10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

        ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2023

OR

        ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading symbol:	Name of exchange on which registered:
Common Stock, Par Value $0.01 Per Share	BFS	New York Stock Exchange
Depositary Shares each representing 1/100th of a share of 6.125% Series D Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share	BFS/PRD	New York Stock Exchange
Depositary Shares each representing 1/100th of a share of 6.000% Series E Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share	BFS/PRE	New York Stock Exchange

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   ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted 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 such files). Yes   ☒    No   ☐

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Number of shares of common stock, par value $0.01 per share outstanding as of October 30, 2023: 23,943,816.

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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, 2023 and December 31, 2022	4
(b) Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022	5
(c) Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2023 and 2022	6
(d) Consolidated Statements of Equity for the three and nine months ended September 30, 2023 and 2022	7
(e) Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022	11
(f) Notes to Consolidated Financial Statements	12
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(a) Critical Accounting Policies	27
(b) Results of Operations:
Three months ended September 30, 2023 compared to three months ended September 30, 2022	28
Nine months ended September 30, 2023 compared to nine months ended September 30, 2022	30
Same property revenue and same property operating income	31
(c) Liquidity and Capital Resources	34
Item 3. Quantitative and Qualitative Disclosures About Market Risk	39
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	41
Signatures	42

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PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands, except per share amounts)	September 30, 2023		December 31, 2022
Assets
Real estate investments
Land	$	511,529	$	511,529
Buildings and equipment	1,588,219		1,574,381
Construction in progress	467,939		322,226
	2,567,687		2,408,136
Accumulated depreciation	(719,163)		(688,475)
	1,848,524		1,719,661
Cash and cash equivalents	6,586		13,279
Accounts receivable and accrued income, net	56,894		56,323
Deferred leasing costs, net	23,147		22,388
Other assets	25,772		21,651
Total assets	$	1,960,923	$	1,833,302
Liabilities
Notes payable, net	$	943,538	$	961,577
Revolving credit facility payable, net	249,521		161,941
Term loan facility payable, net	99,493		99,382
Construction loan payable, net	50,760		—
Accounts payable, accrued expenses and other liabilities	60,819		42,978
Deferred income	22,977		23,169
Dividends and distributions payable	22,482		22,453
Total liabilities	1,449,590		1,311,500
Equity
Preferred stock, 1,000,000 shares authorized:
Series D Cumulative Redeemable, 30,000 shares issued and outstanding	75,000		75,000
Series E Cumulative Redeemable, 44,000 shares issued and outstanding	110,000		110,000
Common stock, $0.01 par value, 40,000,000 shares authorized, 24,064,211 and 24,016,009 shares issued and outstanding, respectively	241		240
Additional paid-in capital	449,076		446,301
Partnership units in escrow	39,650		39,650
Distributions in excess of accumulated earnings	(285,024)		(273,559)
Accumulated other comprehensive income	4,724		2,852
Total Saul Centers, Inc. equity	393,667		400,484
Noncontrolling interests	117,666		121,318
Total equity	511,333		521,802
Total liabilities and equity	$	1,960,923	$	1,833,302

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,
	2023		2022		2023		2022
Revenue
Rental revenue	$	62,369	$	59,951	$	186,199	$	179,765
Other	1,397		1,136		4,325		3,759
Total revenue	63,766		61,087		190,524		183,524
Expenses
Property operating expenses	9,720		8,995		27,502		26,174
Real estate taxes	7,641		7,078		22,589		21,652
Interest expense, net and amortization of deferred debt costs	12,419		11,103		36,518		32,162
Depreciation and amortization of deferred leasing costs	12,096		12,195		36,227		36,899
General and administrative	5,179		5,555		16,125		15,988
Loss on early extinguishment of debt	—		648		—		648
Total expenses	47,055		45,574		138,961		133,523
Net Income	16,711		15,513		51,563		50,001
Noncontrolling interests
Income attributable to noncontrolling interests	(3,892)		(3,563)		(12,080)		(11,670)
Net income attributable to Saul Centers, Inc.	12,819		11,950		39,483		38,331
Preferred stock dividends	(2,798)		(2,798)		(8,395)		(8,395)
Net income available to common stockholders	$	10,021	$	9,152	$	31,088	$	29,936
Per share net income available to common stockholders
Basic and diluted	$	0.42	$	0.38	$	1.29	$	1.25

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)	2023		2022		2023		2022
Net income	$	16,711	$	15,513	$	51,563	$	50,001
Other comprehensive income
Change in unrealized gain on cash flow hedge	2,211		4,256		2,598		4,256
Total comprehensive income	18,922		19,769		54,161		54,257
Comprehensive income attributable to noncontrolling interests	(4,510)		(4,756)		(12,806)		(12,863)
Total comprehensive income attributable to Saul Centers, Inc.	14,412		15,013		41,355		41,394
Preferred stock dividends	(2,798)		(2,798)		(8,395)		(8,395)
Total comprehensive income available to common stockholders	$	11,614	$	12,215	$	32,960	$	32,999

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

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Saul Centers, Inc.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited) 

(Dollars in thousands, except per share amounts)	Preferred Stock		Common Stock		Additional Paid-in Capital		Partnership Units in Escrow		Distributions in Excess of Accumulated Earnings		Accumulated Other Comprehensive Income		Total Saul Centers, Inc.		Noncontrolling Interests		Total
Balance, January 1, 2023	$	185,000	$	240	$	446,301	$	39,650	$	(273,559)	$	2,852	$	400,484	$	121,318	$	521,802
Issuance of shares of common stock:
13,227 shares pursuant to dividend reinvestment plan	—		—		543		—		—		—		543		—		543
699 shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	—		—		290		—		—		—		290		—		290
Net income	—		—		—		—		13,502		—		13,502		4,161		17,663
Change in unrealized gain/loss on cash flow hedge	—		—		—		—		—		(1,450)		(1,450)		(564)		(2,014)
Distributions payable preferred stock:
Series D, $38.28 per share	—		—		—		—		(1,148)		—		(1,148)		—		(1,148)
Series E, $37.50 per share	—		—		—		—		(1,650)		—		(1,650)		—		(1,650)
Distributions payable common stock ($0.59/share) and distributions payable partnership units ($0.59/unit)	—		—		—		—		(14,165)		—		(14,165)		(5,486)		(19,651)
Balance, March 31, 2023	185,000		240		447,134		39,650		(277,020)		1,402		396,406		119,429		515,835
Issuance of shares of common stock:
15,588 shares pursuant to dividend reinvestment plan	—		—		544		—		—		—		544		—		544
3,104 shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	—		—		553		—		—		—		553		—		553
Net income	—		—		—		—		13,162		—		13,162		4,027		17,189
Change in unrealized gain/loss on cash flow hedge	—		—		—		—		—		1,729		1,729		672		2,401
Distributions payable preferred stock:
Series D, $38.28 per share	—		—		—		—		(1,149)		—		(1,149)		—		(1,149)
Series E, $37.50 per share	—		—		—		—		(1,650)		—		(1,650)		—		(1,650)
Distributions payable common stock ($0.59/share) and distributions payable partnership units ($0.59/unit)	—		—		—		—		(14,193)		—		(14,193)		(5,486)		(19,679)
Balance, June 30, 2023	185,000		240		448,231		39,650		(280,850)		3,131		395,402		118,642		514,044

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Saul Centers, Inc.

CONSOLIDATED STATEMENTS OF EQUITY (continued) (Unaudited)
(Dollars in thousands, except per share amounts)	Preferred Stock		Common Stock		Additional Paid-in Capital		Partnership Units in Escrow		Distributions in Excess of Accumulated Earnings		Accumulated Other Comprehensive Income		Total Saul Centers, Inc.		Noncontrolling Interests		Total
Issuance of shares of common stock:
14,690 shares pursuant to dividend reinvestment plan	—		1		554		—		—		—		555		—		555
895 shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	—		—		291		—		—		—		291		—		291
Net income	—		—		—		—		12,819		—		12,819		3,892		16,711
Change in unrealized gain on cash flow hedge	—		—		—		—		—		1,593		1,593		618		2,211
Distributions payable preferred stock:
Series D, $38.28 per share	—		—		—		—		(1,148)		—		(1,148)		—		(1,148)
Series E, $37.50 per share	—		—		—		—		(1,650)		—		(1,650)		—		(1,650)
Distributions payable common stock ($0.59/share) and distributions payable partnership units ($0.59/unit)	—		—		—		—		(14,195)		—		(14,195)		(5,486)		(19,681)
Balance, September 30, 2023	$	185,000	$	241	$	449,076	$	39,650	$	(285,024)	$	4,724	$	393,667	$	117,666	$	511,333

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Saul Centers, Inc.

CONSOLIDATED STATEMENTS OF EQUITY (continued) (Unaudited)
(Dollars in thousands, except per share amounts)	Preferred Stock		Common Stock		Additional Paid-in Capital		Partnership Units in Escrow		Distributions in Excess of Accumulated Earnings		Accumulated Other Comprehensive Income		Total Saul Centers, Inc.		Noncontrolling Interests		Total
Balance, January 1, 2022	$	185,000	$	238	$	436,609	$	39,650	$	(256,448)	$	—	$	405,049	$	125,438	$	530,487
Issuance of shares of common stock:
61,861 shares pursuant to dividend reinvestment plan	—		1		2,948		—		—		—		2,949		—		2,949
8,007 shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	—		—		594		—		—		—		594		—		594
Issuance of 13,704 partnership units pursuant to dividend reinvestment plan	—		—		—		—		—		—		—		653		653
Net income	—		—		—		—		13,365		—		13,365		4,126		17,491
Distributions payable preferred stock:
Series D, $38.28 per share	—		—		—		—		(1,148)		—		(1,148)		—		(1,148)
Series E, $37.50 per share	—		—		—		—		(1,650)		—		(1,650)		—		(1,650)
Distributions payable common stock ($0.57/share) and distributions payable partnership units ($0.57/unit)	—		—		—		—		(13,625)		—		(13,625)		(5,292)		(18,917)
Balance, March 31, 2022	185,000		239		440,151		39,650		(259,506)		—		405,534		124,925		530,459
Issuance of shares of common stock:
57,821 shares pursuant to dividend reinvestment plan	—		1		2,948		—		—		—		2,949		—		2,949
19,618 shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	—		—		1,397		—		—		—		1,397		—		1,397
Issuance of 12,955 partnership units pursuant to dividend reinvestment plan	—		—		—		—		—		—		—		669		669
Net income	—		—		—		—		13,016		—		13,016		3,981		16,997
Distributions payable preferred stock:
Series D, $38.28 per share	—		—		—		—		(1,148)		—		(1,148)		—		(1,148)
Series E, $37.50 per share	—		—		—		—		(1,650)		—		(1,650)		—		(1,650)
Distributions payable common stock ($0.59/share) and distributions payable partnership units ($0.59/unit)	—		—		—		—		(14,156)		—		(14,156)		(5,486)		(19,642)
Balance, June 30, 2022	185,000		240		444,496		39,650		(263,444)		—		405,942		124,089		530,031

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Saul Centers, Inc.

CONSOLIDATED STATEMENTS OF EQUITY (continued) (Unaudited)
(Dollars in thousands, except per share amounts)	Preferred Stock		Common Stock		Additional Paid-in Capital		Partnership Units in Escrow		Distributions in Excess of Accumulated Earnings		Accumulated Other Comprehensive Income		Total Saul Centers, Inc.		Noncontrolling Interests		Total
Issuance of shares of common stock:
10,577 shares pursuant to dividend reinvestment plan	—		—		537		—		—		—		537		—		537
3,191 shares due to share grants exercise of stock options and issuance of directors’ deferred stock	—		—		423		—		—		—		423		—		423
Net income	—		—		—		—		11,950		—		11,950		3,563		15,513
Change in unrealized loss on cash flow hedge	—		—		—		—		—		3,063		3,063		1,193		4,256
Distributions payable preferred stock:
Series D, $38.28 per share	—		—		—		—		(1,148)		—		(1,148)		—		(1,148)
Series E, $37.50 per share	—		—		—		—		(1,650)		—		(1,650)		—		(1,650)
Distributions payable common stock ($0.59/share) and distributions payable partnership units ($0.59/unit)	—		—		—		—		(14,159)		—		(14,159)		(5,486)		(19,645)
Balance, September 30, 2022	$	185,000	$	240	$	445,456	$	39,650	$	(268,451)	$	3,063	$	404,958	$	123,359	$	528,317

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)	2023		2022
Cash flows from operating activities:
Net income	$	51,563	$	50,001
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on early extinguishment of debt	—		648
Depreciation and amortization of deferred leasing costs	36,227		36,899
Amortization of deferred debt costs	1,687		1,428
Compensation costs of stock and option grants	1,134		1,220
Credit losses (recoveries) on operating lease receivables, net	160		(20)
Increase in accounts receivable and accrued income	(731)		(3)
Additions to deferred leasing costs	(3,856)		(1,417)
Increase in other assets	(4,304)		(1,531)
Increase in accounts payable, accrued expenses and other liabilities	3,352		4,085
Increase (decrease) in deferred income	(192)		699
Net cash provided by operating activities	85,040		92,009
Cash flows from investing activities:
Additions to real estate investments	(18,612)		(12,215)
Additions to development and redevelopment projects	(128,655)		(72,294)
Net cash used in investing activities	(147,267)		(84,509)
Cash flows from financing activities:
Proceeds from notes payable	15,300		199,750
Repayments on notes payable	(33,910)		(166,290)
Proceeds from revolving credit facility	113,000		119,000
Repayments on revolving credit facility	(26,000)		(97,000)
Proceeds from construction loan	53,306		—
Payments of debt extinguishment costs	—		(593)
Additions to deferred debt costs	(423)		(9,800)
Proceeds from the issuance of:
Common stock	1,642		7,629
Partnership units	—		1,322
Distributions to:
Series D preferred stockholders	(3,446)		(3,445)
Series E preferred stockholders	(4,950)		(4,950)
Common stockholders	(42,527)		(41,364)
Noncontrolling interests	(16,458)		(16,062)
Net cash provided by (used in) financing activities	55,534		(11,803)
Net decrease in cash and cash equivalents	(6,693)		(4,303)
Cash and cash equivalents, beginning of period	13,279		14,594
Cash and cash equivalents, end of period	$	6,586	$	10,291
Supplemental disclosure of cash flow information:
Cash paid for interest	$	34,424	$	30,295
Accrued capital expenditures included in accounts payable, accrued expenses, and other liabilities	$	33,495	$	13,955

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

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Notes to Consolidated Financial Statements (Unaudited)

1.    Organization, Basis of Presentation

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 (the “Board”) and Chief Executive Officer of Saul Centers.

The Company, which conducts all of its activities through its subsidiaries, Saul Holdings Limited Partnership, a Maryland limited partnership (the “Operating Partnership”) and two subsidiary limited partnerships (the “Subsidiary Partnerships,” and, collectively with the Operating Partnership, the “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, D.C./Baltimore metropolitan area.

As of September 30, 2023, the Company’s properties (the “Current Portfolio Properties”) consisted of 50 shopping center properties (the “Shopping Centers”), seven mixed-use properties, which are comprised of office, retail and multi-family residential uses (the “Mixed-Use Properties”) and four (non-operating) land and development properties.

Because the properties are located primarily in the Washington, D.C./Baltimore metropolitan area, the Company is subject to a concentration of credit risk related to these properties. The Shopping Centers, a majority of which are anchored by one or more major tenants and 33 of which are anchored by a grocery store, offer primarily day-to-day necessities and services. Giant Food, a tenant at 11 Shopping Centers, individually accounted for 4.9% of the Company's total revenue for the nine months ended September 30, 2023. No other tenant individually accounted for 2.5% or more of the Company’s total revenue, excluding lease termination fees, for the nine months ended September 30, 2023.

The accompanying consolidated financial statements of the Company include the accounts of Saul Centers and its subsidiaries, including the Partnerships, which are majority owned by Saul Centers. Substantially all assets and liabilities of the Company as of September 30, 2023 and December 31, 2022, are comprised of the assets and liabilities of the Operating Partnership. Debt arrangements subject to recourse are described in Note 5. All significant intercompany balances and transactions have been eliminated in consolidation.

The Operating Partnership is a variable interest entity (“VIE”) because the limited partners do not have substantive kick-out or participating rights. The Company is the primary beneficiary of the Operating Partnership because it has the power to direct its activities and the rights to absorb 72.0% of its net income. Because the Operating Partnership is consolidated into the financial statements of the Company, classification of it as a VIE has no impact on the consolidated financial statements of the Company.

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 the Company 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 the Company for the year ended December 31, 2022, which are included in its Annual Report on Form 10-K. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to those instructions. The results of operations for interim periods are not necessarily indicative of results to be expected for the year.

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Notes to Consolidated Financial Statements (Unaudited)

2.     Summary of Significant Accounting Policies

Our significant accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 have not changed significantly in number or composition.

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. The most significant estimates and assumptions relate to collectability of operating lease receivables and impairment of real estate properties. Actual results could differ from those estimates.

Accounts Receivable, Accrued Income and Allowance for Doubtful Accounts

Accounts receivable are primarily comprised of rental and reimbursement billings due from tenants, and straight-line rent receivables representing the cumulative amount of adjustments necessary to present rental income on a straight-line basis. Individual leases are assessed for collectability and, upon the determination that the collection of rents is not probable, accrued rent and accounts receivable are charged off, and the charge off is reflected as an adjustment to rental revenue. Revenue from leases where collection is not probable is recorded on a cash basis until collectability is determined to be probable. Further, we assess whether operating lease receivables, at the portfolio level, are appropriately valued based upon an analysis of balances outstanding, historical bad debt levels and current economic trends. As of September 30, 2023, of the $9.4 million of rents previously deferred, $0.3 million has been written off and $0.4 million has not yet come due. The amount that has not yet come due is included in Accounts receivable and accrued income, net in the Consolidated Balance Sheets.

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to the presentation used as of and for the nine months ended September 30, 2023.

3.    Real Estate

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, 2023 and December 31, 2022, is composed of the following:

(In thousands)	September 30, 2023		December 31, 2022
Twinbrook Quarter (1)	$	328,862	$	227,672
Hampden House (2)	120,787		80,704
Other	18,290		13,850
Total	$	467,939	$	322,226

(1) Includes capitalized interest of $22.4 million and $12.4 million, as of September 30, 2023 and December 31, 2022, respectively.

(2) Includes capitalized interest of $12.4 million and $8.7 million, as of September 30, 2023 and December 31, 2022, respectively.

Leases

We lease Shopping Centers and Mixed-Use Properties to lessees in exchange for monthly payments that cover rent, and, where applicable, reimbursement for property taxes, insurance, and certain property operating expenses. Our leases have been determined to be operating leases and generally range in term from one to 15 years.

Some of our leases have termination options and/or extension options. Termination options allow the lessee and/or lessor to terminate the lease prior to the end of the lease term, provided certain conditions are met. Termination options generally require advance notification from the lessee and/or lessor and payment of a termination fee. Termination fees are recognized as revenue over the modified lease term. Extension options are subject to terms and conditions stated in the lease.

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Notes to Consolidated Financial Statements (Unaudited)

An operating lease right of use asset and corresponding lease liability related to our headquarters sublease are reflected in other assets and other liabilities, respectively. The sublease expires on February 28, 2027. The right of use asset and corresponding lease liability totaled $2.7 million and $2.7 million, respectively, at September 30, 2023.

Deferred Leasing Costs

Deferred leasing costs primarily consist of initial direct costs incurred in connection with successful property leasing and amounts attributed to in-place leases associated with acquired properties. Such amounts are capitalized and amortized, using the straight-line method, over the term of the lease or the remaining term of an acquired lease. Initial direct costs primarily consist of leasing commissions, which are costs paid to third-party brokers and lease commissions paid to certain employees that are incremental to obtaining a lease and would not have been incurred if the lease had not been obtained. Unamortized deferred costs are charged to expense if the applicable lease is terminated prior to expiration of the initial lease term. Collectively, deferred leasing costs totaled $23.1 million and $22.4 million, net of accumulated amortization of $53.3 million and $51.3 million, as of September 30, 2023 and December 31, 2022, respectively. Amortization expense, included in depreciation and amortization of deferred leasing costs in the Consolidated Statements of Operations, totaled $3.1 million and $3.2 million for the nine months ended September 30, 2023 and 2022, respectively.

Real Estate Investment Properties

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 $33.1 million and $33.7 million for the nine months ended September 30, 2023 and 2022, respectively. Repairs and maintenance expense totaled $11.3 million and $11.1 million for the nine months ended September 30, 2023 and 2022, respectively, and is included in property operating expenses in the Consolidated Statements of Operations.

As of September 30, 2023, we have not identified any impairment triggering events, including the impact of COVID-19 and corresponding tenant requests for rent relief. Therefore, under applicable GAAP guidance, no impairment charges were recorded.

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

As of September 30, 2023, 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”) held an aggregate 26.6% limited partnership interest in the Operating Partnership represented by approximately 8.8 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 Company’s Articles of Incorporation, the rights may not be exercised at any time that the Saul Organization beneficially owns or will own after the exercise, 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, 2023, approximately 825,000 units could be converted into shares of Saul Centers common stock.

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Notes to Consolidated Financial Statements (Unaudited)

As of September 30, 2023, a third party investor holds a 1.4% limited partnership interest in the Operating Partnership represented by 469,740 convertible limited partnership units. At the option of the unit holder, these units are convertible into shares of Saul Centers’ common stock on a one-for-one basis; provided that, in lieu of the delivery of Saul Centers’ common stock, Saul Centers may, in its sole discretion, deliver cash in an amount equal to the value of such Saul Centers’ common stock.

