Core Insights - The individual has extensive experience in the oil and gas sector, particularly in the Middle East, which informs their investment strategy [1] - The investment approach has evolved from growth investing to a blend of value and growth, focusing on the underlying economics of businesses and their competitive advantages [1] - There is an emphasis on generating consistent free cash flow and a moderately conservative orientation towards minimizing downside risk while seeking upside [1] Investment Strategy - The investment strategy includes a gradual rebalancing towards income-generating assets such as dividend-paying equities and REITs as retirement approaches [1] - Investing is viewed not just as a pursuit of high returns but also as a means to achieve peace of mind [1] - The individual is interested in ecologically sensitive businesses, indicating a focus on sustainable investing [1]

[PART I Consolidated Financial Information](index=3&type=section&id=PART%20I%20Consolidated%20Financial%20Information) This section presents the company's unaudited consolidated financial statements and related notes, along with management's discussion and analysis of financial condition and results of operations [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for the period ended June 30, 2025, show a slight increase in total assets to $7.1 billion, driven by growth in lease and loan receivables, while total liabilities also increased primarily due to higher debt obligations [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet reflects the company's financial position, showing asset growth primarily from lease and ground lease receivables, alongside an increase in debt obligations | Account | June 30, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$7,063,158** | **$6,899,379** | **+2.4%** | | Net investment in sales-type leases | $3,511,257 | $3,454,953 | +1.6% | | Ground Lease receivables, net | $1,903,883 | $1,833,398 | +3.8% | | **Total Liabilities** | **$4,659,091** | **$4,525,352** | **+2.9%** | | Debt obligations, net | $4,444,412 | $4,317,439 | +2.9% | | **Total Equity** | **$2,404,067** | **$2,374,027** | **+1.3%** | - Total assets increased by **$163.8 million** from December 31, 2024, to June 30, 2025, primarily driven by growth in net investment in sales-type leases and ground lease receivables[9](index=9&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The statements of operations indicate revenue growth for Q2 2025, but net income attributable to shareholders decreased due to higher interest expense and credit loss provisions | Metric | Q2 2025 ($ in thousands) | Q2 2024 ($ in thousands) | YTD 2025 ($ in thousands) | YTD 2024 ($ in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $93,842 | $89,895 | $191,519 | $183,108 | | Interest Expense | $51,265 | $49,107 | $101,691 | $97,738 | | Provision for credit losses | $2,350 | $626 | $4,646 | $1,335 | | Net Income (to Safehold Inc.) | $27,947 | $29,665 | $57,311 | $60,393 | | Diluted EPS | $0.39 | $0.42 | $0.80 | $0.85 | - Net income for Q2 2025 decreased by **5.8% YoY** to **$27.9 million**, and diluted EPS fell to **$0.39** from **$0.42**, primarily due to a significant increase in the provision for credit losses and higher interest expense, which offset revenue growth[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements show increased cash from operations for the first six months of 2025, with financing activities providing significant proceeds from net debt | Cash Flow Activity | Six Months Ended June 30, 2025 ($ in thousands) | Six Months Ended June 30, 2024 ($ in thousands) | | :--- | :--- | :--- | | Net cash from Operating Activities | $36,902 | $21,695 | | Net cash used in Investing Activities | ($123,961) | ($136,823) | | Net cash from Financing Activities | $92,878 | $90,410 | | **Change in Cash** | **$5,819** | **($24,718)** | - For the first six months of 2025, cash from operations increased to **$36.9 million** from **$21.7 million** in the prior year, with cash used in investing activities decreasing slightly due to lower originations of sales-type leases and ground lease receivables, and financing activities providing **$92.9 million** primarily from net debt proceeds[22](index=22&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and financial statement line items, including the company's business model focused on long-term Ground Leases, its growing lease and loan portfolios, debt obligations, and significant related-party transactions - The company's business is focused on acquiring, managing, and capitalizing