NEW
YORK, Oct. 28, 2024 /PRNewswire/ -- Safehold
Inc. (NYSE: SAFE) reported results for the third quarter 2024.
SAFE published a presentation detailing these results which can
be found on its website, www.safeholdinc.com in the
"Investors" section.
Highlights from the earnings announcement include:
- Q3'24 revenue was $90.7
million
- Q3'24 net income attributable to common shareholders was
$19.3 million, or $26.1 million excluding the portion of the
quarter's non-cash general provision for credit losses on prior
period balances1
- Q3'24 earnings per share was $0.27, or $0.37
excluding the portion of the quarter's non-cash general provision
for credit losses on prior period balances1
- Closed $104 million of new
originations in Q3'24, including three new ground leases for
$72 million2 and one
leasehold loan for $32
million3
- Purchased joint venture partner's ownership interest in all
ground leases acquired by the venture to date for a total
commitment of $69
million4
"This was a productive quarter for Safehold, supplementing new
originations with an opportunistic joint venture buyout that is
expected to grow earnings and further diversify the portfolio,"
said Jay Sugarman, Chairman and
Chief Executive Officer. "While rate volatility remains disruptive
to real estate and transaction activity, we're seeing positive
trends in certain markets and are well-positioned to capitalize on
opportunities and best serve our customers."
The Company will host an earnings conference call reviewing this
presentation beginning at 9:00 a.m. ET on Tuesday, October 29, 2024. This conference call
will be broadcast live and can be accessed by all interested
parties through Safehold's website and by using the dial-in
information listed below:
Dial-In:
|
877.545.0523
|
International:
|
973.528.0016
|
Access Code:
|
161168
|
A replay of the call will be archived on the Company's website.
Alternatively, the replay can be accessed via dial-in from
2:00 p.m. ET on October 29, 2024 through 12:00 a.m. ET on November
12, 2024 by calling:
Replay:
|
877.481.4010
|
International:
|
919.882.2331
|
Access Code:
|
51479
|
Non-GAAP Financial Measures:
Net income attributable to Safehold Inc. common shareholders
excluding general provision for credit losses on prior period
balances, and EPS excluding general provision for credit losses on
prior period balances, are non-GAAP measures used as supplemental
performance measures to give management and investors a view of net
income and EPS more directly derived from operating activities in
the period in which they occur. It should be examined in
conjunction with net income attributable to common
shareholders as shown in our consolidated statements of operations.
EPS excluding general provision for credit losses on prior period
balances is calculated as net income attributable to Safehold Inc.
common shareholders excluding general provision for credit losses
on prior period balances, divided by the weighted average number of
common shares. These metrics should not be considered as
alternatives to net income attributable to common shareholders or
EPS, respectively (in each case determined in accordance with
generally accepted accounting principles in the United States of America ("GAAP")). These
measures may differ from similarly-titled measures used by other
companies. Reconciliations of these non-GAAP financial measures to
their most directly comparable GAAP financial measures are
presented below.
Earnings Reconciliation
(all figures in thousands except per share figures)
|
|
Net income attributable
to Safehold Inc. common shareholders
|
$19,331
|
Add: General provision
for credit losses on prior period balances1
|
6,804
|
Net income attributable
to Safehold Inc. common shareholders excluding general
provision for credit losses on prior period balances
|
$26,135
|
Weighted average number
of common shares – basic
|
71,436
|
Weighted average number
of common shares – diluted
|
71,540
|
EPS excluding general
provision for credit losses on prior period balances (basic
&
diluted)
|
$0.37
|
|
|
|
|
|
1 Includes
general provision for credit losses on prior period balances of
$6.6m on consolidated assets and $0.2m on
unconsolidated assets in Q3'24.
|
About Safehold:
Safehold Inc. (NYSE: SAFE) is revolutionizing real estate
ownership by providing a new and better way for owners to unlock
the value of the land beneath their buildings. Having created the
modern ground lease industry in 2017, Safehold continues to help
owners of high quality multifamily, office, industrial,
hospitality, student housing, life science and mixed-use properties
generate higher returns with less risk. The Company, which is taxed
as a real estate investment trust (REIT), seeks to deliver safe,
growing income and long-term capital appreciation to its
shareholders. Additional information on Safehold is available on
its website at www.safeholdinc.com.
Company Contact:
Pearse Hoffmann
Senior Vice President
Capital Markets & Investor Relations
T 212.930.9400
E investors@safeholdinc.com
1 The Company electively enhanced its general
provision for credit losses methodology during the quarter, and
applied the updated methodology to prior period balances in
accordance with GAAP. Of the quarter's $7.5
million total non-cash general provision for credit losses
expense, $6.8 million represents the
expense related to prior period balances. See the Company's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 for additional
information.
2 Gross of joint venture partner's 45% participation in
one new investment in the third quarter in the amount of
$10.7m. $72m total commitments includes $19m of forward commitments that have not yet
been funded as of 9/30/24. Such funding commitments are subject to
certain conditions. There can be no assurance that Safehold will
fully fund these transactions.
3 Gross of leasehold loan partner's 47% participation
interest. The leasehold loan did not fund during the third quarter
and there can be no assurance that Safehold will fully fund its
commitment.
4 Gross purchase price of $80
million for 9 ownership interests within the joint venture,
including forward commitments and purchase premium. The
$69 million net purchase price
excludes one investment that was originated early in the third
quarter and is included within the new originations
metrics.
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SOURCE Safehold