17 slides from Safehold Inc. New's earnings presentation, Aug 1, 2023
Slide 1: Q2'23 Earnings Results
Q2’23 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: Q2'23 Highlights
Q2’23 Highlights Solid Portfolio Metrics1 $6.3 Billion $10.1 Billion 42% / 3.7x Total Portfolio Aggregate GBV2 Total Portfolio Estimated UCA GLTV / Rent Coverage3 Available Capital Sources $500 Million $816 Million $2.0 Billion Joint Venture with Leading Sovereign Cash & Credit Facility Availability
Slide 4: Portfolio Growth
Portfolio Growth1 Three multifamily ground leases Aggregate GBV (Ground Leases) • $112m Safehold ($32m funded, $80m unfunded) Estimated Unrealized Capital Appreciation $129m • $17m JV Partner ($6m funded, $11m unfunded) 31% GLTV / 2.5x rent coverage4 New Originations3 23x 7.2% w.a. Inflation Adjuste
Slide 5: Earnings Results
Earnings Results Y/Y Y/Y Q2'23 Q2'22 YTD'23 YTD'22 Change Change Revenues $85.7m $64.9m 32% $164.0m $125.2m 31% Net Income GAAP $22.1m $22.7m -2% $26.8m $47.6m -44% Attributable to Safehold Inc. Excluding Merger & Caret common shareholders Related Costs and $22.6m $23.1m -2% $48.8m $48.0m 2% Non-Rec
Slide 6: Portfolio Yields
Portfolio Yields (Core Ground Lease Portfolio Gross Book Value: $6.1b on 92-Year W.A. Lease Term w/ Ext.)1 Inflation Adjusted Yield2 Annualized Cash Yield 3.5% ($202m Annualized In-Place Cash Rent) 5.8% Based on current 2.23% FRED Breakeven Inflation Rate3 Illustrative Caret Adjusted Yield Annualize
Slide 7: Portfolio Diversification
Portfolio Diversification Safehold primarily invests in the top 30 MSAs across the U.S., positioned for long-term sustainable growth $6.1b Core Ground Lease Portfolio Top 10 Markets (92-year w.a. extended lease term) 1. Manhattan (23%)1 – 10 Assets 2. Washington D.C. (11%) – 17 Assets 3. Boston (7%)
Slide 8: Capital Structure
Capital Structure Debt Overview Debt Activity & Metrics In April, entered into $500m swap to fix Non-Recourse Secured $500m SOFR at 3.0% on revolver borrowings $1,498m Pro-Rata Held by JVs 30-year treasury hedges outstanding Total $272m $400m with w.a. rate of 3.47% $4.3b Unsecured Unsecured Notes R
Slide 9: Appendix
Appendix 9 Safehold | The Ground Lease Company | August 2023
Slide 10: Income Statement
APPENDIX Income Statement For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Revenues: Interest income from sales-type leases $58,158 $48,247 $115,220 $91,278 Operating lease income 16,750 16,452 37,651 33,418 Interest income - related party 2,381 - 2,381 - Oth
Slide 11: Balance Sheet
APPENDIX Balance Sheet As of June 30, 2023 As of December 31, 2022 Assets: Net investment in sales-type leases $3,167,964 $3,106,599 Ground Lease receivables 1,484,948 1,374,716 Real estate: Real estate, at cost 740,971 740,971 Less: accumulated depreciation (37,385) (34,371) Real estate, net 703,58
Slide 12: Portfolio Reconciliation
APPENDIX Portfolio Reconciliation IPO (6/22/17) 6/30/19 6/30/20 6/30/21 6/30/22 6/30/23 Net investment in Sales-Type Leases - $160 $1,045 $1,432 $2,912 $3,168 Ground Lease receivables - - $477 $680 $1,236 $1,485 Pro-rata interest in Ground Leases held as - - $343 $438 $443 $472 equity method investm
Slide 13: Earnings Reconciliation
APPENDIX Earnings Reconciliation For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Net income attributable to Safehold Inc. common shareholders $22,130 $22,678 $26,812 $47,551 1 Add: Merger & Caret related costs and non-recurring gains 425 446 22,023 446 Net i
Slide 14: Caret Timeline
APPENDIX Caret Timeline 2H’18: Feb’22: Nov’22: Formed a subsidiary called “Caret” designed to help recognize the value 3 participants from Series A round Outside investors participate in Series of the capital appreciation above Cost committed under same terms and A round3 Basis. Employee performance
Slide 15: Caret Ownership
APPENDIX Caret Ownership SAFEHOLD (NYSE: SAFE) 100% ~82% GL Units Caret Units Rent Stream plus Original Cost Capital Appreciation above Original Basis and certain other cash flows Cost Basis under specified circumstances ~15% Employees 2018 Incentive Plan Series A Round Investors1 ~3% MSD Partners 3
Slide 16: 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 17: 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