While total revenue climbed to $76.8 million from $70.8 million in the same period last year, the company’s bottom line remained under pressure from the project launched last October. The residential complex, Hampden House, is still in its lease-up phase, with 64.2% of its units occupied as of early August. Excluding the impact of this new development, net income would have shown a $1.3 million increase, bolstered by gains in both residential and commercial base rents.
Saul Centers reports lower net income as Hampden House startup costs weigh
Saul Centers, Inc. saw its second-quarter net income slide to $11.5 million from $14.2 million a year earlier, as the Bethesda-based real estate investment trust grappled with the initial operational expenses of its newly launched Hampden House property, which hit the bottom line by $4 million.
Operating performance across the broader portfolio remains steady. Same-property net operating income rose 6.9% to $52 million, largely driven by the successful lease-up of Twinbrook Quarter Phase I. Despite the dip in net income available to common stockholders—which fell to $6.0 million, or $0.24 per share—management noted that the core portfolio continues to show strength. Funds from operations (FFO) reached $24.8 million for the quarter, reflecting the heavy capital requirements of bringing new mixed-use assets to market in the competitive Washington, D.C. and Baltimore metropolitan regions.
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