SAUL CENTERS, INC. PORTFOLIO COMPOSITION 2 Saul Centers, Inc. is a self-managed, self-administered equity  real estate investment trust headquartered  in Bethesda, Maryland. After the March 2005 acquisition of Palm Springs Center, Saul  Centers operates and manages a real estate portfolio of 41 community and neighborhood shopping centers and office properties totaling approximately 7.3 million square feet of leasable area. Over 83% of our cash flow is generated from properties in the metropolitan Washington, DC/Baltimore area. Saul Centers’ primary operating strategy  is to focus on continuing its program of  internal growth, renovations, and expansions  of community and neighborhood shopping centers, which primarily service the day-to-day necessities and services sub-sector of the  overall retail market. The Company plans  to supplement its growth through effective development of new office and retail properties and acquisitions of operating properties  as appropriate opportunities arise. Broadlands Village II 70.6% Shopping Centers 29.4% Office 83.0% Metropolitan Washington, DC/Baltimore Area 17.0% Rest of U.S. PORTFOLIO COMPOSITION Based on 2004 Operating Income