NEW YORK, Nov. 12, 2024 /PRNewswire/ -- Safehold Inc. (the "Company" or "Safehold") (NYSE: SAFE) today announced that its operating company, Safehold GL Holdings LLC (the "operating company"), has priced a public offering of $400 million aggregate principal amount of its 5.650% senior notes due 2035 (the "Notes"). The Notes will mature on January 15, 2035. The offering is expected to settle on November 14, 2024, subject to the satisfaction of customary closing conditions. The Notes will be fully and uncondi ...

Core Viewpoint - Safehold Inc. has received an initial credit rating of BBB+ with a positive outlook from S&P Global Ratings, reflecting the company's strong credit profile and market position [1][2]. Group 1: Credit Rating and Outlook - S&P Global Ratings assigned Safehold an initial credit rating of BBB+ with a positive outlook [1]. - The same rating and outlook were assigned to Safehold's operating subsidiary, Safehold GL Holdings LLC [1]. - The positive rating is expected to improve Safehold's cost of capital and access to capital, enhancing long-term value for shareholders [2]. Group 2: Rationale Behind the Rating - S&P cited Safehold's focus on high-quality long-term ground leases that provide predictable and contractually growing cash flows over 99 years as a key factor for the rating [2]. - The company's relatively low leverage and well-diversified funding mix were also highlighted as strengths [2]. Group 3: 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, which operates as a real estate investment trust (REIT), aims to deliver safe, growing income and long-term capital appreciation to its shareholders [2].

Q3'24 Earnings Results Q3'24 Summary Investment Activity | --- | --- | --- | --- | |---------|-----------------------|------------------------|------------------------| | | $72m1 3 Ground Leases | $32ma 1 Leasehold Loan | New Originations $104m | | | | | | | 3 | | | 100% | | Markets | | | Multifamily | | | | | | | 29% | | | 7.2% | | GLTV3 | | | Economic Yield | JV Buyoutb $69m2 9 Ground Leasesc | --- | --- | --- | --- | --- | |---------|-------|-----------------|-------|----------------| | 4 | | 6 | | 100% ...

Core Insights - Safehold (SAFE) reported revenue of $90.71 million for the quarter ended September 2024, reflecting a 6% increase year-over-year, while EPS rose to $0.37 from $0.33 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $90.89 million, resulting in a revenue surprise of -0.21%, while EPS met the consensus estimate [1] Financial Performance Metrics - Operating lease income was reported at $16.65 million, slightly below the average estimate of $16.68 million, marking a year-over-year decline of 0.4% [3] - Interest income from sales-type leases reached $67.12 million, exceeding the estimated $66.45 million, and showing a significant year-over-year increase of 13.5% [3] - Other income was reported at $4.55 million, below the average estimate of $4.91 million, representing a substantial year-over-year decrease of 38% [3] - Interest income from related parties was $2.38 million, closely aligning with the estimated $2.39 million [3] - Net income per share (diluted) was reported at $0.27, falling short of the average estimate of $0.37 [3] Stock Performance - Over the past month, Safehold's shares have declined by 12.5%, contrasting with a 2% increase in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

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NEW YORK, Sept. 13, 2024 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE) announced today that the Company's Board of Directors has declared common stock dividends of $0.177 per share for the third quarter of 2024. The dividend represents an annualized rate of $0.708 per share and is payable on October 15, 2024 to holders of record on September 30, 2024. About Safehold: Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land ...

Safehold Inc. Notes to Consolidated Financial Statements (unaudited) Redeemable Noncontrolling Interests—In February 2022, the Company sold 108,571 Caret units (refer to Note 12) for $19.0 million to third-party investors and received a commitment from an existing shareholder (which is affiliated with one of the Company's independent directors) for the purchase of 28,571 Caret units for $5.0 million (which did not close). As part of the sale, the Company agreed to use commercially reasonable efforts to prov ...

Financial Data and Key Metrics Changes - For Q2 2024, revenue was $89.9 million, net income was $29.7 million, and earnings per share (EPS) was $0.42, an increase of $0.07 year-over-year driven by asset-related revenue growth and G&A savings [40][41] - The company reported a GLTV of 48% and rent coverage of 3.6 times at quarter end, indicating stable credit metrics [36][55] - The total portfolio was valued at $6.5 billion, with UCA estimated at $9.1 billion [36] Business Line Data and Key Metrics Changes - The company originated six multifamily ground leases totaling $98 million, with five in affordable housing and one in student housing [10] - Economic yield for new originations was reported at 7.5%, while existing commitments had a yield of 6.4% [37] - The ground lease portfolio has grown 19 times since the IPO, with a significant increase in exposure to multifamily assets from 8% to 57% [38] Market Data and Key Metrics Changes - The multifamily sector remains the primary focus, with limited opportunities in other asset types [7] - The company noted that valuations were impacted by higher cap rate assumptions and challenging office market fundamentals [8] - The top 10 markets represent approximately 70% of the portfolio, with stable GLTV and rent coverage metrics [54][55] Company Strategy and Development Direction - The company aims to capitalize on potential lower interest rates to stimulate transaction activity and enhance market engagement [6][7] - A new $2 billion unsecured revolving credit facility was established to improve financial flexibility and lower borrowing costs [12] - The company is focused on maximizing long-term value through strategic ground lease investments in well-located institutional quality assets [38][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about increasing transaction activity as market clarity improves and potential rate cuts are anticipated [49][108] - The company is positioned to leverage its liquidity to deliver value to customers and expects rate cuts to benefit both earnings and valuations [49][124] - Management emphasized the importance of maintaining a competitive edge through efficient capital structures and strong credit metrics [75][141] Other Important Information - The company has implemented an active hedging strategy, with $500 million of SOPR swaps in place, saving approximately $3 million in cash interest per quarter [35] - The G&A target for 2024 has been revised to $38 million due to recent efficiency improvements [42] - The commercial paper program was introduced as a short-term funding alternative, with potential interest savings compared to the revolving credit facility [34][62] Q&A Session Summary Question: What does the pipeline look like for the next three to six months? - Management indicated optimism about increasing transaction flow, particularly in the multifamily sector, as market conditions improve [59][80] Question: Can you comment on the impact of the commercial paper program? - The commercial paper program is viewed as a cost-saving alternative rather than additional leverage, with a full dollar-for-dollar backstop from the revolver [104] Question: How does the company decide which acquisitions go on balance sheet versus the JV? - The JV has first look at potential acquisitions, with no specific asset classes excluded, but metrics guide the decision [102] Question: What are the expectations for future origination volumes? - Management believes that the market opportunity is significant, with a target of $1 billion in annual origination as the business matures [140][141] Question: How does the company view competition in the market? - The company has not seen significant competition due to its unique structure and investment-grade ratings, which provide a competitive advantage [156]

The reported revenue represents a surprise of +0.96% over the Zacks Consensus Estimate of $89.04 million. With the consensus EPS estimate being $0.38, the EPS surprise was +7.89%. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Operating lease income: $16.69 million compared to the $16.91 million average estimate based on five analysts. The reported number repr ...

Exhibit 99.2 Q2'24 Earnings Results Q2'24 Summary Safehold Debt & Hedging Investment Activity $2.0b $750m 6 closed deals for $98m1 Revolver Commercial Paper 100% 4 3 Closed new 5-year unsecured Unsecured funding alternative revolving credit facility to current revolving credit Sponsors Multifamily Markets (replaced existing aggregate $1.85b facilities) facility with expected interest savings. $0 issued to-date (2 New) 33% 7.5% Outstanding Hedges 2.8x $500m SOFR Swap through April 2028 at -3.0% SOFR Rent Eco ...