17 slides from Safehold Inc. New's earnings presentation, Nov 1, 2023
Slide 1: Safehold Q3'23
Gatehot Q3 23
Slide 2: Forward-Looking Statements and Other Matters
; Safehold Forward-Looking Statements and Other Matters This presentation may contain forward-looking statements. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements can be identified by the use of words such as “illustrative”, “re
Slide 3: Q3'23 Highlights
Safehold Q3'23 Highlights Capital Markets Activities Portfolio Metrics’ ( ») $152m Equity Raise 7.1m Shares at $21.40/sh (0.7m Shares Sold to MSD and insiders) X ( » Moody’s Upgrade to A3 Credit Ratings Upgrade from Baa’ to A3 Post Quarter End X Va $6.4b / $10.0b Total Portfolio Aggregate GBV?/ Tota
Slide 4: Portfolio Growth
Safehold Portfolio Growth! m Estimated Unrealized Capital Appreciation @ Aggregate GBV (Ground Leases) 2 3 Estimated UCA X Growth since Po 1 9 Portfolio Growth $6.7b Xx since IPO? = One new origination of $19m = Fully funded = Multifamily ground lease = 43% GLTV? / 3.2x Rent Coverage’ = 7.1% Economi
Slide 5: Earnings Results
Earnings Results * Y/Y decline in GAAP Net Income and EPS includes $145.4m ($2.14/sh) for the full impairment of goodwill Safehold = Market capitalization has persisted below Safehold’s book equity which triggered a GAAP goodwill impairment = Y/Y decline in EPS excluding merger & Caret related costs
Slide 6: Portfolio Yields
Portfolio Yields Safehold (Core Ground Lease Portfolio Gross Book Value: $6.2b on 92-Year W.A. Lease Term w/ Ext.) 3.5% 5.2% Annualized Cash Yield Annualized Yield I + 2.0% Growth / Inflation v Economic 5 7 Economic Yield? at 2.0% CPI I + Market Implied Growth / Inflation v Economic 5.99 Inflation A
Slide 7: Portfolio Diversification
oo. . Safehold Portfolio Diversification Safehold primarily invests in the top 30 MSAs across the U.S., which we believe are positioned for long-term sustainable growth $6.2b Core Ground Lease Portfolio Top 10 Markets (% of Gv, Count, Rent Coverage?, GLTV) (92-year w.a. extended lease term) 1. Manha
Slide 8: Capital Structure
Capital Structure Debt Overview Non-Recourse Secured Unsecured $1.5b Notes. $1.5b $4.3 Pro-Rata Held by JVs $0.3b Unsecured Revolver $1.0b ($0.85b remaining capacity) Swapped to fix SOFR at ~3.0% through Apr’28 (current ~$3m/quarter savings in interest expense flowing through P&L] $1.0b ~30-year TSY
Slide 9: Appendix
Gatdhod Appendix Safehold | The Ground Lease Company | November 2023
Slide 10: Income Statement
APPENDIX Income Statement Revenues: Interest income from sales-type leases Operating lease income Interest income - related party Other income Total revenues Costs and expenses: Interest expense Real estate expense Depreciation and amortization General and administrative General and administrative -
Slide 11: Balance Sheet
APPENDIX Balance Sheet Assets: Net investment in sales-type leases $3,182,592 $3,106,599 Ground Lease receivables, net 1,563,670 1,374,716 Real estate: Real estate, at cost 744,571 740,971 Less: accumulated depreciation (38,892) (34,371) Real estate, net 705,679 706,600 Real estate-related intangibl
Slide 12: Portfolio Reconciliation
APPENDIX Portfolio Reconciliation Net investment in Sales-Type Leases Ground Lease receivables Pro-rata interest in Ground Leases held as equity method investments Real estate, net (Operating Leases) Add: Accumulated depreciation Add: Lease intangible assets, net Add: Accumulated amortization Add: O
Slide 13: Earnings Reconciliation
APPENDIX Safehold Earnings Reconciliation For the three months ended For the nine months ended September 30, September 30, 2023 2022 2023 2022 Net income (loss) attributable to Safehold Inc. common shareholders ($122,969) $66,077 ($96,157) $113,628 Add: Impairment for goodwill 145,365 - 145,365 - Ad
Slide 14: Caret Timeline
APPENDIX Safehold Caret Timeline 2H'18: Formed a subsidiary called “Caret” designed to help recognize the value Feb'22: Nov'22: Outside investors participate in Series 3 participants from Series A round of the capital appreciation above Cost Around? committed under same terms and Basis. Employee per
Slide 15: Caret Ownership
APPENDIX Caret Ownership SAFEHOLD (NYSE: SAFE) 100% | ~82% GL Units Caret Units Rent Stream plus Original Cost Capital Appreciation above Original Basis and certain other cash flows Cost Basis under specified circumstances ~15% ~3% Note: Ownership percentage is based on outstanding Caret units. (1)
Slide 16: Unrealized Capital Appreciation Details
APPENDIX Safehold Unrealized Capital Appreciation Details Refer to the Glossary in the Appendix fora definition of Owned Residual Portfolio, Unrealized Capital Appreciation ("UCA’), and “Combined Property Value” ("CPV"). SAFE relies in part on CBRE’s valuations of the CPV of our portfolio in calcula
Slide 17: Glossary
APPENDIX Glossary Safehold Aggregate Cost Basis Represents Cost Basis plus unfunded commitments of the Core Ground Lease Portfolio. For unfunded commitments, it represents the aggregate future amount to be paid under the commitments. Aggregate Gross Book Value Represents the Gross Book Value plus un