Safehold (SAFE) Q4 2025 earnings summary

Executive summary

• Achieved strong portfolio growth in Q4'25 and FY'25, with 9 new ground leases and 1 leasehold loan in Q4, and 17 new ground leases and 4 leasehold loans for the year, totaling $429 million in new investments.

• Welcomed a new President and expanded the affordable housing platform to new states and sponsors.

• S&P upgraded credit rating to A- with stable outlook, now rated A-/A3/A- by all major agencies.

• Closed a $400 million unsecured term loan, repaid 2027 debt, and enhanced liquidity and flexibility.

• Emphasized unlocking shareholder value through portfolio growth, capital allocation, and share buybacks.

Financial highlights

• Q4'25 GAAP revenue was $97.9 million, net income $27.9 million, and EPS $0.39; excluding $2.2 million nonrecurring loss, EPS was $0.42, up 15% YoY.

• FY'25 GAAP revenue was $385.6 million, net income $114.5 million, and EPS $1.59; excluding nonrecurring items, EPS was $1.65, up 5% YoY.

• Non-recurring losses included a $2.2 million loss on early extinguishment of debt in Q4'25 and $4.2 million for FY'25.

• Portfolio at year-end: $7.1 billion, with UCA at $9.3 billion.

• Closed 10 transactions in Q4, totaling $167 million in commitments.

Outlook and guidance

• Targeting increased ground lease volume in 2026 versus 2025.

• Management highlights strong underwritten rent coverage (2.9x–3.2x) and economic yield (7.3%).

• Plans to utilize the share repurchase program when market conditions are favorable.

• G&A expected to rise from low $40 million in 2025 to high $40 million in 2026 due to declining management fee income.

• Company is well positioned for 2026, citing active customer engagement and momentum in affordable housing.