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Saul Centers, Inc. ( Saul Centers ) was incorporated under the Maryland General Corporation Law in 1993, and operates as a REIT under the Internal Revenue Code of 1986, as amended (the Code ). The Company is required to annually distribute at least 90% of its REIT taxable income (excluding net capital gains) to its stockholders and meet certain organizational and other requirements.
Margins and capital returns are both well above average: 67.79% operating margin, ROIC at 19.65%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 7.5%, steady but not accelerating. Margins contracted 8.2pp, which offsets some of the top-line progress.
ROIC dropped from 21.80% to 19.65%, capital efficiency is deteriorating. Operating margin contracted 8.2pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$295M
▲ +7.5% YoY
Net Income (TTM)
$34M
▼ -25.9% YoY
Op. Margin
67.58%
▼ -8.2pp YoY
ROIC
9.73%
▼ -2.2pp YoY
Cash Flow & Balance Sheet
FCF
N/A
Op. Cash Flow (TTM)
$99M
▼ -17.7% YoY
Net Debt
$1.59B
Cash & Equiv.
$9M
5Y CAGR: +5.5%
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