# SAUL CENTERS, INC. (BFS) Informational only - not investment advice. CIK: 0000907254 SIC: 6798 Real Estate Investment Trusts SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=907254 Filing source: https://www.sec.gov/Archives/edgar/data/907254/000090725426000006/bfs-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0000907254-26-000006 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000907254.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 289,843,000 USD | 2025 | verified | | Net income | 37,511,000 USD | 2025 | verified | | Assets | 2,162,678,000 USD | 2025 | verified | | Net margin | 12.94% | 2025 | computed | | Operating margin | 67.39% | 2025 | computed | | Revenue YoY | +7.81% | 2025 | computed | | ROE | 12.19% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | BFS | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 12.9% | 16.8% | 45 | 149 | | Operating margin | 67.4% | 23.2% | 91 | 66 | | Revenue growth | 7.8% | 3.7% | 71 | 149 | | ROE | 12.2% | 5.7% | 84 | 151 | | ROA | 1.7% | 1.5% | 55 | 155 | | Liabilities / equity | 5.48 | 1.48 | 84 | 151 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 289843000 | USD | 2025 | 2026-02-27 | | Net income | 37511000 | USD | 2025 | 2026-02-27 | | Assets | 2162678000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000907254.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | 217,019,000 | 226,299,000 | 227,219,000 | 231,525,000 | 225,207,000 | 239,225,000 | 245,860,000 | 257,207,000 | 268,847,000 | 289,843,000 | | Net income | | | | 45,279,000 | 48,257,000 | 50,554,000 | 51,723,000 | 40,382,000 | 48,389,000 | 50,194,000 | 52,689,000 | 50,649,000 | 37,511,000 | | Operating income | 35,269,000 | 51,929,000 | 52,930,000 | 55,713,000 | 60,598,000 | 62,553,000 | | | | 180,524,000 | 189,402,000 | 203,765,000 | 195,319,000 | | Diluted EPS | | | | 1.52 | 1.63 | 1.60 | 1.57 | 1.25 | 1.57 | 1.63 | 1.73 | 1.63 | 1.09 | | Operating cash flow | | | | 89,090,000 | 103,450,000 | 110,339,000 | 115,383,000 | 78,369,000 | 118,427,000 | 121,151,000 | 117,727,000 | 121,224,000 | 99,796,000 | | Dividends paid | | | | 39,472,000 | 44,576,000 | 46,306,000 | 48,568,000 | 49,383,000 | 50,963,000 | 55,523,000 | 56,722,000 | 56,894,000 | 57,147,000 | | Assets | | | | 1,343,025,000 | 1,422,452,000 | 1,527,489,000 | 1,618,340,000 | 1,645,572,000 | 1,746,761,000 | 1,833,302,000 | 1,994,137,000 | 2,126,404,000 | 2,162,678,000 | | Liabilities | | | | 969,776,000 | 1,029,349,000 | 1,102,269,000 | 1,174,984,000 | 1,218,039,000 | 1,216,274,000 | 1,311,500,000 | 1,489,708,000 | 1,625,280,000 | 1,685,421,000 | | Stockholders' equity | | | | 318,505,000 | 334,405,000 | 355,912,000 | 374,981,000 | 364,325,000 | 405,049,000 | 400,484,000 | 348,389,000 | 335,754,000 | 307,820,000 | | Cash and cash equivalents | | | | 8,322,000 | 10,908,000 | 14,578,000 | 13,905,000 | 26,856,000 | 14,594,000 | 13,279,000 | 8,407,000 | 10,299,000 | 8,741,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | 20.86% | 21.32% | 22.25% | 22.34% | 17.93% | 20.23% | 20.42% | 20.49% | 18.84% | 12.94% | | Operating margin | | | | 25.67% | 26.78% | 27.53% | | | | 73.43% | 73.64% | 75.79% | 67.39% | | Return on equity | | | | 14.22% | 14.43% | 14.20% | 13.79% | 11.08% | 11.95% | 12.53% | 15.12% | 15.09% | 12.19% | | Return on assets | | | | 3.37% | 3.39% | 3.31% | 3.20% | 2.45% | 2.77% | 2.74% | 2.64% | 2.38% | 1.73% | | Liabilities / equity | | | | 3.04 | 3.08 | 3.10 | 3.13 | 3.34 | 3.00 | 3.27 | 4.28 | 4.84 | 5.48 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000907254.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.38 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.45 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.43 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 63,766,000 | 12,819,000 | 0.42 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 66,683,000 | 13,206,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 66,692,000 | 13,630,000 | 0.45 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 66,943,000 | 14,448,000 | 0.48 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 67,288,000 | 14,481,000 | 0.48 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 67,924,000 | 8,090,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 71,856,000 | 9,799,000 | 0.29 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 70,834,000 | 10,720,000 | 0.33 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 72,004,000 | 10,489,000 | 0.32 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 75,149,000 | 6,503,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 78,259,000 | 9,118,000 | 0.26 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 76,791,000 | 8,753,000 | 0.24 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from