Safehold Inc (SAFE) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

approximately $1.1 billion of liquidity, which is further supported by the potential available capacity in our joint venture. Slide three provides a snapshot of our portfolio growth. In the third quarter, we funded a total of $58 million, including $33 million of ground lease fundings on new originations that have a 7.4% economic yield, $15 million of ground lease fundings on pre-existing commitments that have a 7.5% economic yield, and $10 million of existing leasehold loans that earn interest at an approximate rate of SOFR plus 499 basis points. At quarter end, our ground lease portfolio had 155 assets, including 92 multifamily properties, and has grown 21 times by both book value and estimated unrealized capital appreciation since our IPO. In total, the unrealized capital appreciation portfolio is comprised of approximately 37 million square feet of institutional quality commercial real estate, consisting of approximately 21,500 multifamily units, 12.6 million square feet of office, over 5,000 hotel keys, and 2 million square feet of life science and other property types. Continuing on slide four, let me detail our quarterly earnings results. For the third quarter, GAAP revenue was 96.2 million, net income was 29.3 million, and earnings per share was 41 cents. The increase in GAAP earnings year over year was primarily due to a non-recurring $6.8 million non-cash general provision taken one year ago. Excluding non-recurring items, Q3 earnings per share increased 4 cents year-over-year, or approximately 12%, primarily driven by new investment activity. On slide five, we detail our portfolio's yields. For GAAP earnings, the portfolio currently earns a 3.8% cash yield, up slightly from last quarter due to organic growth, higher yields on new investments, and a fair ma...