Safehold Inc. New · NYSE:SAFE
Safehold Inc. New — Safehold — Q2 2019 Earnings Presentation
21 slides from Safehold Inc. New's earnings presentation, Jul 26, 2019
Slide 1: Q2 '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: Safehold
Safehold
Slide 4: Highlights
Highlights Raising Earnings Growth Investment Target Improving Liabilities Recent Financings Have W.A. Debt Maturity of $1B 38 Years" Upsized 2019 Investment Target from $750M $ 1 0 8) M Increase to Revolving Credit Facility Commitments!) Safehold
Slide 5: Q2 '19 Earnings Results
Q2 ‘19 Earnings Results Revenue Net Income Earnings per Share Aggregate Gross Book Value of Portfolio $1,135M Unrealized Capital Appreciation in Owned $2.2B Residual Portfolio Safehold
Slide 6: Investment Activity
Investment Activity $43M $143M Closed in Q2 19 Signed PSA in Q2 19 W.A. Effective W.A. Rent W.A. GBV as a Yield Coverage % of CPV") 5.7% 3.6x 39% shown above are based on $186M of total investment activity. Metrics assume investments under PSA close in accordance with their terms using Gross Book Va
Slide 7: Gaining Traction and Raising Investment Target
Gaining Traction and Raising Investment Target Raised Full Year Investment Target to $1B from $750M Pipeline Metrics") (1) Pipeline refers to transactions under signed letter of intent and purchase agreement as of June 30, 2019, There can be no assurance that transactions under purchase agreement wi
Slide 8: Debt Overview
Debt Overview (As of July 26, 2019) Improving Liability Structure” W.A. Maturity Debt W.A. W.A. Outstanding Cash Rate Interest Rate $603M 3.5% 4.1% 23 Years Upsized Revolver” $450M Refinanced short-term debt $350M with long-term financing im CI Expanded Bank Group | Upsized Revolver Capacity by $100
Slide 9: Unrealized Capital Appreciation of $2.2B
Unrealized Capital Appreciation of $2.2B $2.2B The Unrealized Capital Appreciation in Our Owned Residual Portfolio is calculated as today’s estimated Combined Property Value (CPV) less the Aggregate Cost Basis of SAFE’s $1.4B portfolio. CBRE conducts independent appraisals of the CPV of each asset."
Slide 10: Safehold
Safehold 10
Slide 11: Geographic Diversification by MSA
Geographic Diversification by MSA (Current Portfolio Gross Book Value: $1,051M) D 0.8% <¥ konica LSS Philadelphia = : i Washington, D.C. VAtyg) Raleigh-Durham Safehold rr
Slide 12: Portfolio Stratification
Portfolio Stratification (Current Portfolio Gross Book Value: $1,051M) Hotel Office & Sa Industrial 47% Property Type Multifamily 26% 3.0-4.0x 57% Rent 5.0xe Coverage 32% (WA. 4.3%) ties >60 yrs 75% Lease Term Remaining Fixed Bumps w/ w/ Extensions 20 ts Inflation (W.A. 82 Years) 2% Adjustments 55%
Slide 13: Portfolio Metrics
Portfolio Metrics (Current Portfolio Gross Book Value: $1,051M) ve Total Annualized Less: Annualized GAAP Rent Depreciation & fincl, % rent) aa Amortization?) $81.2M $10.8M Gross Book Value as a % of CPV!) 36% W.A. Lease Term Net Yield Amount (% of GBV] $70.4M 6.7% Rent Coverage 4.3x W.A. Lease Term
Slide 14: Safehold
Safehold 14
Slide 15: Appendix: Owned Residual Portfolio - $3.3B
Appendix Owned Residual Portfolio - $3.3B Safehold tracks its Owned Residual Portfolio based on its contractual reversion right to own the combined land, buildings and other improvements on its land at the end of the lease." In total, the portfolio encompassed 9.3M square feet of real estate and had
Slide 16: Appendix: Leverage
Appendix Leverage June 30, 2019 Book Debt $545 Book Equity $593 Leverage (Debt to Equity) 0.9x Combined Property Value (CPV)! $3,223 Debt as a % of CPV 16.9% Target Leverage <2.0x Target Debt as a % of CPV 25% Safel 16
Slide 17: Income Statements
Income Statements For the three months ended June 30, For the six months ended June 30, 2019 2018 2019 2018 Revenues: Operating lease income $17,196 $9,861 $37,712 $21,141 Interest income from sales-type leases 1,880 B 2,802 4 Other income 604 1,713 986 2,126 etal revenues $19,680 $11,574 $41,500 $2
Slide 18: Balance Sheets
D Safel hold Balance Sheets June 30, 2019 December 31, 2018 Assets: Realestate Real estate, gross Accumulated depreciation Real estate, net Real estate-related intangibles, net|'! Ground lease assets, net Net investment in leases Cash and cash equivalents Other assets Total assets Liabilities: Debt
Slide 19: Portfolio Reconciliation
Portfolio Reconciliation Safel hold June 30, 2019 Net investment in leases (Sales Type Leases) $160 Real estate, net (Operating Leases) $663 Add: Accumulated depreciation 13 Add: Lease intangible assets, net 235 Add: Accumulated amortization 12 Add: Other assets 25 Less: Lease intangible liabilities
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 Estimated Underlying Property NOI Gross Book Value [GBV) Represents Cost Basis plus forward commitments. For forward commitments
Slide 21: Appendix: Glossary
Appendix Glossary Gross Book Value as % of CPV Interest Rate Leverage Percentage Rent Safehold™/Safehold™ Ground Lease Rent Coverage Total Annualized GAAP Rent Underlying Property Nol Unrealized Capital Appreciation Yield Calculated as Gross Book Value divided by CPV. The Company believes the metric