Safehold Inc. (SAFE): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, no-fluff breakdown of Safehold Inc.'s business model as of late 2025, and I can defintely map out the nine building blocks of their canvas for you. Honestly, their engine runs on providing low-cost, non-maturing capital to property owners, which unlocks land value and generates predictable income streams from their $\mathbf{\$7}$ billion ground lease portfolio, even as they strategically expand into Affordable Housing. I've broken down exactly who their key partners are-like that Sovereign Wealth Fund JV-where the $\mathbf{\$9.1}$ billion in estimated Unrealized Capital Appreciation sits, and what their cost structure looks like with $\mathbf{\$4.8}$ billion in total debt. Dive in below to see the precise mechanics behind this real estate finance play, from their $\mathbf{59\%}$ multifamily focus to their $\mathbf{\$96.2}$ million GAAP revenue in Q3 2025.

Safehold Inc. (SAFE) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Safehold Inc.'s ground lease engine. These aren't just names on a slide; they represent massive pools of capital and critical execution capabilities that make the model work. Honestly, the strength of these alliances dictates the pace of Safehold's growth.

The relationships with institutional capital providers are paramount. For instance, the joint venture established with a Sovereign Wealth Fund is a cornerstone of capital deployment. This partnership, focused on new ground lease acquisitions, saw the SWF commit approximately $225 million for a 45% interest, while Safehold committed $275 million for its 55% stake, totaling $500 million in initial capital for that specific vehicle. [cite: 2, 3, 4, 5 from second search] This structure helps Safehold Inc. provide accretive capital solutions to its customers. [cite: 3 from second search]

The ownership structure itself reflects deep institutional trust. As of late November 2025, Institutional Investors hold approximately 70.38% of Safehold Inc. stock. [cite: 1 from first search] Major holders include firms like BlackRock, Inc., which held over 9.47 million shares as of September 30, 2025, and Vanguard Group Inc. [cite: 10 from first search]

When it comes to securing liquidity and managing its balance sheet, commercial banks and lenders are essential. JPMorgan Chase Bank, N.A. acts as the Administrative Agent for Safehold GL Holdings LLC's revolving credit facility. [cite: 3, 5 from first search] This relationship was recently updated in December 2025 to align covenants with a new facility, which followed Safehold closing on a $400 million unsecured term loan in November 2025. [cite: 4, 11 from first search] Other key lenders involved in this facility include Bank of America, N.A., Goldman Sachs Bank USA, Mizuho Bank, Ltd., Royal Bank of Canada, and Truist Securities, Inc., all serving as Joint Bookrunners and Joint Lead Arrangers for that loan. [cite: 11 from first search]

Execution on the ground relies on strong relationships with real estate developers and sponsors. Safehold Inc. emphasizes repeat business, which speaks volumes about the value proposition it offers developers facing high costs and interest rates. [cite: 7, 16 from first search] A concrete example is the relationship with The Pacific Companies, which is noted as a prolific developer and a repeat Safehold customer, closing on a ground lease for an Affordable Housing community in Los Angeles in October 2025. [cite: 12, 13 from first search]

Here's a quick look at the capital and ownership structure supporting these partnerships:

The support from the institutional base is broad, involving numerous entities:

• BlackRock, Inc. held 9,473,561 shares as of 9/30/2025. [cite: 10 from first search]
• Vanguard Group Inc. held 7,599,061 shares as of 9/30/2025. [cite: 10 from first search]
• Msd Capital, L.P. held 5,782,745 shares as of 9/30/2025. [cite: 10 from first search]
• T. Rowe Price Investment Management, Inc. held 4,225,903 shares as of 9/30/2025. [cite: 10 from first search]
• Jpmorgan Chase & Co. held 1,411,158 shares as of 9/30/2025. [cite: 10 from first search]

The recent unsecured term loan, which increased Safehold's liquidity to $1.3 billion, underscores the importance of these banking relationships. [cite: 11 from first search] That loan has a potential maturity date set for November 15, 2030. [cite: 4 from first search]

Safehold Inc. (SAFE) - Canvas Business Model: Key Activities

You're looking at the core engine of Safehold Inc. as of late 2025, focusing on what the company actually does day-to-day to generate its recurring income and capital appreciation. It's all about deploying capital into long-dated land ownership.

Origination and funding of new ground leases and leasehold loans.

