0001558370-23-012762 | 10-Q | XBRL Viewer

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Obligations Under Non-cancelable Operating Leases

Lease Commitments—Future minimum lease obligations under non-cancelable operating leases as of June 30, 2023 are as follows ($ in thousands):⁽¹⁾


2023 (remaining six months)	$	2,863
2024		5,692
2025		5,680
2026		—
2027		—
Thereafter		—
Total undiscounted cash flows		14,235
Present value discount⁽¹⁾		(1,294)
Other adjustments⁽²⁾		5,401
Lease liabilities	$	18,342

(1)

The lease liability equals the present value of the minimum rental payments due under the lease discounted at the rate implicit in the lease or the Company’s incremental secured borrowing rate for similar collateral. For operating leases, lease liabilities were discounted at the Company’s weighted average incremental secured borrowing rate for similar collateral estimated to be 5.8% and the weighted average remaining lease term is 3.1 years. The Company assumed its operating leases from iStar in connection with the Merger and therefore did not directly make any payments under its operating leases for the three months ended March 31, 2023 or the three and six months ended June 30, 2022. During the three months ended June 30, 2023, the Company made payments of $1.5 million related to its operating leases.

(2)

Other adjustments relates to a property that is majority-owned by a third party and is ground leased to the Company. The Company is obligated to pay the owner of the property $0.5 million, subject to adjustment for changes in the CPI, per year through 2044; however, the Company’s Ground Lease tenant at the property pays this expense directly under the terms of a master lease.

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party

Note 4—Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net – Related Party

The Company classifies certain of its Ground Leases as sales-type leases and records the leases within “Net investment in sales-type leases” on the Company’s consolidated balance sheets and records interest income in “Interest income from sales-type leases” in the Company’s consolidated statements of operations. In addition, the Company may enter into transactions whereby it acquires land and enters into Ground Leases directly with the seller. These Ground Leases qualify as sales-type leases and, as such, do not qualify for sale leaseback accounting and are accounted for as financing receivables in accordance with ASC 310 - Receivables and are included in “Ground Lease receivables” on the Company’s consolidated balance sheets. The Company records interest income from Ground Lease receivables in “Interest income from sales-type leases” in the Company’s consolidated statements of operations.

In July 2022, the Company, pursuant to an agreement with iStar and upon certain construction related conditions being met, acquired an existing Ground Lease from iStar for $36.4 million inclusive of closing costs and was recorded in “Net investment in sales-type leases” and “Real estate-related intangible assets, net” on the Company’s consolidated balance sheet.

In September 2022, the Company sold a Ground Lease to a third-party for $136.0 million and recognized a gain of $55.8 million in the Company’s consolidated statements of operations. $9.5 million of the gain was attributable to noncontrolling interests, of which $0.7 million was attributable to redeemable noncontrolling interests.

In May 2023, the Company entered into a joint venture with a sovereign wealth fund, which is also an existing shareholder, focused on new acquisitions for certain Ground Lease investments. The Company committed approximately $275 million for a 55% controlling interest in the joint venture and the sovereign wealth fund committed approximately $225 million for a 45% noncontrolling interest in the joint venture. Each party’s commitment is discretionary. The joint venture is a voting interest entity and the Company consolidates the joint venture in its financial statements due to its controlling interest. The Company’s joint venture partners’ interest is recorded in “Noncontrolling interests” on the Company’s consolidated balance sheets. The Company receives a management fee, measured on an asset-by-asset basis, equal to 25 basis points on invested equity for such asset for the first five years following its acquisition, and 15 basis points on invested equity thereafter. The Company will also receive a promote of 15% over a 9% internal rate of return, subject to a 1.275x multiple on invested capital. The investment period will be the earlier of 18 months and the full deployment of commitments. During the six months ended June 30, 2023, the joint venture acquired two Ground Leases for an aggregate purchase price of $38.5 million, of which $14.5 million has been funded as of June 30, 2023.

The Company’s net investment in sales-type leases were comprised of the following ($ in thousands):


	June 30, 2023		December 31, 2022
Total undiscounted cash flows	$	29,741,069	$	29,586,227
Unguaranteed estimated residual value		2,915,013		2,900,218
Present value discount		(29,487,782)		(29,379,846)
Allowance for credit losses		(336)		—
Net investment in sales-type leases⁽¹⁾	$	3,167,964	$	3,106,599

(1)	As of June 30, 2023, $6.5 million was attributable to noncontrolling interests.

The following table presents a rollforward of the Company’s net investment in sales-type leases and Ground Lease receivables for the six months ended June 30, 2023 and 2022 ($ in thousands):


	Net Investment in		Ground Lease
	Sales-type Leases		Receivables		Total
Six Months Ended June 30, 2023
Beginning balance	$	3,106,599	$	1,374,716	$	4,481,315
Impact from adoption of new accounting standard (refer to Note 3)		(351)		(199)		(550)
Origination/acquisition/fundings⁽¹⁾		33,122		97,948		131,070
Accretion		28,579		12,505		41,084
(Provision for) recovery of credit losses		15		(22)		(7)
Ending balance⁽²⁾	$	3,167,964	$	1,484,948	$	4,652,912


	Net Investment in		Ground Lease
	Sales-type Leases		Receivables		Total
Six Months Ended June 30, 2022
Beginning balance	$	2,412,716	$	796,252	$	3,208,968
Origination/acquisition/fundings⁽¹⁾		474,281		430,517		904,798
Accretion		24,684		8,975		33,659
Ending balance	$	2,911,681	$	1,235,744	$	4,147,425

(1)

The net investment in sales-type leases is initially measured at the present value of the fixed and determinable lease payments, including any guaranteed or unguaranteed estimated residual value of the asset at the end of the lease, discounted at the rate implicit in the lease. For newly originated or acquired Ground Leases, the Company’s estimate of residual value equals the fair value of the land at lease commencement.

(2)

As of June 30, 2023 and December 31, 2022, all of the Company’s net investment in sales-type leases and Ground Lease receivables were current in their payment status. As of June 30, 2023, the Company’s weighted average accrual rate for its net investment in sales-type leases and Ground Lease receivables was 5.1% and 5.4%, respectively. As of June 30, 2023, the weighted average remaining life of the Company’s 34 Ground Lease receivables was 98.5 years.

Allowance for Credit Losses—Changes in the Company’s allowance for credit losses on net investment in sales-type leases and Ground Lease receivables for the three and six months ended June 30, 2023 were as follows ($ in thousands):


	Net investment in sales-type leases
	Stabilized		Development		Unfunded
Three Months Ended June 30, 2023	Properties		Properties		Commitments		Total
Allowance for credit losses at beginning of period	$	255	$	70	$	1	$	326
Provision for credit losses⁽¹⁾		4		7		—		11
Allowance for credit losses at end of period⁽²⁾	$	259	$	77	$	1	$	337


	Ground Lease receivables
	Stabilized		Development		Unfunded
Three Months Ended June 30, 2023	Properties		Properties		Commitments		Total
Allowance for credit losses at beginning of period	$	93	$	102	$	63	$	258
Provision for (recovery of) credit losses⁽¹⁾		1		25		(3)		23
Allowance for credit losses at end of period⁽²⁾	$	94	$	127	$	60	$	281


	Net investment in sales-type leases
	Stabilized		Development		Unfunded
Six Months Ended June 30, 2023	Properties		Properties		Commitments		Total
Allowance for credit losses at beginning of period	$	—	$	—	$	—	$	—
Impact from adoption of new accounting standard (refer to Note 3)⁽³⁾		280		71		6		357
Provision for (recovery of) credit losses⁽¹⁾		(21)		6		(5)		(20)
Allowance for credit losses at end of period⁽²⁾	$	259	$	77	$	1	$	337


	Ground Lease receivables
	Stabilized		Development		Unfunded
Six Months Ended June 30, 2023	Properties		Properties		Commitments		Total
Allowance for credit losses at beginning of period	$	—	$	—	$	—	$	—
Impact from adoption of new accounting standard (refer to Note 3)⁽³⁾		102		97		84		283
Provision for (recovery of) credit losses⁽¹⁾		(8)		30		(24)		(2)
Allowance for credit losses at end of period⁽²⁾	$	94	$	127	$	60	$	281

(1)

During the three months ended June 30, 2023, the Company recorded a provision for credit losses on net investment in sales-type leases and Ground Lease receivables of $11 thousand and $23 thousand, respectively. The provision for credit losses was due primarily to a declining macroeconomic forecast since March 31, 2023. During the six months ended June 30, 2023, the Company recorded a recovery of credit losses on net investment in sales-type leases and Ground Lease receivables of $20 thousand and $2 thousand, respectively. The recovery of credit losses on net investment in leases and Ground Lease receivables was due primarily to an improving macroeconomic forecast since December 31, 2022.

(2)	Allowance for credit losses on unfunded commitments is recorded in “Accounts payable and accrued expenses” on the Company’s consolidated balance sheets.

(3)

On January 1, 2023, the Company recorded an allowance for credit losses on net investment in sales-type leases of $0.4 million and an allowance for credit losses on Ground Lease receivables of $0.2 million upon the adoption of ASU 2016-13, of which an aggregate of $0.1 million related to expected credit losses for unfunded commitments and was recorded in "Accounts payable, accrued expenses and other liabilities."

The Company’s amortized cost basis in Ground Lease receivables, presented by year of origination and by stabilized or development status, was as follows as of June 30, 2023 ($ in thousands):


	Year of Origination
	2023		2022		2021		2020		2019		Prior to 2019		Total
Ground Lease receivables
Stabilized properties	$	—	$	523,491	$	238,734	$	179,092	$	445,730	$	—	$	1,387,047
Development properties		1		63,868		34,253		—		—		—		98,122
Total	$	1	$	587,359	$	272,987	$	179,092	$	445,730	$	—	$	1,485,169

Future Minimum Lease Payments under Sales-type Leases—Future minimum lease payments to be collected under sales-type leases accounted for under ASC 842 - Leases, excluding lease payments that are not fixed and determinable, in effect as of June 30, 2023, are as follows by year ($ in thousands):


					Fixed Bumps
	Fixed Bumps				with
	with Inflation		Fixed		Percentage
	Adjustments		Bumps		Rent		Total
2023 (remaining six months)	$	49,341	$	1,117	$	292	$	50,750
2024		101,639		2,256		586		104,481
2025		103,607		2,283		586		106,476
2026		105,567		2,311		586		108,464
2027		107,475		2,339		586		110,400
Thereafter		28,577,374		583,455		99,669		29,260,498
Total undiscounted cash flows	$	29,045,003	$	593,761	$	102,305	$	29,741,069

During the three and six months ended June 30, 2023 and 2022, the Company recognized interest income from sales-type leases in its consolidated statements of operations as follows ($ in thousands):


	Net Investment		Ground
	in Sales-type		Lease
Three Months Ended June 30, 2023	Leases		Receivables		Total
Cash	$	25,168	$	12,286	$	37,454
Non-cash		14,353		6,351		20,704
Total interest income from sales-type leases	$	39,521	$	18,637	$	58,158


	Net Investment		Ground
	in Sales-type		Lease
Three Months Ended June 30, 2022	Leases		Receivables		Total
Cash	$	21,935	$	8,501	$	30,436
Non-cash		12,979		4,832		17,811
Total interest income from sales-type leases	$	34,914	$	13,333	$	48,247


	Net Investment		Ground
	in Sales-type		Lease
Six Months Ended June 30, 2023	Leases		Receivables		Total
Cash	$	50,050	$	24,090	$	74,140
Non-cash		28,575		12,505		41,080
Total interest income from sales-type leases	$	78,625	$	36,595	$	115,220


	Net Investment		Ground
	in Sales-type		Lease
Six Months Ended June 30, 2022	Leases		Receivables		Total
Cash	$	41,761	$	15,858	$	57,619
Non-cash		24,684		8,975		33,659
Total interest income from sales-type leases	$	66,445	$	24,833	$	91,278

Loans receivable, net – related party—On March 31, 2023, the Company, as lender and as administrative agent, and Star Holdings, as borrower, entered into a senior secured term loan facility in an aggregate principal amount of $115.0 million (the “Secured Term Loan Facility”) and an additional commitment amount of up to $25.0 million at Star Holding’s election (the “Incremental Term Loan Facility”, together with the Secured Term Loan Facility, the “Star Holdings Term Loan Facility”). During the three and six months ended June 30, 2023, the Company recorded $2.4 million of interest income on the Star Holdings Term Loan Facility, which is recorded in “Interest income – related party” in the Company’s consolidated statements of operations. As of June 30, 2023, the Star Holdings Term Loan Facility had a principal balance of $115.0 million and a carrying value of $112.2 million.

The Star Holdings Term Loan Facility is a secured credit facility. Borrowings under the Star Holdings Term Loan Facility bear interest at a fixed rate of 8.00% per annum, which may increase to 10.00% per annum if either (i) any loans remain outstanding under the Incremental Term Loan Facility or (ii) Star Holdings elects for interest due for any two fiscal quarters to be paid in kind. The interest rate will increase to 12.00% per annum if both (i) and (ii) in the previous sentence occur. The Star Holdings Term Loan Facility has a maturity date of March 31, 2027. The Star Holdings Term Loan Facility is secured by a first-priority perfected security pledge of all the equity interests in Star Holding’s primary real estate subsidiary. Starting the quarter that is six months after closing, within five business days after Star Holdings has delivered its unaudited quarterly financial statements, Star Holdings will apply any unrestricted cash on its balance sheet in excess of the aggregate of (i) an operating reserve; and (ii) $50 million, to prepay its Star Holdings Term Loan Facility or alternatively, with the consent of Company, Star Holdings may apply such cash to prepay its margin loan facility in lieu of any prepayment of the Star Holdings Term Loan Facility. The operating reserve will be calculated quarterly and is equal to the aggregate of projected operating expenses (including payments to the Star Holdings local property consultants but excluding management fees and public company costs), projected land carry costs, projected capital expenditure and projected interest expense on the margin loan facility and Star Holdings Term Loan Facility for the next twelve months; less the projected operating revenues for the next twelve months consistent with the operating budget approved by the Company.

The Star Holdings Term Loan Facility contains certain customary covenants, including affirmative covenants on reporting, maintenance of property, continued ownership of interests in the Company as well as negative covenants relating to investments, indebtedness and liens, fundamental changes, asset dispositions, repayments, distributions and affiliate transactions. Furthermore, the Star Holdings Term Loan Facility contains customary events of default, including payment defaults, failure to perform covenants, cross-default and cross acceleration to other indebtedness, including the margin loan facility, impairment of security interests and change of control.

During the three and six months ended June 30, 2023, the Company recorded a provision for credit losses of $11 thousand and $2.3 million, respectively, on the Secured Term Loan Facility which was originated at the time of the Merger in conjunction with the Spin-Off.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 22,130	$ 22,678	$ 26,812	$ 47,551

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 22,111	$ 22,711	$ 26,827	$ 47,618
Net (income) attributable to noncontrolling interests	19	(33)	(15)	(67)
Net income attributable to Safehold Inc. common shareholders for basic earnings per share	22,130	22,678	26,812	47,551
Net income attributable to Safehold Inc. common shareholders - diluted	$ 22,130	$ 22,678	$ 26,812	$ 47,551

- Definition

Amount of Net Income (Loss) attributable to noncontrolling interest.

+ References + Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

Consolidated Statements of Changes in Equity - USD ($)
$ in Thousands

Common Stock

Additional Paid-In Capital

Retained Earnings

Cumulative Effect, Period of Adoption, Adjustment

Retained Earnings

Accumulated Other Comprehensive Income (Loss)

Noncontrolling Interests

Cumulative Effect, Period of Adoption, Adjustment

Total

Increase (Decrease) in Temporary Equity [Roll Forward]

Contributions from noncontrolling interests

$ 18,829

Additional paid in capital attributable to redeemable noncontrolling interests

171

Balance at the end of the period at Jun. 30, 2022

19,000

Balance at the beginning of the period at Dec. 31, 2021

$ 566

$ 1,663,324

$ 59,368

$ (40,980)

$ 2,924

1,685,202

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

47,551

47,618

Issuance of common stock, net / amortization

312,780

333

313,168

Dividends declared

(21,514)

Change in accumulated other comprehensive income (loss)

13,030

Contributions from noncontrolling interests

Distributions to noncontrolling interests

(22)

Additional paid in capital attributable to redeemable noncontrolling interests

(171)

Balance at the end of the period at Jun. 30, 2022

621

1,975,933

85,405

(27,950)

3,320

2,037,329

Balance at the beginning of the period at Mar. 31, 2022

19,000

Balance at the end of the period at Jun. 30, 2022

19,000

Balance at the beginning of the period at Mar. 31, 2022

619

1,970,443

73,711

(35,691)

3,245

2,012,327

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

22,678

22,711

Issuance of common stock, net / amortization

5,490

5,545

Dividends declared

(10,984)

Change in accumulated other comprehensive income (loss)

7,741

Distributions to noncontrolling interests

(11)

Balance at the end of the period at Jun. 30, 2022

621

1,975,933

85,405

(27,950)

3,320

2,037,329

Balance at the beginning of the period at Dec. 31, 2022

^[1]

19,011

Balance at the end of the period at Jun. 30, 2023

^[1]

19,011

Balance at the beginning of the period at Dec. 31, 2022

624

1,986,417

$ (640)

151,226

3,281

4,056

$ (640)

2,145,604

^[1]

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

26,812

26,827

Issuance of common stock, net / amortization

14,128

497

14,628

Dividends declared

(22,572)

Change in accumulated other comprehensive income (loss)

5,838

Contributions from noncontrolling interests

(1,443)

30,439

28,996

Distributions to noncontrolling interests

(527)

Merger consideration (refer to Note 1)

35,576

35,588

Balance at the end of the period at Jun. 30, 2023

639

2,034,678

154,826

9,119

34,480

2,233,742

^[1]

Balance at the beginning of the period at Mar. 31, 2023

19,011

Balance at the end of the period at Jun. 30, 2023

^[1]

19,011

Balance at the beginning of the period at Mar. 31, 2023

639

2,031,026

144,164

(24,200)

27,498

2,179,127

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

22,130

(19)

22,111

Issuance of common stock, net / amortization

3,652

488

4,140

Dividends declared

(11,468)

Change in accumulated other comprehensive income (loss)

33,319

Contributions from noncontrolling interests

6,525

Distributions to noncontrolling interests

(12)

Balance at the end of the period at Jun. 30, 2023

$ 639

$ 2,034,678

$ 154,826

$ 9,119

$ 34,480

$ 2,233,742

^[1]

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale (Future Minimum Ground Net Lease Payments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Future Minimum Ground Net Lease Payments to be Collected
2023 (remaining nine months)	$ 18,432		$ 18,432
2024	37,174		37,174
2025	37,567		37,567
2026	27,945		27,945
2027	28,361		28,361
Thereafter	5,192,405		5,192,405
Operating lease income	16,750	$ 16,452	37,651	$ 33,418
Inflation- Linked
Future Minimum Ground Net Lease Payments to be Collected
2023 (remaining nine months)	2,906		2,906
2024	5,811		5,811
2025	5,811		5,811
2026	5,811		5,811
2027	5,811		5,811
Thereafter	435,056		435,056
Fixed Bumps with Inflation Adjustments
Future Minimum Ground Net Lease Payments to be Collected
2023 (remaining nine months)	8,710		8,710
2024	17,677		17,677
2025	18,004		18,004
2026	18,370		18,370
2027	18,755		18,755
Thereafter	4,308,109		4,308,109
Fixed Bumps
Future Minimum Ground Net Lease Payments to be Collected
2023 (remaining nine months)	1,111		1,111
2024	2,247		2,247
2025	2,313		2,313
2026	2,357		2,357
2027	2,388		2,388
Thereafter	433,110		433,110
Percentage Rent
Future Minimum Ground Net Lease Payments to be Collected
2023 (remaining nine months)	5,509		5,509
2024	11,018		11,018
2025	11,018		11,018
2026	986		986
2027	986		986
Thereafter	15,826		15,826
Operating lease income	300	$ 200	4,000	$ 900
Fixed Bumps with Percentage Rent
Future Minimum Ground Net Lease Payments to be Collected
2023 (remaining nine months)	196		196
2024	421		421
2025	421		421
2026	421		421
2027	421		421
Thereafter	$ 304		$ 304

Summary of Significant Accounting Policies - Merger Pro Forma (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pro forma information
Pro forma extinguishment of debt		$ 116,600
iStar Merger
Pro forma information
Pro forma revenues	$ 85,661	75,627	$ 182,917	$ 145,220
Pro forma net income (loss)	22,111	$ (89,865)	$ 56,434	(163,478)
Pro forma merger expenses				47,700
Pro forma extinguishment of debt				158,700
iStar Merger \| iStar Inc.
Pro forma information
Pro forma revenues	100
Pro forma net income (loss)	$ 4,600
Pro forma merger expenses				$ 20,300

