Safehold (SAFE) - 2024 Q4 - Annual Results

Financial Performance - Q4'24 revenues decreased by 11% year-over-year to $91.9 million, while FY'24 revenues increased by 4$365.7 million[6]. - GAAP net income attributable to Safehold Inc. common shareholders for Q4'24 was $26.0 million, a 37$105.8 million[6]. - Total revenues for Q4 2024 were $91.872 million, a decrease of 10.5$103.027 million in Q4 2023[21]. - Net income attributable to Safehold Inc. common shareholders for Q4 2024 was $26.039 million, down 36.8$41.184 million in Q4 2023[26]. - Earnings per share (basic and diluted) for the year ended December 31, 2024, were $1.48, compared to a loss of$0.82 in 2023[21]. Debt and Financing - The company issued $400 million and$300 million in 10-year unsecured notes with a weighted average coupon of 5.84% and a yield to maturity of 5.19%[3]. - The company has a remaining capacity of $1.3 billion on its unsecured revolver, with total debt overview at$4.6 billion[17]. - Total debt as of December 31, 2024, was $4.64 billion, with a debt-to-equity ratio of 1.96x[21]. - The effective interest rate on debt was 4.2$6.7 billion, with an estimated unrealized capital appreciation of $9.1 billion[5]. - Total assets as of December 31, 2024, were$6.899 billion, an increase from $6.548 billion in 2023[23]. - The company’s total equity increased to$2.374 billion as of December 31, 2024, compared to $2.277 billion in 2023[23]. - The multifamily asset count increased to 85, representing 58$225 million in new originations during FY'24, including ten new ground leases for $193 million[5]. - Economic yield for new ground leases was reported at 7.3$6.7 million of interest income from sales-type leases from the Ground Lease in its consolidated statements of operations for the year ended December 31, 2024[40]. Market and Economic Conditions - The company faces risks related to changes in tax laws, regulations, and general economic conditions that could impact future performance[42]. - Market demand for ground lease capital is a critical factor influencing the company's investment strategy[42]. - The company estimates that ground rent coverage may be lower than projected due to limitations in the information used for estimates[42]. - The company is monitoring geopolitical tensions, including the war in Ukraine and conflicts in Israel, which may affect financial conditions and operating performance[42]. Mergers and Acquisitions - Safehold Inc. entered into a merger agreement with iStar Inc. on November 10, 2022, and completed the merger on March 31, 2023[43]. - The historical financial statements of Old Safehold became the historical financial statements of Safehold Inc. post-merger[43]. - The merger is expected to enhance the company's operational capabilities and market position in the ground lease sector[43]. Ratings and Outlook - The company received a credit rating upgrade from Fitch from BBB+ to A- with a stable outlook[3]. - The company’s inflation-adjusted yield assumes a long-term inflation target of 2.0% annually for the duration of the leases[38]. - Safehold's valuation assessments occur every 12 to 24 months, which may not accurately capture current market conditions[42]. - The company emphasizes that modeling and information presented are for illustrative purposes only and do not guarantee future performance[42].