BFS's latest 10-K: [/company/BFS/business/](/company/BFS/business/). ## Risk Factors Verbatim Item 1A Risk Factors from BFS's latest 10-K: [/company/BFS/risk-factors/](/company/BFS/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/907254/000090725426000049/bfs-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations This section should be read in conjunction with the consolidated financial statements of the Company and the accompanying notes in "Item 1. Financial Statements" of this report and the more detailed information contained in the Company's 2025 10-K. Historical results and percentage relationships set forth in Item 1 and this section should not be taken as indicative of future operations and financial results of the Company. Capitalized terms used but not otherwise defined in this section have the meanings given to them in Item 1 of this Quarterly Report on Form 10-Q (this "Report"). Forward-Looking Statements Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are not guarantees of performance. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "plans," "intends," "estimates," "anticipates," "expects," "believes" or similar expressions in this Report. Although management believes that the expectations reflected in such forward-looking statements are based upon present expectations and reasonable assumptions, our actual results could differ materially from those set forth in the forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements: •macroeconomic conditions, including geopolitical instability (such as the ongoing conflicts in the Middle East and Ukraine), and changes in tariff and trade policy, which may lead to a disruption of, or lack of access to, sources of funding and rising inflation; •the ability of our tenants to pay rent; •our reliance on shopping center "anchor" tenants and other significant tenants; •our substantial relationships with members of the Saul Organization; •financing risks, such as increases in interest rates, restrictions imposed by our debt, our ability to meet existing financial covenants and our ability to consummate planned and additional financings on acceptable terms or at all; •our development activities; •our access to capital; •our ability to successfully complete acquisitions, developments or redevelopments, or if they are consummated, whether such acquisitions, developments or redevelopments perform as expected; •adverse trends in the retail, office and residential real estate sectors; •risks relating to cybersecurity and potential future uses of artificial intelligence, including disruption to our business and operations, reputational risk, regulatory risk, and exposure to liabilities from tenants, employees, capital providers, and other third parties; •risks generally incident to the ownership of real property, including adverse changes in economic conditions, changes in the investment climate for real estate, changes in real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, the relative illiquidity of real estate and environmental risks; and •risks related to our status as a REIT for federal income tax purposes, such as the existence of complex regulations relating to our status as a REIT, the effect of future changes to REIT requirements as a result of new legislation and the adverse consequences of any failure to qualify as a REIT. Additional information related to these risks and uncertainties is included in "Risk Factors" (Part I, Item 1A of our 2025 10-K), "Quantitative and Qualitative Disclosures about Market Risk" (Part I, Item 3 of this Report and Part II, Item 7A of our 2025 10-K), and "Management's Discussion and Analysis of Financial Conditions and Results of Operations" (Part I, Item 2 of this Report). 27 Table of Contents General The following discussion is based primarily on the consolidated financial statements of the Company as of and for the three and six months ended June 30, 2026. Overview The Company's primary strategy is to continue to diversify its assets through development of transit-oriented, residential mixed-use projects and expansion of and additions to its grocery-anchored Shopping Centers in the Washington, DC/Baltimore metropolitan area. The Company's operating strategy also includes improvement of the operating performance of its assets, internal growth of its Shopping Centers through the addition of pad sites, and supplementing its development pipeline with selective redevelopment and renovations of its core Shopping Centers. The Company has a pipeline of entitled sites in its portfolio, some of which are currently Shopping Centers, for development of up to 2,800 apartment units and 860,000 square feet of retail and office space. All