The impact of the aggregate 28.0% limited partnership interest in the Operating Partnership held by parties other than Saul Centers is reflected as Noncontrolling Interests in the accompanying consolidated financial statements. Weighted average fully diluted partnership units and common stock outstanding for the three months ended September 30, 2023 and 2022, was approximately 34.1 million and 34.0 million, respectively and for the nine months ended September 30, 2023 and 2022, was approximately 34.0 million and 34.0 million, respectively.

The Company previously issued 708,035 limited partnership units related to the contribution of Twinbrook Quarter that were held in escrow as of September 30, 2023 and were released on October 18, 2023, as scheduled. Prior to the escrow release date, the units were not eligible to receive distributions from the Operating Partnership.

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

At September 30, 2023, the Company had a $525.0 million senior unsecured credit facility (the “Credit Facility”) comprised of a $425.0 million revolving credit facility and a $100.0 million term loan. The revolving credit facility matures on August 29, 2025, and may be extended by the Company for one additional year, subject to satisfaction of certain conditions. The term loan matures on February 26, 2027. Interest accrues at the Secured Overnight Financing Rate (“SOFR”) plus 10 basis points plus an applicable spread, which is determined by certain leverage tests. As of September 30, 2023, the applicable spread for borrowings was 140 basis points related to the revolving credit facility and 135 basis points related to the term loan. Letters of credit may be issued under the Credit Facility. On September 30, 2023, based on the value of the Company’s unencumbered properties calculated in accordance with the terms of the Credit Facility, approximately $110.5 million was available and undrawn under the Credit Facility, $351.0 million was outstanding and approximately $185,000 was committed for letters of credit.

On August 23, 2022, the Company entered into two floating-to-fixed interest rate swap agreements to manage the interest rate risk associated with $100.0 million of its variable-rate debt. The effective date of each swap agreement is October 3, 2022 and each has a $50.0 million notional amount. One agreement terminates on October 1, 2027 and effectively fixes SOFR at 2.96%. The other agreement terminates on October 1, 2030 and effectively fixes SOFR at 2.91%. Because the interest-rate swaps effectively fix SOFR for $100.0 million of variable-rate debt, unless otherwise indicated, $100.0 million of variable-rate debt is being treated as fixed-rate debt for disclosure purposes beginning September 30, 2022. The Company has designated the agreements as cash flow hedges for accounting purposes.

As of September 30, 2023, the fair value of the interest-rate swaps totaled approximately $6.6 million, which is included in Other assets in the Consolidated Balance Sheets. The change in value during the period is reflected in Other Comprehensive Income in the Consolidated Statements of Comprehensive Income.

On March 8, 2023, the Company closed on a 10-year, non-recourse, $15.3 million mortgage secured by BJ’s Wholesale Club in Alexandria, Virginia. The loan matures in 2033, bears interest at a fixed-rate of 6.07%, requires monthly principal and interest payments of $99,200 based on a 25-year amortization schedule and requires a final principal payment of $11.7 million at maturity. Proceeds were used to repay the remaining balance of approximately $9.3 million on the existing mortgage and reduce the outstanding balance of the Credit Facility.

During the second quarter of 2023, the Company commenced drawing on its $145.0 million construction-to-permanent loan related to the residential and retail portions of Phase I of the Twinbrook Quarter development project. As of September 30, 2023, the balance on the loan was $50.8 million, net of unamortized deferred debt costs.

Saul Centers and certain consolidated subsidiaries of the Operating Partnership have guaranteed the payment obligations of the Operating Partnership under the Credit Facility. The Operating Partnership is the guarantor of (a) the construction-to-permanent loan secured by Twinbrook Quarter Phase I (approximately $53.3 million at September 30, 2023), (b) the mortgage secured by Kentlands Place, Kentlands Square I and Kentlands Pad (totaling $27.5 million at September 30, 2023), (c) a portion of the mortgage secured by The Waycroft (approximately $23.6 million of the $150.0 million outstanding balance at September 30, 2023), (d) the mortgage secured by Ashbrook Marketplace (approximately $20.4 million at September 30, 2023)

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Notes to Consolidated Financial Statements (Unaudited)

and (e) a portion of the mortgage secured by Avenel Business Park (approximately $6.3 million of the $21.9 million outstanding balance at September 30, 2023). All other notes payable are non-recourse.

The principal amount of the Company’s outstanding debt totaled approximately $1.36 billion at September 30, 2023, of which approximately $1.11 billion was fixed-rate debt and approximately $251.0 million was unhedged variable rate debt outstanding under the Credit Facility. The carrying amount of the properties collateralizing the notes payable totaled approximately $1.36 billion as of September 30, 2023.

At December 31, 2022, the principal amount of the Company’s outstanding debt totaled approximately $1.24 billion, of which $1.07 billion was fixed rate debt and $164.0 million was unhedged variable rate debt outstanding under the Credit Facility. The carrying amount of the properties collateralizing the notes payable totaled approximately $1.04 billion as of December 31, 2022.

At September 30, 2023, the future principal payments of debt, including scheduled maturities and amortization, for years ending December 31, were as follows:

(In thousands)	Principal Payments
October 1 through December 31, 2023	$	8,424
2024	83,981
2025	303,085		(a)
2026	162,468
2027	123,792		(b)
2028	41,863
Thereafter	636,763
Principal amount	1,360,376
Unamortized deferred debt costs	17,064
Net	$	1,343,312

(a) Includes $251.0 million outstanding under the Credit Facility.

(b) Includes $100.0 million outstanding under the Credit Facility.

Deferred debt costs consist of fees and costs incurred to obtain long-term financing, construction financing and the Credit Facility. 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 totaling $17.1 million and $15.8 million, net of accumulated amortization of $9.7 million and $7.9 million, at September 30, 2023 and December 31, 2022, respectively, are reflected as a reduction of the related debt in the Consolidated Balance Sheets. At September 30, 2023, deferred debt costs totaling $2.9 million related to the Hampden House construction-to-permanent loan, which has no outstanding balance, are included in Other Assets in the Consolidated Balance Sheet. At December 31, 2022, deferred debt costs totaling $2.7 million and $3.0 million, related to the Twinbrook Quarter and Hampden House construction-to-permanent loans, respectively, which had no outstanding balance, were included in Other Assets in the Consolidated Balance Sheet.

Interest expense, net and amortization of deferred debt costs for the three and nine months ended September 30, 2023 and 2022, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Interest incurred	$	17,072	$	13,627	$	48,852	$	38,408
Amortization of deferred debt costs	564		486		1,687		1,428
Capitalized interest	(5,154)		(3,002)		(13,768)		(7,663)
Interest expense	12,482		11,111		36,771		32,173
Less: Interest income	63		8		253		11
Interest expense, net and amortization of deferred debt costs	$	12,419	$	11,103	$	36,518	$	32,162

 

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Notes to Consolidated Financial Statements (Unaudited)

6.    Equity

The consolidated statements of operations for the nine months ended September 30, 2023 and 2022, reflect noncontrolling interests of $12.1 million and $11.7 million, respectively, representing income attributable to limited partnership units not held by Saul Centers.

At September 30, 2023, the Company had outstanding 3.0 million depositary shares, each representing 1/100th of a share of 6.125% Series D Cumulative Redeemable Preferred Stock (the “Series D Stock”). The depositary shares are redeemable at the Company's option, in whole or in part, at the $25.00 liquidation preference, plus accrued but unpaid dividends to but not including the redemption date. The depositary shares pay an annual dividend of $1.53125 per share, equivalent to 6.125% of the $25.00 liquidation preference. The Series D 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 in 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.

At September 30, 2023, the Company had outstanding 4.4 million depositary shares, each representing 1/100th of a share of 6.000% Series E Cumulative Redeemable Preferred Stock (the “Series E Stock”). The depositary shares may be redeemed at the Company’s option, in whole or in part, on or after September 17, 2024, at the $25.00 liquidation preference, plus accrued but unpaid dividends to but not including the redemption date. The depositary shares pay an annual dividend of $1.50 per share, equivalent to 6.000% of the $25.00 liquidation preference. The Series E 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 in 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.

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 diluted, 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.

	Average Shares/Options Outstanding
	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2023	2022	2023	2022
Weighted average common stock outstanding-Basic	24,059	23,997	24,043	23,948
Effect of dilutive options	3	2	1	11
Weighted average common stock outstanding-Diluted	24,062	23,999	24,044	23,959
Non-dilutive options	1,654	1,542	1,690	1,328
Years non-dilutive options were issued	2014 through 2022	2014 through 2020 and 2022	2013 through 2022	2014 through 2020 and 2022

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Notes to Consolidated Financial Statements (Unaudited)

7.     Related Party Transactions

The Chairman and Chief Executive Officer, the President and Chief Operating Officer, the Executive Vice President-Chief Legal and Administrative Officer and the Senior Vice President-Chief Accounting Officer and Treasurer 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 and Treasurer 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 6% of the employee’s cash compensation, subject to certain limits, were $332,100 and $318,500 for the nine months ended September 30, 2023 and 2022, respectively. All amounts contributed 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 ended September 30, 2023 and 2022, the Company credited to employee accounts $225,500 and $211,900, respectively, which is the sum of accrued earnings and up to three times the amount deferred by employees and is included in general and administrative expense. All amounts contributed by employees and credited by the Company are fully vested. The cumulative unfunded liability under this plan was $3.1 million and $3.0 million, at September 30, 2023 and December 31, 2022, respectively, and is included in accounts payable, accrued expenses and other liabilities in the Consolidated Balance Sheets.

The Company and the Saul Organization are parties to a shared services agreement (the “Agreement”) 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. Net billings by the Saul Organization for the Company’s share of these ancillary costs and expenses for the nine months ended September 30, 2023 and 2022, which included rental expense for the Company’s headquarters sublease, totaled approximately $8.0 million and $7.0 million, respectively. The amounts are generally expensed as incurred and are primarily reported as general and administrative expenses in the Consolidated Statements of Operations. As of September 30, 2023 and December 31, 2022, accounts payable, accrued expenses and other liabilities included approximately $0.9 million and $1.2 million, respectively, representing amounts due to the Saul Organization for the Company’s share of these ancillary costs and expenses.

The Company subleases its corporate headquarters space from a member of the Saul Organization. The sublease commenced in March 2002, expires in 2027, 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 $651,500 and $609,400 for the nine months ended September 30, 2023 and 2022, respectively, and is included in general and administrative expense.

The B. F. Saul Insurance Agency, 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 $417,000 and $262,000 for the nine months ended September 30, 2023 and 2022, respectively.

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Notes to Consolidated Financial Statements (Unaudited)

8.     Stock-based Employee Compensation, Stock Option Plans, and Deferred Compensation Plan for Directors

In 2004, the Company established a stock incentive plan (the “Plan”), as amended. Under the Plan, options are 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 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 the grant 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 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, 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 expense in general and administrative expenses.

Pursuant to the Plan, the Compensation Committee established a Deferred Compensation Plan for Directors for the benefit of the Company’s directors and their beneficiaries, which replaced a previous Deferred Compensation and Stock Plan for Directors. Annually, directors are given the ability to make an election to defer all or part of their fees and have the option to have their 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 a director elects to have their 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. During the nine months ended September 30, 2023, 7,797 shares were credited to director’s deferred fee accounts and 8,225 shares were issued. As of September 30, 2023, the director's deferred fee accounts comprise 120,396 shares.

Effective May 12, 2023, the Company granted 253,500 options to its directors and certain officers. The following table summarizes the assumptions used in the valuation of the 2023 and 2022 option grants.

	Directors				Officers
Grant date	May 12, 2023		May 13, 2022		May 12, 2023		May 13, 2022
Exercise price per share	$	33.79	$	47.90	$	33.79	$	47.90
Fair value per option	$	6.53	$	8.34	$	6.06	$	7.66
Volatility	0.319		0.300		0.288		0.271
Expected life (years)	5.0		5.0		7.0		7.0
Assumed yield	4.94%		4.90%		4.96%		4.93%
Risk-free rate	3.45%		2.89%		3.45%		2.95%

During the nine months ended September 30, 2023, stock option expense totaling $1.0 million was included in general and administrative expense in the Consolidated Statement of Operations. As of September 30, 2023, the estimated future expense related to unvested stock options was $2.5 million.

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Notes to Consolidated Financial Statements (Unaudited)

The table below summarizes the option activity for the nine months ended September 30, 2023:

	Number of Shares	Weighted Average Exercise Price per share		Aggregate Intrinsic Value
Outstanding at January 1	1,768,375	$	51.28	$	—
Granted	253,500	33.79		375,180
Exercised	—	—		—
Expired/Forfeited	(114,375)	49.67		—
Outstanding at September 30	1,907,500	49.05		375,180
Exercisable at September 30	1,229,875	52.28		44,400

The intrinsic value of stock options outstanding or exercisable 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. There were no options exercised during the nine months ended September 30, 2023. The intrinsic value of stock options exercised during the nine months ended September 30, 2022 was calculated by using the transaction price on the date of exercise and totaled $179,217. At September 29, 2023, the final trading day of the 2023 third quarter, the closing share price of $35.27 was lower than the exercise price of 1.7 million outstanding options granted in 2014 through 2022. The weighted average remaining contractual life of the Company’s outstanding and exercisable options is 5.7 years and 4.4 years, respectively.

9.     Fair Value of Financial Instruments

The carrying amount 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 2 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, would be approximately $885.8 million and $919.2 million, respectively, compared to the principal balance of $1.11 billion and $1.07 billion at September 30, 2023 and December 31, 2022, respectively. A change in any of the significant inputs may lead to a change in the Company’s fair value measurement of its debt.

10.     Derivatives and Hedging Activities

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses floating-to-fixed interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount

The change in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Such derivatives were used to hedge the variable cash flows associated with certain variable-rate debt.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve months, the Company estimates that approximately $2.3 million will be reclassified from other comprehensive income and reflected as a decrease to interest expense.

The Company carries its interest-rate swaps 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 that contain inputs that are derived from observable market data. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measure of volatility, and correlations of such inputs. As of September 30, 2023, the fair value of the interest-rate swaps was approximately $6.6 million and is included in Other assets in the Consolidated Balance Sheets. The change in value during the period is reflected in Other Comprehensive Income in the Consolidated Statements of Comprehensive Income.

-20-

Notes to Consolidated Financial Statements (Unaudited)

The table below details the fair value and location of the interest rate swaps as of September 30, 2023 and December 31, 2022.

(In thousands)	Fair Values of Derivative Instruments
	September 30, 2023			December 31, 2022
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swaps	Other Assets	$	6,560	Other Assets	$	3,962

The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2023 and 2022.

(In thousands)	The Effect of Hedge Accounting on Other Comprehensive Income (OCI)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Amount of gain (loss) recognized in OCI	$	2,804	$	4,256	$	4,106	$	4,256
Location of gain (loss) reclassified from OCI into income	Interest expense, net and amortization of deferred debt costs		N/A		Interest expense, net and amortization of deferred debt costs		N/A
Amount of (gain) loss reclassified from OCI into income	$	(593)	$	—	$	(1,508)	$	—

11.    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.

-21-

Notes to Consolidated Financial Statements (Unaudited)

12.    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 variety 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 2023 presentation.

Financial Information By Segment
(In thousands)	Shopping Centers		Mixed-Use Properties		Corporate and Other		Consolidated Totals
Three Months Ended September 30, 2023
Real estate rental operations:
Revenue	$	44,014	$	19,752	$	—	$	63,766
Expenses	(9,945)		(7,416)		—		(17,361)
Income from real estate	34,069		12,336		—		46,405
Interest expense, net and amortization of deferred debt costs	—		—		(12,419)		(12,419)
Depreciation and amortization of deferred leasing costs	(7,156)		(4,940)		—		(12,096)
General and administrative	—		—		(5,179)		(5,179)
Net income (loss)	$	26,913	$	7,396	$	(17,598)	$	16,711
Capital investment	$	3,952	$	43,949	$	—	$	47,901
Total assets	$	920,442	$	1,016,267	$	24,214	$	1,960,923
Three Months Ended September 30, 2022
Real estate rental operations:
Revenue	$	42,478	$	18,609	$	—	$	61,087
Expenses	(8,826)		(7,247)		—		(16,073)
Income from real estate	33,652		11,362		—		45,014
Interest expense, net and amortization of deferred debt costs	—		—		(11,103)		(11,103)
Depreciation and amortization of deferred leasing costs	(7,073)		(5,122)		—		(12,195)
General and administrative	—		—		(5,555)		(5,555)
Loss on early extinguishment of debt	—		—		(648)		(648)
Net income (loss)	$	26,579	$	6,240	$	(17,306)	$	15,513
Capital investment	$	2,280	$	30,315	$	—	$	32,595
Total assets	$	936,285	$	855,797	$	17,936	$	1,810,018

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Notes to Consolidated Financial Statements (Unaudited)

Financial Information By Segment
(In thousands)	Shopping Centers		Mixed-Use Properties		Corporate and Other		Consolidated Totals
Nine Months Ended September 30, 2023
Real estate rental operations:
Revenue	$	132,214	$	58,310	$	—	$	190,524
Expenses	(28,667)		(21,424)		—		(50,091)
Income from real estate	103,547		36,886		—		140,433
Interest expense, net and amortization of deferred debt costs	—		—		(36,518)		(36,518)
Depreciation and amortization of deferred leasing costs	(21,350)		(14,877)		—		(36,227)
General and administrative	—		—		(16,125)		(16,125)
Net income (loss)	$	82,197	$	22,009	$	(52,643)	$	51,563
Capital investment	$	9,840	$	137,427	$	—	$	147,267
Total assets	$	920,442	$	1,016,267	$	24,214	$	1,960,923
Nine Months Ended September 30, 2022
Real estate rental operations:
Revenue	$	128,615	$	54,909	$	—	$	183,524
Expenses	(27,102)		(20,724)		—		(47,826)
Income from real estate	101,513		34,185		—		135,698
Interest expense, net and amortization of deferred debt costs	—		—		(32,162)		(32,162)
Depreciation and amortization of deferred leasing costs	(21,300)		(15,599)		—		(36,899)
General and administrative	—		—		(15,988)		(15,988)
Loss on early extinguishment of debt	—		—		(648)		(648)
Net income (loss)	$	80,213	$	18,586	$	(48,798)	$	50,001
Capital investment	$	6,239	$	78,270	$	—	$	84,509
Total assets	$	936,285	$	855,797	$	17,936	$	1,810,018

13. Subsequent Events

The Company has reviewed all events and transactions for the period subsequent to September 30, 2023, and determined there are no subsequent events required to be disclosed.

-23-

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, 2022. 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

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “plans,” “intends,” “estimates,” “anticipates,” “expects,” “believes” or similar expressions in this Form 10-Q. Although management believes that the expectations reflected in such forward-looking statements are based upon present expectations and reasonable assumptions, our actual results could differ materially from those set forth in the forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements:

•challenging domestic and global credit markets and their effect on discretionary spending;

•the ability of our tenants to pay rent;

•our reliance on shopping center “anchor” tenants and other significant tenants;

•our substantial relationships with members of the Saul Organization;

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

•our development activities;

•our access to additional capital;

•our ability to successfully complete additional acquisitions, developments or redevelopments, or if they are completed, whether such acquisitions, developments or redevelopments 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 our status as a REIT for federal income tax purposes, such as the existence of complex regulations relating to our status as a REIT, the effect of future changes to REIT requirements as a result of new legislation and the adverse consequences of the failure to qualify as a REIT; and

•an epidemic or pandemic (such as the outbreak and worldwide spread of COVID-19), and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may (as with COVID-19) precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period.

Additional information related to these risks and uncertainties are included in “Risk Factors” (Part I, Item 1A of this Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2022), “Quantitative and Qualitative Disclosures about Market Risk” (Part I, Item 3 of this Form 10-Q and Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2022), and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” (Part I, Item 2 of this Form 10-Q).

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Impact of COVID-19

In February 2023, the Department of Health and Human Services declared that the federal Public Health Emergency for COVID-19 would end on May 11, 2023. On April 10, 2023, President Biden signed legislation ending the COVID-19 National Emergency. If the residual effects of COVID-19 result in deterioration of economic and market conditions, including supply chain issues, or if the Company’s expected holding period for assets changes, subsequent tests for impairment could result in impairment charges in the future. The Company can provide no assurance that material impairment charges with respect to the Company’s investment properties will not occur during future periods. As of September 30, 2023, we have not identified any impairment triggering events, including the impact of COVID-19 and corresponding tenant requests for rent relief. Therefore, under applicable GAAP guidance, no impairment charges have been recorded. However, we have yet to see the long-term effects of COVID-19 and the extent to which it may impact our tenants in the future. Indications of a tenant’s inability to continue as a going concern, changes in our view or strategy relative to a tenant’s business or industry as a result of COVID-19, or changes in our long-term hold strategies, could be indicative of an impairment triggering event. Accordingly, the Company will continue to monitor circumstances and events in future periods to determine whether impairment charges are warranted.

As of October 31, 2023, the Company had collected 98.8% of contractual base rent and operating expense and real estate tax recoveries due during the 2023 third quarter.

The Company is and will continue to be actively engaged in collection efforts related to uncollected rent, however, the Company can provide no assurance that such efforts or our efforts in future periods will be successful. Management considers reserves established as of September 30, 2023, against such potential losses to be reasonable and adequate. Rent collections during the third quarter and rent relief requests to-date may not be indicative of collections or requests in any future period.

Deferral agreements executed with certain tenants as a result of business disruption that occurred at the onset of the COVID-19 pandemic generally deferred 30 to 90 days of rent, operating expense and real estate tax recovery payments until a later time in the lease term with repayment typically occurring over a 12-month period generally commencing in 2021. We continued to accrue rental revenue during the deferral period.

The following is a summary of the Company’s executed rent deferral agreements and repayments as of October 31, 2023, with the exception of amounts due, which are as of September 30, 2023.

