19 slides from Safehold Inc. New's earnings presentation, 2022
Slide 1: Q4 '21 & FY '21 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: Q4 '21 & FY '21 Highlights
Q4 ‘21 & FY ‘21 Highlights Accelerating Momentum in Q4 ‘21 17 $777m 1.4b Record # of New Investment Growth in L Ground Leases Closed Activity” Estimated UCA Growing Scale in 2021 106 $1.5b 8.1b Total # of New Investment Estimated UCA L Ground Leases in Portfolio Activity” at 12/31/21 Positioned for
Slide 4: Earnings Results
Earnings Results Quarterly Full Year Results Results r . Y/Y ‘ c Y/Y Q4 21 Q4 ‘20 FY 21 FY ‘20 Revenue $52.0m | $39.9m $187.0m | $155.4m Net Income $21.3m | $15.3m $73.1m | $59.3m EPS $0.38 $0.29 $1.35 $1.17
Slide 5: Investment Activity
Investment Activity Quarterly Activity Origination Metrics C 4.9% w.a. Underwritten Effective Yield” $777m Origination 3 G 4.7% waa. Effective Yield $686m Funded = $91m Unfunded $706m Funding C 41% w.a. GLTV" G 3.7x w.a. Rent Coverage” $686m New = $20m Funding Investments Prior Investments G17 groun
Slide 6: Portfolio Growth
Portfolio Growth Q4 ‘21 Investments $4.8b $3.2b $2.7b $0.9b $0.3b IPO Q4'18 Q4‘19 Q4 ‘20 Q4'21 (6/22/2017) Note: Please see the “Important Note re COVID-19" in the front of this presentation for a statement about metrics this quarter. Pictures of properties that are currently under development are p
Slide 7: Portfolio Metrics
Portfolio Metrics (Current Portfolio Gross Book Value: $4,599m] [ Yield Metrics" Property Type | Office 50% Multifamily Underlying 34% Property —— Other Hotel <1% 15% [ Credit Metrics” | Lease Term | Lease Term Remaining w/ Ext. Note: Please see the “Important Note re COVID-19" in the front of this
Slide 8: Inflation Protected Cash Flows
Inflation Protected Cash Flows Illustrative Safehold™ Ground Lease 3% Initial Yield | 2% Rent Bumps per Annum | 10-Year CPI Lookbacks | 3% per Annum Inflationary Environment CPI Lookbacks continue periodically throughout the life of the lease, which can provide meaningful inflation protection that i
Slide 9: Geographic Breakdown
Geographic Breakdown (Current Portfolio Gross Book Val Northeast Portland 37% Minneapolis 5 i New Haven a ‘ Central [4 Newyork _| 4% e) Philadelphia Washington, D.C. Mid-Atlantic ~ ashville 5 ie) Raleigh-Durham Southeast \ ° MEE 12% San Diego r Jacksonville @ Honolulu bo) Tampa C3 Orlando —s San Ant
Slide 10: Capital Structure
Capital Structure Debt Overview | | Capital Updates | [ Credit Ratings ] Non-Recourse Secured $1,498m Total Unsecured Revolver $490m rs [$860m remaining capacity] ' Unsecured Notes Pro-Rata Held by JVs H 1 $750m $272m | Placed of 3.980% Senior! ea) | Unsecured Notes due 20521 23 year w.a. maturity’
Slide 11: Estimated Unrealized Capital Appreciation
Estimated Unrealized Capital Appreciation $8.1b Total Square Feet: 26.4m_ 90% | |+$1.4b CAGR in Q4'21 Office Multifamily = | 411.0m —-11.6m $4.8b : Sq. Ft. Sq. Ft. : (13.7k Units} Hotel Other si | 3.5m 0.3m Sq. Ft. Sq. Ft. $0.4b : (4.7k Keys] IPO a4 ‘18 419 Q4'20 4°21 (6/22/2017) Note: Please see th
Slide 12: Caret Transaction
Caret Transaction Transaction Overview In Q1 ‘22, we sold and received commitments to purchase 1.37% of the total authorized Caret Units for $24.0 million at a valuation of $1.75 billion, from a group of leading private equity, sovereign wealth and high net worth investors. Path to Liquidity We are
Slide 13: Caret Overview
Caret Overview" Just as a ground lease splits the land from the building, Caret generally enables us to split our portfolio of ground leases into: (1) the right to the rent stream, the original cost basis and certain other cash flows (GL Units} and (2) the right to the capital appreciation above the
Slide 14: Safehold
ys Safehold =
Slide 15: Income Statements
Income Statements For the three months ended Dec 31, _- For the twelve months ended Dec 31, 2021 2020 2021 2020 Revenues: Interest income from sales-type leases $35,580 $22,529 $118,824 $81,844 Operating lease income 16,300 17,252 67,667 72,340 Other income 133 128 523 1,243 Total revenues $52,013 $
Slide 16: Balance Sheets
Balance Sheets Note: Figures in December 31, 2021 December 31, 2020 Assets: Real estate: Real estate, at cost Less: accumulated depreciation Real estate, net Real estate-related intangibles assets, net Total real estate, net and real estate-related intangible assets, net Net investment in sales-type
Slide 17: Portfolio Reconciliation
Portfolio Reconciliation IPO (6/22/17) 12/31/18 12/31/19 12/31/20 _ 12/31/21 Net investment in Sales-Type Leases - - $985 $1,306 $2,413 Ground Lease receivables - - $397 $577 $796 Pro-rata interest in Ground Leases held as equity method investments - - $340 $345 $441 Real estate, net (Operating Leas
Slide 18: Appendix: 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 appraisals of the CPV of our portfolio in calculating UCA
Slide 19: Appendix: Glossary
Appendix Glossary Aggregate Cost Basis Aggregate Gross Book Value Annualized Cash Yield Annualized Yield Cash Interest Rate Cash Rent Combined Property Value (CPV) Cost Basis Current Portfolio Effective Interest Rate Effective Yield GAAP Rent Gross Book Value (GBV) Ground Lease-to-Value (GLTV) Groun