endedSeptember 30, 2015. Giant Food, a tenant at nine Shopping Centers, and Safeway, a tenant at eight Shopping Centers, individually accounted for 4.5% and 2.5%, respectively, of the Company's total revenue for the nine months endedSeptember 30, 2015.

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the accounts of Saul Centers and its subsidiaries, including the Operating Partnership and Subsidiary Partnerships, which are majority owned by Saul Centers. All significant intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments necessary for the fair presentation of the financial position and results of operations of Saul Centers, Inc. for the interim periods have been included. All such adjustments are of a normal recurring nature. These consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements of Saul Centers, Inc. for the year ended December 31, 2014, which are included in its Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of results to be expected for the year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Accounts Receivable, Accrued Income and Allowance for Doubtful Accounts

Accounts receivable primarily represent amounts currently due from tenants in accordance with the terms of the respective leases. Receivables are reviewed monthly and reserves are established with a charge to current period operations when, in the opinion of management, collection of the receivable is doubtful. Accounts receivable in the accompanying financial statements are shown net of an allowance for doubtful accounts of approximately $1.6 million and $0.7 million at September 30, 2015 and December 31, 2014, respectively.

In addition to rents due currently, accounts receivable includes approximately $40.6 million and $38.7 million, at September 30, 2015 and December 31, 2014, respectively, net of allowance for doubtful accounts totaling $0.5 million and $0.3 million, respectively, representing minimum rental income accrued on a straight-line basis to be paid by tenants over the remaining term of their respective leases.

Assets Held for Sale

The Company considers properties to be assets held for sale when all of the following criteria are met:

• management commits to a plan to sell a property;

• it is unlikely that the disposal plan will be significantly modified or discontinued;

• the property is available for immediate sale in its present condition;

• actions required to complete the sale of the property have been initiated;

• sale of the property is probable and the Company expects the completed sale will occur within one year; and

• the property is actively being marketed for sale at a price that is reasonable given its current market value.

The Company must make a determination as to the point in time that it is probable that a sale will be consummated, which generally occurs when an executed sales contract has no contingencies and the prospective buyer has significant funds at risk to ensure performance. Upon designation as an asset held for sale, the Company records the carrying value of each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and ceases depreciation. As of September 30, 2015, the Company has classified as held-for-sale one operating property, comprising 197,127 square feet of gross leasable area. The book value of this property, which is included in Other Assets, was $3.3 million, net of accumulated depreciation of $7.0 million, which does not exceed its estimated fair value, less costs to sell, and liabilities were $0.4 million. Fair value was determined based on a third party appraisal.

Cash and Cash Equivalents

Cash and cash equivalents include short-term investments. Short-term investments include money market accounts and other investments which generally mature within three months, measured from the acquisition date, and/or are readily convertible to cash.

Construction In Progress

Construction in progress includes land, preconstruction and development costs of active projects. Preconstruction costs include legal, zoning and permitting costs and other project carrying costs incurred prior to the commencement of construction. Development costs include direct construction costs and indirect costs incurred subsequent to the start of construction such as architectural, engineering, construction management and carrying costs consisting of interest, real estate taxes and insurance. Construction in progress as of September 30, 2015 and December 31, 2014, is composed of the following:

(in thousands)	September 30, 2015		December 31, 2014
Park Van Ness	$	63,495	$	26,998
Other	5,680		3,263
Total	$	69,175	$	30,261

Deferred Debt Costs

Deferred debt costs consist of fees and costs incurred to obtain long-term financing, construction financing and the revolving line of credit. These fees and costs are being amortized on a straight-line basis over the terms of the respective loans or agreements, which approximates the effective interest method. Deferred debt costs totaled $9.1 million and $9.9 million, net of accumulated amortization of $6.6 million and $5.9 million, at September 30, 2015 and December 31, 2014, respectively.

Deferred Income

Deferred income consists of payments received from tenants prior to the time they are earned and recognized by the Company as revenue, including tenant prepayment of rent for future periods, real estate taxes when the taxing jurisdiction has a fiscal year differing from the calendar year, reimbursements specified in the lease agreement and tenant construction work provided by the Company. In addition, deferred income includes the fair value of certain below market leases.

Deferred Leasing Costs

Deferred leasing costs consist of commissions paid to third-party leasing agents, internal direct costs such as employee compensation and payroll-related fringe benefits directly related to time spent performing leasing-related activities for successful commercial leases and amounts attributed to in-place leases associated with acquired properties. Leasing related activities include evaluating the prospective tenant’s financial condition, evaluating and recording guarantees, collateral and other security arrangements, negotiating lease terms, preparing lease documents and closing the transaction. Unamortized deferred costs are charged to expense if the applicable lease is terminated prior to expiration of the initial lease term. Deferred leasing costs are amortized over the term of the lease or remaining term of acquired leases. Collectively, deferred leasing costs totaled $26.9 million and $26.9 million, net of accumulated amortization of $25.4 million and $21.6 million, as of September 30, 2015 and December 31, 2014, respectively. Amortization expense, included in depreciation and amortization of deferred leasing costs in the consolidated statements of operations, totaled $4.2 million and $3.9 million for the nine months endedSeptember 30, 2015 and 2014, respectively.

Derivative Financial Instruments

The Company may, when appropriate, employ derivative instruments, such as interest-rate swaps, to mitigate the risk of interest rate fluctuations. The Company does not enter into derivative or other financial instruments for trading or speculative purposes. Derivative financial instruments are carried at fair value as either assets or liabilities on the consolidated balance sheets. For those derivative instruments that qualify and are designated as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as a fair value hedge or a cash flow hedge. For those derivative instruments that qualify and are designated as hedging instruments, the effective portion of the gain or loss on the hedge instruments is reported as a component of accumulated other comprehensive income (loss) and recognized in earnings within the same line item associated with the forecasted transaction in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the change in fair value of a derivative instrument is immediately recognized in earnings. For derivative instruments that do not qualify, or that qualify and are not designated, as hedging instruments, changes in fair value are immediately recognized in earnings.

