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]

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 (UCA) 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 with a 6.7% economic yield 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 six of the ground leases focused on affordable housing [8][9] - The GLTV increased from 49% to 52% quarter over quarter, reflecting the revaluation of the office portfolio [15] Company Strategy and Development Direction - The company aims to reach a scale that unlocks the full value of the business for shareholders while expanding its customer base to provide long-term lower-cost capital [5][6] - The management is focused on capital recycling and evaluating opportunities to address the public versus private valuation disconnect [35][21] 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 [19][62] - The management expressed a cautious optimism regarding the ability to close deals, emphasizing the importance of controlling the entire capital stack [75][76] Other Important Information - The company has approximately $1.3 billion of liquidity and a well-structured capital base with no near-term maturities [17][20] - The company is rated A3 by Moody's, A- by Fitch, and BBB+ by S&P, with ongoing discussions to improve its credit rating [17][80] 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 existing deals and construction projects [25][26] Question: What are the benefits of ground leases versus leasehold loans? - Leasehold loans provide more certainty in volatile markets and can help kickstart transactions that are stalled [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][33] Question: What is the company's strategy regarding potential joint ventures? - The company is considering joint ventures to unlock value from its existing portfolio while also focusing on new transactions [65][66] Question: How does the company view the current market volatility? - Management acknowledged the ongoing volatility but noted that it has tightened, allowing sponsors to make clearer long-term decisions [44][62] Question: What is the conversation like with S&P regarding credit ratings? - The company is in dialogue with S&P and aims to demonstrate its stability and prudent capital management to achieve a higher rating [80]

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, reflecting a decline in GAAP earnings year over year primarily due to a nonrecurring $1.9 million loss on a preferred equity investment [11][12] - Excluding the one-time loss, Q1 EPS increased slightly year over year, driven by higher net earnings on investment fundings and percentage rent [12] - The portfolio currently earns a 3.7% cash yield and a 5.4% annualized yield, with an economic yield of 5.8% [12][13] Business Line Data and Key Metrics Changes - The total portfolio at quarter end was $6.8 billion, with an estimated GLTV of 52% and rent coverage of 3.5 times [9][15] - 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 20 times by both book value and estimated unrealized capital appreciation since the IPO, with 85 multifamily ground leases now comprising 58% of the portfolio [10] Market Data and Key Metrics Changes - The company has nonbinding LOIs totaling approximately $386 million for potential commitments across 11 ground leases and four loans, with six of the ground leases focused on affordable housing [7][9] - The portfolio GLTV increased from 49% to 52% quarter over quarter, reflecting the largest office revaluation quarter [14][15] Company Strategy and Development Direction - The company aims to reach a scale that unlocks the full value of the business for shareholders while expanding the customer base that can benefit from long-term lower-cost capital [4][5] - The management is focused on capital recycling and evaluating opportunities to address the public versus private valuation disconnect [35][21] Management's Comments on Operating Environment and Future Outlook - The management noted that while the market remains volatile, there are signs of stabilization, and they are optimistic about the pipeline of deals [6][19] - The management expressed confidence in the ability to close the majority of the deals in the pipeline within the year, despite the challenges posed by market conditions [31][61] Other Important Information - The company ended the quarter with