Safehold Inc. Reports Financial Results for Q4 and Full Fiscal Year 2023
Safehold Inc. has announced its financial results for the fourth quarter and full fiscal year of 2023. The real estate investment trust reported revenue of $103.0 million for the fourth quarter, contributing to a total revenue of $352.6 million for the fiscal year.
However, the net income attributable to common shareholders for the fourth quarter was $41.2 million. After adjusting for non-recurring gains, this figure shifts to $25.5 million. For the entire year, Safehold reported a net loss of ($55.0) million for common shareholders. But after adjustments for merger and Caret related costs and non-recurring gains, the net loss turned into a profit of $96.8 million.
The earnings per share (EPS) for the fourth quarter were $0.58, or $0.36 when excluding the non-recurring gains. For the fiscal year, the EPS showed a loss of ($0.82). But after adjustments for specific costs and gains, the EPS changed to $1.45.
In 2023, Safehold completed a merger with iStar, resulting in an internalized management structure. As a result of this merger, MSD Partners became a notable shareholder and Caret investor. The company’s credit rating was upgraded to A3 by Moody’s Investors Services and placed on Positive Outlook by Fitch Ratings, Inc. Safehold also successfully raised $152 million through common equity issuance, closed an additional $500 million unsecured revolving credit facility, and established a $500 million joint venture with a leading sovereign wealth fund.
Jay Sugarman, the Chairman and Chief Executive Officer of Safehold, expressed optimism about the future and the company’s potential to expand the modern ground lease industry as transaction activity picks up. Despite uncertain economic conditions, Sugarman highlighted that 2023 was a transformational period for Safehold.
Safehold’s financial results indicate positive growth and successful strategic moves, positioning the company for future success in the real estate industry.
Analyst comment
Positive news. As a result of a merger, internalized management structure, and successful fundraising efforts, Safehold Inc. has reported positive revenue and adjusted net income, leading to an upgraded credit rating. The Chairman and CEO is optimistic about the company’s potential for expansion and growth in the real estate industry. The market is likely to respond positively to this news, with increased interest in Safehold’s stock and potential for future success.
