Q2 2024 Safehold Inc Earnings Call Transcript
Key Points
- Safehold Inc (SAFE) reported solid earnings for the second quarter of 2024, driven by new originations and efficient business operations.
- The company originated six multifamily ground leases totaling $98 million, with a focus on affordable housing and student housing.
- Safehold Inc (SAFE) announced a new $2 billion unsecured revolving credit facility, enhancing credit capacity and financial flexibility.
- The company closed on a $750 million unsecured commercial paper program, which is expected to provide interest savings compared to the revolver.
- Safehold Inc (SAFE) has a robust hedging strategy in place, saving approximately $3 million of cash interest per quarter at current rates.
- New originations were limited by smaller deal sizes and allocations to a Sovereign Wealth partner under an existing joint venture.
- Valuations from CBRE for the UCA estimate were impacted by higher cap rate assumptions and tougher office market fundamentals.
- The multifamily sector remains the primary focus, with limited opportunities in other asset types.
- The company's legal team restructuring led to a reduction in G&A expenses, but it may raise concerns about the efficiency of outsourced legal services.
- The commercial paper program, while providing interest savings, does not add incremental liquidity as it has a full dollar-for-dollar revolver backstop.
Good morning, and welcome to Safehold's second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, today's conference is being recorded.
At this time, for opening remarks and introductions, I would like to turn the conference over to Pearse Hoffmann, Senior Vice President of Capital Markets and Investor Relations. Please go ahead, sir.
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; Brett Asnas, Chief Financial Officer; and Tim Doherty, Chief Investment Officer.
This morning, we plan to walk through a presentation that details our second quarter 2024 results. The presentation can be found on our website at safeholdinc.com by clicking on the Investors link. There will be a replay of this conference call beginning at 2:00 PM Eastern Time today. The dial-in for the replay is 877-481-4010 with a confirmation
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
