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Safehold (SAFE) - 2024 Q2 - Earnings Call Transcript
2024-07-30 17:00
Financial Data and Key Metrics Changes - For Q2 2024, revenue was $89.9 million, net income was $29.7 million, and earnings per share (EPS) was $0.42, an increase of $0.07 year-over-year driven by asset-related revenue growth and G&A savings [40][41] - The company reported a GLTV of 48% and rent coverage of 3.6 times at quarter end, indicating stable credit metrics [36][55] - The total portfolio was valued at $6.5 billion, with UCA estimated at $9.1 billion [36] Business Line Data and Key Metrics Changes - The company originated six multifamily ground leases totaling $98 million, with five in affordable housing and one in student housing [10] - Economic yield for new originations was reported at 7.5%, while existing commitments had a yield of 6.4% [37] - The ground lease portfolio has grown 19 times since the IPO, with a significant increase in exposure to multifamily assets from 8% to 57% [38] Market Data and Key Metrics Changes - The multifamily sector remains the primary focus, with limited opportunities in other asset types [7] - The company noted that valuations were impacted by higher cap rate assumptions and challenging office market fundamentals [8] - The top 10 markets represent approximately 70% of the portfolio, with stable GLTV and rent coverage metrics [54][55] Company Strategy and Development Direction - The company aims to capitalize on potential lower interest rates to stimulate transaction activity and enhance market engagement [6][7] - A new $2 billion unsecured revolving credit facility was established to improve financial flexibility and lower borrowing costs [12] - The company is focused on maximizing long-term value through strategic ground lease investments in well-located institutional quality assets [38][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about increasing transaction activity as market clarity improves and potential rate cuts are anticipated [49][108] - The company is positioned to leverage its liquidity to deliver value to customers and expects rate cuts to benefit both earnings and valuations [49][124] - Management emphasized the importance of maintaining a competitive edge through efficient capital structures and strong credit metrics [75][141] Other Important Information - The company has implemented an active hedging strategy, with $500 million of SOPR swaps in place, saving approximately $3 million in cash interest per quarter [35] - The G&A target for 2024 has been revised to $38 million due to recent efficiency improvements [42] - The commercial paper program was introduced as a short-term funding alternative, with potential interest savings compared to the revolving credit facility [34][62] Q&A Session Summary Question: What does the pipeline look like for the next three to six months? - Management indicated optimism about increasing transaction flow, particularly in the multifamily sector, as market conditions improve [59][80] Question: Can you comment on the impact of the commercial paper program? - The commercial paper program is viewed as a cost-saving alternative rather than additional leverage, with a full dollar-for-dollar backstop from the revolver [104] Question: How does the company decide which acquisitions go on balance sheet versus the JV? - The JV has first look at potential acquisitions, with no specific asset classes excluded, but metrics guide the decision [102] Question: What are the expectations for future origination volumes? - Management believes that the market opportunity is significant, with a target of $1 billion in annual origination as the business matures [140][141] Question: How does the company view competition in the market? - The company has not seen significant competition due to its unique structure and investment-grade ratings, which provide a competitive advantage [156]
Safehold (SAFE) Reports Q2 Earnings: What Key Metrics Have to Say
ZACKS· 2024-07-29 22:30
The reported revenue represents a surprise of +0.96% over the Zacks Consensus Estimate of $89.04 million. With the consensus EPS estimate being $0.38, the EPS surprise was +7.89%. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Operating lease income: $16.69 million compared to the $16.91 million average estimate based on five analysts. The reported number repr ...
Safehold (SAFE) - 2024 Q2 - Quarterly Results
2024-07-29 20:10
Exhibit 99.2 Q2'24 Earnings Results Q2'24 Summary Safehold Debt & Hedging Investment Activity $2.0b $750m 6 closed deals for $98m1 Revolver Commercial Paper 100% 4 3 Closed new 5-year unsecured Unsecured funding alternative revolving credit facility to current revolving credit Sponsors Multifamily Markets (replaced existing aggregate $1.85b facilities) facility with expected interest savings. $0 issued to-date (2 New) 33% 7.5% Outstanding Hedges 2.8x $500m SOFR Swap through April 2028 at -3.0% SOFR Rent Eco ...