Rent Deferral Agreements
(Dollars in thousands)
										Collection Percentage (based on payments currently due)
Total Deferred Rent		Amount Due		Amount Written Off, Net		Amount Unpaid		Amount Collected
$	9,366	$	8,941	$	309	$	67	$	8,565	96	%

The extent of the effects of COVID-19 on the Company’s business, results of operations, cash flows, and growth prospects is uncertain and will ultimately depend on future developments, none of which can be predicted with any certainty. See Item 1A. Risk Factors.

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, 2023.

Overview

The Company’s primary strategy is to continue to focus on diversification of its assets through development of transit-oriented, residential mixed-use projects and expansion of its grocery-anchored shopping centers in the Washington, D.C. metropolitan area. The Company’s operating strategy also includes improvement of the operating performance of its assets, internal growth of its Shopping Centers through the addition of pad sites, and supplementing its development pipeline with selective redevelopment and renovations of its core Shopping Centers. The Company has a pipeline of entitled sites in its portfolio, some of which are currently shopping center operating properties, for development of up to 3,700 apartment units and 975,000 square feet of retail and office space. All such sites are located adjacent to Washington Metropolitan Area Transit Authority red line Metro stations in Montgomery County, Maryland.

The Company intends to selectively add free-standing pad site buildings within its Shopping Center portfolio and replace underperforming tenants with tenants that generate strong traffic, including anchor stores such as supermarkets and drug stores. The Company has executed leases or leases are under negotiation for five future pad sites.

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Management believes it will continue to be challenging to identify acquisition opportunities for investment in existing and new shopping center and mixed-use properties into the near future. It is management’s view that several of the sub-markets in which the Company operates have, or are expected to have in the future, attractive supply/demand characteristics. The Company will continue to evaluate acquisition, development and redevelopment as integral parts of its overall business plan.

Prior to the COVID-19 pandemic, economic conditions within the local Washington, D.C. metropolitan area were relatively stable. Issues facing the Federal government relating to taxation, spending and interest rate policy will likely continue to impact the office, retail and residential real estate markets over the coming years. Although it is management’s present intention to concentrate future acquisition and development activities on transit-centric, residential mixed-use properties and grocery-anchored shopping centers in the Washington, D.C./Baltimore metropolitan area, the Company may, in the future, also acquire other types of real estate in other areas of the country as opportunities present themselves. The Company plans to continue to diversify in terms of property types, locations, size and market, and it does not set any limit on the amount or percentage of assets that may be invested in any one property or any one geographic area.

The majority of the Company’s property operating income is produced by our Shopping Centers, we continually monitor the implications of government policy changes, as well as shifts in consumer demand between on-line and in-store shopping, on future shopping center construction and retailer store expansion or closure plans. Based on our observations, we continue to adapt our marketing and merchandising strategies in ways to maximize our future performance.  The Company’s Commercial leasing percentage, on a same property basis, which excludes the impact of properties not in operation for the entirety of the comparable periods, increased to 94.2% as of September 30, 2023, from 93.0% as of September 30, 2022.

The Company maintains a ratio of total debt to total estimated asset market value of under 50%, which allows the Company to obtain additional secured borrowings if necessary. As of September 30, 2023, including the $100.0 million hedged variable-rate debt, total fixed-rate debt with staggered maturities from 2024 to 2041 represented approximately 81.5% of the Company’s notes payable, thus mitigating refinancing risk. The Company’s unhedged variable-rate debt consists of $251.0 million outstanding under the Credit Facility. Including fixed and variable rate debt, the Company’s outstanding debt totaled approximately $1.36 billion with a weighted average remaining term of 7.4 years as of September 30, 2023. As of September 30, 2023, the Company has availability of approximately $110.5 million under its Credit Facility.

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 (“Commercial”), which includes all properties except for the residential properties (“Residential”), which includes apartments within The Waycroft, Clarendon Center and Park Van Ness properties. For purposes of this table, annualized effective rent is annualized base rent minus amortized tenant improvements and amortized leasing commissions.

	Average Commercial Rents per Square Foot
	Nine Months Ended September 30,				2022 to 2023 Change
	2023		2022		Amount		Percent
Base rent	$	20.75	$	20.52	$	0.23	1.12	%
Effective rent	$	19.20	$	18.91	$	0.29	1.53	%

Recent Developments

The Company is developing Twinbrook Quarter Phase I (“Phase I”) located in Rockville, Maryland. Phase I includes an 80,000 square foot Wegmans, approximately 25,000 square feet of small shop space, 450 apartments and a 230,000 square foot office building. The office tower portion of Phase I is not being constructed at this time. In connection with the development of the residential and retail portions of Phase I, we must also invest in infrastructure and other items that will support both Phase I and other portions of the development of Twinbrook Quarter. Excluding capitalized interest, the total cost of the project is expected to be approximately $331.5 million, of which $271.4 million is related to the development of the residential and retail portions of Phase I and $60.1 million is related to infrastructure and other items. Of the expected $331.5 million total cost, $241.3 million has been invested to date. A portion of the cost of the project is being financed by a $145.0 million construction-to-permanent loan. During the second quarter of 2023, the Company commenced drawing on the loan and, as of September 30, 2023, the balance on the loan was $50.8 million, net of unamortized deferred debt costs. In addition to the structure, the masonry façade of the residential building is substantially complete and work continues on the interior courtyard. Apartment unit construction is in process on levels two through 12. Initial delivery of Phase I is anticipated in late 2024. The development potential of all phases of the entire 18.4 acre Twinbrook Quarter site totals 1,865 residential units, 473,000 square feet of retail space, and 431,000 square feet of office space.

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The Company is developing Hampden House, a project located in downtown Bethesda, Maryland that will include up to 366 apartment units and 10,100 square feet of retail space. Of the expected $246.4 million total cost, $113.1 million has been invested to date. A portion of the cost of the project will be financed by a $133.0 million construction-to-permanent loan. The Company has not yet commenced drawing on this loan. Above grade construction of the structure is on-going and framing and pouring of concrete is being performed at the 10th level above ground. Construction is expected to be completed during 2025.

Critical Accounting Policies

The Company’s financial statements are prepared in accordance with 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.

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 amount of the real estate investment property exceeds its estimated fair value. The Company considers both quantitative and qualitative factors when identifying impairment indicators including recurring operating losses, significant decreases in occupancy, and significant adverse changes in market conditions, 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 amount 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 amount 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.

Accounts Receivable, Accrued Income, and Allowance for Doubtful Accounts

Accounts receivable primarily represent amounts currently due from tenants in accordance with the terms of their respective leases. Individual leases are assessed for collectability and, upon the determination that the collection of rents is not probable, accrued rent and accounts receivable are charged off, and the charge off is reflected as an adjustment to rental revenue. Revenue from leases where collection is not probable is recorded on a cash basis until collectability is determined to be probable. We also assess whether operating lease receivables, at the portfolio level, are appropriately valued based upon an analysis of balances outstanding, effects of tenant bankruptcies, historical levels of bad debt and current economic trends. Additionally, because of the uncertainties related to the impact of the COVID-19 pandemic, our assessment also takes into consideration the types of business conducted by tenants and current discussions with the tenants, as well as recent rent collection experience. Evaluating and estimating uncollectable lease payments and related receivables requires a significant amount of judgment by management and is based on the best information available to management at the time of evaluation. Actual results could differ from these estimates.

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. Upon determination 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.

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Results of Operations

Three months ended September 30, 2023 (the “2023 Quarter”) compared to the three months ended September 30, 2022 (the “2022 Quarter”)

Net income for the 2023 Quarter increased to $16.7 million from $15.5 million for the 2022 Quarter. Significant changes in revenue and expenses are discussed below.

Revenue 

	Three Months Ended September 30,				2022 to 2023 Change
(Dollars in thousands)	2023		2022		Amount		Percent
Base rent	$	52,141	$	50,233	$	1,908	3.8	%
Expense recoveries	9,738		8,930		808		9.0	%
Percentage rent	233		265		(32)		(12.1)	%
Other property revenue	443		454		(11)		(2.4)	%
Credit (losses) recoveries on operating lease receivables, net	(186)		69		(255)		NM
Rental revenue	62,369		59,951		2,418		4.0	%
Other revenue	1,397		1,136		261		23.0	%
Total revenue	$	63,766	$	61,087	$	2,679	4.4	%

NM = Not Meaningful

Total revenue increased 4.4% in the 2023 Quarter compared to the 2022 Quarter, as described below.

Base rent. The $1.9 million increase in base rent in the 2023 Quarter compared to the 2022 Quarter is primarily attributable to (a) higher commercial base rent of $1.2 million and (b) higher residential base rent of $0.7 million.

Expense recoveries. The $0.8 million increase in expense recoveries in the 2023 Quarter compared to the 2022 Quarter is primarily attributable to an increase in recoverable property operating expenses.

Other revenue. The $0.3 million increase in other revenue in the 2023 Quarter compared to the 2022 Quarter is primarily attributable to higher parking income.

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Expenses

	Three Months Ended September 30,				2022 to 2023 Change
(Dollars in thousands)	2023		2022		Amount		Percent
Property operating expenses	$	9,720	$	8,995	$	725	8.1	%
Real estate taxes	7,641		7,078		563		8.0	%
Interest expense, net and amortization of deferred debt costs	12,419		11,103		1,316		11.9	%
Depreciation and amortization of deferred leasing costs	12,096		12,195		(99)		(0.8)	%
General and administrative	5,179		5,555		(376)		(6.8)	%
Loss on early extinguishment of debt	—		648		(648)		(100.0)	%
Total expenses	$	47,055	$	45,574	$	1,481	3.2	%

Total expenses increased 3.2% in the 2023 Quarter compared to the 2022 Quarter, as described below.

Property operating expenses. The $0.7 million increase in property operating expenses in the 2023 Quarter compared to the 2022 Quarter is primarily attributable to (a) higher repairs and maintenance expenses across the portfolio of $0.5 million, (b) higher insurance costs across the portfolio of $0.1 million, and (c) higher payroll costs for property employees of $0.1 million.

Real estate taxes. The $0.6 million increase in real estate taxes in the 2023 Quarter compared to the 2022 Quarter is primarily attributable to higher assessed values across the portfolio.

Interest expense, net and amortization of deferred debt costs. The $1.3 million increase in interest expense, net and amortization of deferred debt costs in the 2023 Quarter compared to the 2022 Quarter is primarily attributable to (a) higher interest incurred as a result of higher weighted average interest rates of $1.8 million and (b) higher interest incurred as a result of higher average outstanding debt of $1.5 million, partially offset by (c) higher capitalization of interest of $2.2 million related to Twinbrook Quarter Phase I and Hampden House.

General and Administrative. General and administrative expenses decreased 6.8% in the 2023 Quarter compared to the 2022 Quarter primarily due to fees paid in 2022 to third-parties related to the early refinance of loans at Beacon Center and Seven Corners Center totaling $0.5 million, which were accounted for as loan modifications.

Loss on early extinguishment of debt. Loss on early extinguishment of debt decreased by $0.6 million in the 2023 Quarter compared to the 2022 Quarter due to the early refinance of loans at Great Falls Center and Village Center, which were accounted for as loan extinguishments.

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Nine months ended September 30, 2023 (the “2023 Period”) compared to the nine months ended September 30, 2022 (the “2022 Period”)

Net income for the 2023 Period increased to $51.6 million from $50.0 million for the 2022 Period. Significant changes in revenue and expenses are discussed below.

Revenue 

	Nine Months Ended   September 30,				2022 to 2023 Change
(Dollars in thousands)	2023		2022		Amount		Percent
Base rent	$	155,750	$	150,070	$	5,680	3.8	%
Expense recoveries	27,652		26,723		929		3.5	%
Percentage rent	1,544		1,489		55		3.7	%
Other property revenue	1,413		1,463		(50)		(3.4)	%
Credit recoveries (losses) on operating lease receivables, net	(160)		20		(180)		NM
Rental revenue	186,199		179,765		6,434		3.6	%
Other revenue	4,325		3,759		566		15.1	%
Total revenue	$	190,524	$	183,524	$	7,000	3.8	%

NM - Not Meaningful

Total revenue increased 3.8% in the 2023 Period compared to the 2022 Period, as described below.

Base Rent. The $5.7 million increase in base rent in the 2023 Period compared to the 2022 Period is primarily attributable to (a) higher commercial base rent of $3.2 million and (b) higher residential base rent of $2.5 million.

Expense recoveries. The $0.9 million increase in expense recoveries in the 2023 Period compared to the 2022 Period is primarily attributable to an increase in recoverable property operating expenses.

Other revenue. The $0.6 million increase in other revenue in the 2023 Period compared to the 2022 Period is primarily attributable to higher lease termination fees and higher parking income.

Expenses

	Nine Months Ended   September 30,				2022 to 2023 Change
(Dollars in thousands)	2023		2022		Amount		Percent
Property operating expenses	$	27,502	$	26,174	$	1,328	5.1	%
Real estate taxes	22,589		21,652		937		4.3	%
Interest expense, net and amortization of deferred debt costs	36,518		32,162		4,356		13.5	%
Depreciation and amortization of deferred leasing costs	36,227		36,899		(672)		(1.8)	%
General and administrative	16,125		15,988		137		0.9	%
Loss on early extinguishment of debt	—		648		(648)		(100.0)	%
Total expenses	$	138,961	$	133,523	$	5,438	4.1	%

Total expenses increased 4.1% in the 2023 Period compared to the 2022 Period, as described below.

Property Operating Expenses. Property operating expenses increased 5.1% in the 2023 Period compared to the 2022 Period primarily due to (a) higher insurance costs throughout the portfolio of $0.4 million, (b) higher payroll costs for property employees of $0.3 million, (c) higher repairs and maintenance expenses across the portfolio of $0.2 million and (d) higher utility expenses across the portfolio of $0.2 million.

-30-

Real estate taxes. The $0.9 million increase in real estate taxes in the 2023 Period compared to the 2022 Period is primarily attributable to higher assessed values across the portfolio.

Interest Expense, net and Amortization of Deferred Debt Costs. Interest expense, net and amortization of deferred debt costs increased 13.5% in the 2023 Period compared to the 2022 Period primarily due to (a) higher interest incurred as a result of higher weighted average interest rates of $6.1 million and (b) higher interest incurred as a result of higher average outstanding debt of $3.8 million, partially offset by (c) higher capitalized interest of $6.1 million related to Twinbrook Quarter Phase I and Hampden House.

Depreciation and amortization of deferred leasing costs. Depreciation and amortization of deferred leasing costs decreased 1.8% in the 2023 Period compared to the 2022 Period primarily due to lower depreciation expense of $0.6 million.

General and Administrative. General and administrative expenses increased 0.9% in the 2023 Period compared to the 2022 Period primarily due to increased salaries and benefits of $0.8 million, partially offset by fees paid in 2022 to third-parties related to the early refinance of loans at Beacon Center and Seven Corners Center totaling $0.5 million, which were accounted for as loan modifications.

Loss on early extinguishment of debt. Loss on early extinguishment of debt decreased by $0.6 million in the 2023 Period compared to the 2022 Period due to the early refinance of loans at Great Falls Center and Village Center, which were accounted for as loan extinguishments.

Same property revenue and same property operating income

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

We define same property revenue as total revenue minus the 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 (a) interest expense, net and amortization of deferred debt costs, (b) depreciation and amortization of deferred leasing costs, (c) general and administrative expenses, (d) change in fair value of derivatives, and (e) loss on the early extinguishment of debt minus (f) gains on property dispositions and (g) the operating income of properties that 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.

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 property revenue and property 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.

-31-

The tables below provide reconciliations of total property revenue and property operating income under GAAP to same property revenue and operating income for the indicated periods. No properties were excluded from same property results.

Same property revenue

(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total revenue	$	63,766	$	61,087	$	190,524	$	183,524
Less: Acquisitions, dispositions and development properties	—		—		—		—
Total same property revenue	$	63,766	$	61,087	$	190,524	$	183,524
Shopping Centers	$	44,014	$	42,478	$	132,214	$	128,615
Mixed-Use properties	19,752		18,609		58,310		54,909
Total same property revenue	$	63,766	$	61,087	$	190,524	$	183,524
Total Shopping Center revenue	$	44,014	$	42,478	$	132,214	$	128,615
Less: Shopping Center acquisitions, dispositions and development properties	—		—		—		—
Total same Shopping Center revenue	$	44,014	$	42,478	$	132,214	$	128,615
Total Mixed-Use property revenue	$	19,752	$	18,609	$	58,310	$	54,909
Less: Mixed-Use acquisitions, dispositions and development properties	—		—		—		—
Total same Mixed-Use revenue	$	19,752	$	18,609	$	58,310	$	54,909

The $2.7 million increase in same property revenue for the 2023 Quarter compared to the 2022 Quarter was primarily due to (a) higher commercial base rent of $1.3 million, (b) higher expense recoveries of $0.8 million and (c) higher residential base rent of $0.7 million.

The $7.0 million increase in same property revenue for the 2023 Period compared to the 2022 Period was primarily due to (a) higher commercial base rent of $3.3 million, (b) higher residential base rent of $2.5 million, (c) higher expense recoveries of $0.9 million and (d) higher lease termination fees of $0.3 million.

Mixed-Use same property revenue is composed of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023				2022
Office mixed-use properties (1)	$	9,805	$	9,489	$	28,806			$	28,381
Residential mixed-use properties (retail activity) (2)	1,173		1,017		3,461				2,948
Residential mixed-use properties (residential activity) (3)	8,774		8,103		26,043				23,580
Total Mixed-Use same property revenue	$	19,752	$	18,609	$	58,310	$	58,310	$	54,909

(1)Includes Avenel Business Park, Clarendon Center – North and South Blocks, 601 Pennsylvania Avenue and Washington Square

(2)Includes The Waycroft and Park Van Ness

(3)Includes Clarendon South Block, The Waycroft and Park Van Ness

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Same property operating income

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Net income	$	16,711	$	15,513	$	51,563	$	50,001
Add: Interest expense, net and amortization of deferred debt costs	12,419		11,103		36,518		32,162
Add: Depreciation and amortization of deferred leasing costs	12,096		12,195		36,227		36,899
Add: General and administrative	5,179		5,555		16,125		15,988
Add: Loss on early extinguishment of debt	—		648		—		648
Property operating income	46,405		45,014		140,433		135,698
Less: Acquisitions, dispositions and development properties	—		—		—		—
Total same property operating income	$	46,405	$	45,014	$	140,433	$	135,698
Shopping Centers	$	34,069	$	33,652	$	103,547	$	101,513
Mixed-Use properties	12,336		11,362		36,886		34,185
Total same property operating income	$	46,405	$	45,014	$	140,433	$	135,698
Shopping Center operating income	$	34,069	$	33,652	$	103,547	$	101,513
Less: Shopping Center acquisitions, dispositions and development properties	—		—		—		—
Total same Shopping Center operating income	$	34,069	$	33,652	$	103,547	$	101,513
Mixed-Use property operating income	$	12,336	$	11,362	$	36,886	$	34,185
Less: Mixed-Use acquisitions, dispositions and development properties	—		—		—		—
Total same Mixed-Use property operating income	$	12,336	$	11,362	$	36,886	$	34,185

Same property operating income increased $1.4 million, or 3.1%, for the 2023 Quarter compared to the 2022 Quarter.

Shopping Center same property operating income for the 2023 Quarter totaled $34.1 million, a $0.4 million increase from the 2022 Quarter. Shopping Center same property operating income increased primarily due to (a) higher base rent of $1.0 million, partially offset by (b) lower recovery income, net of expenses, of $0.5 million. Mixed-Use same property operating income totaled $12.3 million, a $1.0 million increase from the 2022 Quarter. Mixed-Use same property operating income increased primarily due to (a) higher residential base rent of $0.7 million and (b) higher parking income, net of expenses, of $0.2 million.

Same property operating income increased $4.7 million, or 3.5% for the 2023 Period, compared to the 2022 Period.

Shopping Center same property operating income for the 2023 Period increased $2.0 million, or 2.0%, compared to the 2022 Period, primarily due to (a) higher base rent of $3.2 million, partially offset by (b) lower recovery income, net of expenses, of $0.7 million and (c) lower lease termination fees of $0.2 million. Mixed-Use same property operating income increased $2.7 million, or 7.9%, primarily due to (a) higher residential base rent of $2.5 million and (b) higher lease termination fees of $0.5 million and (c) higher parking income, net of expenses, of $0.2 million, partially offset by (d) lower recovery income, net of expenses, of $0.7 million.

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Mixed-Use same property operating income is composed of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023				2022
Office mixed-use properties (1)	$	6,177	$	5,939	$	18,354			$	18,265
Residential mixed-use properties (retail activity) (2)	862		743		2,509				2,142
Residential mixed-use properties (residential activity) (3)	5,297		4,680		16,023				13,778
Total Mixed-Use same property operating income	$	12,336	$	11,362	$	36,886	$	36,886	$	34,185

(1)Includes Avenel Business Park, Clarendon Center – North and South Blocks, 601 Pennsylvania Avenue and Washington Square

(2)Includes The Waycroft and Park Van Ness

(3)Includes Clarendon South Block, The Waycroft and Park Van Ness

Liquidity and Capital Resources

Cash and cash equivalents totaled $6.6 million and $10.3 million at September 30, 2023 and 2022, respectively. The Company maintains cash balances at various financial institutions and, from time to time, those balances may exceed federally insured limits. The Company has not experienced any losses on such deposits and actively monitors its banking relationships to mitigate its exposure to significant credit risk on those deposits. The Company’s cash flow is affected by its operating, investing and financing activities, as described below.