Safehold Inc. is actively originating and funding new ground leases. For the third quarter of 2025, the company closed four multifamily ground leases totaling $42 million. These Q3 originations carried a weighted average economic yield of 7.3%. Furthermore, through the beginning of the fourth quarter of 2025, Safehold Inc. had already closed an additional four ground leases for $34 million, all within the affordable housing segment, with economic yields around 7.2-7.3%. In total funding for Q3 2025, $58 million was deployed, broken down into $33 million on new originations at a 7.4% economic yield, $15 million on preexisting commitments at a 7.5% yield, and $10 million in leasehold loans at approximately SOFR plus 499 basis points.

Active management of the $7 billion ground lease portfolio.

The core activity involves the active stewardship of the existing ground lease portfolio. This portfolio reached a Gross Book Value (GBV) of $7 billion at the end of Q3 2025. The portfolio's economics are tracked closely, showing a GAAP cash yield of 3.8% and an economic yield of 5.9%. The unrealized capital appreciation (UCA) on this portfolio was estimated at $9.1 billion. Rent coverage across the portfolio stood at 3.4 times, with the Ground Lease-to-Value (GLTV) ratio at 52%.

Here are the key portfolio metrics as of the end of Q3 2025:

Capital raising and long-term debt structuring with a 19-year weighted average maturity.

Maintaining liquidity and structuring long-term, cost-effective debt is a constant key activity. As of Q3 2025, Safehold Inc.'s liquidity position was approximately $1.1 billion. To proactively manage the debt ladder, the company closed a $400 million unsecured term loan in November 2025. This new loan has an initial maturity date of November 15, 2030, with two twelve-month extension options, offering potential financing stability through late 2032. The borrowing rate on this facility is SOFR plus 90 basis points, reflecting the company's A3/A-/A- credit ratings. The proceeds from this new debt were used to repay $227 million of secured debt that was due in 2027, which unencumbered twelve ground lease assets previously used as collateral. The company also has a $2.0 billion revolving credit facility.

Strategic expansion into new sectors like Affordable Housing, with a dedicated team in 2025.

Safehold Inc. formalized its focus on this sector by establishing a dedicated Affordable Housing team in 2025. This is a direct response to the demand for their low-cost ground lease capital as a gap filler for Low-Income Tax Credit (LIHTC) developments. In Q3 2025, all $42 million in originations were in multifamily affordable housing. More recently, in November 2025, Safehold Inc. closed six ground leases to finance LIHTC communities in Los Angeles, expected to deliver over 400 units by 2027. Separately, a ground lease was secured for another project in the San Fernando Valley, planned to deliver 275 units by 2029. Management's goal for 2025 was to double its affordable housing volume from 2024 and enter at least two new states.

The recent Affordable Housing activity includes:

• Six ground leases closed in Los Angeles with HVN Development.
• Delivery target of over 400 units by 2027 from the HVN deals.
• One ground lease closed with The Pacific Companies.
• Delivery target of 275 units by 2029 for The Pacific Companies deal.
• The dedicated Affordable Housing team started in 2025.

Safehold Inc. (SAFE) - Canvas Business Model: Key Resources

You're looking at the core assets that power Safehold Inc. (SAFE) right now, late in 2025. These aren't abstract concepts; they are hard numbers and deep, specialized knowledge built since 2017.

The foundation of Safehold's business is its extensive ground lease portfolio. As of the third quarter of 2025, this portfolio reached a significant milestone, comprising exactly 155 total assets spanning 37.2 million square feet. The aggregate gross book value (GBV) of this portfolio stood at $7.0 billion. This portfolio is strategically concentrated, with Manhattan representing the largest geographic share at 21% of the GBV, followed by Washington D.C. at 10%.

The embedded, long-term value within these land holdings is substantial. Safehold estimates its Unrealized Capital Appreciation (UCA) across the portfolio to be $9.1 billion as of Q3 2025. This UCA figure reflects the hypothetical value of the underlying real estate as if the ground leases did not exist, based partly on CBRE valuations.

Financially, Safehold maintains a strong position to support ongoing operations and new originations. The company reported a robust liquidity position of approximately $1.1 billion in cash and credit facility availability at the end of Q3 2025. To be fair, subsequent financing in November 2025 increased this reported liquidity to $1.3 billion following a new $400 million unsecured term loan.

The final, and perhaps most critical, resource is the proprietary expertise in the modern ground lease structure, which Safehold created and leads. They established this modern ground lease industry in 2017. This expertise is bolstered by their investment manager, iStar Inc., which brings nearly three decades and over $35 billion of real estate transaction experience to the table. This structure allows Safehold to offer custom-tailored ground leases that are a more efficient way for real estate owners to capitalize their projects.

