Safehold Inc.

Q4 GAAP revenue was $97.9 million, net income was $27.9 million, and EPS was $0.39. Excluding a nonrecurring $2.2 million loss on early extinguishment of debt, Q4 EPS was $0.42, up 15% year over year. Full-year GAAP revenue was $385.6 million, net income was $114.5 million, and EPS was $1.59; excluding nonrecurring items, full-year EPS was $1.65, up 5% year over year. For the quarter, the company closed 10 transactions for $167 million of aggregate commitment; for the full year, it closed 17 ground leases for $277 million and 4 leasehold loans for $152 million, or $429 million total. Year-end portfolio metrics included a $7.1 billion portfolio, $9.3 billion estimated UCA, 52% GLTV, and 3.4x rent coverage. Safehold ended with approximately $1.2 billion of liquidity and about $4.9 billion of debt, with no significant maturities due until 2029. The company did not provide formal next-quarter or full-year 2026 financial guidance, but management said it expects more ground lease volume in 2026 than 2025 and targeted net G&A in the high-$40 million range for 2026.

Jay Sugarman said the quarter showed progress despite continuing headwinds, particularly in the company’s effort to improve capital costs, broaden leadership, and expand affordable housing into new states and sponsors. He framed 2026 around three priorities: growing origination volume, getting Caret’s value recognized earlier, and beginning share repurchases when windows and market conditions allow. His tone was constructive but measured, repeatedly tying value creation to execution and market conditions rather than promising quick fixes.

Brett Asnas highlighted a productive quarter for both new investments and capital markets, including a $400 million unsecured term loan that refinanced the nearest maturity due in 2027 and improved liquidity. He said Safehold received an S&P upgrade to A- with a stable outlook, giving it single-A ratings from all three major agencies, and noted year-end liquidity of approximately $1.2 billion. He also walked through leverage and funding economics, saying the company was about 2.0x debt-to-equity, had $140 million of ground lease unfunded commitments and $125 million of loan commitments, and believed the margin math on new funding was the best it has been in a while. He guided to high-$40 million net G&A in 2026, up about $5 million from 2025, while noting there is still more fee income to come from Star Holdings under a contractual schedule.

Analysts pressed on whether Safehold would re-enter office investing, and management said it would be selective and was more inclined toward “other food groups,” while acknowledging core office markets like New York have strengthened and weaker markets have been marked down substantially. Questions on Caret focused on whether monetization depends on better market activity or sentiment; Jay said growing the underlying portfolio and stabilizing marks would make Caret easier to understand, and he described liquidity or sales as possible paths to recognition. Analysts also pushed on buybacks and funding, and Brett said repurchases would likely need to be done in a leverage-neutral way, with room to fund growth because leverage is around 2x and every $240 million funded adds roughly 0.1 turns. On Park Hotels, Jay said the court date is in the first quarter of 2027 and the process will cost about $7 million to get there.