Core Viewpoint - Safehold Inc. has appointed Michael Trachtenberg as President, who brings over two decades of operational experience in the real estate industry, to oversee operations and execution across the business [1][2]. Company Leadership - Michael Trachtenberg is recognized as a sophisticated operator with expertise in institutional real estate investment management, joining Safehold at a time of growing opportunities in the modern ground lease market [2]. - The Board conducted an extensive search process, highlighting Trachtenberg's track record in driving growth and operational excellence as key factors in his appointment [2]. Strategic Vision - Trachtenberg aims to execute Safehold's strategic priorities and deliver attractive risk-adjusted returns, emphasizing the company's role as a pioneer in the ground lease market with a strong portfolio and competitive advantages [2][5]. - The company focuses on helping owners of high-quality properties generate higher returns with less risk through modern ground lease structures [5]. Background of the New President - Prior to joining Safehold, Trachtenberg served as President at Lubert-Adler, a multibillion-dollar real estate fund manager, where he was involved in various real estate initiatives and investments across major U.S. markets [2][3]. - He has a background in real estate finance and capital markets from his time as an analyst at Merrill Lynch and holds a B.S. in Accounting and Finance from New York University's Stern School of Business [3].

Core Viewpoint - Safestore has reported accelerating revenues for the fourth quarter, leading to modest share price gains, indicating strong demand in its core UK market and positive contributions from both like-for-like and new stores across all markets [2][3][5]. Financial Performance - For the full year ending 31 October, Safestore's turnover reached £234.3 million, reflecting a 4.9% increase at reported rates and a 5% increase at constant exchange rates [2]. - Fourth-quarter revenues rose 7.1% to £62 million, with growth of 6.1% at stable exchange rates [3]. - On a like-for-like basis, full-year revenues increased by 3.1% at constant currencies to £228.7 million, while fourth-quarter revenues rose 3.3% to £59.4 million [4]. UK Market Performance - The UK unit drove revenue growth, with like-for-like sales increasing by 2.4% for the financial year and 3.4% for the fourth quarter, amounting to £42.9 million and £164.8 million respectively [5]. - Average storage rates in the UK rose by 6.6% in the last quarter, contributing to a full-year growth of 2.5% [5]. International Market Performance - In France, like-for-like revenues increased by 2% in the last quarter to €13.4 million, with annual growth of 1.3% to €51.9 million [6]. - However, average storage rates in France fell by 1.8% in the fourth quarter, resulting in a full-year growth of only 0.4% [6]. Occupancy and Rates - Closing occupancy reached 6.67 million square feet as of October, up 4%, with occupancy as a percentage of current lettable area increasing to 78.1% from 78% a year earlier [7]. - Average storage rates improved by 1.2% year-on-year to £30.20, with a 4% increase in rates during the fourth quarter to £30.84 [7]. Expansion and Future Outlook - Safestore opened four new stores in the past year, increasing its total maximum letting area to 9.3 million square feet [8]. - The company has added 0.7 million square feet of new maximum letting area in the 2025 financial year, with a pipeline of 1 million square feet on track for future development [8]. - The CEO expressed optimism about continued momentum and expects full-year earnings per share to meet City forecasts of 40.3p, down from 42.3p in financial 2024 [8]. Upcoming Reports - Safestore is scheduled to release its full-year report on 15 January [9].

Core Viewpoint - Safehold Inc. has successfully closed a $400 million unsecured term loan, enhancing its liquidity and addressing upcoming debt maturities [1][2][3] Group 1: Financial Details - The new term loan has a maturity date of November 15, 2030, with two twelve-month extension options [1] - Safehold's borrowing rate is set at SOFR plus 90 basis points, supported by its current A3/A-/A- credit ratings [1] - The company has a SOFR swap at a 3.0% strike rate through April 2028 to hedge this transaction [1] Group 2: Use of Proceeds - Proceeds from the loan will be utilized for debt repayment and general corporate purposes [2] - The company has recently repaid $227 million of secured debt due in 2027, freeing up twelve ground lease assets that were previously collateral [2] - The new unsecured term loan replaces the repaid capital and increases the company's liquidity position to $1.3 billion [2] Group 3: Management Commentary - The CFO of Safehold stated that this financing is a strong outcome, increasing liquidity and addressing near-term maturity with flexible unsecured capital [3] - The company appreciates the support from its banking partners and believes its long-term balance sheet positions it well for delivering attractive capital solutions [3] Group 4: Company Overview - Safehold Inc. is focused on revolutionizing real estate ownership by providing innovative ground lease solutions [4] - The company aims to help owners of various property types generate higher returns with reduced risk, while being taxed as a real estate investment trust (REIT) [4]

Core Points - S&P Global Ratings upgraded Safehold Inc.'s credit rating to A- from BBB+ with a stable outlook, reflecting the company's strong credit profile and market position [1][2] - The upgrade is attributed to Safehold's steady asset quality and business stability, particularly in the context of challenges in the commercial real estate (CRE) sector [2] Company Overview - Safehold Inc. is a leader in the modern ground lease industry, providing innovative solutions for real estate ownership and enabling property owners to unlock land value [3] - The company focuses on high-quality multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties, aiming to deliver safe, growing income and long-term capital appreciation to shareholders [3]

