19 slides from Safehold Inc. New's earnings presentation, Apr 26, 2023
Slide 1: Q1'23 Earnings Results
Q1’23 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: 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: Q1'23 Highlights
Q1’23 Highlights Transformative Transaction Closed Internalizes Creates Go-Forward Adds Rating Momentum Management Operating Synergies And MSD Partnership Better Structure Better Economics Better Investor Profile Expanded Capital Sources $500 Million $900 Million $2.0 Billion New Joint Venture with
Slide 5: Portfolio Growth
Portfolio Growth Fundings on existing Aggregate GBV (Ground Leases) Estimated Unrealized Capital Appreciation $70m ground leases in Q1’23 23x $176m Investments made associated Estimated UCA Growth since IPO with merger closing2 18x $9.4b $10.0b Total Square Feet: 33.2m3 Portfolio Growth since IPO1 M
Slide 6: Earnings Results
Earnings Results Y/Y Q1'23 Q1'22 Growth Revenues $78.3m $60.4m 30% Net Income GAAP $4.7m $24.9m -81% Attributable to Safehold Inc. Excluding Merger & Caret common shareholders Related Costs and $26.3m $24.9m 6% Non-Recurring Gains1 GAAP $0.07 $0.42 -82% Earnings Per Share Excluding Merger & Caret Re
Slide 7: Portfolio Yields
Portfolio Yields (Current Portfolio Gross Book Value: $5,967m on 93-Year W.A. Lease Term w/ Ext.)1 Annualized Cash Yield Inflation Adjusted Yield2 3.4% ($199m Annualized In-Place Cash Rent) 5.7% Based on current 2.26% FRED Breakeven Inflation Rate3 Illustrative Caret Adjusted Yield Annualized Yield
Slide 8: Portfolio Diversification
Portfolio Diversification Safehold primarily invests in the top 30 MSAs across the U.S., positioned for long-term sustainable growth Top 10 Markets (% of GBV) 1. Manhattan (24%)1 – 10 Assets 2. Washington D.C. (11%) – 17 Assets 3. Boston (7%) – 3 Assets 4. Los Angeles (7%) – 7 Assets 5. San Francisc
Slide 9: Capital Structure
Capital Structure Debt Overview Debt Activity & Metrics Non-Recourse Secured Incremental Unsecured Revolver Raised $1,498m Pro-Rata Held by JVs $500m ($1.85b total revolving credit facilities) $272m Total $4.2b Unsecured Unsecured Revolver Notes $970m $1,477m ($880m remaining capacity) Baa1 BBB+ (Po
Slide 10: Caret Updates
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 valuation1 Series B Round: In Q3’22, MSD Partners committed to purchase 1.0% of the then-authorized units for an aggregate $
Slide 11: Appendix
Appendix 11 Safehold | The Ground Lease Company | April 2023
Slide 12: Income Statement
APPENDIX Income Statement For the three months ended March 31, 2023 2022 Revenues: Interest income from sales-type leases $57,062 $43,031 Operating lease income 20,901 16,966 Other income 366 366 Total revenues $78,329 $60,363 Costs and expenses: Interest expense $40,873 $25,321 Real estate expense
Slide 13: Balance Sheet
APPENDIX Balance Sheet As of March 31, 2023 As of December 31, 2022 Assets: Net investment in sales-type leases $3,139,831 $3,106,599 Ground Lease receivables 1,431,478 1,374,716 Real estate: Real estate, at cost 740,971 740,971 Less: accumulated depreciation (35,878) (34,371) Real estate, net 705,0
Slide 14: Portfolio Reconciliation
APPENDIX Portfolio Reconciliation IPO (6/22/17) 3/31/19 3/31/20 3/31/21 3/31/22 3/31/23 Net investment in Sales-Type Leases - $129 $1,029 $1,312 $2,740 $3,140 Ground Lease receivables - - $422 $661 $1,017 $1,431 Pro-rata interest in Ground Leases held as - - $342 $346 $442 $446 equity method investm
Slide 15: Earnings Reconciliation
APPENDIX Earnings Reconciliation For the three months ended March 31, 2023 2022 Net income attributable to Safehold Inc. common shareholders $4,682 $24,873 1 Add: Merger & Caret related costs and non-recurring gains 21,597 - Net income excluding merger & Caret related costs and non-recurring gains f
Slide 16: 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 17: 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 18: 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 19: Glossary
APPENDIX Glossary Annualized Yield Calculated as the annualized base Net Rent plus Percentage Rent divided by GBV Aggregate Gross Book Value Represents the Current Portfolio plus unfunded commitments. For unfunded commitments, it represents the aggregate future amount to be paid under the commitment