Safehold Inc 2025年度报告

“The farther backward you can look, thefarther forward you are likely to see.” — Winston Churchill This quote captures why we have taken on the challenge of reinventing the ground leasemarket and building the largest ground lease company in the public markets. Lookingbackward, we can see the tremendous wealth creation that can accrue to ground leaseowners over the term of their leases in almost every major market in the United States.Looking forward, we are confident that similar returns are possible if we build a growingportfolio of ground leases across the top 30 markets in the U.S. While we believe the long-term direction seems historically predictable, near-termdynamics are less so, and our company has been working through a period of rising ratesand increased volatility. Owning bond-like, long-duration cash flow streams in a marketwhere long-term interest rates have risen sharply creates significant headwinds,regardless of the quality of the underlying credit. And while our share price has generally exhibited a high correlation to the pricing oflong-term bonds, there are significant differences that we believe will make an investmentin Safehold superior to comparable long-duration, high-credit alternatives. Inflation Inflation in the United States has historically averaged around 3%, yet can fluctuate overshorter periods of time. While bonds have no protection against higher inflation, Safehold’sground leases typically include some form of inflation kickers whereby ground rent adjustsupwards if inflation exceeds 2% (generally subject to a cap between 3.0% and 3.5%). Theseadjustments generally take place at 10-year intervals (generally starting between leaseyear 11 and 21) and represent a sharp difference between a portfolio of long-term bondsand Safehold’s ground lease portfolio — a difference that should grow over time. While ourfirst 10-year adjustments will not show up for a few more years, we expect they willbecome recognized as a key benefit of our portfolio, as inflation protection is acompounding benefit that can add meaningful value to our business. Capital Gains One massive difference between high-grade bonds and high-grade ground leases is theembedded capital gain that is part of the ground lease contractual structure. Since whatevervalue sits on top of the ground lease typically reverts to the ground lease owner at the endof the term, ground leases have historically enjoyed sizable capital appreciation potentialboth at maturity and, in many cases, well before maturity. There are few places in thecapital markets where you can own potentially deep-in-the-money options and have theprospect of getting potentially many more deep-in-the-money options added over time.While we are certainly happy to wait and let the compounding wealth dynamic play out infull, our goal is to find ways for the value we believe is inherent in this part of our portfolio,what we call Caret, to be more readily recognized. The Future While we can’t predict what interest rates will be in the near-term, what inflation will beover each inflation kicker determination period, or when we can capture the value of theembedded capital gain upside potential in our portfolio, we are convinced the future bodeswell for a company that owns and invests in well-located ground leases in top marketsacross the U.S. AI appears to have the potential to initiate deflationary forces across manyparts of the economy, enabling long-term interest rates to follow historical patterns ofdecline, and reverse the negative impact higher rates have had on our business. Mostimportantly, we believe the power of compounding, the entrepreneurial forces of progress,and the economic densification of cities will together drive long-term value to Safehold overthe life of our ground leases. The road is not straight, and has certainly been bumpier than we would have liked, yet thedestination remains the same and is well worth the journey. Thank you for your support, CHAIRMAN & CHIEF EXECUTIVE OFFICER 2025 Highlights 2025 was marked by continued growth of a new and valuableaffordable housing vertical, the hiring of a new president MichaelTrachtenberg, strong earnings and liquidity, and a positive creditoutcome that now has Safehold rated single A by all three major ratingagencies. Safehold’s balance sheet and scale have further solidifiedour position as the market leader in the ground lease sector. “The upgrade follows Safehold's steady asset quality and business stabilitydespite the stress in the CRE sector, which we believe demonstrates thestructural integrity of the company's ground leases and differentiates itfrom other 'BBB+' rated companies.” S&P Credit Opinion,11/24/2025 Financial Performance12540 000.0While interest rate volatility and macro headwinds continued to form achallenging environment, financial growth metrics improved year-over-year. Affordable Housing Platform Continuesto Gain Momentum Safehold’s ground lease capital meets a ne