Executive Summary

Revenue beat with $71.86M vs S&P Global consensus $69.76M (+3.0% surprise), but GAAP EPS of $0.29 missed $0.34 consensus; FFO/share of $0.71 was lower year over year due to the initial drag from Twinbrook Phase I ramp-up *. Values retrieved from S&P Global.
Year over year, total revenue rose 7.7% ($71.86M vs $66.69M), while net income available to common fell to $7.00M ($0.29) from $10.83M ($0.45), reflecting the expense on-boarding from Twinbrook Phase I; excl. Twinbrook, net income grew $1.0M YoY .
Same-property revenue grew 2.7% YoY, but same-property NOI declined 0.5% on lower other property revenue, lower net expense recoveries, and lower lease termination fees in shopping centers; mixed-use NOI was up modestly .
Dividend held steady at $0.59 (declared March 6 and again June 12), reinforcing income support while Twinbrook ramps; key near-term catalyst is leasing/occupancy progress at The Milton and retail at Twinbrook Quarter Phase I .

What Went Well and What Went Wrong

What Went Well

Revenue growth and leasing momentum: Total revenue +7.7% YoY; commercial portfolio 93.9% leased, and residential (ex-The Milton) 99.3% leased; 274 residential units at The Milton leased/occupied as of May 5 .
Base rent strength: Exclusive of Twinbrook Phase I, higher commercial base rent (+$2.2M) and higher residential base rent (+$0.4M) supported underlying earnings power .
Mixed-Use resilience: Mixed-Use same-property NOI increased $0.3M YoY on higher residential base rent, partly offsetting shopping center headwinds .

What Went Wrong

Profitability drag from Twinbrook ramp: Initial operations of Twinbrook Phase I reduced net income by $6.5M YoY and FFO by $4.4M YoY (~$0.13/share) in Q1 2025, pressuring EPS/FFO despite healthy underlying rent trends .
Shopping center same-property NOI down: -$0.5M YoY on lower other property revenue (-$0.6M), lower net expense recoveries (-$0.4M), and lower lease termination fees (-$0.2M) .
Higher cost burden: Property operating expenses, interest expense, and depreciation/amortization all rose YoY with Phase I online, reducing GAAP earnings leverage .

Financial Results

GAAP and FFO summary (oldest → newest):

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$67.29	$67.92	$71.86
Net income available to common ($M)	$11.68	$5.29	$7.00
GAAP EPS ($)	$0.48	$0.22	$0.29
FFO available to common & NCI ($M)	$28.87	$21.96	$24.57
FFO per share ($)	$0.83–$0.84	$0.63	$0.71

Segment same-property performance and mix:

Metric	Q1 2024	Q1 2025
Same-property revenue ($M)	$66.43	$68.20
Shopping Centers same-property revenue ($M)	$46.76	$48.00
Mixed-Use same-property revenue ($M)	$19.68	$20.20
Same-property NOI ($M)	$48.27	$48.02
Shopping Centers same-property NOI ($M)	$35.79	$35.27
Mixed-Use same-property NOI ($M)	$12.47	$12.75

KPI snapshot:

KPI	Q1 2024	Q1 2025
Commercial portfolio leased %	94.6%	93.9%
Residential leased % (ex-The Milton)	98.7%	99.3%
The Milton at Twinbrook – units leased/occupied	n/a	274 (as of May 5, 2025)

Notes: Management highlighted that initial Twinbrook Phase I operations (expensing interest, taxes, D&A from 10/1/24) suppressed net income by $6.5M YoY in Q1; excluding Twinbrook, net income rose $1.0M YoY on higher base rents .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Common dividend per share	Payable Apr 30, 2025	$0.59	$0.59	Maintained
Common dividend per share	Payable Jul 31, 2025	$0.59	$0.59	Maintained

No quantitative revenue/NOI/FFO guidance was provided in the Q1 press release .

