v3.26.1
Notes Payable, Bank Credit Facility, Interest and Amortization of Deferred Debt Costs
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Notes Payable, Bank Credit Facility, Interest and Amortization of Deferred Debt Costs Notes Payable, Bank Credit Facility, Interest and Amortization of Deferred Debt Costs
The principal amount of the Company's outstanding debt totaled approximately $1.6 billion at June 30, 2026, of which approximately $1.5 billion was fixed-rate debt and approximately $129.0 million was unhedged variable rate debt outstanding under the Credit Facility (hereinafter defined). The net carrying amount of the properties collateralizing our mortgage loans totaled approximately $1.6 billion as of June 30, 2026.

At December 31, 2025, the principal amount of the Company's outstanding debt totaled approximately $1.6 billion, of which $1.4 billion was fixed rate debt and $189.0 million was unhedged variable rate debt outstanding under the Credit Facility. The net carrying amount of the properties collateralizing our mortgage loans totaled approximately $1.6 billion as of December 31, 2025.

At each of June 30, 2026 and December 31, 2025, the Company had a $600.0 million credit facility (the "Credit Facility") comprised of a $460.0 million revolving credit facility (the "Revolving Credit Facility") and a $140.0 million term loan (the "Term Loan"). Below is a summary of the terms of the Credit Facility.

(Dollars in thousands)Credit Facility
 Term LoanRevolving Credit FacilityTotal
Facility Size$140,000 $460,000 $600,000 
MaturityJuly 28, 2028July 30, 2029
ExtensionTwo for one year eachOne for one year
Interest RateSOFRSOFR
Spread
1.30% to 1.90%
1.35% to
1.95%
Issue Letters of CreditYes
GuaranteeSaul Centers and certain subsidiaries of the Operating Partnership

At June 30, 2026, based on the value of the Company's unencumbered properties calculated in accordance with the terms of the Credit Facility, approximately $158.1 million was available and undrawn under the Credit Facility, $229.0 million was outstanding and approximately $464,000 was committed for letters of credit. As of June 30, 2026, the applicable spread for borrowings was 150 basis points for the Revolving Credit Facility and 145 basis points for the Term Loan.

At December 31, 2025, based on the value of the Company's unencumbered properties calculated in accordance with the terms of the Credit Facility, approximately $96.2 million was available and undrawn under the Credit Facility, $289.0 million was outstanding and approximately $185,000 was committed for letters of credit. As of December 31, 2025, the applicable spread for borrowings was 140 basis points related to the Revolving Credit Facility and 135 basis points related to the Term Loan.

On May 7, 2026, the Company closed on a 15-year, non-recourse, $40.0 million mortgage secured by Severna Park Shopping Center. The loan matures in 2041, bears interest at a fixed rate of 5.80%, requires monthly principal and interest payments of $252,900 based on a 25-year amortization schedule and requires a final payment of approximately $23.2 million at maturity. Proceeds were used to repay the remaining principal balance on the existing mortgage of approximately $20.8 million and reduce the outstanding balance of the Credit Facility.
On April 28, 2026, the Company closed on a 15-year, non-recourse, $105.0 million mortgage secured by Clarendon Center. The loan matures in 2041, bears interest at a fixed-rate of 6.27%, requires monthly principal and interest payments of $694,000 based on a 25-year amortization schedule and requires a final payment of $62.4 million at maturity. Proceeds were used to repay the remaining principal balance on the existing mortgage of approximately $70.0 million and reduce the outstanding balance of the Credit Facility.

On March 26, 2026, the Company closed on an approximate 3.5-year, non-recourse, $8.5 million supplemental mortgage secured by Great Falls Center. The loan is coterminous with the existing loan, matures in 2029, bears interest at a fixed-rate of 5.47%, requires monthly principal and interest payments of $52,000 based on a 25-year amortization schedule and requires a final payment of $8.0 million at maturity. Proceeds were used to reduce the outstanding balance of the Credit Facility.

On August 23, 2022, the Company entered into two floating-to-fixed interest rate swap agreements to manage the interest rate risk associated with $100.0 million of its variable-rate debt. The effective date of each swap agreement is October 3, 2022 and each has a $50.0 million notional amount. One agreement terminates on October 1, 2027 and effectively fixes SOFR at 2.96%. The other agreement terminates on October 1, 2030 and effectively fixes SOFR at 2.91%. Because the interest-rate swaps effectively fix SOFR for $100.0 million of variable-rate debt, unless otherwise indicated, $100.0 million of variable-rate debt is treated as fixed-rate debt for disclosure purposes. The Company has designated the agreements as cash flow hedges for accounting purposes.

The Operating Partnership is the guarantor of a portion of the Thruway mortgage (totaling $17.5 million of the $68.0 million outstanding balance at June 30, 2026).

The Company provides a repayment guaranty of 100% of the loan secured by Twinbrook Quarter Phase I. Such guaranty is expected to be reduced in the future as the development achieves certain metrics. As of June 30, 2026, the loan balance and the amount guaranteed were $143.4 million. The Company also provides the lender with a 100% construction completion guaranty.

The Company provides a limited repayment guaranty of $26.6 million for the loan secured by Hampden House. Such guaranty is expected to be reduced in the future as the development achieves certain metrics. During the second quarter, the remaining undrawn loan proceeds of approximately $12.8 million were fully funded into escrow. As of June 30, 2026, the escrow balance was $11.8 million and the loan balance was $133.0 million. The Company also provides the lender with a 100% construction completion guaranty.

All other notes payable are non-recourse.
At June 30, 2026, future principal payments of debt, including scheduled maturities and amortization, for years ending December 31, were as follows:

(Dollars in thousands)Principal Payments
July 1 through December 31, 2026$50,764 
202739,127 
2028198,002 (1)
2029163,448 (2)
203064,383 
203142,110 
Thereafter1,069,801 
Principal amount1,627,635 
Unamortized deferred debt costs23,493 
Net$1,604,142 
 
(1)Includes $140.0 million outstanding under the Term Loan.
(2)Includes $89.0 million outstanding under the Revolving Credit Facility.

Deferred debt costs consist of fees and costs incurred to obtain long-term financing, construction financing and the Credit Facility. These fees and costs are being amortized on a straight-line basis over the terms of the respective loans or agreements, which approximates the effective interest method. Deferred debt costs totaling $23.5 million and $24.0 million, net of accumulated amortization of $10.9 million and $9.9 million, at June 30, 2026 and December 31, 2025, respectively, are reflected as a reduction of the related debt in the Consolidated Balance Sheets.

Interest expense, net and amortization of deferred debt costs for the three and six months ended June 30, 2026 and 2025, were as follows:

Three Months Ended
June 30,
Six Months Ended
June 30,
(Dollars in thousands)2026202520262025
Interest incurred$19,721 $19,146 $39,038 $38,043 
Amortization of deferred debt costs879 625 1,735 1,252 
Capitalized interest(489)(2,917)(932)(5,648)
Subtotal20,111 16,854 39,841 33,647 
Less: Interest income(77)(34)(157)(80)
Interest expense, net and amortization of deferred debt costs$20,034 $16,820 $39,684 $33,567