Exhibit

EXHIBIT INDEX

Exhibit Description

No.

99.1 Press Release, dated October 29, 2015, of Saul Centers, Inc.

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

SAUL CENTERS, INC.

7501 Wisconsin Avenue, Suite 1500, Bethesda, Maryland 20814-6522

(301) 986-6200

Saul Centers, Inc. Reports Third Quarter 2015 Earnings

October 29, 2015, Bethesda, MD.

Saul Centers, Inc. (NYSE: BFS), an equity real estate investment trust ("REIT"), announced its operating results for the quarter ended September 30, 2015 (“2015 Quarter”). Total revenue for the 2015 Quarter increased to $52.4 million from $50.6 million for the quarter ended September 30, 2014 (“2014 Quarter”). Operating income, which is net income before the impact of change in fair value of derivatives, loss on early extinguishment of debt and gains on sales of property and casualty settlements, if any, increased to $13.2 million for the 2015 Quarter from $12.5 million for the 2014 Quarter.

Net income attributable to common stockholders was $7.5 million ($0.36 per diluted share) for the 2015 Quarter compared to $6.9 million ($0.33 per diluted share) for the 2014 Quarter. The increase in net income attributable to common stockholders resulted primarily from (a) higher property operating income ($1.0 million) and (b) lower interest expense and amortization of deferred debt costs ($0.4 million) partially offset by (c) higher depreciation and amortization of deferred leasing costs ($0.9 million).

Same property revenue increased $1.6 million (3.1%) and same property operating income increased $0.8 million (2.1%) for the 2015 Quarter compared to the 2014 Quarter. Same property operating income equals property revenue minus the sum of (a) property operating expenses, (b) provision for credit losses and (c) real estate taxes and the comparisons exclude the results of properties not in operation for the entirety of the comparable reporting periods. Shopping center same property operating income increased $1.0 million (3.4%) primarily due to $0.9 million of increased base rent. Mixed-use same property operating income decreased $0.2 million (2.0%) primarily due to higher provision for credit losses related to a rent dispute ($0.3 million).

For the nine months ended September 30, 2015 (“2015 Period”), total revenue increased to $156.2 million from $155.8 million for the nine months ended September 30, 2014 (“2014 Period”). Operating income decreased to $38.8 million for the 2015 Period from $39.6 million for the 2014 Period. The decrease in operating income was due primarily to (a) the net impact in 2014 of a lease termination ($1.0 million), (b) the impact in 2014 of a bankruptcy settlement and collection ($1.6 million) and (c) higher depreciation and amortization of deferred leasing costs ($1.6 million) partially offset by (d) higher property operating income, exclusive of items (a) and (b) above ($1.0 million), (e) lower general and administrative expenses, primarily due to severance expense in 2014 ($0.8 million), (f) lower acquisition related costs ($0.7 million), (g) lower interest expense and amortization of deferred debt costs ($0.5 million) and (h) lower predevelopment expenses ($0.4 million).

Net income attributable to common stockholders was $21.9 million ($1.04 per diluted share) for the 2015 Period compared to $26.8 million ($1.29 per diluted share) for the 2014 Period. The decrease in net income attributable to common stockholders was due primarily to (a) the impacts to operating income discussed in the preceding paragraph and (b) the gain on sale of property in 2014 ($6.1 million), partially offset by (c) lower noncontrolling interests ($1.6 million).

Same property revenue decreased $0.7 million (0.5%) and same property operating income decreased $2.6 million (2.2%) for the 2015 Period compared to the 2014 Period. Shopping center same property operating income decreased $1.0 million (1.1%) primarily due to (a) the net impact in 2014 of a lease termination ($1.0 million), (b) the impact in 2014 of a bankruptcy settlement and collection ($1.6 million) partially offset by (c) increased base rent ($1.4 million). Mixed-use same property operating income decreased $1.6 million (5.7%) primarily due to (a) higher real estate tax expense, the majority of which is not recoverable ($0.7 million), (b) higher provision for credit losses related to a rent dispute ($0.6 million) and (c) lower base rent ($0.3 million).

www.SaulCenters.com

As of September 30, 2015, 94.8% of the commercial portfolio was leased (not including the apartments at Clarendon Center), unchanged from September 30, 2014. On a same property basis, 94.8% of the portfolio was leased as of September 30, 2015, unchanged from September 30, 2014. The apartments at Clarendon Center were 97.1% leased as of September 30, 2015 compared to 99.6% as of September 30, 2014.

