18 slides from Safehold Inc. New's earnings presentation, May 7, 2024
Slide 1: Q1'24 Earnings Results
Q1’24 Earnings Results
Slide 2: Q1'24 Summary
Q1’24 Summary Debt & Hedging Investment Activity1 ~$145m across 8 non-binding LOIs $300m Notes $2.0b Revolver Issued 10-year unsecured notes (6.10% coupon, 5.32% yield New 5-year unsecured revolving credit facilitya 6 5 All to maturity net of (replaced existing aggregate Markets Sponsors Multifamily
Slide 3: Portfolio Growth
Portfolio Growth Aggregate GBV (Ground Leases) Growing Multifamily Focus (Multifamily Asset Count) Estimated Unrealized Capital Appreciation 75 60 21x Estimated UCA $9.1b Growth since IPO $9.4b 19x Portfolio Growth since IPO8 20 $5.0b 1 $6.5b IPO Q1'20 Q1'22 Q1'24 $5.5b $2.8b Total 12 57 116 137 $0.
Slide 4: Earnings Results
Earnings Results GAAP Net Income and EPS increased Y/Y primarily due to $21.6m merger and Caret related costs incurred in Q1’23 EPS excluding merger & Caret related costs and non-recurring gains increased ~$0.02 Y/Y o +$8.6m (+$0.12/sh): increase in asset-related revenue from new investments and
Slide 5: Portfolio Yields
Portfolio Yields (Core Ground Lease Portfolio Gross Book Value: $6.4b on 92-Year W.A. Lease Term w/ Ext.)10 GAAP Earnings Forward Yield-to-Maturity 3.6% + GAAP Non-Cash 5.3% + Variable rent 5.7% + Upside when 5.9% + Caret valuation 7.5% Rent & pickup12 inflation Adj. >2% Annualized Annualized Econom
Slide 6: Portfolio Diversification
Portfolio Diversification Safehold primarily invests in the top 30 MSAs across the U.S., which we believe are positioned for long-term sustainable growth $6.4b Core Ground Lease Portfolio Top 10 Markets (% of GBV, Count, Rent Coverage3, GLTV2) (92-year w.a. extended lease term) 1. Manhattan (22%)a –
Slide 7: Capital Structure
Capital Structure Debt Overview Outstanding Hedges Unsecured Non-Recourse SOFR Swap (Revolver) Treasury Locks (Long-Term Debt) Notes Secured $1.5b Notional: $500m Notional: $350m $1.8b Term: 5-years (ends April 2028) Rate: ~3.67% 30-year treasury Total Rate: ~3.0% SOFR Unrealized Gain Position: ~$45
Slide 8: Appendix
Appendix 8 Safehold | The Ground Lease Company | May 2024
Slide 9: Income Statement
APPENDIX Income Statement For the three months ended March 31, 2024 2023 Revenues: Interest income from sales-type leases $63,218 $57,062 Operating lease income 21,003 20,901 Interest income - related party 2,357 - Other income 6,635 366 Total revenues $93,213 $78,329 Costs and expenses: Interest ex
Slide 10: Balance Sheet
APPENDIX Balance Sheet As of March 31, 2024 As of December 31, 2023 Assets: Net investment in sales-type leases $3,341,658 $3,255,195 Ground Lease receivables, net 1,661,063 1,622,298 Real estate: Real estate, at cost 743,423 744,337 Less: accumulated depreciation (41,907) (40,400) Real estate, net
Slide 11: Portfolio Reconciliation
APPENDIX Portfolio Reconciliation IPO (6/22/17) 3/31/20 3/31/21 3/31/22 3/31/23 3/31/24 Net investment in Sales-Type Leases - $1,029 $1,312 $2,740 $3,140 $3,342 Ground Lease receivables - 422 $661 $1,017 $1,431 $1,661 Pro-rata interest in Ground Leases held as - 342 $346 $442 $446 $451 equity method
Slide 12: Earnings Reconciliation
APPENDIX Earnings Reconciliation For the three months ended March 31, 2024 2023 Net income (loss) attributable to Safehold Inc. common shareholders $30,728 $4,682 Add: Merger & Caret related costsa - 21,597 Net income excluding merger & Caret related costs and non-recurring gains for the period $30,
Slide 13: Caret Timeline
APPENDIX Caret Timeline 2H’18: Feb’22: Nov’22: Formed a subsidiary called “Caret” designed to help recognize the value Outside investors participate in Series 3 participants from Series A round of the capital appreciation above Cost A roundb committed to Series B round under Basis. Employee performa
Slide 14: Caret Ownership
APPENDIX Caret Ownership In April 2024, the Series A Round was redeemed. It was settled with funds that were previously held in a restricted account; thus no impact to liquidity or revolver borrowings. SAFEHOLD (NYSE: SAFE) 100% ~84% GL Units Caret Units Rent Stream plus Original Cost Capital Apprec
Slide 15: 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 valuations of the CPV of our portfolio in calculating UCA
Slide 16: Glossary
APPENDIX Glossary Aggregate Cost Basis Represents Cost Basis plus unfunded commitments of the Core Ground Lease Portfolio. For unfunded commitments, it represents the aggregate future amount to be paid under the commitments. Aggregate Gross Book Value Represents the Gross Book Value plus unfunded co
Slide 17: Endnotes
APPENDIX Endnotes (1) Existing GL commitments and non-binding LOIs assume 100% ownership. Our JV partner can purchase 45% of these commitments at their discretion. There can be no assurance that Safehold will close transactions under LOI. (2) CPV used to calculate GLTV is generally based on independ
Slide 18: 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