Saul Centers: Attractive Even Amidst Higher Interest Rates (Upgrade)

Summary Saul Centers is upgraded to 'buy' after a 20% pullback, offering value for income-oriented investors. Higher interest rates and a levered balance sheet have pressured BFS, but most debt is fixed-rate or hedged, moderating risk. Hampden House ramp-up is a key earnings catalyst, with occupancy gains expected to drive FFO growth in H2 and beyond. Shares trade at just below 10x FFO, with an 8% dividend yield and ~10% upside to fair value, creating an attractive total return. halbergman/iStock via Getty Images Shares of Saul Centers ( BFS ) have been a poor performer over the past year, losing about 6% of their value and missing out on a large market rally. The stock is down nearly 20% from its recent hikes This article was written by Seeking Profits 5.73K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.