Safehold : Q1 2020 Earnings Presentation

Q1 '20 EARNINGS RESULTS

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Investor Relations Contact Jason Fooks 212.930.9400

[e-mail]

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", "expect", "plan", "will", "estimate", "project", "intend", "believe", and other similar expressions that do not relate to historical matters. These forward-looking statements reflect the Company's current views about future events, and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause Company's actual results to differ significantly from those expressed in any forward-looking statement. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all).

The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the effect of the COVID-19 pandemic on our business and growth prospects; market demand for ground lease capital; the Company's ability to source new ground lease investments; the availability of funds to complete new ground lease investments; risks that the rent adjustment clauses in the Company's leases will not adequately keep up with changes in market value and inflation; risks associated with certain tenant and industry concentrations in our portfolio; conflicts of interest and other risks associated with the Company's external management structure and its relationships with iStar and other significant investors; risks associated with using debt to fund the Company's business activities (including changes in interest rates and/or credit spreads, the ability to source financing at rates below the capitalization rates of our assets, and refinancing and interest rate risks); risks that tenant rights in certain of our ground leases will limit or eliminate the Owned Residual realizations from such properties; general risks affecting the real estate industry and local real estate markets (including, without limitation, the potential inability to enter into or renew ground leases at favorable rates, including with respect to contractual rate increases or participating rent); dependence on the creditworthiness of our tenants and their financial condition and operating performance; competition from other ground lease investors and risks associated with our failure to qualify for taxation as a REIT under the Internal Revenue Code of 1986, as amended. Please refer to the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and any subsequent reports filed with the Securities and Exchange Commission (SEC) for further discussion of these and other investment considerations. The Company expressly disclaims any responsibility to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Important Note re COVID-19: Our first quarter operations occurred largely before the COVID-19 pandemic materially affected the US economy. Readers of this presentation are cautioned that our results for the first quarter may not be indicative of our results for the remainder of 2020. Similarly, our Ground Rent Coverage and UCA as of March 31, 2020 are likely to decline with respect to certain properties in future periods due to the impact of the pandemic, and any such decline may be material. Readers are urged to read our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 when it is filed with the SEC for a more fulsome discussion of our first quarter results, including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections included therein.

Note: Please refer to the Glossary at the end of this presentation for a list of defined terms and metrics.

FINANCIAL RESULTS

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Q1 '20 Highlights

Solid	Strengthening the
Growth	Balance Sheet

84%	$150m
Equity Raised
Q1 '20 Y/Y	$259m
Revenue Growth
	Long-Term
	Debt Raised(1)

Market

Outperformance

+31%

YTD

Total Shareholder

Return

(as of April 22, 2020)

(1) Includes $106m of debt raised subsequent to the end of the first quarter.

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Earnings Results

Revenue

Net Income

(Gross of NCI)

W.A. Shares

(Diluted)

Earnings per Share

(Diluted)

Q1 '20

Q1 '19

$40.2m $21.8m

$17.4m $11.1m

48.2m 30.7m

$0.36 $0.36

TTM	TTM
(Q1 '20)	(Q1 '19)
$111.7m	$59.9m
$40.0m	$19.3m
39.7m	21.3m
$1.01	$0.91

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Strengthening the Balance Sheet

$150m

New Equity Raised

3.2m shares issued at $46.88

Bolstered liquidity and ability to invest opportunistically

Strong demand - upsized public offering 44%

$259m

Long-Term Debt Raised(1)

~190 bps accretive spread

• 5.6% w.a. effective yield of collateral
• 3.7% w.a. effective interest rate(2)

2.8% w.a. cash interest rate(2)

35 years w.a. maturity

Full-term interest only

(1) Includes $106m of debt raised subsequent to the end of the first quarter.

(2) W.A. effective interest rate represents the weighted average interest rate of mortgage debt in effect over the life of the mortgage debt and excludes the effect of debt6 premium, discount and deferred financing costs. The weighted average cash interest rate is based on the first year interest rate.

