21 slides from Safehold Inc. New's earnings presentation, February 2023
Slide 1: Q4 '22 & FY '22 Earnings Results
Q4 ‘22 & FY ‘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”, “representati
Slide 3: Forward-Looking Statements and Other Matters
Forward-Looking Statements and Other Matters Inflation Adjusted Yield / CPI Adjustments: Safehold™ originated ground leases typically include a periodic rent increase based on prior years cumulative CPI growth with the initial lookback year generally starting between lease year 11 and 21. These CPI
Slide 4: FY '22 Highlights
FY ‘22 Highlights Growing Scale in 2022 26 $1.4b $10.5b (1) Total Portfolio Estimated UCA New Ground Leases Aggregate Cost Basis at 12/31/22 Increasing Scale Positioned and Strength for Growth in 2023 $934m $2.0b $1.2b Equity and Debt Capital Caret Valuation Based on Cash & Credit Facility (2) (3) R
Slide 5: Investment Activity
Investment Activity Quarterly Activity Origination Metrics 3 ground lease transactions $79m (1) All multifamily Originations 3 unique markets $27m Funded $52m Unfunded 1 new client, 2 repeat clients (2) 7.0% w.a. Inflation Adjusted Yield • 6.9% with 0% inflation $68m 34% w.a. GLTV (3) Fundings (3) $
Slide 6: Portfolio Growth
Portfolio Growth Q4 ’22 Investments $6.2b 18x Growth (1) Since IPO $4.8b $3.2b $2.7b $0.9b $0.3b IPO Q4 '18 Q4 '19 Q4 '20 Q4 '21 Q4'22 (6/22/2017) Note: Please see the “Important Note re COVID-19” in the front of this presentation for a statement about metrics this quarter. Pictures of properties th
Slide 7: Earnings Results
Earnings Results Quarterly Annual Results Results Y/Y Y/Y Q4 ‘22 Q4 ‘21 FY ‘22 FY ‘21 Growth Growth Revenue $73.4m $52.0m 41% $270.3m $187.0m 45% Net Income GAAP $21.8m $21.3m 2% $135.4m $73.1m 85% Attributable to Safehold Inc. Excluding Merger & common Caret Related Costs (1) shareholders and Non-R
Slide 8: Inflation Captured Cash Flows
Inflation Captured Cash Flows (Current Portfolio Gross Book Value: $5,876m) CPI Lookbacks continue periodically through the life of the lease, which can provide meaningful inflation capture unlike the long-term fixed-rate bonds we benchmark against.(1) In-Place with 0% Inflation Annualized Cash Yiel
Slide 9: Portfolio Metrics
Portfolio Metrics (Current Portfolio Gross Book Value: $5,876m) Property Type Lease Term >60 yrs Office Multifamily 94% 45% 36% (36 Assets) (69 Assets) Lease Term Underlying Remaining Property w/ Ext. (131 Assets) (W.A. 93 Years) <20 yrs 4% 20-60 yrs Hotel 2% 12% Mixed Use & Other Life Science (16 A
Slide 10: Geographic Breakdown
Geographic Breakdown (Current Portfolio Gross Book Value $5,876m) Seattle Northeast 39% Portland (22 assets) Minneapolis West Milwaukee Boston Sacramento 26% Detroit (37 assets) San Francisco Central New York Denver Salt Lake City 3% Chicago Philadelphia (6 assets) Baltimore San Jose Washington, D.C
Slide 11: Capital Structure
Capital Structure Debt Overview Capital and Credit Ratings Non-Recourse Secured $1,498m $500m Baa1 Total Moody’s Incremental (Positive Outlook) Unsecured Notes $3.8b Pro-Rata Held by JVs Unsecured $1,377m $272m Revolver Unsecured Revolver Post Quarter-End BBB+ ($1.85b total revolving Fitch $690m cre
Slide 12: Estimated Unrealized Capital Appreciation
Estimated Unrealized Capital Appreciation (1) Total Square Feet: 33.2m 78% +$16m CAGR in Q4 ’22 $10.5b Multifamily Office Since IPO 14.9m 13.2m Sq. Ft. Sq. Ft. $8.1b (16.5k Units) $5.5b Mixed Use $4.8b Hotel Life Science & Other 3.8m 0.7m 0.7m $1.8b Sq. Ft. Sq. Ft. Sq. Ft. (5.1k Keys) $0.4b IPO Q4 '
Slide 13: 2022 Caret Updates
2022 Caret Updates Investment Rounds • Series A Round: In Q1 ’22, 6 investors purchased or committed to purchase 1.37% of the then-authorized units for an aggregate $24.0m at a $1.75b valuation with redemption option(1) • Series B Round: In Q3 ’22, MSD Partners committed to purchase 1.0% of the then
Slide 14: Appendix
APPENDIX Safehold
Slide 15: Caret Timeline
Appendix Caret Timeline 2H ’18: Formed a subsidiary called “Caret” designed to help Nov ’22: recognize the value of the Feb ’22: 3 participants from Series A capital appreciation above Outside investors participate round committed under same Cost Basis. Employee in Series A round(3) terms and timing
Slide 16: Income Statements
Appendix Income Statements For the three months ended December 31, For the years ended December 31, 2022 2021 2022 2021 Revenues: Interest income from sales-type leases $56,244 $35,580 $202,258 $118,824 Operating lease income 16,892 16,300 66,817 67,667 Other income 234 133 1,238 523 Total revenues
Slide 17: Balance Sheets
Appendix Balance Sheets As of December 31, 2022 As of December 31, 2021 Assets: Net investment in sales-type leases $3,106,599 $2,412,716 Ground Lease receivables 1,374,716 796,252 Real estate: Real estate, at cost 740,971 740,971 Less: accumulated depreciation (34,371) (28,343) Real estate, net 706
Slide 18: Portfolio Reconciliation
Appendix Portfolio Reconciliation IPO (6/22/17) 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 Net investment in Sales-Type Leases - - $985 $1,306 $2,413 $3,107 Ground Lease receivables - - 397 $577 $796 $1,375 Pro-rata interest in Ground Leases held as equity method investments - - 340 $345 $441 $445
Slide 19: Earnings Reconciliation
Appendix Earnings Reconciliation For the three months ended December 31, For the years ended December 31, 2022 2021 2022 2021 Net income attributable to Safehold Inc. common shareholders $21,795 $21,279 $135,423 $73,123 Less: Gain on sale of Net Investment in Lease - - (55,811) - Less: Selling profi
Slide 20: 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 21: Glossary
Appendix Glossary Aggregate Cost Basis Represents Cost Basis plus unfunded commitments. For unfunded commitments, it represents the aggregate future amount to be paid under the commitments. Represents the Current Portfolio plus unfunded commitments. For unfunded commitments, it represents the aggreg