Financial Performance - Q3'25 revenues increased by 6% year-over-year to $96.2 million, compared to $90.7 million in Q3'24[8] - Net income attributable to Safehold Inc. rose by 51% year-over-year to $29.3 million, up from $19.3 million in Q3'24[8] - Earnings per share (EPS) increased by 52% year-over-year to $0.41, compared to $0.27 in Q3'24[8] - Net income attributable to Safehold Inc. common shareholders for Q3 2025 was $29.282 million, an increase of 51.7% compared to $19.331 million in Q3 2024[30] - EPS excluding non-recurring gains/losses for Q3 2025 was $0.41, compared to $0.37 in Q3 2024, reflecting an increase of 10.8%[30] - The company reported a net income excluding non-recurring gains/losses of $88.538 million for the nine months ended September 30, 2025, compared to $86.528 million for the same period in 2024, an increase of 2.3%[30] Portfolio and Assets - The Core Ground Lease Portfolio gross book value reached $6.9 billion, with a weighted average lease term of 91 years[10][14] - Total portfolio square footage increased to 37.2 million square feet, with 155 total assets[7] - Total assets as of September 30, 2025, reached $7.148 billion, up from $6.899 billion as of December 31, 2024, reflecting a growth of 3.6%[27] - The company's net investment in sales-type leases increased to $3.527 billion as of September 30, 2025, compared to $3.454 billion at the end of 2024, marking a rise of 2.1%[27] - Ground lease receivables increased to $1.961 billion as of September 30, 2025, compared to $1.833 billion at the end of 2024, showing a growth of 7.0%[27] - Real estate-related intangible assets, net, decreased slightly to $205.399 million as of September 30, 2025, from $208.731 million at the end of 2024, a decline of 1.1%[27] Debt and Equity - Total debt stood at $4.84 billion, with a total equity of $2.42 billion, resulting in a debt-to-equity ratio of 2.00x[22] - Total liabilities increased to $4.727 billion as of September 30, 2025, from $4.525 billion at the end of 2024, indicating a growth of 4.5%[27] - The total equity of Safehold Inc. shareholders increased to $2.390 billion as of September 30, 2025, from $2.344 billion at the end of 2024, a growth of 2.0%[27] Cash Flow and Funding - Cash and cash equivalents rose to $12.123 million, up from $8.346 million at the end of 2024, representing a significant increase of 45.5%[27] - The company funded four new ground leases totaling $42 million in Q3'25, with $33 million funded and $9 million unfunded[7] - The company has a remaining capital of $400 million for joint ventures with a leading sovereign wealth fund[4] Economic Metrics - Economic yield for Q3'25 was reported at 7.3%, slightly down from 7.4% in Q2'25[3] - Rent coverage ratio improved to 2.4x in Q3'25, compared to 2.5x in Q4'25 year-to-date[3] Strategic Initiatives - Safehold's merger with iStar was completed on March 31, 2023, resulting in the historical financial statements of Old Safehold becoming those of Safehold Inc.[47] - Safehold's GL Plus Fund targets the origination and acquisition of Ground Leases for commercial real estate projects in pre-development phases[44] Valuation and Yield - The portfolio is valued using Aggregate Gross Book Value, which reflects the historical purchase price plus accrued interest on sales-type leases[44] - The Economic Yield is calculated using projected cash flows beginning January 1, 2025, with an initial value equal to the cost of the land, incorporating contractual fixed escalators and an assumed long-term inflation rate of 2.0%[44] - 81% of the portfolio has some form of CPI lookback, while 93% has some form of inflation capture[44] - The Annualized Yield is based on GAAP treatment, assuming a 0% growth/inflation environment for existing legacy ground leases, with 16% of the portfolio earning 3.5% under this metric[44] Financial Metrics - The Debt Effective Interest Rate reflects the all-in stated interest rate over the term of debt from funding through maturity, excluding the effect of discounts and financing costs[44] - The Rent Coverage ratio is based on estimates of stabilized Property NOI, adjusted for material changes, and is used for assessing the ability to meet annualized Cash Rent obligations[44] - The Company tracks Unrealized Capital Appreciation (UCA) as the difference between the Combined Property Value (CPV) and the Aggregate Cost Basis, reflecting the safety of its position in tenant capital structures[44]

