17 slides from Safehold Inc. New's earnings presentation, Feb 13, 2024
Slide 1: Q4'23 & FY'23 Earnings Results
Q4’23 & FY’23 Earnings Results
Slide 2: Forward-Looking Statements and Other Matters
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”, “representativ
Slide 3: FY'23 Highlights
FY’23 Highlights Internalized management, created go-forward operating synergies and Internalization improved investor profile Round 2 sale of Caret closed in connection with the internalization, Caret Sale raised $24m at a $2.0b equity value for Caret1 Moody’s upgrade from Baa1 to A3 and Fitch outl
Slide 4: Portfolio Growth
Portfolio Growth1 Q4 Originations & Fundings Aggregate GBV (Ground Leases) Three new originations of $56m (1 with JV Partner) Estimated Unrealized Capital Appreciation o Safehold $46m, fully funded o JV Partner $10m, fully funded Originations All multifamily ground leases $56m 22x 39% GLTV3 /
Slide 5: Earnings Results
Earnings Results Y/Y decline in GAAP Net Income and EPS includes: o $145.4m ($2.18/sh) in FY’23 for the non-cash full impairment of goodwill taken in Q3’23 o $15.2m or $0.21/sh in Q4’23 ($0.23/sh in FY’23) due to a derivative hedge gain realized in Other Income Y/Y decline in EPS excluding merge
Slide 6: Portfolio Yields
Portfolio Yields (Core Ground Lease Portfolio Gross Book Value: $6.3b on 92-Year W.A. Lease Term w/ Ext.)1 $212m annualized in-place Cash Rent. $330m annualized in-place Net Rent GAAP 3.5% 5.2% Annualized Yield is based on GAAP treatment; assumes a 0% growth / inflation environment for the remai
Slide 7: Portfolio Diversification
Portfolio Diversification Safehold primarily invests in the top 30 MSAs across the U.S., which we believe are positioned for long-term sustainable growth $6.3b Core Ground Lease Portfolio Top 10 Markets (% of GBV, Count, Rent Coverage2, GLTV3) (92-year w.a. extended lease term) 1. Manhattan (23%)1 –
Slide 8: Capital Structure
Capital Structure Debt Overview Ratings & Metrics A3 BBB+ Non-Recourse Secured Unsecured $1.5b Notes (Stable Outlook) (Positive Outlook) $1.5b Total Moody’s Fitch $4.4b Upgrade from Baa1 to A3 on 10/2/23 by Moody’s Pro-Rata Held by JVs $0.3b “The ratings upgrade was based on Safehold's reduced Unsec
Slide 9: Appendix
Appendix 9 Safehold | The Ground Lease Company | February 2024
Slide 10: Income Statement
APPENDIX Income Statement For the three months ended December 31, For the twelve months ended December 31, 2023 2022 2023 2022 Revenues: Interest income from sales-type leases $61,153 $56,244 $235,503 $202,258 Operating lease income 16,921 16,892 71,287 66,817 Interest income - related party 2,381 -
Slide 11: Balance Sheet
APPENDIX Balance Sheet As of December 31, 2023 As of December 31, 2022 Assets: Net investment in sales-type leases $3,255,195 $3,106,599 Ground Lease receivables, net 1,622,298 1,374,716 Real estate: Real estate, at cost 744,337 740,971 Less: accumulated depreciation (40,400) (34,371) Real estate, n
Slide 12: Portfolio Reconciliation
APPENDIX Portfolio Reconciliation IPO (6/22/17) 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Net investment in Sales-Type Leases - $985 $1,306 $2,413 $3,107 $3,255 Ground Lease receivables - 397 $577 $796 $1,375 $1,622 Pro-rata interest in Ground Leases held as - 340 $345 $441 $445 $493 equity metho
Slide 13: Earnings Reconciliation
APPENDIX Earnings Reconciliation For the three months ended For the twelve months ended December 31, December 31, 2023 2022 2023 2022 Net income (loss) attributable to Safehold Inc. common shareholders $41,184 $21,795 ($54,973) $135,423 1 Add: Impairment of goodwill - - 145,365 - 1 Add: Merger & Car
Slide 14: Caret Timeline
APPENDIX Caret Timeline 2H’18: Feb’22: Nov’22: Formed a subsidiary called “Caret” designed to help recognize the value 3 participants from Series A round Outside investors participate in Series of the capital appreciation above Cost committed under same terms and A round3 Basis. Employee performance
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% Employees 2018 Incentive Plan Series A Round Investors1 ~3% MSD Partners 3
Slide 16: Unrealized Capital Appreciation Details
APPENDIX Unrealized Capital Appreciation Details Refer to the Glossary in the Appendix for a 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 calculating UCA
Slide 17: Glossary
APPENDIX Glossary 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 unfunded co