Derivative financial instruments expose us to credit risk in the event of non-performance by the counterparties under the terms of the derivative instrument. The Company minimizes its credit risk on these transactions by dealing with major, creditworthy financial institutions as determined by management, and therefore, it believes that the likelihood of realizing losses from counterparty non-performance is remote.

Income Taxes

The Company made an election to be treated, and intends to continue operating so as to qualify, as a REIT under the Code, commencing with its taxable year ended December 31, 1993. A REIT generally will not be subject to federal income taxation, provided that distributions to its stockholders equal or exceed its REIT taxable income and it complies with certain other requirements. Therefore, no provision has been made for federal income taxes in the accompanying consolidated financial statements.

Legal Contingencies

The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, which are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, the Company believes the final outcome of such matters will not have a material adverse effect on its financial position or results of operations. Upon determination that a loss is probable to occur and can be reasonably estimated, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered probable can be difficult to determine.

Postemployment Benefits

From time to time, the Company may enter into an arrangement with an employee at the time of the employee’s separation from service whereby the employee will receive certain payments in exchange for certain releases, covenants not to compete, or other promises. If no future services are required in order for the employee to receive the payments, the Company estimates the amount of payments to be made over the life of the arrangement and records that amount as an expense as of the date of the arrangement with a corresponding liability representing the amount to be paid in the future.

Predevelopment Expenses

Predevelopment expenses represent certain costs incurred by the Company in connection with active development and redevelopment projects and include, for example, costs related to the early termination of tenant leases and demolition of existing structures.

Real Estate Investment Properties

The Company purchases real estate investment properties from time to time and records assets acquired and liabilities assumed, including land, buildings, and intangibles related to in-place leases and customer relationships, based on their fair values. The fair value of buildings generally is determined as if the buildings were vacant upon acquisition and subsequently leased at market rental rates and considers the present value of all cash flows expected to be generated by the property including an initial lease up period. From time to time the Company may purchase a property for future development purposes. The Company determines the fair value of above and below market intangibles associated with in-place leases by assessing the net effective rent and remaining term of the lease relative to market terms for similar leases at acquisition taking into consideration the remaining contractual lease period, renewal periods, and the likelihood of the tenant exercising its renewal options. The fair value of below market lease intangibles is recorded as deferred income and accreted as additional revenue over the remaining contractual lease period and any renewal option periods included in the valuation analysis. The fair value of above market lease intangibles is recorded as a deferred asset and amortized as a reduction of revenue over the remaining contractual lease term. The Company determines the fair value of at-market in-place leases considering the cost of acquiring similar leases, the foregone rents associated with the lease-up period and carrying costs associated with the lease-up period. Intangible assets associated with at-market in-place leases are amortized as additional expense over the remaining contractual lease term. To the extent customer relationship intangibles are present in an acquisition, the fair values of the intangibles are amortized over the lives of the customer relationships. The Company has never recorded a customer relationship intangible asset. Acquisition-related transaction costs are generally charged to expense as incurred and reported as acquisition related costs in the consolidated statements of operations.

If there is an event or change in circumstance that indicates a potential impairment in the value of a real estate investment property, the Company prepares an analysis to determine whether the carrying value of the real estate investment property exceeds its estimated fair value. The Company considers both quantitative and qualitative factors including recurring operating losses, significant decreases in occupancy, and significant adverse changes in legal factors and business climate. If impairment indicators are present, the Company compares the projected cash flows of the property over its remaining useful life, on an undiscounted basis, to the carrying value of that property. The Company assesses its undiscounted projected cash flows based upon estimated capitalization rates, historic operating results and market conditions that may affect the property. If the carrying value is greater than the undiscounted projected cash flows, the Company would recognize an impairment loss equivalent to an amount required to adjust the carrying amount to its then estimated fair value. The value of any property is sensitive to the actual results of any of the aforementioned estimated factors, either individually or taken as a whole. Should the actual results differ from management’s projections, the valuation could be negatively or positively affected. The Company did not recognize an impairment loss on any of its real estate during the nine months endedSeptember 30, 2015 and 2014.

Interest, real estate taxes, development-related salary costs and other carrying costs are capitalized on projects under development and construction. Upon substantial completion of construction and the placement of the assets into service, rental income, real estate tax expense, property operating expenses (consisting of payroll, repairs and maintenance, utilities, insurance and other property related expenses) and depreciation are included in current operations and capitalization of interest ceases. Property operating expenses are charged to operations as incurred. Interest capitalized totaled $1.4 million and $0.4 million for the nine months endedSeptember 30, 2015 and 2014, respectively. Commercial development projects are considered substantially complete and available for occupancy upon completion of tenant improvements, but no later than one year from the cessation of major construction activity. Multi-family residential development projects are considered substantially complete and available for occupancy upon receipt of the certificate of occupancy from the appropriate licensing authority. Substantially completed portions of a project are accounted for as separate projects.

Depreciation is calculated using the straight-line method and estimated useful lives of generally between 35 and 50 years for base buildings, or a shorter period if management determines that the building has a shorter useful life, and up to 20 years for certain other improvements that extend the useful lives. Leasehold improvement expenditures are capitalized when certain criteria are met, including when the Company supervises construction and will own the improvements. Tenant improvements are amortized, over the shorter of the lives of the related leases or the useful life of the improvements, using the straight-line method. Depreciation expense in the Consolidated Statements of Operations totaled $28.2 million and $26.8 million for the nine months endedSeptember 30, 2015 and 2014, respectively. Repairs and maintenance expense totaled $9.0 million and $9.2 million for the nine months endedSeptember 30, 2015 and 2014, respectively, and is included in property operating expenses in the Consolidated Statements of Operations.

Revenue Recognition

Rental and interest income are accrued as earned except when doubt exists as to collectability, in which case the accrual is discontinued. Recognition of rental income commences when control of the space has been given to the tenant. When rental payments due under leases vary from a straight-line basis because of free rent periods or scheduled rent increases, income is recognized on a straight-line basis. Expense recoveries represent a portion of property operating expenses billed to tenants, including common area maintenance, real estate taxes and other recoverable costs, and are recognized in the period in which the expenses are incurred. Rental income based on a tenant’s revenue (“percentage rent”) is accrued when a tenant reports sales that exceed a breakpoint specified in the lease agreement.

