Saul Centers (BFS) 8-K Saul Centers, Inc. Reports

Exhibit 99.1

SAULCENTERS, INC.

7501 Wisconsin Avenue, Suite 1500, Bethesda, Maryland 20814-6522

(301) 986-6200

Saul Centers, Inc. Reports

Third Quarter 2012 Earnings

November 1, 2012, Bethesda, MD.

Saul Centers, Inc. (NYSE: BFS), an equity real estate investment trust (REIT), announced its operating results for the quarter ended September 30, 2012 (“2012 Quarter”). Total revenue for the 2012 Quarter increased to $47.5 million from $42.9 million for the quarter ended September 30, 2011 (“2011 Quarter”). Operating income, which is net income available to common stockholders before income attributable to noncontrolling interests and preferred stock dividends, decreased to $8.1 million for the 2012 Quarter from $8.7 million for the 2011 Quarter. Net income available to common stockholders was $4.2 million ($0.21 per diluted share) for the 2012 Quarter compared to $1.7 million ($0.09 per diluted share) for the 2011 Quarter. Revenue increased primarily due to $3.0 million of rents generated by the shopping centers acquired in 2011 and $0.9 million of additional revenue generated by Clarendon Center. Operating income declined primarily due to $1.9 million of predevelopment expenses, which was partially offset by $1.3 million of additional operating income generated by the core portfolio and $0.2 million generated by the shopping centers acquired in 2011.

Same property revenue increased 1.9% for the 2012 Quarter compared to the 2011 Quarter, and same property operating income increased 3.3%. The same property comparisons exclude the results of properties not in operation for the entirety of the comparable reporting periods. Shopping center portfolio same property operating income increased 3.7%, primarily due to lower provision for credit losses, and the mixed-use portfolio same property operating income increased 2.0%.

For the nine months ended September 30, 2012 (“2012 Period”), total revenue increased to $142.2 million from $127.4 million for the nine months ended September 30, 2011 (“2011 Period”). Operating income increased to $27.0 million for the 2012 Period from $25.2 million for the 2011 Period. Net income available to common stockholders was $12.5 million ($0.64 per diluted share) for the 2012 Period compared to $7.9 million ($0.42 per diluted share) for the 2011 Period. The primary sources of the revenue increase were additional revenue from the shopping centers acquired in 2011 ($9.7 million) and Clarendon Center ($4.3 million). The primary sources of the increase in operating income were the core portfolio ($2.9 million) and the shopping centers acquired in 2011 ($1.3 million), partially offset by predevelopment

expenses ($1.9 million). Same property revenue increased 0.6% for the 2012 Period compared to the 2011 Period, and same property operating income increased 1.7%. Shopping center portfolio same property operating income increased 1.2% and the mixed-use portfolio same property operating income increased 3.6% due to improved operating performance at Washington Square.

As of September 30, 2012, 91.6% of the commercial portfolio was leased (all properties except the apartments at Clarendon Center, which were 100% leased), compared to 90.4% at September 30, 2011. On a same property basis, 91.1% of the portfolio was leased compared to the prior year level of 89.9%. The 2012 leasing percentages were impacted by a net increase of approximately 105,000 square feet of leased space, primarily caused by the leasing of a portion of the space vacated by major shopping center tenants in 2011.

Funds from operations (FFO) available to common shareholders (after deducting preferred stock dividends) increased 36.2% to $14.6 million ($0.55 per diluted share) in the 2012 Quarter from $10.7 million ($0.44 per diluted share) in the 2011 Quarter. FFO, a widely accepted non-GAAP financial measure of operating performance for REITs, is defined as net income plus real estate depreciation and amortization, and excluding gains and losses from property dispositions, impairment charges on depreciable real estate assets and extraordinary items. The primary sources of increased FFO in the 2012 Quarter were (a) acquisition costs incurred in 2011 ($2.4 million), (b) additional FFO generated by the shopping center properties acquired in 2011 ($1.5 million), the core portfolio ($1.5 million), and Clarendon Center ($0.1 million) and (c) the change in fair value recognized on the Company’s interest rate swaps ($0.2 million), partially offset by predevelopment expenses ($1.9 million or $0.07 per diluted share).

FFO available to common shareholders for the 2012 Period increased 29.1% to $45.5 million ($1.72 per diluted share) from $35.2 million ($1.45 per diluted share) during the 2011 Period. The primary sources of increased FFO in the 2012 Period were (a) additional FFO generated by the shopping centers acquired in 2011 ($4.8 million), the core portfolio ($2.5 million), and Clarendon Center ($0.8 million), (b) acquisition costs incurred in the 2011 Period ($2.5 million), (c) a change in the fair value loss recognized on the Company’s interest rate swaps ($1.4 million), partially offset by predevelopment expenses ($1.9 million).

Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. Saul Centers currently operates and manages a real estate portfolio of 57 community and neighborhood shopping center and mixed-use properties totaling approximately 9.5 million square feet of leasable area. Over 85% of the Company’s property operating income is generated from properties in the metropolitan Washington, DC/Baltimore area.

Contact: Scott V. Schneider

(301) 986-6220

Saul Centers, Inc.