such sites are located proximate to Washington Metropolitan Area Transit Authority red line Metro stations in Montgomery County, Maryland. In addition, the Company recently entered into a lease with Publix to develop a new grocery store at Ashland Square, in Prince William County, Virginia. When complete, Ashland Square is expected to ultimately comprise approximately 124,000 square feet of retail space including the 50,325 square foot Publix, three existing pad sites, four additional pad sites and approximately 30,000 square feet of small shop space. The Company intends to selectively add free-standing pad site buildings within its Shopping Center portfolio and replace underperforming tenants with tenants that generate strong traffic, including anchor stores such as grocery stores. The Company has executed leases or has leases under negotiation for eight more pad sites. There can be no assurance that any such leases will be executed on the anticipated terms or timing, or at all. In recent years, there has been a limited amount of quality properties for sale. Management believes it will continue to be challenging to identify acquisition opportunities for investment in existing and new shopping centers and mixed-use properties into the near future. It is management's view that several of the sub-markets in which the Company operates have, or are expected to have in the future, attractive supply/demand characteristics. The Company will continue to evaluate acquisitions, and development and redevelopment opportunities as integral parts of its overall business plan. Although it is management's present intention to concentrate future acquisitions and development activities on transit-oriented, residential mixed-use properties and grocery-anchored shopping centers in the Washington, DC/Baltimore metropolitan area, the Company may, in the future, also acquire other types of real estate in other areas of the country as opportunities present themselves. The Company plans to continue to diversify in terms of property types, locations, size and market, and it does not set any limit on the amount or percentage of assets that may be invested in any one property or any one geographical area. Actions taken by the Federal government will likely continue to impact the office, retail and residential real estate markets in the Washington, DC/Baltimore metropolitan area over the coming years. Because the majority of the Company’s property net operating income is produced by our Shopping Centers, we continually monitor the implications of government policy changes, as well as shifts in consumer demand between on-line and in-store shopping, on future shopping center construction and retailer store expansion and closure plans. Based on our observations, we continue to adapt our marketing and merchandising strategies in ways that we believe maximize our future performance.  The Company's commercial leasing percentage, on a same property basis, which excludes the impact of properties not in operation for the entirety of the comparable periods, increased to 94.7% at June 30, 2026, from 94.0% at June 30, 2025. The Company maintains a ratio of total debt to estimated total asset market value of under 50%, which positions us to obtain additional secured borrowings if necessary. As of June 30, 2026, including the $100.0 million hedged variable-rate debt, total fixed-rate debt, with staggered maturities from 2026 to 2041, represented approximately 92.1% of the Company's notes payable, thus mitigating refinancing risk. The Company's unhedged variable-rate debt consists of $129.0 million outstanding under the Credit Facility. Including fixed and variable rate debt, the Company's outstanding debt totaled approximately $1.63 billion with a weighted average remaining term of 9.6 years as of June 30, 2026. As of June 30, 2026, the Company has availability of approximately $158.1 million under the Credit Facility. 28 Table of Contents Recent Developments The Company is developing Twinbrook Quarter Phase I located in Rockville, Maryland. It includes 452 apartment units, an 81,000 square foot Wegmans supermarket, approximately 25,000 square feet of small shop space, and a 230,000 square foot office building. The office tower portion is not being constructed at this time. In connection with the development of the residential and retail portions of Twinbrook Quarter Phase I, we also invested in infrastructure and other items that will support both Twinbrook Quarter Phase I and other portions of the development of Twinbrook Quarter. Excluding imputed capitalized interest, the remaining investment to complete Twinbrook Quarter Phase I is not expected to exceed $5.0 million. A portion of the cost of