long-term Ground Leases, which represent ownership of the land underlying commercial real estate projects, operating as a single reportable segment and electing to be treated as a REIT[24](index=24&type=chunk)[26](index=26&type=chunk) - The combined portfolio of Net Investment in Sales-Type Leases and Ground Lease Receivables grew to **$5.42 billion** as of June 30, 2025, up from **$5.29 billion** at year-end 2024[55](index=55&type=chunk) - In Q2 2025, the company began originating leasehold loans in conjunction with its Ground Leases, with an outstanding principal balance of **$42.8 million** as of June 30, 2025[77](index=77&type=chunk) - Total debt obligations stood at **$4.44 billion** as of June 30, 2025, with the company entering into a new **$2.0 billion** unsecured revolving credit facility in April 2024, replacing previous facilities[105](index=105&type=chunk)[116](index=116&type=chunk) - The company manages Star Holdings and earned management fees of **$2.7 million** and **$6.3 million** for the three and six months ended June 30, 2025, respectively, also holding a **$115.0 million** secured term loan facility outstanding to Star Holdings[82](index=82&type=chunk)[181](index=181&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's single-segment business model centered on Ground Leases, highlighting portfolio diversification, the impact of high interest rates, operational results showing revenue growth offset by increased expenses, and strong liquidity maintained through recent financing activities [Business Overview and Portfolio](index=50&type=section&id=Business%20Overview%20and%20Portfolio) The company's strategy focuses on acquiring, managing, and capitalizing on Ground Leases, which provide safe, growing income and potential for capital appreciation, with a diversified portfolio across property types and geographies - The company's strategy is to acquire, manage, and capitalize on Ground Leases, which it believes provide safe, growing income and potential for capital appreciation through residual rights[189](index=189&type=chunk) Combined Property Value and Unrealized Capital Appreciation | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Combined Property Value | $15,577 million | $15,523 million | | Ground Lease Cost | $6,521 million | $6,395 million | | **Unrealized Capital Appreciation (UCA)** | **$9,056 million** | **$9,128 million** | Portfolio Diversification by Property Type | Property Type | % of Gross Book Value | | :--- | :--- | | Multifamily | 41% | | Office | 40% | | Hotel | 11% | | Life Science | 6% | | Mixed Use and Other | 2% | - The portfolio is geographically concentrated, with the top three markets being Manhattan (**21%**), Washington, DC (**10%**), and Boston (**8%**)[216](index=216&type=chunk) [Results of Operations](index=59&type=section&id=Results%20of%20Operations) Operational results for Q2 and YTD 2025 show revenue growth driven by portfolio expansion, but net income declined due to increased interest expense and a significant rise in the provision for credit losses - **Q2 2025 vs Q2 2024:** Total revenues increased by **$3.9 million**, primarily due to a **$5.4 million** rise in interest income from sales-type leases from portfolio growth, however, total costs and expenses grew by **$4.0 million**, driven by a **$2.2 million** increase in interest expense and a **$1.7 million** increase in the provision for credit losses, leading to a slight decrease in net income[222](index=222&type=chunk)[223](index=223&type=chunk)[227](index=227&type=chunk) - **YTD 2025 vs YTD 2024:** Total revenues for the six-month period grew by **$8.4 million**, while total costs increased by **$7.8 million**, with the provision for credit losses rising significantly to **$4.6 million** from **$1.3 million**, and other expenses increasing by **$2.1 million** mainly due to a **$1.9 million** write-off of a preferred equity investment[237](index=237&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) - Other income decreased in both the three and six-month periods of 2025 compared to 2024, primarily due to lower management fees earned from Star Holdings (**$2.7 million** vs **$4.4 million** in Q2; **$6.3 million** vs **$9.9 million** YTD)[226](index=226&type=chunk)[241](index=241&type=chunk) [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with substantial cash and undrawn credit capacity, supported by recent senior note issuances and a new revolving credit facility, while also having unfunded commitments for various investments - The company maintains a strong liquidity position with **$13.9 million** in unrestricted cash and **$1.2 billion** of undrawn capacity on its **$2.0 billion** unsecured revolving credit facility as of June 30, 2025[260](index=260&type=chunk)[262](index=262&type=chunk) - Recent financing activities include the issuance of an aggregate **$700.0 million** in senior notes in November 2024 and February 2024, and the establishment of a new **$2.0 billion** unsecured revolver in April 2024, which extended maturities and increased flexibility[256](index=256&type=chunk)[258](index=258&type=chunk) - The company has a **$50.0 million** share repurchase program authorized in February 2025, but no shares had been repurchased as of June 30, 2025[255](index=255&type=chunk) - Total unfunded commitments as of June 30, 2025, were **$90.5 million** for leasehold improvements, **$35.0 million** for a forward commitment, and **$195.9 million** for performance-based construction and development loans[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its floating-rate debt, with a sensitivity analysis indicating that a 100 basis point increase in interest rates would decrease annual net income by approximately $3.4 million - The principal market risk is interest rate risk on floating-rate indebtedness, with the company aiming to limit the impact of interest rate changes on operations and cash flows[272](index=272&type=chunk)[274](index=274&type=chunk) Estimated Change in Net Income Due to Interest Rate Changes | Change in Interest Rates | Estimated Change in Net Income ($ in thousands) | | :--- | :--- | | +100 Basis Points | ($3,378) | | +50 Basis Points | ($1,689) | | -50 Basis Points | $1,700 | | -100 Basis Points | $3,478 | [Controls and Procedures](index=74&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[278](index=278&type=chunk) - No changes in the company's internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[279](index=279&type=chunk) [PART II Other Information](index=75&type=section&id=PART%20II%20Other%20Information) This section covers other required disclosures, including legal proceedings, risk factors, unregistered sales of equity securities, and a list of exhibits [Legal Proceedings](index=75&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending legal proceedings that are expected to have a material adverse effect on its business or financial condition - The company reports no pending legal proceedings that would have a material adverse effect on its business or financial condition[283](index=283&type=chunk) [Risk Factors](index=75&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors disclosed in the 2024 Annual Report were reported[284](index=284&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not have any sales of unregistered equity securities during the three months ended June 30, 2025, and no shares were repurchased under its authorized share repurchase program during the quarter - There were no sales of unregistered common stock during the three months ended June 30, 2025[285](index=285&type=chunk) - The company has a board-authorized share repurchase program for up to **$50.0 million**, under which no shares were purchased during the quarter[290](index=290&type=chunk) [Exhibits](index=76&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed with the Form 10-Q, including charter documents, certifications, and XBRL data files

Core Insights - Safehold reported revenue of $93.84 million for the quarter ended June 2025, reflecting a 4.4% increase year-over-year, but an EPS of $0.39, down from $0.41 in the previous year [1] - The revenue was slightly below the Zacks Consensus Estimate of $93.88 million, resulting in a surprise of -0.04%, while the EPS met the consensus estimate [1] Revenue Breakdown - Operating lease income was reported at $16.71 million, slightly above the estimated $16.64 million, showing a year-over-year increase of 0.1% [4] - Other income was reported at $3.78 million, below the estimated $4.3 million, representing a significant year-over-year decline of 32.6% [4] - Interest income from sales-type leases was $70.64 million, marginally exceeding the estimate of $70.62 million, with a year-over-year increase of 8.3% [4] Stock Performance - Over the past month, Safehold's shares have returned -8.4%, contrasting with a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - For the second quarter, GAAP revenue was $93.8 million, net income was $27.9 million, and earnings per share was $0.39, with a decline in GAAP earnings year over year primarily due to a $1.7 million increase in non-cash general provision for credit