Safehold Inc (SAFE) 2022 Q4 法說會逐字稿

Good morning, and welcome to Safehold's Fourth Quarter and Fiscal Year 2022 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.

早上好，歡迎來到 Safehold 的第四季度和 2022 財年收益電話會議。 （操作員說明）提醒一下，今天的會議正在錄製中。現在，關於開場白和介紹，我想將會議轉交給資本市場和投資者關係高級副總裁 Pearse Hoffmann。請繼續，先生。

Good morning, everyone. Thank you for joining us today for Safehold's earnings call. On the call today, we have Jay Sugarman, Chairman and Chief Executive Officer; Marcos Alvarado, President and Chief Investment Officer; and Brett Asnas, Chief Financial Officer.

大家，早安。感謝您今天參加我們的 Safehold 財報電話會議。在今天的電話會議上，我們有董事長兼首席執行官 Jay Sugarman； Marcos Alvarado，總裁兼首席投資官；和首席財務官 Brett Asnas。

This morning, we plan to walk through a presentation that details our fourth quarter and fiscal year 2022 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 p.m. Eastern Time today. The dial-in for the replay is (877) 481-4010 with a confirmation code 47581.

今天上午，我們計劃進行一次演示，詳細介紹我們第四季度和 2022 財年的業績。該演示文稿可在我們的網站 safeholdinc.com 上單擊“投資者”鏈接找到。將從下午 2:00 開始重播此電話會議。今天東部時間。重播的撥入是 (877) 481-4010，確認碼是 47581。

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.

在我將電話轉給 Jay 之前，我想提醒大家，本次財報電話會議中的陳述並非歷史事實，可能具有前瞻性。我們的實際結果可能與這些前瞻性陳述存在重大差異，可能導致這些差異的風險因素在我們的 SEC 報告中有詳細說明。除非法律明確要求，否則 Safehold 不承擔任何更新這些前瞻性陳述的意圖或義務。

Now with that, I'd like to turn it over to Chairman and CEO, Jay Sugarman. Jay?

現在，我想把它交給董事長兼首席執行官 Jay Sugarman。傑？

Thanks, Pearse, and thanks to all of you for joining us today. With the merger vote now set for March 9, we're excited to begin the next phase of Safehold's growth and continue building our position as the leader of the modern ground lease industry. While unfavorable market conditions and the constraints of the merger process hurt our share price and investment activity in the fourth quarter, 2022 overall included many positives for our company. Strong earnings and portfolio growth, increased dialogue with customers and brokers and initial steps to highlight the value of CARET were all important milestones in the execution of our long-term strategy. With the benefit of a simpler, stronger and better safe hold post-merger, we look forward to getting back to work as markets restabilize. To delivering customers efficient capital solutions for their needs and to improving the broader market's recognition of our company's value and growth potential.

謝謝 Pearse，也感謝大家今天加入我們。現在定於 3 月 9 日進行合併投票，我們很高興開始 Safehold 下一階段的增長，並繼續鞏固我們作為現代地面租賃行業領導者的地位。雖然不利的市場條件和合併過程的限制損害了我們第四季度的股價和投資活動，但 2022 年總體上對我們公司有許多積極影響。強勁的收益和投資組合增長、與客戶和經紀人的更多對話以及突出 CARET 價值的初步步驟都是我們長期戰略執行過程中的重要里程碑。得益於合併後更簡單、更強大、更安全的持有方式，我們期待著隨著市場的重新穩定而重返工作崗位。為客戶提供滿足其需求的高效資本解決方案，並提高更廣泛的市場對我們公司價值和增長潛力的認可。

And with that, let's turn it over to Marcos and Brett to recap the quarter and the year. Marcos?

有了這個，讓我們把它交給 Marcos 和 Brett 來回顧一下這個季度和一年。馬科斯？

Thank you, Jay, and good morning, everyone. Let's begin on Slide 4. 2022 was another strong year for Safehold as we continue to scale the business. We closed 26 new ground lease investments totaling $1.4 billion. And at year-end, our unrealized capital appreciation account for the portfolio stood at an estimated $10.5 billion. We continue to have success across different property types and locations. Creating ground leases in 15 unique markets in 2022, including 4 institutional life science assets in Boston and the Bay Area and 15 multifamily assets across several markets, including New York, Los Angeles, Nashville, Denver and Miami.

謝謝杰伊，大家早上好。讓我們從幻燈片 4 開始。隨著我們繼續擴大業務規模，2022 年對 Safehold 來說又是強勁的一年。我們完成了 26 項新的土地租賃投資，總計 14 億美元。到年底，我們投資組合的未實現資本增值賬戶估計為 105 億美元。我們繼續在不同的物業類型和地點取得成功。 2022 年在 15 個獨特市場創建地面租賃，包括波士頓和灣區的 4 個機構生命科學資產，以及紐約、洛杉磯、納什維爾、丹佛和邁阿密等多個市場的 15 個多戶型資產。

Over the course of the year, as inflation, higher rates and other macro shocks played out, the broader markets experienced significant volatility across all asset classes. These headwinds and limited liquidity have caused a revaluation of assets, which in turn has led to a slowdown in overall transaction volume as buyers and sellers search for equilibrium.

在這一年裡，隨著通貨膨脹、利率上升和其他宏觀衝擊的出現，大盤所有資產類別都經歷了大幅波動。這些逆風和有限的流動性導致資產重估，隨著買賣雙方尋求平衡，這反過來又導致整體交易量放緩。

As we mentioned last earnings call, we certainly are not immune to the slowdown as our customers are assessing their capital solutions in a repriced market while going through their own value discovery. We remain cautiously optimistic but expect this uncertainty around deal volume to persist here in the near term. That said, we are well positioned and ready for the inevitable market rebound and have ample liquidity to fund new ground lease transactions as those opportunities arise.