Funds from operations ("FFO") available to common stockholders and noncontrolling interests (after deducting preferred stock dividends) increased 8.9% to $21.3 million ($0.75 per diluted share) in the 2015 Quarter from $19.5 million ($0.70 per diluted share) in the 2014 Quarter. FFO, a widely accepted non-GAAP financial measure of operating performance for REITs, is defined as net income plus real estate depreciation and amortization, and excluding gains and losses from property dispositions, impairment charges on depreciable real estate assets and extraordinary items. The increase in FFO available to common stockholders and noncontrolling interests for the 2015 Quarter was primarily due to (a) higher property operating income ($1.0 million), (b) lower interest expense and amortization of deferred debt costs ($0.4 million) and (c) lower acquisition related costs ($0.3 million).

FFO available to common stockholders and noncontrolling interests increased 2.0% to $61.9 million ($2.18 per diluted share) in the 2015 Period from $60.7 million ($2.18 per diluted share) in the 2014 Period. The increase in FFO available to common stockholders and noncontrolling interests for the 2015 Period was primarily attributable to (a) higher property operating income, other than items (h) and (i) below, ($1.0 million), (b) lower general and administrative expenses ($0.8 million), (c) lower predevelopment expenses ($0.4 million), (d) lower acquisition related costs ($0.7 million), (f) lower interest expense and amortization of deferred debt costs ($0.5 million) and (g) lower preferred stock dividends ($0.3 million) partially offset by (h) the net impact in 2014 of a lease termination ($1.0 million) and (i) the impact in 2014 of a bankruptcy settlement and collection ($1.6 million).

Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 59 properties which includes (a) 50 community and neighborhood shopping centers and six mixed-use properties with approximately 9.4 million square feet of leasable area and (b) three land and development properties. Approximately 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.

Contact: Scott Schneider

(301) 986-6220

www.SaulCenters.com

Saul Centers, Inc.

Condensed Consolidated Balance Sheets

(In thousands)



	September 30, 2015			December 31, 2014
	(Unaudited)
Assets
Real estate investments
Land	$	424,837		$	420,622
Buildings and equipment	1,110,255			1,109,276
Construction in progress	69,175			30,261
	1,604,267			1,560,159
Accumulated depreciation	(416,531		)	(396,617		)
	1,187,736			1,163,542
Cash and cash equivalents	8,922			12,128
Accounts receivable and accrued income, net	50,843			46,784
Deferred leasing costs, net	26,891			26,928
Prepaid expenses, net	8,115			4,093
Deferred debt costs, net	9,091			9,874
Other assets	5,352			3,638
Total assets	$	1,296,950		$	1,266,987

Liabilities
Notes payable	$	807,990		$	808,997
Revolving credit facility payable	30,000			43,000
Construction loan payable	31,413			5,391
Dividends and distributions payable	15,329			14,352
Accounts payable, accrued expenses and other liabilities	31,701			23,537
Deferred income	32,520			32,453
Total liabilities	948,953			927,730

Stockholders’ equity
Preferred stock	180,000			180,000
Common stock	212			209
Additional paid-in capital	300,230			287,995
Accumulated deficit and other comprehensive loss	(181,374		)	(175,668		)
Total Saul Centers, Inc. stockholders’ equity	299,068			292,536
Noncontrolling interests	48,929			46,721
Total stockholders’ equity	347,997			339,257
Total liabilities and stockholders’ equity	$	1,296,950		$	1,266,987