the project is being financed by a $145.0 million construction-to-permanent loan. As of June 30, 2026, the outstanding balance of the loan was $141.2 million, net of unamortized deferred debt costs. The Milton at Twinbrook Quarter opened and residential tenants began moving in on October 1, 2024. As of August 3, 2026, 431 of the 452 (95.4%) residential units were leased and occupied. Of the approximately 106,000 square feet of ground floor retail, 101,400 square feet (95.7%) have been leased. The Wegmans supermarket at Twinbrook Quarter opened for business on June 25, 2025. As of August 3, 2026, including the Wegmans supermarket, approximately 95,100 square feet of the retail space is open and the remaining leased retail space is expected to open at various times during 2026 as tenants complete their buildouts. The development potential of all phases of the entire 18.4 acre Twinbrook Quarter site totals 1,865 residential units, 473,000 square feet of retail space, and 431,000 square feet of office space. The Company is also developing Hampden House, a project located in downtown Bethesda, Maryland, which includes 366 apartment units and approximately 10,100 square feet of retail space. Excluding imputed capitalized interest, the remaining investment to complete the project is not expected to exceed $4.2 million. A portion of the cost of the project is being financed by a $133.0 million construction-to-permanent loan. As of June 30, 2026, the outstanding balance of the loan was $130.6 million, net of unamortized deferred debt costs. Hampden House opened and residential tenants began moving in on October 1, 2025. As of August 3, 2026, 235 of the 366 (64.2%) residential units are leased and occupied. Visual Comfort & Co. opened for business on March 9, 2026 and The Food Market opened for business [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/907254/000090725426000006/bfs-20251231.htm Complete FY 2025 MD&A: /company/BFS/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements and related footnotes included elsewhere in this Annual Report on Form 10-K. We make statements in this section that are forward-looking statements within the meaning of the federal securities laws. For a complete discussion of forward-looking statements, see the section in this report entitled "Forward-Looking Statements." Certain risks may cause our actual results, performance or achievements to differ materially from those expressed or implied by the following discussion. For a discussion of such risk factors, see "Item 1A. Risk Factors." Overview The Company's primary strategy is to continue to diversify its assets through development of transit-oriented, residential mixed-use projects and expansion of and additions to its grocery-anchored Shopping Centers in the Washington, DC/Baltimore metropolitan area. The Company's operating strategy also includes improvement of the operating performance of its assets, internal growth of its Shopping Centers through the addition of pad sites, and supplementing its development pipeline with selective redevelopment and renovations of its core Shopping Centers. The Company has a pipeline of entitled sites in its portfolio, some of which are currently Shopping Centers, for development of up to 2,500 apartment units and 850,000 square feet of retail and office space. All such sites are located proximate to Washington Metropolitan Area Transit Authority red line Metro stations in Montgomery County, Maryland. In addition, the Company recently entered into a lease with Publix to develop a new grocery store at Ashland Square in Prince William County, Virginia. When complete, Ashland Square is expected to ultimately comprise approximately 124,000 square feet of retail space including the 50,325 square foot Publix, three existing pad sites, four additional pad sites and approximately 30,000 square feet of small shop space. The Company intends to selectively add free-standing pad site buildings within its Shopping Center portfolio and replace underperforming tenants with tenants that generate strong traffic, including anchor stores such as grocery stores. The Company has two executed leases and six leases are under negotiation for a total of eight more pad sites. In recent years, there has been a limited amount of quality properties for sale. Management believes it will continue to be challenging to identify acquisition opportunities for investment in existing and new shopping center and mixed-use properties into the near future. It is management’s view that several of the sub-markets in which the Company operates have, or are expected to have in the future, attractive supply/demand characteristics. The Company will continue to evaluate