Stock-based Employee Compensation, Stock Plan and Deferred Compensation Plan for Directors

The Company uses the fair value method to value and account for employee stock options. The fair value of options granted is determined at the time of each award using the Black-Scholes model, a widely used method for valuing stock-based employee compensation, and the following assumptions: (1) Expected Volatility determined using the most recent trading history of the Company’s common stock (month-end closing prices) corresponding to the average expected term of the options; (2) Average Expected Term of the options is based on prior exercise history, scheduled vesting and the expiration date; (3) Expected Dividend Yield determined by management after considering the Company’s current and historic dividend yield rates, the Company’s yield in relation to other retail REITs and the Company’s market yield at the grant date; and (4) a Risk-free Interest Rate based upon the market yields of US Treasury obligations with maturities corresponding to the average expected term of the options at the grant date. The Company amortizes the value of options granted ratably over the vesting period and includes the amounts as compensation in general and administrative expenses.

The Company has a stock plan, which was originally approved in 2004, amended in 2008 and 2013 and which expires in 2023, for the purpose of attracting and retaining executive officers, directors and other key personnel (the “Stock Plan”). Pursuant to the Stock Plan, the Compensation Committee established a Deferred Compensation Plan for Directors for the benefit of its directors and their beneficiaries, which replaced a previous Deferred Compensation and Stock Plan for Directors. A director may make an annual election to defer all or part of his or her director’s fees and has the option to have the fees paid in cash, in shares of common stock or in a combination of cash and shares of common stock upon separation from the Board. If the director elects to have fees paid in stock, fees earned during a calendar quarter are aggregated and divided by the closing market price of the Company’s common stock on the first trading day of the following quarter to determine the number of shares to be credited to the director. As of September 30, 2015, the director's deferred fee accounts comprise 239,558 shares.

The Compensation Committee has also approved an annual award of shares of the Company’s common stock as additional compensation to each director serving on the Board of Directors as of the record date for the Annual Meeting of Stockholders. The shares are awarded as of each Annual Meeting of Stockholders, and their issuance may not be deferred.

Noncontrolling Interests

Saul Centers is the sole general partner of the Operating Partnership, owning a 74.2% common interest as of September 30, 2015. Noncontrolling interests in the Operating Partnership is comprised of limited partnership units owned by the Saul Organization. Noncontrolling interests reflected on the accompanying consolidated balance sheets is increased for earnings allocated to limited partnership interests and distributions reinvested in additional units, and is decreased for limited partner distributions. Noncontrolling interests reflected on the consolidated statements of operations represents earnings allocated to limited partnership interests.

Per Share Data

Per share data for net income (basic and diluted) is computed using weighted average shares of common stock. Convertible limited partnership units and employee stock options are the Company’s potentially dilutive securities. For all periods presented, the convertible limited partnership units are non-dilutive. The following table sets forth, for the indicated periods, weighted averages of the number of common shares outstanding, basic and dilutive, the effect of dilutive options and the number of options which are not dilutive because the average price of the Company's common stock was less than the exercise prices. The treasury stock method was used to measure the effect of the dilution.

	As of or For The Three Months Ended September 30,		As of or For The Nine Months Ended September 30,
(In thousands)	2015	2014	2015	2014
Weighted average common shares outstanding-Basic	21,158	20,839	21,091	20,726
Effect of dilutive options	33	39	66	35
Weighted average common shares outstanding-Diluted	21,191	20,878	21,157	20,761
Non-dilutive options	298	113	124	113
Years non-dilutive options were issued	2007 and 2015	2007 and 2008	2007 and 2015	2007 and 2008

Recently Issued Accounting Standards

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 will replace most existing revenue recognition guidance and will require an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted but not before annual periods beginning after December 15, 2016. ASU 2014-09 must be applied retrospectively by either restating prior periods or by recognizing the cumulative effect as of the first date of application. We have not yet selected a transition method and are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures.

In April 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest” (“ASU 2015-03”). ASU 2015-03 simplifies the presentation of debt issuance costs and will require an entity to deduct transaction costs from the carrying value of the related financial liability and not record those transaction costs as a separate asset. Recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those years, and must be applied retrospectively by adjusting the balance sheet of each individual period presented. Adoption of ASU 2015-03 is not expected to have a material effect on our consolidated financial statements and related disclosures.

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to the presentation used for the nine months endedSeptember 30, 2015.

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Organization, Formation and Structure (Tables)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Properties Acquired, in Development and Disposed

The following table lists the properties acquired, in development and disposed since December 31, 2013.

Name of Property	Location	Type	Year of Acquisition/ Development/Disposition
Acquisitions
1580 Rockville Pike	Rockville, MD	Shopping Center	2014
1582 Rockville Pike	Rockville, MD	Shopping Center	2014
750 N. Glebe Road	Arlington, VA	Shopping Center	2014
730 N. Glebe Road	Arlington, VA	Shopping Center	2014
726 N. Glebe Road	Arlington, VA	Shopping Center	2015
1584 Rockville Pike	Rockville, MD	Shopping Center	2014
Developments
Park Van Ness	Washington, DC	Mixed-Use	2013-2015
Dispositions
Giant	Baltimore, MD	Shopping Center	2014

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Neither the Company nor the current portfolio properties are subject to any material litigation, nor, to management’s knowledge, is any material litigation currently threatened against the Company, other than routine litigation and administrative proceedings arising in the ordinary course of business. Management believes that these items, individually or in the aggregate, will not have a material adverse impact on the Company or the current portfolio properties.

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Stockholders' Equity and Noncontrolling Interests

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Stockholders' Equity and Noncontrolling Interests

Stockholders’ Equity and Noncontrolling Interests

The consolidated statements of operations for the nine months endedSeptember 30, 2015 and 2014, reflect noncontrolling interests of $7.6 million and $9.2 million, respectively, representing the Saul Organization’s share of net income for each period.