	Nine Months Ended September 30,
(In thousands)	2023		2022
Net cash provided by operating activities	$	85,040	$	92,009
Net cash used in investing activities	(147,267)		(84,509)
Net cash provided by (used in) financing activities	55,534		(11,803)
Net decrease in cash and cash equivalents	$	(6,693)	$	(4,303)

Operating Activities

Net cash provided by operating activities represents cash received primarily from rental revenue, plus other revenue, less property operating expenses, leasing costs, normal recurring general and administrative expenses and interest payments on debt outstanding.

Investing Activities

Net cash used in investing activities includes property acquisitions, developments, redevelopments, tenant improvements and other property capital expenditures. The $62.8 million increase in cash used in investing activities is primarily due to (a) increased development expenditures of $56.4 million and (b) increased additions to real estate investments throughout the portfolio of $6.4 million.

Financing Activities

Net cash provided by (used in) financing activities represents (a) cash used to repay and curtail loans, redeem preferred stock and pay dividends and distributions to holders of common stock, preferred stock and limited partnership units minus (b) cash received from loan proceeds and issuance of common stock, preferred stock and limited partnership units. See note 5 to the consolidated financial statements for a discussion of financing activity.

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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.

The Company is developing Twinbrook Quarter Phase I (“Phase I”) located in Rockville, Maryland. Phase I includes an 80,000 square foot Wegmans, approximately 25,000 square feet of small shop space, 450 apartments and a 230,000 square foot office building. The office tower portion of Phase I is not being constructed at this time. In connection with the development of the residential and retail portions of Phase I, we must also invest in infrastructure and other items that will support both Phase I and other portions of the development of Twinbrook Quarter. Excluding capitalized interest, the total cost of the project is expected to be approximately $331.5 million, of which $271.4 million is related to the development of the residential and retail portions of Phase I and $60.1 million is related to infrastructure and other items. Of the expected $331.5 million total cost, $241.3 million has been invested to date. A portion of the cost of the project is being financed by a $145.0 million construction-to-permanent loan. During the second quarter of 2023, the Company commenced drawing on the loan and, as of September 30, 2023, the balance on the loan was $50.8 million, net of unamortized deferred debt costs. In addition to the structure, the masonry façade of the residential building is substantially complete and work continues on the interior courtyard. Apartment unit construction is in process on levels two through 12. Initial delivery of Phase I is anticipated in late 2024. The development potential of all phases of the entire 18.4 acre Twinbrook Quarter site totals 1,865 residential units, 473,000 square feet of retail space, and 431,000 square feet of office space.

The Company is developing Hampden House, a project located in downtown Bethesda, Maryland that will include up to 366 apartment units and 10,100 square feet of retail space. Of the expected $246.4 million total cost, $113.1 million has been invested to date. A portion of the cost of the project will be financed by a $133.0 million construction-to-permanent loan. The Company has not yet commenced drawing on this loan. Above grade construction of the structure is on-going and framing and pouring of concrete is being performed at the 10th level above ground. Construction is expected to be completed during 2025.

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 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 remainder of the year, developments, expansions or acquisitions (if any) are expected to be funded with available cash, bank borrowings from the Credit Facility, construction and permanent financing, proceeds from the operation of the Company’s Dividend Reinvestment Plan (“DRIP”) 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. The availability and terms of any such financing will depend upon market and other conditions.

Dividend Reinvestments

The Company has a DRIP that allows 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 38,006 and 126,213 shares pursuant to the DRIP at a weighted average discounted price of $37.74 and $49.39 per share, during the nine months ended September 30, 2023 and 2022, respectively. The Company did not issue any limited partnership units pursuant to the DRIP during the nine months ended September 30, 2023. The Company issued 26,659 limited partnership units pursuant to the DRIP at a weighted average price of $49.81 per unit during the nine months ended September 30, 2022. The Company also credited 5,499 and 4,046 shares to directors pursuant to the reinvestment of dividends specified by the Directors’ Deferred Compensation Plan at a weighted average discounted price of $37.72 and $49.81 per share, during the nine months ended September 30, 2023 and 2022, respectively.

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Capital Strategy and Financing Activity

As a general policy, the Company intends to maintain a ratio of its total debt to total estimated asset market 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, 2023.

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 estimated asset market value 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.

At September 30, 2023, the Company had a $525.0 million Credit Facility comprised of a $425.0 million revolving credit facility and a $100.0 million term loan. The revolving credit facility matures on August 29, 2025, and may be extended by the Company for one additional year, subject to satisfaction of certain conditions. The term loan matures on February 26, 2027. Interest accrues at a rate of SOFR plus 10 basis points plus an applicable spread, which is determined by certain leverage tests. As of September 30, 2023, the applicable spread for borrowings was 140 basis points related to the revolving credit facility and 135 basis points related to the term loan. Letters of credit may be issued under the Credit Facility. On September 30, 2023, based on the value of the Company’s unencumbered properties, approximately $110.5 million was available under the Credit Facility, $351.0 million was outstanding and approximately $185,000 was committed for letters of credit.

The Credit 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:

•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 1.4x on a trailing four-quarter basis (fixed charge coverage).

As of September 30, 2023, the Company was in compliance with all such covenants. See note 5 to the consolidated financial statements for a discussion of all financing activity.

On August 23, 2022, the Company entered into two floating-to-fixed interest rate swap agreements to manage the interest rate risk associated with $100.0 million of its variable-rate debt. The effective date of each swap agreement is October 3, 2022 and each has a $50.0 million notional amount. One agreement terminates on October 1, 2027 and effectively fixes SOFR at 2.96%. The other agreement terminates on October 1, 2030 and effectively fixes SOFR at 2.91%. Because the interest-rate swaps effectively fix SOFR for $100.0 million of variable-rate debt, unless otherwise indicated, $100.0 million of variable-rate debt is being treated as fixed-rate debt for disclosure purposes beginning September 30, 2022. The Company has designated the agreements as cash flow hedges for accounting purposes.

On March 8, 2023, the Company closed on a 10-year, non-recourse, $15.3 million mortgage secured by BJ’s Wholesale Club in Alexandria, Virginia. The loan matures in 2033, bears interest at a fixed-rate of 6.07%, requires monthly principal and interest payments of $99,200 based on a 25-year amortization schedule and requires a final principal payment of $11.7 million at maturity. Proceeds were used to repay the remaining balance of approximately $9.3 million on the existing mortgage and reduce the outstanding balance of the Credit Facility.

During the second quarter of 2023, the Company commenced drawing on its $145.0 million construction-to-permanent loan related to the residential and retail portions of Phase I of the Twinbrook Quarter development project. As of September 30, 2023, the balance on the loan was $50.8 million, net of unamortized deferred debt costs.

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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.

Funds From Operations

Funds From Operations (FFO)1 available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) for the 2023 Quarter totaled $26.0 million, an increase of 4.4% compared to the 2022 Quarter. FFO available to common stockholders and noncontrolling interests increased primarily due to (a) higher commercial base rent of $1.3 million, (b) higher residential base rent of $0.7 million, (c) lower loss on early extinguishment of debt of $0.6 million and (d) lower general and administrative costs of $0.4 million, partially offset by (e) higher interest expense, net and amortization of deferred debt costs of $1.3 million and (f) lower recovery income, net of expenses, of $0.5 million.

FFO available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) increased to $79.4 million, or $2.38 and $2.33 per basic and diluted share, respectively, in the 2023 Period from $78.5 million, or $2.36 and $2.31 per basic and diluted share, respectively, in the 2022 Period. FFO available to common stockholders and noncontrolling interests increased primarily due to (a) higher commercial base rent of $3.3 million, (b) higher residential base rent of $2.5 million, (c) lower loss on early extinguishment of debt of $0.6 million, partially offset by (d) higher interest expense, net and amortization of deferred debt costs of $4.4 million and (e) lower recovery income, net of expenses, of $1.3 million.

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)	2023		2022		2023		2022
Net income	$	16,711	$	15,513	$	51,563	$	50,001
Add:
Real estate depreciation and amortization	12,096		12,195		36,227		36,899
FFO	28,807		27,708		87,790		86,900
Subtract:
Preferred stock dividends	(2,798)		(2,798)		(8,395)		(8,395)
FFO available to common stockholders and noncontrolling interests	$	26,009	$	24,910	$	79,395	$	78,505
Weighted average shares and units:
Basic	33,357		33,295		33,340		33,238
Diluted (2)	34,068		34,005		34,049		33,957
Basic FFO per share available to common stockholders and noncontrolling interests	$	0.78	$	0.75	$	2.38	$	2.36
Diluted FFO per share available to common stockholders and noncontrolling interests	$	0.76	$	0.73	$	2.33	$	2.31

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 impairment charges on real estate assets and gains or losses from real estate 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.

2    Beginning March 5, 2021, fully diluted shares and units includes 1,416,071 limited partnership units held in escrow related to the contribution of Twinbrook Quarter. Half of the units held in escrow were released on October 18, 2021. The remaining units were released on October 18, 2023.

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Acquisitions and Redevelopments

The Company 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 remainder of the year, any developments, expansions or acquisitions are expected to be funded with bank borrowings from the Credit Facility, 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.

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, 2023	50	7	7,878,088	1,136,885	95.6	%	84.4	%
September 30, 2022	50	7	7,874,130	1,136,885	94.5	%	83.1	%

As of September 30, 2023, 94.2% of the Commercial portfolio was leased, compared to 93.0% as of September 30, 2022. On a same property basis, 94.2% of the Commercial portfolio was leased as of September 30, 2023 compared to 93.0% as of September 30, 2022. Included in the 94.2% of space leased as of September 30, 2023, is approximately 239,400 square feet of space, representing 2.7% of total Commercial square footage, that has not yet been occupied by the respective tenants. Collectively, these leases are expected to produce approximately $5.7 million of additional annualized base rent, an average of $23.64 per square foot, upon tenant occupancy and following any contractual rent concessions.

The Mixed-Use Commercial leasing percentage is composed of Commercial leases at office mixed-use properties and residential mixed-use properties. The leasing percentage at office mixed-use properties increased to 83.6% as of September 30, 2023 from 82.0% as of September 30, 2022. The retail leasing percentage at residential mixed-use properties decreased to 97.0% as of September 30, 2023 from 100.0% as of September 30, 2022.

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.

Commercial Property Leasing Activity					Average Base Rent per Square Foot
Three Months Ended September 30,	Square Feet		Number of Leases		New/Renewed Leases				Expiring Leases
	Shopping Centers	Mixed-Use	Shopping Centers	Mixed-Use	Shopping Centers		Mixed-Use		Shopping Centers		Mixed-Use
2023	411,363	31,153	74	8	$	18.24	$	28.31	$	17.72	$	32.57
2022	415,845	23,904	94	3	23.44		27.64		21.80		30.40

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Additional information about the leasing activity during the three months ended September 30, 2023 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.

	Commercial Property Leasing Activity
	New Leases		First Generation/Development Leases		Renewed Leases
Number of leases	26		1		56
Square feet	76,398		175		366,118
Per square foot average annualized:
Base rent	$	26.54	$	128.57	$	17.37
Tenant improvements	(5.94)		—		(0.29)
Leasing costs	(0.80)		(5.14)		(0.03)
Rent concessions	(0.37)		—		(0.06)
Effective rents	$	19.43	$	123.43	$	16.99

As of December 31, 2022, 1,026,830 square feet of Commercial space was subject to leases scheduled to expire in 2023. Of those leases, as of September 30, 2023, leases representing 149,988 square feet of Commercial space (a) are on a month-to-month basis or (b) 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 Commercial Property Leases	Total
Square feet	149,988
Average base rent per square foot	$	20.69
Estimated market base rent per square foot	$	20.75

As of September 30, 2023, the Residential portfolio was 97.5% leased compared to 97.2% as of September 30, 2022.

Residential Property Leasing Activity		Average Rent per Square Foot
Three Months Ended September 30,	Number of leases	New/Renewed Leases		Expiring Leases
2023	285	$	3.56	$	3.42
2022	338	3.49		3.22

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 and inflation. 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 is exposed to interest rate fluctuations that 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, 2023, the Company had unhedged variable rate indebtedness totaling $251.0 million. If the interest rates on the Company’s unhedged variable rate debt instruments outstanding at September 30, 2023 had been one percentage point higher or lower, annual interest expense relating to these debt instruments would have increased or decreased by $2.5 million based on those balances. As of September 30, 2023, the Company had fixed-rate indebtedness totaling $1.11 billion with a weighted average interest rate of 4.73%. If interest rates on the Company’s fixed-rate debt instruments at September 30, 2023 had been one percentage point higher, the fair value of those debt instruments on that date would have decreased by $53.2 million. If interest rates on the Company’s fixed-rate debt instruments at September 30, 2023 had been one percentage point lower, the fair value of those debt instruments on that date would have increased by $58.1 million.

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Inflation may impact the Company's results of operations by (a) increasing costs unreimbursed by tenants faster than rents increase and (b) adversely impacting consumer demand at our retail shopping centers, which, in turn, may results in (i) lower percentage rent and/or (ii) the inability of tenants to pay their rent. Inflation may also negatively impact the cost of development projects. While the Company has not been significantly impacted by any of these items in the current year, no assurances can be provided that inflationary pressures will not have a material adverse effect on the Company’s business in the future.

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, and its Senior Vice President-Chief Accounting Officer and Treasurer, 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, and its Senior Vice President-Chief Accounting Officer and Treasurer of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of September 30, 2023. Based on the foregoing, the Company’s Chairman and Chief Executive Officer, its Senior Vice President-Chief Financial Officer and its Senior Vice President-Chief Accounting Officer and Treasurer concluded that the Company’s disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2023.

During the quarter ended September 30, 2023, there were no changes in the Company’s internal control over financial reporting that 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 2022 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, 2023 dividend distribution acquired 4,097 shares of common stock at a price of $37.75 per share.

Item 3.    Defaults Upon Senior Securities

None

Item 4.    Mine Safety Disclosures

Not Applicable

Item 5.    Other Information

None

Item 6.    Exhibits

10.	(a)	The Nineteenth Amendment to the First Amended and Restated Agreement of Limited Partnership of Saul Holdings Limited Partnership (filed herewith).
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, 2023, formatted in Inline Extensible Business Reporting Language (“Inline XBRL”): (i) consolidated balance sheets, (ii) consolidated statements of operations, (iii) consolidated statements of equity and comprehensive income, (iv) consolidated statements of cash flows, and (v) the notes to the consolidated financial statements.
104.		Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document and included in Exhibit 101).

* In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

-41-

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, 2023	/s/ D. Todd Pearson
	D. Todd Pearson President and Chief Operating Officer
Date: November 2, 2023	/s/ Carlos L. Heard
	Carlos L. Heard Senior Vice President and Chief Financial Officer (principal financial officer)
Date: November 2, 2023	/s/ Joel A. Friedman
	Joel A. Friedman Senior Vice President, Chief Accounting Officer and Treasurer (principal accounting officer)

-42-

EX-10.A

1 NINETEENTH AMENDMENT TO THE FIRST AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF SAUL HOLDINGS LIMITED PARTNERSHIP THIS NINETEENTH AMENDMENT TO THE FIRST AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF SAUL HOLDINGS LIMITED PARTNERSHIP (this “Amendment”), dated as of October 18, 2023, is entered into by the undersigned parties. W I T N E S S E T H: WHEREAS, Saul Holdings Limited Partnership (the “Partnership”) was formed as a Maryland limited partnership pursuant to that certain Certificate of Limited Partnership dated June 16, 1993 and filed on June 16, 1993 among the partnership records of the Maryland State Department of Assessments and Taxation, and that certain Agreement of Limited Partnership dated June 16, 1993 (the “Original Agreement”); WHEREAS, the Original Agreement was amended and restated in its entirety by that certain First Amended and Restated Agreement of Limited Partnership of the Partnership dated August 26, 1993, which was further amended by that certain First Amendment dated August 26, 1993, by that certain Second Amendment dated March 31, 1994, by that certain Third Amendment dated July 21, 1994, by that certain Fourth Amendment dated December 1, 1996, by that certain Fifth Amendment dated July 6, 2000, by that certain Sixth Amendment dated November 5, 2003, by that certain Seventh Amendment dated November 26, 2003 , by that certain Eighth Amendment dated December 31, 2007, by that certain Ninth Amendment dated March 27, 2008, by that Tenth Amendment dated April 4, 2008, by that certain Eleventh Amendment dated September 23, 2011, by that certain Twelfth Amendment dated February 12, 2013, by that certain Thirteenth Amendment dated November 12, 2014, by that certain Fourteenth Amendment dated January 23, 2018, by that certain Fifteenth Amendment dated May 9, 2018, by that certain Sixteenth Amendment dated September 17, 2019, by that certain Seventeenth Amendment dated June 29, 2021, and by that certain Eighteenth Amendment (“Eighteenth Amendment”) dated October 18, 2021 (as amended, the “Agreement”); WHEREAS, pursuant to a Contribution Agreement, dated November 5, 2019, as amended by that certain First Amendment to the Contribution Agreement dated March 5, 2021 (as amended, the “Contribution Agreement”), among the Partnership and 1592 Rockville Pike LLC, an affiliate of the Partnership (the “Company”), the Company agreed to contribute certain fee and leasehold interests in certain land and the improvements located thereon known as Twinbrook Quarter to the Partnership in exchange (at a time and on the terms and conditions set forth in the Contribution Agreement) for Partnership Units; WHEREAS, as set forth in the Eighteenth Amendment, in exchange for its Capital Contribution pursuant to the Contribution Agreement, the Company was issued certain Partnership Units and immediately thereafter became a Limited Partner for all purposes under the Agreement; and Exhibit 10.(a)

2 WHEREAS, the undersigned Partners of the Partnership desire to amend Exhibit A to the Agreement to consent to the issuance of additional Partnership Units to the Company in accordance with the terms set forth in the Contribution Agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the undersigned parties, intending legally to be bound, hereby agree as follows: 1. The Exhibit A attached to the Agreement is hereby deleted in its entirety and replaced as contemplated by the Exhibit A attached hereto. 2. Notwithstanding anything in the Agreement to the contrary, the General Partner and the Limited Partners party hereto, who hold in the aggregate more than fifty percent (50%) of the total Partnership Interests held by the Limited Partners, hereby consent to the issuance of additional Partnership Units to the Company in accordance with the terms set forth in the Contribution Agreement, which Partnership Units shall carry the Rights set forth in the Agreement. 3. Except as the context may otherwise require, any terms used in this Amendment that are defined in the Agreement shall have the same meaning for purposes of this Amendment as in the Agreement. 4. Except as specifically amended hereby, the terms, covenants, provisions and conditions of the Agreement shall remain and continue in full force and effect and, except as amended hereby, all of the terms, covenants, provisions and conditions of the Agreement are hereby ratified and confirmed in all respects. 5. This Amendment may be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this Amendment immediately upon affixing its signature hereto. [Signature Page Follows] Exhibit 10.(a)

3 IN WITNESS WHEREOF, the undersigned parties have executed this Amendment as of the date first written above. GENERAL PARTNER SAUL CENTERS, INC., a Maryland corporation By: /s/ Carlos L. Heard Name: Carlos L. Heard Title: Senior Vice President and Chief Financial Officer LIMITED PARTNERS B. F. SAUL REAL ESTATE INVESTMENT TRUST, a Maryland unincorporated business trust By: /s/ B. Francis Saul II Name: B. Francis Saul II Title: Chairman and Chief Executive Officer WESTMINSTER INVESTING, LLC, a Maryland limited liability company By: /s/ B. Francis Saul II Name: B. Francis Saul II Title: President VAN NESS SQUARE CORPORATION, a Maryland corporation By: /s/ B. Francis Saul II Name: B. Francis Saul II Title: President Exhibit 10.(a)

4 DEARBORN, L.L.C., a Delaware limited liability company By: /s/ B. Francis Saul II Name: B. Francis Saul II Title: Chief Executive Officer B.F. SAUL PROPERTY COMPANY, a Maryland corporation By: /s/ B. Francis Saul II Name: B. Francis Saul II Title: Chairman of the Board AVENEL EXECUTIVE PARK PHASE II, L.L.C., a Maryland limited liability company By: /s/ D. Todd Pearson Name: D. Todd Pearson Title: President 1592 ROCKVILLE PIKE LLC, a Delaware limited liability company By: /s/ B. Francis Saul II Name: B. Francis Saul II Title: Chief Executive Officer Exhibit 10.(a)

Exhibit A Saul Holdings Limited Partnership Units Holder Existing Units Third Escrow Release - October 18, 2023 Resulting Units after Third Escrow Release Percentage Number Number Percentage Number Saul Centers, Inc. General Partner 72.13% 24,064,211 70.63% 24,064,211 B. F. Saul Real Estate Investment Trust Limited Partner 9.86% 3,291,000 9.66% 3,291,000 1592 Rockville Pike LLC Limited Partner 2.12% 708,036 708,035 4.16% 1,416,071 Dearborn, L.L.C. Limited Partner 5.77% 1,924,388 5.65% 1,924,388 Avenel Executive Park Phase II, L.L.C. Limited Partner 0.03% 11,299 0.03% 11,299 SHLP Unit Acquisition Corp. Limited Partner 4.61% 1,538,005 4.51% 1,538,005 B.F. Saul Property Company Limited Partner 1.10% 366,343 1.08% 366,343 Westminster Investing, LLC Limited Partner 1.24% 414,691 1.22% 414,691 Van Ness Square Corporation Limited Partner 1.72% 574,111 1.69% 574,111 Avissar-Diener, LLC Limited Partner 1.41% 469,740 1.38% 469,740 Partnership Unit Totals 27.87% 9,297,613 29.37% 10,005,648 Totals 100.00% 33,361,824 100.00% 34,069,859 5 Exhibit 10.(a)

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 officer(s) 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 quarter (the registrant's fourth fiscal quarter in the case of an annual report) 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 officer(s) 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 the 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, 2023

