[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]

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]

Core Insights - The study published by Cumberland Pharmaceuticals demonstrates a 23% reduction in morphine use among older patients treated with Caldolor, indicating its efficacy and safety in pain management for this demographic [1][6][4] - The analysis highlights the unique challenges of pain management in older patients, who are often underrepresented in clinical trials, emphasizing the medical need for effective non-opioid analgesics [2][4] Study Details - The analysis involved a post-hoc subgroup analysis of data from four prospective clinical studies, including 591 patients from two placebo-controlled trials for efficacy and 1,041 patients for safety assessment [3] - Caldolor treatment resulted in a 24% reduction in pain at rest and a 20% reduction in pain with movement between 6 and 24 hours post-surgery compared to placebo [6] Safety Profile - The incidence of adverse events was significantly lower in patients treated with Caldolor (55%) compared to those receiving placebo (90%) in older patients [6] - No notable increases in gastrointestinal, renal, cardiovascular, or bleeding adverse events were observed with Caldolor treatment [6] Company Commitment - Cumberland Pharmaceuticals emphasizes its commitment to providing safe and effective pain management options, particularly for the growing aging population [5] - The company has previously published positive results regarding Caldolor's safety and pharmacokinetics in newborns, showcasing its dedication to expanding clinical applications across various age groups [5] Future Directions - Next steps for the company include outreach to healthcare providers to share the findings of this study, reinforcing the importance of Caldolor in multimodal analgesia regimens for older patients [7]