Capital Structure

$1.2b

Total Equity

$338m cash and revolver availability

(as of April 22, 2020)

~$1.0b purchasing power (assuming 2x leverage)

1.4x debt / equity (0.6x debt / equity mkt cap(1))

$1.7b

Total Debt(2)

~150 bps accretive spread

• 5.5% w.a. yield of portfolio
• 4.0% w.a. effective interest rate(3)

3.1% w.a. cash interest rate(3)

31 years w.a. maturity

1. Market cap calculated as of 4/22/20 with a share price of $52.61.
2. Shown pro forma for the $106m financing closed subsequent to the end of the first quarter. Includes $0.2b of debt, which represents Safehold's pro-rata share of debt associated with non-consolidated joint ventures (equity method investments). Excludes the revolving credit facility, which had a $0.2b outstanding balance at March 31, 2020.
3. W.A. effective interest rate represents the weighted average interest rate of mortgage debt in effect over the life of the mortgage debt and excludes the effect of debt premium, discount and deferred

financing costs. The weighted average cash interest rate is based on the actual interest rates in effect at March 31, 2020.	7

PORTFOLIO UPDATE

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Portfolio Growth

(Aggregate Gross Book Value)

$77m

Q1 '20 Investment Activity

5.8% w.a. effective yield

3.7x w.a. rent coverage(1)

36% w.a. GLTV

$0.3b

$2.8b

8x

Growth Since

IPO

$1.1b

$0.6b

IPO (6/22/2017)	Q1 '18	Q1 '19	Q1' 20
Note: Please see the "Important Note re COVID-19" in the front of this presentation for a statement about metrics this quarter. Refer to Appendix for Portfolio Reconciliation.
(1) The Company uses estimates of the stabilized Property NOI if it does not receive current tenant information or if the properties are under construction/in transition. These estimates are based on leasing	9
activity at the property, third party appraisals and available market information, such as leasing activity at comparable properties in the relevant market. Please refer to the Glossary in the Appendix for more

information on these calculations.

Portfolio Breakdown

(Current Portfolio Gross Book Value: $2,705m)

Property

Type

Office	Hotel	Multifamily	Other
63%	19%	17%	1%

Seattle			Geographic Breakdown
3.4%
Portland	0.1%			Minneapolis							New Haven
		0.1%	Milwaukee				0.1%
San Francisco					0.3%	2.7%		46.3%	New York
	Salt Lake City
0.8%				1.4%		Philadelphia
		Detroit
		2.1%	Colorado
						11.8%		Washington, D.C.
Los Angeles			0.8%
6.1%	Phoenix		Nashville
				1.0%		0.7%		Raleigh-Durham
	1.7%
San Diego	1.9%				2.7%
	Dallas
			Atlanta
			Austin	1.3%
7.3%	Honolulu		3.8%				1.0%	Orlando
			San Antonio	0.7%	Tampa	0.7%
					Sarasota		0.6% 0.5%			Miami

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Portfolio Metrics

(Current Portfolio Gross Book Value: $2,705m)

Credit Metrics(1)

Lease Term

W.A. Rent	W.A. GLTV
Coverage(2)
4.1x	37%

>60 yrs

90%

Lease Term
Remaining
w/ Ext.	<20 yrs
(W.A. 89 Years)
8%
	20-60 yrs
	2%

	Total Annualized
Yield	GAAP Rent
(incl. % rent)
	$160.6m
	Annualized
Cash
Cash Base Rent
Yield	$90.9m

-

+

Less: Annualized

Depreciation &

Amortization(3)

$11.0m

Add: TTM

Percentage Rent

$4.5m

=	Net	Yield
$149.6mAmount	5.5%
		(% of GBV)
=
Annualized
Cash Yield
Cash Rent	(% of GBV)
$95.4m	3.5%

(1)	Please see the "Important Note re COVID-19" in the front of this presentation for a statement about metrics this quarter.
(2)	The Company uses estimates of the stabilized Property NOI if it does not receive current tenant information or if the properties are under construction/in transition. These estimates are based on leasing activity
at the property, third party appraisals and available market information, such as leasing activity at comparable properties in the relevant market. Please refer to the Glossary in the Appendix for more information on	11
these calculations.
(3)	Includes $1.4m of annualized amortization of right of use asset recorded as real estate expense. Includes our proportionate share of amortization from our equity method investment.