正如我們在上次財報電話會議上提到的那樣，我們當然不能免受經濟放緩的影響，因為我們的客戶正在重新定價的市場中評估他們的資本解決方案，同時經歷他們自己的價值發現。我們仍然保持謹慎樂觀，但預計這種圍繞交易量的不確定性將在短期內持續存在。也就是說，我們已做好準備迎接不可避免的市場反彈，並有充足的流動性在這些機會出現時為新的地面租賃交易提供資金。

During 2022, we raised $934 million of new capital, consisting of $625 million of long-term unsecured debt and $309 million of equity. Notably, these debt raises were our first 30-year issuances in the unsecured market. Being able to enter the 30-year unsecured market with accretive financing only 1 year after receiving investment-grade credit ratings, underscores the high-quality credit profile of our business. We are very encouraged by the overall credit momentum, which is evidenced by the 2 positive outlook changes in the last 6 months, putting us 1 step closer to that single-A rating we're striving for.

2022 年期間，我們籌集了 9.34 億美元的新資本，其中包括 6.25 億美元的長期無擔保債務和 3.09 億美元的股權。值得注意的是，這些債務融資是我們在無擔保市場發行的首批 30 年期債券。在獲得投資級信用評級後僅一年就能夠進入 30 年無擔保市場並獲得增值融資，突顯了我們業務的高質量信用狀況。我們對整體信貸勢頭感到非常鼓舞，過去 6 個月中 2 次積極的前景變化證明了這一點，使我們離我們正在爭取的單一 A 評級更近了一步。

As we previously announced, the forthcoming merger with iStar is expected to have tangible benefits that set up Safehold for long-term success. Internalizing brings management and all of Safehold's accumulated IP in-house. And from an earnings perspective, this significantly lowers the long-term cost structure of the business relative to the current externally managed architecture.

正如我們之前宣布的那樣，即將與 iStar 的合併預計將帶來切實的好處，使 Safehold 取得長期成功。內部化將管理層和 Safehold 積累的所有知識產權帶入內部。從收益的角度來看，相對於當前的外部管理架構，這顯著降低了企業的長期成本結構。

Finally, on the investor front. This is expected to enhance our access to new sources of capital in both the debt and equity markets, more than doubling our free float and diversifying our shareholder base.

最後，在投資者方面。預計這將增加我們在債務和股票市場上獲得新資本來源的機會，使我們的自由流通量增加一倍以上，並使我們的股東基礎多樣化。

Continuing on, let me discuss our investment activity on Slide 5. During the quarter, we originated 3 new ground leases totaling $79 million. Among these, we funded $27 million during the quarter and expect to fund the $52 million of the unfunded balance in the coming quarters. Additionally, we funded $41 million during the quarter associated with prior ground lease commitments. These 3 new originations were all multifamily properties and span 3 different markets. As we mentioned last quarter, we've increased our pricing. The new ground leases we originated during the quarter generated a weighted average yield of 6.9% assuming 0% inflation which is over 100 basis points higher than the 5.8% yield for the investments we made in the third quarter.

繼續，讓我在幻燈片 5 上討論我們的投資活動。在本季度，我們發起了 3 項新的地面租賃，總計 7900 萬美元。其中，我們在本季度提供了 2700 萬美元的資金，並預計在未來幾個季度為未提供資金的餘額中的 5200 萬美元提供資金。此外，我們在本季度為先前的土地租賃承諾提供了 4100 萬美元的資金。這 3 個新的起源都是多戶財產，跨越 3 個不同的市場。正如我們上個季度提到的，我們提高了定價。假設通貨膨脹率為 0%，我們在本季度發起的新地面租賃產生的加權平均收益率為 6.9%，比我們在第三季度進行的投資的 5.8% 收益率高出 100 個基點以上。

The credit metrics associated with these deals are in line with our targets. As rates and spreads move, we'll continue to examine pricing dynamics that work both for our customers and for our business. It is our belief that creating ground leases at these current levels will lead to significant long-term value creation for the company.

與這些交易相關的信用指標符合我們的目標。隨著利率和利差的變化，我們將繼續研究對我們的客戶和我們的業務都適用的定價動態。我們相信，以目前的水平創造地面租賃將為公司帶來重要的長期價值創造。

Slide 6 provides a snapshot of our portfolio growth during the quarter. At the end of the quarter, our aggregate portfolio stood at approximately $6.2 billion, representing 18x growth since our IPO over 5.5 years ago. We remain focused on targeting high-quality assets. We were pleased to close transactions in 3 unique markets during the quarter. And with that, let me turn it over to Brett to go through the financials. Brett?

幻燈片 6 簡要介紹了本季度我們的投資組合增長情況。本季度末，我們的投資組合總額約為 62 億美元，自 5.5 年前首次公開募股以來增長了 18 倍。我們仍然專注於瞄準優質資產。我們很高興在本季度完成了 3 個獨特市場的交易。有了這個，讓我把它交給布雷特來完成財務。布雷特？

Thank you, Marcos, and good morning, everyone. Continuing on Slide 7, let me detail our quarterly earnings results. Revenues were $73.4 million for the fourth quarter. Net income was $21.8 million and earnings per share was $0.35. For the year, this brought revenue to $270.3 million, up 45% and net income to $135.4 million, up 85% and earnings to $2.21 per share, up 64%. However, it should be noted that the fourth quarter included certain onetime costs related to the merger and CARET. Excluding those items, net income for the fourth quarter would have been $25 million, an increase of 17% versus the same period last year, and earnings per share would have been $0.40, 7% above the $0.38 we earned in the prior year period.