approximately $1.3 billion of liquidity, supported by potential available capacity in joint ventures [9][17] - The company has a weighted average debt maturity of approximately 19 years and 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 nonbinding LOIs? - The pipeline includes a robust mix of multifamily deals, with diverse locations across the West Coast, Southeast, Northeast, and Midwest [25][26] Question: What are the benefits of ground leases versus leasehold loans? - Leasehold loans provide more certainty in volatile markets and can help kickstart transactions that are stalled [27] Question: Can you quantify the closed deals from the LOIs? - The majority of the deals in the pipeline are expected to close this year, with timing varying based on construction versus recap deals [31] Question: What is the company's strategy regarding joint ventures? - The company is exploring opportunities for joint ventures to unlock value from the existing portfolio while focusing on larger scale deals with current partners [65][66] Question: How does the company view the current market volatility? - The management acknowledged ongoing volatility but noted that it has tightened, allowing sponsors to make clearer long-term capital decisions [44][61] Question: What is the outlook for S&P ratings? - The company is in dialogue with S&P and aims to achieve a third single A rating through prudent capital management and continued deal origination [82]

Core Insights - Safehold (SAFE) reported revenue of $97.68 million for Q1 2025, marking a year-over-year increase of 4.8% and exceeding the Zacks Consensus Estimate by 1.94% [1] - The company's EPS for the same quarter was $0.44, slightly up from $0.43 a year ago, with an EPS surprise of 2.33% over the consensus estimate [1] Financial Performance Metrics - Operating lease income was reported at $21.38 million, surpassing the average estimate of $20.68 million, reflecting a year-over-year increase of 1.8% [4] - Other income decreased to $4.30 million, below the average estimate of $4.93 million, representing a significant year-over-year decline of 35.2% [4] - Interest income from sales-type leases was $69.66 million, slightly above the average estimate of $69.35 million, with a year-over-year increase of 10.2% [4] - Interest income from related parties was reported at $2.33 million, slightly below the average estimate of $2.40 million, showing a year-over-year decrease of 1% [4] - The diluted net income per share was $0.41, compared to the estimated $0.43, indicating a shortfall against analyst expectations [4] Stock Performance - Over the past month, Safehold's shares have returned -6%, contrasting with the Zacks S&P 500 composite's increase of 11.5% [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 Performance - Revenues for Q1'25 reached $97.7 million, a 5% increase compared to $93.2 million in Q1'24 [11] - GAAP Net Income attributable to Safehold Inc common shareholders was $29.4 million in Q1'25, a 4% decrease from $30.7 million in Q1'24 [11] - Excluding non-recurring gains and losses, Net Income attributable to Safehold Inc common shareholders was $31.3 million in Q1'25, a 2% increase from $30.7 million in Q1'24 [11] - Earnings Per Share (EPS) on a GAAP basis decreased by 5% year-over-year, from $0.43 in Q1'24 to $0.41 in Q1'25, while EPS excluding non-recurring items increased by 1% from $0.43 to $0.44 [11] Portfolio and Investment Activity - The company's total portfolio aggregate GBV (Gross Book Value) is $6.8 billion, with an estimated Unrealized Capital Appreciation (UCA) of $8.9 billion [5] - The company has $1.3 billion available in cash and credit facility [5] - The company has $400 million remaining for a joint venture with a leading sovereign wealth fund ($220 million from SAFE, $180 million from the partner) [5] - The company's core ground lease portfolio has a gross book value of $6.8 billion with a weighted average lease term of 91 years [15] - The company's portfolio has grown significantly since its IPO, with a 20x increase in estimated UCA and a 20x increase in portfolio size [8] Portfolio Metrics and Diversification - The company's portfolio consists of 36.0 million square feet, including 17.7 million square feet in multifamily properties and 12.5 million square feet in office properties [9] - Multifamily assets account for 41% of the company's GBV, with an average rent coverage of 3.7x and a GLTV (Ground Lease to Value) of 38% [21] - Office assets account for 40% of the company's GBV, with an average rent coverage of 3.2x and a GLTV of 69% [21]

