Analogy 1: Kimco Realty for the Mid-Atlantic retail market.

Analogy 2: Federal Realty Investment Trust, but with a tighter Mid-Atlantic focus.

Saul Centers (symbol: BFS) is a real estate investment trust (REIT) that primarily generates revenue by leasing retail and mixed-use properties to other companies. Its major customers are its tenants.

Based on their recent investor materials and SEC filings, Saul Centers' top customers by annual base rent typically include a diversified group of necessity-based retailers, primarily supermarket chains. The following are some of their major tenant companies:

• Giant Food: A supermarket chain that is a subsidiary of Ahold Delhaize (Euronext Amsterdam: AD.AS). Giant Food leases significant retail space from Saul Centers.
• Safeway: A supermarket chain that is a subsidiary of Albertsons Companies, Inc. (NYSE: ACI). Safeway is a key anchor tenant in many of Saul Centers' properties.
• Whole Foods Market: A supermarket chain that is a subsidiary of Amazon.com, Inc. (NASDAQ: AMZN). Whole Foods Market operates stores in Saul Centers' portfolio.
• Giant Eagle: A privately held supermarket chain and a major tenant in some of Saul Centers' properties.
• Wegmans Food Markets, Inc.: A privately held supermarket chain, also a significant tenant for Saul Centers.

Bernard F. Saul II, Chairman and Chief Executive Officer

Bernard F. Saul II has served as Chairman and Chief Executive Officer of Saul Centers since June 1993. He inherited his grandfather's property management firm, B.F. Saul Company, and expanded it into a real estate empire. He has been the Chairman of the Board and Chief Executive Officer of B. F. Saul Company since 1969. He also founded and was Chairman of the Board and Chief Executive Officer of Chevy Chase Bank, F.S.B., from 1969 to 2009, which he sold to Capital One in 2009 for approximately $500 million, with another source indicating over $4 billion. He holds a bachelor's degree from Villanova University and an LLB from the University of Virginia School of Law.

Carlos L. Heard, Senior Vice President - Chief Financial Officer

Carlos L. Heard serves as the Senior Vice President - Chief Financial Officer of Saul Centers, Inc.

D. Todd Pearson, President and Chief Operating Officer

D. Todd Pearson is the President and Chief Operating Officer of Saul Centers, Inc. His primary responsibilities include identifying, acquiring, and developing real estate assets to facilitate the organization's growth, as well as sourcing and negotiating real estate deals, valuing potential opportunities, and managing the design and development of mixed-use projects. Before joining the B. F. Saul Company in 2005, he gained experience in public accounting. He earned his MBA from the University of Virginia, Darden School of Business, and a Bachelor of Science degree in Accounting and Information Systems from Virginia Polytechnic and State University. He is also a Certified Public Accountant.

Joel A. Friedman, Executive Vice President, Chief Accounting Officer and Treasurer

Joel A. Friedman holds the position of Executive Vice President, Chief Accounting Officer and Treasurer. He has also served as Senior Vice President - Chief Accounting Officer since September 2009. His prior roles include Vice President, Treasurer, and Chief Accounting Officer of the B. F. Saul Real Estate Investment Trust, and Senior Vice President and Chief Accounting Officer of the B. F. Saul Company and B. F. Saul Property Company since September 2009. Additionally, he was Chief Financial Officer of ASB Capital Management, LLC and Chevy Chase Trust Company, and held various accounting positions at Chevy Chase Bank.

Bettina T. Guevara, Executive Vice President, Chief Legal and Administrative Officer

Bettina T. Guevara serves as the Executive Vice President, Chief Legal and Administrative Officer for Saul Centers, Inc.

Key Business Risks for Saul Centers (BFS)

1. High Leverage and Interest Rate Risk: Saul Centers faces significant financial risk due to its high leverage, with a reported debt-to-equity ratio of 3.23. This level of debt increases financial vulnerability, particularly in an environment of rising interest rates, which could impact the company's long-term financial health. The company's reliance on debt to finance its development projects further contributes to a substantial debt load, and interest payments are not adequately covered by earnings. The latest annual report also explicitly lists increases in interest rates as a financing risk.
2. Geographic Concentration: A substantial portion of Saul Centers' property portfolio, approximately 85% of its 62 properties, is concentrated in the Washington, D.C./Baltimore metropolitan area. This significant geographic concentration exposes the company to regional economic downturns, potential changes in government spending, and shifts in local real estate fundamentals. Efforts to reduce the federal workforce could lead to the DC metro area underperforming economically and an increased supply of commercial real estate from government sales could depress lease rates in the region.
3. Declining Net Profit Margins and Modest Underlying Growth: Saul Centers has experienced challenges in maintaining profitability, indicated by a declining net profit margin. While operating cash flow remains positive, the company has seen a decline in its free cash flow growth rate. Furthermore, same-property revenue and net operating income have shown decreases, partly attributable to lower lease termination fees, suggesting that underlying growth is modest and the company is heavily reliant on new development projects for expansion.

