Safehold (SAFE) Q4 2025 earnings summary

Executive summary

• Achieved strong progress in Q4'25 and FY'25, with portfolio growth driven by 9 new ground leases and 1 leasehold loan in Q4, and 17 new ground leases and 4 leasehold loans for the full 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-, aligning with Moody's and Fitch, enhancing financial strength and now rated single-A by all major agencies.

• Closed $400 million unsecured term loan, repaid $227 million secured debt maturing 2027, and improved liquidity and flexibility.

Financial highlights

• Q4'25 GAAP revenue: $97.9 million; net income: $27.9 million (or $30.1 million excluding $2.2 million nonrecurring loss); EPS: $0.39 (or $0.42 excluding nonrecurring loss).

• FY'25 GAAP revenue: $385.6 million; net income: $114.5 million (or $118.6 million excluding nonrecurring items); EPS: $1.59 (or $1.65 excluding nonrecurring items).

• 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 Unrealized Capital Appreciation (UCA) at $9.3 billion, up $200 million from last quarter.

Outlook and guidance

• Targeting higher ground lease volume in 2026 versus 2025, with continued focus on portfolio growth and maintaining high credit quality.

• Plans to increase Caret value recognition and utilize share repurchase program as market conditions allow.

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

• Management states the company is well positioned for 2026, citing active customer engagement, momentum in affordable housing, and improved cost of capital.