Safehold Inc. reported its financial results for the first quarter of 2026, revealing total revenues of $110.9 million, a 13.5% increase from $97.7 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 $75.0 million from $69.7 million, alongside the introduction of hotel revenues amounting to $9.9 million following the company's acquisition of two hotel properties on January 1, 2026. However, operating lease income saw a decline to $20.2 million from $21.4 million, attributed to the transition of hotel operations and a decrease in percentage rent from the Park Hotels portfolio.
The company's net income for the quarter was $28.9 million, slightly down from $29.4 million in the prior year, resulting in earnings per share of $0.40, unchanged from the previous year. Total costs and expenses rose to $85.3 million from $72.4 million, largely due to increased interest expenses and the costs associated with hotel operations. Interest expense increased to $53.5 million from $50.4 million, reflecting higher debt levels to support acquisition activities.
In terms of strategic developments, Safehold Inc. has expanded its operational scope by integrating hotel operations into its business model, which now includes a dedicated "Hotel Operations" segment. This shift is part of a broader strategy to diversify revenue streams and enhance growth potential. The company also reported a significant increase in its net investment in sales-type leases, which rose to $3.6 billion from $3.6 billion at the end of 2025, reflecting ongoing acquisition activity.
Operationally, Safehold's total assets increased to $7.4 billion as of March 31, 2026, up from $7.2 billion at the end of 2025. The company’s debt obligations also rose to $4.7 billion, compared to $4.6 billion previously, indicating a continued reliance on debt financing to support its growth initiatives. The company maintained a strong liquidity position with $19.3 million in cash and $1.1 billion of undrawn capacity on its revolving credit facility.
Looking ahead, Safehold Inc. remains focused on expanding its portfolio of ground leases and enhancing its operational capabilities in the hotel sector. The company anticipates that its strategic initiatives will position it well to navigate the current economic landscape, characterized by rising interest rates and evolving market conditions. The management expressed confidence in the long-term growth potential of its ground lease investments, which are expected to provide stable income and capital appreciation over time.
About Safehold Inc.
Safehold Inc. is a real estate investment company specializing in acquiring, managing, and capitalizing ground leases on commercial properties across major U.S. markets. Its portfolio includes diversified property types, offering long-term, inflation-linked income streams with potential for capital appreciation. The company leverages lease structures with built-in growth features, residual land rights, and strategic origination channels to generate risk-adjusted returns for shareholders.
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