Safehold Inc. (NYSE: SAFE), established in June 2017, is a uniquely positioned company that operates in the real estate business under the innovative concept of ground leasing. The firm is based in New York and stands out as the first publicly traded company to focus on acquiring and owning ground leases—essentially controlling the utilization of land and then leasing it to a building owner for an extended period of time, usually between 99 and 999 years. Safehold Inc. is managed by iStar Inc., which is a renowned real estate investment trust (REIT) with an impressive track record spanning two decades.
Investing in ground leases presents a particularly attractive opportunity because, while the building and improvements made thereon are subject to depreciation, the underlying land retains or appreciates its intrinsic value. Safehold Inc., therefore, deals in an asset class that ensures predictable, risk-adjusted returns with minimal competition and exposure to capital expenditures. As such, the company provides both a sustainable, growing income stream and capital appreciation benefits to stakeholders.
Safehold Inc. has been revolutionizing the ground lease sector by modernizing and institutionalizing the industry with its customer-centric business model. It aims to unlock the historical inefficiencies tied to ground leases by simplifying these long-duration contracts and structuring them in a manner that is beneficial to all the involved parties, including the landowners, building owners, and the company’s shareholders.
The company’s portfolio comprises diverse properties in major high growth markets across the United States, strategically positioning the firm to capitalize on future growth. These assets range from office buildings, apartments, hotels to retail and mixed-use properties, implying a wide spread in its revenue sources and geographical representation.
In an industry thriving on innovation, Safehold Inc.'s emphasis on customer service, coupled with its revolutionary business model, places it on solid footing. To keep up with the rapidly evolving industry trends, the company continues to explore new ways to redefine ground leasing and provide its clients with superior economic benefits. Safehold Inc.'s comprehensive and modern approach to real estate investing represents a profound shift in a centuries-old industry, offering a fresh perspective on commercial real estate investing.