Saul Centers reported fourth‑quarter 2025 revenue of $75.1 million, up 10.5 percent from $67.9 million a year earlier, and beating the FactSet consensus estimate of $73.1 million by roughly $2 million. Net income for the quarter fell to $8.2 million from $10.4 million in 2024, a decline of 21 percent, largely attributable to the initial operating costs of its new mixed‑use development, Hampden House, and the first phase of Twinbrook Quarter.
For the full year, the company generated $289.8 million in revenue, a 7.8 percent increase over $268.8 million in 2024, while net income dropped to $49.2 million from $67.7 million, a 27 percent decline. Management identified a $19.4 million net‑income headwind from the early operating costs of Hampden House and Twinbrook Quarter Phase I, which offset a $1.0 million increase in net income from the core portfolio driven by higher commercial and residential base rents.
As of February 23, 2026, 130 of the 366 residential units at Hampden House were leased and occupied, representing 35.5 percent occupancy. The company expects the development’s initial expenses to decline as lease‑up accelerates, and it reaffirmed its focus on expanding grocery‑anchored shopping centers while pursuing additional mixed‑use projects in the Washington, D.C./Baltimore metro area.
Funds from operations for the quarter were $21.5 million, or $0.61 per share, and $96.7 million, or $2.76 per share, for the full year. Net income available to common stockholders was $3.7 million, or $0.15 per share, in the fourth quarter, underscoring the impact of development costs on shareholder‑level earnings.
The results highlight a trade‑off between short‑term earnings pressure from capital‑intensive development projects and longer‑term portfolio growth. Revenue growth, driven by new acquisitions and a robust demand for grocery‑anchored retail, offsets the temporary drag on profitability, while the core portfolio’s incremental earnings suggest operational resilience.
The company did not provide updated guidance for the upcoming quarter or full year, leaving investors to assess the trajectory based on the current performance and the expected stabilization of its new developments.
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