Safehold Inc. New · NYSE:SAFE
Safehold Inc. New — Safety, Income & Growth — Q1 2018 Earnings Presentation
26 slides from Safehold Inc. New's earnings presentation, Apr 26, 2018
Slide 1: Q1’18 Earnings Results
Q1’18 Earnings Results April 26, 2018 (NYSE: SAFE)
Slide 2: Forward-Looking Statements and Other Matters
Forward-Looking Statements and Other Matters This release 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”, “representative”, “
Slide 3: I. Earnings
I. Earnings Safety, Income & Growth Inc. The Ground Lease Company 2
Slide 4: Q1’18 Results
Section 1 – Earnings Q1’18 Results Aggregated Impact of $ in Per Certain Material Thousands Share Items Per Share Refer to Impact of Certain Material Net Income $3,720 $0.20 ($0.06) Earnings Items slide for FFO(1) $5,990 $0.33 ($0.06) additional details. AFFO(1) $5,471 $0.30 ($0.13) Investment $91M
Slide 5: Q1’18 Highlights
Section 1 – Earnings Q1’18 Highlights Rent Growth Investment Momentum Portfolio Expansion 1. Excluding Park Q/Q Portfolio Percentage Rent Q/Q +9% 18% to $588M $5.1M $5.6M +$91M 2. Park Percentage Rent in new investments Q/Q Value Bank Y/Y +11% $3.0M $3.3M 21% to $1.2B 1. Cash rent, excluding Park Ho
Slide 6: Income Statement
Section 1 – Earnings Income Statement Q1’18 Revenues: Ground lease and other lease income(1) $11,280 Other income 413 Total revenues $11,693 Costs and expenses: Interest expense $3,255 Real estate expense 354 Depreciation and amortization 2,270 General and administrative(2) 2,032 Stock based compens
Slide 7: FFO / AFFO
Section 1 – Earnings FFO / AFFO Q1‘18 Net income allocable to Safety, Income & Growth Inc. common shareholders $3,720 Add: Real estate related depreciation and amortization 2,270 FFO allocable to Safety, Income & Growth Inc. common shareholders $5,990 FFO allocable to Safety, Income & Growth Inc. co
Slide 8: Impact of Certain Material Items
Section 1 – Earnings Impact of Certain Material Items Effected Net Q1’18 Income Items Per Share Description Results for the quarter ended March 31, 2018 include the total annual percentage rent Park Hotel from the Park Hotels Portfolio, which is paid annually in arrears and was received and Percenta
Slide 9: General & Administrative Breakdown
Section 1 – Earnings General & Administrative Breakdown Q1 2018 G&A SAFE’s management contract waives 100% of the management fee and reimbursables through June 30, 2018 $1.3M of $2.0M Management fee and reimbursables are recorded as is waived GAAP expenses during the waiver period, and are offse
Slide 10: Dividends
Section 1 – Earnings Dividends $0.15 dividend was declared in the first quarter representing an annualized rate of $0.60 per share. $0.18 $0.16 $0.1566 $0.15 $0.15 $0.14 $0.15 $0.0066 in Q3 $0.12 was paid for a four day Q2 $0.10 stub period. $0.08 $0.06 $0.04 $0.02 $0.0066 $0.00 June 27 - June 30
Slide 11: II. Portfolio
II. Portfolio Safety, Income & Growth Inc. The Ground Lease Company 10
Slide 12: First Quarter Investment Metrics
Section 2 – Portfolio First Quarter Investment Metrics Q4 2017 Q1 2018 +18% $497M $588M Gross Book Value Gross Book Value +$91M 15 From 3 new deals 18 Ground Lease Assets Ground Lease Assets Q1’18 Deals Avg. Cap Rate Avg. Rent Escalators W.A. Ground Rent Coverage W.A. Basis as a % of CPV 2.0% annual
Slide 13: New Investments
Section 2 – Portfolio New Investments Onyx on First Regency Lakeview Pershing Point A SAFE Ground Lease™ on a A SAFE Ground Lease™ on a A SAFE Ground Lease™ on a luxury 14-story multi-family stabilized two-building office 7-story, 410K square foot office property containing 266 units campus comprisi
Slide 14: Geographic Diversification by MSA