On February 12, 2013, the Company sold, in an underwritten public offering, 5.6 million depositary shares, each representing 1/100th of a share of 6.875% Series C Cumulative Redeemable Preferred Stock, and received net cash proceeds of approximately $135.2 million. The depositary shares may be redeemed on or after February 12, 2018 at the Company’s option, in whole or in part, at the $25.00 liquidation preference plus accrued but unpaid dividends. The depositary shares pay an annual dividend of $1.71875 per share, equivalent to 6.875% of the $25.00 liquidation preference. The Series C preferred stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and is not convertible into any other securities of the Company except in connection with certain changes of control or delisting events. Investors in the depositary shares generally have no voting rights, but will have limited voting rights if the Company fails to pay dividends for six or more quarters (whether or not declared or consecutive) and in certain other events. On November 12, 2014, the Company sold, in an underwritten public offering, 1.6 million depositary shares of Series C Stock and received net cash proceeds of approximately $39.3 million (the "Additional Series C Stock"). The terms of Additional Series C Stock are identical to the Series C Stock. In December 2014, the Company used the proceeds from the offering of the Additional Series C Stock to redeem the remaining outstanding 8% Series A Cumulative Redeemable Preferred Stock.

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Noncontrolling Interests - Holders of Convertible Limited Partnership Units in the Operating Partnership

9 Months Ended

Sep. 30, 2015

Noncontrolling Interest [Abstract]

Noncontrolling Interests - Holders of Convertible Limited Partnership Units in the Operating Partnership

Noncontrolling Interests - Holders of Convertible Limited Partnership Units in the Operating Partnership

As of September 30, 2015, the Saul Organization holds a 25.8% limited partnership interest in the Operating Partnership represented by approximately 7.3 million convertible limited partnership units. These units are convertible into shares of Saul Centers’ common stock, at the option of the unit holder, on a one-for-one basis provided that, in accordance with the Saul Centers, Inc. Articles of Incorporation, the rights may not be exercised at any time that the Saul Organization beneficially owns, directly or indirectly, in the aggregate more than 39.9% of the value of the outstanding common stock and preferred stock of Saul Centers (the “Equity Securities”). As of September 30, 2015, approximately 965,000 units were convertible into shares of Saul Centers common stock.

The impact of the Saul Organization’s approximately 25.8% limited partnership interest in the Operating Partnership is reflected as Noncontrolling Interests in the accompanying consolidated financial statements. Fully converted partnership units and diluted weighted average shares outstanding for the three months endedSeptember 30, 2015 and 2014, were approximately 28.5 million and 28.1 million, respectively, and for the nine months endedSeptember 30, 2015 and 2014, were approximately 28.4 million and 27.9 million, respectively.

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Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs

Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs

The Company’s outstanding debt totaled approximately $869.4 million at September 30, 2015, of which approximately $824.5 million was fixed-rate debt and approximately $44.9 million was variable rate debt, including $30.0 million outstanding on the Company's unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled $860.5 million as of September 30, 2015.

At September 30, 2015, the Company had a $275.0 million unsecured revolving credit facility, which can be used for working capital, property acquisitions, development projects or letters of credit. The revolving credit facility matures on June 23, 2018, and may be extended by the Company for one additional year subject to the Company’s satisfaction of certain conditions. Saul Centers and certain consolidated subsidiaries of the Operating Partnership have guaranteed the payment obligations of the Operating Partnership under the revolving credit facility. Letters of credit may be issued under the revolving credit facility. On September 30, 2015, based on the value of the Company’s unencumbered properties, approximately $244.6 million was available under the line, $30.0 million was outstanding and approximately $448,000 was committed for letters of credit. The interest rate under the facility is variable and equals the sum of one-month LIBOR and a margin that is based on the Company’s leverage ratio, and which can range from 145 basis points to 200 basis points. As of September 30, 2015, the margin was 145 basis points.

At September 30, 2015, the Company had a $71.6 million construction-to-permanent loan, with $31.4 million outstanding, which is secured by and will be used to partially finance the construction of Park Van Ness.

On March 3, 2015, the Company closed on a 15-year, non-recourse $30.0 million mortgage loan secured by Shops at Fairfax and Boulevard. The loan matures in 2030, bears interest at a fixed rate of 3.69%, requires monthly principal and interest payments totaling $153,300 based on a 25-year amortization schedule and requires a final payment of $15.5 million at maturity. Proceeds were used to pay off the remaining balance of existing debt secured by Shops at Fairfax and Boulevard and to reduce outstanding borrowings under the revolving credit facility.

On April 1, 2015, the Company closed on a 15-year, non-recourse $16.0 million mortgage loan secured by Northrock. The loan matures in 2030, bears interest at a fixed rate of 3.99%, requires monthly principal and interest payments totaling $84,400 based on a 25-year amortization schedule and requires a final payment of $8.4 million at maturity. Proceeds were used to pay off the remaining balance of existing debt secured by Northrock.

Saul Centers is a guarantor of the revolving credit facility, of which the Operating Partnership is the borrower. The Operating Partnership is the guarantor of (a) a portion of the Metro Pike Center bank loan (approximately $7.8 million of the $14.9 million outstanding at September 30, 2015) and (b) the $71.6 million Park Van Ness construction-to-permanent loan, which guarantee will be reduced and eventually eliminated subject to the achievement of certain leasing and cash flow levels. The fixed-rate notes payable are all non-recourse.

The Company accounts for the sale-leaseback of the Olney Center as a secured financing and, accordingly, the $11.0 million proceeds from the sale are included in notes payable. Monthly payments of approximately $60,400, which increase by 1.5% annually, are required under the lease and interest accrues at a fixed rate of 8.0%, which is the implicit rate under the lease. The purchaser has the right to sell the property to the Company at any time from and after April 2016 at a price equal to $11.0 million increased by 1.5% annually beginning January 1, 2015 and continuing each January thereafter. The Company has an option to repurchase the property for $14.6 million when the lease expires in April 2034.

At December 31, 2014, the Company’s outstanding debt totaled approximately $857.4 million, of which $784.8 million was fixed rate debt and $72.6 million was variable rate debt, including $43.0 million outstanding on the Company’s unsecured revolving credit facility. The carrying value of the properties collateralizing the notes payable totaled $895.5 million as of December 31, 2014.

