Highlights

  • Total revenues for the three months ended June 30, 2026 were $114,646 thousand, compared with $93,842 thousand a year earlier.
  • Net income was $30,723 thousand, and basic and diluted earnings per share attributable to common shareholders were $0.42, against $0.39.
  • Estimated unrealized capital appreciation in the owned residual portfolio was $9,770 million at June 30, 2026, against $9,272 million.
  • Safehold is in litigation with tenants at 135 West 50th Street and the Park Hotels portfolio, with no assurance it will prevail.

Safehold (NYSE: SAFE) shares were trading at USD 11.24 on October 27, 2026, up 0.78%, with a relative volume at time of 3.33. The ground lease real estate investment trust issued $225.0 million of 6.615% senior notes in June 2026, sent a lease termination notice to a New York office tenant in May 2026, and filed its 10-Q for the quarter ended June 30, 2026 on July 31, 2026.

Safehold Inc. is incorporated in Maryland and lists its principal executive offices in New York, New York. Its primary business is the acquisition, management and capitalization of Ground Leases. As of June 30, 2026, its Ground Lease portfolio by gross book value was 44% multi-family, 39% office, 9% hotels, 6% life science and 2% mixed use and other. It also holds leasehold loans, operates two hotel properties that reverted to it on January 1, 2026, and has a master lease on the Park Hotels Portfolio. Its fiscal year ends December 31.

Second Quarter 2026 Results

For the three months ended June 30, 2026, total revenues were $114,646 thousand. Interest income from sales-type leases was $76,902 thousand, up from $70,642 thousand. Operating lease income was $15,806 thousand, down from $16,706 thousand, which the company attributed to taking over hotel operations at two hotels and a decrease in percentage rent from the Park Hotels portfolio. Hotel revenues were $15,937 thousand, with hotel expenses of $13,932 thousand.

Interest expense was $55,188 thousand, up from $51,265 thousand, which the company attributed to increased indebtedness to fund acquisition activity. General and administrative expenses were $14,343 thousand. The provision for credit losses was $270 thousand, compared with $2,350 thousand a year earlier. Earnings from equity method investments were $3,861 thousand, down from $4,912 thousand. Income tax expense was $1,394 thousand.

Net income was $30,723 thousand, compared with $27,969 thousand. Net income attributable to Safehold Inc. common shareholders was $30,155 thousand, or $0.42 per basic and diluted share, compared with $27,947 thousand, or $0.39. For the six months, net income attributable to common shareholders was $59,016 thousand, compared with $57,311 thousand. Dividends declared were $0.177 per share for the quarter.

Portfolio, Valuation and Disputes

The company estimated Combined Property Value at $16,676 million and Ground Lease Cost at $6,906 million as of June 30, 2026, and estimated unrealized capital appreciation at $9,770 million. Estimated portfolio Ground Rent Coverage was 3.4x. It noted that these estimates may not reflect current market values, including declines in office values.

The tenant at 135 West 50th Street defaulted on a forbearance agreement tied to unpaid property taxes, and Safehold sent a lease termination notice on May 11, 2026. The tenant filed a countersuit, and a temporary restraining order has been granted on the termination efforts. The company said it may experience delays in enforcing its rights and incur costs. It also sent a termination notice to the Park Hotels master lease tenant on October 22, 2025 and commenced litigation. The company said there are no assurances it will terminate the leases or prevail.

Liquidity and Capital

Net cash provided by operating activities for the six months was $26,035 thousand, compared with $36,902 thousand. Net cash used in investing activities was $208,596 thousand, and net cash provided by financing activities was $177,929 thousand. Unrestricted cash was $15.9 million, and the 2024 Unsecured Revolver had $1.4 billion of undrawn capacity.

During the six months, the company repurchased 1.1 million shares for $16.3 million, an average cost of $15.00 per share, and $33.7 million remained under its repurchase authorization. It had not sold shares under its $300.0 million at-the-market program. Unfunded Ground Lease commitments were $188.5 million, and performance-based commitments were $143.8 million. The filing gives no numerical earnings guidance. The company expects to meet liquidity requirements over the next 12 months and beyond.