Equity (Narrative) (Details) $ / shares in Units, $ in Millions			1 Months Ended		3 Months Ended		6 Months Ended
	Apr. 01, 2023 shares	Mar. 31, 2023 D $ / shares shares	Jun. 30, 2023 item $ / shares shares	Mar. 31, 2023	Jun. 30, 2023 item $ / shares shares	Jun. 30, 2022 $ / shares	Jun. 30, 2023 USD ($) item $ / shares shares	Jun. 30, 2022 USD ($) $ / shares	Dec. 31, 2023 shares	Apr. 30, 2023 USD ($) $ / shares	Dec. 31, 2022 $ / shares	Sep. 30, 2018 shares
Class of Stock [Line Items]
Common stock, par value (in dollars per share) \| $ / shares			$ 0.01		$ 0.01		$ 0.01			$ 0.01	$ 0.01
Number of classes of common stock \| item			1		1		1
Cash dividends declared \| $							$ 22.6	$ 21.5
Dividends declared, per share (usd per share) \| $ / shares					$ 0.177	$ 0.177	$ 0.354	$ 0.347
Award vesting period				4 years
Primary sales agreement
Class of Stock [Line Items]
Number of shares sold					0
Maximum \| Primary sales agreement
Class of Stock [Line Items]
Aggregate sales price \| $										$ 300.0
2009 Long Term Incentive Plan
Class of Stock [Line Items]
Vested shares of common stock issued			24,336
Grant date fair value of shares issued \| $ / shares			$ 23.58
Number of shares available for issuance for future awards (in shares)			435,205		435,205		435,205
Performance-based awards \| Caret Performance Incentive Plan (the "Original Caret Performance Incentive Plan").
Class of Stock [Line Items]
Previously vested shares subject to additional vesting (as percentage)		25.00%
Awards expected to vest within the next year.									850
Performance-based awards \| Amended Caret Performance Incentive Plan
Class of Stock [Line Items]
Trigger at average per share price (in dollars per share) \| $ / shares		$ 60.00
Expiration term (in years)		4 years
Awards outstanding (in shares)	1,499,432
Awards granted during the period		76,801
Number of awards outstanding then outstanding units (as percentage)	15.41%
Number of awards outstanding then authorized units (as percentage)	12.50%
Performance-based awards \| Amended Caret Performance Incentive Plan \| Minimum
Class of Stock [Line Items]
Threshold consecutive trading days \| D		30
Chief Financial Officer \| Performance-based awards \| Amended Caret Performance Incentive Plan
Class of Stock [Line Items]
Awards granted during the period		15,000
General and Administrative Expense \| Performance-based awards \| Caret Performance Incentive Plan (the "Original Caret Performance Incentive Plan").
Class of Stock [Line Items]
Share-based payment arrangement, expense \| $							$ 0.5	$ 0.3
Safehold, Inc. (Old SAFE) \| 2017 Equity Incentive Plan
Class of Stock [Line Items]
Number of shares available for issuance for future awards (in shares)			0		0		0
Safehold, Inc. (Old SAFE) \| Performance-based awards \| Caret Performance Incentive Plan (the "Original Caret Performance Incentive Plan").
Class of Stock [Line Items]
Capital shares reserved for future issuance (in shares)												1,500,000

Debt Obligations, net (Schedule of Debt) (Details) - USD ($)
$ in Thousands

1 Months Ended

6 Months Ended

12 Months Ended

Jul. 01, 2023

Jan. 31, 2023

Mar. 31, 2021

Jun. 30, 2023

Dec. 31, 2022

May 31, 2022

Jan. 31, 2022

Nov. 30, 2021

May 31, 2021

Debt Instrument [Line Items]

Total debt obligations

$ 4,025,114

$ 3,565,101

Debt premium, net

(42,775)

(43,742)

Total debt obligations, net

^[1]

3,982,339

3,521,359

Secured Debt

Debt Instrument [Line Items]

Total debt obligations

1,498,113

Debt premium, net

(26,749)

Total debt obligations, net

1,471,364

Secured Debt | Assets pledged as collateral without right

Debt Instrument [Line Items]

Real estate, net investment in sales-type leases and Ground Leases receivables pledged as collateral on debt obligations

2,000,000

Unsecured Debt

Debt Instrument [Line Items]

Total debt obligations

2,527,001

2,066,988

Debt premium, net

(16,026)

Total debt obligations, net

2,510,975

Unsecured Debt | Adjusted SOFR

Debt Instrument [Line Items]

Basis point spread on variable interest rate (percent)

1.00%

Mortgages | Secured Debt

Debt Instrument [Line Items]

Total debt obligations

$ 1,498,113

Weighted average interest rate

3.99%

Weighted average cash interest rate

3.29%

Consolidated Mortgage Debt, Unconsolidated Mortgage Debt and Unsecured Senior Notes

Debt Instrument [Line Items]

Weighted average interest rate

3.84%

Weighted average cash interest rate

3.31%

2.80% Senior Notes | Unsecured Debt

Debt Instrument [Line Items]

Total debt obligations

$ 400,000

Stated interest rate

2.80%

2.85% Senior Notes | Unsecured Debt

Debt Instrument [Line Items]

Total debt obligations

$ 350,000

Stated interest rate

2.85%

3.98% Senior Notes | Unsecured Debt

Debt Instrument [Line Items]

Total debt obligations

$ 475,000

Stated interest rate

3.98%

5.15% Senior Notes | Unsecured Debt

Debt Instrument [Line Items]

Total debt obligations

$ 154,001

$ 151,988

Stated interest rate

5.15%

Trust Preferred Securities | Adjusted SOFR

Debt Instrument [Line Items]

Basis point spread on variable interest rate (percent)

0.26161%

Trust Preferred Securities | Unsecured Debt

Debt Instrument [Line Items]

Total debt obligations

$ 100,000

Trust Preferred Securities | Unsecured Debt | London Interbank Offered Rates (LIBOR) [Member]

Debt Instrument [Line Items]

Basis point spread on variable interest rate (percent)

1.50%

2021 Unsecured Revolver maturing in 2026 | Unsecured Debt

Debt Instrument [Line Items]

Total debt obligations

$ 1,048,000

$ 690,000

2021 Unsecured Revolver maturing in 2026 | Unsecured Debt | London Interbank Offered Rates (LIBOR) [Member]

Debt Instrument [Line Items]

Basis point spread on variable interest rate (percent)

1.00%

2021 Unsecured Revolver maturing in 2026 | Unsecured Debt | Adjusted SOFR

Debt Instrument [Line Items]

Basis point spread on variable interest rate (percent)

1.00%

2023 Unsecured Revolver maturing in 2025 | Unsecured Debt | Adjusted SOFR

Debt Instrument [Line Items]

Basis point spread on variable interest rate (percent)

1.00%

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Risk Management and Derivatives (Tables)

6 Months Ended

Jun. 30, 2023

Risks and Uncertainties [Abstract]

Derivative Financial Instruments Designated in Hedging Relationships

The table below presents the Company’s derivatives as well as their classification on the consolidated balance sheets as of June 30, 2023 and December 31, 2022 ($ in thousands):⁽¹⁾


	June 30, 2023		December 31, 2022
	Fair		Fair		Balance Sheet
Derivative Type	Value⁽²⁾		Value⁽²⁾		Location
Assets
Interest rate swaps	$	41,690	$	29,346	Deferred expenses and other assets, net
Total	$	41,690	$	29,346

(1)	Over the next 12 months, the Company expects that $5.4 million related to cash flow hedges will be reclassified from “Accumulated other comprehensive income (loss)” as a decrease to interest expense.

(2)	The fair value of the Company’s derivatives is estimated using valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2 within the fair value hierarchy.

Derivative Instruments, Gain (Loss)

The table below presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) for the three and months ended June 30, 2023 and 2022 ($ in thousands):


				Amount of Gain
		Amount of Gain		(Loss) Reclassified
		(Loss) Recognized		from Accumulated
		in Accumulated		Other
	Location of Gain (Loss)	Other		Comprehensive
	When Recognized in	Comprehensive		Income into
Derivatives Designated in Hedging Relationships	Income	Income		Earnings
For the Three Months Ended June 30, 2023
Interest rate swaps	Interest expense	$	34,221	$	902
For the Three Months Ended June 30, 2022
Interest rate swaps	Interest expense	$	6,772	$	(969)
For the Six Months Ended June 30, 2023
Interest rate swaps	Interest expense	$	5,797	$	(41)
For the Six Months Ended June 30, 2022
Interest rate swaps	Interest expense	$	11,028	$	(2,002)

Related Party Transactions (Narrative) (Details) $ / shares in Units, $ in Thousands, ft² in Millions		1 Months Ended							3 Months Ended			6 Months Ended
	Aug. 10, 2022 USD ($) shares	Jul. 31, 2022 USD ($)	Jun. 30, 2022 USD ($) director	Apr. 30, 2022 USD ($)	Mar. 31, 2022 USD ($) lease property director	Feb. 28, 2022 USD ($) director shares	Nov. 30, 2021 USD ($) director	Jun. 30, 2021 USD ($) ft² agreement director	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($) employee $ / shares shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Related Party Transaction [Line Items]
Financing Receivable, after Allowance for Credit Loss, Related Party, Type									Related party			Related party
Management fee expense												$ 5,199	$ 9,666
Ground lease acquisition purchase price									$ 97,948				430,517
Future funding obligation, amount									271,200			271,200
Number of new Ground Leases entered into \| lease					3
Land
Related Party Transaction [Line Items]
Payments to acquire land					$ 28,500
Office space development property
Related Party Transaction [Line Items]
Number of square feet \| ft²								1.1
Purchase price of property under purchase option agreement								$ 215,000
Mixed-use property
Related Party Transaction [Line Items]
Ground lease, additional construction, funding commitment			$ 35,000
Caret Units
Related Party Transaction [Line Items]
Number of units sold \| shares						108,571
Number of shares to be sold under purchase commitment related to merger \| shares						28,571
Expected proceeds from sale of shares under purchase commitment						$ 5,000
Number of independent directors affiliated with an existing shareholder investing in redeemable noncontrolling interest \| director						1
Period in which the entity is obligated to provide a public market listing						2 years
Caret Units \| MSD Partners
Related Party Transaction [Line Items]
Number of shares to be sold under purchase commitment related to merger \| shares	100,000
Expected proceeds from sale of shares under purchase commitment	$ 20,000
Existing third-party Caret unit
Related Party Transaction [Line Items]
Number of shares to be sold under purchase commitment related to merger \| shares										22,500
Expected proceeds from sale of shares under purchase commitment										$ 4,500
Affiliated entity \| iStar Inc.
Related Party Transaction [Line Items]
Management fee paid with common stock, period of restriction from selling stock										2 years
Management fee, percent, threshold one										1.00%
Management fee, percent, threshold two										1.25%
Management fee, percent, threshold three										1.375%
Management fee, percent, threshold four										1.50%
Termination fee, percent of prior years management fee										3.00%
Incentive fee										$ 0
Ground lease acquisition purchase price		$ 36,400		$ 9,000
Payment to acquire purchase option agreement								$ 1,200
Payments to acquire land					$ 122,000
Number of land properties acquired \| property					3
Payment to terminate a real estate purchase option					$ 300
Affiliated entity \| iStar Inc. \| General and Administrative Expense
Related Party Transaction [Line Items]
Management fee expense									0		$ 5,200	5,200	9,700
Reimbursed operating and administrative expenses									$ 0		3,100	$ 3,100	6,200
Affiliated entity \| iStar Inc. \| Land and Related Ground Lease
Related Party Transaction [Line Items]
Number of agreements entered into to acquire land and related Ground Lease \| agreement								2
Purchase price per agreement for acquisition of land and related Ground Lease, subject to certain conditions being met							$ 33,300	$ 42,000
Multiple required by seller that may trigger payment of additional consideration							1.25	1.25
Percentage of required seller return on investment that may trigger payment of additional consideration							12.00%	9.00%
Future funding obligation, amount							$ 51,800
Affiliated entity \| Minimum \| iStar Inc.
Related Party Transaction [Line Items]
Management fee, shareholders' equity, incremental threshold amount two										1,500,000
Management fee, shareholders' equity, incremental threshold amount three										3,000,000
Management fee, shareholders' equity, incremental threshold amount four										5,000,000
Affiliated entity \| Maximum \| iStar Inc.
Related Party Transaction [Line Items]
Management fee, shareholders' equity, incremental threshold amount one										1,500,000
Management fee, shareholders' equity, incremental threshold amount two										3,000,000
Management fee, shareholders' equity, incremental threshold amount three										$ 5,000,000
Affiliated entity \| Maximum \| iStar Inc. \| Land and Related Ground Lease
Related Party Transaction [Line Items]
Real estate, leasehold improvement allowance								$ 83,000
Affiliated entity \| IPO \| iStar Inc.
Related Party Transaction [Line Items]
Share price (in dollars per share) \| $ / shares										$ 20.00
Director
Related Party Transaction [Line Items]
Number of directors with indirect ownership in Ground lease tenant. \| director					1
Number of independent directors affiliated with an existing shareholder participating in or related to a particular project or transaction \| director						1
iStar Inc.
Related Party Transaction [Line Items]
Ground lease acquisition purchase price		$ 36,400
iStar Inc. \| Land and Related Ground Lease
Related Party Transaction [Line Items]
Number of independent directors affiliated with an existing shareholder participating in or related to a particular project or transaction \| director							1	1
iStar Shareholder Affiliate \| Mixed-use property
Related Party Transaction [Line Items]
Number of directors affiliated with shareholder having indirect ownership in venture \| director			1
Leasehold Loan Fund
Related Party Transaction [Line Items]
Ownership percentage									53.00%			53.00%
Leasehold Loan Fund \| Life Science Office Property Development
Related Party Transaction [Line Items]
Loan commitment received to fund a recapitalization project						$ 130,000
Additional consideration paid						$ 9,000
Leasehold Loan Fund \| Mixed-use property
Related Party Transaction [Line Items]
Loan commitment received to fund a recapitalization project			$ 105,000								$ 105,000		$ 105,000
Additional consideration paid			$ 5,000
iStar Inc.
Related Party Transaction [Line Items]
Number of years as active real estate investor										20 years
Number of agreements entered into to acquire land and related Ground Lease \| agreement								2
iStar Inc. \| MSD Partners
Related Party Transaction [Line Items]
Number of shares to be sold under purchase commitment related to merger \| shares	5,405,406									5,405,406
Expected proceeds from sale of shares under purchase commitment	$ 200,000
Safehold, Inc. (Old SAFE)
Related Party Transaction [Line Items]
Number of employees \| employee										0
Safehold, Inc. (Old SAFE) \| Caret Units
Related Party Transaction [Line Items]
Number of units sold \| shares						108,571
Percentage of authorized shares sold						1.08%
Number of shares to be sold under purchase commitment related to merger \| shares						28,571
Percentage of authorized shares under commitment to be purchased						0.29%
Expected proceeds from sale of shares under purchase commitment						$ 5,000
Number of independent directors affiliated with an existing shareholder investing in redeemable noncontrolling interest \| director						1
Period in which the entity is obligated to provide a public market listing						2 years
MSD Partners \| Caret Units
Related Party Transaction [Line Items]
Number of shares to be sold under purchase commitment related to merger \| shares										100,000
Expected proceeds from sale of shares under purchase commitment										$ 20,000

Basis of Presentation and Principles of Consolidation and Combination (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Variable Interest Entity [Line Items]

Assets

^[1]

$ 6,419,061

$ 5,850,922

Liabilities

^[1]

4,166,308

$ 3,686,307

Variable Interest Entity, Primary Beneficiary

Variable Interest Entity [Line Items]

Assets

72,600

Liabilities

$ 30,100

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

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+ Details

- Definition

Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Related Party Transactions (Star Holdings) (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Apr. 30, 2023
Selling stockholder sales agreement \| Maximum
Related Party Transaction [Line Items]
Aggregate number of shares					1,000,000
Star Holdings \| Affiliated entity
Related Party Transaction [Line Items]
Annual management fee - Year 1			$ 25.0
Annual management fee - Year 2			15.0
Annual management fee - Year 3			10.0
Annual management fee - Year 4			$ 5.0
Annual management fee percent of gross book value, year five and thereafter			2.00%
Management fees recorded		$ 7.2		$ 7.2
Star Holdings \| Safehold Inc.
Related Party Transaction [Line Items]
Ownership percentage		21.10%		21.10%
Star Holdings \| Spinco Manager \| Affiliated entity
Related Party Transaction [Line Items]
Annual management fee - Year 1	$ 25.0		$ 25.0
Annual management fee - Year 2	15.0		15.0
Annual management fee - Year 3	10.0		10.0
Annual management fee - Year 4	$ 5.0		$ 5.0
Annual management fee percent of gross book value, year five and thereafter	2.00%		2.00%
Management agreement initial term	1 year
Management agreement renewal term	1 year
Notice required to terminate management agreement without cause	180 days
Percentage approval of independent directors to terminate management agreement without cause	66.70%
Notice required to terminate management agreement with cause	30 days
Termination fee, termination without cause	$ 50.0		$ 50.0
Termination fee due to liquidation of consolidated assets after third anniversary of agreement	0.0		0.0
Termination fee due to reduction in consolidated assets - Year 1	30.0		30.0
Termination fee due to reduction in consolidated assets - Year 2	15.0		15.0
Termination fee due to reduction in consolidated assets - Year 3	$ 5.0		$ 5.0

Equity Investments

6 Months Ended

Jun. 30, 2023

Investments, All Other Investments [Abstract]

Equity Investments

Note 6—Equity Investments

The Company’s equity investments and its proportionate share of earnings (losses) from equity investments were as follows ($ in thousands):


					Earnings from				Earnings from
	Carrying Value				Equity Method Investments				Equity Method Investments⁽¹⁾
	as of				For the Three Months Ended				For the Six Months Ended
	June 30,		December 31,		June 30,				June 30,
	2023		2022		2023		2022		2023		2022
Equity investment
425 Park Avenue	$	134,154	$	133,118	$	872	$	827	$	1,708	$	1,677
32 Old Slip		49,850		47,270		1,420		1,425		2,846		2,851
Ground Lease Plus Fund⁽¹⁾		54,123		—		1,688		—		1,688		—
Loan Plus Fund⁽²⁾		29,079		—		2,827		—		2,827		—
Total	$	267,206	$	180,388	$	6,807	$	2,252	$	9,069	$	4,528

(1)

As of June 30, 2023, the Company has a basis difference of $21.0 million in the Ground Lease Plus Fund that will be amortized over a weighted average remaining term of 96.7 years using the effective interest method. During the three and six months ended June 30, 2023, $0.8 million of the basis difference was amortized as an increase to earnings from equity method investments.

(2)

As of June 30, 2023, the Company has a basis difference of $13.8 million in the Leasehold Loan Fund that will be amortized over a weighted average remaining term of 3.5 years using the effective interest method. During the three and six months ended June 30, 2023, $1.0 million of the basis difference was amortized as an increase to earnings from equity method investments.

425 Park Avenue—In August 2019, the Company formed a venture with a sovereign wealth fund that is an existing shareholder of the Company to acquire the existing Ground Lease at 425 Park Avenue in New York City. The venture acquired the Ground Lease in November 2019. The Company has a 54.8% noncontrolling equity interest in the venture and is the manager of the venture. iStar was the manager prior to the Merger.

32 Old Slip—In June 2021, the Company acquired a 29.2% noncontrolling equity interest in a Ground Lease at an office property in New York City.

Ground Lease Plus Fund—In connection with Merger, the Company acquired from iStar an investment fund that iStar managed that targets the origination and acquisition of Ground Leases for commercial real estate projects that are in a pre-development phase (the “Ground Lease Plus Fund”). The Company owns a 53% noncontrolling equity interest in the Ground Lease Plus Fund. The Company does not have a controlling interest in the Ground Lease Plus Fund due to the substantive participating rights of its partner and accounts for this investment as an equity method investment. The Company receives a fee from its partner in exchange for managing the entity and is also entitled to a promote payment on investments in the Ground Lease Plus Fund. The Ground Lease Plus Fund has first look rights through December 2023 on qualifying pre-development projects that the Company has elected to not originate.

In November 2021, iStar acquired land for $33.3 million and simultaneously structured and entered into a Ground Lease on which a multi-family project will be constructed (refer also to Note 13). In December 2021, iStar sold the Ground Lease to the Ground Lease Plus Fund and recognized no gain or loss on the sale. At the time of iStar’s acquisition in November 2021, the Company and iStar entered into an agreement pursuant to which the Company would acquire the land and related Ground Lease from the Ground Lease Plus Fund when certain construction related conditions are met by a specified time period.

In January 2022, iStar sold the two Ground Leases to the Ground Lease Plus Fund, which remain subject to the June 2021 agreement with the Company, and recognized an aggregate $0.5 million of gains on the sale.

Leasehold Loan Fund—In connection with the Merger, the Company acquired from iStar an investment fund that iStar managed that targets customers that may require a mortgage leasehold loan as well as a Ground Lease (the “Leasehold Loan Fund”). The Company owns a 53.0% noncontrolling equity interest in the Leasehold Loan Fund. The Company does not have a controlling interest in the Leasehold Loan Fund due to the substantive participating rights of its partner. The Company accounts for this investment as an equity method investment and receives a fixed annual administrative fee and an asset management fee from its partner in exchange for managing the entity. The Company is also entitled to a promote payment on certain investments in the Leasehold Loan Fund.

In February 2022, the Leasehold Loan Fund committed to provide a $130.0 million loan to the ground lessee of a Ground Lease originated by the Company. The loan was for the Ground Lease tenant’s recapitalization of a life science property. As of June 30, 2023, the Company has not funded any of the commitment.

In June 2022, the Leasehold Loan Fund committed to provide a $105.0 million loan to the ground lessee of a Ground Lease originated by the Company. The loan was for the Ground Lease tenant’s recapitalization of a mixed-use property. As of June 30, 2023, $37.5 million of the commitment has been funded.

Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities (Schedule of Other Assets) (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Dec. 31, 2022

Deferred expenses and other assets

Operating lease, right-of-use asset

$ 36,015

$ 26,312

Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]

Deferred expenses and other assets, net

Interest rate hedge assets

$ 41,690

29,346

Deferred finance costs, net

6,371

4,461

Other assets

16,046

2,664

Purchase deposits

4,333

Leasing costs, net

444

448

Corporate furniture, fixtures and equipment, net

1,187

Deferred expenses and other assets, net

^[1],[2]

$ 106,086

67,564

Lease discount rate

5.50%

Accumulated amortization of deferred finance costs

$ 8,300

5,700

Management fees due from Star Holdings

7,200

Below-market lease

Deferred expenses and other assets

Annual lease fee

500

$ 500

Real estate expense

Deferred expenses and other assets

Operating lease expense

100

$ 100

300

$ 200

Other Income

Deferred expenses and other assets

Operating lease expense

$ 100

$ 300

$ 200

[1]	As of June 30, 2023, includes $8.1 million due from related parties.
[2]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Note 12—Earnings Per Share

Earnings per share (“EPS”) is calculated by dividing net income attributable to common shareholders by the weighted average number of shares outstanding for the period. The following tables present a reconciliation of net income used in the basic and diluted EPS calculations ($ and shares in thousands, except for per share data):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Net income	$	22,111	$	22,711	$	26,827	$	47,618
Net (income) attributable to noncontrolling interests		19		(33)		(15)		(67)
Net income attributable to Safehold Inc. common shareholders for basic and diluted earnings per common share	$	22,130	$	22,678	$	26,812	$	47,551


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Earnings attributable to common shares:
Numerator for basic and diluted earnings per share:
Net income attributable to Safehold Inc. common shareholders - basic	$	22,130	$	22,678	$	26,812	$	47,551
Net income attributable to Safehold Inc. common shareholders - diluted	$	22,130	$	22,678	$	26,812	$	47,551

Denominator for basic and diluted earnings per share:⁽¹⁾
Weighted average common shares outstanding for basic earnings per common share		63,944		63,252		63,809		61,279
Weighted average common shares outstanding for diluted earnings per common share		63,944		63,252		63,809		61,279

Basic and diluted earnings per common share:⁽¹⁾
Net income attributable to Safehold Inc. common shareholders - basic	$	0.35	$	0.36	$	0.42	$	0.78
Net income attributable to Safehold Inc. common shareholders - diluted	$	0.35	$	0.36	$	0.42	$	0.78

(1)

For the three and six months ended June 30, 2023, the effect of 452 shares and 456 shares related to restricted stock awards, respectively, were antidilutive. For the three and six months ended June 30, 2022, weighted average shares outstanding and earnings per share have been recast in accordance with ASC 805 to reflect the exchange ratio used in the reverse acquisition.

Business and Organization

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Organization

Note 1—Business and Organization

Business—On March 31, 2023, Safehold Inc. (“Old SAFE”) merged with and into iStar Inc. (“iStar”) (see Merger Transaction below), at which time Old SAFE ceased to exist and iStar continued as the surviving corporation and changed its name to “Safehold Inc.” (the “Merger”). References to iStar refer to iStar prior to the Merger. For accounting purposes, the Merger is treated as a “reverse acquisition” in which iStar is considered the legal acquirer and Old SAFE is considered the accounting acquirer. Unless context otherwise requires, references to the “Company” refer to the business and operations of Old SAFE and its consolidated subsidiaries prior to the Merger and to Safehold Inc. (formerly known as iStar) and its consolidated subsidiaries following the consummation of the Merger.

The Company operates its business through one reportable segment by acquiring, managing and capitalizing ground leases. The Company also manages entities focused on ground leases (refer to Note 6) and a wholly-owned subsidiary of the Company serves as external manager to Star Holdings (“Star Holdings”), a Maryland statutory trust that holds the legacy non-ground lease assets previously held by iStar. Ground leases are long-term contracts between the landlord (the Company) and a tenant or leaseholder. Ground leases generally represent ownership of the land underlying commercial real estate projects that is net leased by the fee owner of the land to the owners/operators of the real estate projects built thereon (“Ground Leases”). Under a Ground Lease, the tenant is generally responsible for all property operating expenses, such as maintenance, real estate taxes and insurance and is also responsible for development costs and capital expenditures. Ground Leases are typically long-term (base terms ranging from 30 to 99 years, often with tenant renewal options) and have contractual base rent increases (either at a specified percentage or consumer price index (“CPI”) based, or both) and sometimes include percentage rent participations. The Company’s CPI lookbacks are generally capped between 3.0% - 3.5% and generally start between years 11 and 21 of the lease term. In the event cumulative inflation growth for the lookback period exceeds the cap, these rent adjustments may not keep up fully with changes in inflation.

The Company intends to target investments in long-term Ground Leases in which: (i) the initial cost of its Ground Lease represents 30% to 45% of the combined value of the land and buildings and improvements thereon as if there was no Ground Lease on the land (“Combined Property Value”); (ii) the ratio of property net operating income to the Ground Lease payment due the Company (“Ground Rent Coverage”) is between 2.0x to 4.5x, and for this purpose the Company uses estimates of the stabilized property net operating income if it does not receive current tenant information and for properties under construction or in transition, in each case based on leasing activity at the property and available market information, including leasing activity at comparable properties in the relevant market; and (iii) the Ground Lease contains contractual rent escalation clauses or percentage rent that participates in gross revenues generated by the commercial real estate on the land. As a Ground Lease lessor, the Company typically has the right to regain possession of its land and take ownership of the buildings and improvements thereon upon tenant default and the termination of the Ground Lease on account of such default. The Company believes that the Ground Lease structure provides an opportunity for potential value accretion through the reversion to the Company, as the Ground Lease owner, of the buildings and improvements on the land at the expiration or earlier termination of the lease, for no additional consideration from the Company.

Prior to the Merger, Old SAFE was managed by SFTY Manager, LLC (the “Former Manager”), a wholly-owned subsidiary of iStar, pursuant to a management agreement. Old SAFE had no employees, as the Former Manager provided all services to it. Old SAFE relied on the extensive investment origination and sourcing platform of its Former Manager to actively promote the benefits of the Ground Lease structure to prospective Ground Lease tenants. Subsequent to the Merger, the Company is internally managed.

Organization—The Company is a Maryland corporation and its common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “SAFE.” The Company (then known as iStar) elected to be treated as a real estate investment trust (“REIT”) for U.S. federal income tax purposes, commencing with the tax year ended December 31, 1998.

As part of a restructuring in connection with the Merger (the “Caret Restructuring”), Safehold Operating Partnership LP converted into a Delaware limited liability company and renamed itself “Safehold GL Holdings LLC” (“Portfolio Holdings”), with the Company as its managing member. The Company conducts all of its business and owns all of its properties through Portfolio Holdings. In addition, holders of Caret units in Old SAFE’s subsidiary, Caret Ventures LLC (“Caret Ventures”), contributed their interests in Caret Ventures to Portfolio Holdings in return for Caret units issued by Portfolio Holdings. Following the restructuring, 100% of the equity interests in Caret Ventures is held by Portfolio Holdings. The Company, management of the Company, employees and former employees of the Company, affiliates of MSD Partners (as defined below) and other outside investors own the issued and outstanding equity of Portfolio Holdings.

Merger Transaction—On August 10, 2022, Old SAFE entered into an Agreement and Plan of Merger (the “Merger Agreement”) with iStar, and on March 31, 2023, the Merger was completed in accordance with the terms of the Merger Agreement. For accounting purposes, the Merger was accounted for as a business combination using the acquisition method of accounting under Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”) and treated as a “reverse acquisition” in which iStar is considered the legal acquirer and Old SAFE is considered the accounting acquirer. The Company considered the following relevant facts for this determination:

●

At the time of the Merger closing, Old SAFE shareholders, excluding the Old SAFE shares held directly by iStar, members of iStar management and Star Holdings, control a majority of the voting interests in the Company and the combined company operates under the name “Safehold Inc.;”

●

The composition of the combined company’s board of directors, which includes three directors from Old SAFE, two directors from iStar, and two management members of both Old SAFE and iStar;

●

Old SAFE was the larger entity by size when comparing the key metrics of total assets, total revenue and net income (loss) from continuing operations and allocable to common shareholders; and

●

Substantially all of the assets and liabilities of the Company consist of the historical assets and liabilities of Old SAFE, and the go-forward business plan of the Company is to conduct the Ground Lease business conducted by Old SAFE prior to the Merger.

As a result, the historical financial statements of Old SAFE become the historical financial statements of the Company.

Immediately before the closing of the Merger, iStar separated its remaining legacy non-ground lease assets and businesses, approximately $50.0 million of cash, exclusive of working capital reserves and restricted cash, and approximately 13.5 million shares of Old SAFE common stock into Star Holdings by distributing to iStar’s stockholders, on a pro rata basis, the issued and outstanding equity interests of Star Holdings (the “Spin-Off”).

Other Merger related transactions

On August 10, 2022, iStar entered into an agreement (the “MSD Stock Purchase Agreement”) with MSD Partners, L.P. (“MSD Partners”) pursuant to which MSD Partners agreed to purchase 5,405,406 shares of Old SAFE’s common stock then owned by iStar (the “MSD Stock Purchase”) for an aggregate purchase price of approximately $200 million, or $37.00 per share, payable in cash. The MSD Stock Purchase closed on March 31, 2023, shortly before the closing of the Merger. MSD Partners has the right to designate an observer to the board of directors of the Company, a top-up right on future equity issuances (subject to certain exceptions) and registration rights. MSD Partners will be subject to a customary standstill and certain restrictions on sales of its shares of the Company’s common stock.

On August 10, 2022, MSD Partners also agreed to purchase 100,000 Caret units (refer to Note 11) from the Company for an aggregate purchase price of $20.0 million (the “MSD Caret Purchase”). MSD Partners received a credit

against their purchase price for Caret units equal to the amount they would have received had they held Caret units at the time of a December 2022 distribution to other Caret unit holders, which was equal to $0.6 million. The closing of the MSD Caret Purchase took place in conjunction with the closing of the Merger on March 31, 2023.

Star Holdings was capitalized in part with an 8.0%, four-year term loan from the Company having an initial principal amount of $115.0 million, as well as SOFR plus 3.00% bank debt of $140.0 million from Morgan Stanley Bank, N.A. which is secured by approximately 13.5 million shares of the Company (refer to Note 4).

In connection with the Spin-Off, Safehold Management Services Inc. (“SpinCo Manager”), a Delaware corporation and a subsidiary of the Company, entered into a management agreement with Star Holdings effective as of March 31, 2023, pursuant to which SpinCo Manager will continue to operate and pursue the orderly monetization of Star Holding’s assets. Star Holdings will pay SpinCo Manager an annual management fee of $25.0 million in year one, $15.0 million in year two, $10.0 million in year three and $5.0 million in year four and 2.0% of the gross book value of Star Holdings’ assets, excluding shares of the Company’s common stock, for each annual term thereafter. The Company and Star Holdings also entered into a governance agreement that places certain restrictions on the transfer and voting of the shares of the Company owned by Star Holdings, and a registration rights agreement under which the Company agreed to register such shares for resale in accordance with applicable securities laws.

Note 2—Basis of Presentation and Principles of Consolidation

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with the instructions to Form 10-Q and Article 10-01 of Regulation S-X for interim financial statements. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. These unaudited consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes included in the Old SAFE’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”).

The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

In the opinion of management, the accompanying consolidated financial statements contain all adjustments consisting of normal recurring adjustments necessary for a fair statement of the results for the interim periods presented. Such operating results may not be indicative of the expected results for any other interim periods or the entire year.

Principles of Consolidation—The consolidated financial statements include the accounts and operations of the Company, its wholly-owned subsidiaries and VIEs for which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.

Consolidated VIEs—The Company consolidates VIEs for which it is considered the primary beneficiary. As of June 30, 2023, the total assets of these consolidated VIEs were $72.6 million and total liabilities were $30.1 million. The classifications of these assets are primarily within “Net investment in sales-type leases,” “Real estate, net,” “Real estate-related intangible assets, net” and “Deferred operating lease income receivable” on the Company’s consolidated balance sheets. The classifications of liabilities are primarily within “Debt obligations, net” and “Accounts payable, accrued expenses and other liabilities” on the Company’s consolidated balance sheets. The liabilities of these VIEs are non-recourse to the Company and can only be satisfied from each VIE’s respective assets. The Company has provided no

financial support to VIEs that it was not previously contractually required to provide and did not have any unfunded commitments related to consolidated VIEs as of June 30, 2023.

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party (Fiscal Year Maturity) (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
2023 (remaining six months)	$ 50,750
2024	104,481
2025	106,476
2026	108,464
2027	110,400
Thereafter	29,260,498
Total undiscounted cash flows	29,741,069
Fixed Bumps with Inflation Adjustments
Lessee, Lease, Description [Line Items]
2023 (remaining six months)	49,341
2024	101,639
2025	103,607
2026	105,567
2027	107,475
Thereafter	28,577,374
Total undiscounted cash flows	29,045,003
Fixed Bumps
Lessee, Lease, Description [Line Items]
2023 (remaining six months)	1,117
2024	2,256
2025	2,283
2026	2,311
2027	2,339
Thereafter	583,455
Total undiscounted cash flows	593,761
Fixed Bumps with Percentage Rent
Lessee, Lease, Description [Line Items]
2023 (remaining six months)	292
2024	586
2025	586
2026	586
2027	586
Thereafter	99,669
Total undiscounted cash flows	$ 102,305

Commitments and Contingencies - Unfunded and Other Commitments (Details) $ in Millions	Jun. 30, 2023 USD ($)
Unfunded commitments
Leasehold improvement allowance, unfunded, pending milestone achievement	$ 250.6
Future funding obligation, amount	271.2
Performance-based commitments	$ 127.7

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party (Schedule of Net Investment in Leases (Details)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

USD ($)

lease

Jun. 30, 2023

USD ($)

lease

Jun. 30, 2022

USD ($)

Net Investment in Sales-type Leases

Net Investment in Sales-type Leases, Beginning Balance

$ 3,106,599

$ 2,412,716

Net Investment in Sales-type Leases, Origination/acquisition/fundings

33,122

474,281

Net Investment in Sales-type Leases, Accretion

28,579

24,684

Net Investment in Sales-type Leases, Recovery of credit losses

Net Investment in Sales-type Leases, Ending Balance

3,167,964

2,911,681

Ground Lease Receivables

Ground Lease Receivables, Beginning balance

1,374,716

^[1]

796,252

Ground Lease Receivables, Origination/acquisition/fundings

97,948

430,517

Ground Lease Receivables, Accretion

12,505

8,975

Ground Lease Receivables, Recovery of credit losses

(22)

Ground Lease Receivables, Ending balance

1,484,948

^[1]

1,484,948

^[1]

1,235,744

Total

Beginning balance

4,481,315

3,208,968

Origination/acquisition/fundings

131,070

904,798

Accretion

41,084

33,659

Recovery of credit losses

(7)

Ending balance

$ 4,652,912

$ 4,147,425

Weighted average accrual rate for net investment in sales-type leases

5.10%

Weighted average accrual rate for net investment in ground lease receivables

5.40%

Ground lease receivables | lease

Weighted Average

Total

Ground leases term

98 years 6 months

Cumulative Effect, Period of Adoption, Adjustment

Net Investment in Sales-type Leases

Net Investment in Sales-type Leases, Beginning Balance

$ (351)

Ground Lease Receivables

Ground Lease Receivables, Beginning balance

(199)

Total

Beginning balance

$ (550)

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Reconciliation of cash and cash equivalents and restricted cash presented on the consolidated statements of cash flows

Cash and cash equivalents

$ 14,281

^[1]

$ 25,002

Restricted cash

28,144

^[1]

86,623

Total cash and cash equivalents and restricted cash

42,425

111,625

Supplemental disclosure of non-cash investing and financing activity:

Debt obligations assumed (refer to Note 3)

99,995

Issuance of common stock for acquisition of assets (refer to Note 3)

35,588

Non-cash interest accrued to debt balances

2,014

Dividends declared to common shareholders

11,471

10,984

Accrued finance costs

Accrued offering costs

$ 327

$ 536

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale (Real Estate Assets) (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Real Estate [Abstract]

Land and land improvements, at cost

$ 547,739

Buildings and improvements, at cost

193,232

Less: accumulated depreciation

^[1]

(37,385)

(34,371)

Real estate, net

^[1]

703,586

706,600

^[1]

214,446

217,795

Total real estate, net, real estate-related intangible assets, net and real estate available and held for sale

^[1]

918,032

$ 924,395

Residential real estate available and held for sale

1,500

Gain on sale of residential real estate available and held for sale.

$ 100

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Deferred Expenses and Other Assets, Net

Deferred expenses and other assets, net, consist of the following items ($ in thousands):


	As of
	June 30, 2023		December 31, 2022
Operating lease right-of-use asset⁽¹⁾	$	36,015	$	26,312
Interest rate hedge assets		41,690		29,346
Deferred finance costs, net⁽²⁾		6,371		4,461
Other assets⁽³⁾		16,046		2,664
Purchase deposits		4,333		4,333
Leasing costs, net		444		448
Corporate furniture, fixtures and equipment, net		1,187		—
Deferred expenses and other assets, net	$	106,086	$	67,564

(1)

Operating lease right-of-use asset relates primarily to a property that is majority-owned by a third party and is ground leased to the Company. The Company is obligated to pay the owner of the property $0.5 million, subject to adjustment for changes in the CPI, per year through 2044; however, the Company’s Ground Lease tenant at the property pays this expense directly under the terms of a master lease. Operating lease right-of-use asset is amortized on a straight-line basis over the term of the lease and is recorded in “Real estate expense” in the Company’s consolidated statements of operations. During both the three months ended June 30, 2023 and 2022, the Company recognized $0.1 million in “Real estate expense” and $0.1 million in “Other income” from its operating lease right-of-use asset. During the six months ended June 30, 2023 and 2022, the Company recognized $0.3 million and $0.2 million, respectively, in “Real estate expense” and $0.3 million and $0.2 million, respectively, in “Other income” from its operating lease right-of-use asset. The related operating lease liability (see table below) equals the present value of the minimum rental payments due under the lease discounted at the Company’s incremental secured borrowing rate for a similar asset estimated to be 5.5%. The Company also has operating leases for office space that it assumed from iStar in connection with the Merger (refer to Note 9).

(2)	Accumulated amortization of deferred finance costs was $8.3 million and $5.7 million as of June 30, 2023 and December 31, 2022, respectively.

(3)	As of June 30, 2023, includes $7.2 million of management fees due from Star Holdings.

Schedule of Accounts Payable, Accrued Expenses and Other Liabilities

Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands):


	As of
	June 30, 2023		December 31, 2022
Interest payable	$	63,209	$	55,459
Other liabilities⁽¹⁾		16,182		17,639
Dividends declared and payable		11,496		11,067
Operating lease liability⁽²⁾		18,342		5,471
Management fee payable		—		5,301
Accrued expenses⁽³⁾		10,568		5,420
Accounts payable, accrued expenses and other liabilities	$	119,797	$	100,357

(1)	As of December 31, 2022, other liabilities include $3.1 million due to the Former Manager for allocated payroll costs and costs it paid on the Company’s behalf.

(2)	Refer to Note 9.

(3)	As of June 30, 2023, accrued expenses includes accrued compensation, legal, audit and property expenses. As of December 31, 2022, accrued expenses includes accrued legal, audit and property expenses.

Debt Obligations, net (Narrative) (Details)		1 Months Ended						6 Months Ended	12 Months Ended
Debt Obligations, net (Narrative) (Details)	Jul. 01, 2023	Jan. 31, 2023 USD ($)	May 31, 2022 USD ($)	Jan. 31, 2022 USD ($)	Nov. 30, 2021 USD ($)	May 31, 2021 USD ($)	Mar. 31, 2021 USD ($) item	Jun. 30, 2023 USD ($)	Dec. 31, 2022	Dec. 31, 2021 USD ($)
Adjusted SOFR \| Trust Preferred Securities
Line of Credit Facility [Line Items]
Basis point spread on variable interest rate (percent)	0.26161%
Secured Debt \| Mortgages
Line of Credit Facility [Line Items]
Weighted average interest rate								3.99%	3.99%
Unsecured Debt \| 2.80% Senior Notes
Line of Credit Facility [Line Items]
Aggregate principal amount						$ 400,000,000.0
Stated interest rate						2.80%		2.80%	2.80%
Percent of par value at which the notes were issued						99.127%
Percentage of principal amount of debt at which debt can be redeemed						100.00%
Unsecured Debt \| 2.85% Senior Notes
Line of Credit Facility [Line Items]
Aggregate principal amount					$ 350,000,000.0
Stated interest rate					2.85%			2.85%	2.85%
Percent of par value at which the notes were issued					99.123%
Percentage of principal amount of debt at which debt can be redeemed					100.00%
Unsecured Debt \| 3.98% Senior Notes
Line of Credit Facility [Line Items]
Aggregate principal amount				$ 475,000,000.0
Stated interest rate				3.98%				3.98%	3.98%
Minimum percentage of aggregate principal amount that can be repaid at any time at the Company's discretion				5.00%
Percentage of principal amount of debt at which debt can be redeemed				100.00%
Unsecured Debt \| 5.15% Senior Notes
Line of Credit Facility [Line Items]
Aggregate principal amount			$ 150,000,000.0
Stated interest rate			5.15%					5.15%	5.15%
Stairstep interest rate, Years 1 through 10			2.50%
Stairstep interest rate, Years 11 through 20			3.75%
Stairstep interest rate, Years 21 through 30			5.15%
Minimum percentage of aggregate principal amount that can be repaid at any time at the Company's discretion			5.00%
Percentage of principal amount of debt at which debt can be redeemed			100.00%
Unsecured Debt \| 2021 Unsecured Revolver maturing in 2026
Line of Credit Facility [Line Items]
Maximum borrowing capacity							$ 1,000,000,000.0			$ 1,350,000,000
Number of extension options available \| item							2
Debt extension term							12 months
Line of credit facility fee, percent							0.125%
Remaining borrowing capacity								$ 302,000,000.0
Unsecured Debt \| Unsecured Revolver maturing in 2025
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 500,000,000
Remaining borrowing capacity								$ 500,000,000.0
Unsecured Debt \| London Interbank Offered Rates (LIBOR) [Member] \| Trust Preferred Securities
Line of Credit Facility [Line Items]
Basis point spread on variable interest rate (percent)								1.50%
Unsecured Debt \| London Interbank Offered Rates (LIBOR) [Member] \| 2021 Unsecured Revolver maturing in 2026
Line of Credit Facility [Line Items]
Basis point spread on variable interest rate (percent)							1.00%
Unsecured Debt \| Adjusted SOFR
Line of Credit Facility [Line Items]
Basis point spread on variable interest rate (percent)		1.00%
Unsecured Debt \| Adjusted SOFR \| 2021 Unsecured Revolver maturing in 2026
Line of Credit Facility [Line Items]
Basis point spread on variable interest rate (percent)								1.00%	1.00%
Minimum \| Unsecured Debt \| Unsecured Senior Notes
Line of Credit Facility [Line Items]
Unencumbered assets to unsecured debt ration								1.25
Minimum \| Unsecured Debt \| 2021 and 2023 Unsecured Revolvers
Line of Credit Facility [Line Items]
Unencumbered assets to unsecured debt ration								1.33
Debt instrument covenant multiple of minimum fixed charges on outstanding borrowings								1.15

Consolidated Statements of Changes in Equity - Parenthetical - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Dividends declared, per share (usd per share)	$ 0.177	$ 0.177	$ 0.354	$ 0.347

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 22,111	$ 22,711	$ 26,827	$ 47,618
Other comprehensive income:
Reclassification of (gains) losses on derivatives into earnings	(902)	969	41	2,002
Unrealized gain on derivatives	34,221	6,772	5,797	11,028
Other comprehensive income (loss)	33,319	7,741	5,838	13,030
Comprehensive income (loss)	55,430	30,452	32,665	60,648
Comprehensive (income) loss attributable to noncontrolling interests	19	(33)	(15)	(67)
Comprehensive income (loss) attributable to Safehold Inc.	$ 55,449	$ 30,419	$ 32,650	$ 60,581

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 32: http://www.xbrl.org/2003/role/disclosureRef
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Reference 33: http://www.xbrl.org/2003/role/exampleRef
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Reference 34: http://www.xbrl.org/2003/role/exampleRef
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Reference 39: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party - Loans receivable (Details)
$ in Thousands

3 Months Ended

6 Months Ended

Mar. 31, 2023

USD ($)

Jun. 30, 2023

USD ($)

Jun. 30, 2023

USD ($)

item

Loans receivable, related party

Interest income - related party

^[1]

$ 2,381

Related party | Star Holdings [Member]

Loans receivable, related party

Principal amount

115,000

Interest income - related party

2,400

Carrying value

112,200

$ 112,200

Number of quarters of interest paid in kind | item

Loan repayment period | D

Loans receivable, related party

Principal amount

25,000

$ 25,000

Fixed interest rate

12.00%

Star holding term loan facility | Related party | Star Holdings [Member]

Loans receivable, related party

Fixed interest rate

8.00%

Excess unrestricted cash applied for loan repayment

$ 50,000

Star holding term loan facility | Related party | Star Holdings [Member] | Maximum

Loans receivable, related party

Fixed interest rate

10.00%

Secured term loan facility

Loans receivable, related party

Provision for credit losses

$ 2,300

Secured term loan facility | Related party | Star Holdings [Member]

Loans receivable, related party

Principal amount

115,000

$ 115,000

Provision for credit losses

$ 11

$ 2,300

[1]	Refer to Note 3.

