Saul Centers (BFS) risk factors, FY2024 10-K

Other

1. 01Revenue from our properties may be reduced or limited if the operations of our retail tenants are not successful
2. 02We may be unable to collect balances due from tenants that file for bankruptcy protection
3. 03Our ability to increase our net income depends on the success and continued presence of our shopping center “anchor” tenants and other significant tenants
4. 04We may experience difficulty or delay in renewing leases or leasing vacant space
5. 05Our development activities are inherently risky
6. 06Redevelopments and acquisitions may fail to perform as expected
7. 07Our performance and value are subject to general risks associated with the real estate industry
8. 08Geographic concentration of our portfolio may make us particularly susceptible to adverse economic developments in the real estate markets of those areas
9. 09Our results of operations may be negatively affected by adverse trends in the retail, office and residential real estate sectors
10. 10The short-term nature of apartment leases exposes us more quickly to the effects of declining market rents, potentially making our results of operations and cash flows more volatile
11. 11Many real estate costs are fixed, even if income from our properties decreases
12. 12Competition may limit our ability to purchase new properties and generate sufficient income from tenants
13. 13The continued shift in retail sales towards e-commerce may adversely affect our financial condition, cash flows, and results of operations
14. 14Cybersecurity 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
15. 15We may be unable to sell properties when appropriate because real estate investments are illiquid
16. 16Our real estate assets may be subject to impairment charges
17. 17Influence of Officers, Directors and Significant Stockholders
18. 18Exclusivity and Right of First Refusal Agreements
19. 19Conflicts Based on Individual Tax Considerations
20. 20Ability to Block Certain Actions
21. 21As of December 31, 2024, we had approximately $1.55 billion of debt outstanding, approximately $1.37 billion of which was fixed-rate debt and approximately $187.0 million of which was variable-rate debt outstanding under our Credit Facility
22. 22We 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
23. 23Our ability to meet some of the covenants in our debt, including covenants related to the condition of the property or payment of real estate taxes, may be dependent on the performance by our tenants under their leases
24. 24The market value of our debt and equity securities is subject to various factors that may cause significant fluctuations or volatility
25. 25Our ability to grow will be limited if we cannot obtain additional capital
26. 26Environmental laws and regulations could reduce the value or profitability of our properties
27. 27The Americans with Disabilities Act of 1990 (the “ADA”) could require us to take remedial steps with respect to newly acquired properties
28. 28The revenue generated by our tenants could be negatively affected by various federal, state and local laws to which they are subject
29. 29We could be subject to legal or regulatory proceedings that may adversely affect our financial condition and results of operations
30. 30Failure 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
31. 31We may be required to incur additional debt to qualify as a REIT
32. 32Legislative, administrative, regulatory or other actions affecting REITs, including positions taken by the IRS, could have a material adverse effect on us and our investors
33. 33To maintain our status as a REIT, we limit the amount of shares any one stockholder can own
34. 34Financial and economic conditions may have an adverse impact on us, our tenants’ businesses and our results of operations
35. 35The outbreak or pandemic of any highly infectious or contagious diseases or other public emergencies, could have a material and adverse effect on or cause disruption to our business or financial condition, results of operations, cash flows and the market value and trading price of our securities
36. 36Our insurance coverage on our properties may be inadequate
37. 37Natural disasters and climate change could have an adverse impact on our cash flow and operating results
38. 38We cannot assure you we will continue to pay dividends at historical rates
39. 39Certain tax and anti-takeover provisions of our articles of incorporation and bylaws may inhibit a change of our control
40. 40We may amend or revise our business policies without shareholder approval