Press Release
Safehold Reports Third Quarter 2024 Results
NEW YORK, October 28, 2024
Safehold Inc. (NYSE: SAFE) reported results for the third quarter 2024.
SAFE published a presentation detailing these results which can be found on its website, www.safeholdinc.com in the “Investors” section.
Highlights from the earnings announcement include:
| ¾ | Q3‘24 revenue was $90.7 million |
| ¾ | Q3‘24 net income attributable to common shareholders was $19.3 million, or $26.1 million excluding the portion of the quarter’s non-cash general provision for credit losses on prior period balances1 |
| ¾ | Q3‘24 earnings per share was $0.27, or $0.37 excluding the portion of the quarter’s non-cash general provision for credit losses on prior period balances1 |
| ¾ | Closed $104 million of new originations in Q3’24, including three new ground leases for $72 million2 and one leasehold loan for $32 million3 |
| ¾ | Purchased joint venture partner’s ownership interest in all ground leases acquired by the venture to date for a total commitment of $69 million4 |
“This was a productive quarter for Safehold, supplementing new originations with an opportunistic joint venture buyout that is expected to grow earnings and further diversify the portfolio,” said Jay Sugarman, Chairman and Chief Executive Officer. “While rate volatility remains disruptive to real estate and transaction activity, we’re seeing positive trends in
1 The Company electively enhanced its general provision for credit losses methodology during the quarter, and applied the updated methodology to prior period balances in accordance with GAAP. Of the quarter’s $7.5 million total non-cash general provision for credit losses expense, $6.8 million represents the expense related to prior period balances. See the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 for additional information.
2 Gross of joint venture partner’s 45% participation in one new investment in the third quarter in the amount of $10.7m. $72m total commitments includes $19m of forward commitments that have not yet been funded as of 9/30/24. Such funding commitments are subject to certain conditions. There can be no assurance that Safehold will fully fund these transactions.
3 Gross of leasehold loan partner’s 47% participation interest. The leasehold loan did not fund during the third quarter and there can be no assurance that Safehold will fully fund its commitment.
4 Gross purchase price of $80 million for 9 ownership interests within the joint venture, including forward commitments and purchase premium. The $69 million net purchase price excludes one investment that was originated early in the third quarter and is included within the new originations metrics.