acquisition, development and redevelopment as integral parts of its overall business plan. Actions taken by the Federal government will likely continue to impact the office, retail and residential real estate markets in the Washington, DC/Baltimore metropolitan area over the coming years. Because the majority of the Company’s property net operating income is produced by our Shopping Centers, we continually monitor the implications of government policy changes, as well as shifts in consumer demand between on-line and in-store shopping, on future shopping center construction and retailer store expansion and closure plans. Based on our observations, we continue to adapt our marketing and merchandising strategies in ways to maximize our future performance.  The Company's commercial leasing percentage, on a same property basis, which excludes the impact of properties not in operation for the entirety of the comparable periods, decreased to 94.6% at December 31, 2025, from 95.2% at December 31, 2024. The Company maintains a ratio of total debt to total asset value of under 50%, which allows us to obtain additional secured borrowings if necessary. As of December 31, 2025, including $100.0 million of hedged variable-rate debt, total fixed-rate debt with staggered maturities from 2026 to 2041 represented approximately 88.4% of the Company’s notes payable, thus minimizing refinancing risk. The Company’s unhedged variable-rate debt consists of $189.0 million outstanding under the New Credit Facility. As of December 31, 2025, the Company has availability of approximately $96.2 million under its New Credit Facility. Although it is management’s present intention to concentrate future acquisition and development activities on transit-oriented, residential mixed-use properties and grocery-anchored shopping centers in the Washington, DC/Baltimore metropolitan area, the Company may, in the future, also acquire other types of real estate in other areas of the country as opportunities present themselves. The Company plans to continue to diversify in terms of property types, locations, size and market, and it does not set any limit on the amount or percentage of assets that may be invested in any one property or any one geographic area. 37 Table of Contents Critical Accounting Policies The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which requires management to make certain estimates and assumptions that affect the reporting of financial position and results of operations. See Note 2 to the Consolidated Financial Statements in this report. The Company has identified the following policies that, due to estimates and assumptions inherent in those policies, involve a relatively high degree of judgment and complexity. Real Estate Investments Real estate investment properties are stated at historic cost less depreciation. Although the Company intends to own its real estate investment properties over a long term, from time to time it will evaluate its market position, market conditions, and other factors and may elect to sell properties that do not conform to the Company’s investment profile. Management believes that the Company’s real estate assets have generally appreciated in value since their acquisition or development and, accordingly, the aggregate current value exceeds their aggregate net book value and also exceeds the value of the Company’s liabilities as reported in the financial statements. Because the financial statements are prepared in conformity with GAAP, they do not report the current value of the Company’s real estate investment properties. If there is an event or change in circumstance that indicates a potential impairment in the value of a real estate investment property, the Company prepares an analysis to determine whether the carrying amount of the real estate investment property exceeds its estimated fair value. The Company considers both quantitative and qualitative factors when identifying impairment indicators including recurring operating losses, significant decreases in occupancy, and significant adverse changes in market conditions, legal factors and business climate. If impairment indicators are present, the Company compares the projected cash flows of the property over its remaining useful life, on an undiscounted basis, to the carrying amount of that property. The Company assesses its undiscounted projected cash flows based upon estimated capitalization rates, historic operating results and market conditions that may affect the property. If the carrying amount is greater than the undiscounted projected cash flows, the Company would recognize an impairment loss equivalent to an amount required to adjust the carrying amount to its then estimated fair