losses [10][11][12] - Excluding the impact from non-cash general provisions, Q2 earnings per share was $0.42 [10] - The total portfolio was $6.9 billion, with an estimated UCA of $9.1 billion, reflecting a $200 million increase from the previous quarter [8][9] Business Line Data and Key Metrics Changes - New origination activity was approximately $220 million, including four ground leases for $123 million and three leasehold loans for $97 million [5][6] - The ground lease portfolio has grown 20 times by book value since the IPO, with estimated unrealized capital appreciation growing 21 times [9] - The portfolio currently earns a 3.7% cash yield and a 5.4% annualized yield, with an economic yield of 5.8% [11][12] Market Data and Key Metrics Changes - The pace of signed LOIs has increased, currently at its highest level since 2022, driven by success in the affordable housing segment [7][8] - The GLTV remained flat at 52%, and rent coverage was unchanged at 3.5 times [13] Company Strategy and Development Direction - The company aims to simplify and shorten the time to closing by rolling out a test program for one-stop capital solutions combining ground leases and leasehold loans [4][5] - The focus remains on enhancing affordable multifamily projects and maximizing opportunities for top players in that market [4][5] - The company is optimistic about the sectors it is focusing on and the product enhancements being piloted with customers [8] Management's Comments on Operating Environment and Future Outlook - Management noted that market conditions remain challenging, with larger customers navigating uncertainty [4] - There is optimism regarding customer engagement translating into more LOIs and closings, with a well-positioned balance sheet and ample liquidity [17] - The impact of recent legislative changes on demand for ground leases is still uncertain, but the company is navigating through the current market dynamics [40][41] Other Important Information - The company has approximately $1.2 billion of liquidity, supported by potential available capacity in its joint venture [8][15] - The weighted average debt maturity is approximately 19 years, with no corporate maturities due until 2027 [13][15] Q&A Session Summary Question: Inquiry about new sponsor conversion and timeline - Management indicated that the timeline for converting clients has shortened, with some deals taking years while others can convert in weeks [20][21] Question: Affordable housing transactions and geographic expansion - The company has expanded its reach into other states and is seeing traction in its pipeline for affordable housing transactions [22][24] Question: Pipeline status and future capital deployment - Management confirmed that the pipeline remains strong, with an increase in LOIs and a positive outlook for future capital deployment [27][28] Question: Nature of leasehold loans - Leasehold loans are intended as accelerators, not permanent capital solutions, with an average term of three years or less [30][31] Question: Impact of recent legislation on ground lease demand - Management believes the impact is still uncertain, but existing assets may benefit while development assets face challenges [40][41] Question: Commentary on the hotel deal and potential for repeat business - The company sees potential for future business with new sponsors and is actively engaging in discussions for additional deals [46][47] Question: Update on Park Hotels portfolio - Management provided insights on the Park portfolio, indicating that two assets are not being renewed, with plans for potential sales of the remaining assets [59][60][66]

Financial Performance - Revenues for Q2'25 reached $93.8 million, a 4% increase compared to $89.9 million in Q2'24[10] - Net income attributable to Safehold Inc common shareholders was $27.9 million in Q2'25, a 6% decrease from $29.7 million in Q2'24[10] - Earnings per share (EPS) were $0.39 in Q2'25, down 6% year-over-year from $0.42[10] Portfolio Growth and Composition - Aggregate Gross Book Value (GBV) of ground leases reached $6.9 billion in Q2'25, a significant increase from $0.3 billion at IPO[8] - Estimated Unrealized Capital Appreciation (UCA) grew to $9.1 billion in Q2'25, a substantial rise from $0.4 billion at IPO[8] - New ground lease originations in Q2'25 totaled $123 million, while new leasehold loan originations amounted to $97 million[8] - Multifamily assets constitute 58% of the portfolio by count, representing 41% of the GBV[19] Capital Structure and Liquidity - The company has $1.2 billion in cash and credit facility availability[5] - Total debt outstanding is $4.77 billion, with total equity at $2.40 billion, resulting in a debt-to-equity ratio of 1.98x[24] Portfolio Yields - The core ground lease portfolio has an economic yield of 5.8%[14] - The illustrative Caret adjusted yield is 7.5%[14]

