Safehold Inc. New · NYSE:SAFE
Safehold Inc. New — Safehold — Q1 2019 Earnings Presentation
24 slides from Safehold Inc. New's earnings presentation, Apr 25, 2019
Slide 1: April 25, 2019
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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: Earnings
Earnings Safehold
Slide 4: Q1 '19 Highlights
Q1 ‘19 Highlights Solid Earnings Q119 Y-Y Net $11.1M +198% Income ERS $0.36 +80% Safehold Continued Momentum Aggregate Gross Book Value of Portfolio (Year-over-year} to $1,091M Strong Balance Sheet $250M Equity Raised 30-Year Full-Term 1/0 Financing Structure Created”
Slide 5: Q1'19 Earnings Results
Q1’°19 Earnings Results % Growth Revenue Net Income Earnings Per Share Unrealized Capital Appreciation in Owned Residual Portfolio G Q1’ 19 and Q1’ 18 revenues include the annual percentage rent recognized from the Park Hotel lease * Q1'19 percentage rent income of $3.6M increased 9.1% from $3.3M in
Slide 6: Q1 '19 Investment Activity
Q1 ‘19 Investment Activity Q4 ‘18 Q1‘19 . +$143M of new investment activity +15% quarter-over-quarter growth +76% year-over-year growth More than tripled portfolio since IPO ($884M ($64M Fwd. ($1,016M ($74M Fwd. GBV) Commits.) GBV) Commits.) Q1 '19 Transactions J LAw 947 70/. 4a 6 1X 3/ | % a =m wra
Slide 7: Q1 '19 Investment Details
Q1 ‘19 Investment Details Rotel: thea oe Ip “Ofticell Ena wcll Safehold
Slide 8: Strengthening Balance Sheet
Strengthening Balance Sheet Accretive Financing Equity Capital $122.5M $250M 30-Year, Fixed Rate i 30-Year, Fixed Rate Equity Raised Financing Interest rate of 4.25% C Raised equity from iStar at $20 per share (9% premium to issuance date market price) W.A. LTV of 64% C Portion of proceeds used to p
Slide 9: Portfolio
tole ics Safehold
Slide 10: Geographic Diversification by MSA
Geographic Diversification by MSA (Current Portfolio Gross Book Value: $1,016M) [simeaaie PAP ~~ r/ New York (NEW MARKET) i Salt Lake a Milwaukee Nashville Oa (NEW MARKET) Safehold 10
Slide 11: Portfolio Stratification
Portfolio Stratification (Current Portfolio Gross Book Value: $1,016M) Office & Industrial 20-60 yrs 48% We Multifamily Property Type Fixed Bumps w/ <20yrs Lease Term 26% Future CPI a Remaining!) Adjustments ay sh W.A. 82 Yr >60 yrs Hotel ee 28% Rent Escalator Percentage: T Rent Fixed Bumps w/ ype 2
Slide 12: Portfolio Metrics
Portfolio Metrics (Current Portfolio Gross Book Value: $1,016M) Total Annualized Less: Annualized . GAAP Rent Depreciation & Yield incl. % rent] - Amortization") — $78.6M $10.8M Gross Book Value as a % of CPV Credit 35.2% W.A. Lease Term Remaining Term 72 Years Annualized Add: Percentage Cash Cash B
Slide 13: Owned Residual Portfolio
Owned Residual Portfolio 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 8.7M square feet of real estate and had an estimated mar
Slide 14: Unrealized Capital Appreciation of $2.1B
Unrealized Capital Appreciation of $2.1B 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 portfolio. CBRE conducts independent appraisals of the CPV of each asset."") $2.1B Unr
Slide 15: Capital Structure
Capital Structure Safehold 15
Slide 16: Debt Overview
Debt Overview (As of March 31, 2019) | Debt Maturity Profile $350" rea $237 Undrawn Revolver $298 Drawn i $71 $79 Revolver $52 ‘iH | i 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 New Financing Closed Q2 $123 >2029 (— Y Leverage Metrics All-In ~ ee Cash Effective Book Debt $437 R (2) Book
Slide 17: Interest Rate Protection
Interest Rate Protection (As of March 31, 2019) G The Company seeks to mitigate the impact of interest rate fluctuations by entering into hedges CG The Company's interest rate protection consists of: - $316M of long-term fixed-rate debt $356M of aggregate notional value of long-term rate lock hedges
Slide 18: Appendix
Appendix Safehold 18
Slide 19: Impact of New Accounting Standards
Appendix Impact of New Accounting Standards Prior Method (Applied in Q4 ‘18} All of SAFE’s ground leases qualified as operating leases. Recorded as “Operating lease income” based Revenue on straight-line rent. Purchase price is recorded as “Real Estate” and “Lease Intangibles”. SAFE believes straigh
Slide 20: Income Statements
Income Statements Qi'19 Q1'18 Revenues: Operating lease income $20,516 $11,280 Interest income from sales-type leases 922 - Other income 382 413 Total revenues $21,820 $11,693 Costs and expenses: Interest expense $4,521 $3,255 Real estate expense 812 354 Depreciation and amortization 2,343 2,270 Gen
Slide 21: Balance Sheets
Balance Sheets March 31, 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 obligations, ne
Slide 22: Portfolio Reconciliation
Portfolio Reconciliation March 31, 2019 Net investment in leases (Sales Type Leases) Real estate, net (Operating Leases) Add: Accumulated depreciation Add: Lease intangible assets, net Add: Accumulated amortization Add: Other assets Less: Lease intangible liabilities, net Gross Book Value Forward co
Slide 23: Glossary
Appendix Glossary Aggregate Cost Basis Aggregate Gross Book Value All-In Effective Rate Annualized Cash Rent Cash Rent Cost Basis Combined Property Value (cPv) Current Portfolio Effective Yield Estimated Underlying Property NOI Represents Cost Basis plus forward commitments. Represents the Current P
Slide 24: Glossary
Appendix Glossary Gross Book Value (GBV) Gross Book Value as % of CPV Ground Rent Coverage Leverage Percentage Rent Safehold™/Safehold™ Ground Lease Total Annualized GAAP Rent Underlying Property NOI Unrealized Capital Appreciation Yield Represents the historical purchase price of an asset plus accr