謝謝馬科斯，大家早上好。繼續幻燈片 7，讓我詳細介紹我們的季度收益結果。第四季度的收入為 7340 萬美元。淨收入為 2180 萬美元，每股收益為 0.35 美元。全年，這使收入達到 2.703 億美元，增長 45%，淨收入達到 1.354 億美元，增長 85%，每股收益達到 2.21 美元，增長 64%。然而，應該指出的是，第四季度包括與合併和 CARET 相關的某些一次性成本。排除這些項目，第四季度的淨收入為 2500 萬美元，比去年同期增長 17%，每股收益為 0.40 美元，比去年同期的 0.38 美元高出 7%。

For the year, net income, excluding onetime items, was $98.5 million, up 38% and earnings was $1.61 per share, up 22%. On Slide 8, we detail our portfolios yield under various inflation scenarios. As we previously discussed, the market largely values our cash flows relative to long-term high-grade bonds. Particularly throughout the past year, we've seen a high correlation between our stock price and the yields on these bonds. As discount rates moved higher, there's been a corresponding decrease in the value of our contractual cash flows and consequently in our stock price. Conversely, as rates have found their footing a bit more this year, we have seen an uptick in our stock price.

全年，不包括一次性項目的淨收入為 9850 萬美元，增長 38%，每股收益為 1.61 美元，增長 22%。在幻燈片 8 中，我們詳細介紹了各種通脹情景下的投資組合收益率。正如我們之前所討論的，市場在很大程度上評估了我們相對於長期高等級債券的現金流量。特別是在過去一年中，我們發現我們的股票價格與這些債券的收益率之間存在高度相關性。隨著貼現率走高，我們的合同現金流量價值相應下降，因此我們的股價也相應下降。相反，隨著今年利率的站穩腳跟，我們的股價出現了上漲。

However, our cash flows are not fixed like these comparable long-term bonds, 95% of our portfolio has some form of inflation protection built in. The current portfolio generates a cash yield of 3.4% and an annualized yield of 5.1% which presumes a 0% inflationary environment for the duration of our ground leases. If you take into account the latest long-term inflation expectations of 2.24%, our inflation-based rent increases will drive the portfolio to yield 5.7%. If inflation steps back down to 2.0%, our portfolio will yield 5.6%. And if it moves up to 3.0%, our portfolio will yield 6.2%. This additional yield is consequential when compounded over the ultra-long duration of our ground leases.

然而，我們的現金流不像這些可比較的長期債券那樣固定，我們 95% 的投資組合內置了某種形式的通脹保護。目前的投資組合產生 3.4% 的現金收益率和 5.1% 的年化收益率，假設在我們的地面租賃期間，通脹環境為 0%。如果考慮到最新的 2.24% 的長期通脹預期，我們基於通脹的租金上漲將推動投資組合的收益率達到 5.7%。如果通脹回落至 2.0%，我們的投資組合收益率將達到 5.6%。如果它上升到 3.0%，我們的投資組合的收益率將達到 6.2%。當我們的地面租賃的超長期限複合時，這種額外的收益是必然的。

Additional portfolio metrics can be seen on Slide 9. At the end of the fourth quarter, our portfolio's weighted average ground lease to value was 40% and weighted average rent coverage was 3.9x. By property type, our portfolio consists of 45% office, 36% multifamily, 12% hotel, 4% life science and 3% mixed-use and other. Our weighted average extended lease term is 93 years.

在幻燈片 9 上可以看到其他投資組合指標。在第四季度末，我們投資組合的加權平均地面租賃價值率為 40%，加權平均租金覆蓋率為 3.9 倍。按物業類型劃分，我們的投資組合包括 45% 的辦公室、36% 的多戶住宅、12% 的酒店、4% 的生命科學和 3% 的混合用途和其他。我們的加權平均延長租期為 93 年。

Moving to Slide 10. We show a geographic breakdown of our portfolio as we continue to expand our footprint in the nation's top markets. New markets in 2022 included Boston, Baltimore and Sacramento, which combined for approximately 8% of the total portfolio at year-end.

轉到幻燈片 10。隨著我們繼續擴大在美國頂級市場的足跡，我們展示了我們投資組合的地理細分。 2022 年的新市場包括波士頓、巴爾的摩和薩克拉門托，這些市場在年底合計約佔總投資組合的 8%。

Slide 11, provides an overview on our capital structure. Subsequent to quarter end, Safehold closed an additional $500 million unsecured revolving credit facility, increasing the company's total unsecured credit lines to $1.85 billion. These combined credit lines provide significant operational and financial flexibility while strengthening our liquidity position at a time of market uncertainty. Additionally, these capital commitments demonstrate both the strength of our banking relationships and credit profile, positioning us well to fund new originations as opportunities present themselves.

幻燈片 11 概述了我們的資本結構。季度末後，Safehold 關閉了額外的 5 億美元無擔保循環信貸額度，使公司的無擔保信貸額度總額增加到 18.5 億美元。這些合併的信貸額度提供了顯著的運營和財務靈活性，同時在市場不確定的時候加強了我們的流動性頭寸。此外，這些資本承諾證明了我們銀行關係和信用狀況的實力，使我們能夠在機會出現時為新的起源提供資金。

At the end of the fourth quarter, we had $3.8 billion of debt comprised of approximately $1.5 billion of nonrecourse secured debt, $1.4 billion of unsecured notes and $272 million of our pro rata share of debt on ground leases, which we own with joint venture partners. Our weighted average debt maturity is 24 years. In addition, we had $690 million drawn on our unsecured revolver. Combined with cash on hand and including the additional $500 million unsecured revolving credit facility closed post quarter end, we had approximately $1.2 billion of available liquidity. We are levered 1.8x on a total debt-to-book equity basis. The effective interest rate booked on our nonrevolver debt is 3.7%, which is a 138 basis point spread to the 5.1% annualized yield on our portfolio. The portfolio's annualized cash yield is 3.4%, a 17 basis point spread to our 3.2% cash interest rate.