Condensed Consolidated Balance Sheets

($ in thousands)

	September 30,			December 31,
	2012			2011
	(Unaudited)
Assets
Real estate investments
Land	$	323,723		$	324,183
Buildings and equipment		1,101,339			1,092,533
Construction in progress		1,422			1,129
		1,426,484			1,417,845
Accumulated depreciation		(346,426	)		(326,397	)
		1,080,058			1,091,448
Cash and cash equivalents		33,498			12,323
Accounts receivable and accrued income, net		41,916			39,094
Deferred leasing costs, net		25,396			25,876
Prepaid expenses, net		6,367			3,868
Deferred debt costs, net		8,106			7,090
Other assets		5,106			12,870
Total assets	$	1,200,447		$	1,192,569
Liabilities
Mortgage notes payable	$	827,963		$	823,871
Revolving credit facility payable		—			8,000
Dividends and distributions payable		13,394			13,219
Accounts payable, accrued expenses and other liabilities		30,044			22,992
Deferred income		30,128			31,281
Total liabilities		901,529			899,363
Stockholders’ equity
Preferred stock		179,328			179,328
Common stock		198			193
Additional paid-in capital		236,459			217,829
Accumulated deficit and other comprehensive loss		(157,085	)		(147,522	)
Total Saul Centers, Inc. stockholders’ equity		258,900			249,828
Noncontrolling interest		40,018			43,378
Total stockholders’ equity		298,918			293,206
Total liabilities and stockholders’ equity	$	1,200,447		$	1,192,569

Saul Centers, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Unaudited)						(Unaudited)
Revenue
Base rent	$	38,403		$	34,390		$	114,091		$	101,280
Expense recoveries		7,576			6,994			22,741			21,211
Percentage rent		259			209			1,118			1,037
Other		1,296			1,285			4,208			3,862
Total revenue		47,534			42,878			142,158			127,390
Operating expenses
Property operating expenses		5,977			5,829			17,775			18,289
Provision for credit losses		168			595			761			1,628
Real estate taxes		5,546			4,743			16,928			13,881
Interest expense and amortization of deferred debt costs		12,322			11,250			37,660			32,714
Depreciation and amortization of deferred leasing costs		10,268			8,512			29,816			25,308
General and administrative		3,272			3,293			10,303			10,402
Predevelopment expenses		1,870			—			1,870			—
Total operating expenses		39,423			34,222			115,113			102,222
Operating income		8,111			8,656			27,045			25,168
Acquisition related costs		—			(2,439	)		—			(2,513	)
Change in fair value of derivatives		17			(217	)		(2	)		(1,374	)
Gain on sale of property		1,057			—			1,057			—
Gain on casualty settlement		219			—			219			198
Net income		9,404			6,000			28,319			21,479
Income attributable to the noncontrolling interests		(1,456	)		(496	)		(4,428	)		(2,268	)
Net income attributable to Saul Centers, Inc.		7,948			5,504			23,891			19,211
Preferred dividends		(3,785	)		(3,785	)		(11,355	)		(11,355	)
Net income available to common stockholders	$	4,163		$	1,719		$	12,536		$	7,856
Per share net income available to common stockholders:
Diluted	$	0.21		$	0.09		$	0.64		$	0.42
Weighted average common stock:
Common stock		19,721			18,893			19,561			18,774
Effect of dilutive options		63			44			51			69
Diluted weighted average common stock		19,784			18,937			19,612			18,843

Saul Centers, Inc.

Supplemental Information

(In thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Unaudited)						(Unaudited)
Reconciliation of net income to FFO available to common shareholders:(1)
Net income	$	9,404		$	6,000		$	28,319		$	21,479
Less: Gains on property dispositions		(1,276	)		—			(1,276	)		(198	)
Add: Real property depreciation and amortization		10,268			8,512			29,816			25,308
FFO		18,396			14,512			56,859			46,589
Less: Preferred dividends		(3,785	)		(3,785	)		(11,355	)		(11,355	)
FFO available to common shareholders	$	14,611		$	10,727		$	45,504		$	35,234
Weighted average shares:
Diluted weighted average common stock		19,784			18,937			19,612			18,843
Convertible limited partnership units		6,914			5,416			6,914			5,416
Diluted & converted weighted average shares		26,698			24,353			26,526			24,259
Per share amounts:
FFO available to common shareholders (diluted)	$	0.55		$	0.44		$	1.72		$	1.45
Reconciliation of net income to same property operating income:
Net income	$	9,404		$	6,000		$	28,319		$	21,479
Add: Interest expense and amortization of deferred debt costs		12,322			11,250			37,660			32,714
Add: Depreciation and amortization of deferred leasing costs		10,268			8,512			29,816			25,308
Add: General and administrative		3,272			3,293			10,303			10,402
Add: Predevelopment expenses		1,870			—			1,870			—
Add: Acquisition related costs		—			2,439			—			2,513
Add: Change in fair value of derivatives		(17	)		217			2			1,374
Less: Gains on property dispositions		(1,276	)		—			(1,276	)		(198	)
Less: Interest income		(59	)		(18	)		(108	)		(65	)
Property operating income		35,784			31,693			106,586			93,527
Less: Acquisitions & developments		(5,738	)		(2,618	)		(17,003	)		(5,421	)
Total same property operating income	$	30,046		$	29,075		$	89,583		$	88,106
Shopping centers	$	24,169		$	23,311		$	71,838		$	70,984
Mixed-Use properties		5,877			5,764			17,745			17,122
Total same property operating income	$	30,046		$	29,075		$	89,583		$	88,106

(1) The National Association of Real Estate Investment Trusts (NAREIT) developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by NAREIT as net income, computed in accordance with GAAP, plus real estate depreciation and amortization, and excluding extraordinary items, impairment charges on depreciable real estate assets and gains or losses from property dispositions. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs, which is disclosed in the Company’s Consolidated Statements of Cash Flows for the applicable periods. There are no material legal or functional restrictions on the use of FFO. FFO should not be considered as an alternative to net income, its most directly comparable GAAP measure, as an indicator of the Company’s operating performance, or as an alternative to cash flows as a measure of liquidity. Management considers FFO a meaningful supplemental measure of operating performance because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time (i.e. depreciation), which is contrary to what we believe occurs with our assets, and because industry analysts have accepted it as a performance measure. FFO may not be comparable to similarly titled measures employed by other REITs.