17 slides from Safehold Inc. New's earnings presentation, Oct 31, 2023
Slide 1: Safehold: The Ground Lease Company
Gatehot es
Slide 2: Forward-Looking Statements and Other Matters
- Safehold Forward-Looking Statements and Other Matters This resentation may contaia forward-looking statements. All statements other than statements of historial fact are forward-looking statements. These forward-looking statements can be identified bythe use of words suchas “ilustrative", "represe
Slide 3: Q3'23 Highlights
Q3'23 Highlights Capital Markets Activities Portfolio Metrics! Capital Sources $152m Equity Raise 7.1m Shares at $21.40/sh (0.7m Shares Sold to MSD and insiders) $6.4b / $10.0b Total Portfolio Aggregate GBV?/ Total Portfolio Estimated UCA / $858 Million Cash & Credit Facility Availability® Moody’s U
Slide 4: Portfolio Growth
. aha Portfolio Growth! = One new origination of $19m Estimated Unrealized Capital Appreciation m Aggregate GBV (Ground Leases} * Fully funded Q3 st * Multifamily ground lease Activity = 43% GLTV3/3.2x Rent Coverage’ * 7.1% Economic Yield Day 19 x fantoigcronn X since ipo? * Two new originations of
Slide 5: Earnings Results
Earnings Results = Y/Y decline in GAAP Net Income and EPS includes $145.4m ($2.14/sh] for the full impairment of goodwill = Market capitalization has persisted below Safehold’s book equity which triggered a GAAP goodwill impairment * Y/Y decline in EPS excluding merger & Caret related costs and non-
Slide 6: Portfolio Yields
aha Portfolio Yields (Core Ground Lease Portfolio Gross Book Value: $6.2b on 92-Year W.A. Lease Term w/ Ext.]! 5 2 % = $207m annualized in-place Cash Rent. $321m annualized in-place Net Rent = Annualized Yield is based on GAAP treatment, which assumes a 0% growth / inflation environment for the rema
Slide 7: Portfolio Diversification
Safehold Portfolio Diversification es Safehold primarily invests in the top 30 MSAs across the U.S., which we believe are positioned for long-term sustainable growth $6.2b Core Ground Lease Portfolio Top 10 Markets (% of Gav, Count, Rent Coverage’, GLTV') (92-year w.a. extended lease term) 1, Manhat
Slide 8: Capital Structure
Capital Structure Debt Overview Non-Recourse Secured Unsecured SHED Notes es Total Pro-Rata Held C es Seep $0.3b Unsecured Revolver $1.0b ($0.85b remaining capacity) Swapped to fix SOFR at ~3.0% through Apr'28 EE (current ~S3m/quarter savings in interest expense flowing through P&L] ill to permanent
Slide 9: Appendix
Gachad Appendix
Slide 10: Income Statement
APPENDIX Income Statement Revenue: Interest income from sales-type leases Operating lease income Interest income - related party Other income Total revenues Costs and expenses: Interest expense Real estate expense Depreciation and amortization General and administrative General and administrative -
Slide 11: Balance Sheet
APPENDIX Gafchold Balance Sheet ‘As of September 30,2023 As of December 31, 2022 Assets: Net investment in sales-type leases $3,182,592 $3,106,599 Ground Lease receivables, net 1,563,670 1,376,716 Real estate: Real estate, a cost 46571 10.971 Less: accumulated depreciation (36,992) (34,371) Real est
Slide 12: Portfolio Reconciliation
APPENDIX Portfolio Reconciliation Net investment in Sales-Type Leases Ground Lease receivables Pro-rata interest in Ground Leases held as equity method investments Real estate, net (Operating Leases) Add: Accumulated depreciation Add: Lease intangible assets, net Add: Accumulated amortization Add: O
Slide 13: Earnings Reconciliation
APPENDIX Gafehold Earnings Reconciliation For the three months ended For the nine months ended September 30, 2023 2022 2023 1022 Net income {loss} attributable to Safehold Inc. common shareholders ($122,969) $66,077 ($96,157) $113,628 Add: Impairment for goodwill 145,365 - 145,365 z ‘Add: Merger & C
Slide 14: Caret Timeline
APPENDIX Safehold Caret Timeline 2H'18: Formed a subsidiary called “Caret” designed to help recognize the value of the capital appreciation above Cost Feb'22: Nov'2. 3 participants from Series A round Outside investors participate in Series committed under same terms and Around? Basis. Employee perf
Slide 15: Caret Ownership
APPENDIX Caret Ownership SAFEHOLD (NYSE: SAFE} 100% ~82% GL Units Rent Stream plus Original Cost Basis and certain other cash flows Note: Ownership percentages based on outstanding Caret units (i) Including commitment te purenace 28571 unite Safehold | The Ground Lease Company | Novembe 2023 Caret U
Slide 16: Unrealized Capital Appreciation Details
APPENDIX Unrealized Capital Appreciation Details Safehold Refer tothe Glossary in the Append fora definition of Oxned Residual Portfolio, Unrealized Capital Appreciation ["UCAL and “Combined Property Value" "CPV". SAFE relies in parton CBRE"s valuations ofthe CPV of ‘our portftoin calculating UCA. S
Slide 17: Glossary
APPENDIX Glossary Safehold ‘agregate Cost Basis Represents Gost Gass plus unfunded commitments athe Core Ground Lease Pola, For unfunded commitments, & represents the aggregate flare amount a be paid under the comment ‘Aggregate Gross Book Value Represents the Grose Book Value plus untunded commitme