Safehold Inc. New · NYSE:SAFE
Safehold Inc. New — Safehold — Q3 2019 Earnings Presentation
20 slides from Safehold Inc. New's earnings presentation, Oct 24, 2019
Slide 1: Q3 '19 Earnings Results
Slide 2: Forward-Looking Statements and Other Matters
Forward-Looking Statements and Other Matters This release 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”, “representative”,
Slide 3: Quarterly Results
Slide 4: Highlights
Highlights Record Originations & Rapid Growth $1.35n 7X 10x Closed and Signed PSAs Pro Forma Portfolio Growth Pro Forma UCA Growth in Q3 19 Since IPO"! Since IPO") Institutional Quality Assets & Customers Trophy Properties Creative Solutions Increasing Adoption In Major Markets New SAFE x SWAP Progr
Slide 5: Q3 '19 Earnings Results
Q3 ‘19 Earnings Results Revenue $63.8M $34.9M Net I Ree ee Re 3.170% +123% Q3 "19 Y/Y Growth AQUA ateeatcm §=Y/Y Growth $22.3M Earnings per Share" | $0.15 $0.11 +36% $0.62 $0.41 +52% Note: Q3 19 and YTD ‘19 results include a $2.0M charge associated with the early prepayment of short-term financing a
Slide 6: Q3 '19 Investment Activity
Q3 ‘19 Investment Activity $1.3B Total Q3 ‘19 Investment Activity $400M $919M Closed in Q3 19 Signed PSA in Q3 19!!! W.A. Rent Coverage") W.A. GBV asa % of CPV!) W.A. Underwritten Effective Yield!2) W.A. Effective Yield (Excludes FMV Resets] Note: Metrics shown above are based on $1,319M of total in
Slide 7: Trophy Assets & Institutional Customers
Trophy Assets & Institutional Customers 425 Park Avenue: First New Office Development on Park Ave. in 50 Years Alohilani Resort: SAFE x SWAP with 135 West 50" Street: 195 Broadway: Large European $25B Core Fund Client Landmark New York Office Institutional Investor JV Formed (PSA) CLOSED PSA PSA 7
Slide 8: SAFE x SWAP Program
SAFE x SWAP Program SAFE x SWAP Program Details Alohilani’Resort Waikiki Beach Buy existing archaic ground lease 2490 Kalakaua Ave., Honolulu, HI Closing Date: September 24, 2019 Remove outdated provisions that Customer Customer contacted Safehold to modernize the archaic create uncertainty and ambi
Slide 9: Rapid Portfolio Growth
Rapid Portfolio Growth $2,470M 7X Growth Since IPO $1,536M $770M $497M a lL IPO (6/22/17) Q3 ‘17 Q3'18 Q3'19 Pro Forma 0419!) Note: 3 '19 amounts provided using Aggregate Gross Book Value and is comprised of the current portfolio of $1,452M and $83M of forward commitments. 1) Pro forma statistics th
Slide 10: Capital Structure Improvements
Capital Structure Improvements Revolving Credit Facility includes financings closed subsequent to the end of the third quarter. Excludes rate locked financings for ground leases under signed PSA and the revolving credit facility, which had a $50M outstanding balance at September 30, 2019 2) Safehold
Slide 11: Unrealized Capital Appreciation Growth
Unrealized Capital Appreciation Growth $4.5B eae | 75%! Vested managernent LTIP 10x UCA Growth Since IPO $2.8B 7.5%! Vested management LTIP $1.6B $0.4B { l Q3'19 IPO (6/22/2017) Q3'18 { Pro Forma Q4 ‘19 In order to highlight the two separate components of value within our portfolio, Safehold separat
Slide 12: Portfolio Statistics
Slide 13: Portfolio Diversification
Portfolio Diversification (Current Portfolio Gross Book Value: $1,452M) Hotel Office & 33% Rawiverk Honolulu & Ce Fastest Growing Market New Market Expansion Property Type Diversification Austin Multifamily 23% Geographic Diversification Vv » Yi 5.0% re F Lay Poet © 8) 2) Philadelphia = x wg) Washin
Slide 14: Portfolio Metrics
Portfolio Metrics (Current Portfolio Gross Book Value: $1,452M) [ Credit Metrics | | Lease Term W.A. Rent Coverage! W.A. GBV asa >60 yrs % of CPV 80% Term Remaining 0 w/ Ext. <20 yrs (W.A. 86 Years} 15% 4.2x | 36% 20-60 yrs 5% Total Annualized Less: Annualized Net Yield GAAP Rent Depreciation & i t
Slide 15: Safehold
Safehold 15
Slide 16: Income Statements
In come Statements For the three months ended Sept 30, For the nine months ended Sept 30, 2019 2018 2019 2018 Revenues: Operating lease income $17,132 $11,567 $56,844 $32,708 Interest income from sales-type leases 4,032 - 6,836 - Other income 1,166 17 2,132 2,203 Total revenues $22,310 $11,644 $63,8
Slide 17: Balance Sheets
Balance Sheets September 30, 2019 December 31, 2018 Assets: Real estate: Real estate, at cost $687,902 $669,923 Less: accumulated depreciation (14,779) (10,257) Real estate, net $673,123 $659,666 Real estate-related Intangible assets, net 246,503 262,531 Total real estate, net and real estate-relate
Slide 18: Portfolio Reconciliation
Portfolio Reconciliation Signed in Q3 '19 + 6/22/17 Closed Subsequent Pro Forma (PO) 9/30/17: 9/30/18 9/30/19 to Q3'19 Total Net investment in Sales-Type Leases 2 2 $465 - - Ground Lease Receivables, net - - - $73 - - Real estate, net (Operating Leases) $265 $410 $527 $673 - - Add: Accumulated depre
Slide 19: Appendix: Leverage
Appendix Leverage September 30, 2019 Book Debt $692 Book Equity $845 Leverage (Debt to Equity) 0.8x Combined Property Value (CPV)!”) $3,976 Debt as a % of CPV 17.4% Target Leverage <2.0x Target Debt as a % of CPV <25% 19
Slide 20: Appendix: Glossary
Appendix Glossary Aggregate Cost Basis Aggregate Gross Book Value Annualized Cash Rent Cash Rent Cost Basis Combined Property Value (CPV) Current Portfolio Effective Yield Gross Book Value (GBV) Interest Rate Leverage Owned Residual Portfolio Percentage Rent Rent Coverage Safehold™/Safehold™ Ground