Here's a quick look at the key financial metrics underpinning these resources as of September 30, 2025:

The composition of the underlying assets highlights where this expertise is deployed:

• Multifamily assets now represent 59% of the total asset count.
• The portfolio includes 21,500 multifamily units and 5,300 hotel keys.
• The portfolio's Ground Lease-to-Value (GLTV) ratio was 52% as of September 30, 2025.
• Portfolio rent coverage stood at 3.4x.
• The economic yield on new investments in Q3 2025 was 7.3%.

Finance: draft 13-week cash view by Friday.

Safehold Inc. (SAFE) - Canvas Business Model: Value Propositions

You're looking at the core benefits Safehold Inc. (SAFE) delivers to property owners, which is essentially providing capital that acts more like equity than traditional debt. This capital is low-cost and, critically, non-maturing, meaning it doesn't come with a looming refinancing deadline that can derail a project.

The cost of this capital, as reflected in the portfolio's economics, shows the value. The core ground lease portfolio generated an economic yield of 5.9% as of Q3 2025, which rises to an illustrative yield of 7.5% when including the potential upside from unrealized capital appreciation (UCA). For context on recent deployment, Safehold Inc. closed $42 million of multifamily ground leases in Q3 2025 and an additional $34 million in Q4 2025 to date.

This structure inherently helps developers achieve higher returns and lower risk. The risk mitigation is visible in the credit metrics protecting Safehold Inc.'s investment. As of Q3 2025, the portfolio rent coverage stood at 3.4 times, meaning tenant cash flow covers the ground rent by that multiple. Furthermore, the Ground Lease to Value (GLTV) ratio for the portfolio was 52%, indicating the land investment is only about half the property's total value, providing a significant equity cushion for the building owner.

Here's a quick look at how the portfolio metrics stack up:

The predictable, compounding income stream is the bond component of the model. This is secured by long-term contracts and built-in mechanisms to keep pace with inflation. The debt financing itself supports this predictability, with a weighted average maturity of 19 years as of Q3 2025, and the effective interest rate on permanent debt being 4.2%.

The inflation protection is layered, which is key for a long-duration asset like land ownership. You see this in the structure of the originated ground leases:

• Periodic rent increases based on prior years' cumulative CPI growth.
• Initial lookback year generally starts between lease year 11 and 21.
• CPI lookbacks are generally capped between 3.0% - 3.5% per annum compounded.
• For Affordable Housing deals, the structure includes a Fixed 2.0% annual increase, capped CPI resets.
• As of Q1 2025, 83% of leases had CPI-linked escalators.

Finally, Safehold Inc. helps property owners unlock the value of the land beneath commercial buildings by separating the land (owned by Safehold Inc.) from the building (owned by the developer). This separation allows the developer to access capital without selling the land outright. The embedded value in the land ownership is substantial; the estimated UCA was $9.1 billion as of Q3 2025, against a GBV of $7.0 billion. The potential upside captured by Safehold Inc.'s residual interest, referred to as Caret, is projected to return ~20-40x the original investment basis at lease expiration, based on the model. This is why the model hinges on acquiring the land at 30%-45% of the combined property value.

Finance: draft 13-week cash view by Friday.

Safehold Inc. (SAFE) - Canvas Business Model: Customer Relationships

You're focused on building relationships that last, and for Safehold Inc., that means structuring capital solutions that lock in decades of partnership. The core of their customer relationship strategy is built on the very long-term nature of the modern ground lease.

High focus on repeat customer business, which is growing consistently.

Safehold Inc. explicitly tracks and values repeat business as a key indicator of customer satisfaction and platform success. As Chairman and Chief Executive Officer Jay Sugarman noted following the third quarter of 2025, 'We're pleased to see our repeat customer business growing consistently.' This consistency is vital because each new transaction with an existing sponsor reinforces the value proposition and reduces customer acquisition friction for future deals. The company highlights an 'Established track record and repeat business with leading sponsors and lenders.'

• Repeat customer business is described as growing consistently as of Q3 2025.
• The Q1 2025 pipeline included non-binding Letters of Intent (LOIs) totaling approximately $386 million.
• This Q1 2025 pipeline included 11 ground leases for about $273 million.

Direct, dedicated engagement with sponsors and developers.

The engagement model is hands-on, dealing directly with institutional sponsors and developers who own high-quality real estate. This direct line ensures the capital solution-the ground lease-is perfectly tailored to the owner's balance sheet needs, whether for recapitalization, development, or managing debt maturities. The company closed $220 million of originations in the second quarter of 2025, which included four ground leases for $123 million, showing active deployment with customers. By Q3 2025, they closed another $42 million in ground lease originations.