[Q2'25 Financial Highlights](index=2&type=section&id=Q2%2725%20Financial%20Highlights) This section provides an overview of the company's financial performance and portfolio metrics for the second quarter of 2025 [Q2'25 Summary](index=2&type=section&id=Q2%2725%20Summary) In Q2'25, the company originated $123 million in ground leases and $97 million in leasehold loans, achieving a 7.2% economic yield on new ground leases, while maintaining a conservative portfolio GLTV of 52% and 3.5x rent coverage, supported by $1.2 billion in available capital Q2'25 Investment Activity | Metric | Value | | :--- | :--- | | Ground Lease Originations | $123 million (4 leases) | | Leasehold Loan Originations | $97 million (3 loans) | | New Markets Entered | 1 | | New Sponsors | 4 | | Ground Lease-to-Value (GLTV) | 33% | | Rent Coverage | 3.2x | | Economic Yield | 7.2% | - The total portfolio maintains a **GLTV of 52%** and a **rent coverage of 3.5x**, indicating a stable risk profile[4](index=4&type=chunk) - The company has **$1.2 billion in available capital** from cash and its credit facility, with an additional **$400 million** in remaining capital for its joint venture with a sovereign wealth fund[4](index=4&type=chunk) [Portfolio Growth](index=3&type=section&id=Portfolio%20Growth) The portfolio's aggregate Gross Book Value (GBV) reached $6.9 billion in Q2'25, marking a 20-fold increase since its IPO, with $123 million in new ground leases and $97 million in new leasehold loans, and multifamily assets comprising 58% of the portfolio by count - Aggregate Gross Book Value (GBV) plus Unrealized Capital Appreciation (UCA) has grown to **$9.1 billion**, with the portfolio size growing **20x since the IPO**[6](index=6&type=chunk) Q2'25 Originations & Fundings | Category | Value | Details | | :--- | :--- | :--- | | **New Originations** | | | | Ground Leases | $123 million | $61 million funded, $62 million unfunded | | Leasehold Loans | $97 million | $43 million funded, $54 million unfunded | | **Total Fundings** | **$114 million** | | | Ground Lease Fundings | $65 million | $61 million new (7.0% yield), $4 million existing | | Leasehold Loan Fundings | $49 million | $43 million new (SOFR+249), $6 million existing | Portfolio Asset Allocation by Count | Asset Type | Percentage of Portfolio | | :--- | :--- | | Multifamily | 58% | | Office | 21% | | Hotel | 8% | | Other | 13% | [Earnings Results](index=4&type=section&id=Earnings%20Results) For Q2'25, GAAP Net Income attributable to common shareholders decreased by 6% year-over-year to $27.9 million, with GAAP EPS declining to $0.39, primarily due to a $1.7 million increase in the non-cash general provision for credit losses, despite a 4% increase in total revenues to $93.8 million Q2'25 Earnings Summary (Y/Y) | Metric | Q2'25 | Q2'24 | Y/Y Change | | :--- | :--- | :--- | :--- | | Revenues | $93.8 million | $89.9 million | 4% | | GAAP Net Income | $27.9 million | $29.7 million | -6% | | GAAP EPS | $0.39 | $0.42 | -6% | - The primary reason for the year-over-year decrease in GAAP Net Income and EPS was a higher non-cash general provision for credit losses, which was **$2.4 million in Q2'25** compared to **$0.6 million in Q2'24**[7](index=7&type=chunk)[8](index=8&type=chunk) [Portfolio Yields](index=5&type=section&id=Portfolio%20Yields) The company's core ground lease portfolio, valued at $6.8 billion with a 91-year weighted average lease term, exhibits a multi-layered yield profile, with an Annualized Cash Yield of 3.7%, an Economic Yield of 5.8%, and an Inflation Adjusted Yield of 6.0% - The analysis is based on the Core Ground Lease Portfolio with a Gross Book Value of **$6.8 billion** and a weighted average lease term of **91 years**, including extensions[9](index=9&type=chunk) Portfolio Yield Breakdown | Yield Metric | Rate | Components Included | | :--- | :--- | :--- | | Annualized Cash Yield | 3.7% | Cash Rent | | Annualized GAAP Yield | 5.4% | GAAP Rent | | Economic Yield | 5.8% | GAAP Rent, Variable Rent, CPI Lookbacks | | Inflation Adjusted Yield | 6.0% | Economic Yield components + 2.0% inflation assumption | [Portfolio Diversification](index=6&type=section&id=Portfolio%20Diversification) The $6.8 billion core ground lease portfolio is diversified by geography and asset type, focusing on top