18 slides from Safehold Inc. New's earnings presentation, Feb 6, 2025
Slide 1: Q4'24 & FY'24 Earnings Results
Q4’24 & FY’24 Earnings Results
Slide 2: FY'24 Summary
FY’24 Summary Capital Markets Activity Investment Activity New 5-year unsecured revolving credit facility (increased credit availability, lowered New Originations $225m1&2 $2.0b Revolver cost and extended term versus prior $1.85b aggregate facilities) $193m1 $32ma2 10 Ground Leases 1 Leasehold Loan
Slide 3: Portfolio Growth
Portfolio Growth Q4’24 Fundings & Originations Aggregate GBV (Ground Leases) Estimated Unrealized Capital Appreciation $22m One new ground lease for $22m8 New Originations o $5m funded, $17m unfunded $9.1b 21x Estimated UCA Growth since IPO $8.1b $5m new ground leases (7.4% Economic Yield) $46m
Slide 4: Earnings Results
Earnings Results Q4 GAAP Net Income and EPS decreased Y/Y primarily due to the FY GAAP Net Income and EPS increased Y/Y primarily due to: derivative hedge gain (Revenue) in Q4’23. o +$145.4m: full non-cash impairment of goodwill in Q3’23 Excluding the derivative hedge gain in Q4’23, Q4 Y/Y Net Incom
Slide 5: Portfolio Yields
Portfolio Yields (Core Ground Lease Portfolio Gross Book Value: $6.7b on 92-Year W.A. Lease Term w/ Ext.)12 GAAP Earnings Forward Yield-to-Maturity 3.7% + Non-Cash Rent & 5.3% + Variable rent 5.8% + Upside when 6.0% + Caret valuation 7.5% Adj. pickup14 inflation >2% Annualized Annualized Economic In
Slide 6: 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 $6.7b Core Ground Lease Portfolio Top 10 Markets (% of GBV, Count, Rent Coverage4, GLTV3) (92-year w.a. extended lease term) 1. Manhattan (22%)a –
Slide 7: Capital Structure
Capital Structure Debt Overview Outstanding Hedges Unsecured Notes SOFR Swap (Revolver) Treasury Locks (Long-Term Debt) $2.2b Non-Recourse Secured Notional: $500m Notional: $250m $1.5b Term: 5-years (ends April 2028) Rate: ~4.0% 30-year treasury Total Rate: ~3.0% SOFR Unrealized Gain Position: ~$27m
Slide 8: Appendix
Appendix 8 Safehold | The Ground Lease Company | February 2025
Slide 9: Income Statement
APPENDIX Income Statement For the three months ended December 31, For the year ended December 31, 2024 2023 2024 2023 Revenues: Interest income from sales-type leases $68,677 $61,153 $264,250 $235,503 Operating lease income 16,717 16,921 71,061 71,287 Interest income - related party 2,384 2,381 9,48
Slide 10: Balance Sheet
APPENDIX Balance Sheet As of December 31, 2024 As of December 31, 2023 Assets: Net investment in sales-type leases $3,454,953 $3,255,195 Ground Lease receivables, net 1,833,398 1,622,298 Real estate: Real estate, at cost 740,971 744,337 Less: accumulated depreciation (46,428) (40,400) Real estate, n
Slide 11: Portfolio Reconciliation
APPENDIX Portfolio Reconciliation IPO (6/22/17) 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Net investment in Sales-Type Leases - $1,306 $2,413 $3,107 $3,255 $3,455 Ground Lease receivables - 577 $796 $1,375 $1,622 $1,833 Pro-rata interest in Ground Leases held as - 345 $441 $445 $493 $455 equity m
Slide 12: Earnings Reconciliation
APPENDIX Earnings Reconciliation For the three months ended For the year ended December 31, December 31, 2024 2023 2024 2023 Net income (loss) attributable to Safehold Inc. common shareholders $26,039 $41,184 $105,763 ($54,973) Add: Impairment of goodwill - - - 145,365 Add: Merger & Caret related co
Slide 13: Caret Timeline
APPENDIX Caret Timeline 2H’18: Feb’22: Nov’22: Formed a subsidiary called “Caret” designed to help recognize the value Outside investors participate in Series 3 participants from Series A round of the capital appreciation above Cost A roundb committed to Series B round under Basis. Employee performa
Slide 14: Caret Ownership
APPENDIX Caret Ownership In April 2024, the Series A Round was redeemed. It was settled with funds that were previously held in a restricted account; thus no impact to liquidity or revolver borrowings. SAFEHOLD (NYSE: SAFE) 100% ~84% GL Units Caret Units Rent Stream plus Original Cost Capital Apprec
Slide 15: 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 16: 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
Slide 17: Endnotes
APPENDIX Endnotes (1) $193m ground lease investment includes $45m of forward commitments that have not yet been funded as of 12/31/24. There can be no assurance that Safehold will fully fund these transactions. (2) $32 million leasehold loan was unfunded as of 12/31/24. There can be no assurance tha
Slide 18: 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