20 slides from Safehold Inc. New's earnings presentation, 2019
Slide 1: IN TEN >
IN TEN > ~ DE Ci ier
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!) Va N Institutional Quality Assets & Customers Trophy Properties Creative Solutions Increasing Adoption In Major Markets New SAFE x SWAP
Slide 5: Q3 '19 Earnings Results
Q3 ‘19 Earnings Results Magseium YID'19 YID‘'18 BAvA@eii) Revenue $63.8M $34.9M sini to Safehold) $16.6M $7.4M Earnings per Share!) $0.62 $0.41 Note: Q3 ‘19 and YTD ‘19 results include a $2.0M charge associated with the early prepayment of short-term financing and $0.8M of JV transaction structuring
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 1911) W.A. W.A. W.A. Rent W.A. GBV as a Underwritten Effective Yield Coverage"! % of CPV"4! Effective Yield!2) (Excludes FMV Resets) 5.3% 4.9% 4.2x 36% Note: Metrics shown above are based
Slide 7: Trophy Assets & Institutional Customers
Trophy Assets & Institutional Customers 425 Park Avenue: Alohilani Resort: First New Office SAFE x SWAP with 135 West 50" Street: 195 Broadway: Development on Park Ave. Large European $25B Core Fund Client Landmark New York Office in 50 Years Institutional Investor JV Formed (PSA) CLOSED PSA PSA 7
Slide 8: SAFE x SWAP Program
SAFE x SWAP Program SAFE x SWAP Program Details oy =poe5 = on . Waikiki Beach Buy existing archaic ground lease J . G 2490 Kalakaua Ave., Honolulu, HI ‘ Closing Date: September 24, 2019 Remove outdated provisions that Customer Customer contacted Safehold to modernize the archaic create uncertainty a
Slide 9: Rapid Portfolio Growth
Rapid Portfolio Growth $2,470M (===) l I I I ! 7X I Il Growth Since , 1 IPO $1,536M I l I I l | I | I | 1 | $770M I | $497M i 1 $339M | I | I I ee IPO (6/22/17) Q3"17 Q3"18 a3"19 Pro Forma @4'19!1) Note: 3 "19 amounts provided using Aggregate Gross Book Value and is comprised of the current portfoli
Slide 10: Capital Structure Improvements
Capital Structure Improvements Equity D 2 vi as 1 Debt!" 2 Yee tin D/ AT Revolving . C EXE ; ’ Credit Facility anne Bank Gre psized, Amended {1} Includes financings closed subsequent to the end of the third quarter. Excludes rate locked financings for ground leases under signed PSA and the revolving
Slide 11: Unrealized Capital Appreciation Growth
Unrealized Capital Appreciation Growth 10x UCA Growth Since IPO $0.4B IPO (6/22/2017) 75%" Vesied management LTIP $1.6B Q3 18 $2.8B Q3°19 Pro Forma Q4 ‘19 In order to highlight the two separate components of value within our portfolio, Safehold separately tracks both the cash flow component [bond ec
Slide 12: Portfolio Statistics
Slide 13: Portfolio Diversification
Portfolio Diversification (Current Portfolio Gross Book Value: $1,452M) New York Fastest Growing Market Honolulu & Austin New Market Expansion Office & Industrial 4L% Geographic Diversification Property Type Diversification Seattle é Minneapolis Portland 0.29 m Pe 0.1% Milwaukee San Francisco os 0°
Slide 14: Portfolio Metrics
Portfolio Metrics (Current Portfolio Gross Book Value: $1,452M) | Credit Metrics | | Lease Term W.A. Rent Coverage!) W.A. GBVasa >60 yrs % of CPV rae Term Remaining w/ Ext. = (WA. 86 Years} 15% 20-60 yrs 5% Total Annualized Less: Annualized Net Yield GAAP Rent Depreciation & (% of GBVI an fincl. % r
Slide 15: Safehold
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Slide 16: Appendix: Income Statements
Appendix Income 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 $54,844 $32,708 Interest income from sales-type leases 4,032 - 6834 - Other income 1,146 77 2,132 2,203 Total revenues $22,310 $11,64
Slide 17: Appendix: Balance Sheets
Appendix 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 244,503 262,531 Total real estate, net and real esta
Slide 18: Appendix: Portfolio Reconciliation
Appendix Portfolio Reconciliation Signed in Q3 19 + 6/22/17 Closed Subsequent Pro Forma (IPO) —-9/30/17_—-9/30/18 ~—-9/30/19 to Q3'19 Total Net investment in Sales-Type Leases - - - $465 - - Ground Lease Receivables, net - - - $73 - - Real estate, net (Operating Leases) $265 $410 $527 $673 - - Add:
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 2 % of CPV <25% milli
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 Represents Cost Basis plus