Saul Centers, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Revenue	(unaudited)						(unaudited)
Base rent	$	42,431		$	41,452		$	125,786		$	123,053
Expense recoveries	8,181			7,734			24,710			24,348
Percentage rent	157			187			1,153			1,092
Other	1,607			1,222			4,526			7,335
Total revenue	52,376			50,595			156,175			155,828
Operating expenses
Property operating expenses	6,308			6,316			20,120			20,039
Provision for credit losses	621			170			1,281			480
Real estate taxes	5,933			5,594			17,710			16,631
Interest expense and amortization of deferred debt costs	11,229			11,584			33,988			34,537
Depreciation and amortization of deferred leasing costs	11,131			10,256			32,382			30,745
General and administrative	3,802			3,837			11,712			12,540
Acquisition related costs	57			359			78			738
Predevelopment expenses	57			—			57			503
Total operating expenses	39,138			38,116			117,328			116,213
Operating income	13,238			12,479			38,847			39,615
Change in fair value of derivatives	(6		)	1			(12		)	(6		)
Gain on sale of property	—			—			11			6,069
Net Income	13,232			12,480			38,846			45,678
Income attributable to noncontrolling interests	(2,617		)	(2,374		)	(7,628		)	(9,231		)
Net income attributable to Saul Centers, Inc.	10,615			10,106			31,218			36,447
Preferred stock dividends	(3,093		)	(3,206		)	(9,281		)	(9,619		)
Net income attributable to common stockholders	$	7,522		$	6,900		$	21,937		$	26,828
Per share net income attributable to common stockholders
Basic and diluted	$	0.36		$	0.33		$	1.04		$	1.29

Weighted Average Common Stock:
Common stock	21,158			20,839			21,091			20,726
Effect of dilutive options	33			39			66			35
Diluted weighted average common stock	21,191			20,878			21,157			20,761



Reconciliation of net income to FFO attributable to common stockholders and noncontrolling interests (1)
		Three Months Ended September 30,						Nine Months Ended September 30,
	(In thousands, except per share amounts)	2015			2014			2015			2014
		(unaudited)						(unaudited)
	Net income	$	13,232		$	12,480		$	38,846		$	45,678
	Subtract:
	Gain on sale of property	—			—			(11		)	(6,069		)
	Add:
	Real estate depreciation and amortization	11,131			10,256			32,382			30,745
	FFO	24,363			22,736			71,217			70,354
	Subtract:
	Preferred stock dividends	(3,093		)	(3,206		)	(9,281		)	(9,619		)
	FFO available to common stockholders and noncontrolling interests	$	21,270		$	19,530		$	61,936		$	60,735
	Weighted average shares:
	Diluted weighted average common stock	21,191			20,878			21,157			20,761
	Convertible limited partnership units	7,266			7,199			7,239			7,142
	Average shares and units used to compute FFO per share	28,457			28,077			28,396			27,903
	FFO per share available to common stockholders and noncontrolling interests	$	0.75		$	0.70		$	2.18		$	2.18

(1)

The National Association of Real Estate Investment Trusts (NAREIT) developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is defined by NAREIT as net income, computed in accordance with GAAP, plus real estate depreciation and amortization, and excluding extraordinary items, impairment charges on depreciable real estate assets and gains or losses from property dispositions. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs, which is disclosed in the Company’s Consolidated Statements of Cash Flows for the applicable periods. There are no material legal or functional restrictions on the use of FFO. FFO should not be considered as an alternative to net income, its most directly comparable GAAP measure, as an indicator of the Company’s operating performance, or as an alternative to cash flows as a measure of liquidity. Management considers FFO a meaningful supplemental measure of operating performance because it primarily excludes the assumption that the value of the real estate assets diminishes predictably over time (i.e. depreciation), which is contrary to what the Company believes occurs with its assets, and because industry analysts have accepted it as a performance measure. FFO may not be comparable to similarly titled measures employed by other REITs.



Reconciliation of net income to same property operating income
	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2015			2014			2015			2014
	(unaudited)						(unaudited)
Net income	$	13,232		$	12,480		$	38,846		$	45,678
Add: Interest expense and amortization of deferred debt costs	11,229			11,584			33,988			34,537
Add: Depreciation and amortization of deferred leasing costs	11,131			10,256			32,382			30,745
Add: General and administrative	3,802			3,837			11,712			12,540
Add: Predevelopment expenses	57			—			57			503
Add: Acquisition related costs	57			359			78			738
Add: Change in fair value of derivatives	6			(1		)	12			6
Less: Gains on sale of property	—			—			(11		)	(6,069		)
Less: Interest income	(11		)	(23		)	(37		)	(58		)
Property operating income	39,503			38,492			117,027			118,620
Less: Acquisitions, dispositions and development property	517			326			1,698			688
Total same property operating income	$	38,986		$	38,166		$	115,329		$	117,932

Shopping centers	$	30,091		$	29,092		$	89,084		$	90,113
Mixed-Use properties	8,895			9,074			26,245			27,819
Total same property operating income	$	38,986		$	38,166		$	115,329		$	117,932