截至第四季度末，我們有 38 億美元的債務，其中包括約 15 億美元的無追索權擔保債務、14 億美元的無擔保票據和 2.72 億美元的按比例份額的地面租賃債務，我們與合資夥伴擁有這些債務.我們的加權平均債務期限為 24 年。此外，我們從無擔保的左輪手槍中提取了 6.9 億美元。加上手頭現金，包括季度末關閉的額外 5 億美元無擔保循環信貸額度，我們擁有大約 12 億美元的可用流動資金。我們在總債務與賬面權益基礎上的槓桿率為 1.8 倍。我們非循環債務的實際利率為 3.7%，與我們投資組合 5.1% 的年化收益率相差 138 個基點。該投資組合的年化現金收益率為 3.4%，與我們 3.2% 的現金利率相差 17 個基點。

On Slide 12, we provide an update on UCA. As of year-end, the estimated value of all of the unrealized capital appreciation sitting above our land increased by $16 million to approximately $10.5 billion, a 78% CAGR since IPO. In total, the UCA portfolio is comprised of approximately 33 million square feet of institutional quality commercial real estate. Consisting of 14.9 million square feet of multifamily, 13.2 million square feet of office, 3.8 million square feet of hotels, 700,000 square feet of life science and 700,000 square feet of mixed-use and other property types.

在幻燈片 12 上，我們提供了 UCA 的更新。截至年底，我們土地上所有未實現的資本增值的估計價值增加了 1600 萬美元，達到約 105 億美元，自 IPO 以來複合年增長率為 78%。 UCA 的投資組合總共包括約 3300 萬平方英尺的機構優質商業地產。包括 1490 萬平方英尺的多戶住宅、1320 萬平方英尺的辦公室、380 萬平方英尺的酒店、700,000 平方英尺的生命科學和 700,000 平方英尺的混合用途和其他物業類型。

And with that, let me turn it back to Jay to walk through Slide 13, which provides an update on the progress we've made with CARET in 2022.

說到這裡，讓我把它轉回 Jay 來瀏覽幻燈片 13，它提供了我們在 2022 年使用 CARET 取得的進展的最新情況。

Thanks, Brett. We believe CARET is a powerful asset and an asset that remains misunderstood and misvalued in our stock price. Slide 13 highlights the steps taken over the last year to push CARET forward and improve its value recognition for the enterprise. As a reminder, CARET is intended to crystallize the value of the portfolio of future ownership rights that Safehold controls. While ownership occurs in the future, today's underlying values can be estimated on a regular basis and used to demonstrate the growing scale and breadth of the portfolio.

謝謝，布雷特。我們認為 CARET 是一種強大的資產，也是一種在我們的股價中仍然被誤解和錯誤估價的資產。幻燈片 13 重點介紹了去年為推動 CARET 前進並提高其對企業的價值認可度而採取的步驟。提醒一下，CARET 旨在具體化 Safehold 控制的未來所有權組合的價值。雖然所有權發生在未來，但可以定期估算今天的潛在價值，並用於證明投資組合不斷擴大的規模和廣度。

Caret is integral to our modern ground lease model and a tremendous differentiator for Safehold. And with Safehold being CARET's largest owner, Safehold shareholders have the most to gain by seeing CARET's value reflected in the stock. As a result, we're pleased to have offered 2 investment rounds in CARET in 2022. The first in January to a group that included sophisticated family offices, crop tech funds, sovereign wealth funds and certain high net worth investors who committed to invest $24 million at a $1.75 billion CARET enterprise value. Those investors received a redemption option for their money back if certain liquidity conditions weren't met.

Caret 是我們現代地面租賃模型不可或缺的組成部分，也是 Safehold 的巨大差異化因素。由於 Safehold 是 CARET 的最大所有者，Safehold 股東通過看到 CARET 的價值反映在股票中而獲益最多。因此，我們很高興在 2022 年對 CARET 進行了兩輪投資。第一輪是在 1 月份，投資對象包括成熟的家族辦公室、作物科技基金、主權財富基金和某些承諾投資 24 美元的高淨值投資者億美元，CARET 企業價值為 17.5 億美元。如果不滿足某些流動性條件，這些投資者將獲得贖回權以收回他們的資金。

The second round will also raise $24 million, was set at a $2 billion enterprise valuation, and will close at the time of the merger. MSD Partners led this round with a $20 million commitment and several of the first round participants will also invest in this round alongside MSD. This round does not include a redemption right. In connection with the merger and MSD negotiations, there were certain changes to the CARET documents proposed which we believe enhance the alignment between Safe and CARET, clearly separate bond economics and capital appreciation economics in the portfolio and should help make the value of CARET clear for Safehold shareholders.

第二輪融資也將籌集 2400 萬美元，企業估值定為 20 億美元，並將在合併時結束。 MSD Partners 以 2000 萬美元的承諾領投了這一輪，第一輪的幾家參與者也將與 MSD 一起投資這一輪。本輪不包括贖回權。關於合併和 MSD 談判，對提議的 CARET 文件進行了某些修改，我們認為這增強了 Safe 和 CARET 之間的一致性，明確區分了投資組合中的債券經濟學和資本增值經濟學，並且應該有助於明確 CARET 的價值安全股東。

Having CARET's value reflected in the stock remains a priority, and we are optimistic that 2023 could be a turning point in the investment community's perception and appreciation of CARET, and we will continue to underscore its value in our many upcoming discussions with investors.

讓 CARET 的價值反映在股票中仍然是當務之急，我們樂觀地認為 2023 年可能成為投資界對 CARET 的看法和欣賞的轉折點，我們將在即將與投資者進行的許多討論中繼續強調它的價值。

So with that, operator, let's go ahead and open it up for questions.

因此，操作員，讓我們繼續並打開它來提問。

Thank you. (Operator Instructions) Your first question for today is coming from Stephen Laws with Raymond James.

謝謝。 （操作員說明）您今天的第一個問題來自 Stephen Laws 和 Raymond James。

Jay, I want to follow up. I'll start with the CARET, which you ended with. Can you talk about the pursuit of a listing there that needs to take place over the next 12 months is laid out under the terms in that first investment and kind of what are the different options that you're looking at? And kind of what's the timing of how that should play out over the course of this year?