Debt Obligations, net

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt Obligations, net

Note 8—Debt Obligations, net

The Company’s outstanding debt obligations consist of the following ($ in thousands):


	As of				Interest		Scheduled
	June 30, 2023		December 31, 2022		Rate⁽¹⁾		Maturity Date⁽²⁾
Secured credit financing:
Mortgages	$	1,498,113	$	1,498,113	3.99	%	April 2027 to November 2069
Total secured credit financing⁽³⁾		1,498,113		1,498,113
Unsecured financing:
2.80% senior notes		400,000		400,000	2.80	%	June 2031
2.85% senior notes		350,000		350,000	2.85	%	January 2032
3.98% senior notes		475,000		475,000	3.98	%	February 2052
5.15% senior notes		154,001		151,988	5.15	%	May 2052
2021 Unsecured Revolver		1,048,000		690,000	Adjusted SOFR plus 1.00	%	March 2026
2023 Unsecured Revolver		—		—	Adjusted SOFR plus 1.00	%	July 2025
Trust preferred securities⁽⁴⁾		100,000		—	LIBOR plus 1.50	%	October 2035
Total unsecured financing		2,527,001		2,066,988
Total debt obligations		4,025,114		3,565,101
Debt premium, discount and deferred financing costs, net		(42,775)		(43,742)
Total debt obligations, net	$	3,982,339	$	3,521,359

(1)

For mortgages, represents the weighted average stated interest rate over the term of the debt from funding through maturity based on the contractual payments owed excluding the effect of debt premium, discount and deferred financing costs. As of June 30, 2023, the weighted average cash interest rate for the Company’s consolidated mortgage debt, based on interest rates in effect at that date, was 3.29%. The difference between the weighted average interest rate and the weighted average cash interest rate is recorded to interest payable within “Accounts payable, accrued expenses, and other liabilities” on the Company’s consolidated balance sheets. As of June 30, 2023, the Company’s combined weighted average stated interest rate and combined weighted average cash interest rate of the Company’s consolidated mortgage debt, the mortgage debt of the Company’s unconsolidated ventures (applying the Company’s percentage interest in the ventures - refer to Note 6), unsecured senior notes and trust preferred securities were 3.84% and 3.31%, respectively.

(2)	Represents the extended maturity date for all debt obligations.

(3)	As of June 30, 2023, $2.0 billion of real estate, at cost, net investment in sales-type leases and Ground Lease receivables served as collateral for the Company’s debt obligations.

(4)	Effective July 1, 2023, LIBOR was replaced with a rate equal to three-month Term SOFR plus 0.26161%.

Mortgages—Mortgages consist of asset specific non-recourse borrowings that are secured by the Company’s real estate and Ground Leases. As of June 30, 2023, the Company’s mortgages are full term interest only, bear interest at a weighted average interest rate of 3.99% and have maturities between April 2027 and November 2069.

Unsecured Notes—In May 2021, Portfolio Holdings, then known as Safehold Operating Partnership LP, (as issuer) and the Company (as guarantor), issued $400.0 million aggregate principal amount of 2.80% senior notes due June 2031 (the “2.80% Notes”). The 2.80% Notes were issued at 99.127% of par. The Company may redeem the 2.80% Notes in whole at any time or in part from time to time prior to March 15, 2031, at the Company’s option and sole discretion, at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2.80% Notes being redeemed; and (ii) a make-whole premium calculated in accordance with the indenture, plus, in each case, accrued and unpaid interest thereon to, but not including, the applicable redemption date. If the 2.80% Notes are redeemed on or after March 15, 2031, the

redemption price will be equal to 100% of the principal amount of the 2.80% Notes being redeemed, plus accrued and unpaid interest thereon to, but not including, the applicable redemption date.

In November 2021, Portfolio Holdings, then known as Safehold Operating Partnership LP, (as issuer) and the Company (as guarantor), issued $350.0 million aggregate principal amount of 2.85% senior notes due January 2032 (the “2.85% Notes”). The 2.85% Notes were issued at 99.123% of par. The Company may redeem the 2.85% Notes in whole at any time or in part from time to time prior to October 15, 2031, at the Company’s option and sole discretion, at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2.85% Notes being redeemed; and (ii) a make-whole premium calculated in accordance with the indenture, plus, in each case, accrued and unpaid interest thereon to, but not including, the applicable redemption date. If the 2.85% Notes are redeemed on or after October 15, 2031, the redemption price will be equal to 100% of the principal amount of the 2.85% Notes being redeemed, plus accrued and unpaid interest thereon to, but not including, the applicable redemption date.

In January 2022, Portfolio Holdings, then known as Safehold Operating Partnership LP, (as issuer) and the Company (as guarantor), issued $475.0 million aggregate principal amount of privately-placed 3.98% senior notes due February 2052 (the “3.98% Notes”). Safehold Operating Partnership LP elected to draw these funds in March 2022. The Company may, at its option, prepay at any time all, or from time to time any part of, the 3.98% Notes, in an amount not less than 5% of the aggregate principal amount of the 3.98% Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the applicable make-whole amount calculated in accordance with the indenture, for such tranche determined for the prepayment date with respect to such principal amount; provided, that, so long as no default or event of default shall then exist, at any time on or after November 15, 2051, the Company may, at its option, prepay all or any part of the 3.98% Notes at 100% of the principal amount so prepaid, together with, in each case, accrued interest to the prepayment date, without any make-whole amount.

In May 2022, Portfolio Holdings, then known as Safehold Operating Partnership LP, (as issuer) and the Company (as guarantor), issued $150.0 million aggregate principal amount of privately-placed 5.15% senior notes due May 2052 (the “5.15% Notes”). The structure of the 5.15% Notes features a stairstep coupon rate in which the Company will pay cash interest at a rate of 2.50% in years 1 through 10, 3.75% in years 11 through 20, and 5.15% in years 21 through 30. The difference between the 5.15% stated rate and the cash interest rate will accrue in each semi-annual payment period and be paid in kind by adding such accrued interest to the outstanding principal balance, to be repaid at maturity in May 2052. The Company may, at its option, prepay at any time all, or from time to time any part of, the 5.15% Notes, in an amount not less than 5% of the aggregate principal amount of the 5.15% Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the applicable make-whole amount calculated in accordance with the indenture; provided, that, so long as no default or event of default shall then exist, at any time on or after February 13, 2052, the Company may, at its option, prepay all or any part of the 5.15% Notes at 100% of the principal amount so prepaid, together with, in each case, accrued interest to the prepayment date, without any make-whole amount.

2021 Unsecured Revolver—In March 2021, Portfolio Holdings, then known as Safehold Operating Partnership LP, (as borrower) and the Company (as guarantor), entered into an unsecured revolving credit facility with an initial maximum aggregate principal amount of up to $1.0 billion (the “2021 Unsecured Revolver”). In December 2021, the Company obtained additional lender commitments increasing the maximum availability to $1.35 billion. The 2021 Unsecured Revolver has an initial maturity of March 2024 with two 12-month extension options exercisable by the Company, subject to certain conditions, and accrued interest at an annual rate of applicable LIBOR plus 1.00%, subject to the Company’s credit ratings. The Company also pays a facility fee of 0.125%, subject to the Company’s credit ratings. In January 2023, the Company amended the 2021 Unsecured Revolver primarily to transition from LIBOR to Adjusted SOFR, as defined in the applicable agreement. As of June 30, 2023, there was $302.0 million of undrawn capacity on the 2021 Unsecured Revolver.

2023 Unsecured Revolver—In January 2023, Portfolio Holdings, then known as Safehold Operating Partnership LP (as borrower) and the Company (as guarantor) closed on a new $500 million unsecured revolving credit facility (the “2023 Unsecured Revolver”). The 2023 Unsecured Revolver has a current borrowing rate of Adjusted SOFR, as defined in the applicable agreement, plus 100 basis points, with a maturity of July 31, 2025. As of June 30, 2023, there was $500.0 million of undrawn capacity on the 2023 Unsecured Revolver.

Trust Preferred Securities—The Company assumed trust preferred securities from iStar in connection with Merger. The trust preferred securities bear interest at LIBOR plus 1.50% and mature in October 2035. Effective July 1, 2023, LIBOR was replaced with a rate equal to three-month Term SOFR plus 0.26161%.

Debt Covenants—The Company is subject to financial covenants under the 2021 Unsecured Revolver and the 2023 Unsecured Revolver, including maintaining: (i) a ratio of total unencumbered assets to total unsecured debt of at least 1.33x; and (ii) a consolidated fixed charge coverage ratio of at least 1.15x, as such terms are defined in the documents governing the 2021 Unsecured Revolver and the 2023 Unsecured Revolver, as applicable. In addition, the 2021 Unsecured Revolver and the 2023 Unsecured Revolver contain customary affirmative and negative covenants. Among other things, these covenants may restrict the Company or certain of its subsidiaries’ ability to incur additional debt or liens, engage in certain mergers, consolidations and other fundamental changes, make other investments or pay dividends. The Company’s 2.80% Notes, 2.85% Notes, 3.98% Notes and 5.15% Notes are subject to a financial covenant requiring a ratio of unencumbered assets to unsecured debt of at least 1.25x and contain customary affirmative and negative covenants. The Company’s 3.98% Notes and 5.15% Notes contain a provision whereby they will be deemed to include additional financial covenants and negative covenants to the extent such covenants are incorporated into Portfolio Holdings’ and/or the Company’s existing or future material credit facilities, including the 2021 Unsecured Revolver and 2023 Unsecured Revolver, and to the extent such covenants are more favorable to the lenders under such material credit facilities than the covenants contained in the 3.98% Notes and 5.15% Notes. The Company’s mortgages contain no significant maintenance or ongoing financial covenants. As of June 30, 2023, the Company was in compliance with all of its financial covenants.

Future Scheduled Maturities—As of June 30, 2023, future scheduled maturities of outstanding debt obligations, assuming all extensions that can be exercised at the Company’s option, are as follows ($ in thousands):


	Secured⁽¹⁾		Unsecured		Total
2023 (remaining six months)	$	—	$	—	$	—
2024		—		—		—
2025		—		—		—
2026		—		1,048,000		1,048,000
2027		237,000		—		237,000
Thereafter		1,261,113		1,479,001		2,740,114
Total principal maturities		1,498,113		2,527,001		4,025,114
Debt premium, discount and deferred financing costs, net		(26,749)		(16,026)		(42,775)
Total debt obligations, net	$	1,471,364	$	2,510,975	$	3,982,339

(1)	As of June 30, 2023, the Company’s weighted average maturity for its secured mortgages was 28.0 years.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale (Intangible Asset Future Amortization Expense) (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Real Estate [Abstract]
2023 (remaining six months)	$ 3,333
2024	6,634
2025	6,634
2026	3,725
2027	$ 3,725
Weighted average useful life	80 years 2 months 12 days

Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Accounts payable, accrued expenses and other liabilities.

Interest payable

$ 63,209

$ 55,459

Other liabilities

16,182

$ 17,639

Other Liability, Related Party, Type

Related party

Dividends declared and payable

11,496

$ 11,067

Operating lease liability

18,342

5,471

Management fee payable

5,301

Accrued expenses

10,568

5,420

Accounts payable, accrued expenses and other liabilities

^[1],[2]

$ 119,797

$ 100,357

Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]

Accounts payable, accrued expenses and other liabilities

Other liabilities

Accounts payable, accrued expenses and other liabilities.

Other liabilities

$ 3,100

[1]	As of December 31, 2022, includes $8.5 million due to related parties.
[2]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended
	Mar. 31, 2023 item	Mar. 31, 2023 USD ($) item $ / shares	Jun. 30, 2023 USD ($) item	Mar. 31, 2023 USD ($) item	Jan. 01, 2023 USD ($)	Dec. 31, 2022 USD ($)
Stock-based compensation
Aggregate grant date fair value of awards granted during period		$ 25,000
Per share grant date fair value of awards granted during period \| $ / shares		$ 28.89
Award vesting period		4 years
Income taxes
Number of Taxable REIT Subsidiaries \| item			2
Current income tax expense			$ 400
Deferred income tax expense			100
Franchise and other state and local income taxes			$ 50
Loan receivable
Financing Receivable, Practical Expedient, Accrued Interest Exclusion			true
Allowance for credit losses
Amount of allowance for credit losses on ground lease receivables			$ 281
Deferred expenses and other assets, net
Loan receivable
Accrued interest on loans receivable			$ 26
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13
Allowance for credit losses
Amount of allowance for credit losses on net investment in sales-type leases					$ 400	$ 400
Amount of allowance for credit losses on ground lease receivables					$ 200	$ 200
Star Holdings
Loan receivable
Term on loan	4 years
Star Holdings \| Affiliated entity
Loan receivable
Term on loan	4 years
Management fees
Annual management fee - Year 1				$ 25,000
Annual management fee - Year 2				15,000
Annual management fee - Year 3				10,000
Annual management fee - Year 4				$ 5,000
Annual management fee percent of gross book value, year five and thereafter				2.00%
iStar Merger
Equity investments
Number of equity investments acquired \| item	2	2		2

Related Party Transactions

6 Months Ended

Jun. 30, 2023

Related Party Transactions

Note 13—Related Party Transactions

Prior to the Merger, the Company was externally managed by an affiliate of iStar. iStar was an active real estate investor for over 20 years and had an extensive network for sourcing investments, which included relationships with brokers, corporate tenants and developers that it has established over its long operating history.

Management Agreement

A summary of the terms of the management agreement with iStar prior to the Merger is below:


Manager		SFTY Manager, LLC, a wholly-owned subsidiary of iStar Inc.
Management Fee		Annual fee of 1.00% of total equity (up to $1.5 billion) Annual fee of 1.25% of total equity (for incremental equity of $1.5 billion to $3.0 billion) Annual fee of 1.375% of total equity (for incremental equity of $3.0 billion to $5.0 billion) and Annual fee of 1.5% of total equity (for incremental equity over $5.0 billion)
Management Fee Consideration		At the discretion of the Company’s independent directors, payment will be made in cash or in shares of the Company’s common stock (valued at the greater of: (i) the volume weighted average market price during a specified pricing period; or (ii) the initial public offering price of $20.00 per share)
Lock-up		Restriction from selling common stock received for management fees for two years from the date of such issuance (restriction will terminate in the event of and effective with the termination of the management agreement)
Incentive Fee		None
Term		Non-terminable through June 30, 2023, except for cause. Automatic annual renewals thereafter, subject to non-renewal upon certain findings by the Company’s independent directors and payment of termination fee.
Termination Fee		3x prior year’s management fee

The Company did not incur management fees to the Former Manager for the three months ended June 30, 2023. During the three months ended June 30, 2022, the Company recorded $5.2 million in management fees to the Former Manager. During the six months ended June 30, 2023 and 2022, the Company recorded $5.2 million and $9.7 million, respectively, in management fees to the Former Manager. These management fees are recorded in “General and administrative” in the Company’s consolidated statements of operations.

Expense Reimbursements

The Company paid, or reimbursed iStar for, certain of the Company’s operating expenses as well as the costs of personnel performing certain legal, accounting, finance, due diligence tasks and other services, in each case except those specifically required to be borne or elected not to be charged by the iStar under the management agreement.

The Company was not allocated any expenses from iStar for the three months ended June 30, 2023. During the three months ended June 30, 2022, the Company was allocated $3.1 million in expenses from iStar. During the six months ended June 30, 2023 and 2022, the Company was allocated $3.1 million and $6.2 million, respectively, in expenses from iStar. These expenses are recorded in “General and administrative” in the Company’s consolidated statements of operations.

Acquisitions and Commitments

iStar participated in certain of the Company’s investment transactions, as the Company’s tenant or either as a seller of land or by providing financing to the Company’s Ground Lease tenants. The following is a list of transactions in which the Company and iStar or other persons deemed to be related parties have participated for the periods presented.

These transactions were approved by the Company’s independent directors in accordance with the Company’s policy with respect to related party transactions.

In June 2022, the Company acquired land and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of a mixed-use property. The Company also committed to provide an additional $35.0 million to the Ground Lease tenant if certain construction and leasing milestones are met. The Leasehold Loan Fund, in which an affiliate of an existing shareholder (which is affiliated with one of the Company’s independent directors) owns a noncontrolling equity interest, committed to provide a $105.0 million loan to the Company’s Ground Lease tenant for the recapitalization of the leasehold. The Company paid the Leasehold Loan Fund $5.0 million of additional consideration in connection with this investment.

In April 2022, the Company acquired an existing Ground Lease from iStar for $9.0 million.

In March 2022, the Company acquired land for a purchase price of $28.5 million and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of a hotel property. One of the Company’s independent directors has an indirect ownership interest in the entity that is the Ground Lease tenant and controls the company that indirectly manages that entity.

In March 2022, the Company paid iStar $0.3 million to terminate a purchase option that allowed iStar to purchase the land at the expiration of its Ground Lease with the Company. iStar sold the leasehold to a third party in March 2022.

In March 2022, the Company acquired three land properties from iStar for a total purchase price of $122.0 million and simultaneously structured and entered into three Ground Lease’s directly with the Ground Lease tenant.

In February 2022, the Company acquired land and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of a life science development property. The Leasehold Loan Fund, in which an affiliate of an existing shareholder (which is affiliated with one of the Company’s independent directors) owns a noncontrolling equity interest, committed to provide a $130.0 million loan to the Company’s Ground Lease tenant for the recapitalization of the leasehold. The Company paid the Leasehold Loan Fund $9.0 million of additional consideration in connection with this investment.

In November 2021, the Company entered into an agreement pursuant to which it agreed to acquire land and a related Ground Lease originated by iStar when certain construction related conditions are met by a specified time period. The purchase price to be paid is $33.3 million, plus an amount necessary for iStar to achieve the greater of a 1.25x multiple or a 12% return on its investment. In addition, the Ground Lease documents contain future funding obligations to the Ground Lease tenant of approximately $51.8 million of leasehold improvement allowance upon achievement of certain milestones. In December 2021, iStar contributed the Ground Lease to the Ground Lease Plus Fund. The Company has a noncontrolling interest in the Ground Lease Plus Fund and an affiliate of an existing shareholder (which is affiliated with one of the Company’s independent directors) has a noncontrolling interest in the Ground Lease Plus Fund. The terms of the Company’s commitment under the agreement did not change upon iStar’s contribution of the Ground Lease to the Ground Lease Plus Fund. There can be no assurance that the conditions to closing will be satisfied and that the Company will acquire the Ground Lease from the Ground Lease Plus Fund. In May 2023, certain milestones were met by the tenant as it exited the pre-development stage and the tenant began accessing the leasehold improvement allowance. As of June 30, 2023, the Company funded $6.2 million of the leasehold improvement allowance.

In June 2021, the Company acquired from iStar a purchase option agreement for $1.2 million, which amount was equal to the deposit previously made by iStar under such option agreement plus assumption of iStar’s out of pocket costs and expenses in connection with entering into such option agreement. Under the option agreement, the Company has the right to acquire for $215.0 million a property that is under a separate option for the benefit of a third party, whereby such third party has the right to enter into a Ground Lease and develop approximately 1.1 million square feet of office space.