Unrealized Capital Appreciation

$5.0b

11x

UCA Growth

Since IPO

$2.1b

$1.3b

Unrealized Capital Appreciation (UCA) 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 property(1).

The Company formed a wholly-owned subsidiary called "CARET" that is structured to track and capture Unrealized Capital Appreciation. Under a shareholder- approved plan, management has earned up to 15% of UCA, subject to time-based vesting(2).

$0.4b

IPO (6/22/2017)

Q1 '18

Q1 '19

Q1 '20

Note: Please see the "Important Note re COVID-19" in the front of this presentation for a statement about metrics this quarter. Refer to the Glossary in the Appendix for a definition of Owned Residual Portfolio and Unrealized Capital Appreciation.

1. SAFE relies in part on CBRE's appraisals in calculating Owned Residual Portfolio and Unrealized Capital Appreciation. SAFE may utilize management's estimate of CPV for ground lease investments recently acquired that CBRE has not yet appraised. For forward commitments on construction deals, CPV represents the cost to build inclusive of the ground lease. Please refer to our Current Report on Form 8-K filed with the SEC on April 23, 2020 and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019, and Quarterly Report on Form 10-Q for the quarter ended

March 31, 2020 as updated from time to time in our subsequent periodic reports, filed with the SEC, for a further discussion of such tenants' rights.	12
(2) See the Company's 2019 proxy statement for additional information on the long-term incentive plan.

APPENDIX

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Appendix
Income Statements
		For the three months ended Mar 31,
2020		2019
	Revenues:
Operating lease income	$20,780	$20,516
	Interest income from sales-type leases	18,901	922
Other income	484	382
	Total revenues		$40,165	$21,820
	Costs and expenses:
Interest expense	$15,148	$4,521
	Real estate expense	798	812
Depreciation and amortization	2,348	2,343
	General and administrative	5,253	2,982
Other expense	40	25
	Total costs and expenses		$23,587	$10,683
	Income from operations before other items	$16,578	$11,137
Earnings from equity method investments	818	-
	Net income		$17,396	$11,137
Net (income) attributable to non-controlling interests	(49)	(4,518)
	Net income attributable to Safehold Inc.
	and allocable to common shareholders	$17,347	$6,619
Weighted avg. share count (basic)	48,228	18,296
	Weighted avg. share count (diluted)	48,228	30,657
Earnings per share (basic & diluted)	$0.36	$0.36

Note: Figures in thousands except for share amounts.

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Appendix
Balance Sheets
		March 31, 2020	December 31, 2019
Assets:
	Real estate:
	Real estate, at cost	$687,902	$687,902
	Less: accumulated depreciation	(17,793)	(16,286)
	Real estate, net	$670,109	$671,616
	Real estate-related intangibles, net	241,171	242,837
	Total real estate, net and real estate-related intangible assets, net	$911,280	$914,453
	Net investment in sales-type leases	1,028,980	984,598
	Ground Lease receivables, net	422,217	397,087
	Equity investments in Ground Leases	128,123	127,524
	Cash and cash equivalents	257,739	22,704
	Restricted cash	42,009	24,078
	Deferred operating lease income receivable	67,082	58,303
	Deferred expenses and other assets, net	42,197	37,814
	Total assets	$2,899,627	$2,566,561
Liabilities:
	Accounts payable, accrued expenses, and other liabilities	$68,821	$43,008
	Real estate-related Intangible liabilities, net	57,172	57,333
	Debt obligations, net	1,542,396	1,372,922
	Total liabilities	$1,668,389	$1,473,263
Equity:
	Safehold Inc. shareholders' equity:
	Common stock	$510	$478
	Additional paid-in capital	1,283,643	1,132,603
	Retained earnings (deficit)	7,236	(2,146)
	Accumulated other comprehensive loss	(61,779)	(39,123)
	Total shareholders' equity	$1,229,610	$1,091,812
Non-controlling interests	$1,628	$1,486
	Total equity	$1,231,238	$1,093,298
	Total liabilities and equity	$2,899,627	$2,566,561

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Note: $ in thousands.

