18 slides from Safehold Inc. New's earnings presentation, Oct 29, 2024
Slide 1: Q3'24 Earnings Results
Q3’24 Earnings Results
Slide 2: Q3'24 Summary
Q3’24 Summary Investment Activity New Originations $104m JV Buyoutb $69m2 $72m1 $32ma 9 Ground Leasesc 3 Ground Leases 1 Leasehold Loan 3 3 100% 4 6 100% Sponsors Markets (2 New) Multifamily Markets Sponsors Multifamily 29% 3.2x 7.2% 33% 2.6x 7.2% Rent Economic Rent Economic GLTV3 GLTV3 Coverage4 Yi
Slide 3: Portfolio Growth
Portfolio Growth Growing Multifamily Focus Aggregate GBV (Ground Leases) (Multifamily Asset Count) 84 Estimated Unrealized Capital Appreciation 66 21x $10.5b $9.1b 22 Estimated UCA Growth since IPO 1 20x Portfolio Growth since IPO6 IPO (6/22/2017) Q3'20 Q3'22 Q3'24 Total 12 61 128 146 $5.1b Asset Co
Slide 4: Earnings Results
Earnings Results $7.5m non-cash general provision for credit losses taken in Q3’24a due to elective enhancements to general provision for credit losses methodology and current market conditions. $6.8m of the $7.5m represents a non-cash general provision for credit losses on prior period balancesb
Slide 5: Portfolio Yields
Portfolio Yields (Core Ground Lease Portfolio Gross Book Value: $6.6b on 92-Year W.A. Lease Term w/ Ext.)11 GAAP Earnings Forward Yield-to-Maturity 3.7% + Non-Cash Rent & 5.3% + Variable rent 5.8% + Upside when 5.9% + Caret valuation 7.4% Adj. pickup13 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 $6.6b 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 Non-Recourse SOFR Swap (Revolver) Treasury Locks (Long-Term Debt) $1.8b Secured $1.5b Notional: $500m Notional: $350m Term: 5-years (ends April 2028) Rate: ~3.67% 30-year treasury Total Rate: ~3.0% SOFR Unrealized Gain Position: ~$38
Slide 8: Appendix
Appendix 8 Safehold | The Ground Lease Company | October 2024
Slide 9: Income Statement
APPENDIX Income Statement For the three months ended September 30, For the nine months ended September 30, 2024 2023 2024 2023 Revenues: Interest income from sales-type leases $67,120 $59,130 $195,573 $174,350 Operating lease income 16,650 16,715 54,344 54,366 Interest income - related party 2,384 2
Slide 10: Balance Sheet
APPENDIX Balance Sheet As of September 30, 2024 As of December 31, 2023 Assets: Net investment in sales-type leases $3,440,042 $3,255,195 Ground Lease receivables, net 1,779,147 1,622,298 Real estate: Real estate, at cost 740,971 744,337 Less: accumulated depreciation (44,921) (40,400) Real estate,
Slide 11: Portfolio Reconciliation
APPENDIX Portfolio Reconciliation IPO (6/22/17) 9/30/20 9/30/21 9/30/22 9/30/23 9/30/24 Net investment in Sales-Type Leases - $1,089 $1,802 $3,066 $3,183 $3,440 Ground Lease receivables - 480 $691 $1,327 $1,564 $1,779 Pro-rata interest in Ground Leases held as - 344 $439 $444 $480 $454 equity method
Slide 12: Earnings Reconciliation
APPENDIX Earnings Reconciliation For the three months ended For the nine months ended September 30, September 30, 2024 2023 2024 2023 Net income (loss) attributable to Safehold Inc. common shareholders $19,331 ($122,969) $79,724 ($96,157) Add: Impairment of goodwill - 145,365 - 145,365 a Add: Merger
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) Presentation assumes 100% ownership of closed deals. Our JV partner participated in 1 deal at closing this quarter and purchased 45% of the commitment. $72m total commitments includes $19m of forward commitments that have not yet been funded as of 9/30/24. There can be no assur
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