Safehold Inc (SAFE) Q3 2021 Earnings Call Transcript

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Safehold Inc (NYSE:SAFE)
Q3 2021 Earnings Call
Oct 21, 2021, 10:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good morning and welcome to Safehold’s Third Quarter 2021 Earnings Conference Call. [Operator Instructions]

At this time for opening remarks and introductions, I would like to turn the conference over to Jason Fooks, Senior Vice President of Investor Relations and Marketing. Please go ahead, sir.

Jason Fooks — Senior Vice President Investor Relations and Marketing

Good morning, everyone, and thank you for joining us today for Safehold’s Earnings call. On the call today we have Jay Sugarman, Chairman and Chief Executive Officer; and Marcos Alvarado, President and Chief Investment Officer.

This morning, we plan to walk through a presentation that details our third-quarter results. The presentation can be found on our website at SafeholdInc.com, and by clicking on the Investors link. There’ll be a replay of this conference call beginning at 2:30 p.m. Eastern Time today, and the dial-in for the replay is (866) 207-1041, with the confirmation code of 8590415.

Before I turn the call over to Jay, I’d like to remind everyone that statements in this earnings call which are not historical facts may be forward-looking. Our actual results may differ materially from these forward-looking statements and the risk factors that could cause these differences are detailed in our SEC reports. Safehold disclaims any intent or obligation to update these forward-looking statements except as expressly required by law.

Now with that, like to turn the call over to Chairman and CEO, Jay Sugarman. Jay?

Jay Sugarman — Chairman and Chief Executive Officer

Thanks, Jason. And appreciate everyone joining us today. Strong portfolio growth and a large increase in our estimated unrealized capital appreciation account combined to create a very strong quarter for Safehold, powered by the growing portfolio and a small accounting gain, GAAP earnings were up significantly year-over-year. Third-quarter investments together with recent closing since the end of the quarter have taken us to over $4 billion in ground leases. And our customers tell us our ability to deliver both low-cost capital and a high level of execution certainty is a potent competitive advantage. Our mission is to help building owners generate higher returns with less risk, and we’ll continue to look for ways to lower their cost of capital and provide them with the full benefits of Safehold’s modern, ground lease innovation. Our estimated unrealized capital appreciation jumped over $600 million in the quarter, continuing to add value for shareholders and highlighting the unique growth rate of our ownership asset. Our goal in the coming quarters is to unlock this value for shareholders, and the tangible quality, measurable underlying value, and demonstrated growth rate of this asset…