Safehold Inc. Reports $9.77B Estimated Unrealized Capital Appreciation

What Happened
Safehold Inc. (the surviving company after Old SAFE merged into iStar and iStar changed its name to Safehold) announced an estimated unrealized capital appreciation (UCA) of $9,770 million for its owned residual ground-lease portfolio as of June 30, 2026. The company values the portfolio by comparing the aggregate "Combined Property Value" of properties (land + buildings/improvements as if no ground lease existed) to the aggregate cost basis of its ground leases.

Key Details

• Estimated UCA (June 30, 2026): $9,770 million.
• Combined Property Value: $16,676 million; Aggregate Ground Lease Cost: $6,906 million.
• Independent valuations: CBRE, Inc. engaged to prepare initial and periodic valuations (reports by MAI-designated appraisers); target valuation cadence ~every 12 months (no less than 24).
• Limitations disclosed: the UCA metric is non-GAAP and not audited; includes properties with unfunded commitments and unconsolidated interests; tenant rights and lease terms (e.g., early demolition rights, buyout option in year 49, certain hotel purchase rights, preemptive rights, and a third‑party ground lease expiring in 2044) may limit realization of estimated value.

Why It Matters
The $9.77B UCA is management’s estimate of potential upside in the land and improvements that revert to Safehold under long-term ground leases and is intended to inform investors about the portfolio’s potential value beyond the company’s cost basis. Safehold says tracking UCA helps assess its position in a tenant’s capital structure, the long-term quality of rent cash flows, and support for its objective to pay and grow dividends. However, the company warned the measure is not GAAP, is subject to valuation assumptions and tenant contractual limits, and generally cannot be realized in the near term because properties remain subject to long-term leases.