/s/ B. Francis Saul II

B. Francis Saul II

Chairman and Chief Executive Officer

CERTIFICATIONS

I, Carlos L. Heard, 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 officer(s) 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 quarter (the registrant's fourth fiscal quarter in the case of an annual report) 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 officer(s) 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 the 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, 2023

/s/ Carlos L. Heard

Carlos L. Heard

Senior Vice President and

Chief Financial Officer

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, 2023 (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, 2023/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, Carlos L. Heard, 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, 2023 (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, 2023/s/ Carlos L. Heard

Name: Carlos L. Heard

Title: Senior Vice President and

Chief Financial Officer

EX-99.A

																		Exhibit 99 (a)
Saul Centers, Inc.
Schedule of Current Portfolio Properties
September 30, 2023
					Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Percentage Leased as of September 30,										(1)
		Property	Location					2023		2022		2021		2020		2019		Anchor / Significant Tenants
Shopping Centers
	Ashbrook Marketplace		Ashburn, VA		85,819	2018 (2019)	13.7	100	%	100	%	100	%	100	%	N/A		Lidl, Planet Fitness, Starbucks, Dunkin Donuts, Valvoline, Cafe Rio, McAlisters Deli, Apple Federal Credit Union
	Ashburn Village		Ashburn, VA		221,596	1994-2006	26.4	96	%	95	%	96	%	96	%	97	%	Giant Food, Hallmark, McDonald's, Burger King, Dunkin Donuts, Kinder Care, Blue Ridge Grill
	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		359,671	1972 (1993/99/07)	32.3	100	%	100	%	100	%	100	%	100	%	Lowe's Home Improvement Center, Giant Food, Home Goods, Outback Steakhouse, Marshalls, Party Depot, Panera Bread, TGI Fridays, Starbucks, Famous Dave's, Chipotle, Capital One Bank, Wendy's
	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		121,365	2004	12.7	100	%	100	%	93	%	99	%	99	%	Publix, Palm Beach Fitness, Anima Domus, Foxtail Coffee
	Boulevard		Fairfax, VA		49,140	1994 (1999/09)	5.0	100	%	96	%	96	%	97	%	100	%	Panera Bread, Party City, Petco, Capital One Bank
	Briggs Chaney MarketPlace		Silver Spring, MD		194,258	2004	18.2	98	%	98	%	95	%	97	%	97	%	Global Food, Ross Dress For Less, Advance Auto Parts, McDonald's, Dunkin Donuts, Enterprise Rent-A-Car, Dollar Tree, Dollar General, Salon Plaza, Chipotle
	Broadlands Village		Ashburn, VA		174,438	2003/4/6	24.0	99	%	92	%	92	%	93	%	99	%	Aldi Grocery, The All American Steakhouse, Bonefish Grill, Dollar Tree, Starbucks, Minnieland Day Care, LA Fitness, Chase Bank, X-Golf, Inova Go Health
	Burtonsville Town Square		Burtonsville, MD	(4)	139,928	2017	26.3	100	%	100	%	100	%	100	%	99	%	Giant Food, Petco, Starbucks, Greene Turtle, Capital One Bank, CVS Pharmacy, Roy Rogers, Mr. Tire, Taco Bell
	Countryside Marketplace		Sterling, VA		137,804	2004	16.0	91	%	85	%	93	%	95	%	97	%	Lotte Plaza Market, CVS Pharmacy, Starbucks, McDonald's, 7-Eleven, VA ABC
	Cranberry Square		Westminster, MD		141,450	2011	18.9	100	%	97	%	90	%	87	%	96	%	Giant Food, Giant Gas Station, Staples, Party City, Wendy's, Sola Salons, Ledo Pizza, Hallmark
	Cruse MarketPlace		Cumming, GA		78,686	2004	10.6	93	%	93	%	94	%	92	%	94	%	Publix, Orange Theory, Anytime Fitness
	Flagship Center		Rockville, MD		21,500	1972, 1989	0.5	100	%	100	%	100	%	100	%	100	%	Chase Bank, Bank of America
	French Market		Oklahoma City, OK		246,148	1974 (1984/98)	13.8	63	%	75	%	76	%	97	%	96	%	Burlington Coat Factory, Staples, Petco, The Tile Shop, Lakeshore Learning Center, Dollar Tree, Verizon, Raising Cane's, Skechers
	Germantown		Germantown, MD		18,982	1992	2.7	100	%	100	%	100	%	100	%	100	%	CVS Pharmacy, Jiffy Lube
	The Glen		Woodbridge, VA		136,440	1994 (2005)	14.7	100	%	99	%	98	%	98	%	98	%	Safeway, Panera Bread, Five Guys, Chipotle
	Great Falls Center		Great Falls, VA		91,666	2008	11.0	100	%	100	%	98	%	99	%	98	%	Safeway, CVS Pharmacy, Trustar Bank, Starbucks, Subway
	Hampshire Langley		Takoma Park, MD		131,700	1972 (1979)	9.9	100	%	100	%	100	%	99	%	100	%	Mega Mart, Starbucks, Chuck E. Cheese's, Sardi's Chicken, Capital One Bank, Kool Smiles, Wells Fargo
	Hunt Club Corners		Apopka, FL		107,103	2006	13.9	98	%	98	%	99	%	100	%	100	%	Publix, Pet Supermarket, Boost Mobile
	Jamestown Place		Altamonte Springs, FL		96,201	2005	10.9	99	%	100	%	100	%	100	%	100	%	Publix, Carrabas Italian Grill, Orlando Health
	Kentlands Square I		Gaithersburg, MD		119,694	2002	11.5	100	%	100	%	100	%	100	%	100	%	Lowe's Home Improvement Center, Chipotle, Starbucks, Shake Shack
	Saul Centers, Inc.
	Schedule of Current Portfolio Properties
	September 30, 2023
					Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Percentage Leased as of September 30,										(1)
		Property	Location					2023		2022		2021		2020		2019		Anchor / Significant Tenants
	Shopping Centers (continued)
	Kentlands Square II and Kentlands Pad		Gaithersburg, MD		253,052	2011	23.4	99	%	98	%	96	%	97	%	96	%	Giant Food, At Home, Party City, Panera Bread, Hallmark, Chick-Fil-A, Coal Fire Pizza, Cava Mezza Grill, Truist Bank, Hand & Stone Massage, Crumbl Cookie, Quincy's Restaurant
	Kentlands Place		Gaithersburg, MD		40,697	2005	3.4	74	%	82	%	88	%	75	%	93	%	Bonefish Grill, F45 Training
	Lansdowne Town Center		Leesburg, VA		196,817	2006	23.3	93	%	90	%	90	%	90	%	92	%	Harris Teeter, CVS Pharmacy, Panera Bread, Starbucks, Ford's Oyster House, Fusion Learning, Chick-Fil-A, Chase Bank
	Leesburg Pike Plaza		Baileys Crossroads, VA		97,752	1966 (1982/95)	9.4	100	%	100	%	93	%	93	%	85	%	CVS Pharmacy, FedEx Office, Capital One Bank, Five Guys, Dollar Tree, Advanced Auto
	Lumberton Plaza		Lumberton, NJ		192,718	1975 (1992/96)	23.3	66	%	66	%	67	%	68	%	68	%	Aldi, Rite Aid, Family Dollar, Big Lots, Burger King, Big Rich Fitness, Enterprise Rent-A-Car
	Metro Pike Center		Rockville, MD		67,488	2010	4.6	96	%	85	%	84	%	85	%	64	%	McDonald's, Dunkin Donuts, 7-Eleven, Palm Beach Tan, Mattress Warehouse, Salvation Army, Dollar Tree
	Shops at Monocacy		Frederick, MD		111,341	2004	13.0	98	%	98	%	98	%	97	%	95	%	Giant Food, Panera Bread, Five Guys, California Tortilla, Firehouse Subs, Comcast, NTB
	Northrock		Warrenton, VA		100,032	2009	15.4	96	%	96	%	94	%	94	%	100	%	Harris Teeter, Longhorn Steakhouse, Ledo's Pizza, Capital One Bank, Novant Health
	Olde Forte Village		Ft. Washington, MD		143,577	2003	16.0	99	%	98	%	96	%	92	%	96	%	Safeway, Advance Auto Parts, Dollar Tree, McDonald's, Wendy's, Ledo's Pizza, M&T Bank
	Olney		Olney, MD		53,765	1975 (1990)	3.7	95	%	95	%	91	%	92	%	93	%	Walgreens, Olney Grille, Ledo's Pizza, Popeye's, Sardi's Fusion
	Orchard Park		Dunwoody, GA		87,365	2007	10.5	99	%	100	%	99	%	99	%	99	%	Kroger, Jett Ferry Dental
	Palm Springs Center		Altamonte Springs, FL		126,446	2005	12.0	98	%	97	%	98	%	100	%	100	%	Publix, Duffy's Sports Grill, Toojay's Deli, The Tile Shop, Rockler Tools, Humana Health, Sola Salons
	Ravenwood		Baltimore, MD		93,328	1972 (2006)	8.0	92	%	91	%	100	%	97	%	97	%	Giant Food, Dominos, Bank of America
	11503 Rockville Pk / 5541 Nicholson Ln		Rockville, MD		40,249	2010 / 2012	3.0	57	%	61	%	61	%	61	%	61	%	Dr. Boyd's Pet Resort, Metropolitan Emergency Animal Clinic
	1500/1580/1582 Rockville Pike		Rockville, MD		105,428	2012/2014	10.2	100	%	98	%	100	%	86	%	97	%	Party City, CVS Pharmacy, Persiano Furniture Gallery
	Seabreeze Plaza		Palm Harbor, FL		146,673	2005	18.4	97	%	94	%	94	%	96	%	99	%	Publix, Petco, Planet Fitness, Vision Works
	Marketplace at Sea Colony		Bethany Beach, DE		21,677	2008	5.1	100	%	100	%	100	%	100	%	100	%	Armand's Pizza, Candy Kitchen, Summer Salts, Fin's Alehouse, Vacasa
	Seven Corners		Falls Church, VA		573,481	1973 (1994-7/07)	31.6	99	%	97	%	99	%	97	%	97	%	The Home Depot, Giant Food, Michaels Arts & Crafts, Barnes & Noble, Ross Dress For Less, Ski Chalet, Off-Broadway Shoes, JoAnn Fabrics, Starbucks, Red Robin Gourmet Burgers, Chipotle, Wendy's, Burlington Coat Factory, Mattress Warehouse, J. P. Morgan Chase, Five Below
	Severna Park Marketplace		Severna Park, MD		254,011	2011	20.6	95	%	94	%	89	%	89	%	100	%	Giant Food, Kohl's, Office Depot, Goodyear, Chipotle, McDonald's, Five Guys, Unleashed (Petco), Jersey Mike's, Bath & Body Works, Wells Fargo, MOD Pizza
	Saul Centers, Inc.
	Schedule of Current Portfolio Properties
	September 30, 2023
					Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Percentage Leased as of September 30,										(1)
		Property	Location					2023		2022		2021		2020		2019		Anchor / Significant Tenants
	Shopping Centers (continued)
	Shops at Fairfax		Fairfax, VA		68,762	1975 (1993/99)	6.7	100	%	98	%	98	%	97	%	98	%	99 Ranch
	Smallwood Village Center		Waldorf, MD		173,341	2006	25.1	91	%	90	%	81	%	75	%	77	%	Safeway, CVS Pharmacy, Family Dollar
	Southdale		Glen Burnie, MD		485,628	1972 (1986)	39.8	99	%	96	%	94	%	98	%	97	%	The Home Depot, Michaels Arts & Crafts, Marshalls, PetSmart, Value City Furniture, Athletic Warehouse, Starbucks, Gallo Clothing, Office Depot, The Tile Shop, Mercy Health Care, Massage Envy, Potbelly, Capital One Bank, Chipotle, Banfield Pet Hospital, Glory Days Grill, Bank of America, Grocery Outlet
	Southside Plaza		Richmond, VA		371,761	1972	32.8	96	%	95	%	98	%	97	%	92	%	Super Fresh, Citi Trends, City of Richmond, McDonald's, Burger King, Kool Smiles, Crafty Crab, Roses
	South Dekalb Plaza		Atlanta, GA		163,418	1976	14.6	94	%	94	%	94	%	87	%	87	%	Big Lots, Emory Clinic, Roses, Deal $, Humana Oak Street Health
	Thruway		Winston-Salem, NC		367,399	1972 (1997)	31.5	96	%	90	%	81	%	92	%	92	%	Harris Teeter, Trader Joe's, Talbots, Hanes Brands, Jos. A. Bank, Chico's, Loft, FedEx Office, New Balance, Aveda Salon, Carter's Kids, McDonald's, Chick-Fil-A, Wells Fargo Bank, Francesca's Collections, Great Outdoor Provision Company, White House / Black Market, Soma, J. Crew, Chop't, Lululemon, Orange Theory, Athleta, Sephora, O2 Fitness, Hallmark, Sleep Number, The Good Feet Store, Hand & Stone Massage
	Village Center		Centreville, VA		145,651	1990	17.2	94	%	94	%	95	%	88	%	98	%	Giant Food, Starbucks, McDonald's, Pet Supplies Plus, Bikram Yoga, Truist Bank
	Westview Village		Frederick, MD		103,186	2009	11.6	99	%	97	%	91	%	99	%	97	%	Silver Diner, Sleepy's, Music & Arts, Firehouse Subs, CiCi's Pizza, Café Rio, Five Guys, Regus, Krispy Kreme, Wendy's, State Employees Credit Union (SECU), GNC, Moby Dick's House of Kabobs
	White Oak		Silver Spring, MD		480,676	1972 (1993)	27.9	100	%	99	%	100	%	100	%	99	%	Giant Food, Sears, Walgreens, Sarku Japan
			Total Shopping Centers	(1)	7,878,088		766.7	95.6	%	94.5	%	93.6	%	94.5	%	95.2	%
Saul Centers, Inc.
Schedule of Current Portfolio Properties
September 30, 2023
					Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Percentage Leased as of September 30,										(1)
		Property	Location					2023		2022		2021		2020		2019		Anchor / Significant Tenants
Mixed-Use Properties (3)
	Avenel Business Park		Gaithersburg, MD		390,683	1981-2000	37.1	96	%	90	%	93	%	94	%	90	%	General Services Administration, Gene Dx, Inc., American Type Culture Collection, Inc.
	Clarendon Center-North Block		Arlington, VA	(4)	108,386	2010	0.6	88	%	85	%	83	%	83	%	89	%	AT&T Mobility, Chipotle, Airlines Reporting Corporation
	Clarendon Center-South Block		Arlington, VA	(4)	104,894	2010	1.3	53	%	71	%	88	%	96	%	97	%	Trader Joe's, Circa, Burke & Herbert Bank, South Block Blends, Keppler Speakers Bureau, Leadership Institute, Massage Envy
	Clarendon Center Residential-South Block (244 units)		Arlington, VA	(4)	188,671	2010		98	%	97	%	99	%	94	%	97	%
	Park Van Ness- Residential (271 units)		Washington, DC	(4)	214,600	2016	1.4	99	%	96	%	97	%	94	%	99	%
	Park Van Ness-Retail		Washington, DC	(4)	8,847	2016		76	%	100	%	100	%	100	%	100	%	Sfoglina Pasta House
	601 Pennsylvania Ave.		Washington, DC		227,651	1973 (1986)	1.0	79	%	78	%	78	%	94	%	94	%	National Gallery of Art, American Assn. of Health Plans, Southern Company, Regus, Capital Grille
	Washington Square		Alexandria, VA		236,376	1975 (2000)	2.0	80	%	77	%	77	%	81	%	91	%	Academy of Managed Care Pharmacy, Cooper Carry, National PACE Association, International Information Systems Security Certification Consortium, Trader Joe's, FedEx Office, Talbots
	The Waycroft-Residential (491 units)		Arlington, VA	(4)	404,709	2020	2.8	97	%	98	%	98	%	52	%	N/A
	The Waycroft-Retail		Arlington, VA	(4)	60,048	2020		100	%	100	%	91	%	90	%	N/A		Target, Enterprise Rent-A-Car, Silver Diner, Salon Lofts
			Total Mixed-Use Properties	(1)	1,944,865		46.2	84.4	%	83.1	%	85.0	%	90.3	%	91.9	%	(2)
			Total Portfolio	(1)	9,822,953		812.9	94.2	%	93.0	%	92.5	%	94.0	%	94.8	%	(2)
		Property	Location		Leasable Area (Square Feet)	Year Acquired or Developed (Renovated)	Land Area (Acres)	Development Activity
Land and Development Parcels
	Hampden House		Bethesda, MD			2018	0.6	Above grade construction of the structure is on-going and framing and pouring of concrete is being performed at the 10th level above ground.
	Twinbrook Quarter		Rockville, MD			2021	8.2	In addition to the structure, the masonry façade of the residential building is substantially complete and work continues on the interior courtyard. Apartment unit construction is in process at levels two through 12.
	Ashland Square Phase II		Manassas, VA			2004	17.3	Marketing to grocers and other retail businesses, with a development timetable yet to be finalized.
	New Market		New Market, MD			2005	35.5	Parcel will accommodate retail development in excess of 120,000 square feet near I-70, east of Frederick, Maryland. A development timetable has not been determined.
			Total Development Properties				61.6
		(1)	Percentage leased is a percentage of rentable square feet leased for commercial space and a percentage of units leased for apartments. Prior year leased percentages, including 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.
		(2)	Total percentage leased is for commercial space only.
		(3)	For the purposes of the property count listed elsewhere in this document, residential and commercial are combined. The residential units at Clarendon South, Park Van Ness and The Waycroft are all part of the same building as the commercial tenants at those locations.
		(4)	Property is LEED certified.

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Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Oct. 30, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	1-12254
Entity Registrant Name	SAUL CENTERS, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-1833074
Entity Address, Address Line One	7501 Wisconsin Avenue
Entity Address, City or Town	Bethesda
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20814
City Area Code	301
Local Phone Number	986-6200
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,943,816
Entity Central Index Key	0000907254
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of each class:	Common Stock, Par Value $0.01 Per Share
Trading symbol:	BFS
Name of exchange on which registered:	NYSE
Depositary Shares each representing 1/100th of a share of 6.125% Series D Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share
Entity Information [Line Items]
Title of each class:	Depositary Shares each representing 1/100th of a share of 6.125% Series D Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share
Trading symbol:	BFS/PRD
Name of exchange on which registered:	NYSE
Depositary Shares each representing 1/100th of a share of 6.000% Series E Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share
Entity Information [Line Items]
Title of each class:	Depositary Shares each representing 1/100th of a share of 6.000% Series E Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share
Trading symbol:	BFS/PRE
Name of exchange on which registered:	NYSE

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Real estate investments
Land	$ 511,529	$ 511,529
Buildings and equipment	1,588,219	1,574,381
Construction in progress	467,939	322,226
Total purchase price	2,567,687	2,408,136
Accumulated depreciation	(719,163)	(688,475)
Real estate investments, net	1,848,524	1,719,661
Cash and cash equivalents	6,586	13,279
Accounts receivable and accrued income, net	56,894	56,323
Deferred leasing costs, net	23,147	22,388
Other assets	25,772	21,651
Total assets	1,960,923	1,833,302
Liabilities
Notes payable, net	943,538	961,577
Revolving credit facility payable, net	249,521	161,941
Term loan facility payable, net	99,493	99,382
Construction loan payable, net	50,760	0
Accounts payable, accrued expenses and other liabilities	60,819	42,978
Deferred income	22,977	23,169
Dividends and distributions payable	22,482	22,453
Total liabilities	1,449,590	1,311,500
Equity
Common stock, $0.01 par value, 40,000,000 shares authorized, 24,064,211 and 24,016,009 shares issued and outstanding, respectively	241	240
Additional paid-in capital	449,076	446,301
Partnership units in escrow	39,650	39,650
Distributions in excess of accumulated earnings	(285,024)	(273,559)
Accumulated other comprehensive income	4,724	2,852
Total Saul Centers, Inc. equity	393,667	400,484
Noncontrolling interests	117,666	121,318
Total equity	511,333	521,802
Total liabilities and equity	1,960,923	1,833,302
Series D Cumulative Redeemable, 30,000 shares issued and outstanding
Equity
Preferred stock, 1,000,000 shares authorized:	75,000	75,000
Series E Cumulative Redeemable, 44,000 shares issued and outstanding
Equity
Preferred stock, 1,000,000 shares authorized:	$ 110,000	$ 110,000

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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	24,064,211	24,016,009
Common stock, shares outstanding	24,064,211	24,016,009
Series D Cumulative Redeemable, 30,000 shares issued and outstanding
Cumulative redeemable preferred stock, shares issued	30,000	30,000
Cumulative redeemable preferred stock, shares outstanding	30,000	30,000
Series E Cumulative Redeemable, 44,000 shares issued and outstanding
Cumulative redeemable preferred stock, shares issued	44,000	44,000
Cumulative redeemable preferred stock, shares outstanding	44,000	44,000

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Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue
Rental revenue	$ 62,369	$ 59,951	$ 186,199	$ 179,765
Other	1,397	1,136	4,325	3,759
Total revenue	63,766	61,087	190,524	183,524
Expenses
Property operating expenses	9,720	8,995	27,502	26,174
Real estate taxes	7,641	7,078	22,589	21,652
Interest expense, net and amortization of deferred debt costs	12,419	11,103	36,518	32,162
Depreciation and amortization of deferred leasing costs	12,096	12,195	36,227	36,899
General and administrative	5,179	5,555	16,125	15,988
Loss on early extinguishment of debt	0	648	0	648
Total expenses	47,055	45,574	138,961	133,523
Net income	16,711	15,513	51,563	50,001
Noncontrolling interests
Income attributable to noncontrolling interests	(3,892)	(3,563)	(12,080)	(11,670)
Net income attributable to Saul Centers, Inc.	12,819	11,950	39,483	38,331
Preferred stock dividends	(2,798)	(2,798)	(8,395)	(8,395)
Net income available to common stockholders, Basic	10,021	9,152	31,088	29,936
Net income available to common stockholders, Diluted	$ 10,021	$ 9,152	$ 31,088	$ 29,936
Per share net income available to common stockholders
Basic (in USD per share)	$ 0.42	$ 0.38	$ 1.29	$ 1.25
Diluted (in USD per share)	$ 0.42	$ 0.38	$ 1.29	$ 1.25