In June 2021, the Company entered into two agreements pursuant to each of which it agreed to acquire land and a related Ground Lease originated by iStar when certain construction related conditions are met by a specified time period. The purchase price to be paid for each is $42.0 million, plus an amount necessary for iStar to achieve the greater of a 1.25x multiple and a 9% return on its investment. In addition, each Ground Lease provides for a leasehold improvement allowance up to a maximum of $83.0 million, which obligation would be assumed by the Company upon acquisition. In January 2022, iStar sold the Ground Leases to the Ground Lease Plus Fund in which the Company owns a noncontrolling interest and an existing shareholder (which is affiliated with one of the Company’s independent directors) owns a noncontrolling interest. There can be no assurance that the conditions to closing will be satisfied and that the Company will acquire the properties and Ground Leases from the Ground Lease Plus Fund.

Caret units

In February 2022, Old SAFE sold an aggregate of 108,571 Caret units, 1.08% of the authorized Caret units, to a group of investors (refer to Note 3). In addition, an affiliate of an existing shareholder (which is affiliated with one of the Company’s independent directors) made a commitment to purchase 28,571 Caret units, or 0.29% of the authorized Caret units, for a purchase price of $5.0 million. As part of the sale, Old SAFE agreed to use commercially reasonable efforts to provide public market liquidity for such Caret units by seeking to provide a listing of the Caret units (or securities into which they may be exchanged) on a public exchange within two years of the sale. In the event public market liquidity of the Caret units is not achieved within such two year period at a valuation not less than the purchase price for the Caret units purchased in February 2022, reduced by an amount equal to the amount of subsequent cash distributions made to investors on account of such Caret units, then the investors in the February 2022 transaction have the right to cause their Caret units purchased in February 2022 to be redeemed by Portfolio Holdings at such purchase price as so reduced.

On March 31, 2023, shortly before the closing of the Merger, iStar sold and affiliates of MSD Partners bought 5,405,406 shares of Old SAFE’s common stock then owned by iStar. On March 31, 2023, in conjunction with the closing of the Merger, affiliates of MSD Partners also purchased 100,000 Caret units (refer to Note 11) from the Company for an aggregate purchase price of $20.0 million. Additionally, on March 31, 2023, existing third-party Caret unit holders purchased an aggregate of 22,500 Caret units from the Company for an aggregate $4.5 million.

Star Holdings

On March 31, 2023, immediately prior to the closing of the Merger, the Company (then known as iStar Inc.) completed the Spin-Off, resulting in the spin-off of its remaining legacy assets and certain other assets pursuant to a separation and distribution agreement (the “Separation and Distribution Agreement”), dated as of March 31, 2023, by and between the Company and Star Holdings. The Separation and Distribution Agreement sets forth, among other things, Star Holdings’ agreements with the Company regarding the principal transactions necessary to separate Star Holdings from the Company. It also sets forth other agreements that govern certain aspects of Star Holdings’ relationship with the Company after the Spin-Off relating to the transfer of assets and assumption of liabilities, cash assets, release of claims, insurance, non-solicitation, segregation of accounts and other matters. The Separation and Distribution Agreement also includes a mutual release by Star Holdings, on the one hand, and the Company, on the other hand, of the other party from certain specified liabilities, as well as mutual indemnification covenants pursuant to which Star Holdings and the Company have agreed to indemnify each other from certain specified liabilities.

SpinCo Manager has entered into a management agreement with Star Holdings, pursuant to which it will operate and pursue the orderly monetization of Star Holding’s assets. Pursuant to the management agreement, Star Holdings pays to SpinCo Manager an annual management fee of $25.0 million in year one, $15.0 million in year two, $10.0 million in year three and $5.0 million in year four and 2.0% of the gross book value of Star Holding's assets, excluding shares of the Company’s common stock, for each annual term thereafter. The management agreement has an initial one-year term and will be automatically renewed for successive one-year terms each anniversary date thereafter unless previously terminated. The management agreement may be terminated by Star Holdings without cause by not less than one hundred eighty days’ written notice to SpinCo Manager upon the affirmative vote of at least two-thirds of Star Holdings’ independent directors, provided, however, that if the date of termination occurs prior to the fourth anniversary of the Spin-Off, the termination will be subject to payment of the applicable termination fee to SpinCo Manager. Star Holdings may also terminate the management agreement at any time, including during the initial term, with 30 days’ prior written notice from Star Holdings’ board of trustees for “cause,” as defined in the management agreement.

In the event of a termination without cause by Star Holdings prior to the fourth anniversary of the Spin-Off, Star Holdings will pay SpinCo Manager a termination fee of $50.0 million minus the aggregate amount of management fees actually paid to SpinCo Manager prior to the termination date. However, if Star Holdings has completed the liquidation of its assets on or before the termination date, the termination fee will consist of any portion of the annual management fee that remained unpaid for the remainder of the then current annual term plus, if the termination date occurs on or before the third anniversary of the Spin-Off, the amount of the management fee that would have been payable for the next succeeding annual term, or if the termination date occurs after the third anniversary of the Spin-Off, zero.

In the event of a termination by the Company based on a reduction in the amount of Star Holdings’ consolidated assets below designated thresholds, Star Holdings will pay SpinCo Manager a termination fee of $30.0 million if the termination occurs in the first year, $15.0 million if the termination occurs in the second year and $5.0 million if the termination occurs in the third year, in each case, plus the balance of any unpaid portion of the annual management fee for the applicable year.

During the three and six months ended June 30, 2023, the Company recorded $7.2 million in management fees from Star Holdings. The management fees are included in “Other income” in the Company’s consolidated statements of operations.

The Company and Star Holdings also entered into a governance agreement that places certain restrictions on the transfer and voting of the shares of the Company owned by Star Holdings, and a registration rights agreement under which the Company agreed to register such shares for resale in accordance with applicable securities laws. As of June 30, 2023, Star Holdings owned approximately 21.1% of the Company’s common stock outstanding through a wholly-owned subsidiary.

In April 2023, the Company, Portfolio Holdings and Star Investment Holdings SPV LLC (“Star Investment Holdings”), a subsidiary of Star Holdings, entered into an ATM Equity Offering Sales Agreement (the “Selling Stockholder Sales Agreement”) with the sales agents named therein pursuant to which Star Investment Holdings may sell, from time to time, subject to receiving the Company’s consent, up to 1,000,000 shares of the Company’s common stock (the “Selling Stockholder Shares”) through or to the sales agents. Star Investment Holdings may sell the Selling Stockholder Shares in amounts and at times to be determined by the Star Investment Holdings, subject to receiving the Company’s consent, from time to time but has no obligation to sell any of the Selling Stockholder Shares. Actual sales, if any, will depend on a variety of factors to be determined by Star Investment Holdings from time to time, including, among other things, market conditions, the trading price of the Company’s common stock, capital needs and determinations by Star Investment Holdings of the appropriate sources of its funding.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Basis of Presentation and Principles of Consolidation

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Principles of Consolidation

Note 1—Business and Organization

●

The composition of the combined company’s board of directors, which includes three directors from Old SAFE, two directors from iStar, and two management members of both Old SAFE and iStar;

●

Old SAFE was the larger entity by size when comparing the key metrics of total assets, total revenue and net income (loss) from continuing operations and allocable to common shareholders; and

●

As a result, the historical financial statements of Old SAFE become the historical financial statements of the Company.

Other Merger related transactions

Note 2—Basis of Presentation and Principles of Consolidation

financial support to VIEs that it was not previously contractually required to provide and did not have any unfunded commitments related to consolidated VIEs as of June 30, 2023.

Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Revenues:

Interest income from sales-type leases

^[1]

$ 58,158

$ 48,247

$ 115,220

$ 91,278

Operating lease income

16,750

16,452

37,651

33,418

Interest income - related party

^[2]

2,381

Other income

^[3]

8,372

185

8,738

551

Total revenues

85,661

64,884

163,990

125,247

Costs and expenses:

Interest expense

46,055

30,266

86,929

55,586

Real estate expense

1,013

699

2,218

1,407

Depreciation and amortization

2,527

2,406

4,925

4,808

General and administrative

^[4]

18,916

10,458

33,983

19,651

Provision for credit losses

2,289

Other expense

1,274

596

15,363

705

Total costs and expenses

69,832

44,425

145,707

82,157

Income from operations before other items

15,829

20,459

18,283

43,090

Earnings from equity method investments

6,807

2,252

9,069

4,528

Net income before income taxes

22,636

22,711

27,352

47,618

Income tax expense

(525)

Net income

22,111

22,711

26,827

47,618

Net (income) attributable to noncontrolling interests

(33)

(15)

(67)

Net income attributable to Safehold Inc. common shareholders

$ 22,130

$ 22,678

$ 26,812

$ 47,551

Net income

Basic (dollars per share)

$ 0.35

$ 0.36

$ 0.42

$ 0.78

Diluted (dollars per shares)

$ 0.35

$ 0.36

$ 0.42

$ 0.78

Weighted average number of common shares:

Basic (in shares)

63,944

63,252

63,809

61,279

Diluted (in shares)

63,944

63,252

63,809

61,279

[1]	For the six months ended June 30, 2022, the Company recorded $2.1 million of “Interest income from sales-type leases” in its consolidated statements of operations from Ground Leases with iStar Inc. (“iStar”).
[2]	Refer to Note 3.
[3]	For the three and six months ended June 30, 2023, includes $7.2 million of management fees from related parties.
[4]	For the three months ended June 30, 2023 and 2022, includes $8.0 million and $9.5 million, respectively, of general and administrative expenses incurred to related parties that includes management fees, expense reimbursements to the Former Manager (refer to Note 1) and equity-based compensation (including equity-based compensation to employees). For the six months ended June 30, 2023 and 2022, includes $21.0 million and $17.4 million, respectively, of general and administrative expenses incurred to related parties that includes management fees, expense reimbursements to the Former Manager (refer to Note 1) and equity-based compensation (including equity-based compensation to employees).

Summary of Significant Accounting Policies - Merger (Details)
$ / shares in Units, $ in Thousands

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2023

USD ($)

$ / shares

Jun. 30, 2023

USD ($)

Jun. 30, 2023

USD ($)

Jun. 30, 2023

USD ($)

Dec. 31, 2022

USD ($)

Purchase consideration

Cash consideration paid by the Company to iStar

$ 88,685

Purchase price allocation

Deferred tax asset, net

$ 6,228

6,228

$ 6,228

Goodwill

^[1]

149,505

Operating lease, right-of-use asset

$ 36,015

$ 26,312

Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]

Deferred Costs and Other Assets

Office furniture and equipment

$ 1,187

Operating lease liability

$ 18,342

$ 5,471

Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]

Accounts payable, accrued expenses and other liabilities

Secured term loan facility

Purchase consideration

Provision for credit losses

$ 2,300

iStar Merger

Purchase consideration

Total Company shares as purchase price | shares

1,195,034

Stock price of the Company's common stock | $ / shares

$ 29.78

Fair value of the Company's stock transferred

$ 35,588

Cash consideration paid by the Company to iStar

88,685

Purchase consideration

$ 124,273

Shares issued as settled for iStar preexisting investment in the Company which are excluded from purchase consideration | shares

12,700,000

Merger expenses

$ 100

$ 18,900

$ 26,500

Merger related nonrecurring charges

300

3,000

Purchase price allocation

Cash and cash equivalents

$ 3,213

Real estate

1,508

Equity investments

61,247

Deferred tax asset, net

6,292

6,300

Deferred expenses and other assets

25,442

Total assets acquired

97,702

Accounts payable, accrued expenses and other liabilities

(22,939)

Debt obligations, net

(99,995)

Total liabilities assumed

(122,934)

Net identifiable liabilities acquired

(25,232)

Goodwill

149,505

Operating lease, right-of-use asset

$ 11,000

Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]

Deferred Costs and Other Assets

Prepaid expenses

$ 4,700

Operating lease liability

$ 14,200

Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]

Accounts payable, accrued expenses and other liabilities

Obligations assumed which are directly offset by corresponding equivalent cash and receivable assets acquired sufficient to settle such obligations.

$ 8,700

Deferred tax assets valuation allowance

2,800

$ 2,800

Reduction in goodwill

$ 6,300

iStar Merger | Fair Value, Inputs, Level 3

Purchase price allocation

Equity Securities, FV-NI, Measurement Input [Extensible Enumeration]

Measurement Input, Discount Rate [Member]

Debt Instrument, Measurement Input

6.7

Debt Instrument, Measurement Input [Extensible Enumeration]

Measurement Input, Discount Rate [Member]

iStar Merger | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate [Member] | Minimum

Purchase price allocation

Equity Securities, FV-NI, Measurement Input

0.072

iStar Merger | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate [Member] | Maximum

Purchase price allocation

Equity Securities, FV-NI, Measurement Input

0.139

iStar Merger | Deferred expenses and other assets

Purchase price allocation

In-place prepaid contracts

$ 2,100

Office furniture and equipment

1,300

Other receivables

6,300

iStar Merger | Other expense

Purchase consideration

Merger expenses

14,100

Merger related nonrecurring charges

900

iStar Merger | General and Administrative Expense

Purchase consideration

Merger expenses

$ 4,800

iStar Merger | Previously Reported [Member]

Purchase consideration

Purchase consideration

124,273

Purchase price allocation

Cash and cash equivalents

3,213

Real estate

1,508

Equity investments

61,247

Deferred expenses and other assets

25,442

Total assets acquired

91,410

Accounts payable, accrued expenses and other liabilities

(22,939)

Debt obligations, net

(99,995)

Total liabilities assumed

(122,934)

Net identifiable liabilities acquired

(31,524)

Goodwill

155,797

iStar Merger | Revision of Prior Period, Adjustment [Member]

Purchase price allocation

Deferred tax asset, net

6,292

Total assets acquired

6,292

Net identifiable liabilities acquired

6,292

Goodwill

$ (6,292)

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Principles of Combination and Consolidation

Allowance for credit losses on net investment in sales-type leases and Ground Lease receivables

Allowance for credit losses on net investment in sales-type leases and Ground Lease receivables—Effective January 1, 2023, upon the adoption of ASU 2016-13, the Company implemented procedures to estimate its allowance for credit losses on net investment in sales-type leases and Ground Lease receivables, including unfunded commitments, using a quantitative analysis to estimate expected loss rates for its portfolio of net investment in sales-type leases and Ground Lease receivables. ASU 2016-13 replaced the incurred loss impairment methodology in prior GAAP with a methodology that reflects expected credit losses over the life of the investment and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company analyzes historical unemployment rates and historical data provided by Trepp (“Trepp”) for single asset borrower loans including loan to value ratios, loss rates, timing of losses, vintage, property type and other statistics. The Company utilizes historical loss rates, timing of losses and unemployment rates and updates its analysis for current market conditions and reasonable and supportable forecasts of unemployment rates to develop an estimate of credit losses. The Company analyzes its portfolio of Ground Leases based on whether the property is a stabilized property or a development project (projects with unfunded commitments that are under development or in transition). The Company’s development properties are assigned a higher loss rate due to the more inherent risk of deals under construction.

Interest receivable is not included in the Company’s allowance for credit losses on net investment in sales-type leases and Ground Lease receivables as the Company performs timely write-offs, if any, of aged interest receivables. The Company has also made a policy election to write off aged interest receivables through interest income from sales-type leases as opposed to through the provision for credit losses.

Real estate available and held for sale

Real estate available and held for sale—The Company reports real estate assets to be sold at the lower of their carrying amount or estimated fair value less costs to sell and classifies them as “Real estate available and held for sale” on the Company’s consolidated balance sheets. If the estimated fair value less costs to sell is less than the carrying value, the difference will be recorded as an impairment charge. Impairment for real estate assets disposed of or classified as held for sale are included in "Impairment of assets" in the Company’s consolidated statements of operations. Once a real estate asset is classified as held for sale, depreciation expense is no longer recorded.

The Company classifies its real estate assets as held for sale in the period in which all of the following conditions are met: (i) the Company commits to a plan and has the authority to sell the asset; (ii) the asset is available for sale in its current condition; (iii) the Company has initiated an active marketing plan to locate a buyer for the asset; (iv) the sale of the asset is both probable and expected to qualify for full sales recognition within a period of 12 months; (v) the asset is being actively marketed for sale at a price that is reflective of its current fair value; and (vi) the Company does not anticipate changes to its plan to sell the asset.

If circumstances arise that were previously considered unlikely and, as a result the Company decides not to sell a property previously classified as held for sale, the property is reclassified as held and used and included in "Real estate, net" on the Company’s consolidated balance sheets. The Company measures and records a property that is reclassified as held and used at the lower of: (i) its carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held and used; or (ii) the estimated fair value at the date of the subsequent decision not to sell.

Fair values

Fair Values—The Company is required to disclose fair value information with regard to its financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practical to estimate fair value. The Financial Accounting Standards Board (“FASB”) guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The following fair value hierarchy prioritizes the inputs to be used in valuation techniques to measure fair value: Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The Company determines the estimated fair values of financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the Company and the Company’s own assumptions about market participant assumptions.

The following table presents the carrying value and fair value for the Company’s financial instruments ($ in millions):


	As of June 30, 2023				As of December 31, 2022
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Net investment in sales-type leases⁽¹⁾	$	3,168	$	3,381	$	3,107	$	3,236
Ground Lease receivables⁽¹⁾		1,485		1,669		1,375		1,501
Loans receivable, net - related party⁽¹⁾		112		112		—		—
Cash and cash equivalents⁽²⁾		14		14		20		20
Restricted cash⁽²⁾		28		28		28		28

Liabilities
Debt obligations, net⁽¹⁾
Level 1		739		579		738		573
Level 3		3,243		2,810		2,783		2,358
Total debt obligations, net		3,982		3,389		3,521		2,931

(1)

The fair value of the Company’s net investment in sales-type leases, Ground Lease receivables and loans receivable, net – related party are classified as Level 3 within the fair value hierarchy. The fair value of the Company’s debt obligations traded in secondary markets are classified as Level 1 within the fair value hierarchy and the fair value of the Company’s debt obligations not traded in secondary markets are classified as Level 3 within the fair value hierarchy.

(2)	The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values and are classified as Level 1 within the fair value hierarchy.

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests—In February 2022, the Company sold 108,571 Caret units (refer to Note 11) for $19.0 million to third-party investors and received a commitment from an existing shareholder (which is affiliated with one of the Company’s independent directors) for the purchase of 28,571 Caret units for $5.0 million. As part of the sale, the Company agreed to use commercially reasonable efforts to provide public market liquidity for such Caret units by seeking to provide a listing of the Caret units, or securities into which they may be exchanged, within two years of the sale. In the event public market liquidity of the Caret units is not achieved within such two year period at a valuation not less than the purchase price for the Caret units purchased in February 2022, reduced by an amount equal to the amount of subsequent cash distributions made to the investors on account of such Caret units, then the investors in the February 2022 transaction have the right to cause their Caret units purchased in February 2022 to be redeemed by Portfolio Holdings at their original purchase price as so reduced.

The Company classifies these redeemable Caret units in accordance with Accounting Standards Codification (“ASC”) 480: Distinguishing Liabilities from Equity. ASC 480-10-S99-3A requires that equity securities redeemable at the option of the holder be classified outside of permanent stockholders’ equity. The Company classifies redeemable Caret units as “Redeemable noncontrolling interests” in its consolidated balance sheets and consolidated statements of changes in equity. The redeemable noncontrolling interest’s carrying amount is equal to the higher of (i) the initial carrying amount, increased or decreased for the redeemable noncontrolling interest’s share of net income or loss and dividends; or (ii) the redemption value. In the case of the Company’s redeemable Caret units, the carrying amount equals both the initial carrying amount and the redemption value.

Stock-based compensation

Stock-based compensation—In March 2023, the Company granted awards to employees with an aggregate grant date fair value of $25.0 million, or $28.89 per share. The awards vest ratably over a four-year service period. Compensation cost for stock-based awards is measured on the grant date and adjusted over the period of the employees’ services to reflect: (i) actual forfeitures; and (ii) the service conditions through the requisite service period. Compensation costs are recognized ratably over the applicable vesting/service period and recorded in "General and administrative" in the Company’s consolidated statements of operations.

Income taxes

Income taxes— The Company (then known as iStar) elected to be taxed as a REIT under sections 856 through 859 of the Internal Revenue Code of 1986, as amended (the "Code") beginning with its taxable year ended December 31, 1998. The Company operates its business in a manner consistent with its election to be taxed as a REIT. As such, the consolidated financial statements of the Company have been prepared consistent with the Company’s qualification as a REIT for the periods presented. The Company will be subject to federal and state income taxation at corporate rates on its net taxable income; the Company, however, may claim a deduction for the amount of dividends paid to its shareholders. Amounts distributed as dividends by the Company will be subject to taxation at the stockholder level only. While the Company must distribute at least 90% of its net taxable income to qualify as a REIT, the Company intends to distribute all of its net taxable income, if any, and eliminate federal and state taxes on undistributed net taxable income. Certain states may impose minimum franchise taxes. In addition, the Company is allowed certain other non-cash deductions or adjustments, such as depreciation expense, when computing its net taxable income and distribution requirement. These deductions permit the Company to reduce its dividend payout requirement under federal tax laws. The Company’s tax years from 2019 through 2021 remain subject to examination by major tax jurisdictions The Company has two taxable REIT subsidiaries (“TRS”), one of which was formed during the year ended December 31, 2018 and had no material activity during the periods presented. Accordingly, no provision for income taxes was required. The second TRS provides management services to Star Holdings and internally to the REIT. The second TRS was acquired in the Company’s acquisition of iStar and first had activity during the three months ended June 30, 2023. For the three months ended June 30, 2023, the Company recorded current and deferred income tax expense in the amounts of $0.4 million and $0.1 million, respectively, with respect to the TRS. In addition, the Company paid franchise and other state and local income taxes in the amount of $50 thousand during the three months ended June 30, 2023.

Loans receivable, net - related party

Loans receivable, net – related party—Loans receivable, net – related party includes the four-year term loan that the Company originated to Star Holdings (refer to Note 4). Loans receivable classified as held-for-investment are reported at their outstanding unpaid principal balance net of any unamortized acquisition premiums or discounts and unamortized deferred loan costs or fees and credit loss allowances.

