Safehold’s Strategic Moves and Strong 2025 Performance

Istar Financial US45031U8045

Safehold Inc., the parent company of iStar Financial, concluded its 2025 fiscal year with robust growth in both revenue and profit. The firm successfully expanded its portfolio and made key strategic decisions for the coming period, navigating a challenging interest rate environment. A central question for investors is whether its enhanced credit ratings and newly authorized share repurchase plan can drive further shareholder value.

The company reported the following key figures for the full year:

• Revenue: $385.6 million, representing a 5% year-over-year increase.
• Net Income: $114.5 million, or $1.59 per share.
• Portfolio Gross Book Value: $7.1 billion.
• Unrealized Capital Appreciation (UCA): Approximately $9.3 billion.

A Unified Investment-Grade Rating Achieved

A cornerstone of Safehold's 2026 strategy is its improved cost of capital, stemming from a significant credit rating upgrade. Contrary to earlier market speculation, S&P Global Ratings elevated the company's rating to 'A-' with a stable outlook on November 24, 2025. This action means Safehold now holds a consistent 'A-' level rating from all three major agencies, aligning with Moody's (A3) and Fitch (A-).

This strengthened credit profile allowed management to secure a $400 million unsecured loan during the fourth quarter. The proceeds were strategically used to refinance upcoming 2027 maturities, thereby extending the overall duration of the company's liabilities.

Priorities for 2026: Buybacks and Caret Monetization

Management has outlined clear priorities for the current year aimed at reducing the discount to book value at which the stock trades. The board has authorized a share repurchase program, which the company intends to utilize under appropriate market conditions. This move signals a heightened focus on returning capital to shareholders.

Concurrently, the company is prioritizing the monetization of its "Caret" units. This structural vehicle is designed to capture and realize the value appreciation within its ground lease portfolio. Enhancing the visibility and liquidity of these units is a top operational focus for 2026.

Safehold's shares closed the previous trading week at $15.66. Market observers view the combination of a stabilized credit rating and the share buyback authorization as providing near-term support for the equity valuation. Further catalysts are anticipated in May 2026, when the company is scheduled to release its first-quarter results.