[Q1'25 Executive Summary](index=2&type=section&id=Q1%2725%20Executive%20Summary) Safehold Inc. engaged in significant new investment activity and maintained strong portfolio metrics with substantial remaining capital for future growth [Investment Activity](index=2&type=section&id=Investment%20Activity) Safehold Inc. engaged in non-binding Letters of Intent (LOIs) for new investments totaling approximately $386 million in Q1'25, primarily in ground leases and leasehold loans across 8 markets and 11 sponsors Investment Activity Details | Investment Activity | Details | | :------------------ | :------ | | Non-Binding LOIs | 11 Ground Leases, 4 Leasehold Loans | | Ground Lease Value | ~$273 million | | Leasehold Loan Value| ~$113 million | | Markets | 8 | | Sponsors | 11 | | GLTV | ~34% | | Rent Coverage | ~2.6x | | Economic Yield | ~7.3% | [Portfolio Metrics & Capital Sources](index=2&type=section&id=Portfolio%20Metrics%20%26%20Capital%20Sources) The total portfolio's aggregate Gross Book Value (GBV) to estimated Unrealized Capital Appreciation (UCA) ratio is 52% / 3.5x, with a GLTV of $1.3 billion and Rent Coverage of $400 million. The company has $400 million remaining capital for a JV with a sovereign wealth fund - Total Portfolio Aggregate GBV / Total Portfolio Estimated UCA: **52% / 3.5x**[3](index=3&type=chunk) - GLTV / Rent Coverage: **$1.3 billion** / **$400 million**[3](index=3&type=chunk) - Remaining Capital for JV with Leading Sovereign Wealth Fund: **$400 million** (SAFE **$220 million**, Partner **$180 million**)[3](index=3&type=chunk) [Portfolio Performance & Growth](index=3&type=section&id=Portfolio%20Performance%20%26%20Growth) Safehold's portfolio has demonstrated substantial growth since its IPO, marked by increased asset value, count, and strategic Q1'25 fundings across diversified asset types [Portfolio Growth Trends](index=3&type=section&id=Portfolio%20Growth%20Trends) Safehold's portfolio has shown significant growth since its IPO, with Aggregate GBV increasing from $3.4 billion at IPO to $8.9 billion in Q1'25, and asset count growing from 12 to 147. The estimated Unrealized Capital Appreciation (UCA) has grown 20x since IPO Portfolio Growth Metrics | Metric | IPO (6/22/2017) | Q1'21 | Q1'25 | | :----- | :-------------- | :---- | :---- | | Aggregate GBV (Ground Leases) | $3.4 billion | $5.6 billion | $8.9 billion | | Asset Count | 12 | 76 | 147 | - Estimated Unrealized Capital Appreciation (UCA) growth since IPO: **20x**[6](index=6&type=chunk) [Q1'25 Fundings & Portfolio Composition](index=3&type=section&id=Q1%2725%20Fundings%20%26%20Portfolio%20Composition) In Q1'25, Safehold funded $20 million, comprising $16 million in existing ground leases (6.7% Economic Yield) and $4 million in existing leasehold loans (SOFR+386). The portfolio's total square footage is 36.0 million SF, with multifamily assets representing 41% of the portfolio by count - Q1'25 Fundings: **$20 million** (**$16 million** existing ground leases at **6.7% Economic Yield**, **$4 million** existing leasehold loan at **SOFR+386**)[6](index=6&type=chunk) Portfolio Composition by Asset Type | Asset Type | Portfolio by Count (Q1'25) | | :--------- | :------------------------- | | Multifamily| 85 (41%) | | Office | 36 (40%) | | Hotel | 16 (11%) | | Life Science| 2 (6%) | | Mixed Use & Other | 5 (2%) | | Total | 147 (100%) | - Total Portfolio Square Feet: **36.0 million SF** (Multifamily: **17.7 million SF**, Office: **12.5 million SF**, Hotel: **3.8 million SF**, Life Science: **1.3 million SF**, Other: **0.7 million SF**)[6](index=6&type=chunk)[7](index=7&type=chunk) [Financial Results](index=4&type=section&id=Financial%20Results) Safehold Inc. reported a 5% increase in Q1'25 revenues, with GAAP net income decreasing due to a non-recurring loss, while adjusted net income and EPS showed modest growth [Q1'25 Earnings Overview](index=4&type=section&id=Q1%2725%20Earnings%20Overview) Safehold Inc. reported Q1'25 revenues of $97.7 million, a 5% increase year-over-year. GAAP Net Income attributable to common shareholders decreased by 4% to $29.4 million, primarily due to a $1.9 million