Safehold Inc. New · NYSE:SAFE
Safehold Inc. New — Safehold — Investor Presentation (December 2021)
20 slides from Safehold Inc. New's investor presentation, December 2021
Slide 1: Investor Presentation December 2021
INVESTOR PRESENTATION December 2021
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: Executive Summary
Executive Summary Safehold is the leader of the rapidly growing modern ground lease industry Upside of Unrealized Strong Inflation Capital Appreciation Growth Protection (UCA) Large Market Opportunity Inflation Protected UCA Measurement Cash Flows Market Leader Inflation Protected UCA as a Scaling A
Slide 4: Why Safehold’s Ground Lease is Better
Why Safehold’s Ground Lease is Better Old Ground Lease Industry Safehold Modern Ground Lease Land Owner Building Owner Land Owner Building Owner Win Lose Win Win • One-sided ground lease hurts building value • Well-structured ground lease increases building value Better for • Building owner dislikes
Slide 5: Strong Growth & Stock Performance
Strong Growth & Stock Performance Net Income Revenue (Including NCI) Strong Shareholder $175m Performance (2) $67m $145m $55m $79m 37% #1 Stock Price CAGR Performing Nareit $27m Since IPO Member Stock in (6/21/17 – 9/22/21) 2019 & 2020 $76.00 Q3 '19 Q3 '20 Q3 '21 Q3 '19 Q3 '20 Q3 '21 (TTM) (TTM) (TT
Slide 6: Q3 ’21 Investment Activity
Q3 ’21 Investment Activity Quarterly Activity Origination Metrics Portfolio Growth $4.0b 4.9% w.a. Underwritten 12x $321m Effective Yield (2) Growth (4) Since IPO (1) 4.8% w.a. Effective Yield Originations $2.9b 41% w.a. GLTV (3) $300m Funded $21m Unfunded 3.2x w.a. Rent Coverage (3) 6 ground lease
Slide 7: Growth Opportunity is Large
Growth Opportunity is Large Big Market Unique Platform Scalability Sector/Leader (1) One of the First Mover Advantage Largest Markets Ground Lease/SAFE $7 Only Public $4 billion Trillion Ground Lease Company Mkt cap Total estimated size of institutional quality commercial Only Investment Grade real
Slide 8: Inflation Protected Cash Flows
Inflation Protected Cash Flows CPI lookbacks in our portfolio provide significant inflation protection up to ~3% inflation (1) Our Long-term fixed rate debt provides enhanced interest rate and inflation protection during its term Illustrative Safehold™ Ground Lease Cash Flows with Rising Inflation 1
Slide 9: Unrealized Capital Appreciation (UCA)
Unrealized Capital Appreciation (UCA) Contractual Capital Appreciation Ownership Growth Dynamic Measurement – At the end of its typical ground lease, SAFE – We track and report the current spot – “External Growth” - each time a will own everything on top of the land value of UCA Safehold ground leas
Slide 10: Understanding the UCA Asset
Understanding the UCA Asset What Does It Mean to Be the What Does It Mean for An Asset Future Owner of Assets with a to Grow from $400m to $6.7b in Current Value of $6.7b? 4.5 years? Because UCA is tangible, its underlying value transparent and its growth trackable, we believe this asset can be valu
Slide 11: Current UCA Portfolio
Current UCA Portfolio 89% +$624m from 7 new properties CAGR added to UCA in Q3 ’21 (1) (From IPO to Q3 ‘21) IPO Q3 ‘19 Q3 ’21 $0.4b $2.8b $6.7b Note: Images show current pictures of certain buildings on land owned by SAFE that is leased to tenants. Under the terms of a typical Ground Lease, title to
Slide 12: Safehold’s Growth Model
Safehold’s Growth Model Virtuous Cycle Attractive Growth 1 & Attractive Returns Increases Expands Market 5 2 Shareholder Adoption Value & Scale Lowers Cost of Lowers Cost of 4 Capital to 3 Capital for Customers Safehold Safehold’s business model promotes a virtuous cycle of growth and value creation
Slide 13: Appendix
APPENDIX yo Safehold | |
Slide 14: Geographic Breakdown
Appendix Geographic Breakdown (Current Portfolio Gross Book Value $3,879m) Seattle Portland Northeast Minneapolis 39% West Milwaukee 26% New Haven San Francisco Central Detroit New York 2% Denver Philadelphia San Jose Salt Lake City Washington, D.C. Mid-Atlantic Los Angeles Nashville 15% San Diego P
Slide 15: Capital Structure
Appendix Capital Structure Debt Overview Equity Offering Credit Ratings Non-Recourse Baa1 Secured $1,498m Unsecured Revolver Moody’s Total $242m (Stable Outlook) $165m $2.3b ($835m remaining capacity) Pro-Rata Held by JVs Equity raised at $76 per share $272m BBB+ Unsecured Notes Fitch $400m (Stable
Slide 16: Income Statements
Appendix Income Statements For the three months ended Sept 30, For the nine months ended Sept 30, 2021 2020 2021 2020 Revenues: Operating lease income $16,992 $17,195 $51,367 $55,088 Interest income from sales-type leases 30,145 20,583 83,244 59,315 Other income 144 222 390 1,115 Total revenues $47,
Slide 17: Balance Sheets
Appendix Balance Sheets September 30, 2021 December 31, 2020 Assets: Real estate: Real estate, at cost $740,971 $752,420 Less: accumulated depreciation (26,835) (22,314) Real estate, net $714,136 $730,106 Real estate-related intangibles assets, net 222,606 242,166 Total real estate, net and real est
Slide 18: Portfolio Reconciliation
Appendix Portfolio Reconciliation IPO (6/22/17) 9/30/18 9/30/19 9/30/20 9/30/21 Net investment in Sales-Type Leases - - $465 $1,089 $1,802 Ground Lease receivables - - $73 $480 $691 Pro-rata interest in Ground Leases held as equity method investments - - - $344 $439 Real estate, net (Operating Lease
Slide 19: 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 20: Glossary
Appendix Glossary Aggregate Cost Basis Represents Cost Basis plus unfunded commitments. For unfunded commitments, it represents the aggregate future amount to be paid under the commitments. Aggregate Gross Book Value Represents the Current Portfolio plus unfunded commitments. For unfunded commitment