Safehold Inc (NYSE:SAFE) Q1 2020 Earnings Conference Call - Final Transcript
Apr 23, 2020 • 10:00 am ET
has impacted our entire industry, resulting in a material slowdown in real estate transactions.
Uncertainty in the market is high, financing has softened and closing deals is challenging. As a result, we think it's likely that our second quarter originations will also be below our prior expectations. As you can see on the right-hand side of the page, our portfolio currently stands at $2.8 billion. Slide 7 shows the diversity in our portfolio.
Our portfolio is 63% office, 19% hotel, 17% multifamily, and 1% other property types. We remain focused on scaling our business across the top MSAs in the United States and building a large and diversified portfolio of ground leases. Slide 11 presents the key metrics of the portfolio. Rent coverage was 4.1 times and ground lease to value was 37%.
I should note that these calculations are based on data and underwriting assumptions prior to the impact of COVID-19. Given the uncertainty in the operating outlook, we expect these metrics to be adversely affected for a period of time going forward. For the quarter, annualized GAAP rent after depreciation and amortization was $149.6 million, a 5.5% yield. This compares to the 4% effective rate of our debt.
Annualized cash rent was $95.4 million, representing a 3.5% cash yield for the ground leases in our portfolio at quarter end comparing to the cash interest rate on our debt of 3.1%. Our weighted average lease term is 89 years. Moving to Slide 12, a quick update on the unrealized capital appreciation in our portfolio. UCA stood at approximately $5 billion at the end of the quarter.
This calculation is also based on data and assumptions prior to the impact of COVID-19, and this amount may decline in future periods with respect to certain properties. However, we have a long-term view on our properties and are less focused on quarterly fluctuations. We use this metric as both a measure of the first quarter estimated value of the buildings we are set to inherit at the end of our leases, as well as a measure of the aggregate value of the subordinate capital protecting our ground leases. Before I turn it back to Jay, I'll just conclude by saying I look forward to meeting many of you in the coming weeks and months, perhaps virtually at first, but hopefully soon enough in person.
Thanks, Jeremy. I have just one quick final thoughts. Long-lived assets and long-lived debt mean we are much more focused on long-term values than any quarter-to-quarter moves. Through most cycles, good assets and good locations went out, and that's certainly true for ground leases as well.
And this pandemic will pass. And while it'd be extremely painful and tragic in many ways, our long-term view of the United States and real estate in top markets in the country remains undiminished. Okay. With that, operator, let's go ahead and open up for question.