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 16,711	$ 15,513	$ 51,563	$ 50,001
Other comprehensive income
Change in unrealized gain on cash flow hedge	2,211	4,256	2,598	4,256
Total comprehensive income	18,922	19,769	54,161	54,257
Comprehensive income attributable to noncontrolling interests	(4,510)	(4,756)	(12,806)	(12,863)
Total comprehensive income attributable to Saul Centers, Inc.	14,412	15,013	41,355	41,394
Preferred stock dividends	(2,798)	(2,798)	(8,395)	(8,395)
Total comprehensive income available to common stockholders	$ 11,614	$ 12,215	$ 32,960	$ 32,999

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Consolidated Statement of Equity (Unaudited) - USD ($) $ in Thousands	Total	Limited Partner	Series D Cumulative Redeemable, 30,000 shares issued and outstanding	Series E Cumulative Redeemable, 44,000 shares issued and outstanding	Total Saul Centers, Inc.	Total Saul Centers, Inc. Series D Cumulative Redeemable, 30,000 shares issued and outstanding	Total Saul Centers, Inc. Series E Cumulative Redeemable, 44,000 shares issued and outstanding	Preferred Stock	Common Stock	Additional Paid-in Capital	Partnership Units in Escrow	Distributions in Excess of Accumulated Earnings	Distributions in Excess of Accumulated Earnings Series D Cumulative Redeemable, 30,000 shares issued and outstanding	Distributions in Excess of Accumulated Earnings Series E Cumulative Redeemable, 44,000 shares issued and outstanding	Accumulated Other Comprehensive Income	Noncontrolling Interests	Noncontrolling Interests Limited Partner
Beginning Balance at Dec. 31, 2021	$ 530,487				$ 405,049			$ 185,000	$ 238	$ 436,609	$ 39,650	$ (256,448)			$ 0	$ 125,438
Issuance of shares of common stock:
Issuance of shares pursuant to dividend reinvestment plan	2,949	$ 653			2,949				1	2,948							$ 653
Shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	594				594					594
Net income	17,491				13,365							13,365				4,126
Distributions payable preferred stock:
Preferred stock distributions			$ (1,148)	$ (1,650)		$ (1,148)	$ (1,650)						$ (1,148)	$ (1,650)
Distributions payable, common stock and partnership units	(18,917)				(13,625)							(13,625)				(5,292)
Ending Balance at Mar. 31, 2022	530,459				405,534			185,000	239	440,151	39,650	(259,506)			0	124,925
Beginning Balance at Dec. 31, 2021	530,487				405,049			185,000	238	436,609	39,650	(256,448)			0	125,438
Issuance of shares of common stock:
Net income	50,001
Ending Balance at Sep. 30, 2022	528,317				404,958			185,000	240	445,456	39,650	(268,451)			3,063	123,359
Beginning Balance at Mar. 31, 2022	530,459				405,534			185,000	239	440,151	39,650	(259,506)			0	124,925
Issuance of shares of common stock:
Issuance of shares pursuant to dividend reinvestment plan	2,949	$ 669			2,949				1	2,948							$ 669
Shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	1,397				1,397					1,397
Net income	16,997				13,016							13,016				3,981
Distributions payable preferred stock:
Preferred stock distributions			(1,148)	(1,650)		(1,148)	(1,650)						(1,148)	(1,650)
Distributions payable, common stock and partnership units	(19,642)				(14,156)							(14,156)				(5,486)
Ending Balance at Jun. 30, 2022	530,031				405,942			185,000	240	444,496	39,650	(263,444)			0	124,089
Issuance of shares of common stock:
Issuance of shares pursuant to dividend reinvestment plan	537				537					537
Shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	423				423					423
Net income	15,513				11,950							11,950				3,563
Change in unrealized gain/loss on cash flow hedge	4,256				3,063										3,063	1,193
Distributions payable preferred stock:
Preferred stock distributions			(1,148)	(1,650)		(1,148)	(1,650)						(1,148)	(1,650)
Distributions payable, common stock and partnership units	(19,645)				(14,159)							(14,159)				(5,486)
Ending Balance at Sep. 30, 2022	528,317				404,958			185,000	240	445,456	39,650	(268,451)			3,063	123,359
Beginning Balance at Dec. 31, 2022	521,802				400,484			185,000	240	446,301	39,650	(273,559)			2,852	121,318
Issuance of shares of common stock:
Issuance of shares pursuant to dividend reinvestment plan	543				543					543
Shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	290				290					290
Net income	17,663				13,502							13,502				4,161
Change in unrealized gain/loss on cash flow hedge	(2,014)				(1,450)										(1,450)	(564)
Distributions payable preferred stock:
Preferred stock distributions			(1,148)	(1,650)		(1,148)	(1,650)						(1,148)	(1,650)
Distributions payable, common stock and partnership units	(19,651)				(14,165)							(14,165)				(5,486)
Ending Balance at Mar. 31, 2023	515,835				396,406			185,000	240	447,134	39,650	(277,020)			1,402	119,429
Beginning Balance at Dec. 31, 2022	521,802				400,484			185,000	240	446,301	39,650	(273,559)			2,852	121,318
Issuance of shares of common stock:
Net income	51,563
Ending Balance at Sep. 30, 2023	511,333				393,667			185,000	241	449,076	39,650	(285,024)			4,724	117,666
Beginning Balance at Mar. 31, 2023	515,835				396,406			185,000	240	447,134	39,650	(277,020)			1,402	119,429
Issuance of shares of common stock:
Issuance of shares pursuant to dividend reinvestment plan	544				544				0	544
Shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	553				553					553
Net income	17,189				13,162							13,162				4,027
Change in unrealized gain/loss on cash flow hedge	2,401				1,729										1,729	672
Distributions payable preferred stock:
Preferred stock distributions			(1,149)	(1,650)		(1,149)	(1,650)						(1,149)	(1,650)
Distributions payable, common stock and partnership units	(19,679)				(14,193)							(14,193)				(5,486)
Ending Balance at Jun. 30, 2023	514,044				395,402			185,000	240	448,231	39,650	(280,850)			3,131	118,642
Issuance of shares of common stock:
Issuance of shares pursuant to dividend reinvestment plan	555				555				1	554
Shares due to share grants, exercise of stock options and issuance of directors’ deferred stock	291				291				0	291
Net income	16,711				12,819							12,819				3,892
Change in unrealized gain/loss on cash flow hedge	2,211				1,593										1,593	618
Distributions payable preferred stock:
Preferred stock distributions			$ (1,148)	$ (1,650)		$ (1,148)	$ (1,650)						$ (1,148)	$ (1,650)
Distributions payable, common stock and partnership units	(19,681)				(14,195)							(14,195)				(5,486)
Ending Balance at Sep. 30, 2023	$ 511,333				$ 393,667			$ 185,000	$ 241	$ 449,076	$ 39,650	$ (285,024)			$ 4,724	$ 117,666

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Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Shares pursuant to dividend reinvestment plan	14,690,000	15,588,000	13,227	10,577,000		61,861
Shares due to exercise of employee stock options and issuance of directors' deferred stock	895,000	3,104,000	699	3,191,000	19,618,000	8,007
Limited Partner
Shares pursuant to dividend reinvestment plan					57,821,000
Issuance of partnership units pursuant to dividend reinvestment plan (in shares)					12,955,000	13,704
Dividend Distributions Payable
Distributions payable common stock, per share (in usd per share)	$ 0.59	$ 0.59	$ 0.59	$ 0.59	$ 0.59	$ 0.57
Distributions partnership units, per unit (in usd per share)	0.59	0.59	0.59	0.59	0.59	0.57
Series D Cumulative Redeemable, 30,000 shares issued and outstanding | Dividend Distributions Payable
Distributions payable on preferred stock, per share (in usd per share)	38.28	38.28	38.28	38.28	38.28	38.28
Series E Cumulative Redeemable, 44,000 shares issued and outstanding | Dividend Distributions Payable
Distributions payable on preferred stock, per share (in usd per share)	$ 37.50	$ 37.50	$ 37.50	$ 37.50	$ 37.50	$ 37.50

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 51,563	$ 50,001
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on early extinguishment of debt	0	648
Depreciation and amortization of deferred leasing costs	36,227	36,899
Amortization of deferred debt costs	1,687	1,428
Compensation costs of stock and option grants	1,134	1,220
Credit losses (recoveries) on operating lease receivables, net	160	(20)
Increase in accounts receivable and accrued income	(731)	(3)
Additions to deferred leasing costs	(3,856)	(1,417)
Increase in other assets	(4,304)	(1,531)
Increase in accounts payable, accrued expenses and other liabilities	3,352	4,085
Increase (decrease) in deferred income	(192)	699
Net cash provided by operating activities	85,040	92,009
Cash flows from investing activities:
Additions to real estate investments	(18,612)	(12,215)
Additions to development and redevelopment projects	(128,655)	(72,294)
Net cash used in investing activities	(147,267)	(84,509)
Cash flows from financing activities:
Proceeds from notes payable	15,300	199,750
Repayments on notes payable	(33,910)	(166,290)
Proceeds from revolving credit facility	113,000	119,000
Repayments on revolving credit facility	(26,000)	(97,000)
Proceeds from construction loan	53,306	0
Payments of debt extinguishment costs	0	(593)
Additions to deferred debt costs	(423)	(9,800)
Proceeds from the issuance of:
Common stock	1,642	7,629
Partnership units	0	1,322
Distributions to:
Common stockholders	(42,527)	(41,364)
Noncontrolling interests	(16,458)	(16,062)
Net cash provided by (used in) financing activities	55,534	(11,803)
Net decrease in cash and cash equivalents	(6,693)	(4,303)
Cash and cash equivalents, beginning of period	13,279	14,594
Cash and cash equivalents, end of period	6,586	10,291
Supplemental disclosure of cash flow information:
Cash paid for interest	34,424	30,295
Accrued capital expenditures included in accounts payable, accrued expenses, and other liabilities	33,495	13,955
Series D Cumulative Redeemable, 30,000 shares issued and outstanding
Distributions to:
Preferred stockholders	(3,446)	(3,445)
Series E Cumulative Redeemable, 44,000 shares issued and outstanding
Distributions to:
Preferred stockholders	$ (4,950)	$ (4,950)

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Organization, Basis of Presentation

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Basis of Presentation

Organization, Basis of Presentation

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 (the “Board”) and Chief Executive Officer of Saul Centers.

The Company, which conducts all of its activities through its subsidiaries, Saul Holdings Limited Partnership, a Maryland limited partnership (the “Operating Partnership”) and two subsidiary limited partnerships (the “Subsidiary Partnerships,” and, collectively with the Operating Partnership, the “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, D.C./Baltimore metropolitan area.

As of September 30, 2023, the Company’s properties (the “Current Portfolio Properties”) consisted of 50 shopping center properties (the “Shopping Centers”), seven mixed-use properties, which are comprised of office, retail and multi-family residential uses (the “Mixed-Use Properties”) and four (non-operating) land and development properties.

Because the properties are located primarily in the Washington, D.C./Baltimore metropolitan area, the Company is subject to a concentration of credit risk related to these properties. The Shopping Centers, a majority of which are anchored by one or more major tenants and 33 of which are anchored by a grocery store, offer primarily day-to-day necessities and services. Giant Food, a tenant at 11 Shopping Centers, individually accounted for 4.9% of the Company's total revenue for the nine months ended September 30, 2023. No other tenant individually accounted for 2.5% or more of the Company’s total revenue, excluding lease termination fees, for the nine months ended September 30, 2023.

The accompanying consolidated financial statements of the Company include the accounts of Saul Centers and its subsidiaries, including the Partnerships, which are majority owned by Saul Centers. Substantially all assets and liabilities of the Company as of September 30, 2023 and December 31, 2022, are comprised of the assets and liabilities of the Operating Partnership. Debt arrangements subject to recourse are described in Note 5. All significant intercompany balances and transactions have been eliminated in consolidation.

The Operating Partnership is a variable interest entity (“VIE”) because the limited partners do not have substantive kick-out or participating rights. The Company is the primary beneficiary of the Operating Partnership because it has the power to direct its activities and the rights to absorb 72.0% of its net income. Because the Operating Partnership is consolidated into the financial statements of the Company, classification of it as a VIE has no impact on the consolidated financial statements of the Company.

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 the Company 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 the Company for the year ended December 31, 2022, which are included in its Annual Report on Form 10-K. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to those instructions. The results of operations for interim periods are not necessarily indicative of results to be expected for the year.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Our significant accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 have not changed significantly in number or composition.

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. The most significant estimates and assumptions relate to collectability of operating lease receivables and impairment of real estate properties. Actual results could differ from those estimates.

Accounts Receivable, Accrued Income and Allowance for Doubtful Accounts

Accounts receivable are primarily comprised of rental and reimbursement billings due from tenants, and straight-line rent receivables representing the cumulative amount of adjustments necessary to present rental income on a straight-line basis. Individual leases are assessed for collectability and, upon the determination that the collection of rents is not probable, accrued rent and accounts receivable are charged off, and the charge off is reflected as an adjustment to rental revenue. Revenue from leases where collection is not probable is recorded on a cash basis until collectability is determined to be probable. Further, we assess whether operating lease receivables, at the portfolio level, are appropriately valued based upon an analysis of balances outstanding, historical bad debt levels and current economic trends. As of September 30, 2023, of the $9.4 million of rents previously deferred, $0.3 million has been written off and $0.4 million has not yet come due. The amount that has not yet come due is included in Accounts receivable and accrued income, net in the Consolidated Balance Sheets.

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to the presentation used as of and for the nine months ended September 30, 2023.

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Real Estate

9 Months Ended

Sep. 30, 2023

Real Estate [Abstract]

Real Estate

Real Estate

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, 2023 and December 31, 2022, is composed of the following:

(In thousands)	September 30, 2023		December 31, 2022
Twinbrook Quarter (1)	$	328,862	$	227,672
Hampden House (2)	120,787		80,704
Other	18,290		13,850
Total	$	467,939	$	322,226

(1) Includes capitalized interest of $22.4 million and $12.4 million, as of September 30, 2023 and December 31, 2022, respectively.

(2) Includes capitalized interest of $12.4 million and $8.7 million, as of September 30, 2023 and December 31, 2022, respectively.

Leases

We lease Shopping Centers and Mixed-Use Properties to lessees in exchange for monthly payments that cover rent, and, where applicable, reimbursement for property taxes, insurance, and certain property operating expenses. Our leases have been determined to be operating leases and generally range in term from one to 15 years.

Some of our leases have termination options and/or extension options. Termination options allow the lessee and/or lessor to terminate the lease prior to the end of the lease term, provided certain conditions are met. Termination options generally require advance notification from the lessee and/or lessor and payment of a termination fee. Termination fees are recognized as revenue over the modified lease term. Extension options are subject to terms and conditions stated in the lease.

An operating lease right of use asset and corresponding lease liability related to our headquarters sublease are reflected in other assets and other liabilities, respectively. The sublease expires on February 28, 2027. The right of use asset and corresponding lease liability totaled $2.7 million and $2.7 million, respectively, at September 30, 2023.

Deferred Leasing Costs

Deferred leasing costs primarily consist of initial direct costs incurred in connection with successful property leasing and amounts attributed to in-place leases associated with acquired properties. Such amounts are capitalized and amortized, using the straight-line method, over the term of the lease or the remaining term of an acquired lease. Initial direct costs primarily consist of leasing commissions, which are costs paid to third-party brokers and lease commissions paid to certain employees that are incremental to obtaining a lease and would not have been incurred if the lease had not been obtained. Unamortized deferred costs are charged to expense if the applicable lease is terminated prior to expiration of the initial lease term. Collectively, deferred leasing costs totaled $23.1 million and $22.4 million, net of accumulated amortization of $53.3 million and $51.3 million, as of September 30, 2023 and December 31, 2022, respectively. Amortization expense, included in depreciation and amortization of deferred leasing costs in the Consolidated Statements of Operations, totaled $3.1 million and $3.2 million for the nine months ended September 30, 2023 and 2022, respectively.

Real Estate Investment Properties

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 $33.1 million and $33.7 million for the nine months ended September 30, 2023 and 2022, respectively. Repairs and maintenance expense totaled $11.3 million and $11.1 million for the nine months ended September 30, 2023 and 2022, respectively, and is included in property operating expenses in the Consolidated Statements of Operations.

As of September 30, 2023, we have not identified any impairment triggering events, including the impact of COVID-19 and corresponding tenant requests for rent relief. Therefore, under applicable GAAP guidance, no impairment charges were recorded.

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

9 Months Ended

Sep. 30, 2023

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 PartnershipAs of September 30, 2023, 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”) held an aggregate 26.6% limited partnership interest in the Operating Partnership represented by approximately 8.8 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 Company’s Articles of Incorporation, the rights may not be exercised at any time that the Saul Organization beneficially owns or will own after the exercise, 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, 2023, approximately 825,000 units could be converted into shares of Saul Centers common stock.

As of September 30, 2023, a third party investor holds a 1.4% limited partnership interest in the Operating Partnership represented by 469,740 convertible limited partnership units. At the option of the unit holder, these units are convertible into shares of Saul Centers’ common stock on a one-for-one basis; provided that, in lieu of the delivery of Saul Centers’ common stock, Saul Centers may, in its sole discretion, deliver cash in an amount equal to the value of such Saul Centers’ common stock.

The impact of the aggregate 28.0% limited partnership interest in the Operating Partnership held by parties other than Saul Centers is reflected as Noncontrolling Interests in the accompanying consolidated financial statements. Weighted average fully diluted partnership units and common stock outstanding for the three months ended September 30, 2023 and 2022, was approximately 34.1 million and 34.0 million, respectively and for the nine months ended September 30, 2023 and 2022, was approximately 34.0 million and 34.0 million, respectively.

The Company previously issued 708,035 limited partnership units related to the contribution of Twinbrook Quarter that were held in escrow as of September 30, 2023 and were released on October 18, 2023, as scheduled. Prior to the escrow release date, the units were not eligible to receive distributions from the Operating Partnership.

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

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

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

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

At September 30, 2023, the Company had a $525.0 million senior unsecured credit facility (the “Credit Facility”) comprised of a $425.0 million revolving credit facility and a $100.0 million term loan. The revolving credit facility matures on August 29, 2025, and may be extended by the Company for one additional year, subject to satisfaction of certain conditions. The term loan matures on February 26, 2027. Interest accrues at the Secured Overnight Financing Rate (“SOFR”) plus 10 basis points plus an applicable spread, which is determined by certain leverage tests. As of September 30, 2023, the applicable spread for borrowings was 140 basis points related to the revolving credit facility and 135 basis points related to the term loan. Letters of credit may be issued under the Credit Facility. On September 30, 2023, based on the value of the Company’s unencumbered properties calculated in accordance with the terms of the Credit Facility, approximately $110.5 million was available and undrawn under the Credit Facility, $351.0 million was outstanding and approximately $185,000 was committed for letters of credit.

On August 23, 2022, the Company entered into two floating-to-fixed interest rate swap agreements to manage the interest rate risk associated with $100.0 million of its variable-rate debt. The effective date of each swap agreement is October 3, 2022 and each has a $50.0 million notional amount. One agreement terminates on October 1, 2027 and effectively fixes SOFR at 2.96%. The other agreement terminates on October 1, 2030 and effectively fixes SOFR at 2.91%. Because the interest-rate swaps effectively fix SOFR for $100.0 million of variable-rate debt, unless otherwise indicated, $100.0 million of variable-rate debt is being treated as fixed-rate debt for disclosure purposes beginning September 30, 2022. The Company has designated the agreements as cash flow hedges for accounting purposes.

As of September 30, 2023, the fair value of the interest-rate swaps totaled approximately $6.6 million, which is included in Other assets in the Consolidated Balance Sheets. The change in value during the period is reflected in Other Comprehensive Income in the Consolidated Statements of Comprehensive Income.

On March 8, 2023, the Company closed on a 10-year, non-recourse, $15.3 million mortgage secured by BJ’s Wholesale Club in Alexandria, Virginia. The loan matures in 2033, bears interest at a fixed-rate of 6.07%, requires monthly principal and interest payments of $99,200 based on a 25-year amortization schedule and requires a final principal payment of $11.7 million at maturity. Proceeds were used to repay the remaining balance of approximately $9.3 million on the existing mortgage and reduce the outstanding balance of the Credit Facility.

During the second quarter of 2023, the Company commenced drawing on its $145.0 million construction-to-permanent loan related to the residential and retail portions of Phase I of the Twinbrook Quarter development project. As of September 30, 2023, the balance on the loan was $50.8 million, net of unamortized deferred debt costs.

Saul Centers and certain consolidated subsidiaries of the Operating Partnership have guaranteed the payment obligations of the Operating Partnership under the Credit Facility. The Operating Partnership is the guarantor of (a) the construction-to-permanent loan secured by Twinbrook Quarter Phase I (approximately $53.3 million at September 30, 2023), (b) the mortgage secured by Kentlands Place, Kentlands Square I and Kentlands Pad (totaling $27.5 million at September 30, 2023), (c) a portion of the mortgage secured by The Waycroft (approximately $23.6 million of the $150.0 million outstanding balance at September 30, 2023), (d) the mortgage secured by Ashbrook Marketplace (approximately $20.4 million at September 30, 2023)

and (e) a portion of the mortgage secured by Avenel Business Park (approximately $6.3 million of the $21.9 million outstanding balance at September 30, 2023). All other notes payable are non-recourse.