Earnings Call Themes & Trends

Note: No earnings call transcript located in our document set; themes below synthesize press releases for Q3 2024, Q4 2024, and Q1 2025.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Twinbrook Quarter Phase I ramp	Delivered 10/1/24; initial expensing began in Q4; Q4 net income impact -$6.8M YoY; 202 units leased by Feb 24	Net income impact -$6.5M YoY; 274 units leased/occupied by May 5	Ramping occupancy; drag narrowing as lease-up progresses
Base rent growth	Q3 drivers: higher base rent across segments; same-property revenue +5.5%	Ex-Twinbrook, +$2.2M commercial and +$0.4M residential base rent YoY	Underlying rent growth intact
Lease termination fees	Elevated in Q3; lower in Q4 drove shopping center NOI decline	Lower termination fees (-$0.2M YoY) pressured shopping center NOI	Normalizing/softer vs 2024 peaks
Expense recoveries and other prop. revenue	Q3 saw higher net recoveries; Q4 had lower parking income	Lower net expense recoveries (-$0.4M) and other property revenue (-$0.6M) YoY	Headwind in Q1
Occupancy/leasing	Commercial 95.7% (Q3), 95.2% (Q4); resi ~98–99%	Commercial 93.9%; resi 99.3% ex-The Milton	Commercial modestly softer; residential strong
Capital/interest costs	Noted higher interest expense in Q1 YoY	Higher interest expense YoY as Phase I is expensed	Cost headwind persists

Management Commentary

“Concurrent with the initial delivery of Twinbrook Quarter Phase I on October 1, 2024, interest, real estate taxes, depreciation and all other costs associated with the residential and retail portions of the property began to be charged to expense, while revenue continues to grow as occupancy increases.”
“As a result, compared to the 2024 Quarter, net income for the 2025 Quarter was adversely impacted by $6.5 million due to the initial operations of Twinbrook Quarter Phase I.”
“Exclusive of Twinbrook Quarter Phase I, net income for the 2025 Quarter increased by $1.0 million primarily due to (a) higher commercial base rent of $2.2 million and (b) higher residential base rent of $0.4 million...”

Q&A Highlights

An earnings call transcript was not available in our document set; no Q&A disclosures to summarize. We reviewed all BFS filings and press releases in the period and found no published call transcript .

Estimates Context

S&P Global (consensus vs actual, Q1 2025):

Metric	Q1 2025 Consensus (S&P)*	Q1 2025 Actual (S&P)*	Surprise
GAAP EPS (Primary EPS)	$0.34	$0.29	-$0.05
Revenue ($M)	$69.76	$71.86	+$2.10

Values retrieved from S&P Global.
Additional context: Third-party reported FFO/share miss of ~2.7% and revenue beat of ~3.0% for Q1 2025, consistent with the GAAP EPS miss and revenue beat dynamic .

Key Takeaways for Investors

Underlying rent growth remains healthy; ex‑Twinbrook, net income and FFO improved YoY, but the on-boarding of Phase I expenses is masking core strength near term .
Revenue outperformed expectations while GAAP EPS missed; for REIT investors, FFO/share was also down YoY due to Phase I ramp, aligning with mixed headline optics * . Values retrieved from S&P Global.
Shopping center same-property NOI softness (lower term fees, lower recoveries/other revenue) bears watching; mixed-use NOI growth helped mitigate the decline .
Twinbrook ramp is the pivotal driver: 274 units already leased/occupied with further retail lease-up underway; as occupancy rises, the expense drag should abate, offering a path to earnings re-acceleration .
Balance of income support and growth: Dividend maintained at $0.59, offering carry while development moves toward stabilization .
Near-term trading implication: Expect sensitivity to incremental leasing updates at The Milton and retail at Twinbrook; positive occupancy milestones could be a stock catalyst, while further softness in shopping center fee/recovery items could weigh on sentiment .
Medium-term thesis: D.C./Baltimore concentration with high occupancy and base-rent momentum provides a solid backdrop; successful Phase I stabilization can unlock earnings/FFO leverage into 2026 .

Footnotes:
*Consensus and “actual” values in the Estimates Context section were retrieved via S&P Global (GetEstimates). Values retrieved from S&P Global.

SAUL CENTERS, INC. (BFS)·Q1 2025 Earnings Summary