19 slides from Safehold Inc. New's earnings presentation, 2022
Slide 1: Q1 '22 Earnings Results
Q1 ‘22 EARNINGS RESULTS
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: Q1 '22 Highlights
Q1 ‘22 Highlights Strong Increased Capital Earnings Investments for Growth 35% $677m $309m Quarterly Y/Y New Ground Lease Capital Raised from EPS Growth Investments(1) Equity Offering 39% $1.3b $1.15b Quarterly Y/Y UCA Growth Cash & Credit Facility Revenue Growth Availability(2) Note: Please see “Un
Slide 4: Investment Activity
Investment Activity Quarterly Activity Origination Metrics $677m (1) 10 ground lease transactions Originations 9 markets (3 new markets) $519m Funded $158m Unfunded 7 new clients $532m 5.1% w.a. Inflation Adjusted Yield (2) Fundings $519m New $13m Funding • 4.8% with 0% inflation Investments Prior I
Slide 5: Portfolio Growth
Portfolio Growth Q1’22 Investments $5.5b 16x Growth (1) Since IPO $3.4b $2.8b $1.1b $0.6b $0.3b IPO Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 (6/22/2017) Note: Please see the “Important Note re COVID-19” in the front of this presentation for a statement about metrics this quarter. Pictures of properties th
Slide 6: Geographic Breakdown
Geographic Breakdown (Current Portfolio Gross Book Value $5,148m) Seattle Northeast Portland 38% Minneapolis West Milwaukee New Haven Boston - New Sacramento - New 26% Detroit New York Stamford San Francisco Central Chicago Denver Philadelphia Salt Lake City 3% Baltimore - New San Jose Washington, D
Slide 7: Earnings Results
Earnings Results Quarterly Results Y/Y Q1 ‘22 Q1 ‘21 Growth Revenue $60.4m $43.5m +39% Net Income $24.9m $16.9m +47% EPS $0.43 $0.32 +35% 7
Slide 8: Portfolio Metrics
Portfolio Metrics (Current Portfolio Gross Book Value: $5,148m) Property Type Lease Term >60 yrs Office 94% 48% Multifamily 34% Lease Term Underlying Remaining Property w/ Ext. (W.A. 92 Years) <20 yrs 4% 20-60 yrs 2% Other Hotel <1% Life Science 14% 4% Credit Metrics (1) W.A. Rent Coverage W.A. GLTV
Slide 9: Inflation Captured Cash Flows
Inflation Captured Cash Flows (Current Portfolio Gross Book Value: $5,148m) CPI Lookbacks continue periodically through the life of the lease, which can provide meaningful inflation capture that is significantly better than the long-term fixed-rate bonds we benchmark against.(1) In-Place with 0% Inf
Slide 10: Capital Structure
Capital Structure Debt Overview Capital Updates Credit Ratings Non-Recourse Secured $1,498m $475m Baa1 Closed and Funded 3.98% Moody’s Senior Unsecured Notes Total due 2052 (Stable Outlook) Unsecured Revolver $3.2b $235m ($1,115m remaining capacity) $309m BBB+ Equity Raised at Fitch Unsecured Notes
Slide 11: Caret Transaction Overview
Caret Transaction Transaction Overview As was previously announced, during the quarter, we sold and received commitments to purchase 1.37% of the total authorized Caret Units for an aggregate $24.0 million at a valuation of $1.75 billion, from a group of leading private equity, sovereign wealth and
Slide 12: Estimated Unrealized Capital Appreciation
Estimated Unrealized Capital Appreciation $9.4b (1) Total Square Feet: 29.3m 90% +$1.3b CAGR in Q1 ’22 Since IPO Office Multifamily 11.6m 13.1m $5.6b Sq. Ft. Sq. Ft. (14.9k Units) $5.0b Hotel Life Science Other $2.1b 3.7m 0.6m 0.3m Sq. Ft. Sq. Ft. Sq. Ft. $1.3b (4.9k Keys) $0.4b IPO Q1 '18 Q1 '19 Q1
Slide 13: Appendix
APPENDIX Safehold
Slide 14: Income Statements
Appendix Income Statements For the three months ended March 31, 2022 2021 Revenues: Interest income from sales-type leases $43,031 $25,974 Operating lease income 16,966 17,410 Other income 366 123 Total revenues $60,363 $43,507 Costs and expenses: Interest expense $25,321 $17,167 Real estate expense
Slide 15: Balance Sheets
Appendix Balance Sheets March 31, 2022 December 31, 2021 Assets: Net investment in sales-type leases $2,739,924 $2,412,716 Ground Lease receivables 1,017,160 796,252 Real estate: Real estate, at cost 740,971 740,971 Less: accumulated depreciation (29,850) (28,343) Real estate, net 711,121 712,628 Re
Slide 16: Portfolio Reconciliation
Appendix Portfolio Reconciliation IPO (6/22/17) 3/31/18 3/31/19 3/31/20 3/31/21 3/31/22 Net investment in Sales-Type Leases - - $129 $1,029 $1,312 $2,740 Ground Lease receivables - - - $422 $661 $1,017 Pro-rata interest in Ground Leases held as equity method investments - - - $342 $346 $442 Real est
Slide 17: 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 18: Caret Overview
Appendix Caret Overview (1) Just as a ground lease splits the land from the building, Caret generally enables us to split our portfolio of ground leases into: (1) the right to the rent stream, the original cost basis and certain other cash flows (GL Units) and (2) the right to the capital appreciati
Slide 19: 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. Represents the Current Portfolio plus unfunded commitments. For unfunded commitments, it represents the aggreg