The nature of the engagement is evidenced by the quality of their counterparties and the pipeline activity:

Long-term, institutional-grade relationships due to the nature of the 99-year ground lease.

The 99-year ground lease term itself dictates an institutional-grade, multi-decade relationship. This structure provides customers with non-maturing, low-cost capital, which is a fundamentally different relationship than traditional debt. For example, one analysis assumes a 99-year term when modeling the potential upside multiple, which could return ~20-40x the original investment basis at lease expiration. This longevity means Safehold Inc. is embedded in the asset's capital structure for generations, fostering deep, stable ties with the property owners.

Specialized relationship management for the Affordable Housing sector.

Safehold Inc. has made a strategic commitment to the Affordable Housing subsegment, recognizing its unique capital needs. To service this segment effectively, the company took a concrete step in 2025: they formed a dedicated Affordable Housing team. This specialized team supports relationships with developers in this complex area, such as The Pacific Companies, which is noted as a repeat client after closing deals for affordable housing communities.

• The company is focused on using its ground lease capital to help push affordable housing deals forward by serving as a "gap filler" for low-cost capital.
• Specific recent deals include closing ground leases for six Affordable Housing communities in Los Angeles with HVN Development.
• Another project involves a 275-unit Affordable Housing community in the San Fernando Valley with The Pacific Companies, scheduled for delivery in 2029.

Finance: draft 13-week cash view by Friday.

Safehold Inc. (SAFE) - Canvas Business Model: Channels

You're looking at how Safehold Inc. gets its ground lease deals and communicates with the market as of late 2025. It's all about direct sourcing and leveraging established financial connections.

Direct Sourcing and Transaction Pipeline

Safehold Inc. relies on its internal capabilities to source new ground lease transactions. The pipeline activity shows the direct result of these efforts. For instance, in the first quarter of 2025, the pipeline strengthened significantly with ~$386 million in signed non-binding Letters of Intent (LOIs).

This pipeline was diversified across asset types, showing the reach of the origination team:

This initial Q1 2025 volume was quite strong; the ground lease portion alone was already more than the total originations for 2024. By the second quarter of 2025, Safehold Inc. converted several of these into closed originations, totaling $220 million, which included four ground leases for $123 million and three leasehold loans for $97 million. Further activity showed eight multifamily ground leases totaling $76 million originated across Q3 and Q4 2025 to date.

Investment Banking and Capital Markets Access

To support its deployment of capital, Safehold Inc. maintains relationships across the broader financial ecosystem. The executive team itself reflects this deep expertise. For example, Chief Financial Officer Brett Asnas has vast experience in debt and equity capital markets transactions. Furthermore, the Board of Directors includes members with backgrounds in investment banking and capital markets. This network is key for both securing debt financing and executing equity capital markets activities, including capital recycling or joint venture formations, which the company was actively pursuing in 2025 to close the public/private valuation gap. The company maintained a strong liquidity position, reported at approximately $1.31 billion at the end of Q1 2025, which supports its ability to act on these channels.

Investor Relations for Shareholder Communication

Communicating with shareholders, potential investors, and financial analysts is centralized through the Investor Relations section of the Safehold Inc. website, www.safeholdinc.com. This channel provides the direct documentation needed for deep analysis.

• Quarterly Earnings Presentations, such as the one detailing Q3 2025 results.
• SEC Filings, including the 10-Q document.
• Conference Call Webcasts and Transcripts for earnings reviews.
• Stock Information, which as of November 28, 2025, showed a price of $13.87, with a 52-week range between a low of $12.76 and a high of $21.90.
• Access to sign up for alerts on news, presentations, filings, and events.

The platform is designed to give investors access to the latest data points, like the Estimated Unrealized Capital Appreciation, which reached $9.1 billion as of Q2 2025.

Safehold Inc. (SAFE) - Canvas Business Model: Customer Segments

You're looking at the core clients for Safehold Inc. as of late 2025. These are the real estate owners and sponsors that use the modern ground lease structure to optimize their capital stack.

Owners and developers of high-quality Multifamily properties form the largest base, representing 58% of the Unencumbered Asset Gross Book Value (GBV) as of the August 2025 Fixed Income Update. This segment is crucial to the Safehold Inc. platform.