U.S. MSAs, with Multifamily and Office properties representing 41% and 40% of GBV respectively, and Manhattan as the largest market at 21% of GBV Portfolio by Asset Type (% of GBV) | Asset Type | GBV % | Rent Coverage | GLTV® | | :--- | :--- | :--- | :--- | | Multifamily | 41% | 3.6x | 38% | | Office | 40% | 3.2x | 69% | | Hotel | 11% | 3.6x | 47% | | Life Science | 6% | 4.6x | 42% | | Mixed Use & Other | 2% | 3.8x | 45% | | **Total** | **100%** | **3.5x** | **52%** | - The top 10 markets by GBV are: Manhattan (**21%**), Washington D.C. (**10%**), Boston (**8%**), Los Angeles (**7%**), San Francisco (**4%**), Denver (**4%**), Honolulu (**3%**), Nashville (**3%**), Miami (**3%**), and Atlanta (**2%**)[16](index=16&type=chunk) [Capital Structure](index=7&type=section&id=Capital%20Structure) The company maintains a total debt of $4.77 billion and total equity of $2.40 billion, resulting in a debt-to-equity ratio of 1.98x, supported by strong investment-grade credit ratings and $1.2 billion in liquidity, with no corporate debt maturities until 2027 - The company holds investment-grade credit ratings: **A3 (Stable) from Moody's**, **BBB+ (Positive) from S&P**, and **A- (Stable) from Fitch**, with no corporate maturities due until 2027[19](index=19&type=chunk) Debt and Liquidity Metrics (Q2'25) | Metric | Value | | :--- | :--- | | Total debt | $4.77 billion | | Total equity | $2.40 billion | | Total debt / Total equity | 1.98x | | Debt cash interest rate | 3.8% | | Cash & credit facility availability | $1.20 billion | - The company utilizes hedges to manage interest rate risk, including a **$500 million SOFR swap** and **$250 million in Treasury locks**, which had a gain position of approximately **$31 million**[20](index=20&type=chunk) [Appendix](index=8&type=section&id=Appendix) This section provides supplementary financial details, including comprehensive statements, reconciliations of key metrics, and specific information regarding the Caret subsidiary [Financial Statements](index=9&type=section&id=Financial%20Statements) The detailed financial statements show that for the six months ended June 30, 2025, total revenues increased to $191.5 million from $183.1 million in the prior year, while net income decreased slightly to $57.4 million from $60.6 million, with the balance sheet reflecting asset growth to $7.06 billion and a corresponding increase in debt obligations [Income Statement](index=9&type=section&id=Income%20Statement) This section presents the condensed income statement for the three and six months ended June 30, 2025 and 2024, detailing revenues, expenses, net income, and earnings per share Condensed Income Statement (in millions) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Total revenues | $93.842 | $89.895 | $191.519 | $183.108 | | Total costs and expenses | $69.923 | $65.899 | $142.299 | $134.524 | | Net income attributable to Safehold Inc. | $27.947 | $29.665 | $57.311 | $60.393 | | Earnings per share (diluted) | $0.39 | $0.42 | $0.80 | $0.85 | [Balance Sheet](index=10&type=section&id=Balance%20Sheet) This section presents the condensed balance sheet as of June 30, 2025, and December 31, 2024, outlining total assets, debt obligations, and shareholders' equity Condensed Balance Sheet (in billions) | | As of June 30, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Total assets | $7.063 | $6.899 | | Debt obligations, net | $4.444 | $4.317 | | Total Safehold Inc. shareholders' equity | $2.373 | $2.344 | | Total liabilities and equity | $7.063 | $6.899 | [Reconciliations](index=11&type=section&id=Reconciliations) This section provides reconciliations for the company's portfolio and earnings, tracking Gross Book Value growth from IPO to $6.84 billion and adjusting GAAP net income to exclude non-recurring items, showing an adjusted EPS of $0.39 for Q2'25 [Portfolio Reconciliation](index=11&type=section&id=Portfolio%20Reconciliation) This section details the growth of Gross Book Value from the company's IPO to June 30, 2025 Gross Book Value Growth (in billions) | Date | Gross Book Value | | :--- | :--- | | IPO (6/22/17) | $0.339 | | 6/30/21 | $3.524 | | 6/30/22 | $5.542 | | 6/30/23 | $6.068 | | 6/30/24 | $6.493 | | 6/30/25 | $6.844 | [Earnings Reconciliation](index=12&type=section&id=Earnings%20Reconciliation) This section reconciles GAAP EPS to EPS excluding non-recurring items for Q2'25 and Q2'24 Reconciliation of GAAP EPS to EPS Excluding Non-Recurring Items (in millions) | | Q2'25 | Q2'24 | | :--- | :--- | :--- | | GAAP Net Income | $27.947 | $29.665 | | Net Income excl. non-recurring