At September 30, 2015, the scheduled maturities of debt, including scheduled principal amortization, for years ending December 31, were as follows:

(In thousands)	Balloon Payments			Scheduled Principal Amortization		Total
October 1 through December 31, 2015	$	—		$	5,954	$	5,954
2016	14,724			24,413		39,137
2017	—			25,716		25,716
2018	57,748		(a)	25,902		83,650
2019	60,793			24,615		85,408
2020	61,163			21,893		83,056
Thereafter	418,770			127,712		546,482
	$	613,198		$	256,205	$	869,403

(a) Includes $30.0 million outstanding under the line of credit.

Interest expense and amortization of deferred debt costs for the three and nine months ended September 30, 2015 and 2014, were as follows:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(In thousands)	2015			2014			2015			2014
Interest incurred	$	11,489		$	11,415		$	34,287		$	33,998
Amortization of deferred debt costs	340			355			1,094			969
Capitalized interest	(600		)	(186		)	(1,393		)	(430		)
	$	11,229		$	11,584		$	33,988		$	34,537

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Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Chairman and Chief Executive Officer, the President, the Executive Vice President-Chief Legal and Administrative Officer and the Senior Vice President-Chief Accounting Officer of the Company are also officers of various members of the Saul Organization and their management time is shared with the Saul Organization. Their annual compensation is fixed by the Compensation Committee of the Board of Directors, with the exception of the Senior Vice President-Chief Accounting Officer whose share of annual compensation allocated to the Company is determined by the shared services agreement (described below).

The Company participates in a multiemployer 401K plan with entities in the Saul Organization which covers those full-time employees who meet the requirements as specified in the plan. Company contributions, which are included in general and administrative expense or property operating expenses in the consolidated statements of operations, at the discretionary amount of up to six percent of the employee’s cash compensation, subject to certain limits, were $312,400 and $281,800 for the nine months endedSeptember 30, 2015 and 2014, respectively. All amounts deferred by employees and the Company are fully vested.

The Company also participates in a multiemployer nonqualified deferred compensation plan with entities in the Saul Organization which covers those full-time employees who meet the requirements as specified in the plan. According to the plan, which can be modified or discontinued at any time, participating employees defer 2% of their compensation in excess of a specified amount. For the nine months endedSeptember 30, 2015 and 2014, the Company contributed $103,300 and $107,700, respectively, which is the sum of accrued earnings and three times the amount deferred by employees and is included in general and administrative expense. All amounts deferred by employees and the Company are fully vested. The cumulative unfunded liability under this plan was $1.7 million and $1.8 million, at September 30, 2015 and December 31, 2014, respectively, and is included in accounts payable, accrued expenses and other liabilities in the consolidated balance sheets.

The Company has entered into a shared services agreement (the “Agreement”) with the Saul Organization that provides for the sharing of certain personnel and ancillary functions such as computer hardware, software, and support services and certain direct and indirect administrative personnel. The method for determining the cost of the shared services is provided for in the Agreement and is based upon head count, estimates of usage or estimates of time incurred, as applicable. The terms of the Agreement and the payments made thereunder are deemed reasonable by management and are reviewed annually by the Audit Committee of the Board of Directors, which consists entirely of independent directors. Billings by the Saul Organization for the Company’s share of these ancillary costs and expenses for the nine months endedSeptember 30, 2015 and 2014, which included rental expense for the Company’s headquarters lease, totaled approximately $5.9 million and $5.5 million, respectively. The amounts are generally expensed as incurred and are primarily reported as general and administrative expenses in the consolidated financial statements. As of September 30, 2015 and December 31, 2014, accounts payable, accrued expenses and other liabilities included approximately $453,200 and $543,000, respectively, representing amounts due to the Saul Organization for the Company’s share of these ancillary costs and expenses.

The Company has entered into a shared third-party predevelopment cost agreement with the B. F. Saul Real Estate Investment Trust, a member of the Saul Organization (the “Predevelopment Agreement”). The Predevelopment Agreement, which expires on December 31, 2015, and which may be extended to December 31, 2016, relates to the sharing of third-party predevelopment costs incurred in connection with the planning of the future redevelopment of certain adjacent real estate assets in the Twinbrook area of Rockville, Maryland. The costs will be billed by the third-parties on a pro rata basis based on the acreage owned by each entity and neither party is obligated to advance funds to the other.

The Company subleases its corporate headquarters space from a member of the Saul Organization. The lease commenced in March 2002, was extended in 2012 for five years, and provides for base rent increases of 3% per year, with payment of a pro-rata share of operating expenses over a base year amount. The Agreement requires each party to pay an allocation of total rental payments based on a percentage proportionate to the number of employees employed by each party. The Company’s rent expense for its headquarters location was $684,800 and $630,000 for the nine months endedSeptember 30, 2015 and 2014, respectively, and is included in general and administrative expense.

The B. F. Saul Insurance Agency of Maryland, Inc., a subsidiary of the B. F. Saul Company and a member of the Saul Organization, is a general insurance agency that receives commissions and fees in connection with the Company’s insurance program. Such commissions and fees amounted to $295,000 and $288,800 for the nine months endedSeptember 30, 2015 and 2014, respectively.

Effective as of September 4, 2012, the Company entered into a consulting agreement with B. F. Saul III, a former president of the Company, whereby Mr. Saul III provided certain consulting services to the Company as an independent contractor and was paid at a rate of $60,000 per month. The consulting agreement included certain noncompete, nonsolicitation and nondisclosure covenants, and expired in September 2014. For the nine months endedSeptember 30, 2014, such consulting fees totaled $495,000.

