Safehold Inc. Reports 4.8% Revenue Growth to $97.7 Million in Q1 2025

Safehold Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $97.7 million, a 4.8% increase from $93.2 million in the same period last year. The growth was primarily driven by a rise in interest income from sales-type leases, which increased to $69.7 million from $63.2 million, attributed to acquisitions and additional fundings on existing leases. Operating lease income also saw a slight increase, reaching $21.4 million compared to $21.0 million in the prior year. However, net income attributable to common shareholders decreased to $29.4 million, or $0.41 per share, down from $30.7 million, or $0.43 per share, in the previous year.

The company’s total assets as of March 31, 2025, stood at $6.93 billion, a modest increase from $6.90 billion at the end of 2024. Notably, the net investment in sales-type leases rose to $3.47 billion, up from $3.45 billion, while ground lease receivables also increased to $1.85 billion from $1.83 billion. The company’s total liabilities increased to $4.55 billion from $4.53 billion, with debt obligations rising to $4.34 billion from $4.32 billion. The increase in debt was primarily due to funding for acquisition activities and higher interest rates.

Strategically, Safehold has continued to expand its portfolio through acquisitions and joint ventures. The company entered a joint venture with a sovereign wealth fund, committing approximately $275 million for a 55% controlling interest, aimed at acquiring new ground lease investments. Additionally, Safehold acquired a ground lease from the Ground Lease Plus Fund for $38.3 million in January 2024. The company also reported a provision for credit losses of $2.3 million, reflecting current market conditions and an increase in the ground lease cost-to-value ratios.

Operationally, Safehold's portfolio remains diversified, with 41% in multifamily properties, 40% in office spaces, and 11% in hotels as of March 31, 2025. The company reported a Ground Rent Coverage ratio of 3.5x, indicating strong cash flow relative to ground lease obligations. Looking ahead, Safehold anticipates continued growth in its ground lease investments, supported by its strong credit profile and liquidity position, which includes $17 million in cash and $1.3 billion in undrawn capacity on its revolving credit facility. The company remains focused on leveraging its unique position in the ground lease market to provide stable, growing income for its investors.