Saul Centers Hampden House Drag Narrows as Occupancy Rises

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue reached $78.4 million as Hampden House occupancy hit 73.0% of residential units.

Saul Centers, Inc. (BFS), an equity real estate investment trust, reported third-quarter revenue of $78.4 million, up from $72.0 million a year earlier, as Hampden House occupancy continued to climb and the development’s drag on earnings narrowed.

Net income fell to $12.6 million from $14.0 million a year earlier. The company said initial operations of Hampden House, which opened October 1, 2025, reduced net income by $3.7 million, of which $2.9 million was interest expense, net. That adverse impact was smaller than the $4.0 million Hampden House drag in the second quarter.

Exclusive of Hampden House, net income increased $2.3 million, primarily from higher commercial base rent of $2.0 million. That was a larger year-over-year lift than the $1.3 million increase reported for the second quarter.

Net income available to common stockholders declined to $6.7 million, or $0.27 a share, from $7.7 million, or $0.32 a share. Hampden House cut that figure by $1.6 million, or $0.07 a share.

As of November 2, 2026, 267 of 366 residential units at Hampden House, or 73.0%, were leased and occupied, and 100% of the retail space was leased. The company said it continued to lease residential units during the quarter. Interest, real estate taxes, depreciation and other costs for the residential portion and the majority of the retail portion began to be charged to expense when the property opened, while revenue grows as occupancy increases.

Same property revenue increased $3.5 million, or 4.9%, and same property net operating income increased $2.5 million, or 5.0%, compared with the year-ago quarter. Those growth rates slowed from 6.9% for both measures in the second quarter. Twinbrook Quarter Phase I’s lease-up added $1.2 million to same property revenue and $1.1 million to same property net operating income, down from $2.7 million and $2.5 million in the prior quarter.

Exclusive of Twinbrook Quarter Phase I, same property revenue rose $2.3 million, primarily from higher commercial base rent of $1.2 million and higher expense recoveries of $0.7 million. Same property net operating income rose $1.4 million, primarily from higher commercial base rent of $1.2 million.

Shopping Center same property net operating income totaled $37.4 million, up 4.6%, on higher base rent of $1.3 million and lower credit losses on operating lease receivables, net, of $0.4 million. That growth rate accelerated from 3.6% in the second quarter. Mixed-Use same property net operating income totaled $14.9 million, up 6.1%. Exclusive of Twinbrook Quarter Phase I, Mixed-Use same property net operating income decreased $0.2 million, primarily due to lower expense recoveries, net of expenses, of $0.2 million. Hampden House was excluded from same property results.

FFO available to common stockholders and noncontrolling interests increased to $25.9 million, or $0.72 a share, from $25.3 million, or $0.72 a share. Hampden House reduced FFO by $2.1 million, or $0.06 a share. Exclusive of Hampden House, FFO increased $2.7 million, primarily from higher commercial base rent of $2.0 million and higher residential base rent of $0.6 million. Excluding Hampden House, the Residential portfolio was 97.1% leased at both September 30, 2026 and September 30, 2025.

The Bethesda, Maryland REIT operates 62 properties, including 50 community and neighborhood shopping centers and nine mixed-use properties with about 10.6 million square feet of leasable area, plus three non-operating land and development properties. More than 85% of property net operating income comes from the Washington, D.C./Baltimore metropolitan area.