Core Insights - Safehold Inc. reported a solid performance in Q3 2025, with earnings growth and steady transaction activity, emphasizing the growth of repeat customer business and a focus on efficient capital delivery and favorable risk-adjusted returns for shareholders [1][3]. Financial Performance - Q3 2025 revenue reached $96.2 million, representing a 21% increase compared to the previous year [3]. - Net income attributable to common shareholders for Q3 2025 was $29.3 million [3]. - Earnings per share for Q3 2025 stood at $0.41 [3]. Ground Lease Activity - The company closed $42 million in ground lease originations during Q3 2025 and an additional $34 million in ground lease originations to date in Q4 2025 [3]. - Safehold has forward commitments of $9 million and $29 million for new ground lease originations in Q3 2025 and Q4 2025, respectively, which are subject to certain conditions [3]. Company Overview - Safehold Inc. is revolutionizing real estate ownership by providing innovative solutions for unlocking land value beneath buildings, having established the modern ground lease industry in 2017 [2]. - The company operates as a real estate investment trust (REIT), aiming to deliver safe, growing income and long-term capital appreciation to shareholders [2].

Core Insights - Safehold Inc. has closed ground leases for the development of six Affordable Housing communities in Los Angeles, California, focusing on Low-Income Tax Credit projects [1][2] - The developments will provide over 400 total units upon completion in 2027, targeting neighborhoods in West and Central Los Angeles and the San Fernando Valley [2] Company Overview - Safehold Inc. is a leader in the modern ground lease industry, established in 2017, and aims to unlock land value for property owners [3] - The company operates as a real estate investment trust (REIT), focusing on generating higher returns with less risk across various property types, including affordable housing [3] Strategic Partnerships - Safehold is collaborating with HVN Development, a new firm dedicated to delivering high-quality Affordable Housing in Southern California [1][2] - The company emphasizes the utility of its low-cost, 99-year ground lease capital in advancing Low-Income Housing Tax Credit projects [2]

Core Viewpoint - Investors are evaluating Safehold (SAFE) and American Homes 4 Rent (AMH) to determine which stock offers better value opportunities at present [1] Group 1: Zacks Rank and Earnings Outlook - SAFE has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while AMH has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that SAFE has an improving earnings outlook [3][4] Group 2: Valuation Metrics - SAFE has a forward P/E ratio of 9.71, significantly lower than AMH's forward P/E of 17.47 [5] - SAFE's PEG ratio is 1.41, while AMH's PEG ratio is 2.98, indicating that SAFE is expected to grow earnings at a more favorable rate relative to its price [5] - SAFE's P/B ratio is 0.47, compared to AMH's P/B of 1.54, further highlighting SAFE's undervaluation [6] Group 3: Value Grades - Based on the valuation metrics, SAFE earns a Value grade of A, while AMH receives a Value grade of C [6] - The combination of a solid earnings outlook and favorable valuation figures positions SAFE as the superior value option compared to AMH [6]

Core Insights - Safehold Inc. has closed a ground lease for an Affordable Housing community in the San Fernando Valley, Los Angeles, which will provide 275 units by 2029 [1][2] - The project is developed by The Pacific Companies, a repeat customer of Safehold, indicating a strong partnership in the Affordable Housing sector [1][2] - Safehold is expanding its presence in Affordable Housing, having established a dedicated team in 2025 to focus on this sector [2][3] Company Strategy - Safehold's ground lease capital serves as a low-cost solution to address funding gaps in Affordable Housing developments amid rising costs and interest rates [3] - The company aims to unlock land value for various property types, including multifamily and affordable housing, to generate higher returns with reduced risk [4] Market Context - There is significant unmet demand for affordable rental products in the market, which Safehold is strategically positioned to address [2] - The establishment of a dedicated Affordable Housing team reflects the company's commitment to expanding its investment in this growing sector [2]

