Safehold (SAFE) Investor Presentation summary

Business model and market opportunity

• Operates as a market leader in modern ground leases, providing capital solutions to make commercial real estate ownership more cost efficient, targeting attractive risk-adjusted returns with inflation protection and capital appreciation potential.

• Focuses on bifurcating land from buildings to create efficiencies, offering low-cost, non-maturing capital to property owners and access to a historically inaccessible asset class.

• Targets top 30 U.S. MSAs, with 90% of activity in creating new ground leases for acquisitions, recapitalizations, or development, and 10% in acquiring existing ground leases.

• Addresses a ~$7 trillion U.S. institutional CRE market, with $4 trillion in 5-year CRE activity and $10 billion in Safehold-related transactions.

• Platform is the only nationally scaled, publicly traded ground lease provider, with a dedicated originations team and investment grade capital advantages.

Portfolio and financial performance

• Portfolio includes 151 assets across 41 markets and 6 property types, totaling $6.9 billion in aggregate gross book value and $9.1 billion in estimated unrealized capital appreciation (UCA).

• Diversified customer base with 102 unique sponsors and 58 unique leasehold lenders; portfolio covers ~37 million square feet.

• Disciplined underwriting with 52% ground lease-to-value (GLTV) and 3.5x rent coverage; annualized cash yield of 5.4% and inflation-adjusted yield of 6.0%.

• Office segment highlights 36 ground leases, $2.7 billion GBV, and $1.8 billion estimated UCA, with strong rent coverage and long-term, assumable, non-recourse debt.

• Since IPO in 2017, portfolio has grown from $0.3 billion to $6.9 billion, with national scale and brand equity.

Value components and capital structure

• Value derived from two components: bond-like compounding cash flows (with CPI lookbacks) and capital appreciation (Caret), which provides future ownership rights in the underlying real estate.

• Caret is a subsidiary tracking capital appreciation, with 84% ownership retained and a $2.0 billion valuation from a 2023 investment round.

• Permanent debt totals $4.8 billion with a 19-year weighted average maturity, 3.8% cash interest rate, and investment grade ratings from Moody's, Fitch, and S&P.

• 52% of permanent debt matures in 2049 or later, with 98% fixed rate; $1.2 billion in corporate liquidity and 2.0x leverage.

• In-place liabilities have significant mark-to-market value due to being locked in at below-market rates.