Appendix

Portfolio Reconciliation

	IPO
	(6/22/17)	3/31/18	3/31/19	3/31/20
Net investment in Sales-Type Leases	-	-	$129	$1,029
Ground Lease receivables, net	-	-	-	$422
Pro-rata interest in Sales-Type Leases held as equity method
investments	-	-	-	$342
Real estate, net (Operating Leases)	$265	$451	$661	$670
Add: Accumulated depreciation	1	6	12	18
Add: Lease intangible assets, net	123	184	237	241
Add: Accumulated amortization	1	5	11	18
Add: Other assets	-	-	25	24
Less: Lease intangible liabilities, net	(51)	(58)	(58)	(57)
Less: Non-controlling interest	-	(2)	(2)	(2)
Gross Book Value	$339	$585	$1,015	$2,705
Forward Commitments	-	34	74	96
Aggregate Gross Book Value	$339	$619	$1,089	$2,800
Less: Accruals to net investment in leases and ground lease receivables	-	-	-	(15)
Aggregate Cost Basis	$339	$619	$1,089	$2,785

Note: $ in millions. Figures in the reconciliation table may not foot due to rounding.

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Appendix

Glossary

Aggregate Cost Basis

Aggregate Gross Book Value

Annualized Cash Rent

Cash Rent

Cost Basis

Combined Property Value (CPV)

Current Portfolio

Effective Yield

Gross Book Value (GBV)

Ground Lease-to-Value (GLTV)

Interest Rate

Owned Residual Portfolio

Percentage Rent

Property NOI

Rent Coverage

Safehold™/Safehold™ Ground Lease

Total Annualized GAAP Rent

Underwritten Effective Yield

Unrealized Capital

Appreciation

Represents Cost Basis plus forward commitments. For forward commitments, it represents the aggregate contractual purchase price to be paid under the commitments.

Represents the Current Portfolio plus forward commitments. For forward commitments, it represents the contractual purchase price to be paid under the commitments.

Calculated as the annualized base Cash Rent for ground leases plus Percentage Rent.

Represents ground lease income recognized excluding straight-line rent, amortization of lease intangibles, and non-cash income from sales-type leases.

Represents the historical purchase price of an asset, including capitalized acquisition costs.

The current combined value of the land, buildings and improvements relating to a commercial property, as if there was no ground lease on the land at the property. CPV is generally based on independent appraisals; however, the Company will use actual sales prices/management estimates for recently acquired and originated ground leases for which appraisals are not yet available. In relation to forward commitments, CPV represents the total cost associated with the acquisition, development, and construction of the project.

Represents the portfolio of assets owned at the date indicated, measured using Gross Book Value. Does not include forward commitments.

Effective Yield is computed similarly to effective yield on a bond, using the rate implicit in the lease based on the contractual future cash flows and a residual equal to our cost of the land.

Represents the historical purchase price of an asset plus accrued interest on sales type leases.

Calculated as the Aggregate GBV divided by CPV. Safehold uses this metric to assess risk and our seniority level in a real estate capital structure. Similar to the concept of the LTV metric used in the loan market.

The all-in stated interest rate over the term of debt.

Represents the portfolio of properties under which Safehold owns a ground lease and reflects Safehold's right to the property and tenant improvements at the end of the lease. The current value of the Owned Residual Portfolio is typically represented by the Combined Property Value or CPV of our portfolio.

Represents TTM percentage rent of ground lease assets.

Represents the net operating income of the building/Safehold's ground lease tenant prior to paying ground lease rent.

The ratio of Property NOI or estimated Property NOI to the Annualized Cash Rent due to Safehold. The Company uses estimates of the stabilized Property NOI if it does not receive current tenant information and for properties under construction or transition, in each case based on leasing activity at the property and available market information, including leasing activity at comparable properties in the relevant market.

A ground lease originated and structured by Safehold.
Current quarter revenue from operating and sales type leases recognized by GAAP annualized.
The Effective Yield of a ground lease using our underwriting assumptions. This includes estimated land value annual growth of 2%.
Calculated as the difference between CPV and the portfolio's Aggregate Cost Basis. The Company believes Unrealized Capital Appreciation
represents additional potential value to SAFE stockholders through the reversion rights embedded in standard ground leases.	17