non-recurring loss. Excluding non-recurring items, net income increased by 2% and EPS increased by 1% to $0.44 Q1'25 Key Financial Metrics | Metric | Q1'25 | Q1'24 | Y/Y Change | | :-------------------------------------- | :---- | :---- | :--------- | | Revenues | $97.7 million| $93.2 million| 5% | | Net Income Attributable to Safehold Inc. (GAAP) | $29.4 million| $30.7 million| -4% | | Net Income Attributable to Safehold Inc. (Excluding Non-Recurring) | $31.3 million| $30.7 million| 2% | | Earnings Per Share (GAAP) | $0.41 | $0.43 | -5% | | Earnings Per Share (Excluding Non-Recurring) | $0.44 | $0.43 | 1% | | Diluted Share Count | 71.6 million | 71.2 million | 1% | - Q1 GAAP Net Income and EPS decreased Year-over-Year primarily due to a **$1.9 million non-recurring loss** in Q1'25[9](index=9&type=chunk) - EPS excluding non-recurring gains and losses increased by approximately **$0.01 Year-over-Year**[9](index=9&type=chunk) [Portfolio Yields Analysis](index=5&type=section&id=Portfolio%20Yields%20Analysis) Safehold's Core Ground Lease Portfolio demonstrates diverse yield metrics, including a 3.7% GAAP Earnings Yield and a 7.4% Inflation Adjusted Yield, reflecting its long-term value [Core Ground Lease Portfolio Yields](index=5&type=section&id=Core%20Ground%20Lease%20Portfolio%20Yields) Safehold's Core Ground Lease Portfolio, with a Gross Book Value of $6.8 billion and a 91-year weighted average lease term, exhibits various yield metrics. The GAAP Earnings Yield is 3.7%, while the Economic Yield is 5.8%, and the Forward Yield-to-Maturity is 5.9%. The Inflation Adjusted Yield is 7.4% (assuming 2.2% CPI growth) - Core Ground Lease Portfolio Gross Book Value: **$6.8 billion** on **91-Year Weighted Average Lease Term with Extension**[10](index=10&type=chunk) Core Ground Lease Portfolio Yield Metrics | Yield Metric | Value | Assumed CPI / Growth Rate | | :------------------------ | :---- | :------------------------ | | GAAP Earnings Yield | 3.7% | 0.0% | | Annualized Cash Yield | 5.4% | 0.0% | | Economic Yield | 5.8% | 2.2% | | Inflation Adjusted Yield | 7.4% | 2.2% | | Caret Adjusted Yield | 7.4% | 2.2% | | Forward Yield-to-Maturity | 5.9% | 2.0% | - Economic Yield is calculated using projected cash flows incorporating contractual fixed escalators and assumed inflation impact on variable rate escalators (e.g., CPI lookbacks, percentage rent, fair market valuations)[11](index=11&type=chunk)[42](index=42&type=chunk) [Portfolio Diversification](index=6&type=section&id=Portfolio%20Diversification) Safehold's $6.8 billion Core Ground Lease Portfolio is strategically diversified across asset types and top U.S. MSAs, with a strong presence in multifamily and key urban markets [Diversification by Asset Type and Geography](index=6&type=section&id=Diversification%20by%20Asset%20Type%20and%20Geography) Safehold's $6.8 billion Core Ground Lease Portfolio is diversified across the top 30 U.S. MSAs, with a growing focus on multifamily assets. Multifamily represents 41% of the portfolio by count, followed by Office at 40%. Manhattan is the largest market, accounting for 21% of GBV - Safehold primarily invests in the top 30 MSAs across the U.S.[13](index=13&type=chunk) Portfolio Diversification by Asset Type | Asset Type | GBV % | Count | Rent Coverage | GLTV | | :--------- | :---- | :---- | :------------ | :--- | | Multifamily| 41% | 85 | 3.7x | 38% | | Office | 40% | 36 | 3.2x | 69% | | Hotel | 11% | 16 | 3.7x | 47% | | Life Science| 6% | 2 | 4.7x | 42% | | Mixed Use & Other | 2% | 5 | 3.3x | 45% | Top 10 Markets by Gross Book Value | Top 10 Markets (by GBV %) | GBV % | Assets | Rent Coverage | GLTV | | :------------------------ | :---- | :----- | :------------ | :--- | | Manhattan | 21% | 10 | 3.0x | 67% | | Washington D.C. | 10% | 17 | 3.2x | 63% | | Boston | 8% | 3 | 3.2x | 49% | | Los Angeles | 7% | 9 | 4.0x | 41% | | San Francisco | 5% | 7 | 3.6x | 65% | [Capital Structure & Liquidity](index=7&type=section&id=Capital%20Structure%20%26%20Liquidity) Safehold maintains a robust capital structure with $4.7 billion in total debt, strong credit ratings, effective interest rate hedges, and substantial liquidity [Debt Overview & Credit Ratings](index=7&type=section&id=Debt%20Overview%20%26%20Credit%20Ratings) Safehold's total debt stands at $4.7 billion, primarily composed of unsecured notes ($2.2 billion) and