傑伊，我想跟進。我將從 CARET 開始，您以它結尾。你能談談在未來 12 個月內需要在那裡進行的上市是根據第一筆投資的條款規定的嗎？你正在考慮的不同選擇是什麼？在今年的過程中應該如何發揮作用的時間是什麼時候？

Stephen, yes. So first things first, we want to get this merger behind us, turn the rockets back on the investment side. We think the CARET story just continues to gain interest. And with this potential closing of this next round with the kind of names that are involved with it. We think it's a very powerful story, but we've got more work to do to spread that story before we consider something like a listing. But certainly, our view is the value is demonstrable both privately and publicly. And so that remains part of our longer-term plans.

斯蒂芬，是的。所以首先要做的是，我們希望將這次合併拋在腦後，讓火箭重新回到投資方面。我們認為 CARET 的故事只會繼續引起人們的興趣。下一輪可能會結束，其中涉及的名稱也可能會結束。我們認為這是一個非常有影響力的故事，但在我們考慮像上市這樣的事情之前，我們還有更多的工作要做來傳播這個故事。但可以肯定的是，我們認為價值在私下和公開場合都是可以證明的。因此，這仍然是我們長期計劃的一部分。

Marcos, you talked about low volumes likely near term given some volatility other things, which in a price discovery in the market. what are the 1 or 2 things you're kind of looking for to kind of turn that back on, on the origination side, especially given the available liquidity you currently have?

Marcos，你談到了短期內可能出現的低成交量，因為其他一些因素存在波動性，這是市場的價格發現。在發起方面，您正在尋找什麼 1 或 2 種東西來重新打開它，特別是考慮到您目前擁有的可用流動性？

Stephen, so I would characterize Q4 as kind of a liquidity desert. It was pretty dry out there across the board. And unless you absolutely had to do something. You didn't make a capital decision. The thing for us that we look at is kind of internal pipeline, and it seems to have picked up as we sort of turned over into the new year. While liquidity is still scarce across the board, there are certain asset classes like multifamily that have started to reprice. The agencies are still providing capital. Our team was out at the housing conference in Las Vegas a couple of weeks ago and the amount of transaction and engagement that they had with customers out there gives me some optimism for the second half of this year that we'll start to see some transaction volume.

斯蒂芬，所以我將第四季度描述為流動性沙漠。那裡很乾燥。除非你絕對必須做某事。你沒有做出重大決定。對我們來說，我們看到的是一種內部管道，而且隨著我們進入新的一年，它似乎已經回升。儘管整體流動性仍然不足，但某些資產類別（例如多戶住宅）已開始重新定價。這些機構仍在提供資金。幾週前，我們的團隊參加了在拉斯維加斯舉行的住房會議，他們與客戶的交易量和參與度讓我對今年下半年感到樂觀，我們將開始看到一些交易體積。

Great. Appreciate the color. And lastly, Brett, can you give us an idea of how -- how much more expenses are left that are merger-related that will be taken in the first quarter between now and close, what's left to expense?

偉大的。欣賞顏色。最後，布雷特，你能告訴我們如何 - 從現在到結束的第一季度，與合併相關的費用還有多少，剩下的費用是多少？

Sure. Absolutely, Stephen. As far as merger costs for last year, we took a shade under $8 million, and we would expect that the remaining merger costs will be approximately $6 million. And most of that will go through the P&L, obviously, when the merger closes. So dependent on the time line that we have discussed, those should flow through the P&L at the merger closing timing.

當然。當然，斯蒂芬。至於去年的合併成本，我們略低於 800 萬美元，我們預計剩餘的合併成本約為 600 萬美元。顯然，當合併結束時，其中大部分將通過損益表。因此，根據我們討論的時間線，這些應該在合併結束時通過損益表流動。

Your next question for today is coming from Matthew Howlett at B. Riley.

您今天的下一個問題來自 B. Riley 的 Matthew Howlett。

First, the book does go through, just curious how long you think it will take to close this transaction?

首先，這本書確實通過了，只是好奇你認為完成這筆交易需要多長時間？

Matt, yes, I think the goal is to close as expeditiously as possible. It would be great to close at the end of a quarter that just makes everything easier. So that would be our initial target. Obviously, we don't control all the pieces of the puzzle, but we do feel pretty good that once the vote is done, we will push everything as fast as we can and hopefully be able to look at that end of a quarter as a target date.

馬特，是的，我認為目標是盡快關閉。最好在季度末關閉，這會讓一切變得更容易。所以這將是我們的初始目標。顯然，我們無法控制拼圖的所有部分，但我們確實感覺很好，一旦投票完成，我們將盡快推動一切，並希望能夠將季度末視為目標日期。

Okay. End of first quarter, just to be clear, because I know there's some work that Safe's Star has to do on its end to liquidate some assets. And I know Star's earnings are coming up here, but just you feel good that the pieces that you can control, you can do it and close very soon after the vote if it goes through.

好的。第一季度末，只是為了清楚，因為我知道 Safe's Star 必須做一些工作來清算一些資產。而且我知道 Star 的收入正在上升，但只要你感覺很好，你可以控制的部分，你可以做到，如果投票通過，很快就會結束。

You got it.

你說對了。

Great. Great to hear and looking forward to that. Jay, just a lot of talk is on the office sector. Obviously, we get that a lot. You look at your portfolio, the trophy office building, I was just curious, if you look at long term, do you feel like -- how do you feel about the office, first, I'd love to hear your view. Second, do you feel that they're going to have to be converted at some point? Just talk long term about the office sector in your portfolio.

偉大的。很高興聽到並期待著。傑伊，很多人都在談論辦公室領域。顯然，我們得到了很多。你看看你的投資組合，獎杯辦公樓，我只是好奇，如果你從長遠來看，你覺得 - 你對辦公室感覺如何，首先，我很想听聽你的看法。第二，你覺得他們在某個時候必須要皈依嗎？就長期談談您投資組合中的辦公部門。

I'm glad you said long term, Matt, because I know there's a lot of focus on what's going on near term. Look, real estate in urban markets is always about creative destruction, how we can find highest and best use, well-located land over long periods of time has been the beneficiary of that creative destruction. So I do think there's going to be some challenges, but as more and more space comes off-line, it tends to tighten these markets up. And so I think there'll be an equilibrium out there. We're clearly not at it today. Supply/demand feels out of whack. And so that's going to be a painful transition.

