Safehold Inc. New · NYSE:SAFE
Safehold Inc. New — Safehold — Q1 2022 Earnings Presentation
19 slides from Safehold Inc. New's earnings presentation, Apr 21, 2022
Slide 1: Q1 '22 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: Q1 '22 Highlights
Q1 ‘22 Highlights Strong Earnings Increased Investments UCA Growth Capital for Growth $309m Capital Raised from Equity Offering
Slide 4: Investment Activity
Investment Activity Quarterly Activity Origination Metrics G10 ground lease transactions G9 markets (3 new markets} G 7new clients C 5.1% w.a. Inflation Adjusted Yield” * 4.8% with 0% inflation CG 38%w.a. GLTV" Ground CG 3.9xw.a. Rent Coverage” l ! ee ee ee ee I BeohinntF MoLsTancion y Note: Please
Slide 5: Portfolio Growth
Portfolio Growth Q1'22 Investments $5.5b
Slide 6: Geographic Breakdown
Geographic Breakdown Northeast 1 38% Minneapolis | West 7] | wiwaukee_ | A seston new | 26% - pole Ly id fe Central EES New York Stamford je 9 OT Priadeipnia 3% Ig Washingtans 06 Mid-Atlantic =. me % Raleigh-Durham Southeast , ° Maa 11% San Diego °: = ‘. San Antonio jain °,
Slide 7: Earnings Results
Earnings Results Quarterly Results Q1‘22 | a1‘21 Revenue $60.4m | $43.5m Net Income $24.9m | $16.9m ERS $0.32
Slide 8: Portfolio Metrics
Portfolio Metrics Property Type ] Lease Term Office 48% Multifamily 36% Underlying Property Other a <I% LifeScience 14% 4% >60 yrs 94% Lease Term Remaining w/ Ext <20 yrs, 4 20-60 yrs 2% Credit Metrics” W.A. Rent Coverage Note: Please see the “Important Note The uses estimates ofthe: the property th
Slide 9: Inflation Captured Cash Flows
Inflation Captured Cash Flows ook Value cPl Lekbaeke continue periodically through the life of the lease, which can provide meaningful inflation capture that is significantly better than the long-term fixed-rate bonds we benchmark against.!") In-Place with 0% Inflation Annualized Yield 5.1% Annualiz
Slide 10: Capital Structure
Capital Structure ( Debt Overview | Capital Updates ] [ Credit Ratings | Non-Recourse Secured $1,498m Total $ Unsecured Revolver $235m o $309m ‘o-Rata Held by JVs NO hey Unsecured Notes Pre $1,225m $272m 24 year w.a. maturity" Portfolio Annualized Yield Effective Interest Rate Debt and Liquidity Met
Slide 11: Caret Transaction
Caret Transaction Transaction Overview As was previously announced, during the quarter, we sold and received commitments to purchase 1.37% of the total authorized Caret Units for an aggregate $24.0 million at a valuation of $1.75 billion, from a group of leading private equity, sovereign wealth and
Slide 12: Estimated Unrealized Capital Appreciation
Estimated Unrealized Capital Appreciation $9.4b Total Square Feet: 29.3m" $5.6b $5.0b $2.1b $1.3b ee 4b IPO Qi1g8 ai19—Qt'20. at'21. an '22
Slide 13: lesa
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Slide 14: Income Statements
Income Statements For the three months ended March 31, 2022 2021 Revenues: Interest income from sales-type leases $43,031 $25,974 Operating lease income 16,966 17,410 Other income 366 123 Total revenues $60,363 $43,507 Costs and expenses: Interest expense $25,321 $17,167 Real estate expense 707 598
Slide 15: Balance Sheets
Balance Sheets March 31,2022 December 31, 2021 ‘Assets: Net investment in sales-type leases Ground Lease receivables Real estate: Real estate, at cost Less: accumulated depreciation Real estate, net Real estate-related intangibles assets, net, Total real estate, net and real estate-related intangibl
Slide 16: Portfolio Reconciliation
Portfolio Reconciliation IPO (227) 3/31e__3/3119___—3/31/20___—3/31/21_ 3/31/22 Net investment in Sales-Type Leases - - $129«$1029——«$1,312——=—«#$2,740 Ground Lease receivables 5 a = $422 $661 $1,017 Pro-rata interest in Ground Leases held as equity method investments - - - $342 $346 $442 Real estat
Slide 17: Appendix: 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 appraisals of the CPV of our portfolio in calculating UCA.
Slide 18: Appendix: Caret Overview
Appendix Caret Overview" Just as a ground lease splits the land from the building, Caret generally enables us to split our portfolio of ground leases into: (1) the right to the rent stream, the original cost basis and certain other cash flows (GL Units] and (2] the right to the capital appreciation
Slide 19: Appendix: Glossary
Appendix Glossary ‘Aggregate Cost Basis Aggregate Gross Book Value ‘Annualized Cash Yield ‘Annualized Yield Cash Interest Rate Cash Rent ‘Combined Property Value [CPV Cost Basis ‘Current Portfaio Effective Interest Rate GAAP Rent Gross Book Value (SBV) Ground Lease-to-Value (GLTV) Ground Lease Plus