secured debt ($1.5 billion). The company has no corporate maturities due until 2027 and holds strong credit ratings from Moody's (A3 Stable), S&P (BBB+ Positive), and Fitch (A- Stable) Debt Composition | Debt Type | Amount | | :---------------- | :----- | | Unsecured Notes | $2.2 billion | | Secured | $1.5 billion | | Unsecured Revolver| $712 million | | Pro-Rata Held by JVs | $0.3 billion | | Total Debt | $4.7 billion | - No corporate maturities due until 2027[20](index=20&type=chunk) Credit Ratings | Rating Agency | Rating | Outlook | | :------------ | :----- | :------ | | Moody's | A3 | Stable | | S&P | BBB+ | Positive| | Fitch | A- | Stable | [Outstanding Hedges](index=7&type=section&id=Outstanding%20Hedges) Safehold utilizes SOFR swaps and Treasury locks to manage interest rate risk. A $500 million notional SOFR swap provides approximately $1.7 million in interest savings for Q1'25. Treasury locks with a $250 million notional amount have a gain position of ~$30 million in-the-money, with $100 million unwound in April 2025 for a ~$13 million cash gain - SOFR Swap (Revolver) Notional: **$500 million**, Term: **5-years** (ends April 2028), Rate: **~3.0% SOFR**, Interest Savings: **~$1.7 million** for Q1'25[21](index=21&type=chunk) - Treasury Locks (Long-Term Debt) Notional: **$250 million**, Rate: **~4.0% 30-year treasury**, Gain Position: **~$30 million in-the-money**. **$100 million** notional unwound on 4/9/25 for **~$13 million cash gain**[21](index=21&type=chunk)[23](index=23&type=chunk) [Debt and Liquidity Metrics](index=7&type=section&id=Debt%20and%20Liquidity%20Metrics) As of Q1'25, Safehold reported total debt of $4.67 billion and total equity of $2.38 billion, resulting in a debt-to-equity ratio of 1.96x. The company maintains significant liquidity with $1.31 billion in cash and credit facility availability and $4.28 billion in unencumbered assets Q1'25 Debt and Liquidity Metrics | Metric | Q1'25 | | :---------------------------- | :--------- | | Total debt | $4.67 billion | | Total equity | $2.38 billion | | Total debt / Total equity | 1.96x | | Debt cash interest rate | 3.8% | | Debt effective interest rate | 4.2% | | Unencumbered assets | $4.28 billion | | Cash & credit facility availability | $1.31 billion | [Appendix](index=8&type=section&id=Appendix) The appendix provides detailed financial statements, portfolio reconciliations, non-GAAP earnings adjustments, information on the Caret subsidiary, UCA details, a glossary, endnotes, and forward-looking statements [Financial Statements](index=9&type=section&id=Financial%20Statements) This section provides detailed financial statements, including the Income Statement and Balance Sheet, offering a comprehensive view of Safehold Inc.'s financial position and performance for Q1'25 [Income Statement](index=9&type=section&id=Income%20Statement) This statement details Safehold Inc.'s revenues, expenses, and net income attributable to common shareholders for the first quarter of 2025 Income Statement (For the three months ended March 31, in thousands) | Income Statement (For the three months ended March 31, in thousands) | 2025 | 2024 | | :----------------------------------------------------------------- | :---------- | :---------- | | Total revenues | $97,677 | $93,213 | | Total costs and expenses | $72,376 | $68,625 | | Net income (loss) attributable to Safehold Inc. common shareholders| $29,364 | $30,728 | | Earnings (loss) per share (basic & diluted) | $0.41 | $0.43 | [Balance Sheet](index=10&type=section&id=Balance%20Sheet) This statement presents Safehold Inc.'s assets, liabilities, and equity as of March 31, 2025, providing a snapshot of its financial position Balance Sheet (As of March 31, in thousands) | Balance Sheet (As of, in thousands) | March 31, 2025 | December 31, 2024 | | :---------------------------------- | :------------- | :---------------- | | Total assets | $6,929,355 | $6,899,379 | | Net investment in sales-type leases | $3,471,953 | $3,454,953 | | Debt obligations, net | $4,341,484 | $4,317,439 | | Total liabilities | $4,548,179 | $4,525,352 | | Total equity | $2,381,176 | $2,374,027 | [Portfolio Reconciliation](index=11&type=section&id=Portfolio%20Reconciliation) The portfolio reconciliation shows the growth of key asset components from IPO to Q1'25. Gross Book Value (GBV) increased from $339 million at