The principal amount of the Company’s outstanding debt totaled approximately $1.36 billion at September 30, 2023, of which approximately $1.11 billion was fixed-rate debt and approximately $251.0 million was unhedged variable rate debt outstanding under the Credit Facility. The carrying amount of the properties collateralizing the notes payable totaled approximately $1.36 billion as of September 30, 2023.

At December 31, 2022, the principal amount of the Company’s outstanding debt totaled approximately $1.24 billion, of which $1.07 billion was fixed rate debt and $164.0 million was unhedged variable rate debt outstanding under the Credit Facility. The carrying amount of the properties collateralizing the notes payable totaled approximately $1.04 billion as of December 31, 2022.

At September 30, 2023, the future principal payments of debt, including scheduled maturities and amortization, for years ending December 31, were as follows:

(In thousands)	Principal Payments
October 1 through December 31, 2023	$	8,424
2024	83,981
2025	303,085		(a)
2026	162,468
2027	123,792		(b)
2028	41,863
Thereafter	636,763
Principal amount	1,360,376
Unamortized deferred debt costs	17,064
Net	$	1,343,312

(a) Includes $251.0 million outstanding under the Credit Facility.

(b) Includes $100.0 million outstanding under the Credit Facility.

Deferred debt costs consist of fees and costs incurred to obtain long-term financing, construction financing and the Credit Facility. 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 totaling $17.1 million and $15.8 million, net of accumulated amortization of $9.7 million and $7.9 million, at September 30, 2023 and December 31, 2022, respectively, are reflected as a reduction of the related debt in the Consolidated Balance Sheets. At September 30, 2023, deferred debt costs totaling $2.9 million related to the Hampden House construction-to-permanent loan, which has no outstanding balance, are included in Other Assets in the Consolidated Balance Sheet. At December 31, 2022, deferred debt costs totaling $2.7 million and $3.0 million, related to the Twinbrook Quarter and Hampden House construction-to-permanent loans, respectively, which had no outstanding balance, were included in Other Assets in the Consolidated Balance Sheet.

Interest expense, net and amortization of deferred debt costs for the three and nine months ended September 30, 2023 and 2022, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Interest incurred	$	17,072	$	13,627	$	48,852	$	38,408
Amortization of deferred debt costs	564		486		1,687		1,428
Capitalized interest	(5,154)		(3,002)		(13,768)		(7,663)
Interest expense	12,482		11,111		36,771		32,173
Less: Interest income	63		8		253		11
Interest expense, net and amortization of deferred debt costs	$	12,419	$	11,103	$	36,518	$	32,162

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Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Equity

Equity

The consolidated statements of operations for the nine months ended September 30, 2023 and 2022, reflect noncontrolling interests of $12.1 million and $11.7 million, respectively, representing income attributable to limited partnership units not held by Saul Centers.

At September 30, 2023, the Company had outstanding 3.0 million depositary shares, each representing 1/100th of a share of 6.125% Series D Cumulative Redeemable Preferred Stock (the “Series D Stock”). The depositary shares are redeemable at the Company's option, in whole or in part, at the $25.00 liquidation preference, plus accrued but unpaid dividends to but not including the redemption date. The depositary shares pay an annual dividend of $1.53125 per share, equivalent to 6.125% of the $25.00 liquidation preference. The Series D 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 in 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.

At September 30, 2023, the Company had outstanding 4.4 million depositary shares, each representing 1/100th of a share of 6.000% Series E Cumulative Redeemable Preferred Stock (the “Series E Stock”). The depositary shares may be redeemed at the Company’s option, in whole or in part, on or after September 17, 2024, at the $25.00 liquidation preference, plus accrued but unpaid dividends to but not including the redemption date. The depositary shares pay an annual dividend of $1.50 per share, equivalent to 6.000% of the $25.00 liquidation preference. The Series E 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 in 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.

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 diluted, 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.

	Average Shares/Options Outstanding
	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2023	2022	2023	2022
Weighted average common stock outstanding-Basic	24,059	23,997	24,043	23,948
Effect of dilutive options	3	2	1	11
Weighted average common stock outstanding-Diluted	24,062	23,999	24,044	23,959
Non-dilutive options	1,654	1,542	1,690	1,328
Years non-dilutive options were issued	2014 through 2022	2014 through 2020 and 2022	2013 through 2022	2014 through 2020 and 2022

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Related Party Transactions

9 Months Ended

Sep. 30, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Chairman and Chief Executive Officer, the President and Chief Operating Officer, the Executive Vice President-Chief Legal and Administrative Officer and the Senior Vice President-Chief Accounting Officer and Treasurer 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 and Treasurer 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 6% of the employee’s cash compensation, subject to certain limits, were $332,100 and $318,500 for the nine months ended September 30, 2023 and 2022, respectively. All amounts contributed 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 ended September 30, 2023 and 2022, the Company credited to employee accounts $225,500 and $211,900, respectively, which is the sum of accrued earnings and up to three times the amount deferred by employees and is included in general and administrative expense. All amounts contributed by employees and credited by the Company are fully vested. The cumulative unfunded liability under this plan was $3.1 million and $3.0 million, at September 30, 2023 and December 31, 2022, respectively, and is included in accounts payable, accrued expenses and other liabilities in the Consolidated Balance Sheets.

The Company and the Saul Organization are parties to a shared services agreement (the “Agreement”) 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. Net billings by the Saul Organization for the Company’s share of these ancillary costs and expenses for the nine months ended September 30, 2023 and 2022, which included rental expense for the Company’s headquarters sublease, totaled approximately $8.0 million and $7.0 million, respectively. The amounts are generally expensed as incurred and are primarily reported as general and administrative expenses in the Consolidated Statements of Operations. As of September 30, 2023 and December 31, 2022, accounts payable, accrued expenses and other liabilities included approximately $0.9 million and $1.2 million, respectively, representing amounts due to the Saul Organization for the Company’s share of these ancillary costs and expenses.

The Company subleases its corporate headquarters space from a member of the Saul Organization. The sublease commenced in March 2002, expires in 2027, 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 $651,500 and $609,400 for the nine months ended September 30, 2023 and 2022, respectively, and is included in general and administrative expense.

The B. F. Saul Insurance Agency, 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 $417,000 and $262,000 for the nine months ended September 30, 2023 and 2022, respectively.

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

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

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

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

In 2004, the Company established a stock incentive plan (the “Plan”), as amended. Under the Plan, options are 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 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 the grant 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 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, 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 expense in general and administrative expenses.

Pursuant to the Plan, the Compensation Committee established a Deferred Compensation Plan for Directors for the benefit of the Company’s directors and their beneficiaries, which replaced a previous Deferred Compensation and Stock Plan for Directors. Annually, directors are given the ability to make an election to defer all or part of their fees and have the option to have their 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 a director elects to have their 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. During the nine months ended September 30, 2023, 7,797 shares were credited to director’s deferred fee accounts and 8,225 shares were issued. As of September 30, 2023, the director's deferred fee accounts comprise 120,396 shares.

Effective May 12, 2023, the Company granted 253,500 options to its directors and certain officers. The following table summarizes the assumptions used in the valuation of the 2023 and 2022 option grants.

	Directors				Officers
Grant date	May 12, 2023		May 13, 2022		May 12, 2023		May 13, 2022
Exercise price per share	$	33.79	$	47.90	$	33.79	$	47.90
Fair value per option	$	6.53	$	8.34	$	6.06	$	7.66
Volatility	0.319		0.300		0.288		0.271
Expected life (years)	5.0		5.0		7.0		7.0
Assumed yield	4.94%		4.90%		4.96%		4.93%
Risk-free rate	3.45%		2.89%		3.45%		2.95%

During the nine months ended September 30, 2023, stock option expense totaling $1.0 million was included in general and administrative expense in the Consolidated Statement of Operations. As of September 30, 2023, the estimated future expense related to unvested stock options was $2.5 million.

The table below summarizes the option activity for the nine months ended September 30, 2023:

	Number of Shares	Weighted Average Exercise Price per share		Aggregate Intrinsic Value
Outstanding at January 1	1,768,375	$	51.28	$	—
Granted	253,500	33.79		375,180
Exercised	—	—		—
Expired/Forfeited	(114,375)	49.67		—
Outstanding at September 30	1,907,500	49.05		375,180
Exercisable at September 30	1,229,875	52.28		44,400

The intrinsic value of stock options outstanding or exercisable 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. There were no options exercised during the nine months ended September 30, 2023. The intrinsic value of stock options exercised during the nine months ended September 30, 2022 was calculated by using the transaction price on the date of exercise and totaled $179,217. At September 29, 2023, the final trading day of the 2023 third quarter, the closing share price of $35.27 was lower than the exercise price of 1.7 million outstanding options granted in 2014 through 2022. The weighted average remaining contractual life of the Company’s outstanding and exercisable options is 5.7 years and 4.4 years, respectively.

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Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial InstrumentsThe carrying amount 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 2 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, would be approximately $885.8 million and $919.2 million, respectively, compared to the principal balance of $1.11 billion and $1.07 billion at September 30, 2023 and December 31, 2022, respectively. A change in any of the significant inputs may lead to a change in the Company’s fair value measurement of its debt.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses floating-to-fixed interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount

The change in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Such derivatives were used to hedge the variable cash flows associated with certain variable-rate debt.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve months, the Company estimates that approximately $2.3 million will be reclassified from other comprehensive income and reflected as a decrease to interest expense.

The Company carries its interest-rate swaps 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 that contain inputs that are derived from observable market data. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measure of volatility, and correlations of such inputs. As of September 30, 2023, the fair value of the interest-rate swaps was approximately $6.6 million and is included in Other assets in the Consolidated Balance Sheets. The change in value during the period is reflected in Other Comprehensive Income in the Consolidated Statements of Comprehensive Income.

The table below details the fair value and location of the interest rate swaps as of September 30, 2023 and December 31, 2022.

(In thousands)	Fair Values of Derivative Instruments
	September 30, 2023			December 31, 2022
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swaps	Other Assets	$	6,560	Other Assets	$	3,962

The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2023 and 2022.

(In thousands)	The Effect of Hedge Accounting on Other Comprehensive Income (OCI)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Amount of gain (loss) recognized in OCI	$	2,804	$	4,256	$	4,106	$	4,256
Location of gain (loss) reclassified from OCI into income	Interest expense, net and amortization of deferred debt costs		N/A		Interest expense, net and amortization of deferred debt costs		N/A
Amount of (gain) loss reclassified from OCI into income	$	(593)	$	—	$	(1,508)	$	—

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Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesNeither 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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Business Segments

9 Months Ended

Sep. 30, 2023

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 variety 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 2023 presentation.

Financial Information By Segment
(In thousands)	Shopping Centers		Mixed-Use Properties		Corporate and Other		Consolidated Totals
Three Months Ended September 30, 2023
Real estate rental operations:
Revenue	$	44,014	$	19,752	$	—	$	63,766
Expenses	(9,945)		(7,416)		—		(17,361)
Income from real estate	34,069		12,336		—		46,405
Interest expense, net and amortization of deferred debt costs	—		—		(12,419)		(12,419)
Depreciation and amortization of deferred leasing costs	(7,156)		(4,940)		—		(12,096)
General and administrative	—		—		(5,179)		(5,179)
Net income (loss)	$	26,913	$	7,396	$	(17,598)	$	16,711
Capital investment	$	3,952	$	43,949	$	—	$	47,901
Total assets	$	920,442	$	1,016,267	$	24,214	$	1,960,923
Three Months Ended September 30, 2022
Real estate rental operations:
Revenue	$	42,478	$	18,609	$	—	$	61,087
Expenses	(8,826)		(7,247)		—		(16,073)
Income from real estate	33,652		11,362		—		45,014
Interest expense, net and amortization of deferred debt costs	—		—		(11,103)		(11,103)
Depreciation and amortization of deferred leasing costs	(7,073)		(5,122)		—		(12,195)
General and administrative	—		—		(5,555)		(5,555)
Loss on early extinguishment of debt	—		—		(648)		(648)
Net income (loss)	$	26,579	$	6,240	$	(17,306)	$	15,513
Capital investment	$	2,280	$	30,315	$	—	$	32,595
Total assets	$	936,285	$	855,797	$	17,936	$	1,810,018

Financial Information By Segment
(In thousands)	Shopping Centers		Mixed-Use Properties		Corporate and Other		Consolidated Totals
Nine Months Ended September 30, 2023
Real estate rental operations:
Revenue	$	132,214	$	58,310	$	—	$	190,524
Expenses	(28,667)		(21,424)		—		(50,091)
Income from real estate	103,547		36,886		—		140,433
Interest expense, net and amortization of deferred debt costs	—		—		(36,518)		(36,518)
Depreciation and amortization of deferred leasing costs	(21,350)		(14,877)		—		(36,227)
General and administrative	—		—		(16,125)		(16,125)
Net income (loss)	$	82,197	$	22,009	$	(52,643)	$	51,563
Capital investment	$	9,840	$	137,427	$	—	$	147,267
Total assets	$	920,442	$	1,016,267	$	24,214	$	1,960,923
Nine Months Ended September 30, 2022
Real estate rental operations:
Revenue	$	128,615	$	54,909	$	—	$	183,524
Expenses	(27,102)		(20,724)		—		(47,826)
Income from real estate	101,513		34,185		—		135,698
Interest expense, net and amortization of deferred debt costs	—		—		(32,162)		(32,162)
Depreciation and amortization of deferred leasing costs	(21,300)		(15,599)		—		(36,899)
General and administrative	—		—		(15,988)		(15,988)
Loss on early extinguishment of debt	—		—		(648)		(648)
Net income (loss)	$	80,213	$	18,586	$	(48,798)	$	50,001
Capital investment	$	6,239	$	78,270	$	—	$	84,509
Total assets	$	936,285	$	855,797	$	17,936	$	1,810,018

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Subsequent Events	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsThe Company has reviewed all events and transactions for the period subsequent to September 30, 2023, and determined there are no subsequent events required to be disclosed.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Nature of Operations

The Company, which conducts all of its activities through its subsidiaries, Saul Holdings Limited Partnership, a Maryland limited partnership (the “Operating Partnership”) and two subsidiary limited partnerships (the “Subsidiary Partnerships,” and, collectively with the Operating Partnership, the “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, D.C./Baltimore metropolitan area.

As of September 30, 2023, the Company’s properties (the “Current Portfolio Properties”) consisted of 50 shopping center properties (the “Shopping Centers”), seven mixed-use properties, which are comprised of office, retail and multi-family residential uses (the “Mixed-Use Properties”) and four (non-operating) land and development properties.

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

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the accounts of Saul Centers and its subsidiaries, including the Partnerships, which are majority owned by Saul Centers. Substantially all assets and liabilities of the Company as of September 30, 2023 and December 31, 2022, are comprised of the assets and liabilities of the Operating Partnership. Debt arrangements subject to recourse are described in Note 5. All significant intercompany balances and transactions have been eliminated in consolidation.

Consolidation, Variable Interest Entity

The Operating Partnership is a variable interest entity (“VIE”) because the limited partners do not have substantive kick-out or participating rights. The Company is the primary beneficiary of the Operating Partnership because it has the power to direct its activities and the rights to absorb 72.0% of its net income. Because the Operating Partnership is consolidated into the financial statements of the Company, classification of it as a VIE has no impact on the consolidated financial statements of the Company.

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 the Company 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 the Company for the year ended December 31, 2022, which are included in its Annual Report on Form 10-K. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to those instructions. 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. The most significant estimates and assumptions relate to collectability of operating lease receivables and impairment of real estate properties. Actual results could differ from those estimates.

Accounts Receivable, Accrued Income and Allowance for Doubtful Accounts

Accounts Receivable, Accrued Income and Allowance for Doubtful AccountsAccounts receivable are primarily comprised of rental and reimbursement billings due from tenants, and straight-line rent receivables representing the cumulative amount of adjustments necessary to present rental income on a straight-line basis. Individual leases are assessed for collectability and, upon the determination that the collection of rents is not probable, accrued rent and accounts receivable are charged off, and the charge off is reflected as an adjustment to rental revenue. Revenue from leases where collection is not probable is recorded on a cash basis until collectability is determined to be probable. Further, we assess whether operating lease receivables, at the portfolio level, are appropriately valued based upon an analysis of balances outstanding, historical bad debt levels and current economic trends.

Reclassifications

Reclassifications

Certain reclassifications have been made to the prior year financial statements to conform to the presentation used as of and for the nine months ended September 30, 2023.

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Real Estate (Tables)

9 Months Ended

Sep. 30, 2023

Real Estate [Abstract]

Schedule of Construction in Progress

Construction in progress as of September 30, 2023 and December 31, 2022, is composed of the following:

(In thousands)	September 30, 2023		December 31, 2022
Twinbrook Quarter (1)	$	328,862	$	227,672
Hampden House (2)	120,787		80,704
Other	18,290		13,850
Total	$	467,939	$	322,226

(1) Includes capitalized interest of $22.4 million and $12.4 million, as of September 30, 2023 and December 31, 2022, respectively.

(2) Includes capitalized interest of $12.4 million and $8.7 million, as of September 30, 2023 and December 31, 2022, respectively.

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

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Scheduled Maturities of Debt, Including Scheduled Principal Amortization

At September 30, 2023, the future principal payments of debt, including scheduled maturities and amortization, for years ending December 31, were as follows:

(In thousands)	Principal Payments
October 1 through December 31, 2023	$	8,424
2024	83,981
2025	303,085		(a)
2026	162,468
2027	123,792		(b)
2028	41,863
Thereafter	636,763
Principal amount	1,360,376
Unamortized deferred debt costs	17,064
Net	$	1,343,312

(a) Includes $251.0 million outstanding under the Credit Facility.

(b) Includes $100.0 million outstanding under the Credit Facility.

Interest Expense and Amortization of Deferred Debt Costs

Interest expense, net and amortization of deferred debt costs for the three and nine months ended September 30, 2023 and 2022, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2023		2022		2023		2022
Interest incurred	$	17,072	$	13,627	$	48,852	$	38,408
Amortization of deferred debt costs	564		486		1,687		1,428
Capitalized interest	(5,154)		(3,002)		(13,768)		(7,663)
Interest expense	12,482		11,111		36,771		32,173
Less: Interest income	63		8		253		11
Interest expense, net and amortization of deferred debt costs	$	12,419	$	11,103	$	36,518	$	32,162

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Equity (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of Weighted Average Number of Shares

The following table sets forth, for the indicated periods, weighted averages of the number of common shares outstanding, basic and diluted, 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.

	Average Shares/Options Outstanding
	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2023	2022	2023	2022
Weighted average common stock outstanding-Basic	24,059	23,997	24,043	23,948
Effect of dilutive options	3	2	1	11
Weighted average common stock outstanding-Diluted	24,062	23,999	24,044	23,959
Non-dilutive options	1,654	1,542	1,690	1,328
Years non-dilutive options were issued	2014 through 2022	2014 through 2020 and 2022	2013 through 2022	2014 through 2020 and 2022

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Stock-based Employee Compensation, Stock Option Plans, and Deferred Compensation Plan for Directors (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Options Issued

The following table summarizes the assumptions used in the valuation of the 2023 and 2022 option grants.

	Directors				Officers
Grant date	May 12, 2023		May 13, 2022		May 12, 2023		May 13, 2022
Exercise price per share	$	33.79	$	47.90	$	33.79	$	47.90
Fair value per option	$	6.53	$	8.34	$	6.06	$	7.66
Volatility	0.319		0.300		0.288		0.271
Expected life (years)	5.0		5.0		7.0		7.0
Assumed yield	4.94%		4.90%		4.96%		4.93%
Risk-free rate	3.45%		2.89%		3.45%		2.95%

Summary of Option Activity

The table below summarizes the option activity for the nine months ended September 30, 2023:

	Number of Shares	Weighted Average Exercise Price per share		Aggregate Intrinsic Value
Outstanding at January 1	1,768,375	$	51.28	$	—
Granted	253,500	33.79		375,180
Exercised	—	—		—
Expired/Forfeited	(114,375)	49.67		—
Outstanding at September 30	1,907,500	49.05		375,180
Exercisable at September 30	1,229,875	52.28		44,400

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below details the fair value and location of the interest rate swaps as of September 30, 2023 and December 31, 2022.

(In thousands)	Fair Values of Derivative Instruments
	September 30, 2023			December 31, 2022
Derivative Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swaps	Other Assets	$	6,560	Other Assets	$	3,962

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2023 and 2022.