我很高興你說的是長期，馬特，因為我知道人們非常關注近期發生的事情。看，城市市場的房地產總是與創造性破壞有關，我們如何在很長一段時間內找到最高和最佳用途、位置優越的土地一直是這種創造性破壞的受益者。所以我確實認為會有一些挑戰，但隨著越來越多的空間下線，它往往會收緊這些市場。所以我認為那裡會有一個平衡。我們今天顯然不是這樣。供應/需求感覺不正常。所以這將是一個痛苦的過渡。

Again, when you're sitting on top of major subway and transportation, nexus in major cities, we feel pretty good about that long term. We do think leadership in these cities is important to take the steps now to really reinvent themselves. We are believers that these centers of culture and finance and technology and education are and will remain places people want to live and be. So office is going to have to adapt, some other asset classes are going to have to adapt.

再一次，當你坐在主要城市的主要地鐵和交通樞紐上時，我們對這個長期感覺很好。我們確實認為，這些城市的領導層對於現在採取措施真正重塑自我非常重要。我們相信，這些文化、金融、技術和教育中心現在是並將繼續是人們想要生活和成為的地方。所以辦公室將不得不適應，其他一些資產類別也將不得不適應。

But when you say long term, and again, we spent a lot of time researching how cities grow and how values change. We like the locations we're in, and we think those cities are going to be the long-term winners. So we'll have to ride out whatever transition takes place and certainly, office is going through that as we speak. But whether that's readaptation of specific buildings or whether it's just a lot of supply comes out of the market, we've seen it happen many times in our careers, and this will be another period where the real estate market will have to find that highest and best use. Fortunately, we don't have to be the ones to do that. We got a very attractive seat to watch it happen.

但是當你說長期的時候，我們又花了很多時間研究城市如何發展以及價值如何變化。我們喜歡我們所處的位置，我們認為這些城市將成為長期贏家。因此，無論發生什麼過渡，我們都必須安然度過，當然，正如我們所說，辦公室正在經歷這一過程。但無論是對特定建築的重新改造，還是只是市場上出現大量供應，我們在職業生涯中已經多次看到這種情況發生，這將是房地產市場必須找到最高點的另一個時期和最佳使用。幸運的是，我們不必成為那樣做的人。我們有一個非常有吸引力的座位來觀看它的發生。

Your next question for today is coming from Rich Anderson at SMBC.

您今天的下一個問題來自 SMBC 的 Rich Anderson。

So it was said that I think Marcos said investment internal pipeline has picked up. One thing, we've seen some life in your stock this year as inflation numbers have trended down. I think there's kind of an anticipation trade there going on at least in the stock market. Would you extrapolate that to the conversations you're having with potential customers as well. Is that a part of it that they're sort of seeing the light at the end of the tunnel from an inflationary point of view and could start to get more comfortable with engaging you on a ground lease? Is that the mentality that's out there?

所以有人說我認為馬科斯說投資內部管道已經回升。一件事，隨著通貨膨脹數字趨於下降，我們今年看到了您的股票的一些生命。我認為至少在股票市場上存在某種預期交易。您是否也將其推斷到您與潛在客戶的對話中。從通貨膨脹的角度來看，他們是否在某種程度上看到了隧道盡頭的曙光，並且可能開始更願意與您簽訂地面租賃合同？那是那裡的心態嗎？

I think it goes asset class by asset class and customer by customer. So I think it's the sort of psychology of where you are in the arc of repricing. So I'll take one out of the spectrum, which is multifamily. There's -- as I mentioned before, there's liquidity, both fee and leasehold liquidity. We're actively looking at transactions. That market seems to have repriced for sellers who are willing to sell in that market, and there seems to be decent demand on the buy side. So I expect some activity on those assets. And then obviously, as Jay sort of alluded to on the other end of the spectrum, you have office where there's limited to no liquidity. And I think you're going to see a fair amount of distress up at the equity level with assets being handed back to lenders. And that process is very early in its cycle.

我認為它按資產類別和客戶按資產類別劃分。所以我認為這是你在重新定價弧線中所處位置的一種心理。所以我會從這個範圍中選出一個，那就是多戶家庭。正如我之前提到的，有流動性，包括費用和租賃流動性。我們正在積極尋找交易。該市場似乎已經為願意在該市場上出售的賣家重新定價，並且買方似乎有不錯的需求。所以我預計這些資產會有一些活動。然後很明顯，正如傑伊在頻譜的另一端提到的那樣，你的辦公室流動性有限甚至沒有。而且我認為隨著資產被返還給貸方，你會在股權層面看到相當多的困境。而且該過程處於其周期的早期。

In one of the pages, I think it was Page 5 of your slide deck. You have a footnote there discussing your protection against inflation and it mentioned fair market resets is one inflation protection mechanism. I know when you're buying existing ground leases, you are making adjustments as you go and eliminate some of those vestiges of past ground lease in those that you're purchasing. But are you more inclined to hold on to fair market resets now with this inflationary market still intact? Or are you still going down the road of eliminating a lot of those situations and taking a win-win for you?

