Saul Centers (BFS)

Risks

• Revenue from our properties may be reduced or limited if the retail operations of our tenants are not successful.
• Our ability to increase our net income depends on the success and continued presence of our shopping center “anchor” tenants and other significant tenants.
• We may experience difficulty or delay in renewing leases or leasing vacant space.
• Our development activities are inherently risky.
• Developments, redevelopments and acquisitions may fail to perform as expected.
• Our performance and value are subject to general risks associated with the real estate industry.
• Our results of operations may be negatively affected by adverse trends in the retail and office real estate sectors.
• Many real estate costs are fixed, even if income from our properties decreases.
• Competition may limit our ability to purchase new properties and generate sufficient income from tenants.
• We may be unable to sell properties when appropriate because real estate investments are illiquid.
• We have substantial relationships with members of the Saul Organization whose interests could conflict with the interests of other stockholders.
• The amount of debt we have and the restrictions imposed by that debt could adversely affect our business and financial condition.
• We are obligated to comply with financial and other covenants in our debt that could restrict our operating activities, and the failure to comply could result in defaults that accelerate the payment under our debt.
• The phase-out of LIBOR could affect interest rates under our variable rate debt and interest rate swap arrangements.
• Environmental laws and regulations could reduce the value or profitability of our properties.
• The Americans with Disabilities Act of 1990 (the “ADA”) could require us to take remedial steps with respect to newly acquired properties.
• The revenue generated by our tenants could be negatively affected by various federal, state and local laws to which they are subject.
• Failure to qualify as a REIT for federal income tax purposes would cause us to be taxed as a corporation, which would substantially reduce funds available for payment of distributions.
• We may be required to incur additional debt to qualify as a REIT.
• Legislative, administrative, regulatory or other actions affecting REITs, including positions taken by the IRS, could have a material adverse effect on us and our investors.
• To maintain our status as a REIT, we limit the amount of shares any one stockholder can own.
• Financial and economic conditions may have an adverse impact on us, our tenants’ businesses and our results of operations.
• Our insurance coverage on our properties may be inadequate.
• Natural disasters and climate change could have an adverse impact on our cash flow and operating results.
• We cannot assure you we will continue to pay dividends at historical rates.
• Certain tax and anti-takeover provisions of our articles of incorporation and bylaws may inhibit a change of our control.
• Cybersecurity risks and cyber incidents could adversely affect our business, disrupt operations and expose us to liabilities to tenants, employees, capital providers and other third parties.
• We may amend or revise our business policies without your approval.