Safehold Inc. New · NYSE:SAFE
Safehold Inc. New — Safehold — Investor Presentation (November 2020)
22 slides from Safehold Inc. New's investor presentation, November 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION November 2020
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: Executive Summary
Executive Summary Strong Portfolio and Customer Growth Strong Strong Revenue and EPS Growth Performance #1 Performing Publicly-Traded REIT since 12/31/18 (1) Leader in Developing New Capital Solution for $7 Trillion CRE Market Big Go-Forward Strong Pipeline Building Across Multiple Markets and Prope
Slide 4: Strong Portfolio Growth
Strong Portfolio Growth Safehold Portfolio A Better CRE (Aggregate Gross Book Value) Customer Solution (2) $3.0b Improved Capital Efficiency 91% CAGR $1.5b Improved Cost Efficiency $0.8b $0.5b Significant $0.3b Risk Reduction IPO Q3 '17 Q3 '18 Q3 '19 Q3 '20 (1) (6/22/2017) (Pro Forma) Note: Please r
Slide 5: High Quality Assets Across Top Markets
High Quality Assets Across Top 30 Markets Seattle - Multifamily Washington, D.C. - Office Phoenix – Student Housing Atlanta – Office Philadelphia – Multifamily Los Angeles - Multifamily 5
Slide 6: Strong Financial Growth
Strong Financial Growth Revenue EPS $38.0m $0.28 $22.3m $0.15 $0.11 $11.6m $6.3m $(0.04) Q3 '17 Q3 '18 Q3 '19 Q3 '20 Q3 '17 Q3 '18 Q3 '19 Q3 '20 6
Slide 7: Safety During Turbulent Times
Safety During Turbulent Times Safehold typically has a residual right to regain possession of land and take ownership of the building upon a tenant default, which provides strong incentive for its customers and its customers’ lenders to pay rent. In addition, typical Combined Property Value signific
Slide 8: Attractive Returns vs. Bond Comparison
Attractive Returns vs. Bond Comparison Portfolio with contractual rent increases creates long-term compounding cash flows that generate superior returns versus similar risk and similar maturity fixed income securities Illustrative Ground Lease vs. 100-Year MIT Bond 22.6% “High quality 99-year bonds
Slide 9: Strong Shareholder Value Growth
Strong Shareholder Value Growth Stock price has benefitted from rapid growth, accretive returns and a growing understanding of SAFE’s modern ground lease solution $66.50 43% $61.00 #1 Share Price CAGR $46.88 Performing Publicly-Traded REIT since 12/31/18(1) $34.00 $28.00 $20.00 $120m Equity Capital
Slide 10: Big Go-Forward Opportunity - Growing Pipeline
Big Go-Forward Opportunity - Growing Pipeline $570m (1) Pipeline $69m $501m PSA + Unfunded LOI Commitments 12 8 8 8 Transactions Multifamily Markets New Clients (1) There can be no assurance that we will complete any of these transactions. 10
Slide 11: Innovative Expansion
Innovative Expansion Safehold Platform Innovative Growth Programs Providing new ground lease products to penetrate deeper into market Creator of Modern GL Concept New Potential Ground Lease Fund (1) Focused on pre-development opportunities outside of Safehold’s “shovel ready” criteria Nationally-s
Slide 12: Unrealized Capital Appreciation Growth
Unrealized Capital Appreciation Growth $5.2b 109% CAGR(1) $2.8b $1.6b $1.0b $0.4b IPO Q3 '17 Q3 '18 Q3 '19 Q3 '20 (2) (6/22/2017) (Pro Forma) Note: Please see the “Important Note re COVID-19” in the front of this presentation for a statement about UCA. Refer to the Glossary in the Appendix for a def
Slide 13: UCA – A Simple Explanation
UCA – A Simple Explanation Each time we execute a typical ground lease, we know at the end of the lease term, we will own whatever is on top of the land Since we will eventually own it, we track the estimated value of whatever is on top of our basis across our whole portfolio and report the current
Slide 14: Current UCA Portfolio
Current UCA Portfolio IPO Q3 ’18 Q3 ’19 Q3 ’20 (Pro Forma) (1) $0.4b $1.6b $2.8b $5.2b Note: Images show current pictures of certain buildings on land that we own and have leased to tenants. Under the terms of a typical GL, title to any then-existing improvements on the land reverts to us at the end
Slide 15: Appendix
APPENDIX ys Safehold
Slide 16: Diversified Portfolio
Appendix Diversified Portfolio (Q3 ’20 Current Portfolio Gross Book Value: $2,845m) Focused on Top 30 Markets Seattle Portland Northeast Minneapolis 45% West Milwaukee 23% New Haven Central New York San Francisco Detroit San Jose Salt Lake City 3% Philadelphia Washington, D.C. Colorado Mid Atlantic
Slide 17: Capital Structure
Appendix Capital Structure $3.5b $1.4b $1.7b Equity Book Equity Total Debt(2) Market Cap $459m cash and revolver availability 4.0% w.a. Effective Interest Rate (as of October 21, 2020) 3.1% w.a. Cash Interest Rate >$1b purchasing power (assuming 2x leverage) In October, added new bank relationship t
Slide 18: Better Capital Solution
Appendix Better Capital Solution Making ground leases modern , efficient, and value-enhancing for building owners Improved Improved Significant Capital Efficiency Cost Efficiency Risk Reduction $65m Near-term maturity risk $100m Transfer Tax Mortgage Recording Tax $35m The Building Title Insur
Slide 19: Income Statements
Appendix Income Statements For the three months ended Sept 30, For the nine months ended Sept 30, 2020 2019 2020 2019 Revenues: Operating lease income $17,195 $17,132 $55,088 $54,844 Interest income from sales-type leases 20,583 4,032 59,315 6,834 Other income 222 1,146 1,115 2,132 Total revenues $3
Slide 20: Balance Sheets
Appendix Balance Sheets September 30, 2020 December 31, 2019 Assets: Real estate: Real estate, at cost $707,537 $687,902 Less: accumulated depreciation (20,807) (16,286) Real estate, net $686,730 $671,616 Real estate-related intangibles assets, net 239,172 242,837 Total real estate, net and real est
Slide 21: Portfolio Reconciliation
Appendix Portfolio Reconciliation IPO (6/22/17) 9/30/17 9/30/18 9/30/19 9/30/20 Pro Forma Net investment in Sales-Type Leases - - - $465 $1,089 Ground Lease receivables, net - - - $73 $480 Pro-rata interest in Sales-Type Leases held as equity method investments - - - - $344 Real estate, net (Operati
Slide 22: Glossary
Appendix Glossary Represents Cost Basis plus unfunded commitments. For unfunded commitments, it represents the aggregate future amount to be paid under the Aggregate Cost Basis commitments. Represents the Current Portfolio plus unfunded commitments. For unfunded commitments, it represents the aggreg