Safehold Reports Second Quarter 2024 Results
Prnewswire· 2024-07-29 20:01
Q2'24 revenue was $89.9 million, up 5% year-over-year Q2'24 net income attributable to common shareholders was $29.7 million, up 34% year-over-year Q2'24 earnings per share was $0.42, up 20% year-over-year Closed six new ground leases for $98 million1 during the quarter, bringing the total aggregate portfolio to 143 ground leases and $6.5 billion Closed new $2.0 billion unsecured revolving credit facility, replacing previous $1.85 billion aggregate facilities and lowering facility cost Established $750 mill ...
Safehold Sets Second Quarter 2024 Earnings Release Date and Webcast
Prnewswire· 2024-07-17 12:00
The dial-in information for the live call is: Replay: 877.481.4010 International: 919.882.2331 Access Code: 50921 The Company will host an earnings conference call reviewing these results and its operations beginning at 9:00 a.m. ET on Tuesday, July 30, 2024. This conference call will be broadcast live and can be accessed by all interested parties through Safehold's website, www.safeholdinc.com, in the "Investors" section. A replay of the call will be archived on the Company's website. Alternatively, the re ...
Safehold: Two Requirements To Make It To $30
Seeking Alpha· 2024-07-15 07:46
AlexSava/iStock via Getty Images Data by YCharts Data by YCharts Q1-2024 Income Statement SAFE Q1-2024 Presentation Earnings Reconciliation We called Safehold Inc. (NYSE:SAFE) the ultimate swan dive last November. The title of that piece was indicative of the long-term performance for this REIT, which started with our initial review of it in early 2021. Last November, however, we thought the stock was ripe for a bounce and went with a hold rating. Contrary to its ticker, Safehold had been anything but safe ...
Safehold Closes Four Ground Leases for Affordable Multifamily Assets
Prnewswire· 2024-07-08 20:05
NEW YORK, July 8, 2024 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on ground leases to facilitate the ground-up development of four affordable housing communities in Northern California. The low-income tax credit developments total 781 units across four locations: three in San Jose and one in Concord, California. The projects will be built by The Pacific Companies, a prolific and highly experienced developer of affordable housing through ...
Safehold Announces $750 Million Commercial Paper Note Program
Prnewswire· 2024-06-21 20:15
NEW YORK, June 21, 2024 /PRNewswire/ -- Safehold Inc. (the "Company" or "Safehold") (NYSE: SAFE) today announced that its operating company, Safehold GL Holdings LLC (the "operating company"), has established an unsecured commercial paper note program in the United States. Under the terms of the program, the operating company may issue from time to time unsecured commercial paper notes up to a maximum aggregate amount outstanding at any one time of $750 million. The notes will be sold under customary terms ...
Safehold Declares Second Quarter 2024 Common Stock Dividend
Prnewswire· 2024-06-14 12:00
NEW YORK, June 14, 2024 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE) announced today that the Company's Board of Directors has declared common stock dividends of $0.177 per share for the second quarter of 2024. The dividend represents an annualized rate of $0.708 per share and is payable on July 15, 2024 to holders of record on June 28, 2024. About Safehold: Company Contact: Pearse Hoffmann Senior Vice President Capital Markets & Investor Relations T 212.930.9400 E [email protected] Safehold Inc. (NYSE: SAFE) ...
Safehold Closes Ground Lease for Affordable Multifamily Development in Orange County, California
Prnewswire· 2024-06-06 20:05
NEW YORK, June 6, 2024 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on a ground lease to facilitate the ground-up development of The Orion, a 166-unit senior affordable community in Orange, California. The project will be developed by USA Properties Fund, an experienced developer of multifamily projects throughout California. The OrionThe Orion "We are very excited to establish a relationship with the USAP team, and look forward to a succ ...