The Company performs a quarterly analysis of its loan receivable that incorporates management’s current judgments about credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment collateral, collateral type, project economics and other economic factors. The Company estimates its Expected Loss on its loans receivable based on relevant information including current market conditions and reasonable and supportable forecasts that affect the collectability of its investments. The estimate of the Company’s Expected Loss requires significant judgment. The Company calculated its Expected Loss through the use of third-party market data that provided current and future economic conditions that may impact the performance of the commercial real estate assets securing its investments.

The Company will consider a loan to be non-performing and place it on non-accrual status at such time as: (1) interest payments become 90 days delinquent; (2) it has a maturity default; or (3) management determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan. Non-accrual loans will be returned to accrual status when they have become contractually current and management believes all amounts contractually owed will be received.

The Company made the accounting policy election to record accrued interest on its loan asset separate from its loans receivable and to exclude accrued interest from its amortized cost basis disclosures. Any accrued interest receivable is recorded in “Deferred expenses and other assets, net” on the Company’s consolidated balance sheets. As of June 30, 2023, the Company had $26 thousand of accrued interest on its consolidated balance sheets. The Company will place its loan on non-accrual status once interest on the loan becomes 90 days delinquent and will reverse any accrued interest as a reduction to interest income or recognizes a credit loss expense at such time. As such, the Company elected the practical expedient to not record an allowance against accrued interest receivable. During the three and six months ended June 30, 2023, the Company did not reverse any accrued interest on its loan asset.

Equity Investments

Equity Investments—Equity investments are accounted for pursuant to the equity method of accounting if the Company can significantly influence the operating and financial policies of the investee. The Company has noncontrolling equity interests in ventures (refer to Note 6) and determined the entities to be voting interest entities. As such, its equity interests in these ventures are accounted for pursuant to the equity method of accounting. The Company’s periodic share of earnings and losses in equity method investees are included in "Earnings from equity method investments" in the Company’s consolidated statements of operations. Equity investments are included in "Equity investments" on the Company’s consolidated balance sheets. The Company acquired two equity interests from iStar in connection with the Merger. In connection with the acquisition, the Company has basis differences in these equity interests that are amortized to income over the life of the underlying assets (refer to Note 6).

Interest Income - related party

Interest Income – related party—Interest income - related party (refer to Note 4) is recognized on an accrual basis using the effective interest method and is recorded in “Interest income – related party” in the Company’s consolidated statements of operations.

Management fees

Management fees—The Company earns management fees through SpinCo Manager’s management agreement with Star Holdings pursuant to which SpinCo Manager operates and pursues the orderly monetization of Star Holding’s assets (refer to Note 1). Effective March 31, 2023, Star Holdings will pay SpinCo Manager an annual management fee of $25.0 million in year one, $15.0 million in year two, $10.0 million in year three, $5.0 million in year four and 2.0% of the gross book value of Star Holdings’ assets, excluding shares of the Company’s common stock, for each annual term thereafter. The Company recognizes management fee income in accordance with ASC 606: Revenue from Contracts with

Customers (“ASC 606”). Pursuant to ASC 606, the Company estimated the total transaction price of the management agreement and allocated the transaction price to its performance obligations under the management agreement. The Company determined that the management contract represents a single continuing performance obligation and will measure its progress toward satisfying its performance obligation using an input method to evaluate the level of effort expended to complete its obligations. The Company recognizes management fee income as it satisfies the performance obligations of the contract and records management fees in “Other income” in the Company’s consolidated statements of operations.

Acquisitions

Acquisitions—The Company evaluates each acquisition transaction to determine whether the acquired asset meets the definition of a business. Under ASC 805, an acquisition does not qualify as a business when (i) substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets; (ii) the acquisition does not include a substantive process in the form of an acquired workforce; or (iii) an acquired contract that cannot be replaced without significant cost, effort or delay. Acquisitions of a business are accounted for as business combinations and other acquisition transactions are accounted for as asset acquisitions. Transaction costs related to asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs related to business combinations are expensed as incurred.

The Company’s acquisition of iStar was accounted for as a business combination. For business combinations, the Company recognizes and measures identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquiree at their fair values on the Company’s consolidated balance sheets. In a business combination, the difference, if any, between the purchase consideration and the fair value of identifiable net assets acquired is either recorded as goodwill or as a bargain purchase gain.

Fair values are based on available information including discounted cash flow analysis or similar fair value models. Fair value estimates are also made using significant assumptions such as capitalization rates, discount rates, fair market lease rates and other market data. The fair value of the Company’s interests in equity investments acquired is calculated using the fair value of the investments held by the venture, which are valued using methods as described above, and considers the Company’s economics in the venture.

The fair value of financial instruments, which could include loans receivable or net investment in sales-type leases, is based on current market conditions and loan or lease agreements in place. The fair value of tangible assets, which could include land, buildings, building improvements and tenant improvements is determined as if these assets are vacant. Intangible assets may include the value of right of use lease assets, above-market leases and in-place leases. As lessee, right of use lease assets and lease liabilities are measured at the present value of lease payments not yet paid, discounted at the implied rate charged by the lessor if that rate is readily determinable, or if that rate is not readily determinable, the Company's incremental borrowing rate, as of the date of the acquisition. As lessee, operating lease right of use assets are included in “Deferred expenses and other assets, net” and operating lease liabilities are recorded in “Accounts payable, accrued expenses and other liabilities” on the Company’s consolidated balance sheets. As lessee, above-market operating lease intangibles, in-place operating lease intangibles and below-market lease assets are each recorded at their fair values and included in “Deferred expenses and other assets, net” on the Company’s consolidated balance sheets.

The table below shows the Company’s purchase consideration for the acquisition of iStar ($ in thousands):


Total Company shares as purchase price⁽¹⁾		1,195,034
Stock price of the Company’s common stock⁽²⁾	$	29.78
Fair value of the Company's stock transferred		35,588
Cash consideration paid by the Company to iStar		88,685
Purchase consideration	$	124,273

(1)

The total post-Merger shares of the Company to be held by iStar shareholders includes 12.7 million shares that were issued as consideration for the investment in Old SAFE previously held by iStar as of March 30, 2023 that were retired in connection with the Merger. Accordingly, these shares are excluded from the purchase consideration as they are reflected as a treasury stock repurchase and retirement by Old SAFE.

(2)	Based on the closing price of Old SAFE’s common stock as of March 30, 2023, representing the final closing price prior to the effective time of the Merger.

The Merger was accounted for as a business combination pursuant to ASC 805 and all Merger related costs were expensed as incurred. The Company recorded $0.1 million of Merger expenses and $0.3 million of related non-recurring charges during the three months ended June 30, 2023 in “Other expense” in the Company’s consolidated statements of operations. The Company recorded $18.9 million of Merger expenses during the six months ended June 30, 2023, of which $14.1 million was recorded in “Other expense” and $4.8 million was recorded in “General and administrative” in the Company’s consolidated statements of operations. During the six months ended June 30, 2023, the Company also recorded $0.9 million of related non-recurring charges in “Other expense” and a provision for credit losses of $2.3 million on the Secured Term Loan Facility (refer to Note 4) which was originated at the time of the Merger in conjunction with the Spin-Off. Excluding $3.0 million of related non-recurring charges and the $2.3 million provision for credit losses on the Secured Term Loan Facility, through June 30, 2023, the Company has incurred $26.5 million of Merger expenses.

The following table sets forth the preliminary allocation of the purchase consideration to the fair values of identifiable tangible and intangible assets acquired and liabilities assumed, recognized as a result of the acquisition described in Note 1 above, measurement period adjustments and a revised allocation of the purchase consideration ($ in thousands):


	Preliminary		Measurement		Revised
	Purchase Price Allocation		Period Adjustments		Purchase Price Allocation
Cash and cash equivalents	$	3,213	$	—	$	3,213
Real estate		1,508		—		1,508
Equity investments⁽¹⁾		61,247		—		61,247
Deferred tax asset⁽²⁾		—		6,292		6,292
Deferred expenses and other assets⁽³⁾		25,442		—		25,442
Total assets acquired		91,410		6,292		97,702

Accounts payable, accrued expenses and other liabilities⁽⁴⁾		(22,939)		—		(22,939)
Debt obligations⁽⁵⁾		(99,995)		—		(99,995)
Total liabilities assumed		(122,934)		—		(122,934)

Net identifiable (liabilities assumed) assets acquired		(31,524)		6,292		(25,232)

Purchase consideration	$	124,273	$	—	$	124,273
Add: net identifiable liabilities assumed		31,524		(6,292)		25,232
Goodwill⁽⁶⁾		155,797		(6,292)		149,505

(1)	Equity investments were valued using discount rates between 7.2% and 13.9% and are classified as Level 3 within the fair value hierarchy.

(2)

During the three months ended June 30, 2023, the Company recorded a deferred tax asset in the amount of $6.3 million, net of a valuation allowance in the amount of $2.8 million, and reduced goodwill by $6.3 million. The net deferred tax asset relates to net operating loss carryovers to which the Company’s taxable REIT subsidiary is a successor and were finalized upon filing tax returns for periods prior to the Merger.

(3)

Deferred expenses and other assets includes $11.0 million attributable to operating lease right of use assets, $4.7 million attributable to prepaid expenses resulting from the settlement of iStar’s compensation plans, $2.1 million attributable to in-place prepaid contracts, $1.3 million attributable to office furniture and equipment and $6.3 million attributable to other receivables.

(4)

Accounts payable, accrued expenses and other liabilities primarily includes a $14.2 million operating lease liability. In addition, under the Merger Agreement, iStar was required to fund its share of merger-related costs and to provide sufficient cash to fund any unresolved corporate obligations and accrued liabilities or costs yet-to-be incurred prior to the Merger. Accounts payable, accrued expenses and other liabilities includes approximately $8.7 million of obligations assumed from iStar, which are offset with corresponding amounts in cash and cash equivalents and amounts receivable in deferred expenses and other assets, net sufficient to settle such obligations.

(5)	Debt obligations were valued using a discount rate of 6.7% and are classified as Level 3 within the fair value hierarchy.

(6)	Goodwill is calculated as the excess of purchase consideration over the fair value of the net identifiable assets acquired and primarily relates to the acquisition of iStar’s workforce and future synergies expected to be realized after the completion of the Merger.

The following table summarizes the Company's pro forma revenues and net income (loss) for the three and six months ended June 30, 2023 and 2022 as if the Merger described in Note 1 was completed on January 1, 2022 ($ in thousands):⁽¹⁾


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Pro forma revenues	$	85,661	$	75,627	$	182,917	$	145,220
Pro forma net income (loss)		22,111		(89,865)		56,434		(163,478)



(1)	The pro forma revenues and net income (loss) are presented for informational purposes only and may not be indicative of what the actual results of operations of the Company would have been assuming the transaction occurred on January 1, 2022, nor do they purport to represent the Company’s results of operations for future periods. For the six months ended June 30, 2022, pro forma net loss includes $47.7 million of merger expenses (including $20.3 million of merger expenses borne by iStar), which are non-recurring in nature. For the three and six months ended June 30, 2022, pro forma net loss includes $116.6 million and $158.7 million, respectively, of losses on extinguishment of debt, which are non-recurring in nature. From the date of the Merger closing through June 30, 2023, $0.1 million of total revenues and $4.6 million of net income of the acquiree are included in the Company’s consolidated statements of operations.

Goodwill

Goodwill—Goodwill is calculated as the excess of purchase consideration over the fair value of the net identifiable assets acquired (or liabilities assumed) and primarily relates to the acquisition of iStar’s workforce and future synergies expected to be realized from the Merger. Goodwill is not subject to amortization but is tested annually for impairment or more frequently should potential triggering events be identified that may indicate potential impairment, such as when a company’s market capitalization is below its book value. Any full or partial impairment of goodwill would flow through the Company’s income statement as a non-cash charge and would adversely affect the Company’s net income for the period in which the impairment is recognized. The Company does not expect goodwill to have any tax impact on its financial statements.

New Accounting Pronouncements

New accounting pronouncements—The following paragraph describes the impact on the Company's consolidated financial statements from the adoption of Accounting Standards Updates ("ASUs") on January 1, 2023.

The Company adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), as amended, on January 1, 2023 using the modified retrospective approach method. Under the modified retrospective approach, the Company recorded a cumulative effect adjustment to retained earnings by recording an initial allowance for credit losses on net investment in sales-type leases and Ground Lease receivables. Periods presented that are prior to the adoption date of January 1, 2023 will not be adjusted. ASU 2016-13 replaced the incurred loss impairment methodology with a methodology that reflects a current expected credit loss ("Expected Loss"). ASU 2016-13 impacted all of the Company’s investments held at amortized cost, which included its net investment in sales-type leases and Ground Lease receivables. Upon adoption of ASU 2016-13 on January 1, 2023, the Company recorded an initial allowance for credit losses on net investments in sales-type leases of $0.4 million and an initial allowance for credit losses on Ground Lease receivables of $0.2 million, both of which were recorded as a cumulative effect adjustment to retained earnings. Subsequent increases or decreases in the allowance for credit losses on net investment in sales-type leases or Ground Lease receivables will be charged to "Provision for credit losses" in the Company's consolidated statements of operations. Refer to "Significant Accounting Policies" above for more information on how the Company determines its allowance for credit losses on net investment in sales-type leases, Ground Lease receivables and loans receivable, net – related party.

The Company also adopted ASU 2022-02, Financial Instruments—Credit Losses: Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”). ASU 2022-02 eliminated troubled debt restructuring recognition and measurement guidance and requires disclosure of gross write-offs by vintage for public business entities. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements.

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party - Schedule of allowance for credit losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Jan. 01, 2023	Dec. 31, 2022
Net Investment in Sales-type Leases
Allowance for credit losses at beginning of period		$ 0	$ 0
Allowance for credit losses, including unfunded commitments, at beginning of period	$ 326
Provision for (recovery of) credit losses	11	11	(20)
Allowance for credit losses at end of period	336		336
Allowance for credit losses, including unfunded commitments, at end of period	337	326	337
Ground lease receivables
Allowance for credit losses, including unfunded commitments, at beginning of period	258
(Recovery of) provision for credit losses	23		(2)
Allowance for credit losses, including unfunded commitments, at end of period	281	258	281
Amount of allowance for credit losses on ground lease receivables	281		281
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13
Net Investment in Sales-type Leases
Allowance for credit losses, including unfunded commitments, at beginning of period		357	357
Ground lease receivables
Allowance for credit losses, including unfunded commitments, at beginning of period		283	283
Amount of allowance for credit losses on net investment in sales-type leases				$ 400	$ 400
Amount of allowance for credit losses on ground lease receivables				200	$ 200
Stabilized properties
Net Investment in Sales-type Leases
Allowance for credit losses at beginning of period	255
Provision for (recovery of) credit losses	4		(21)
Allowance for credit losses at end of period	259	255	259
Ground lease receivables
Allowance for credit losses at beginning of period	93
(Recovery of) provision for credit losses	1		(8)
Allowance for credit losses at end of period	94	93	94
Amount of allowance for credit losses on net investment in sales-type leases	94		94
Stabilized properties \| Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13
Net Investment in Sales-type Leases
Allowance for credit losses at beginning of period		280	280
Ground lease receivables
Allowance for credit losses at beginning of period		102	102
Development properties
Net Investment in Sales-type Leases
Allowance for credit losses at beginning of period	70
Provision for (recovery of) credit losses	7		6
Allowance for credit losses at end of period	77	70	77
Ground lease receivables
Allowance for credit losses at beginning of period	102
(Recovery of) provision for credit losses	25		30
Allowance for credit losses at end of period	127	102	127
Amount of allowance for credit losses on net investment in sales-type leases	127		127
Development properties \| Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13
Net Investment in Sales-type Leases
Allowance for credit losses at beginning of period		71	71
Ground lease receivables
Allowance for credit losses at beginning of period		97	97
Unfunded commitments
Net Investment in Sales-type Leases
Allowance for credit losses at beginning of period	1
Provision for (recovery of) credit losses	0		(5)
Allowance for credit losses at end of period	1	1	1
Ground lease receivables
Allowance for credit losses at beginning of period	63
(Recovery of) provision for credit losses	(3)		(24)
Allowance for credit losses at end of period	60	63	60
Amount of allowance for credit losses on net investment in sales-type leases	$ 60		60
Unfunded commitments \| Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13
Net Investment in Sales-type Leases
Allowance for credit losses at beginning of period		6	6
Ground lease receivables
Allowance for credit losses at beginning of period		$ 84	$ 84
Unfunded commitments \| Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13 \| Accounts payable, accrued expenses and other liabilities
Ground lease receivables
Expected credit losses				$ 100

Summary of Significant Accounting Policies - Fair Value (Details) - USD ($)
$ in Thousands

Jun. 30, 2023

Mar. 31, 2023

Dec. 31, 2022

Jun. 30, 2022

Dec. 31, 2021

Assets

Net investment in sales-type leases

$ 3,167,964

$ 3,106,599

$ 2,911,681

$ 2,412,716

Ground Lease receivables

1,484,948

^[1]

$ 1,374,716

1,374,716

^[1]

1,235,744

$ 796,252

Loan receivable, net

^[1]

112,168

Cash and cash equivalents

14,281

^[1]

20,066

^[1]

25,002

Restricted cash

28,144

^[1]

28,324

^[1]

$ 86,623

Liabilities

Debt obligations, net

^[1]

3,982,339

3,521,359

Carrying Value

Assets

Net investment in sales-type leases

3,168,000

3,107,000

Ground Lease receivables

1,485,000

1,375,000

Loan receivable, net

112,000

Cash and cash equivalents

14,000

20,000

Restricted cash

28,000

Liabilities

Debt obligations, net

3,982,000

3,521,000

Carrying Value | Fair Value, Inputs, Level 1

Liabilities

Debt obligations, net

739,000

738,000

Carrying Value | Fair Value, Inputs, Level 3

Liabilities

Debt obligations, net

3,243,000

2,783,000

Fair Value

Liabilities

Debt obligations, net

3,389,000

2,931,000

Fair Value | Fair Value, Inputs, Level 1

Assets

Cash and cash equivalents

14,000

20,000

Restricted cash

28,000

Liabilities

Debt obligations, net

579,000

573,000

Fair Value | Fair Value, Inputs, Level 3

Assets

Net investment in sales-type leases

3,381,000

3,236,000

Ground Lease receivables

1,669,000

1,501,000

Loan receivable, net

112,000

Liabilities

Debt obligations, net

$ 2,810,000

$ 2,358,000

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Summary of Significant Accounting Policies - Redeemable Noncontrolling Interests (Details)
$ in Thousands

1 Months Ended

Feb. 28, 2022

USD ($)

director

Jun. 30, 2023

USD ($)

Dec. 31, 2022

USD ($)

Subsidiary, Sale of Stock [Line Items]

Retained earnings

^[1]

$ 154,826

$ 151,226

Caret Units

Subsidiary, Sale of Stock [Line Items]

Number of units sold | shares

108,571

Number of shares to be sold under purchase commitment related to merger | shares

28,571

Proceeds from stock transaction

$ 19,000

Expected proceeds from sale of shares under purchase commitment

$ 5,000

Number of independent directors affiliated with an existing shareholder investing in redeemable noncontrolling interest | director

Period in which the entity is obligated to provide a public market listing

2 years

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

- Definition

Amount of accumulated undistributed earnings (deficit).

+ References + Details

Debt Obligations, net (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Debt Obligations

The Company’s outstanding debt obligations consist of the following ($ in thousands):


	As of				Interest		Scheduled
	June 30, 2023		December 31, 2022		Rate⁽¹⁾		Maturity Date⁽²⁾
Secured credit financing:
Mortgages	$	1,498,113	$	1,498,113	3.99	%	April 2027 to November 2069
Total secured credit financing⁽³⁾		1,498,113		1,498,113
Unsecured financing:
2.80% senior notes		400,000		400,000	2.80	%	June 2031
2.85% senior notes		350,000		350,000	2.85	%	January 2032
3.98% senior notes		475,000		475,000	3.98	%	February 2052
5.15% senior notes		154,001		151,988	5.15	%	May 2052
2021 Unsecured Revolver		1,048,000		690,000	Adjusted SOFR plus 1.00	%	March 2026
2023 Unsecured Revolver		—		—	Adjusted SOFR plus 1.00	%	July 2025
Trust preferred securities⁽⁴⁾		100,000		—	LIBOR plus 1.50	%	October 2035
Total unsecured financing		2,527,001		2,066,988
Total debt obligations		4,025,114		3,565,101
Debt premium, discount and deferred financing costs, net		(42,775)		(43,742)
Total debt obligations, net	$	3,982,339	$	3,521,359

(1)

(2)	Represents the extended maturity date for all debt obligations.

(3)	As of June 30, 2023, $2.0 billion of real estate, at cost, net investment in sales-type leases and Ground Lease receivables served as collateral for the Company’s debt obligations.

(4)	Effective July 1, 2023, LIBOR was replaced with a rate equal to three-month Term SOFR plus 0.26161%.

Schedule of Maturities of Long-term Debt


	Secured⁽¹⁾		Unsecured		Total
2023 (remaining six months)	$	—	$	—	$	—
2024		—		—		—
2025		—		—		—
2026		—		1,048,000		1,048,000
2027		237,000		—		237,000
Thereafter		1,261,113		1,479,001		2,740,114
Total principal maturities		1,498,113		2,527,001		4,025,114
Debt premium, discount and deferred financing costs, net		(26,749)		(16,026)		(42,775)
Total debt obligations, net	$	1,471,364	$	2,510,975	$	3,982,339

(1)	As of June 30, 2023, the Company’s weighted average maturity for its secured mortgages was 28.0 years.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69B

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69E
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69E

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482925/835-30-45-2

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482925/835-30-45-1A

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-3

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482949/835-30-55-8

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480848/942-470-50-3

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-8

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-6

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-7

+ Details

Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Operating leases
2023 (remaining six months)	$ 2,863
2024	5,692
2025	5,680
Total undiscounted cash flows	14,235
Present value discount	(1,294)
Other adjustments	5,401
Lease liabilities	$ 18,342	$ 5,471
Operating leases discount rate. office leases (percent)	5.80%
Operating leases, weighted average lease term (in years)	3 years 1 month 6 days
Operating lease payments	$ 1,500
Annual amount due lessor for other property related payments other than rent	$ 500

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale (Tables)

6 Months Ended

Jun. 30, 2023

Real Estate [Abstract]

Schedule of Real Estate Assets

The Company’s real estate assets consist of the following ($ in thousands):


	As of
	June 30, 2023		December 31, 2022
Land and land improvements, at cost	$	547,739	$	547,739
Buildings and improvements, at cost		193,232		193,232
Less: accumulated depreciation		(37,385)		(34,371)
Total real estate, net	$	703,586	$	706,600
Real estate-related intangible assets, net		214,446		217,795
Total real estate, net and real estate-related intangible assets, net⁽¹⁾	$	918,032	$	924,395

(1)

During the three and six months ended June 30, 2023, the Company sold $1.5 million of residential homes that were acquired from iStar that were classified as available for sale. The Company recognized $0.1 million of gains on the sales, which is recorded in “Other income” in the Company’s consolidated statements of operations.

