Q2 2025 Safehold Inc Earnings Call Transcript
Key Points
- Safehold Inc (SAFE) saw better traction in the second quarter with a test program for one-stop capital solutions, combining ground leases and leasehold loans.
- New origination activity reached approximately $220 million, including $123 million for ground leases and $97 million for leasehold loans.
- The company added four new customers to its platform, with all ground leases closed with first-time sponsors.
- Safehold Inc (SAFE) has a strong liquidity position with approximately $1.2 billion available, supported by potential capacity in joint ventures.
- The portfolio generates a 5.8% economic yield, with additional upside from CPI lookbacks and unrealized capital appreciation.
- Market conditions remain challenging, with larger customers facing uncertainty and cross currents in the first half of the year.
- GAAP earnings declined year over year due to a $1.7 million increase in non-cash general provisions for credit losses.
- Macro volatility continues to be a significant factor in closing deals, impacting the pace of new business.
- The Park Hotels portfolio faces potential non-renewal of leases for two assets, which may impact income.
- The leasehold loans are not intended as long-term solutions, creating uncertainty about their future role in the business model.
Good afternoon, and welcome to Safehold's second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, today's conference is being recorded.
At this time for opening remarks and introductions, I would like to turn the conference over to Pearse Hoffman, Senior Vice President, Head of Corporate Finance. Please go ahead, sir.
Good afternoon, everyone. Thank you for joining us today for Safehold's earnings call.
On the call today, we have Jay Sugarman, Chairman and Chief Executive Officer; Brett Asnas, Chief Financial Officer; and Tim Doherty, Chief Investment Officer. This afternoon, we plan to walk through a presentation that details our second-quarter 2025 results. The presentation can be found on our website at safeholdinc.com by clicking on the investor's link.
There will be a replay of this conference call beginning at 8:00 PM Eastern time today. The dial in for the replay is 877-481-4010 with a confirmation
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