(In thousands)	The Effect of Hedge Accounting on Other Comprehensive Income (OCI)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Amount of gain (loss) recognized in OCI	$	2,804	$	4,256	$	4,106	$	4,256
Location of gain (loss) reclassified from OCI into income	Interest expense, net and amortization of deferred debt costs		N/A		Interest expense, net and amortization of deferred debt costs		N/A
Amount of (gain) loss reclassified from OCI into income	$	(593)	$	—	$	(1,508)	$	—

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Business Segments (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Business Segments

Financial Information By Segment
(In thousands)	Shopping Centers		Mixed-Use Properties		Corporate and Other		Consolidated Totals
Three Months Ended September 30, 2023
Real estate rental operations:
Revenue	$	44,014	$	19,752	$	—	$	63,766
Expenses	(9,945)		(7,416)		—		(17,361)
Income from real estate	34,069		12,336		—		46,405
Interest expense, net and amortization of deferred debt costs	—		—		(12,419)		(12,419)
Depreciation and amortization of deferred leasing costs	(7,156)		(4,940)		—		(12,096)
General and administrative	—		—		(5,179)		(5,179)
Net income (loss)	$	26,913	$	7,396	$	(17,598)	$	16,711
Capital investment	$	3,952	$	43,949	$	—	$	47,901
Total assets	$	920,442	$	1,016,267	$	24,214	$	1,960,923
Three Months Ended September 30, 2022
Real estate rental operations:
Revenue	$	42,478	$	18,609	$	—	$	61,087
Expenses	(8,826)		(7,247)		—		(16,073)
Income from real estate	33,652		11,362		—		45,014
Interest expense, net and amortization of deferred debt costs	—		—		(11,103)		(11,103)
Depreciation and amortization of deferred leasing costs	(7,073)		(5,122)		—		(12,195)
General and administrative	—		—		(5,555)		(5,555)
Loss on early extinguishment of debt	—		—		(648)		(648)
Net income (loss)	$	26,579	$	6,240	$	(17,306)	$	15,513
Capital investment	$	2,280	$	30,315	$	—	$	32,595
Total assets	$	936,285	$	855,797	$	17,936	$	1,810,018

Financial Information By Segment
(In thousands)	Shopping Centers		Mixed-Use Properties		Corporate and Other		Consolidated Totals
Nine Months Ended September 30, 2023
Real estate rental operations:
Revenue	$	132,214	$	58,310	$	—	$	190,524
Expenses	(28,667)		(21,424)		—		(50,091)
Income from real estate	103,547		36,886		—		140,433
Interest expense, net and amortization of deferred debt costs	—		—		(36,518)		(36,518)
Depreciation and amortization of deferred leasing costs	(21,350)		(14,877)		—		(36,227)
General and administrative	—		—		(16,125)		(16,125)
Net income (loss)	$	82,197	$	22,009	$	(52,643)	$	51,563
Capital investment	$	9,840	$	137,427	$	—	$	147,267
Total assets	$	920,442	$	1,016,267	$	24,214	$	1,960,923
Nine Months Ended September 30, 2022
Real estate rental operations:
Revenue	$	128,615	$	54,909	$	—	$	183,524
Expenses	(27,102)		(20,724)		—		(47,826)
Income from real estate	101,513		34,185		—		135,698
Interest expense, net and amortization of deferred debt costs	—		—		(32,162)		(32,162)
Depreciation and amortization of deferred leasing costs	(21,300)		(15,599)		—		(36,899)
General and administrative	—		—		(15,988)		(15,988)
Loss on early extinguishment of debt	—		—		(648)		(648)
Net income (loss)	$	80,213	$	18,586	$	(48,798)	$	50,001
Capital investment	$	6,239	$	78,270	$	—	$	84,509
Total assets	$	936,285	$	855,797	$	17,936	$	1,810,018

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Organization, Formation and Structure (Details)	9 Months Ended
	Sep. 30, 2023 property subsidiary store
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Percentage of taxable income distribution of shareholders	90.00%
Number of subsidiaries | subsidiary	2
Number of shopping centers | store	33
Saul Holdings Limited Partnership
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Percentage of ownership in operating partnership (as a percent)	72.00%
Giant Food
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of shopping centers | store	11
Giant Food | Revenue | Customer Concentration Risk
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Percentage of total revenue (as a percent)	4.90%
No Individual Tenant | Revenue | Customer Concentration Risk
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Percentage of total revenue (as a percent)	2.50%
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	7
Non-operating Development Properties
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of real estate properties	4

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Summary of Significant Accounting Policies - Narrative (Details) $ in Millions	Sep. 30, 2023 USD ($)
Accounting Policies [Abstract]
Accrued rent	$ 9.4
Accrued rent, write off	0.3
Accrued rent, amount not yet come due	$ 0.4

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Real Estate - Schedule of Construction in Progress (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Real Estate [Line Items]
Construction in progress	$ 467,939	$ 322,226
Twinbrook Quarter
Real Estate [Line Items]
Construction in progress	328,862	227,672
Accumulated capitalized interest costs	22,400	12,400
Hampden House
Real Estate [Line Items]
Construction in progress	120,787	80,704
Accumulated capitalized interest costs	12,400	8,700
Other
Real Estate [Line Items]
Construction in progress	$ 18,290	$ 13,850

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Real Estate Transactions - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Real Estate [Line Items]
Right-of-use asset	$ 2,700,000
Operating lease liability	2,700,000
Deferred leasing costs, net	23,147,000		$ 22,388,000
Accumulated amortization deferred leasing cost	53,300,000		$ 51,300,000
Depreciation expense	33,100,000	$ 33,700,000
Repairs and maintenance expense	11,300,000	11,100,000
Impairment of real estate	$ 0
Minimum
Real Estate [Line Items]
Operating lease term of contract	1 year
Maximum
Real Estate [Line Items]
Operating lease term of contract	15 years
Building | Minimum
Real Estate [Line Items]
Estimated useful life	35 years
Building | Maximum
Real Estate [Line Items]
Estimated useful life	50 years
Building Improvements | Maximum
Real Estate [Line Items]
Estimated useful life	20 years
Lease Acquisition Costs
Real Estate [Line Items]
Amortization of intangible assets	$ 3,100,000	$ 3,200,000

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Noncontrolling Interests - Holders of Convertible Limited Partnership Units in the Operating Partnership (Details) - shares		3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Noncontrolling Interest [Line Items]
Limited partnership units (in shares)	8,800,000	8,800,000		8,800,000
Leasehold Interest Contributed In Contribution Agreement
Noncontrolling Interest [Line Items]
Number of partnership units issued in transaction (in shares)	469,740
Noncontrolling Interests
Noncontrolling Interest [Line Items]
Limited partnership units, conversion ratio	1	1		1
Outstanding stock percent that should be acquired for rights to be exercised (as a percent)	39.90%	39.90%		39.90%
Limited partnership units convertible into shares of common stock, eligible for conversion (in shares)	825,000	825,000		825,000
Fully converted partnership units and diluted weighted average shares outstanding		34,100,000	34,000,000	34,000,000	34,000,000
Partners capital account units placed In escrow (in shares)				708,035
Saul Holdings Limited Partnership
Noncontrolling Interest [Line Items]
Percentage of ownership interest of noncontrolling interest (as a percent)	26.60%	26.60%		26.60%
Saul Holdings Limited Partnership | Noncontrolling Interests
Noncontrolling Interest [Line Items]
Percentage of ownership interest of noncontrolling interest (as a percent)	28.00%	28.00%		28.00%
Limited partnership units, conversion ratio	1	1		1
Third Party Investor
Noncontrolling Interest [Line Items]
Percentage of ownership interest of noncontrolling interest (as a percent)	1.40%	1.40%		1.40%

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Notes Payable, Bank Credit Facility, Interest and Amortization of Deferred Debt Costs - Narrative (Details)		9 Months Ended
	Mar. 08, 2023 USD ($)	Sep. 30, 2023 USD ($)	Oct. 01, 2030	Oct. 01, 2027	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Aug. 23, 2022 USD ($) swap
Debt Instrument [Line Items]
Revolving credit facility payable, net		$ 249,521,000				$ 161,941,000
Number of interest rate swaps | swap							2
Construction loan payable, net		50,760,000				0
Long-term debt		1,343,312,000
Principal amount		1,360,376,000				1,240,000,000
Debt outstanding with fixed-rate		1,110,000,000				1,070,000,000.00
Debt outstanding with variable-rate		251,000,000				164,000,000
Carrying value of properties collateralizing mortgage notes		1,360,000,000				1,040,000,000.00
Unamortized deferred debt costs		17,064,000				15,800,000
Debt issuance costs amortization		9,700,000				7,900,000
Interest rate swaps
Debt Instrument [Line Items]
Derivative asset		6,600,000
Twinbrook Quarter
Debt Instrument [Line Items]
Long-term debt		53,300,000
Unamortized deferred debt costs						2,700,000
Avenel Business Park
Debt Instrument [Line Items]
Guarantor obligations, maximum exposure		6,300,000
Hampden House
Debt Instrument [Line Items]
Unamortized deferred debt costs		$ 2,900,000				$ 3,000,000
Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate spread on LIBOR		0.10%
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate spread on LIBOR		1.40%
Term Facility | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Interest rate spread on LIBOR		1.35%
Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity		$ 110,500,000
Revolving credit facility payable, net		351,000,000
Letter of Credit
Debt Instrument [Line Items]
Revolving credit facility payable, net		185,000
Line of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		525,000,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		425,000,000
Line of Credit | Term Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 100,000,000
Line of credit facility, extension term		1 year
Line of Credit | Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility payable, net		$ 251,000,000
Secured Debt | Term Loan
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 100,000,000
Secured Debt | Term Loan | Agreement Ending October 1, 2030
Debt Instrument [Line Items]
Derivative, notional amount							50,000,000
Secured Debt | Term Loan | Agreement Ending October 1, 2027
Debt Instrument [Line Items]
Derivative, notional amount							$ 50,000,000
Secured Debt | Secured Overnight Financing Rate (SOFR) | Term Loan | Agreement Ending October 1, 2030 | Forecast
Debt Instrument [Line Items]
Derivative, fixed interest rate (as a percent)			2.91%
Secured Debt | Secured Overnight Financing Rate (SOFR) | Term Loan | Agreement Ending October 1, 2027 | Forecast
Debt Instrument [Line Items]
Derivative, fixed interest rate (as a percent)				2.96%
Mortgages
Debt Instrument [Line Items]
Repayments of debt	$ 9,300,000
Mortgages | BJ’s Wholesale Club
Debt Instrument [Line Items]
Long-term debt, term	10 years
Debt instrument, face amount	$ 15,300,000
Debt instrument, interest rate, stated percentage	6.07%
Debt instrument, periodic payment	$ 99,200
Amortization period	25 years
Debt instrument, payment at maturity	$ 11,700,000
Mortgages | Kentlands Place Mortgage
Debt Instrument [Line Items]
Long-term debt		27,500,000
Mortgages | The Waycroft Mortgage
Debt Instrument [Line Items]
Long-term debt		150,000,000
Guarantor obligations, maximum exposure		23,600,000
Mortgages | Ashbrook Marketplace Mortgage
Debt Instrument [Line Items]
Long-term debt		20,400,000
Mortgages | Avenel Business Park
Debt Instrument [Line Items]
Long-term debt		21,900,000
Construction Loans | Construction-to-Permanent Loan
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 145,000,000
Construction loan payable, net		$ 50,800,000

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Notes Payable, Bank Credit Facility, Interest and Amortization of Deferred Debt Costs - Scheduled Maturities of Debt, Including Scheduled Principal Amortization (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Principal Payments
October 1 through December 31, 2023	$ 8,424,000
2024	83,981,000
2025	303,085,000
2026	162,468,000
2027	123,792,000
2028	41,863,000
Thereafter	636,763,000
Principal amount	1,360,376,000	$ 1,240,000,000
Unamortized deferred debt costs	17,064,000	15,800,000
Net	1,343,312,000
Outstanding line of credit	249,521,000	$ 161,941,000
Line of Credit
Principal Payments
Line of credit facility, maximum borrowing capacity	525,000,000
Unsecured Revolving Credit Facility
Principal Payments
Outstanding line of credit	351,000,000
Unsecured Revolving Credit Facility | Line of Credit
Principal Payments
Outstanding line of credit	251,000,000
Term Facility | Line of Credit
Principal Payments
Line of credit facility, maximum borrowing capacity	$ 100,000,000

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Notes Payable, Bank 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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Disclosure [Abstract]
Interest incurred	$ 17,072	$ 13,627	$ 48,852	$ 38,408
Amortization of deferred debt costs	564	486	1,687	1,428
Capitalized interest	(5,154)	(3,002)	(13,768)	(7,663)
Interest expense	12,482	11,111	36,771	32,173
Less: Interest income	63	8	253	11
Interest expense, net and amortization of deferred debt costs	$ 12,419	$ 11,103	$ 36,518	$ 32,162

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Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Class of Stock [Line Items]
Income attributable to noncontrolling interests	$ 3,892	$ 3,563	$ 12,080	$ 11,670
Series D Cumulative Redeemable, 30,000 shares issued and outstanding
Class of Stock [Line Items]
Depositary shares outstanding (in shares)	3.0		3.0
Percentage of redeemable preferred stock (as a percent)			6.125%
Cumulative redeemable preferred stock liquidation preference (in usd per share)	$ 25.00		$ 25.00
Annual dividend on depositary shares (in usd per share)			$ 1.53125
Depository shares to cumulative redeemable preferred stock ratio			1.00%
Series E Cumulative Redeemable, 44,000 shares issued and outstanding
Class of Stock [Line Items]
Depositary shares outstanding (in shares)	4.4		4.4
Percentage of redeemable preferred stock (as a percent)			6.00%
Cumulative redeemable preferred stock liquidation preference (in usd per share)	$ 25.00		$ 25.00
Annual dividend on depositary shares (in usd per share)			$ 1.50
Depository shares to cumulative redeemable preferred stock ratio			1.00%

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Equity - Per Share Data (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Class of Stock [Line Items]
Weighted average common stock outstanding-Basic	24,059	23,997	24,043	23,948
Effect of dilutive options	3	2	1	11
Weighted average common stock outstanding-Diluted	24,062	23,999	24,044	23,959
Non-dilutive options
Class of Stock [Line Items]
Non-dilutive options	1,654	1,542	1,690	1,328

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Related Party Transactions (Details)	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Company contribution to a multi employer 401K plan at discretionary amount of employee's cash compensation, maximum percentage (as a percent)	6.00%
Company contribution to a multi employer 401K plan at discretionary amount of employee's cash compensation, amount	$ 332,100	$ 318,500
Deferred compensation, employee contribution (as a percent)	2.00%
Deferred compensation, company contribution	$ 225,500	$ 211,900
Deferred compensation, company contribution percentage	3	3
Deferred compensation, cumulative unfunded liability	$ 3,100,000		$ 3,000,000
Accounts payable, accrued expenses and other liabilities	$ 60,819,000		42,978,000
Related Party
Related Party Transaction [Line Items]
Percentage of annual increase in base rent (as a percent)	3.00%
Rent expense	$ 651,500	$ 609,400
Insurance commissions and fees expense	417,000	262,000
Related Party | Shared Services Agreement
Related Party Transaction [Line Items]
Ancillary costs and expenses	8,000,000	$ 7,000,000
Accounts payable, accrued expenses and other liabilities	$ 900,000		$ 1,200,000

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Stock-based Employee Compensation, Stock Option Plans, and Deferred Compensation Plan for Directors - Narrative (Details) - USD ($)			3 Months Ended						9 Months Ended
	Jun. 30, 2023	May 12, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 29, 2023
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Deferred compensation (in shares)	120,396								7,797
Shares due to exercise of employee stock options and issuance of directors' deferred stock			895,000	3,104,000	699	3,191,000	19,618,000	8,007
Share-based payment arrangement, expense									$ 1,000,000
Future expense			$ 2,500,000						$ 2,500,000
Exercised (in shares)									0
Exercised									$ 0	$ 179,217
Closing share price (in usd per share)											$ 35.27
Share-based compensation arrangement by share-based payment award, options, grants since inception (in shares)											1,700,000
Weighted average remaining contractual life of the Company's outstanding options									5 years 8 months 12 days
Weighted average remaining contractual life of the Company's exercisable options									4 years 4 months 24 days
Granted (in shares)									253,500
Common Stock
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Shares due to exercise of employee stock options and issuance of directors' deferred stock									8,225
Director And Certain Officers
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Granted (in shares)		253,500
Employee Stock Option
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Expiration period									10 years
Employee Stock Option | Officers
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Award vesting period									4 years

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Stock-based Employee Compensation, Stock Option Plans, and Deferred Compensation Plan for Directors - Stock Options Issued (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Exercise price (in usd per share)	$ 0
Directors | May 12, 2023
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Exercise price (in usd per share)	33.79
Fair value (in usd per share)	$ 6.53
Volatility	31.90%
Expected life (years)	5 years
Assumed yield	4.94%
Risk-free rate	3.45%
Directors | May 13, 2022
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Exercise price (in usd per share)	$ 47.90
Fair value (in usd per share)	$ 8.34
Volatility	30.00%
Expected life (years)	5 years
Assumed yield	4.90%
Risk-free rate	2.89%
Officers | May 12, 2023
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Exercise price (in usd per share)	$ 33.79
Fair value (in usd per share)	$ 6.06
Volatility	28.80%
Expected life (years)	7 years
Assumed yield	4.96%
Risk-free rate	3.45%
Officers | May 13, 2022
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items]
Exercise price (in usd per share)	$ 47.90
Fair value (in usd per share)	$ 7.66
Volatility	27.10%
Expected life (years)	7 years
Assumed yield	4.93%
Risk-free rate	2.95%

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Stock-based Employee Compensation, Stock Option Plans, and Deferred Compensation Plan for Directors - Summary of Option Activity (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Number of Shares
Outstanding at beginning of period (in shares)	1,768,375
Granted (in shares)	253,500
Exercised (in shares)	0
Expired/Forfeited (in shares)	(114,375)
Outstanding at end of period (in shares)	1,907,500
Exercisable at end of period (in shares)	1,229,875
Weighted Average Exercise Price per share
Outstanding at beginning of period (in usd per share)	$ 51.28
Granted (in usd per share)	33.79
Exercised (in usd per share)	0
Expired/Forfeited (in usd per share)	49.67
Outstanding at end of period (in usd per share)	49.05
Exercisable at end of period (in usd per share)	$ 52.28
Aggregate Intrinsic Value
Outstanding at beginning of period	$ 0
Granted	375,180
Exercised	0	$ 179,217
Expired/Forfeited	0
Outstanding at end of period	375,180
Exercisable at end of period	$ 44,400

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Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Notes payable, aggregate fair value	$ 885.8	$ 919.2
Notes payable, principal balance	$ 1,110.0	$ 1,070.0

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Derivatives and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Fair Value of Financial Instruments [Line Items]
Amount of (gain) loss reclassified from OCI into income	$ (593)	$ 0	$ (1,508)	$ 0
Interest rate swaps
Fair Value of Financial Instruments [Line Items]
Amount of (gain) loss reclassified from OCI into income			2,300
Derivative asset	$ 6,600		$ 6,600

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Derivatives and Hedging Activities - Fair Value and Location of the Interest Rate Swaps, and the Effect of Designating the Interest Rate Swaps as Cash Flow Hedges (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Interest rate swaps | Other Assets
Fair Value of Financial Instruments [Line Items]
Fair Value	$ 6,560	$ 3,962

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Derivatives and Hedging Activities - Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amount of gain (loss) recognized in OCI	$ 2,804	$ 4,256	$ 4,106	$ 4,256
Amount of (gain) loss reclassified from OCI into income	$ (593)	$ 0	$ (1,508)	$ 0

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Business Segments - Narrative (Details)	9 Months Ended
	Sep. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable business segments	2

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Business Segments - Schedule of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Real estate rental operations:
Revenue	$ 63,766			$ 61,087			$ 190,524	$ 183,524
Expenses	(17,361)			(16,073)			(50,091)	(47,826)
Income from real estate	46,405			45,014			140,433	135,698
Interest expense, net and amortization of deferred debt costs	(12,419)			(11,103)			(36,518)	(32,162)
Depreciation and amortization of deferred leasing costs	(12,096)			(12,195)			(36,227)	(36,899)
General and administrative	(5,179)			(5,555)			(16,125)	(15,988)
Loss on early extinguishment of debt	0			(648)			0	(648)
Net Income	16,711	$ 17,189	$ 17,663	15,513	$ 16,997	$ 17,491	51,563	50,001
Capital investment	47,901			32,595			147,267	84,509
Total assets	1,960,923			1,810,018			1,960,923	1,810,018	$ 1,833,302
Operating Segments | Shopping Centers
Real estate rental operations:
Revenue	44,014			42,478			132,214	128,615
Expenses	(9,945)			(8,826)			(28,667)	(27,102)
Income from real estate	34,069			33,652			103,547	101,513
Interest expense, net and amortization of deferred debt costs	0			0			0	0
Depreciation and amortization of deferred leasing costs	(7,156)			(7,073)			(21,350)	(21,300)
General and administrative	0			0			0	0
Loss on early extinguishment of debt				0				0
Net Income	26,913			26,579			82,197	80,213
Capital investment	3,952			2,280			9,840	6,239
Total assets	920,442			936,285			920,442	936,285
Operating Segments | Mixed-Use Properties
Real estate rental operations:
Revenue	19,752			18,609			58,310	54,909
Expenses	(7,416)			(7,247)			(21,424)	(20,724)
Income from real estate	12,336			11,362			36,886	34,185
Interest expense, net and amortization of deferred debt costs	0			0			0	0
Depreciation and amortization of deferred leasing costs	(4,940)			(5,122)			(14,877)	(15,599)
General and administrative	0			0			0	0
Loss on early extinguishment of debt				0				0
Net Income	7,396			6,240			22,009	18,586
Capital investment	43,949			30,315			137,427	78,270
Total assets	1,016,267			855,797			1,016,267	855,797
Corporate and Other
Real estate rental operations:
Revenue	0			0			0	0
Expenses	0			0			0	0
Income from real estate	0			0			0	0
Interest expense, net and amortization of deferred debt costs	(12,419)			(11,103)			(36,518)	(32,162)
Depreciation and amortization of deferred leasing costs	0			0			0	0
General and administrative	(5,179)			(5,555)			(16,125)	(15,988)
Loss on early extinguishment of debt				(648)				(648)
Net Income	(17,598)			(17,306)			(52,643)	(48,798)
Capital investment	0			0			0	0
Total assets	$ 24,214			$ 17,936			$ 24,214	$ 17,936