Schedule of Real Estate-Related Intangible Assets, Net

Real estate-related intangible assets, net consist of the following items ($ in thousands):


	As of June 30, 2023
	Gross		Accumulated		Carrying
	Intangible		Amortization		Value
Above-market lease assets, net⁽¹⁾	$	186,002	$	(16,821)	$	169,181
In-place lease assets, net⁽²⁾		65,345		(20,789)		44,556
Other intangible assets, net		750		(41)		709
Total	$	252,097	$	(37,651)	$	214,446


	As of December 31, 2022
	Gross		Accumulated		Carrying
	Intangible		Amortization		Value
Above-market lease assets, net⁽¹⁾	$	186,002	$	(15,254)	$	170,748
In-place lease assets, net⁽²⁾		65,345		(19,011)		46,334
Other intangible assets, net		750		(37)		713
Total	$	252,097	$	(34,302)	$	217,795

(1)

Above-market lease assets are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease is less than the present value of the contractual in-place rental cash flows. Above-market lease assets are amortized over the non-cancelable term of the leases.

(2)

In-place lease assets are recognized during asset acquisitions and are estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases as well as the value associated with lost rental revenue during the assumed lease-up period. In-place lease assets are amortized over the non-cancelable term of the leases.

Schedule of Amortization of Real Estate Related Intangible Assets

The amortization of real estate-related intangible assets had the following impact on the Company’s consolidated statements of operations for the three and six months ended June 30, 2023 and 2022 ($ in thousands):


	Income Statement	For the Three Months Ended June 30,
Intangible asset	Location	2023		2022
Above-market lease assets (decrease to income)	Operating lease income	$	784	$	784
In-place lease assets (decrease to income)	Depreciation and amortization		889		897
Other intangible assets (decrease to income)	Operating lease income		2		2


	Income Statement	For the Six Months Ended June 30,
Intangible asset	Location	2023		2022
Above-market lease assets (decrease to income)	Operating lease income	$	1,567	$	1,567
In-place lease assets (decrease to income)	Depreciation and amortization		1,778		1,789
Other intangible assets (decrease to income)	Operating lease income		4		4

Schedule of Future Amortization Expense

The estimated amortization of real estate-related intangible assets for each of the five succeeding fiscal years is as follows ($ in thousands):⁽¹⁾


Year	Amount
2023 (remaining six months)	$	3,333
2024		6,634
2025		6,634
2026		3,725
2027		3,725

(1)	As of June 30, 2023, the weighted average amortization period for the Company’s real estate-related intangible assets was approximately 80.2 years.

Schedule of Real Estate Related Intangible Liabilities

Real estate-related intangible liabilities, net consist of the following items ($ in thousands):


	As of June 30, 2023
	Gross		Accumulated		Carrying
	Intangible		Amortization		Value
Below-market lease liabilities⁽¹⁾	$	68,618	$	(4,446)	$	64,172


	As of December 31, 2022
	Gross		Accumulated		Carrying
	Intangible		Amortization		Value
Below-market lease liabilities⁽¹⁾	$	68,618	$	(4,027)	$	64,591

(1)

Below-market lease liabilities are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease exceeds the present value of the contractual in-place rental cash flows. Below-market lease liabilities are amortized over the non-cancelable term of the leases.

Schedule of Impact of Amortization of Real Estate Related Intangible Liabilities on Statements of Operations

The amortization of real estate-related intangible liabilities had the following impact on the Company’s consolidated statements of operations for the three and six months ended June 30, 2023 and 2022 ($ in thousands):


	Income Statement	For the Three Months Ended June 30,
Intangible liability	Location	2023		2022
Below-market lease liabilities (increase to income)	Operating lease income	$	209	$	209


	Income Statement	For the Six Months Ended June 30,
Intangible liability	Location	2023		2022
Below-market lease liabilities (increase to income)	Operating lease income	$	419	$	419

Future Minimum Ground Net Lease Payments

Future Minimum Operating Lease Payments—Future minimum lease payments to be collected under non-cancelable operating leases, excluding lease payments that are not fixed and determinable, in effect as of June 30, 2023, are as follows by year ($ in thousands):


			Fixed Bumps						Fixed
			with						Bumps with
	Inflation-		Inflation		Fixed		Percentage		Percentage
Year	Linked		Adjustments		Bumps		Rent		Rent		Total
2023 (remaining six months)	$	2,906	$	8,710	$	1,111	$	5,509	$	196	$	18,432
2024		5,811		17,677		2,247		11,018		421		37,174
2025		5,811		18,004		2,313		11,018		421		37,567
2026		5,811		18,370		2,357		986		421		27,945
2027		5,811		18,755		2,388		986		421		28,361
Thereafter		435,056		4,308,109		433,110		15,826		304		5,192,405

(1)

During the three months ended June 30, 2023 and 2022, the Company recognized $0.3 million and $0.2 million, respectively, of percentage rent in “Operating lease income” in the Company’s consolidated statements of operations. During the six months ended June 30, 2023 and 2022, the Company recognized $4.0 million and $0.9 million, respectively, of percentage rent in “Operating lease income” in the Company’s consolidated statements of operations.

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Terms of Related Party Transactions

A summary of the terms of the management agreement with iStar prior to the Merger is below:


Manager		SFTY Manager, LLC, a wholly-owned subsidiary of iStar Inc.
Management Fee		Annual fee of 1.00% of total equity (up to $1.5 billion) Annual fee of 1.25% of total equity (for incremental equity of $1.5 billion to $3.0 billion) Annual fee of 1.375% of total equity (for incremental equity of $3.0 billion to $5.0 billion) and Annual fee of 1.5% of total equity (for incremental equity over $5.0 billion)
Management Fee Consideration		At the discretion of the Company’s independent directors, payment will be made in cash or in shares of the Company’s common stock (valued at the greater of: (i) the volume weighted average market price during a specified pricing period; or (ii) the initial public offering price of $20.00 per share)
Lock-up		Restriction from selling common stock received for management fees for two years from the date of such issuance (restriction will terminate in the event of and effective with the termination of the management agreement)
Incentive Fee		None
Term		Non-terminable through June 30, 2023, except for cause. Automatic annual renewals thereafter, subject to non-renewal upon certain findings by the Company’s independent directors and payment of termination fee.
Termination Fee		3x prior year’s management fee

Consolidated Balance Sheets - USD ($)
$ in Thousands

Jun. 30, 2023

Dec. 31, 2022

ASSETS

Net investment in sales-type leases ($336 and $0 of allowances as of June 30, 2023 and December 31, 2022, respectively)

^[1]

$ 3,167,964

$ 3,106,599

Ground Lease receivables, net ($221 and $0 of allowances as of June 30, 2023 and December 31, 2022, respectively)

^[1]

1,484,948

1,374,716

Real estate, at cost

^[1]

740,971

Less: accumulated depreciation

^[1]

(37,385)

(34,371)

Real estate, net

^[1]

703,586

706,600

^[1]

214,446

217,795

Total real estate, net, real estate-related intangible assets, net and real estate available and held for sale

^[1]

918,032

924,395

Loans receivable, net - related party ($2,311 of allowances as of June 30, 2023)

^[1]

$ 112,168

Financing Receivable, after Allowance for Credit Loss, Related Party, Type

Related party

Equity investments

^[1]

$ 267,206

180,388

Goodwill

^[1]

149,505

Cash and cash equivalents

^[1]

14,281

20,066

Restricted cash

^[1]

28,144

28,324

Deferred tax asset, net

6,228

Deferred operating lease income receivable

^[1]

164,499

148,870

Deferred expenses and other assets, net

^[1],[2]

106,086

67,564

Total assets

^[1]

6,419,061

5,850,922

Liabilities:

Accounts payable, accrued expenses and other liabilities

^[1],[3]

119,797

100,357

^[1]

64,172

64,591

Debt obligations, net

^[1]

3,982,339

3,521,359

Total liabilities

^[1]

4,166,308

3,686,307

Commitments and contingencies (refer to Note 9)

^[1]

Redeemable noncontrolling interests (refer to Note 3)

^[1]

19,011

Safehold Inc. shareholders' equity:

Common stock, $0.01 par value, 400,000 shares authorized, 63,966 and 62,397 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

^[1]

639

624

Additional paid-in capital

^[1]

2,034,678

1,986,417

Retained earnings

^[1]

154,826

151,226

Accumulated other comprehensive income (loss)

^[1]

9,119

3,281

Total Safehold Inc. shareholders' equity

^[1]

2,199,262

2,141,548

Noncontrolling interests

^[1]

34,480

4,056

Total equity

^[1]

2,233,742

2,145,604

Total liabilities, redeemable noncontrolling interests and equity

^[1]

$ 6,419,061

$ 5,850,922

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).
[2]	As of June 30, 2023, includes $8.1 million due from related parties.
[3]	As of December 31, 2022, includes $8.5 million due to related parties.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3—Summary of Significant Accounting Policies

Significant Accounting Policies

The following table presents the carrying value and fair value for the Company’s financial instruments ($ in millions):


	As of June 30, 2023				As of December 31, 2022
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Net investment in sales-type leases⁽¹⁾	$	3,168	$	3,381	$	3,107	$	3,236
Ground Lease receivables⁽¹⁾		1,485		1,669		1,375		1,501
Loans receivable, net - related party⁽¹⁾		112		112		—		—
Cash and cash equivalents⁽²⁾		14		14		20		20
Restricted cash⁽²⁾		28		28		28		28

Liabilities
Debt obligations, net⁽¹⁾
Level 1		739		579		738		573
Level 3		3,243		2,810		2,783		2,358
Total debt obligations, net		3,982		3,389		3,521		2,931

(1)

(2)	The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values and are classified as Level 1 within the fair value hierarchy.

The table below shows the Company’s purchase consideration for the acquisition of iStar ($ in thousands):


Total Company shares as purchase price⁽¹⁾		1,195,034
Stock price of the Company’s common stock⁽²⁾	$	29.78
Fair value of the Company's stock transferred		35,588
Cash consideration paid by the Company to iStar		88,685
Purchase consideration	$	124,273

(1)

(2)	Based on the closing price of Old SAFE’s common stock as of March 30, 2023, representing the final closing price prior to the effective time of the Merger.


	Preliminary		Measurement		Revised
	Purchase Price Allocation		Period Adjustments		Purchase Price Allocation
Cash and cash equivalents	$	3,213	$	—	$	3,213
Real estate		1,508		—		1,508
Equity investments⁽¹⁾		61,247		—		61,247
Deferred tax asset⁽²⁾		—		6,292		6,292
Deferred expenses and other assets⁽³⁾		25,442		—		25,442
Total assets acquired		91,410		6,292		97,702

Accounts payable, accrued expenses and other liabilities⁽⁴⁾		(22,939)		—		(22,939)
Debt obligations⁽⁵⁾		(99,995)		—		(99,995)
Total liabilities assumed		(122,934)		—		(122,934)

Net identifiable (liabilities assumed) assets acquired		(31,524)		6,292		(25,232)

Purchase consideration	$	124,273	$	—	$	124,273
Add: net identifiable liabilities assumed		31,524		(6,292)		25,232
Goodwill⁽⁶⁾		155,797		(6,292)		149,505

(1)	Equity investments were valued using discount rates between 7.2% and 13.9% and are classified as Level 3 within the fair value hierarchy.

(2)

(3)

(4)

(5)	Debt obligations were valued using a discount rate of 6.7% and are classified as Level 3 within the fair value hierarchy.

(6)	Goodwill is calculated as the excess of purchase consideration over the fair value of the net identifiable assets acquired and primarily relates to the acquisition of iStar’s workforce and future synergies expected to be realized after the completion of the Merger.


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Pro forma revenues	$	85,661	$	75,627	$	182,917	$	145,220
Pro forma net income (loss)		22,111		(89,865)		56,434		(163,478)



(1)	The pro forma revenues and net income (loss) are presented for informational purposes only and may not be indicative of what the actual results of operations of the Company would have been assuming the transaction occurred on January 1, 2022, nor do they purport to represent the Company’s results of operations for future periods. For the six months ended June 30, 2022, pro forma net loss includes $47.7 million of merger expenses (including $20.3 million of merger expenses borne by iStar), which are non-recurring in nature. For the three and six months ended June 30, 2022, pro forma net loss includes $116.6 million and $158.7 million, respectively, of losses on extinguishment of debt, which are non-recurring in nature. From the date of the Merger closing through June 30, 2023, $0.1 million of total revenues and $4.6 million of net income of the acquiree are included in the Company’s consolidated statements of operations.

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party (Interest Income) (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

^[1]

$ 58,158

$ 48,247

$ 115,220

$ 91,278

Cash

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

37,454

30,436

74,140

57,619

Non-cash

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

20,704

17,811

41,080

33,659

Net Investment in Sales-type Leases

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

39,521

34,914

78,625

66,445

Net Investment in Sales-type Leases | Cash

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

25,168

21,935

50,050

41,761

Net Investment in Sales-type Leases | Non-cash

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

14,353

12,979

28,575

24,684

Ground Lease Receivables

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

18,637

13,333

36,595

24,833

Ground Lease Receivables | Cash

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

12,286

8,501

24,090

15,858

Ground Lease Receivables | Non-cash

Lessor, Lease, Description [Line Items]

Interest income from sales-type leases

$ 6,351

$ 4,832

$ 12,505

$ 8,975

[1]	For the six months ended June 30, 2022, the Company recorded $2.1 million of “Interest income from sales-type leases” in its consolidated statements of operations from Ground Leases with iStar Inc. (“iStar”).

Equity Investments (Details)
$ in Thousands

1 Months Ended

3 Months Ended

6 Months Ended

Jan. 31, 2022

USD ($)

lease

Dec. 31, 2021

USD ($)

Jun. 30, 2021

agreement

Jun. 30, 2023

USD ($)

Jun. 30, 2022

USD ($)

Jun. 30, 2023

USD ($)

Jun. 30, 2022

USD ($)

Dec. 31, 2022

USD ($)

Feb. 28, 2022

USD ($)

Nov. 30, 2021

USD ($)

Schedule of Equity Method Investments [Line Items]

Carrying value

^[1]

$ 267,206

$ 180,388

Earnings from equity method investments

$ 6,807

$ 2,252

$ 9,069

$ 4,528

iStar Inc.

Schedule of Equity Method Investments [Line Items]

Value of land acquired

$ 33,300

Number of agreements entered into to acquire land and related Ground Lease | agreement

iStar Inc. | Ground Lease Plus Fund

Schedule of Equity Method Investments [Line Items]

Gain (loss) from sale of Ground Lease

$ 500

$ 0

Number of Ground Leases sold | lease

425 Park Avenue | Equity Method Venture

Schedule of Equity Method Investments [Line Items]

Ownership percentage

54.80%

32 Old Slip

Schedule of Equity Method Investments [Line Items]

Ownership percentage

29.20%

Ground Lease Plus Fund

Schedule of Equity Method Investments [Line Items]

Basis difference in equity investment to be amortized

$ 21,000

Amortization of basis difference in equity investments

$ 800

Weighted average remaining term

96 years 8 months 12 days

Ownership percentage

53.00%

Leasehold Loan Fund

Schedule of Equity Method Investments [Line Items]

Basis difference in equity investment to be amortized

13,800

$ 13,800

Amortization of basis difference in equity investments

$ 1,000

Weighted average remaining term

3 years 6 months

Ownership percentage

53.00%

Leasehold Loan Fund | Life science property

Schedule of Equity Method Investments [Line Items]

Commitment to provide loan to Ground lessee

$ 130,000

Leasehold Loan Fund | Mixed-use property

Schedule of Equity Method Investments [Line Items]

Commitment to provide loan to Ground lessee

$ 105,000

Loan commitment to Ground lessee that has been funded

37,500

Real estate equity investments

Schedule of Equity Method Investments [Line Items]

Carrying value

$ 267,206

180,388

Earnings from equity method investments

6,807

2,252

9,069

4,528

Real estate equity investments | 425 Park Avenue | Equity Method Venture

Schedule of Equity Method Investments [Line Items]

Carrying value

134,154

133,118

Earnings from equity method investments

872

827

1,708

1,677

Real estate equity investments | 32 Old Slip

Schedule of Equity Method Investments [Line Items]

Carrying value

49,850

$ 47,270

Earnings from equity method investments

1,420

$ 1,425

2,846

$ 2,851

Real estate equity investments | Ground Lease Plus Fund

Schedule of Equity Method Investments [Line Items]

Carrying value

54,123

Earnings from equity method investments

1,688

Real estate equity investments | Leasehold Loan Fund

Schedule of Equity Method Investments [Line Items]

Carrying value

29,079

Earnings from equity method investments

$ 2,827

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Risk Management and Derivatives (Derivative Instrument Gain (Loss)) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) item	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) item	Jun. 30, 2022 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate hedges in liability position \| item	1		1
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income	$ 34,221	$ 6,772	$ 5,797	$ 11,028
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings	902	(969)	(41)	(2,002)
Designated as Hedging Instrument \| Interest Expense \| Interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income	34,221	6,772	5,797	11,028
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings	$ 902	$ (969)	$ (41)	$ (2,002)

Risk Management and Derivatives

6 Months Ended

Jun. 30, 2023

Risks and Uncertainties [Abstract]

Risk Management and Derivatives

Note 10—Risk Management and Derivatives

In the normal course of its ongoing business operations, the Company encounters credit risk. Credit risk is the risk of default on the Company’s leases that result from a tenant’s inability or unwillingness to make contractually required payments.

Risk concentrations—Concentrations of credit risks arise when the Company has multiple leases with a particular tenant or credit party, or a number of the Company’s tenants are engaged in similar business activities, or activities in the same geographic region, or have similar economic features, such that their ability to meet contractual obligations, including those to the Company, could be similarly affected by changes in economic conditions.

Although the Company’s Ground Leases are geographically diverse and the tenants operate in a variety of industries and property types, to the extent the Company has a significant concentration of interest income from sales-type leases or operating lease income from any tenant, the inability of that tenant to make its payment could have a material adverse effect on the Company. The Company did not have a significant concentration of operating lease income from any tenant for the periods presented.

Derivative instruments and hedging activity—The Company’s use of derivative financial instruments has been associated with debt issuances and primarily limited to the utilization of interest rate swaps and interest rate caps to manage interest rate risk exposure. The Company does not enter into derivatives for trading purposes.

The Company recognizes derivatives, if any, as either assets or liabilities on the Company’s consolidated balance sheets at fair value. Interest rate hedge assets are recorded in “Deferred expenses and other assets, net” and interest rate hedge liabilities are recorded in “Accounts payable, accrued expenses and other liabilities” on the Company’s consolidated balance sheets. If certain conditions are met, a derivative may be specifically designated as a hedge of the exposure to changes in the fair value of a recognized asset or liability, a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability.

For the Company’s derivatives designated and qualifying as cash flow hedges, changes in the fair value of the derivatives are reported as a component of accumulated other comprehensive income (loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s debt. If a derivative includes an other-than-insignificant financing element at inception, when the Company is deemed to be the lender all cash inflows and outflows of the derivative are considered cash flows from investing activities in the Company’s consolidated statements of cash flows and when the Company is deemed to be the borrower all cash inflows and outflows of the derivative are considered cash flows from financing activities in the Company’s consolidated statements of cash flows.

For the Company’s derivatives not designated as hedges, the changes in the fair value of the derivatives are reported in “Interest expense” in the Company’s consolidated statements of operations. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements.

The table below presents the Company’s derivatives as well as their classification on the consolidated balance sheets as of June 30, 2023 and December 31, 2022 ($ in thousands):⁽¹⁾


	June 30, 2023		December 31, 2022
	Fair		Fair		Balance Sheet
Derivative Type	Value⁽²⁾		Value⁽²⁾		Location
Assets
Interest rate swaps	$	41,690	$	29,346	Deferred expenses and other assets, net
Total	$	41,690	$	29,346

(1)	Over the next 12 months, the Company expects that $5.4 million related to cash flow hedges will be reclassified from “Accumulated other comprehensive income (loss)” as a decrease to interest expense.

(2)	The fair value of the Company’s derivatives is estimated using valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2 within the fair value hierarchy.

Credit Risk-Related Contingent Features—The Company reports derivative instruments, if any, on a gross basis in its consolidated financial statements. The Company has agreements with each of its derivative counterparties that contain a provision whereby if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of June 30, 2023, the Company had one interest rate hedge that was in a liability position for which the Company has not posted any collateral.