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Real Estate Acquired and Sold - Narrative (Details)	1 Months Ended						9 Months Ended	12 Months Ended
	Sep. 30, 2015 USD ($) ft²	Feb. 28, 2015 USD ($) a	Dec. 31, 2014 USD ($) property	Aug. 31, 2014 USD ($)	Apr. 30, 2014 USD ($) ft²	Jan. 31, 2014 USD ($)	Sep. 30, 2015 USD ($) ft²	Dec. 31, 2014 USD ($) property	Mar. 31, 2014 USD ($)
Business Acquisition [Line Items]
Aggregate cost								$ 68,000,000
Property acquisition costs			$ 900,000					$ 900,000
Area of real estate property (in sq ft/acre) | ft²	197,127						197,127
Number of properties purchased | property			5					5
Olney Center
Business Acquisition [Line Items]
Name of property					Olney Center
Location of property					Olney, Maryland
Proceeds from sale of real estate					$ 11,000,000		$ 11,000,000
Area of real estate property (in sq ft/acre) | ft²					53,765
Lease term					20 years
Sale leaseback, option to purchase the property	$ 14,600,000				$ 14,600,000		14,600,000
Sales price of property	11,000,000						$ 11,000,000
Annual increase in rental payments, percentage							1.50%
Giant Center
Business Acquisition [Line Items]
Name of property					Giant Center
Location of property					Milford Mill, Maryland
Proceeds from sale of real estate					$ 7,500,000
Area of real estate property (in sq ft/acre) | ft²					70,040
Gain on sale of real estate					$ 6,100,000
Assets held-for-sale									$ 500,000
Liabilities of assets held-for-sale									$ 100,000
1580 Rockville Pike
Business Acquisition [Line Items]
Aggregate cost						$ 8,000,000
Name of property						1580 Rockville Pike
Property acquisition costs						$ 200,000
1582 Rockville Pike
Business Acquisition [Line Items]
Aggregate cost					$ 11,000,000
Name of property					1582 Rockville Pike
Property acquisition costs					$ 200,000
Location of property					Rockville, Maryland
1584 Rockville Pike
Business Acquisition [Line Items]
Aggregate cost			$ 6,200,000
Name of property			1584 Rockville Pike
Property acquisition costs			$ 200,000					$ 200,000
750 N. Glebe Road
Business Acquisition [Line Items]
Aggregate cost				$ 40,000,000
Name of property				750 N. Glebe Road
Property acquisition costs				$ 400,000
730 N. Glebe Road
Business Acquisition [Line Items]
Aggregate cost			$ 2,800,000
Name of property			730 N. Glebe Road
Property acquisition costs			$ 40,400					$ 40,400
726 N. Glebe Road
Business Acquisition [Line Items]
Aggregate cost	$ 4,000,000
Name of property	726 N. Glebe Road
Property acquisition costs	$ 56,700						$ 56,700
Westview Pad
Business Acquisition [Line Items]
Aggregate cost		$ 900,000
Name of property		Westview Pad
Location of property		Frederick, Maryland
Area of real estate property (in sq ft/acre) | a		1.1

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Subsequent Events

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has reviewed operating activities for the period subsequent to September 30, 2015, and prior to the date the financial statements are issued or are available to be issued, and determined there are no subsequent events required to be disclosed.

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Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Scheduled Maturities of Debt, Including Scheduled Principal Amortization

At September 30, 2015, the scheduled maturities of debt, including scheduled principal amortization, for years ending December 31, were as follows:

(In thousands)	Balloon Payments			Scheduled Principal Amortization		Total
October 1 through December 31, 2015	$	—		$	5,954	$	5,954
2016	14,724			24,413		39,137
2017	—			25,716		25,716
2018	57,748		(a)	25,902		83,650
2019	60,793			24,615		85,408
2020	61,163			21,893		83,056
Thereafter	418,770			127,712		546,482
	$	613,198		$	256,205	$	869,403

(a) Includes $30.0 million outstanding under the line of credit.

Interest Expense and Amortization of Deferred Debt Costs

Interest expense and amortization of deferred debt costs for the three and nine months ended September 30, 2015 and 2014, were as follows:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(In thousands)	2015			2014			2015			2014
Interest incurred	$	11,489		$	11,415		$	34,287		$	33,998
Amortization of deferred debt costs	340			355			1,094			969
Capitalized interest	(600		)	(186		)	(1,393		)	(430		)
	$	11,229		$	11,584		$	33,988		$	34,537

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Related Party Transactions (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2012	Dec. 31, 2014	Sep. 04, 2012
Related Party Transactions [Abstract]
Company contribution to a multi employer 401K plan at discretionary amount of employee's cash compensation, maximum percentage	6.00%
Company contribution to a multi employer 401K plan at discretionary amount of employee's cash compensation, amount	$ 312,400	$ 281,800
Deferred compensation, employee contribution, percentage	2.00%
Deferred compensation, company contribution, amount	$ 103,300	107,700
Number of times the employer contribution is higher than the amount deferred by employees	300.00%
Deferred compensation, cumulative unfunded liability	$ 1,700,000			$ 1,800,000
Ancillary costs and expenses	5,900,000	5,500,000
Liability due to The Saul Organization for the Company's share of these ancillary costs and expenses	453,200			$ 543,000
Extended lease expiration period			5 years
Percentage of annual increase in base rent			3.00%
Rent expense	684,800	630,000
Insurance commissions and fees expense	$ 295,000	288,800
Monthly consulting fees					$ 60,000
Consulting fees		$ 495,000

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 13,232	$ 12,480	$ 38,846	$ 45,678
Other comprehensive income
Change in unrealized loss on cash flow hedge	(561)	374	(510)	(273)
Total comprehensive income	12,671	12,854	38,336	45,405
Comprehensive income attributable to noncontrolling interests	(2,471)	(2,470)	(7,496)	(9,161)
Total comprehensive income attributable to Saul Centers, Inc.	10,200	10,384	30,840	36,244
Preferred stock dividends	(3,093)	(3,206)	(9,281)	(9,619)
Total comprehensive income attributable to common stockholders	$ 7,107	$ 7,178	$ 21,559	$ 26,625

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Organization, Formation and Structure

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Formation and Structure

Organization, Formation and Structure

Saul Centers, Inc. (“Saul Centers”) was incorporated under the Maryland General Corporation Law on June 10, 1993, and operates as a real estate investment trust (a “REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). The Company is required to annually distribute at least 90% of its REIT taxable income (excluding net capital gains) to its stockholders and meet certain organizational and other requirements. Saul Centers has made and intends to continue to make regular quarterly distributions to its stockholders. Saul Centers, together with its wholly-owned subsidiaries and the limited partnerships of which Saul Centers or one of its subsidiaries is the sole general partner, are referred to collectively as the “Company.” B. Francis Saul II serves as Chairman of the Board of Directors and Chief Executive Officer of Saul Centers.