Section 2 – Portfolio Geographic Diversification by MSA Seattle 15.5% Detroit Minneapolis 0.4% Salt Lake City 12.4% 1.3% San Francisco Milwaukee 3.7% 9.6% Washington, D.C. 8.4% 3.5% 24.2% San Diego Durango 3.4% Raleigh-Durham 5.5% 9.8% 2.3% Los Angeles Atlanta Dallas Safety, Income & Growth Inc. The
Slide 15: Portfolio Stratification
Section 2 - Portfolio Portfolio Stratification 20-60 yrs Industrial 0% 1% Office 27% <20 yrs 42% Hotel 40% Lease Term Property Type Fixed w/ CPI- >60 yrs Based Adjustments Remaining(1) 58% 30% Percentage Rent 39% Multi-Family 32% Rent Escalator <3.0x 1% Type 55-60% 21% 5.0x+ Fixed <30% 57% 7% 37% Gr
Slide 16: Portfolio Metrics
Section 2 - Portfolio Portfolio Metrics Rent Statistics Annualized base rent $24.1M TTM Park Hotels percentage rent $3.3M Total cash rent $27.4M Total GAAP rent (including TTM % rent) $41.0M Total cash rent as % of Ground Lease Basis 4.7% W.A. annualized contractual fixed rent escalations 1.7%(1) Gr
Slide 17: Pipeline (as of April 24)
Section 2 – Portfolio Pipeline (as of April 24) Industrial 3% Hotel 14% $472M Near-Term Pipeline (18 Deals) Property Multi- In Discussion Office Type Family 56% 27% $391M 12 Deals San Atlanta Orlando Diego 3% 3% 6% Miami Under LOI 8% Various 8% $81M 6 Deals Chicago Location 19% (MSA) New York 29% Wa
Slide 18: Value Bank of $1.2B or $66 per Share
Section 2 – Portfolio Value Bank of $1.2B or $66 per Share Value Bank is calculated as today’s estimated Combined Property Value (CPV) less SAFE’s Ground Lease Basis SAFE uses Value Bank to track the capital appreciation $1,192M potential at lease expiration from our rights to acquire the Value
Slide 19: III. Capital Structure
III. Capital Structure Safety, Income & Growth Inc. The Ground Lease Company 18
Slide 20: Debt Overview
Section 3 – Capital Structure Debt Overview As of March 31, 2018 Debt Maturity Profile Debt Profile (excludes impact of hedges) 2022 W.A. Extended Maturity is 7.9 years Jun.(1) $10 L+135 $300(1) 2023 $227(3) Undrawn Jan.(2) $71 L+133 Revolver $290 2027 $71(2) Drawn Apr.(3) $227 3.77%(4) Revolver $10
Slide 21: Interest Rate Hedges
Section 3 – Capital Structure Interest Rate Hedges As of March 31, 2018 SAFE enters into hedging contracts to mitigate the impact of interest rate fluctuations Blended Blended End Notional Start End Notional Short-Term Hedges Hedge Long-Term Hedges Hedge Date ($M) Date Date ($M) Rate Rate Total 10
Slide 22: Balance Sheets
Section 3 – Capital Structure Balance Sheets As of As of March 31, 2018 December 31, 2017 Assets Real estate Real estate, gross $456,476 $413,145 Accumulated depreciation (5,754) (4,253) Real estate, net 450,722 408,892 Real estate-related intangibles, net(1) 125,802 80,766 Ground lease assets, net
Slide 23: Appendix
Appendix Safety, Income & Growth Inc. The Ground Lease Company 22
Slide 24: Asset Summary
Appendix Asset Summary by Property Type Location Lease Expiration / Rent Escalation Property (MSA) Property Type As Extended Structure 6201 Hollywood (North) Los Angeles, CA Multi-Family 2104 / 2104 % of CPI 6200 Hollywood (South) Los Angeles, CA Multi-Family 2104 / 2104 % of CPI Onyx on First Washi
Slide 25: Glossary
Appendix Glossary Ground Lease Basis Ground Lease Basis is the historical purchase price paid by SAFE to acquire or originate a ground lease. The current combined value of the land, buildings and improvements relating to a commercial property, as if there was no ground lease on the land at the prope
Slide 26: Glossary – (cont’d)
Appendix Glossary – (cont’d) With respect to a property, the net operating income of the commercial real estate being operated at the property without giving effect to any rent paid or payable under our ground lease. Net operating income is calculated as property-level revenues less property-level o
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