SAUL CENTERS, INC.BFS
SAUL CENTERS, INC. Segments Disclosure
Business Segments
The Company’s operating segments conform with our method of internal reporting and the way the Chief Executive Officer, who is also the Chief Operating Decision Maker (“CODM”), evaluates financial results, allocates resources and manages the business. The Company has identified each property as an operating segment. The properties have been aggregated into 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). All properties within each segment generate similar types of revenues and expenses related to tenant rent, expense 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 within each reportable segment 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 each reportable segment. Certain reclassifications have been made to prior year information to conform to the 2024 presentation.
The CODM measures and evaluates the performance of our operating segments based on property net operating income (“NOI”), and considers this metric when allocating operating and capital resources to each segment. NOI includes property revenue and other revenue and deducts property operating expenses and real estate taxes. Total property revenue includes most components of rental revenue, except straight-line rent and above and below market lease amortization, plus parking revenues and lease termination fee revenue. NOI also excludes interest expense, depreciation and amortization, general and administrative expense, and gains and losses.
The following tables summarize property net operating income and total assets for each of our reportable segments:
| Shopping | Mixed-Use | ||||||||||||||||
| (In thousands) | Centers | Properties | Total | ||||||||||||||
As of or for the year ended December 31, 2025 | |||||||||||||||||
| Revenue: | |||||||||||||||||
| Total property revenue | $ | 187,615 | $ | 92,184 | $ | 279,799 | |||||||||||
Revenue adjustments (1) | 10,044 | ||||||||||||||||
| Total revenue | $ | 289,843 | |||||||||||||||
| Expenses: | |||||||||||||||||
| Real estate taxes | (19,456) | (12,990) | |||||||||||||||
| Repairs & maintenance | (15,161) | (8,092) | |||||||||||||||
Other expenses (2) | (10,883) | (17,898) | |||||||||||||||
| Property net operating income | $ | 142,115 | $ | 53,204 | $ | 195,319 | |||||||||||
| Non-segment items: | |||||||||||||||||
| Interest expense, net and amortization of deferred debt costs | (70,548) | ||||||||||||||||
| Depreciation and amortization of deferred leasing costs | (58,784) | ||||||||||||||||
| General and administrative | (26,932) | ||||||||||||||||
| Revenue adjustments (1) | 10,044 | ||||||||||||||||
Gain on disposition of property | 120 | ||||||||||||||||
| Net income | $ | 49,219 | |||||||||||||||
| Capital investment | $ | 27,306 | $ | 68,508 | $ | 95,814 | |||||||||||
| Total assets per segment | $ | 902,561 | $ | 1,248,803 | $ | 2,151,364 | |||||||||||
Other assets (3) | 11,314 | ||||||||||||||||
| Total assets | $ | 2,162,678 | |||||||||||||||
| Shopping | Mixed-Use | ||||||||||||||||
| (In thousands) | Centers | Properties | Total | ||||||||||||||
As of or for the year ended December 31, 2024 | |||||||||||||||||
| Revenue: | |||||||||||||||||
| Total property revenue | $ | 186,205 | $ | 89,621 | $ | 275,826 | |||||||||||
| Revenue adjustments (1) | (6,979) | ||||||||||||||||
| Total revenue | $ | 268,847 | |||||||||||||||
| Expenses: | |||||||||||||||||
| Real estate taxes | (19,469) | (10,873) | |||||||||||||||
| Repairs & maintenance | (11,872) | (6,899) | |||||||||||||||
| Other expenses (2) | (10,165) | (12,783) | |||||||||||||||
| Property net operating income | $ | 144,699 | $ | 59,066 | $ | 203,765 | |||||||||||
| Non-segment items: | |||||||||||||||||
| Interest expense, net and amortization of deferred debt costs | (53,696) | ||||||||||||||||
| Depreciation and amortization of deferred leasing costs | (50,502) | ||||||||||||||||
| General and administrative | (25,066) | ||||||||||||||||
| Revenue adjustments (1) | (6,979) | ||||||||||||||||
Gain on disposition of property | 181 | ||||||||||||||||
| Net income | $ | 67,703 | |||||||||||||||
| Capital investment | $ | 18,010 | $ | 170,723 | $ | 188,733 | |||||||||||
| Total assets per segment | $ | 903,141 | $ | 1,206,655 | $ | 2,109,796 | |||||||||||
| Other assets (3) | 16,608 | ||||||||||||||||
| Total assets | $ | 2,126,404 | |||||||||||||||
As of or for the year ended December 31, 2023 | |||||||||||||||||
| Revenue: | |||||||||||||||||
| Total property revenue | $ | 178,547 | $ | 77,994 | $ | 256,541 | |||||||||||
| Revenue adjustments (1) | 666 | ||||||||||||||||
| Total revenue | $ | 257,207 | |||||||||||||||
| Expenses: | |||||||||||||||||
| Real estate taxes | (18,808) | (10,842) | |||||||||||||||
| Repairs & maintenance | (9,320) | (6,181) | |||||||||||||||
| Other expenses (2) | (10,356) | (11,632) | |||||||||||||||
| Property net operating income | $ | 140,063 | $ | 49,339 | $ | 189,402 | |||||||||||
| Non-segment items: | |||||||||||||||||
| Interest expense, net and amortization of deferred debt costs | (49,153) | ||||||||||||||||
| Depreciation and amortization of deferred leasing costs | (48,430) | ||||||||||||||||
| General and administrative | (23,459) | ||||||||||||||||
| Revenue adjustments (1) | 666 | ||||||||||||||||
| Net income (loss) | $ | 69,026 | |||||||||||||||
| Capital investment | $ | 16,491 | $ | 187,190 | $ | 203,681 | |||||||||||
| Total assets per segment | $ | 918,089 | $ | 1,057,332 | $ | 1,975,421 | |||||||||||
Other assets (3) | 18,716 | ||||||||||||||||
| Total assets | $ | 1,994,137 | |||||||||||||||
(1) Revenue adjustments are straight-line base rent and above/below market lease amortization.
(2) Other expenses include payroll, utilities, insurance, legal, parking, advertising, and other.
(3) Other assets include cash on hand, swap assets, and an operating lease right of use asset.About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.