在其中一頁中，我認為它是您幻燈片的第 5 頁。你在那裡有一個腳註討論你對通貨膨脹的保護，它提到公平市場重置是一種通貨膨脹保護機制。我知道當你購買現有的土地租約時，你會在進行過程中進行調整，並消除你所購買的那些過去土地租約的一些痕跡。但是，在這個通貨膨脹的市場仍然完好無損的情況下，您現在是否更傾向於堅持公平的市場重置？還是您仍在努力消除很多此類情況並為您實現雙贏？

So I would say we we'll continue to be opportunistic when existing leases come to market that typically contain those fair market value or percentage rent provisions that you're referring to. As I think about the last 5 years and the transition and effort to sort of reset and redefine an entire marketplace, part of that is getting rid of that ambiguity. I think we've proven out leasehold liquidity, financing liquidity, sales and liquidity and part of that is the design of this new moderate ground lease. So I think we would be taking a step back if we started to reintroduce those sorts of terms to our customers. So our current form of ground lease reflects the same form that we've been using economically for the last few years.

所以我想說，當現有租約進入市場時，我們將繼續投機取巧，這些租約通常包含您所指的那些公平市場價值或百分比租金條款。當我思考過去 5 年以及為重新定義和重新定義整個市場而進行的轉型和努力時，其中一部分就是消除這種模糊性。我認為我們已經證明了租賃流動性、融資流動性、銷售和流動性，其中一部分是這種新的適度地面租賃的設計。所以我認為，如果我們開始向我們的客戶重新引入這些類型的條款，我們就會退後一步。因此，我們目前的土地租賃形式反映了過去幾年我們一直在經濟上使用的相同形式。

Okay. Fair enough. And then last for me, on the CARET page, you talk about revesting 25% in terms of senior management. What are the -- besides just staying employed by Safehold, are there other vesting conditions that would get you to that? I'm just curious if there's more to it than just what it [imply].

好的。很公平。最後對我來說，在 CARET 頁面上，你談到了在高級管理層方面重新授予 25% 的股份。什麼是 - 除了繼續受僱於 Safehold 之外，還有其他歸屬條件可以讓你做到這一點嗎？我只是很好奇它是否不僅僅是它 [暗示] 的內容。

Yes, Rich, this is really just a retention tool to make sure the team stays together over the next 2 years while we really ramp up the CARET side of the story. So really nothing more than a time vest . On CARET's that had already been vested, but we wanted to show to the market and senior management committed to revest on those to show how committed we are.

是的，Rich，這真的只是一個保留工具，以確保團隊在未來 2 年內保持在一起，同時我們真正加強故事的 CARET 方面。所以真的無非是一件時間馬甲。在已經歸屬的 CARET 上，但我們想向市場和高級管理層展示承諾對這些承諾的回報，以表明我們的承諾。

So it's another 2 years.

所以又是2年。

Yes.

是的。

Your next question for today is coming from Harsh Hemnani at Green Street.

您今天的下一個問題來自 Green Street 的 Harsh Hemnani。

So given the recent pullback in treasury yields. I'm wondering if you are confident in your ability to preserve the high yield you were able to originate at in the fourth quarter. You mentioned the investment pipeline for the future is looking better, it's improving. But perhaps the deals that you closed in the back half of this year, how confident are you in being able to originate at similar yields?

因此，鑑於近期國債收益率回落。我想知道您是否有信心保持第四季度的高收益。你提到未來的投資渠道看起來更好，正在改善。但也許你在今年下半年完成的交易，你對能夠以類似的收益率發起的信心如何？

Harsh, so I'm going to make a just a big macro call on our business. I think our belief here is that if we're creating these assets north of a 6% ROA, we will be rewarded. I think the balancing act is obviously managing our cost of capital, both from a debt perspective and an equity perspective to make these transactions accretive. So I would say it's a balancing act. I think those kind of almost 7% yields. I wish I could tell you they were flowing in, but I don't expect those to continue. But I do think kind of low to mid-6s in this sort of rate environment feels achievable for our business. And I think long term, we'll be rewarded for that.

嚴厲，所以我要對我們的業務做一個大的宏觀電話。我認為我們的信念是，如果我們在 6% 的 ROA 以北創造這些資產，我們將獲得回報。我認為平衡行為顯然是從債務角度和股權角度管理我們的資本成本，以使這些交易增值。所以我會說這是一種平衡行為。我認為那種收益率將近 7%。我希望我能告訴你他們正在流入，但我不希望這些繼續下去。但我確實認為，在這種利率環境下，我們的業務可以實現中低 6 的水平。我認為從長遠來看，我們會因此而得到回報。

That's helpful. And then -- so CARET, the authorized shares there, it increased from about $10 million to $12.5 million. I understand at this time, authorized shares are not yet issued. But what I want to confirm is, first off, why the increase? What's the philosophy behind that? And second, when we share in the [GAD] issued, I just want to confirm that the proceeds from those issuances would go to sales, correct?

這很有幫助。然後 - 所以 CARET，那裡的授權股份，它從大約 1000 萬美元增加到 1250 萬美元。據我所知，目前尚未發行授權股份。但我想確認的是，首先，為什麼會增加？這背後的理念是什麼？其次，當我們分享已發行的 [GAD] 時，我只想確認這些發行的收益將用於銷售，對嗎？

Yes. So on the first part, Harsh, the goal with the MSD negotiations was to really build out CARET in a fully fleshed out form, that will take us for many, many, many decades. So the -- just changing the authorization a bit was to anticipate over the coming many, many, many years, the ability to issue a modest amount for lots of different reasons within the purview of the board. We wanted them to have the flexibility over the long term without having to keep going back. So that 20% increase is really anticipatory of the long-term future of CARET , nothing imminent. Second part, Marcos?

是的。所以在第一部分，Harsh，MSD 談判的目標是以完全充實的形式真正構建 CARET，這將花費我們很多很多很多年。所以 - 只是稍微改變一下授權，就可以預測在未來很多很多年內，由於董事會權限內的許多不同原因，能夠發行適度數量。我們希望他們擁有長期的靈活性，而不必一直倒退。因此，20% 的增長確實是對 CARET 長期未來的預期，沒有什麼迫在眉睫的事情。第二部分，馬科斯？

Yes. Harsh, so the -- I think your question was if you raised proceeds at Safe does that go to the ground lease business? And the answer is yes. So we would redeploy those to invest in ground leases.