The accelerating shift towards online grocery shopping and various last-mile fulfillment models (e.g., click-and-collect, home delivery, micro-fulfillment centers) poses a clear emerging threat. As a REIT heavily invested in grocery-anchored community shopping centers, Saul Centers relies on the foot traffic generated by these anchor tenants. Increased online grocery adoption directly reduces physical store visits, thereby diminishing foot traffic for other co-tenants and potentially altering the space requirements or desirability of traditional grocery store formats.

Saul Centers, Inc. (BFS) operates primarily in the ownership, management, and development of community and neighborhood shopping centers, office properties, and mixed-use properties. The company's main operational footprint is within the Mid-Atlantic region of the United States, with a significant concentration in the metropolitan Washington, D.C./Baltimore area, where over 85% of its property operating income is generated.

The addressable markets for Saul Centers' main products and services are sized as follows:

• Shopping Centers (U.S. Region): The global shopping centers market was valued at approximately USD 6 trillion in 2024, with the U.S. market estimated at US$1.6 trillion in the same year. North America accounted for over 46% of the global market revenue share in 2021.
• Office Properties (Washington, D.C. Metropolitan Area): The Washington, D.C. Metropolitan commercial real estate market comprises approximately 436.6 million square feet of rentable office space as of Q3 2025. Another estimate indicates the entire D.C. market includes over 500 million square feet of office space, and the Baltimore market about 190 million square feet. Average asking rental rates in the D.C. Metropolitan area increased to $41.52 per square foot, full service, in Q3 2025.
• Mixed-Use Properties (U.S. Region): Mixed-use real estate, which integrates residential, commercial, retail, and sometimes entertainment spaces, has seen a surge in popularity across the United States. The commercial general and mixed-use category in the U.S. recorded an transaction volume of $8.2 billion in Q2 2025, reflecting an 11.3% year-over-year growth.

Saul Centers (BFS) is expected to experience future revenue growth over the next 2-3 years driven by the following factors:

1. Increased Occupancy and Stabilization of Twinbrook Quarter Phase I: The Twinbrook Quarter Phase I mixed-use property is a significant driver. While its initial operations negatively impacted net income due to increased expenses, revenue is projected to grow as occupancy continues to rise. As of November 3, 2025, a substantial 95.4% of the 452 residential units were leased and occupied, indicating a strong foundation for future revenue generation as this property matures and stabilizes.
2. Continued Base Rent Increases: Saul Centers has demonstrated the ability to implement higher commercial and residential base rents, which contributed to offsetting other financial declines in the third quarter of 2025. Sustained increases in base rents across its portfolio will be a key factor in future revenue expansion.
3. Portfolio Occupancy Management: Maintaining and improving occupancy rates across its portfolio, particularly in its shopping centers and existing residential units, will contribute to revenue growth. While shopping center occupancy saw a slight dip in the first half of 2025, the high occupancy achieved at Twinbrook Quarter Phase I highlights the potential for strong performance in well-leased properties.

Share Repurchases

No significant share repurchase programs or material dollar amounts of share repurchases were identified over the last 3-5 years.

Share Issuance

• Saul Centers established the 2024 Stock Incentive Plan in May 2024, under which 117,000 restricted shares were granted to officers and 18,000 restricted shares were granted to non-employee directors.
• Insiders, including the Chairman and CEO, acquired 4,693 shares of common stock at $38.96 per share through the Dividend Reinvestment and Stock Purchase Plan for the July 31, 2024 dividend distribution.
• The company's weighted average common stock outstanding (diluted) increased from 23,357,000 in 2020 to 24,142,000 in 2024, indicating ongoing share issuance, primarily through equity compensation and dividend reinvestment.

Inbound Investments

No information available regarding large inbound investments by third-parties.

Outbound Investments

No information available regarding strategic investments made by the company in other entities.

Capital Expenditures

• The tax basis of Saul Centers' real estate investments significantly increased from approximately $1.59 billion in 2023 to $1.85 billion in 2024, reflecting substantial capital deployed into property investments.
• A primary focus for capital expenditures is the development of transit-oriented, residential mixed-use projects and the expansion and addition of grocery-anchored shopping centers, predominantly in the Washington, D.C./Baltimore metropolitan area.
• Major development efforts include the Twinbrook Quarter Phase I, a mixed-use project, where "The Milton" apartment complex welcomed its first tenants in Fall 2024, and Wegmans commenced operations in June 2025.