BETHESDA, Md. - Saul Centers, Inc. (NYSE:BFS), a real estate investment trust (REIT), announced on Thursday its decision to maintain its quarterly dividend at $0.59 per common share. The dividend is scheduled for payment on October 31, 2024, to shareholders of record as of October 15, 2024. This rate remains consistent with the dividend paid in the previous quarter and the same quarter of the prior year.
In addition to the common stock dividend, Saul Centers also declared dividends on its preferred stock. Holders of the 6.125% Series D Cumulative Redeemable Preferred Stock will receive $0.3828125 per depositary share, and holders of the 6.000% Series E Cumulative Redeemable Preferred Stock will receive $0.3750000 per depositary share. These dividends are due to be paid on October 15, 2024, to shareholders who are on record as of October 1, 2024.
Saul Centers operates as a self-managed, self-administered equity REIT, with its headquarters located in Bethesda, Maryland. The company's portfolio comprises 61 properties, including 57 community and neighborhood shopping centers and mixed-use properties with approximately 9.8 million square feet of leasable area, as well as four land and development properties. A significant portion of the company's property operating income, over 85%, is sourced from the metropolitan Washington, DC/Baltimore area.
The press release also included a safe harbor statement, cautioning that some matters discussed might be considered forward-looking statements within the federal securities laws' meaning. Saul Centers claims the protection of the safe harbor for these statements as provided by the Private Securities Litigation Reform Act of 1995. However, the company acknowledges that actual results could differ from expectations due to various factors, including economic conditions, tenant bankruptcies, financing risks, changes in laws and regulations, interest rate volatility, and other risks detailed in their recent financial reports.
The information provided is based on a press release statement from Saul Centers, Inc.
In other recent news, Saul Centers has been the subject of updated analysis from B.Riley. Following a review of the company's recent quarterly results and the current economic climate, the firm maintained a Buy rating on Saul Centers and increased the price target to $45.50 from $43.50. The company's second-quarter performance saw a 1.45% growth in same-property net operating income for its shopping center portfolio, and an unexpected upside in its office real estate segment.
Saul Centers is also making strides in its leased but not occupied spaces, potentially adding up to $5.3 million of annual base rent. Further, two major mixed-use development projects are underway, with the first, Twinbrook, commencing residential leasing in the fourth quarter of 2024.
Despite these favorable developments, B.Riley also highlighted potential risks associated with the current macroeconomic environment. It noted that an economic downturn could impact the leasing activities at Saul Centers' mixed-use developments, especially during their initial lease-up and stabilization phases over the next one to three years. These are the recent developments for Saul Centers, as reported by B.Riley.
InvestingPro Insights
As Saul Centers, Inc. (NYSE:BFS) commits to maintaining its quarterly dividend, investors may find it noteworthy that the company has demonstrated a strong track record of dividend reliability. According to InvestingPro Tips, Saul Centers has not only raised its dividend for three consecutive years but has also maintained dividend payments for an impressive 32 consecutive years. This consistency is a positive indicator for income-focused shareholders who prioritize steady dividend income.
From a valuation standpoint, Saul Centers is trading at a high price-to-earnings (P/E) ratio of 22.79, suggesting that its stock price is relatively high compared to its near-term earnings growth. The company's price-to-book (P/B) ratio also stands at a lofty 8.61, as per the last twelve months data up to Q2 2024, indicating that the stock may be pricing in a premium compared to the company's net asset value.
InvestingPro Data further reveals that Saul Centers has experienced a revenue growth of 5.56% over the last twelve months leading up to Q2 2024. Moreover, the company's gross profit margin remains robust at 73.55%, reflecting a strong ability to manage its cost of goods sold and maintain profitability.
For those looking to delve deeper into the financial health and future prospects of Saul Centers, additional InvestingPro Tips are available, providing a comprehensive analysis of the company's performance and investment potential.
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