M&A - Safehold Inc.

Form Type: 8-K

Filing Date: 2025-05-06

Corporate Action: Merger

Type: New

Accession Number: 000109565125000014

Filing Summary: On March 31, 2023, Safehold Inc. (formerly Old SAFE) merged with iStar Inc., with iStar continuing as the surviving corporation and changing its name to Safehold. As of March 31, 2025, Safehold reported an estimated unrealized capital appreciation in its owned residual portfolio amounting to $8,854 million. The company has a detailed policy for estimating unrealized capital appreciation based on independent valuations. Ground leases held by Safehold typically provide residual rights that allow them to own the underlying properties upon lease expiration or tenant default, which contributes to their portfolio values. The company aims to track the value changes of ground lease portfolios, indicating a correlation between real estate values and inflation, informing their objective to stabilize and grow dividends over time.

Form Type: 8-K

Filing Date: 2025-02-05

Corporate Action: Merger

Type: Update

Accession Number: 000109565125000004

Filing Summary: On March 31, 2023, Safehold Inc. (previously Old SAFE) merged with iStar Inc. Following the merger, Old SAFE ceased to exist and iStar continued as the surviving corporation, adopting the name 'Safehold'. The document discusses the company's policy on estimating unrealized capital appreciation (UCA) in its ground lease portfolio, with an estimated UCA of $9,128 million as of December 31, 2024. Safehold's valuation methodology involves using independent firm CBRE for property valuations, taking into account assumptions about property occupancy and capitalization rates. The document also highlights risks involved with the UCA that may affect future realizations of its portfolio value, including tenant rights and lease agreements. Additionally, it outlines the performance incentive plan for executives based on the stock performance post-merger, with certain conditions attached to awarded units. Overall, the report emphasizes the importance of understanding the potential value of real estate holdings and the process for valuing those in relation to their ground leases.