是的。苛刻，所以 - 我認為你的問題是，如果你在 Safe 籌集的收益是否用於地面租賃業務？答案是肯定的。所以我們會重新部署那些投資於地面租賃。

Okay. And then last one for me. For this quarter, what proportion of them were originated by Safe, what proportion of the acquisitions were originated by Safe versus just acquiring existing ground leases? And also, could you touch on the rent coverage this quarter? I know it was in line with your investment targets, but closer to the low end and it represented sort of a meaningful slowdown or a meaningful downtick versus the previous few quarters. So maybe you could touch on why that was.

好的。然後最後一個給我。對於本季度，其中有多少是由 Safe 發起的，有多少收購是由 Safe 發起的，而不是僅僅收購現有的地面租賃？另外，您能否談談本季度的租金覆蓋率？我知道這符合你的投資目標，但更接近低端，與前幾個季度相比，它代表了一種有意義的放緩或有意義的下滑。所以也許你可以談談為什麼會這樣。

Sure thing. So 100% of the 3 assets were originated, so none were existing ground leases. And then our coverage construct for assets that are in transition or in development is we take a haircut to the sponsor's numbers typically, and then we take an incremental haircut to that number just to be conservative. So the 2.3x coverage level probably reflects almost a 20% to 25% discount to the sponsor underwriting.

當然可以。所以這 3 項資產的 100% 是起源的，所以沒有一個是現有的地面租賃。然後，我們對處於轉型期或開發中的資產的覆蓋結構是，我們通常對贊助商的數字進行理髮，然後為了保守起見，我們對該數字進行增量理髮。因此，2.3 倍的覆蓋水平可能反映了贊助商承保的近 20% 至 25% 的折扣。

Your next question for today is coming from Ki Bin Kim at Truist.

今天的下一個問題來自 Truist 的 Ki Bin Kim。

Joining the call a little bit late, sorry if you already answered this question. Just curious on the 4Q's deal volume at a 6.9% yield. I mean, it's pretty high. I mean just kind of saying the obvious, but I'm curious about what special situation this was, if it was that? And what kind of customer would transact on a ground needs of that type of yield even in this environment?

加入電話會議有點晚了，抱歉，如果您已經回答了這個問題。只是好奇 4Q 的交易量，收益率為 6.9%。我的意思是，它相當高。我的意思是說顯而易見的事情，但我很好奇這是什麼特殊情況，如果是那樣的話？即使在這種環境下，什麼樣的客戶會根據這種收益的實際需求進行交易？

Yes. I would say those are opportunistic as I said before in the other question, I think generally, we're kind of targeting low 6s to mid-6s. I'm hopeful that we continue to get stuff close to the 7% range, but I would call these 3 originations sort of situational. But the sponsors are ultra-high net worth family office, Southeast operator that owns over 10,000 units and then another family office. So I think they looked at the situation and we were the most efficient capital solution available in the market in Q4 to get their transactions off the ground. And I still think that dynamic plays forward in sort of Q1, Q2. So for the people who need to make decisions, we are still going to be the most efficient option out there.

是的。正如我之前在另一個問題中所說的那樣，我會說這些是機會主義的，我認為一般來說，我們的目標是低 6s 到中 6s。我希望我們繼續獲得接近 7% 範圍的東西，但我會把這 3 個起源稱為情境。但贊助商是超高淨值家族辦公室，擁有超過10,000個單位的東南運營商，然後是另一個家族辦公室。所以我認為他們審視了情況，我們是第四季度市場上最有效的資本解決方案，可以讓他們的交易起步。而且我仍然認為動態在 Q1、Q2 中發揮作用。所以對於需要做決定的人來說，我們仍然是最有效的選擇。

And going back to your comments about low to mid-6 is feeling achievable. I'm curious about how deep the market is at those type of yields? Or do you have to go [sub-secs] for it to really hit your stride on a volume perspective?

回到你對低到中 6 的評論感覺是可以實現的。我很好奇市場對這些類型的收益率有多深？或者你是否必須去 [sub-secs] 才能真正在體積角度上取得進展？

I think at those levels, when I look at the alternative options, I feel good. I think from a volume perspective, I think as I said, we're cautious. What we really need to have happened for us to kind of hit pace again from an origination standpoint, is this in past between buyers and sellers, this value in past to sort of abate. We're starting to see it in the multi space, as I said before, but we haven't seen it in other asset classes. So I would say volumes will probably be muted in Q1. And hopefully, there's some pickup in Q2 and the back half of the year.

我認為在這些級別上，當我查看替代選項時，我感覺很好。我認為從數量的角度來看，正如我所說，我們很謹慎。從起源的角度來看，我們真正需要發生的事情才能讓我們再次加快步伐，這是過去在買賣雙方之間發生的事情，過去的這種價值有所減弱。正如我之前所說，我們開始在多領域看到它，但我們還沒有在其他資產類別中看到它。所以我想說第一季度的成交量可能會減弱。希望在第二季度和今年下半年有所回升。

Mr. Hoffmann, we have no further questions.

霍夫曼先生，我們沒有其他問題了。

Great. Thank you. If you should have any additional questions on today's earnings release, please feel free to contact me directly. Holly, could you please give the conference call replay instructions once again?

偉大的。謝謝。如果您對今天的收益發布有任何其他問題，請隨時直接與我聯繫。 Holly，能否請您再次給出電話會議重播說明？

Certainly. There will be a replay of this conference call beginning at 2:00 p.m. Eastern Time today. The dial-in for the replay is (877) 481-4010 with the confirmation code 47581. Thank you.

當然。將從下午 2:00 開始重播此電話會議。今天東部時間。重播的撥入是（877）481-4010，確認碼是47581。謝謝。

This does conclude today's event. You may disconnect your lines at this time, and have a wonderful day. Thank you for your participation.

今天的活動到此結束。此時您可以斷開線路，度過美好的一天。感謝您的參與。