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 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]

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]

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]

Financial Data and Key Metrics Changes - The company reported a same store NOI growth of 4.2% for the quarter, with total NOI from the commercial real estate portfolio at $33.2 million, representing a 4.6% increase from Q1 of the previous year [9][14] - Total FFO was $0.36 per share for Q1 2025, consisting of $0.06 from land operations and $0.30 from CRE and corporate, reflecting an 11.1% increase when normalized for previous adjustments [14][15] - The company raised its total FFO guidance to a range of $1.17 to $1.23 per share, while maintaining guidance for same store NOI growth of 2.4% to 3.2% [18] Business Line Data and Key Metrics Changes - The company executed 42 leases in its improved property portfolio, representing approximately 237,000 square feet of GLA and $5.6 million of ABR [11] - Leased occupancy was reported at 95.4%, up 80 basis points sequentially and 140 basis points year-over-year [12] - The company sold 90 acres of primarily agricultural zoned land, contributing approximately $0.06 million to land operations earnings for the quarter [10] Market Data and Key Metrics Changes - The company noted a significant lease at Kakaako Commerce Center, increasing leased occupancy to 95.6% at quarter end compared to 83.2% last quarter [10] - Economic occupancy at quarter end was 93.9%, up 100 basis points from the previous quarter and 160 basis points from the same period last year [12] Company Strategy and Development Direction - The company is focused on improving its CRE portfolio performance, internal and external growth, and streamlining its business and cost structure [9] - The recent ground lease transaction at Maui Business Park is seen as a strategic move to convert non-income producing land into long-term rental income, with plans for a self-storage facility [10][27] - The company aims to maintain a Hawaii-focused asset class diverse strategy while exploring opportunities in self-storage as a natural adjacency [10][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic uncertainty but emphasized strong first-quarter results and the ability to manage through challenges [21] - There have been no significant concerns from tenants regarding their operations, and leasing activity remains robust despite some discussions around tariffs [29][37] - The company is taking proactive measures to mitigate potential impacts from rising construction costs due to tariffs by pre-purchasing materials [30][55] Other Important Information - The company maintains a strong balance sheet with total liquidity of over $300 million and a net debt to adjusted EBITDA ratio of 3.6 times [16] - The first quarter dividend of $0.025 per share was paid on April 7, with a second quarter dividend declared [17] Q&A Session Summary Question: Can you provide details on the self-storage transaction and the equity investment opportunity? - The self-storage transaction involved a 75-year ground lease, converting non-income producing land into long-term rental income, with an immediate financial benefit of about a penny of FFO for 2025 [24][26] Question: What are the current concerns from tenants regarding macroeconomic conditions? - Management reported no real-time concerns from tenants, with positive metrics in tenant interest and sales [29][30] Question: How does the company view its guidance in light of strong Q1 performance? - The company maintained guidance for certain metrics due to macroeconomic uncertainties, despite a strong first quarter performance [39][41] Question: Are there any anticipated fluctuations in occupancy or FFO due to move-outs? - Management indicated no known issues that would impact occupancy or FFO significantly for the remainder of the year [59] Question: Is there potential for additional growth opportunities beyond the Maui Business Park deal? - The company is actively looking for additional growth opportunities and remains optimistic about placing capital later in the year [70]