Core Viewpoint - Safehold Inc. is set to release its financial results for the third quarter of 2025 on November 5, 2025, after market close [1] Financial Results Announcement - The earnings conference call will take place at 5:00 p.m. ET on November 5, 2025, and will be accessible via Safehold's website [2] - Dial-in information for the live call includes a U.S. number (877.545.0523) and an international number (973.528.0016) with an access code of 946297 [2] - A replay of the call will be available from 8:00 p.m. ET on November 5 through 12:00 a.m. ET on November 19, 2025, with specific dial-in numbers for replay [2] Company Overview - Safehold Inc. is innovating real estate ownership by enabling property owners to unlock the value of the land beneath their buildings [2] - The company established the modern ground lease industry in 2017 and focuses on high-quality multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties [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 (SAFE) and Essex Property Trust (ESS) are two stocks in the REIT and Equity Trust - Residential sector that are being compared for value investment opportunities [1] Valuation Metrics - SAFE has a forward P/E ratio of 9.18, while ESS has a forward P/E of 16.02, indicating that SAFE may be undervalued compared to ESS [5] - The PEG ratio for SAFE is 1.33, which is significantly lower than ESS's PEG ratio of 6.21, suggesting that SAFE offers better value when considering expected earnings growth [5] - SAFE's P/B ratio is 0.44, compared to ESS's P/B of 2.84, further highlighting SAFE's relative undervaluation [6] Investment Ratings - SAFE currently holds a Zacks Rank of 2 (Buy), while ESS has a Zacks Rank of 3 (Hold), indicating a more favorable outlook for SAFE among analysts [3] - The Value grades for SAFE and ESS are B and D, respectively, with SAFE being favored in both Zacks Rank and Style Scores models [6]

Core Viewpoint - Safehold (SAFE) is currently positioned as a more attractive investment option compared to Essex Property Trust (ESS) for value investors based on various financial metrics and earnings outlook improvements [3][7]. Valuation Metrics - SAFE has a forward P/E ratio of 9.53, significantly lower than ESS's forward P/E of 16.51, indicating that SAFE may be undervalued relative to its earnings potential [5]. - The PEG ratio for SAFE is 1.38, while ESS has a PEG ratio of 6.77, suggesting that SAFE offers better value when considering expected earnings growth [5]. - SAFE's P/B ratio stands at 0.46, compared to ESS's P/B of 2.92, further highlighting SAFE's more favorable valuation [6]. Earnings Outlook - SAFE has experienced stronger estimate revision activity, indicating a more positive earnings outlook compared to ESS [3][7]. - The Zacks Rank for SAFE is 2 (Buy), while ESS holds a Zacks Rank of 3 (Hold), reflecting a stronger investment sentiment towards SAFE [3]. Value Grades - SAFE has a Value grade of B, whereas ESS has a Value grade of D, underscoring the relative attractiveness of SAFE for value investors [6].

Core Points - Safehold Inc. has declared a common stock dividend of $0.177 per share for Q3 2025, which translates to an annualized rate of $0.708 per share, payable on October 15, 2025, to shareholders of record on September 30, 2025 [1] - Safehold is innovating real estate ownership by enabling property owners to unlock the value of the land beneath their buildings, having established the modern ground lease industry in 2017 [2] - The company operates as a real estate investment trust (REIT) and aims to provide safe, growing income and long-term capital appreciation to its shareholders [2]

Core Viewpoint - The comparison between Safehold (SAFE) and American Homes 4 Rent (AMH) indicates that SAFE currently offers better value for investors based on various financial metrics and rankings [1][3]. Group 1: Zacks Rank and Earnings Outlook - Safehold has a Zacks Rank of 2 (Buy), while American Homes 4 Rent has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for SAFE [3]. - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, indicating an improving earnings outlook for SAFE [3]. Group 2: Valuation Metrics - SAFE has a forward P/E ratio of 10.18, significantly lower than AMH's forward P/E of 18.66, indicating that SAFE may be undervalued [5]. - The PEG ratio for SAFE is 1.48, while AMH's PEG ratio is 2.93, suggesting that SAFE has a more favorable valuation relative to its expected earnings growth [5]. - SAFE's P/B ratio is 0.49, compared to AMH's P/B of 1.64, further indicating that SAFE is trading at a lower valuation relative to its book value [6]. Group 3: Value Grades - SAFE has earned a Value grade of B, while AMH has a Value grade of D, highlighting the relative attractiveness of SAFE for value investors [6]. - The combination of Zacks Rank and Style Scores indicates that SAFE stands out as the better investment option compared to AMH [6].