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]

Core Points - Safehold Inc. has declared a common stock dividend of $0.177 per share for Q2 2025, which annualizes to $0.708 per share, payable on July 15, 2025, to shareholders of record on June 30, 2025 [1] Company Overview - Safehold Inc. is transforming real estate ownership by offering a new method for owners to unlock the value of land beneath their buildings, having established the modern ground lease industry in 2017 [2] - The company assists owners of high-quality properties, including multifamily, office, industrial, hospitality, student housing, life science, and mixed-use, 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]

Core Insights - Safehold Inc. has successfully closed a ground lease to recapitalize a 336-unit multifamily property in Florida's Space Coast, marking its 18th deal in Florida and its first with JT Capital [1][2] - The company aims to leverage its modern ground lease structure to provide lower-cost, long-term capital to property owners [2] - Safehold also provided a leasehold loan alongside the long-term ground lease to facilitate the transaction [3] Company Overview - Safehold Inc. is a leader in the modern ground lease industry, having established this sector in 2017, and focuses on unlocking land value for various property types including multifamily, office, and mixed-use [4] - The company operates as a real estate investment trust (REIT) and aims to deliver safe, growing income and long-term capital appreciation to its shareholders [4]

Investment Ratings - Cold Storage REITs: Lineage Inc. (LINE, Buy) [5] - Industrial REITs: Prologis Inc. (PLD, Neutral) [16] - Industrial REITs: Terreno Realty Corp (TRNO, Buy) [31] - Self Storage REITs: Extra Space Storage Inc. (EXR, Buy) [44] - Self Storage REITs: Public Storage Inc. (PSA, Buy) [54] - Retail REITs: Brixmor Property Group (BRX, Buy) [63] - Retail REITs: Phillips Edison & Co (PECO, Buy) [74] Core Insights - The report highlights a mixed outlook across various REIT sectors, with some companies like LINE, TRNO, EXR, PSA, BRX, and PECO receiving "Buy" ratings, while PLD is rated "Neutral" [5][16][31][44][54][63][74] - Economic occupancy for LINE decreased by 290 basis points sequentially and 260 basis points year-over-year in Q1 2025, indicating potential challenges in maintaining occupancy levels [5] - Prologis Inc. is focusing on the implications of tariff policies on global supply chains, which may disrupt tenant activities and leasing demand [16] - Terreno Realty Corp is observing a shift in leasing dynamics post-tariff announcements, with domestic customers becoming more active compared to those operating across borders [31] - Extra Space Storage Inc. is prioritizing occupancy over rent in the current environment, reflecting a strategic shift in response to market conditions [44] - Public Storage Inc. is experiencing a significant impact from regional events, such as fires in Los Angeles, which account for 15% of its NOI [54] - Brixmor Property Group is seeing a steady increase in billed occupancy, which has risen by an average of 100 basis points over the last four years [63] Summary by Sections Cold Storage REITs - Lineage Inc. (LINE) reported a decline in economic occupancy and revenue per occupied pallet, with management expressing confidence in maintaining AFFO/share and EBITDA guidance for 2025 [5][6][7] Industrial REITs - Prologis Inc. (PLD) is navigating the complexities of global supply chains and tariff impacts, with expectations for occupancy and rent growth improvements in the second half of 2025 [16][20] - Terreno Realty Corp (TRNO) is adapting to changes in leasing activity and tenant retention amid tariff uncertainties, focusing on domestic customer engagement [31][36] Self Storage REITs - Extra Space Storage Inc. (EXR) is adjusting its strategy to prioritize occupancy over rent, with a focus on counter-cyclical demand drivers [44][46] - Public Storage Inc. (PSA) is managing its rent versus occupancy strategy while facing challenges from regional disruptions [54][56] Retail REITs - Brixmor Property Group (BRX) is experiencing a positive trend in occupancy and leasing spreads, with a focus on tenant credit and market dynamics [63][66] - Phillips Edison & Co (PECO) is observing volatility in the market due to tariff updates, impacting leasing velocity and transaction activity [74]

Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility using well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Previous analysis indicated that Safehold Inc. (NYSE: SAFE) and Star Holdings (STHO) were not recommended for purchase despite some REITs appearing favorable [1] Group 2 - Trapping Value offers Covered Calls and focuses on capital preservation through lower volatility income investing [2] - The Fixed Income Portfolio aims to acquire securities with high income potential and significant undervaluation compared to peers [2] - Trapping Value consists of a team with over 40 years of combined experience in generating options income while emphasizing capital preservation [3] Group 3 - The Conservative Income Portfolio operates in partnership with Preferred Stock Trader and includes two income-generating portfolios and a bond ladder [3] - There is a potential for initiating trades in SAFE and STHO in the near future [5]

Analysis Shows 23% Reduction in Morphine Use with Favorable Safety Profile in Patients 60 Years of Age and OlderNASHVILLE, Tenn., May 27, 2025 /PRNewswire/ -- Cumberland Pharmaceuticals Inc. (Nasdaq: CPIX), a specialty pharmaceutical company, today announced the publication of its study investigating Caldolor® (intravenous ibuprofen) in older patients. The analysis evaluated the safety and efficacy of Caldolor for the management of pain and fever in patients 60 years of age and older. It marks an important ...

Core Insights - Safehold Inc. has successfully closed a ground lease for the development of The Benjamin, a 364-unit multifamily project in the Boston MSA, marking its first deal with The Michaels Organization [1][2] - The company emphasizes the growing adoption of its ground lease solution for multifamily projects in major metropolitan areas, aiming to provide low-cost, long-term capital to maximize value for owners [2][4] - Safehold's portfolio includes over 85 multifamily assets across top markets in the United States, showcasing its diversified investment strategy [3] Company Overview - Safehold Inc. is a pioneer in the modern ground lease industry, established in 2017, and focuses on enhancing real estate ownership by unlocking land value beneath buildings [4] - The company operates as a real estate investment trust (REIT), aiming to deliver safe, growing income and long-term capital appreciation to its shareholders [4]

Portfolio Composition - As of March 31, 2025, the gross book value of the company's portfolio was comprised of 41% multi-family, 40% office, 11% hotels, 6% life science, and 2% mixed use and other[182]. - The company's gross book value as a percentage of Combined Property Value was 52% as of March 31, 2025[194]. - The Park Hotels Portfolio, which consists of five hotel properties, contributes 3.3% to the gross book value of the company's portfolio[206]. - The top market by gross book value is Manhattan, accounting for 21% of the total[208]. Financial Performance - Total revenues for the three months ended March 31, 2025, increased to $97.7 million, up from $93.2 million in the same period in 2024, representing a growth of 4.8%[215]. - Interest income from sales-type leases rose to $69.7 million for the three months ended March 31, 2025, compared to $63.2 million in 2024, reflecting an increase of 7.9%[217]. - General and administrative expenses decreased to $14.1 million for the three months ended March 31, 2025, down from $15.6 million in 2024, a reduction of 9.6%[224]. - The company recorded a provision for credit losses of $2.3 million for the three months ended March 31, 2025, compared to $0.7 million in the same period in 2024[226]. - Earnings from equity method investments for Q1 2025 totaled $5.0 million, a decrease from $6.0 million in Q1 2024, primarily due to a loan repayment and asset acquisition[228]. - Consolidated income tax expense for Q1 2025 was $0.9 million, up from $0.5 million in Q1 2024, with a deferred tax expense of $0.9 million related to equity-based compensation[229]. Ground Lease Investments - The estimated Combined Property Value as of March 31, 2025, was $15,252 million, with a Ground Lease Cost of $6,398 million, resulting in an Unrealized Capital Appreciation of $8,854 million[197]. - Ground Leases typically provide income growth through contractual base rent escalators, which may be based on fixed increases or CPI adjustments[187]. - The company targets Ground Lease investments where the initial cost represents 30% to 45% of the Combined Property Value, indicating a strong correlation between inflation and commercial real estate values[189]. - The Caret program distinguishes between the bond component and the Caret component of the Ground Lease portfolio, tracking two distinct value components[195][198]. - As of March 31, 2025, the estimated Ground Rent Coverage was 3.5x, indicating a strong ability to cover ground rent obligations[205]. - The company identifies a significant market opportunity in the approximately $7.0 trillion institutional commercial property market in the U.S., focusing on expanding the use of Ground Leases[202]. Liquidity and Debt - As of March 31, 2025, the company had $17 million in unrestricted cash and $1.3 billion of undrawn capacity on the 2024 Unsecured Revolver[238]. - The company has a $2.0 billion unsecured revolving credit facility with an extended maturity date of May 1, 2029, and $1.3 billion of undrawn capacity as of March 31, 2025[236]. - The company issued $700 million in senior notes in November 2024 and February 2024, with interest rates of 5.65% and 6.10% respectively[233]. - The company expects to meet liquidity requirements over the next 12 months through cash on hand, cash flows from operations, and unused borrowing capacity[239]. - As of March 31, 2025, the company had $3.6 billion in fixed-rate debt and $0.8 billion in floating-rate debt outstanding[249]. - The estimated change in net income due to a 100 basis point increase in interest rates could result in a loss of $2.86 million[250]. Market Conditions - The Federal Reserve reduced the federal funds rate by 50 basis points in September 2024, followed by two additional cuts of 25 basis points each in November and December 2024[183]. - The rise in interest rates has adversely affected the U.S. office sector, leading to increased vacancies and potential defaults on Ground Leases[184]. Corporate Actions - As of March 31, 2025, approximately 14.4% of the outstanding Caret units were beneficially owned by the company's officers and employees[200]. - The company has created additional channels and products, including the Ground Lease Plus Fund and Leasehold Loan Fund, to enhance its capital pipeline[203]. - The company authorized a share repurchase program of up to $50 million, with no obligation to repurchase additional shares[232]. - The company has unfunded commitments totaling $150.3 million related to new Ground Leases or additions to existing Ground Leases as of March 31, 2025[212].