items | $27.947 | $29.089 | | EPS excl. non-recurring items (diluted) | $0.39 | $0.41 | [Caret Details](index=13&type=section&id=Caret%20Details) Caret is a subsidiary formed to capture the value of capital appreciation above the portfolio's cost basis, with Safehold owning approximately 84% of its units, and its Series A investment round redeemed in April 2024 - Caret was formed as a subsidiary to help recognize the value of capital appreciation above the portfolio's Cost Basis[31](index=31&type=chunk) - The ownership of Caret units is split with **Safehold holding approximately 84%**, employees (via a 2018 incentive plan) holding approximately **15%**, and MSD Partners and other family offices holding approximately **1%**[34](index=34&type=chunk) - In April 2024, the Series A investment round in Caret was redeemed using previously restricted funds, having no impact on liquidity or revolver borrowings[31](index=31&type=chunk)[33](index=33&type=chunk)

Core Viewpoint - Safehold Inc. will release its financial results for the second quarter of 2025 on August 5, 2025, after market close [1] Financial Results Announcement - The earnings conference call will take place at 5:00 p.m. ET on August 5, 2025, and will be accessible via Safehold's website [2] - Dial-in information for the live call includes a domestic number (888.506.0062) and an international number (973.528.0011) with an access code of 951370 [2] - A replay of the call will be available from 8:00 p.m. ET on August 5 through 12:00 a.m. ET on August 19, 2025, with specific dial-in numbers for replay [2] Company Overview - Safehold Inc. is innovating real estate ownership by enabling owners to unlock the value of the land beneath their buildings [2] - The company established the modern ground lease industry in 2017 and continues to assist owners of various property types in generating higher returns with reduced risk [2] - As a real estate investment trust (REIT), Safehold aims to provide safe, growing income and long-term capital appreciation to its shareholders [2]

Group 1 - Safehold Inc. has closed a ground lease for an Affordable Housing community in Mission Valley, San Diego, which will provide 227 units by 2028 [1][2] - The project is part of Safehold's strategy to invest in the Low-Income Housing Tax Credit (LIHTC) sector, which is seen as a crucial area for delivering affordable housing [2] - To date, Safehold has closed on eight ground leases for LIHTC developments in California, totaling over 1,600 units [2] Group 2 - Safehold Inc. is a leader in the modern ground lease industry, having created it in 2017, and aims to enhance real estate ownership by unlocking land value [3] - The company operates as a real estate investment trust (REIT) and focuses on providing safe, growing income and long-term capital appreciation to shareholders [3]

Core Insights - Safehold Inc. has successfully closed a ground lease and leasehold loan for a new 259-unit multifamily development in Downtown San Diego's East Village [1][2] - The project will be developed by Riaz Capital, which is investing through its Qualified Opportunity Zone fund [1] - Safehold aims to enhance its presence in the San Diego market and provide comprehensive financing solutions [2] Company Overview - Safehold Inc. is a leader in the modern ground lease industry, having established this sector in 2017 [2] - The company focuses on unlocking land value for owners of various property types, including multifamily, affordable housing, office, and mixed-use properties [2] - As a real estate investment trust (REIT), Safehold seeks to deliver safe, growing income and long-term capital appreciation to its shareholders [2]

Group 1 - Safehold Inc. has acquired a ground lease for the Asher Adams hotel in Downtown Salt Lake City, enhancing its portfolio in the hospitality sector [1][2] - The Asher Adams hotel, which has 225 keys and operates under Marriott's Autograph Collection, was developed by The Athens Group and Hatteras Sky and completed in 2024 [1][2] - Safehold's portfolio now includes nearly $7 billion in ground leases across 150 properties in the U.S., indicating significant growth and diversification [2][3] Group 2 - The Athens Group, founded in 1988, specializes in luxury and lifestyle hotel development and has a portfolio that includes notable properties like Four Seasons Hualalai and Ritz-Carlton Bachelor Gulch [4] - Hatteras Sky focuses on commercial real estate development, particularly adaptive redevelopments of historic buildings, with an emphasis on multifamily and hospitality projects [5]