Saul Centers Q2 net income falls on Hampden House startup costs
BFS•Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the commercial REITs peer group is "buy".
Wall Street's median 12-month price target for Saul Centers Inc is $43.50, about 29.3% above its August 5 closing price of $33.63. The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 53 three months ago.
Quarterly results
Saul Centers said second-quarter net income fell as higher costs from the initial operations of Hampden House weighed on results, even as U.S. shopping center REIT revenue rose year over year.
The company said funds from operations available to common stockholders and noncontrolling interests decreased year over year.
What affected results
Net income and FFO were negatively affected by higher interest expense, real estate taxes, depreciation and other costs from the initial operations of Hampden House.
Same property revenue and net operating income increased, driven by the lease-up of Twinbrook Quarter Phase I. Excluding Hampden House, higher residential and commercial base rents contributed to increases in net income and FFO.
Key figures and outlook
| Metric | Actual |
|---|---|
| Q2 Rental Revenue | $75.38 mln |
| Q2 Net Income | $11.55 mln |
| Q2 Property Operating Expenses |
