SAUL CENTERS, INC.

Saul Centers, Inc. operates as a real estate investment trust (REIT) under the Internal Revenue Code of 1986, as amended. The company was incorporated in 1993 under Maryland General Corporation Law. Saul Centers is required to annually distribute at least 90% of its REIT taxable income (excluding net capital gains) to its stockholders and meets specific organizational requirements. The company has consistently made and plans to continue making regular quarterly distributions to its stockholders. Saul Centers, along with its wholly-owned subsidiaries and limited partnerships where it or a subsidiary is the sole general partner, focuses on diversifying its assets. This includes developing transit-oriented, residential mixed-use projects and expanding its grocery-anchored shopping centers within the Washington, DC/Baltimore metropolitan area. The company also aims to improve the operating performance of its assets, achieve internal growth in its Shopping Centers by adding pad sites, and supplement its development pipeline through selective redevelopment and renovations of its core Shopping Centers. The company was formed to continue and expand the shopping center business previously owned and operated by the B. F. Saul Real Estate Investment Trust, the B. F. Saul Company, and other affiliated entities, all controlled by B. Francis Saul II and his family members. In 1993, as part of a restructuring, members of this organization transferred certain shopping center and mixed-use properties, along with their management functions, to Saul Holdings Limited Partnership and two subsidiary limited partnerships. Since its formation, Saul Centers has developed and purchased additional properties, conducting its business through the Operating Partnership and/or directly or indirectly owned subsidiaries.