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Portfolio Composition - As of September 30, 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[190]. - The top market by gross book value is Manhattan, accounting for 21% of the total, followed by Washington, DC at 10% and Boston at 8%[219]. - The portfolio is diversified with 41% in multifamily properties and 40% in office properties, indicating a balanced investment strategy[220]. Financial Performance - Total revenues for the three months ended September 30, 2025, were $96.2 million, an increase of $5.5 million compared to $90.7 million for the same period in 2024[226]. - For the nine months ended September 30, 2025, total revenues increased to $287.7 million from $273.8 million for the same period in 2024, representing a growth of 5.1%[242]. - Net income for the nine months ended September 30, 2025, was $86.7 million, compared to $80.5 million in 2024, marking an increase of 7.6%[242]. - Interest income from sales-type leases rose to $72.4 million for the three months ended September 30, 2025, up from $67.1 million in the same period in 2024, driven by new originations[228]. - Interest income from sales-type leases rose to $212.7 million for the nine months ended September 30, 2025, up from $195.6 million in 2024, an increase of 8.8%[242]. - Earnings from equity method investments decreased to $14.6 million for the nine months ended September 30, 2025, down from $18.1 million in 2024, a decline of 19.4%[254]. Expenses and Losses - General and administrative expenses for the three months ended September 30, 2025, were $13.1 million, slightly down from $13.1 million in the same period in 2024[235]. - The provision for credit losses for the nine months ended September 30, 2025, was $5.7 million, a decrease from $8.4 million in the same period of 2024, reflecting improved market conditions[252]. - Interest expense increased to $154.2 million for the nine months ended September 30, 2025, compared to $147.7 million in 2024, an increase of 4.0% due to higher indebtedness[247]. Liquidity and Capital Management - The company has a liquidity capacity of $1.1 billion under its 2024 Unsecured Revolver as of September 30, 2025, enhancing its financial flexibility[264]. - The company entered into a new $2.0 billion unsecured revolving credit facility in April 2024, replacing previous facilities and extending maturity to May 1, 2029[262]. - As of September 30, 2025, the company had $12.1 million of unrestricted cash and $1.1 billion of undrawn capacity on its 2024 Unsecured Revolver[266]. - The company expects to meet its liquidity requirements over the next 12 months through cash on hand, cash flows from operations, and unused borrowing capacity[267]. Investment Strategy - 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 over time[198]. - The company identifies a significant market opportunity in the approximately $7.0 trillion institutional commercial property market in the U.S., aiming to expand the use of Ground Leases beyond current fragmented ownership[210]. - The company has initiated new products such as the Ground Lease Plus Fund and Leasehold Loan Fund to enhance its service offerings and capture more market share[211]. Risk Factors - The company has entered into a forbearance agreement with a tenant under a significant New York office asset, which poses risks of potential losses if the tenant defaults[194]. - The rise in interest rates has adversely affected the U.S. office sector, leading to increased vacancies and reduced market liquidity, which could negatively impact the company's tenants and property values[192]. - A 100 basis point increase in interest rates could result in a decrease in net income by approximately $3.994 million[280]. - The company aims to mitigate interest rate volatility through hedging instruments, including interest rate swap agreements[277]. Cash Flow Analysis - Cash flows provided by operating activities increased to $35.495 million for the nine months ended September 30, 2025, compared to $29.957 million in 2024[268]. - Cash flows used in investing activities decreased to $(180.185) million in 2025 from $(190.897) million in 2024, primarily due to a decrease in the origination of Ground Leases[268]. - Cash flows provided by financing activities increased to $148.831 million in 2025 from $138.462 million in 2024, driven by acquisition activities in 2024[268]. Shareholder Actions - The company authorized a share repurchase program of up to $50.0 million on February 4, 2025, allowing for strategic capital management[259]. - As of September 30, 2025, approximately 14.4% of the outstanding Caret units were beneficially owned by the company's officers and employees, with 128,971 Caret units remaining available for issuance under the Caret Performance Incentive Plan[208].