Saul Centers was formed to continue and expand the shopping center business previously owned and conducted by the B. F. Saul Real Estate Investment Trust, the B. F. Saul Company and certain other affiliated entities, each of which is controlled by B. Francis Saul II and his family members (collectively, the “Saul Organization”). On August 26, 1993, members of the Saul Organization transferred to Saul Holdings Limited Partnership, a newly formed Maryland limited partnership (the “Operating Partnership”), and two newly formed subsidiary limited partnerships (the “Subsidiary Partnerships,” and, collectively with the Operating Partnership, the “Partnerships”), shopping center and mixed-use properties and the management functions related to the transferred properties. Since its formation, the Company has developed and purchased additional properties.

The following table lists the properties acquired, in development and disposed since December 31, 2013.

Name of Property	Location	Type	Year of Acquisition/ Development/Disposition
Acquisitions
1580 Rockville Pike	Rockville, MD	Shopping Center	2014
1582 Rockville Pike	Rockville, MD	Shopping Center	2014
750 N. Glebe Road	Arlington, VA	Shopping Center	2014
730 N. Glebe Road	Arlington, VA	Shopping Center	2014
726 N. Glebe Road	Arlington, VA	Shopping Center	2015
1584 Rockville Pike	Rockville, MD	Shopping Center	2014
Developments
Park Van Ness	Washington, DC	Mixed-Use	2013-2015
Dispositions
Giant	Baltimore, MD	Shopping Center	2014

As of September 30, 2015, the Company’s properties (the “Current Portfolio Properties”) consisted of 50 operating shopping center properties (the “Shopping Centers”), six mixed-use properties which are comprised of office, retail and multi-family residential uses, one of which is held for sale, (the “Mixed-Use Properties”) and three (non-operating) development properties.

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Stock Option Plans (Tables)

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options Issued

The following table summarizes the amount and activity of each grant with outstanding unexercised options, the total value and variables used in the computation and the amount expensed and included in general and administrative expense in the Consolidated Statements of Operations for the nine months endedSeptember 30, 2015.

Stock options issued

	Directors
Grant date	5/1/2006			4/27/2007			4/25/2008			4/24/2009			5/7/2010			5/13/2011			5/4/2012			5/10/2013			5/9/2014			5/8/2015			Subtotals
Total grant	30,000			30,000			30,000			32,500			32,500			32,500			35,000			35,000			30,000			35,000			322,500
Vested	30,000			30,000			30,000			32,500			32,500			32,500			35,000			35,000			30,000			35,000			322,500
Exercised	15,000			2,500			2,500			22,500			12,500			12,500			12,500			10,000			2,500			—			92,500
Forfeited	2,500			7,500			7,500			—			2,500			2,500			—			—			—			—			22,500
Exercisable at September 30, 2015	12,500			20,000			20,000			10,000			17,500			17,500			22,500			25,000			27,500			35,000			207,500
Remaining unexercised	12,500			20,000			20,000			10,000			17,500			17,500			22,500			25,000			27,500			35,000			207,500
Exercise price	$	40.35		$	54.17		$	50.15		$	32.68		$	38.76		$	41.82		$	39.29		$	44.42		$	47.03		$	51.07
Volatility	0.206			0.225			0.237			0.344			0.369			0.358			0.348			0.333			0.173			0.166
Expected life (years)	9.0			8.0			7.0			6.0			5.0			5.0			5.0			5.0			5.0			5.0
Assumed yield	5.93		%	4.39		%	4.09		%	4.54		%	4.23		%	4.16		%	4.61		%	4.53		%	4.48		%	4.54		%
Risk-free rate	5.11		%	4.65		%	3.49		%	2.19		%	2.17		%	1.86		%	0.78		%	0.82		%	1.63		%	1.50		%
Total value at grant date	$	143,400		$	285,300		$	254,700		$	222,950		$	287,950		$	297,375		$	257,250		$	278,250		$	109,500		$	125,300		$	2,261,975
Expensed in previous years	143,400			285,300			254,700			222,950			287,950			297,375			257,250			278,250			109,500			—			2,136,675
Expensed in 2015	—			—			—			—			—			—			—			—			—			125,300			125,300
Future expense	—			—			—			—			—			—			—			—			—			—			—
	Officers
Grant date	4/27/2007			5/13/2011			5/4/2012			5/10/2013			5/9/2014			5/8/2015			Subtotals												Grand  Totals
Total grant	135,000			162,500			242,500			202,500			170,000			190,000			1,102,500												1,425,000
Vested	67,500			118,750			81,875			91,250			42,500			—			401,875												724,375
Exercised	14,097			57,504			38,750			21,875			625			—			132,851												225,351
Forfeited	67,500			43,750			135,000			30,000			—			—			276,250												298,750
Exercisable at September 30, 2015	53,403			61,246			43,125			69,375			41,875			—			269,024												476,524
Remaining unexercised	53,403			61,246			68,750			150,625			169,375			190,000			693,399												900,899
Exercise price	$	54.17		$	41.82		$	39.29		$	44.42		$	47.03		$	51.07
Volatility	0.233			0.330			0.315			0.304			0.306			0.298
Expected life (years)	6.5			8.0			8.0			8.0			7.0			7.0
Assumed yield	4.13		%	4.81		%	5.28		%	5.12		%	4.89		%	4.94		%
Risk-free rate	4.61		%	2.75		%	1.49		%	1.49		%	2.17		%	1.89		%
Gross value at grant date	$	1,339,200		$	1,366,625		$	1,518,050		$	1,401,300		$	1,349,800		$	1,584,600		$	8,559,575											$	10,821,550
Estimated forfeitures	62,000			367,937			889,690			280,468			168,749			141,780			1,910,624												1,910,624
Expensed in previous years	1,277,200			909,563			418,899			492,937			196,848			—			3,295,447												5,432,122
Expensed in 2015	—			89,125			117,819			201,825			221,454			150,295			780,518												905,818
Future expense	—			—			91,642			426,070			762,749			1,292,525			2,572,986												2,572,986
Weighted average term of remaining future expense (in years)							2.8