The asset composition of the unencumbered portfolio, which reflects the underlying customer base, shows a clear concentration:

Institutional owners of Office, Industrial, Hospitality, and Life Science properties are key partners. The portfolio breakdown above shows that Office, Hospitality (Hotel), and Life Science properties together account for 39% of the unencumbered GBV, excluding Multifamily. Safehold Inc. also helps owners of Industrial properties, as these are listed among the high-quality property types they serve.

Affordable Housing developers seeking efficient capital solutions are served as a specific sub-segment within the broader Multifamily category. Safehold Inc. targets property types including Multifamily (Market, Affordable & Student Housing).

The largest group by transaction type is real estate sponsors looking for a capital event. Approximately 90% of Safehold Inc.'s business involves creating ground leases to support commercial property acquisitions, recapitalizations, or development activities. The company closed $42 million of ground lease originations in Q3 2025.

• Targeted GLTV (Ground Lease to Value) is low, around 30% to 45% of Combined Property Value (CPV).
• Targeted coverage ratio for property NOI over ground rent is between 2.0x to 4.5x.
• As of September 30, 2025, the Net Investment in sales-type leases was $3,527 million.
• Ground Lease receivables, net, stood at $1,961 million as of September 30, 2025.

You should track the pipeline of these sponsors, as Q3 2025 saw $9 million in forward commitments for new ground lease originations that were not yet funded.

Safehold Inc. (SAFE) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Safehold Inc.'s operations, which are heavily weighted toward financing the land portfolio. The cost structure is dominated by the cost of capital used to acquire these long-duration assets.

The most significant cost component is the interest expense on total debt. As of the second quarter of 2025, Safehold Inc. reported total debt of approximately $4.8 billion, excluding borrowings under the unsecured revolving credit facility. This debt finances the underlying bond component of the ground lease portfolio.

The effective interest rate on the combined debt, including mortgage debt, unconsolidated ventures, unsecured senior notes, and trust preferred securities, was reported at 4.20% as of June 30, 2025. This is the all-in stated rate before considering debt premium, discount, and deferred financing costs.

Next, let's look at the operational overhead. General and administrative expenses are relatively lean for a real estate investment company, but they include necessary compensation for specialized teams, such as the one focused on Affordable Housing. For the six months ended June 30, 2025, these expenses were partially offset by management fees included in Other Income. Specifically, for that six-month period, G&A was offset by $6.3 million in management fees. Stock-based compensation, a key part of executive and team incentives, was $6,568 thousand for the same six-month period.

The costs associated with growing the portfolio directly impact the expense structure through acquisition and transaction costs related to new ground lease originations. These costs are embedded in the investing activities section, primarily through the funding of new assets. For instance, in the third quarter of 2025, Safehold Inc. funded $33 million in new ground leases. This deployment of capital, which includes associated closing costs, is a recurring, variable cost tied directly to new business volume.

You can see the structure of these costs in the key drivers:

• Financing the $4.8 billion debt load drives the largest expense category.
• Compensation for the Affordable Housing team is tied to performance metrics, such as one executive being eligible for performance-based RSUs based on Affordable Housing Plan Commitments.
• Transaction costs are variable, directly proportional to the $77 million in new multifamily ground leases originated in Q3 and early Q4 2025.

Safehold Inc. (SAFE) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Safehold Inc. as of late 2025. The revenue streams are built around the ownership of land beneath high-quality real estate assets.

Interest income from sales-type leases is a primary component, directly tied to the balance sheet asset base. As of the end of the third quarter of 2025, the net investment of $3,527 million in sales-type leases supports this income stream.

The second major stream is operating lease income from ground lease rental payments. This is the recurring cash flow from the portfolio. The overall portfolio generates a 5.9% economic yield, with a current 3.8% cash yield on the portfolio.

Safehold Inc. also captures revenue through ground lease origination fees when new deals close. For instance, the company closed $42 million of ground lease originations in Q3 2025, with an economic yield on those new investments reported at 7.3%.

The third area of revenue generation involves property lease escalations, including periodic CPI lookbacks, which provide a built-in inflation hedge and growth to the base rent over the long lease terms.

The aggregate financial output for the period is clear:

To give you a clearer picture of the underlying asset base driving these revenues, here are the key balance sheet figures as of September 30, 2025:

• Net investment in sales-type leases: $3,527,275 thousand
• Ground lease receivables, net: $1,961,019 thousand
• Total portfolio aggregate gross book value (GBV): $7.0 billion

Also, the company is actively adding to its earning assets:

• Q3 2025 Originations: $42 million
• Q4 2025 Originations to date: $34 million

The revenue streams are directly supported by the size and yield of the ground lease portfolio. Finance: draft 13-week cash view by Friday.