value. The fair value of any property is sensitive to the actual results of any of the aforementioned estimated factors, either individually or taken as a whole. Should the actual results differ from management’s projections, the valuation could be negatively or positively affected. Accounts Receivable, Accrued Income, and Allowance for Doubtful Accounts Accounts receivable are primarily comprised of rental and reimbursement billings due from tenants, and straight-line rent receivables representing the cumulative amount of adjustments necessary to present rental income on a straight-line basis. Individual leases are assessed for collectability and, upon the determination that the collection of rents is not probable, accrued rent and accounts receivable are charged off, and the charge off is reflected as an adjustment to rental revenue. Revenue from leases where collection is not probable is recorded on a cash basis until collectability is determined to be probable. We also assess whether operating lease receivables, at the portfolio level, are appropriately valued based upon an analysis of balances outstanding, effects of tenant bankruptcies, historical levels of bad debt and current economic trends. Evaluating and estimating uncollectable lease payments and related receivables requires a significant amount of judgment by management and is based on the best information available to management at the time of evaluation. Actual results could differ from these estimates. Legal Contingencies The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, which are generally covered by insurance. While the resolution of these matters cannot be predicted with certainty, the Company believes the final outcome of current matters will not have a material adverse effect on its financial position or the results of operations. Upon determination that a loss is probable to occur, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered probable can be difficult to determine. 38 Table of Contents Results of Operations The following is a discussion of the components of revenue and expense for the entire Company. This section generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed on February 28, 2025. Net income for 2025 decreased to $49.2 million from $67.7 million in 2024. The $18.5 million decline in net income primarily resulted from the adverse impact of the initial operations of Twinbrook Quarter Phase I of $14.3 million and Hampden House of $5.1 million. Significant changes in revenue and expenses are discussed below. Revenue [[GREPCENT_TABLE]] [["","Year ended December 31,","","Percentage Change"],["(Dollars in thousands)","2025","","2024","","2023","","2025 from2024","","2024 from2023"],["Base rent","$","237,426","","","$","216,622","","","$","208,295","","","9.6","%","","4.0","%"],["Expense recoveries","44,310","","","40,826","","","37,094","","","8.5","%","","10.1","%"],["Percentage rent","1,806","","","1,853","","","1,790","","","(2.5)","%","","3.5","%"],["Other property revenue","2,545","","","2,737","","","2,412","","","(7.0)","%","","13.5","%"],["Credit losses on operating lease receivables, net","(1,722)","","","(860)","","","(534)","","","100.2","%","","61.0","%"],["Rental revenue","284,365","","","261,178","","","249,057","","","8.9","%","","4.9","%"],["Other revenue","5,478","","","7,669","","","8,150","","","(28.6)","%","","(5.9)","%"],["Total revenue","$","289,843","","","$","268,847","","","$","257,207","","","7.8","%","","4.5","%"]] [[/GREPCENT_TABLE]] Total revenue increased 7.8% in 2025 compared to 2024 as described below. Base rent: Base rent includes $9.5 million and $(7.8) million for 2025 and 2024, respectively, to recogni [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/BFS/mda/fy2025/ All MD&A years: /company/BFS/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/BFS/mda/fy2024/): filed 2025-02-28; accession 0000907254-25-000022 (https://www.sec.gov/Archives/edgar/data/907254/000090725425000022/bfs-20241231.htm) - [FY 2023 MD&A](/company/BFS/mda/fy2023/): filed 2024-02-29; accession 0000907254-24-000020 (https://www.sec.gov/Archives/edgar/data/907254/000090725424000020/bfs-20231231.htm) - [FY 2022 MD&A](/company/BFS/mda/fy2022/): filed 2023-03-02; accession 0000907254-23-000009 (https://www.sec.gov/Archives/edgar/data/907254/000090725423000009/bfs-20221231.htm) - [FY 2021 MD&A](/company/BFS/mda/fy2021/): filed 2022-02-24; accession 0000907254-22-000014 (https://www.sec.gov/Archives/edgar/data/907254/000090725422000014/bfs-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/BFS.md · JSON record: /company/BFS.json · verified financials: /company/BFS/financials.json / /company/BFS/financials.csv · machine TOC for the whole site: /llms.txt