Financial Data and Key Metrics Changes - For Q1 2025, GAAP revenue was $97.7 million, net income was $29.4 million, and earnings per share (EPS) was $0.41, with a year-over-year decline in GAAP earnings primarily due to a nonrecurring loss of $1.9 million on a preferred equity investment [11][12] - The total portfolio at quarter end was $6.8 billion, with estimated unrealized capital appreciation at $8.9 billion and a ground lease-to-value (GLTV) ratio of 52% [9][15] - The portfolio currently earns a 3.7% cash yield and a 5.4% annualized yield, with an economic yield of 5.8% that can increase to 7.4% when factoring in unrealized capital appreciation [12][13][14] Business Line Data and Key Metrics Changes - The company funded a total of $20 million in Q1, consisting of $16 million in ground lease fundings and $4 million related to leasehold loans [10] - The ground lease portfolio has grown significantly, with 147 assets and an increase in multifamily ground leases from 8% at IPO to 58% today [10] Market Data and Key Metrics Changes - The company has nonbinding letters of intent (LOIs) totaling approximately $386 million for potential commitments across 11 ground leases and four loans, with a focus on affordable housing [8][9] - The GLTV increased from 49% to 52% quarter over quarter, reflecting the reappraisal of a significant portion of the office portfolio [15] Company Strategy and Development Direction - The company aims to reach a scale that unlocks full value for shareholders while expanding its customer base to provide long-term lower-cost capital [5][6] - The management is actively evaluating opportunities to address the public versus private valuation disconnect, including potential asset sales or joint ventures [21][35] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market remains volatile, there are signs of stabilization, and they are optimistic about the pipeline of deals [5][19] - The company is focused on maintaining a diversified portfolio of ground leases, which is seen as an attractive investment during market fluctuations [19][20] Other Important Information - The company ended the quarter with approximately $1.3 billion in liquidity, supported by joint venture capacity [9] - The weighted average debt maturity is approximately 19 years, with no corporate maturities due until 2027 [17] Q&A Session Summary Question: Can you provide more details on the sponsors and markets related to the LOIs? - The pipeline includes a diverse range of sponsors and markets, with a majority in multifamily, including affordable housing and market-rate construction deals [25][26] Question: What are the benefits of ground leases versus leasehold loans? - Leasehold loans provide more certainty in volatile markets and can help close transactions that may otherwise stall [27] Question: Can you quantify the closed deals from the LOIs? - The majority of the deals are expected to close this year, with timing varying based on the type of deal [32] Question: What is the company's strategy regarding potential joint ventures? - The company is considering joint ventures to unlock portfolio value and is actively seeking partners for larger transactions [50][65] Question: How does the company view the current market volatility? - Management acknowledges the ongoing volatility but sees it as an opportunity to provide certainty to customers through their capital solutions [44][75]