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Core Insights - Safehold (SAFE) reported revenue of $96.16 million for Q3 2025, a 6% year-over-year increase, with an EPS of $0.41 compared to $0.37 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $95.33 million, resulting in a surprise of +0.87%, while the EPS also surpassed the consensus estimate of $0.40 by +2.5% [1] Revenue Breakdown - Operating lease income was reported at $16.99 million, exceeding the average estimate of $16.66 million, reflecting a year-over-year increase of +2.1% [4] - Other income amounted to $3.66 million, below the average estimate of $4.15 million, indicating a year-over-year decline of -19.7% [4] - Interest income from sales-type leases was $72.43 million, slightly below the estimated $72.96 million, but showed a year-over-year increase of +7.9% [4] Stock Performance - Over the past month, Safehold's shares have returned -3.7%, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - For Q3 2025, GAAP revenue was $96.2 million, net income was $29.3 million, and earnings per share was $0.41, with a year-over-year increase primarily due to a non-recurring $6.8 million provision taken last year [9][10] - Excluding non-recurring items, Q3 earnings per share increased by 4 cents year-over-year, or approximately 12%, driven by new investment activity [10] - The total portfolio at quarter-end was $7 billion, with an estimated unrealized capital appreciation (UCA) of $9.1 billion [7] Business Line Data and Key Metrics Changes - In Q3, the company originated four multifamily ground leases for $42 million, and in Q4 to date, an additional four leases for $34 million, all within the affordable housing subsegment [6] - The ground lease portfolio had 155 assets, including 92 multifamily properties, and has grown 21 times by both book value and estimated unrealized capital appreciation since the IPO [9] - The portfolio's cash yield was 3.8%, with an economic yield of 5.9%, which could increase to 7.5% when factoring in unrealized capital appreciation [10][11] Market Data and Key Metrics Changes - The portfolio's ground lease-to-value (GLTV) ratio remained flat at 52%, while rent coverage slightly declined from 3.5 times to 3.4 times [12] - The company ended the quarter with approximately $1.1 billion of liquidity, supported by joint venture capacity [8][13] Company Strategy and Development Direction - The company is focused on meeting customer needs through innovative products and solutions, including One Stop Capital Solutions and custom pricing [5] - There is a strong emphasis on affordable housing, with expectations for meaningful growth in this sector [6][14] - The company aims to leverage its strong balance sheet and liquidity position to pursue more aggressive strategies with customers [14] Management's Comments on Operating Environment and Future Outlook - Management noted steady activity in the ground lease business, with a recent decline in rates providing a constructive backdrop, although some deals are taking longer to close [4] - The company is optimistic about the affordable housing sector and expects it to boost origination volume [14] - Management expressed caution regarding the ongoing litigation with Park Hotels, emphasizing the importance of protecting shareholder value [15] Other Important Information - The company has an active hedging strategy, with a weighted average debt maturity of approximately 19 years and no maturities due until 2027 [12][13] - The effective interest rate on permanent debt is 4.2%, while the cash interest rate is 3.8% [14] Q&A Session Summary Question: Originations and Rent Coverage - Inquiry about the originations being primarily on the West Coast and the slight decline in rent coverage, with a request for insights on the appetite for affordable housing deals [17] - Response highlighted strong traction in affordable housing and conservative underwriting practices to ensure coverage metrics remain robust [18] Question: Park Hotels Litigation Timing - Question regarding the typical resolution timeframe for litigation [20] - Management indicated that such matters do not resolve quickly and emphasized the need to enforce contractual rights [21] Question: Breach of Contract Details - Inquiry about the specific claims of breach against Park Hotels and whether rent payments were affected [24] - Management clarified that the issue was related to maintenance standards, not rent payments [25] Question: Deal Pipeline and Economic Yields - Question about the expectations for economic yields and the impact of short-term rate changes on future deals [29] - Management noted that yields depend on the timing of closings and current market conditions, with a focus on maintaining a spread over long-term bonds [30] Question: Impact of Rent Stabilization - Inquiry about the potential impact of recent rent stabilization measures in New York City on affordable housing underwriting [51] - Management expressed concerns that reducing incentives to create supply could exacerbate housing shortages, emphasizing the need for increased supply to stabilize rents [52] Question: Multifamily Portfolio and Future Targets - Question about the current percentage of affordable housing in the multifamily portfolio and long-term targets [56] - Management indicated that the affordable housing segment is still small but growing, with aspirations for significant expansion [57] Question: New York City Multifamily Exposure - Inquiry about exposure to rent-stabilized units in New York City and the implications of potential rent freezes [63] - Management acknowledged the complexities of the New York market and the need for solutions that enhance supply rather than restrict it [64]

Q3'25 Earnings Results - Revenues reached $96.2 million, a 6% increase year-over-year, and $287.7 million year-to-date, a 5% increase[10] - GAAP Net Income was $29.3 million, a 51% increase year-over-year, and $86.6 million year-to-date, a 9% increase[10] - Earnings Per Share (EPS) was $0.41, a 52% increase year-over-year, and $1.21 year-to-date, an 8% increase[10] - Excluding non-recurring gains and losses, EPS increased by $0.04 year-over-year due to asset funding and origination[11] Portfolio Activity - Q3'25 originations included four new ground leases valued at $42 million with a 34% GLTV and a 7.3% economic yield[4,8] - Total portfolio aggregate GBV reached $7.0 billion, with an estimated unrealized capital appreciation (UCA) of $9.1 billion[5] - The company has $1.1 billion available in cash and credit facility[5] - The company has $400 million remaining capital for JV with Leading Sovereign Wealth Fund[5] Portfolio Composition - The core ground lease portfolio has a gross book value of $6.9 billion with a 91-year weighted average extended lease term[12,16] - Multifamily assets constitute 41% of the portfolio by GBV, with a rent coverage of 3.6x and a GLTV of 39%[18] - Office assets constitute 40% of the portfolio by GBV, with a rent coverage of 3.1x and a GLTV of 70%[18]