IPO to $6.751 billion in Q1'25, and Aggregate Gross Book Value reached $6.783 billion Portfolio Reconciliation (in thousands) | Metric (in thousands) | IPO (6/22/17) | 3/31/21 | 3/31/25 | | :-------------------- | :------------ | :---------- | :---------- | | Net investment in Sales-Type Leases | - | $1,312,000 | $3,472,000 | | Ground Lease receivables | - | $661,000 | $1,854,000 | | Gross Book Value | $339,000 | $3,292,000 | $6,751,000 | | Aggregate Gross Book Value | $339,000 | $3,395,000 | $6,783,000 | | Aggregate Cost Basis | $339,000 | $3,260,000 | $6,398,000 | [Earnings Reconciliation (Non-GAAP)](index=12&type=section&id=Earnings%20Reconciliation%20(Non-GAAP)) The earnings reconciliation highlights non-GAAP adjustments. For Q1'25, a non-recurring loss of $1.945 million was added back to GAAP net income, resulting in a non-GAAP net income of $31.309 million and EPS of $0.44, compared to $30.728 million and $0.43 in Q1'24 Earnings Reconciliation (Non-GAAP) (For the three months ended March 31, in millions) | Earnings Reconciliation (For the three months ended March 31, in millions) | 2025 | 2024 | | :----------------------------------------------------------------------- | :------ | :------ | | Net income (loss) attributable to Safehold Inc. common shareholders (GAAP) | $29.364 | $30.728 | | Add: Non-recurring (gains) / losses | $1.945 | $0.000 | | Net income excluding non-recurring (gains) / losses | $31.309 | $30.728 | | EPS excluding non-recurring (gains) / losses - basic & diluted | $0.44 | $0.43 | [Caret Subsidiary Information](index=13&type=section&id=Caret%20Subsidiary%20Information) This section details the Caret subsidiary, including its formation timeline, purpose to capture unrealized capital appreciation, and its ownership structure involving Safehold, employees, and other investors [Caret Timeline](index=13&type=section&id=Caret%20Timeline) This timeline outlines key events in the formation and evolution of the Caret subsidiary, including its purpose and investor participation - Caret subsidiary formed in **2H'18** to recognize capital appreciation above Cost Basis and created an employee performance-based incentive plan[32](index=32&type=chunk) - Series A round saw outside investor participation (**Nov'22**) and was redeemed in **April 2024**[32](index=32&type=chunk)[34](index=34&type=chunk) - MSD Partners committed to Series B round in **May'19**[32](index=32&type=chunk) [Caret Ownership](index=14&type=section&id=Caret%20Ownership) This section details the ownership structure of Caret Units, including stakes held by Safehold, employees, and other investors, and notes the redemption of the Series A Round - Safehold (NYSE: SAFE) owns **~84%** of Caret Units[35](index=35&type=chunk) - Employees (2018 Incentive Plan) own **~15%** of Caret Units[35](index=35&type=chunk) - MSD Partners + Other Family Offices own **~1%** of Caret Units[35](index=35&type=chunk) - The Series A Round was redeemed in **April 2024**, settled with funds previously held in a restricted account, with no impact to liquidity[34](index=34&type=chunk) [Unrealized Capital Appreciation (UCA) Details](index=15&type=section&id=Unrealized%20Capital%20Appreciation%20(UCA)%20Details) Unrealized Capital Appreciation (UCA) is calculated as the difference between the Combined Property Value (CPV) of the Core Ground Lease Portfolio and the Aggregate Cost Basis. UCA reflects the safety of Safehold's position, the quality of long-term cash flows, and changes in CPV. Caret units are structured to track and capture UCA upon sale of land or specified events - UCA is calculated as the difference between Combined Property Value (CPV) and Aggregate Cost Basis[42](index=42&type=chunk) - UCA provides information on the safety of Safehold's position, quality of long-term cash flows, and changes in CPV that ultimately revert to the company[42](index=42&type=chunk) - Caret units in subsidiary Safehold (d. Holdings LLC "Portfolio Holdings") are structured to track and capture UCA upon sale of land or other specified events[39](index=39&type=chunk) [Glossary](index=16&type=section&id=Glossary) This section provides definitions for key financial and portfolio terms used throughout the report, such as Aggregate Cost Basis, Annualized Cash Yield, Combined Property Value (CPV), Economic Yield, Gross Book Value (GBV), Ground Lease-to-Value (GLTV), Rent Coverage, and Unrealized Capital Appreciation (UCA) - Definitions for key terms including Aggregate Cost Basis, Annualized Cash Yield, Combined Property Value (CPV), Economic Yield, Gross Book Value (GBV), Ground Lease-to-Value (GLTV), Rent Coverage, and Unrealized Capital Appreciation (UCA)[42](index=42&type=chunk) [Endnotes](index=17&type=section&id=Endnotes) The endnotes provide additional context, methodologies, and assumptions for various metrics and statements presented in the report, including details on non-binding LOIs, CPV calculation, Rent Coverage estimates, and specific yield calculations - Endnotes clarify methodologies for non-binding LOIs, CPV calculation, and Rent Coverage estimates[44](index=44&type=chunk) - Details on how Economic Yield and Inflation Adjusted Yield incorporate assumed inflation scenarios and variable rent components[44](index=44&type=chunk) [Forward-Looking Statements & Other Matters](index=18&type=section&id=Forward-Looking%20Statements%20%26%20Other%20Matters) This section contains disclaimers regarding forward-looking statements, outlining inherent risks and uncertainties that could cause actual results to differ materially. It also clarifies the basis of presentation following the merger transaction with iStar Inc. and provides investor relations contact information - The presentation contains forward-looking statements subject to risks and uncertainties, including business conditions, availability of funds, rent adjustment clauses, tenant concentrations, and interest rate changes[45](index=45&type=chunk)[46](index=46&type=chunk) - Clarification on the basis of presentation following the merger of Safehold Inc. and iStar Inc. on March 31, 2023, where historical financial statements of Old Safe became those of Safehold Inc.[47](index=47&type=chunk)

Core Viewpoint - Safehold Inc. will release its financial results for Q1 2025 on May 6, 2025, after market close [1] - An earnings conference call will take place on May 7, 2025, at 9:00 a.m. ET to discuss these results [2] Company Overview - Safehold Inc. is transforming real estate ownership by offering a new method for owners to unlock land value 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]

Core Points - Safehold Inc. has declared a common stock dividend of $0.177 per share for Q1 2025, which annualizes to $0.708 per share, payable on April 15, 2025, to shareholders of record on March 31, 2025 [1] Company Overview - Safehold Inc. is transforming real estate ownership by offering a new method for property 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, including multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties, 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]

Financial Performance - Total revenues for 2024 increased to $365.7 million, up 3.1% from $352.6 million in 2023 [296]. - Interest income from sales-type leases rose to $264.3 million, a 12.2% increase compared to $235.5 million in 2023 [296]. - Net income attributable to Safehold Inc. common shareholders was $105.8 million in 2024, compared to a net loss of $55.0 million in 2023 [296]. - Comprehensive income attributable to Safehold Inc. was $156.1 million in 2024, compared to a comprehensive loss of $59.6 million in 2023 [300]. - Net income for the year ended December 31, 2023, was reported at $107,191,000, compared to a net loss of $54,565,000 in 2022, indicating a significant turnaround [303]. - Net income for 2024 was $106.615 million, a significant recovery from a net loss of $54.565 million in 2023 [307]. - Cash flows from operating activities increased to $37.855 million in 2024, compared to $15.391 million in 2023 [307]. Assets and Liabilities - Total assets as of December 31, 2024, reached $6.9 billion, an increase of 5.3% from $6.5 billion in 2023 [293]. - Total liabilities increased to $4.5 billion in 2024, up from $4.3 billion in 2023, reflecting a rise of 6.4% [293]. - As of December 31, 2024, the company had approximately $4.4 billion in outstanding indebtedness, including $100 million of trust preferred securities [123]. - The company had $3.6 billion in fixed-rate debt and $789 million in floating-rate debt outstanding as of December 31, 2024 [268]. - The carrying value of net investment in sales-type leases is $3,455 million, with a fair value of $3,680 million, compared