August 2018 (NYSE: SAFE) - s22.q4cdn.com

[Pages:40]August 2018

Corporate Presentation

(NYSE: SAFE)

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: market demand for ground lease capital; the Company's ability to source 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 initial 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, and refinancing and interest rate risks); 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 developers, owners and operators of real estate (including life insurance companies, pension funds, high net worth investors, sovereign wealth funds, mortgage REITs, private equity funds and separate accounts); unknown liabilities acquired in connection with real estate; 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, 2017 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.

Investor Relations Contact Jason Fooks

(212) 930-9400 investors@

Safety, Income & Growth Inc.

The Ground Lease Company

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Corporate Snapshot

NYSE Ticker Share Price (8/6/18) Book Value / Share Dividend Yield (8/6/18)

SAFE $17.36 $20.00 3.46%

Value Bank(1) Market Cap (8/6/18) Total Assets Total Liabilities Total Equity

$1,259M $316M $683M $315M $368M

Note: As of 6/30/18 unless otherwise stated.

(1) Please refer to the "Capital Appreciation: Value Bank" slide found later in this presentation for additional details.

Safety, Income & Growth Inc.

The Ground Lease Company

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Investment Opportunity (NYSE: SAFE)

Market Disruptor

Safety, Income & Growth set out to redefine how the market looks at real estate finance First and only publicly-traded company to focus on ground lease investments Large opportunity as first mover in a significant, untapped market

SAFE Investment Attributes Portfolio Performance

Ground leases generate attractive risk-adjusted returns combining:

? Safety: One of the safest parts of a real estate capital structure ? Income: Growing inflation-hedged rent streams ? Growth: Potential for significant capital appreciation

Since its IPO in June 2017:

? Closed $291M of additional transactions, increasing the size of its portfolio by 86% to $631M ? Annualized Cash Rent rose from $17.4M to $29.4M, driven by a combination of new ground

lease originations and the rent escalations built into the ground lease contracts ? Value Bank grew 188% to $1.3B(1)

Active Pipeline

Seven deals aggregating $141M currently under LOI (as of July 17) SAFE continues to expand into more cities with new customers while continuing to see repeat client business

Note: Please refer to the Glossary for definitions of capitalized terms used in this presentation. Please refer to the "Appendix" for a reconciliation of non-GAAP financial metrics. Figures in this presentation are provided as of 6/30/18, unless otherwise specified. (1) Please refer to the "Capital Appreciation: Value Bank" slide found later in this presentation for additional details.

Safety, Income & Growth Inc.

The Ground Lease Company

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Reinventing Ground Leases for Today's Market

While debt products over the years have become increasingly tranched to more efficiently connect varying risk-reward levels, ground leases have not evolved in the same manner

Ground Leases

Debt Products

Equity

Bank Mortgage

1980

Equity Leasehold Finance Ground

Lease

Safety, Income & Growth Inc.

The Ground Lease Company

Equity

BBB A AA AAA

1990

Equity

Mezzanine BBB A AA

AAA

2000

Equity

Mezzanine B-Note BB BBB A AA AAA

2010

Equity

Pref Equity Mezzanine

B-Note BB BBB A AA

AAA

2018

Ground leases have remained stagnant, with no institutional platforms focused on innovation until...

The SAFE Ground LeaseTM

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The SAFE Ground LeaseTM

Safety, Income & Growth Inc.

The Ground Lease Company

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What is a Ground Lease?

A ground lease generally represents ownership of the land underlying a commercial real estate property which is triple net leased on a long-term basis by the Landlord (SAFE) to a Tenant that owns and operates the building.

The Structure:

1 Tenant - receives beneficial ownership of property during lease term. Responsible for all operating costs and improvements.

2 Landlord (SAFE) - collects ground rent payments during the lease term. At lease expiration, or upon a Tenant default, the land and building, including all improvements, revert back to SAFE.

1

Tenant

2

Ground Lease Landlord (SAFE)

Safety, Income & Growth Inc.

The Ground Lease Company

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The SAFE Ground LeaseTM Business

Our business is founded on the idea that there is a fundamental risk-reward mismatch in the current commercial real estate market.

Owners and operators of buildings seeking higher returns with higher risk are currently also forced to purchase the land, a lower yielding asset that costs them additional capital.

The SAFE Ground LeaseTM essentially bifurcates the land from the building to unlock value, freeing the building operator to focus on their higher return business, while SAFE can provide a portfolio of stable, increasing income to investors.

The Building The Land

Similar to the risk tranching of the debt markets, the SAFE Ground LeaseTM unlocks value so when you add up the sum of the parts, 1 + 1 = more than 2.

Safety, Income & Growth Inc.

The Ground Lease Company

Higher riskreturn profile Lower riskreturn profile

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