Summary of Option Activity

The table below summarizes the option activity for the nine months endedSeptember 30, 2015:

	Number of Shares		Weighted Average Exercise Price per share		Aggregate Intrinsic Value
Outstanding at January 1	748,208		$	44.79	$	9,274,028
Granted	225,000		51.07		153,000
Exercised	(72,309	)	42.71		1,041,624
Expired/Forfeited	—		—
Outstanding September 30	900,899		46.53		4,881,029
Exercisable September 30	476,524		45.33		3,235,179

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Notes Payable, Revolving Credit Facility, Interest and Amortization of Deferred Debt Costs - Scheduled Maturities of Debt, Including Scheduled Principal Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Outstanding line of credit	$ 30,000	$ 43,000
Balloon Payments
October 1 through December 31, 2015	0
2016	14,724
2017	0
2018	57,748
2019	60,793
2020	61,163
Thereafter	418,770
Balloon Payments, Total	613,198
Scheduled Principal Amortization
October 1 through December 31, 2015	5,954
2016	24,413
2017	25,716
2018	25,902
2019	24,615
2020	21,893
Thereafter	127,712
Principal Amortization, Total	256,205
Total
October 1 through December 31, 2015	5,954
2016	39,137
2017	25,716
2018	83,650
2019	85,408
2020	83,056
Thereafter	546,482
Total	869,403
Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding line of credit	$ 30,000	$ 43,000

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Business Segments

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has two reportable business segments: Shopping Centers and Mixed-Use Properties. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates performance based upon income and cash flows from real estate of the combined properties in each segment. All of our properties within each segment generate similar types of revenues and expenses related to tenant rent, reimbursements and operating expenses. Although services are provided to a range of tenants, the types of services provided to them are similar within each segment. The properties in each portfolio have similar economic characteristics and the nature of the products and services provided to our tenants and the method to distribute such services are consistent throughout the portfolio. Certain reclassifications have been made to prior year information to conform to the 2015 presentation.

(Dollars in thousands)	Shopping Centers			Mixed-Use Properties			Corporate and Other			Consolidated Totals
Three months ended September 30, 2015
Real estate rental operations:
Revenue	$	38,903		$	13,462		$	11		$	52,376
Expenses	(8,295		)	(4,567		)	—			(12,862		)
Income from real estate	30,608			8,895			11			39,514
Interest expense and amortization of deferred debt costs	—			—			(11,229		)	(11,229		)
General and administrative	—			—			(3,802		)	(3,802		)
Acquisition related costs	(57		)	—			—			(57		)
Predevelopment expenses	(57		)	—			—			(57		)
Subtotal	30,494			8,895			(15,020		)	24,369
Depreciation and amortization of deferred leasing costs	(7,779		)	(3,352		)	—			(11,131		)
Change in fair value of derivatives	—			—			(6		)	(6		)
Net income (loss)	$	22,715		$	5,543		$	(15,026	)	$	13,232
Capital investment	$	7,404		$	16,932		$	—		$	24,336
Total assets	$	941,421		$	340,983		$	14,546		$	1,296,950
Three months ended September 30, 2014
Real estate rental operations:
Revenue	$	37,506		$	13,066		$	23		$	50,595
Expenses	(8,088		)	(3,992		)	—			(12,080		)
Income from real estate	29,418			9,074			23			38,515
Interest expense and amortization of deferred debt costs	—			—			(11,584		)	(11,584		)
General and administrative	—			—			(3,837		)	(3,837		)
Acquisition related costs	(359		)	—			—			(359		)
Subtotal	29,059			9,074			(15,398		)	22,735
Depreciation and amortization of deferred leasing costs	(7,055		)	(3,201		)	—			(10,256		)
Change in fair value of derivatives	—			—			1			1
Net income (loss)	$	22,004		$	5,873		$	(15,397	)	$	12,480
Capital investment	$	31,541		$	6,026		$	—		$	37,567
Total assets	$	942,441		$	301,043		$	15,044		$	1,258,528

(Dollars in thousands)	Shopping Centers			Mixed-Use Properties			Corporate and Other			Consolidated Totals
Nine months ended September 30, 2015
Real estate rental operations:
Revenue	$	116,567		$	39,571		$	37		$	156,175
Expenses	(25,785		)	(13,326		)	—			(39,111		)
Income from real estate	90,782			26,245			37			117,064
Interest expense and amortization of deferred debt costs	—			—			(33,988		)	(33,988		)
General and administrative	—			—			(11,712		)	(11,712		)
Acquisition related costs	(78		)	—			—			(78		)
Predevelopment expenses	(57		)	—			—			(57		)
Subtotal	90,647			26,245			(45,663		)	71,229
Depreciation and amortization of deferred leasing costs	(22,633		)	(9,749		)	—			(32,382		)
Gain on sale of property	11			—			—			11
Change in fair value of derivatives	—			—			(12		)	(12		)
Net income (loss)	$	68,025		$	16,496		$	(45,675	)	$	38,846
Capital investment	$	12,883		$	37,030		$	—		$	49,913
Total assets	$	941,421		$	340,983		$	14,546		$	1,296,950
Nine months ended September 30, 2014
Real estate rental operations:
Revenue	$	116,381		$	39,389		$	58		$	155,828
Expenses	(25,580		)	(11,570		)	—			(37,150		)
Income from real estate	90,801			27,819			58			118,678
Interest expense and amortization of deferred debt costs	—			—			(34,537		)	(34,537		)
General and administrative	—			—			(12,540		)	(12,540		)
Acquisition related costs	(738		)	—			—			(738		)
Predevelopment expenses	—			(503		)	—			(503		)
Subtotal	90,063			27,316			(47,019		)	70,360
Depreciation and amortization of deferred leasing costs	(20,863		)	(9,882		)	—			(30,745		)
Gain on sale of property	6,069			—			—			6,069
Change in fair value of derivatives	—			—			(6		)	(6		)
Net income (loss)	$	75,269		$	17,434		$	(47,025	)	$	45,678
Capital investment	$	55,865		$	14,047		$	—		$	69,912
Total assets	$	942,441		$	301,043		$	15,044		$	1,258,528