to a carrying value of $3,255 million and a fair value of $3,118 million as of December 31, 2023 [374]. Cash Flow and Dividends - Cash and cash equivalents decreased to $8.3 million in 2024, down from $18.8 million in 2023 [293]. - The company paid dividends of $50.589 million to common shareholders in 2024, compared to $46.039 million in 2023 [307]. - Future distributions to shareholders will depend on various factors, including actual or anticipated results of operations and cash flows [139]. - The company’s cash flow may be insufficient to meet required principal and interest payments, exposing it to default risks [123]. Risks and Challenges - The company faces risks associated with tenant bankruptcies, which could adversely affect income and property ownership [96]. - The company relies on Property NOI reported by tenants, which may not be independently verified, potentially affecting underwriting decisions [86]. - Ground Leases with developers expose the company to risks related to property development and financing, which could materially affect operations [92]. - Future growth prospects may be adversely affected by health crises, as seen during the COVID-19 pandemic, which impacted tenant financial conditions and operational capabilities [102]. - The company may face risks related to joint venture investments, including lack of sole decision-making authority and reliance on partners' financial positions [127]. Shareholder Relations and Equity - Star Holdings owns approximately 18.9% of the outstanding shares of the company's common stock, which could influence shareholder decisions [112]. - The company’s organizational documents limit shareholder recourse and access to judicial forums, which may inhibit changes in control [135]. - The company may issue new Caret units or sell outstanding units without requiring approval from common stockholders, potentially diluting their interests [142]. - The absence of a drag-along right after a liquidity transaction could deter acquisition interest and affect the market price of common stock [156]. Management and Governance - The company has a management agreement with Star Holdings, which includes an annual management fee of $25 million for the term ended March 31, 2024, declining to $15 million for the term ended March 31, 2025 [109]. - The company faces potential conflicts of interest in its relationship with Star Holdings, which could result in decisions not aligned with shareholder interests [117]. - The Company recognized management fee income of $25.0 million for the term ended March 31, 2024, which will decline to $15.0 million for the term ended March 31, 2025 [358]. Taxation and Compliance - The company must distribute at least 90% of its REIT taxable income annually to qualify as a REIT, or it may incur U.S. federal income tax at regular corporate rates [165]. - The total current income tax expense for the year ended December 31, 2024, was $1.048 million, a decrease from $3.045 million in 2023 [365]. - The Company has a valuation allowance of $(2.052) million against its deferred tax assets as of December 31, 2024, compared to $(2.704) million in 2023 [369]. Market and Competitive Landscape - The company faces competition from various entities including commercial developers, other REITs, and financial institutions, which may adversely affect its ability to acquire and originate investments [98]. - The market price of the company's common stock may not reflect the value of the UCA in the owned residual portfolio, which is difficult to estimate [91]. Cybersecurity and Internal Controls - The company has implemented processes and internal controls to mitigate cybersecurity risks, but there is no assurance that these measures will be fully effective [101]. - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's opinion [285].

Q4'24 & FY'24 Earnings Results FY'24 Summary Capital Markets Activity | | New 5-year unsecured revolving credit | | --- | --- | | $2.0b Revolver | facility (increased credit availability, lowered cost and extended term versus prior $1.85b | | | aggregate facilities) | | | Issued $400m and $300m 10-year unsecured notes (5.84% w.a. coupon, 5.19% | | $700m Notes | w.a. yield to maturity net of $43m total | | | realized hedge gains) | | $750m | Unsecured funding program put in place as | | Commercial Paper | al ...