B. F. Saul Real Estate Investment Trust, citing a 56 percent increase in interest and debt expenses, reported a sharp downturn in operating results for 1985.

The company said it recorded a net loss of $14 million ($2.51 per share) for the year ending Sept. 30, compared with a loss of $5.1 million (87 cents) in the previous year. Results included $932,000 in earnings from Chevy Chase Savings & Loan Inc., which was acquired in May 1985, the trust said.

Over the past two years, the company said, it has been engaged in substantial land acquisition and development of properties. The company said these activities contributed to this year's operating losses because the carrying costs associated with the land are considered current expenses. However, the company said, there is a substantial time lag between the completion of construction of new buildings and the time they produce net cash flow.

Software AG Systems Inc. said that earnings grew 26 percent in the second quarter. The company recorded net income of $2.1 million (36 cents per share) in the three months ending Nov. 30, compared with $1.7 million (28 cents) in the previous year's second quarter.

The earnings came on revenue of $16.4 million, compared with $12.2 million in the same period a year ago, the company said. Gains reflect the "wide acceptance of the Adabas and Natural product line as well as the maturing sales force," the company noted.