				Amount of Gain
		Amount of Gain		(Loss) Reclassified
		(Loss) Recognized		from Accumulated
		in Accumulated		Other
	Location of Gain (Loss)	Other		Comprehensive
	When Recognized in	Comprehensive		Income into
Derivatives Designated in Hedging Relationships	Income	Income		Earnings
For the Three Months Ended June 30, 2023
Interest rate swaps	Interest expense	$	34,221	$	902
For the Three Months Ended June 30, 2022
Interest rate swaps	Interest expense	$	6,772	$	(969)
For the Six Months Ended June 30, 2023
Interest rate swaps	Interest expense	$	5,797	$	(41)
For the Six Months Ended June 30, 2022
Interest rate swaps	Interest expense	$	11,028	$	(2,002)

Debt Obligations, net (Schedule of Debt Maturities) (Details) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Debt Instrument [Line Items]

2023 (remaining six months)

$ 0

1,048,000

237,000

2,740,114

Total principal maturities

4,025,114

$ 3,565,101

Debt premium, discount and deferred financing costs, net

(42,775)

(43,742)

Total debt obligations, net

^[1]

3,982,339

3,521,359

Secured Debt

Debt Instrument [Line Items]

2023 (remaining six months)

237,000

1,261,113

Total principal maturities

1,498,113

Debt premium, discount and deferred financing costs, net

(26,749)

Total debt obligations, net

$ 1,471,364

Weighted average maturity of mortgages

28 years

Unsecured Debt

Debt Instrument [Line Items]

2023 (remaining six months)

$ 0

1,048,000

1,479,001

Total principal maturities

2,527,001

$ 2,066,988

Debt premium, discount and deferred financing costs, net

(16,026)

Total debt obligations, net

$ 2,510,975

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party (Schedule of Net Investment in Sales-type Leases) (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Lessor, Lease, Description [Line Items]
Total undiscounted cash flows	$ 29,741,069		$ 29,586,227
Unguaranteed estimated residual value	2,915,013		2,900,218
Present value discount	(29,487,782)		(29,379,846)
Allowance for credit losses	(336)		0
Net investment in sales-type leases	3,167,964	$ 3,106,599	$ 3,106,599	$ 2,911,681	$ 2,412,716
Noncontrolling Interests
Lessor, Lease, Description [Line Items]
Net investment in sales-type leases	$ 6,500

Equity Investments (Tables)

6 Months Ended

Jun. 30, 2023

Investments, All Other Investments [Abstract]

Schedule of Equity Investments

The Company’s equity investments and its proportionate share of earnings (losses) from equity investments were as follows ($ in thousands):


					Earnings from				Earnings from
	Carrying Value				Equity Method Investments				Equity Method Investments⁽¹⁾
	as of				For the Three Months Ended				For the Six Months Ended
	June 30,		December 31,		June 30,				June 30,
	2023		2022		2023		2022		2023		2022
Equity investment
425 Park Avenue	$	134,154	$	133,118	$	872	$	827	$	1,708	$	1,677
32 Old Slip		49,850		47,270		1,420		1,425		2,846		2,851
Ground Lease Plus Fund⁽¹⁾		54,123		—		1,688		—		1,688		—
Loan Plus Fund⁽²⁾		29,079		—		2,827		—		2,827		—
Total	$	267,206	$	180,388	$	6,807	$	2,252	$	9,069	$	4,528

(1)

(2)

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party (Lease Assignment and Modification) (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Sep. 30, 2022	Jul. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reclassification [Line Items]
Ground lease acquisition purchase price			$ 97,948			$ 430,517
Net gain attributable to noncontrolling interests			$ (19)	$ 33	$ 15	$ 67
iStar Inc.
Reclassification [Line Items]
Ground lease acquisition purchase price		$ 36,400
Land and Related Ground Lease
Reclassification [Line Items]
Net proceeds received from sale of net investment in lease	$ 136,000
Gain on sale of net investment in lease	55,800
Net gain attributable to noncontrolling interests	9,500
Net gain attributable to redeemable noncontrolling interests	$ 700

- Definition

Amount of Net Income (Loss) attributable to noncontrolling interest.

+ References + Details

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale

6 Months Ended

Jun. 30, 2023

Real Estate [Abstract]

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale

Note 5—Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale

The Company’s real estate assets consist of the following ($ in thousands):


	As of
	June 30, 2023		December 31, 2022
Land and land improvements, at cost	$	547,739	$	547,739
Buildings and improvements, at cost		193,232		193,232
Less: accumulated depreciation		(37,385)		(34,371)
Total real estate, net	$	703,586	$	706,600
Real estate-related intangible assets, net		214,446		217,795
Total real estate, net and real estate-related intangible assets, net⁽¹⁾	$	918,032	$	924,395

(1)

Real estate-related intangible assets, net consist of the following items ($ in thousands):


	As of June 30, 2023
	Gross		Accumulated		Carrying
	Intangible		Amortization		Value
Above-market lease assets, net⁽¹⁾	$	186,002	$	(16,821)	$	169,181
In-place lease assets, net⁽²⁾		65,345		(20,789)		44,556
Other intangible assets, net		750		(41)		709
Total	$	252,097	$	(37,651)	$	214,446


	As of December 31, 2022
	Gross		Accumulated		Carrying
	Intangible		Amortization		Value
Above-market lease assets, net⁽¹⁾	$	186,002	$	(15,254)	$	170,748
In-place lease assets, net⁽²⁾		65,345		(19,011)		46,334
Other intangible assets, net		750		(37)		713
Total	$	252,097	$	(34,302)	$	217,795

(1)

(2)


	Income Statement	For the Three Months Ended June 30,
Intangible asset	Location	2023		2022
Above-market lease assets (decrease to income)	Operating lease income	$	784	$	784
In-place lease assets (decrease to income)	Depreciation and amortization		889		897
Other intangible assets (decrease to income)	Operating lease income		2		2


	Income Statement	For the Six Months Ended June 30,
Intangible asset	Location	2023		2022
Above-market lease assets (decrease to income)	Operating lease income	$	1,567	$	1,567
In-place lease assets (decrease to income)	Depreciation and amortization		1,778		1,789
Other intangible assets (decrease to income)	Operating lease income		4		4

The estimated amortization of real estate-related intangible assets for each of the five succeeding fiscal years is as follows ($ in thousands):⁽¹⁾


Year	Amount
2023 (remaining six months)	$	3,333
2024		6,634
2025		6,634
2026		3,725
2027		3,725

(1)	As of June 30, 2023, the weighted average amortization period for the Company’s real estate-related intangible assets was approximately 80.2 years.

Real estate-related intangible liabilities, net consist of the following items ($ in thousands):


	As of June 30, 2023
	Gross		Accumulated		Carrying
	Intangible		Amortization		Value
Below-market lease liabilities⁽¹⁾	$	68,618	$	(4,446)	$	64,172


	As of December 31, 2022
	Gross		Accumulated		Carrying
	Intangible		Amortization		Value
Below-market lease liabilities⁽¹⁾	$	68,618	$	(4,027)	$	64,591

(1)


	Income Statement	For the Three Months Ended June 30,
Intangible liability	Location	2023		2022
Below-market lease liabilities (increase to income)	Operating lease income	$	209	$	209


	Income Statement	For the Six Months Ended June 30,
Intangible liability	Location	2023		2022
Below-market lease liabilities (increase to income)	Operating lease income	$	419	$	419


			Fixed Bumps						Fixed
			with						Bumps with
	Inflation-		Inflation		Fixed		Percentage		Percentage
Year	Linked		Adjustments		Bumps		Rent		Rent		Total
2023 (remaining six months)	$	2,906	$	8,710	$	1,111	$	5,509	$	196	$	18,432
2024		5,811		17,677		2,247		11,018		421		37,174
2025		5,811		18,004		2,313		11,018		421		37,567
2026		5,811		18,370		2,357		986		421		27,945
2027		5,811		18,755		2,388		986		421		28,361
Thereafter		435,056		4,308,109		433,110		15,826		304		5,192,405

(1)

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party (Joint Venture) (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($) lease	Jun. 30, 2023 USD ($) lease	Jun. 30, 2022 USD ($)
Joint venture
Ground lease acquisition purchase price	$ 97,948		$ 430,517
Sovereign wealth fund \| Joint venture for new acquisitions of Ground Leases
Joint venture
Ownership percentage	45.00%	45.00%
Joint Venture for New Acquisitions of Ground Leases
Joint venture
Joint venture commitments		$ 275,000
Controlling interest in joint venture		55.00%
Percent of Promote fee		15.00%
Internal Rate of Return		9.00%
Promote fee cap percent	1.275	1.275
Investment period		18 months
Number of Ground Leases acquired \| lease	2	2
Ground lease acquisition purchase price		$ 38,500
Funded amount of Ground Lease acquisition	$ 14,500	$ 14,500
Joint Venture for New Acquisitions of Ground Leases \| First five year following acquisition
Joint venture
Percent of management fee		0.25%
Management fee term		5 years
Joint Venture for New Acquisitions of Ground Leases \| After five years of acquisition
Joint venture
Percent of management fee		0.15%
Joint Venture for New Acquisitions of Ground Leases \| Sovereign wealth fund
Joint venture
Joint venture commitments		$ 225,000

Business and Organization - Merger Transactions (Details) $ / shares in Units, $ in Millions			1 Months Ended	3 Months Ended
	Mar. 31, 2023 USD ($) director shares	Aug. 10, 2022 USD ($) $ / shares shares	Feb. 28, 2022 USD ($) shares	Mar. 31, 2023 USD ($) shares
Merger
Number of directors from Old SAFE entity on new post-merger board \| director	3
Number of management members from both Old SAFE and iStar entities on new post-merger board \| director	2
Caret Units
Merger
Number of shares to be sold under purchase commitment related to merger \| shares			28,571
Expected proceeds from sale of shares under purchase commitment related to merger			$ 5.0
MSD Partners \| Caret Units
Merger
Number of shares to be sold under purchase commitment related to merger \| shares		100,000
Expected proceeds from sale of shares under purchase commitment related to merger		$ 20.0
Purchase price adjustment credit on the sale of shares	$ 0.6
Star Holdings
Merger
Stated interest on term loan	8.00%			8.00%
Term on loan	4 years
Principal amount of term loan	$ 115.0			$ 115.0
Star Holdings \| Affiliated entity
Merger
Term on loan	4 years
Annual management fee - Year 1				25.0
Annual management fee - Year 2				15.0
Annual management fee - Year 3				10.0
Annual management fee - Year 4				$ 5.0
Annual management fee percent of gross book value, year five and thereafter				2.00%
Star Holdings
Merger
Cash received in spin off transaction	$ 50.0			$ 50.0
Shares in Old SAFE received in spin off transaction \| shares	13,500,000			13,500,000
Star Holdings \| Morgan Stanley Bank
Merger
Bank debt	$ 140.0			$ 140.0
Number of SAFE shares pledged as security on bank debt \| shares	13,500,000			13,500,000
Star Holdings \| Adjusted SOFR \| Morgan Stanley Bank
Merger
Basis point spread on variable interest rate (percent)	3.00%
Star Holdings \| Spinco Manager \| Affiliated entity
Merger
Annual management fee - Year 1	$ 25.0			$ 25.0
Annual management fee - Year 2	15.0			15.0
Annual management fee - Year 3	10.0			10.0
Annual management fee - Year 4	$ 5.0			$ 5.0
Annual management fee percent of gross book value, year five and thereafter	2.00%			2.00%
iStar Inc. \| MSD Partners
Merger
Number of shares to be sold under purchase commitment related to merger \| shares		5,405,406		5,405,406
Expected proceeds from sale of shares under purchase commitment related to merger		$ 200.0
Sale of stock, share price (in dollars per share) \| $ / shares		$ 37.00

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 26,827	$ 47,618
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	4,925	4,808
Stock-based compensation expense	12,670	1,465
Deferred operating lease income	(15,630)	(15,812)
Non-cash interest income from sales-type leases	(41,084)	(33,659)
Non-cash interest expense	7,421	5,977
Amortization of real estate-related intangibles, net	1,152	1,152
Provision for credit losses	2,289
Earnings from equity method investments	(9,069)	(4,528)
Distributions from operations of equity method investments	1,860	1,051
Amortization of premium, discount and deferred financing costs on debt obligations, net	3,623	2,676
Non-cash management fees	5,199	9,666
Other operating activities	242	2,496
Changes in assets and liabilities:
Changes in deferred expenses and other assets, net	(10,234)	263
Changes in accounts payable, accrued expenses and other liabilities	339	23,492
Cash flows (used in) provided by operating activities	(9,470)	46,665
Cash flows from investing activities:
Origination/acquisition of net investment in sales-type leases and Ground Lease receivables	(130,744)	(907,281)
Origination of loans receivable, net	(114,450)
Payment for merger consideration	(88,685)
Cash and cash equivalents acquired upon merger	3,213
Contributions to equity method investments	(18,362)	(2)
Funding reserves received from Ground Lease tenant net of disbursements	(218)	58,768
Net proceeds received from sale of real estate available and held for sale	1,631
Deposits on Ground Lease investments		(2,250)
Other investing activities	(8,211)	72
Cash flows used in investing activities	(355,826)	(850,693)
Cash flows from financing activities:
Proceeds from issuance of common stock		309,160
Proceeds from debt obligations	358,000	1,460,000
Repayments of debt obligations	0	(880,000)
Payments for deferred financing costs	(4,615)	(5,034)
Dividends paid to common shareholders	(22,144)	(20,200)
Payment of offering costs	(1,822)	(4,815)
Payments for withholding taxes upon vesting of stock-based compensation		(970)
Distributions to noncontrolling interests	(527)	(22)
Contributions from noncontrolling interests	30,439	18
Contributions from redeemable noncontrolling interests		19,000
Cash flows provided by financing activities	359,331	877,137
Changes in cash, cash equivalents and restricted cash	(5,965)	73,109
Cash, cash equivalents and restricted cash at beginning of period	48,390	38,516
Cash, cash equivalents and restricted cash at end of period	$ 42,425	$ 111,625

Equity

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Equity

Note 11—Equity

Common Stock—At the effective time of the Merger on March 31, 2023, each share of Old SAFE common stock issued and outstanding immediately prior to the effective time (other than any shares owned directly by iStar or any of the wholly-owned subsidiaries of iStar and in each case not held on behalf of third parties) was converted into the right to receive one share of newly issued common stock of the Company. As of June 30, 2023, the Company has one class of common stock outstanding.

In April 2023, the Company filed with the U.S. Securities and Exchange Commission (the “SEC”) an automatic shelf registration statement on Form S-3ASR. In addition, the Company and Portfolio Holdings entered into an ATM

Equity Offering Sales Agreement (the “Primary Sales Agreement”) with the sales agents named therein pursuant to which the Company may sell, from time to time, shares of its common stock, $0.01 par value per share (“Common Stock”), having an aggregate gross sales price of up to $300.0 million (the “Primary Shares”) through or to the sales agents. The Company may sell the Primary Shares in amounts and at times to be determined by the Company from time to time but has no obligation to sell any of the Primary Shares. Actual sales, if any, will depend on a variety of factors to be determined by the Company from time to time, including, among other things, market conditions, the trading price of the Common Stock, capital needs and determinations by the Company of the appropriate sources of its funding. Through June 30, 2023, the Company has not sold any shares of its common stock through the Primary Sales Agreement.

Equity Plans—Old SAFE adopted an equity incentive plan to provide equity incentive opportunities to members of the Former Manager’s management team and employees who performed services for Old SAFE, Old SAFE’s non-management directors, advisers, consultants and other personnel (the “2017 Equity Incentive Plan”). The 2017 Equity Incentive Plan provided for grants of stock options, shares of restricted common stock, phantom shares, dividend equivalent rights and other equity-based awards, including long-term incentive plan units. Grants under the 2017 Equity Incentive Plan were recognized as compensation costs ratably over the applicable vesting period and recorded in “General and administrative” in the Company’s consolidated statements of operations. Prior to the effective time of the Merger, Old SAFE awarded all shares of Old SAFE common stock remaining available for issuance under the 2017 Equity Incentive Plan to members of its Former Manager’s management team and employees who performed services for Old SAFE. As of June 30, 2023, there were no shares available for issuance for future awards under Old SAFE’s 2017 Equity Incentive Plan.

iStar’s amended and restated 2009 Long-Term Incentive Program (the “LTIP”) was approved by stockholders in 2021 and remained in effect after the closing of the Merger. The LTIP is designed to provide incentive compensation for officers, key employees, directors and advisors of the Company. The LTIP provides for awards of stock options, shares of restricted stock, phantom shares, restricted stock units, dividend equivalent rights and other share-based performance awards. All awards under the LTIP are made at the discretion of the Company’s Board of Directors. Grants under the LTIP are recognized as compensation costs ratably over the applicable vesting period and recorded in “General and administrative” in the Company’s consolidated statements of operations. In June 2023, the Company issued an aggregate 24,336 vested shares of its common stock with a grant date fair value of $23.58 per share to its directors in consideration for their annual service as directors. On June 20, 2023, the LTIP was further amended to, among other things, increase the aggregate number of shares of common stock available for issuance. As of June 30, 2023, an aggregate of 435,205 shares of the Company’s common stock remain available for awards under the LTIP.

During the third quarter of 2018, Old SAFE adopted, and in the second quarter of 2019, its stockholders approved, the Caret Performance Incentive Plan (the “Original Caret Performance Incentive Plan”). Under the Original Caret Performance Incentive Plan, 1,500,000 Caret units were reserved for grants of performance-based awards to Original Caret Performance Incentive Plan participants, including certain of executives of iStar, and Old SAFE’s directors and service providers. Grants under the Original Caret Performance Incentive Plan were subject to vesting based on time-based service conditions and hurdles relating to Old SAFE’s common stock price, all of which were satisfied as of December 31, 2022, except with respect to approximately 850 Caret units that are scheduled to vest on December 31, 2023. In connection with the Merger, certain of Old SAFE’s former executive officers, entered into re-vesting agreements pursuant to which the executives agreed to subject 25% of their previously vested Caret units to additional vesting conditions which will be satisfied on the second anniversary of the Merger, subject to the applicable executive’s continued employment through such date. In the event of a termination of the executive’s employment by the Company without “cause”, or due to the executive’s death, disability or retirement, the unvested Caret units shall continue to vest as and when the vesting conditions described above are satisfied.

In connection with the consummation of the Merger and the Caret Restructuring, Old SAFE, Caret Ventures and CARET Management Holdings LLC assigned each Award Agreement (as defined in the Original Caret Performance Incentive Plan) relating to outstanding Caret unit awards to Portfolio Holdings pursuant to the Omnibus Assignment, Assumption and Amendment Agreement, dated as of March 31, 2023 (the “Caret Assignment Agreement”).

Following the effectiveness of the Caret Assignment Agreement, Old SAFE amended and restated the Original Caret Performance Incentive Plan (the “Amended Caret Performance Incentive Plan”).

Prior to the Merger, the Old SAFE compensation committee, and following the Merger, the Company’s compensation committee, approved the award of 76,801 new Caret units to executive officers and other employees, other than the Company’s Chief Executive Officer and the Company’s President and Chief Investment Officer, including 15,000 Caret units to the Company’s Chief Financial Officer. The new Caret unit awards were granted immediately following the Merger and the effectiveness of the Amended Caret Performance Incentive Plan, and cliff vest on the fourth anniversary of their grant date if the Company’s common stock has traded at an average per share price of $60.00 or more for at least 30 consecutive trading days during that four-year period.

As of June 30, 2023, and after giving effect to the Caret Restructuring and the post-Merger Caret unit awards, Amended Caret Performance Incentive Plan participants held 1,499,432 Caret units, representing 15.41% of the then-outstanding Caret units and 12.50% of the then-authorized Caret units.

During the six months ended June 30, 2023 and 2022, the Company recognized $0.5 million and $0.3 million in expense from Caret units, which is recorded in “General and administrative” in the Company’s consolidated statements of operations and “Noncontrolling interests” on the Company’s consolidated balance sheets.

Noncontrolling Interests—Noncontrolling interests includes unrelated third-party equity interests in ventures that are consolidated in the Company’s consolidated financial statements and Caret units that have been sold to third-parties (refer to Note 1) or have been granted to employees of the Company’s Former Manager. See also “Redeemable Noncontrolling Interests” in Note 3.

Accumulated Other Comprehensive Income (Loss)—Accumulated other comprehensive income (loss) consists of net unrealized gains (losses) on the Company’s derivative transactions.

Dividends—The Company (then known as iStar) elected to be taxed as a REIT beginning with its taxable year ended December 31, 1998. To qualify as a REIT, the Company must annually distribute, at a minimum, an amount equal to 90% of its taxable income, excluding net capital gains, and must distribute 100% of its taxable income (including net capital gains) to eliminate corporate federal income taxes payable by the REIT. Because taxable income differs from cash flow from operations due to non-cash revenues and expenses (such as depreciation and other items), in certain circumstances, the Company may generate operating cash flow in excess of its dividends, or alternatively, may need to make dividend payments in excess of operating cash flows. During the six months ended June 30, 2023 and 2022, the Company declared cash dividends on its common stock of $22.6 million, or $0.354 per share, and $21.5 million, or $0.347 per share, respectively.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Business and Organization (Details)	6 Months Ended
Business and Organization (Details)	Jun. 30, 2023 segment	Mar. 31, 2023 employee
Business Acquisition [Line Items]
Number of reportable segments \| segment	1
Minimum
Business Acquisition [Line Items]
Ground leases term	30 years
Ground lease investment initial targeted value of ground lease of combined value	30.00%
Ground lease, ratio of property net operating income to ground lease payments due	2.0
Percentage cap for Ground Lease rent increases based on consumer price index	3.00%
Maximum
Business Acquisition [Line Items]
Ground leases term	99 years
Ground lease investment initial targeted value of ground lease of combined value	45.00%
Ground lease, ratio of property net operating income to ground lease payments due	4.5
Percentage cap for Ground Lease rent increases based on consumer price index	3.50%
Safehold, Inc. (Old SAFE)
Business Acquisition [Line Items]
Number of employees \| employee		0

Risk Management and Derivatives (Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Asset	$ 41,690		$ 41,690		$ 29,346
Cash flow hedge gain (loss) to be reclassified within twelve months			5,400
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income	34,221	$ 6,772	5,797	$ 11,028
Interest rate swap \| Deferred expenses and other assets, net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross Asset	$ 41,690		$ 41,690		$ 29,346

Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9—Commitments and Contingencies

Lease Commitments—Future minimum lease obligations under non-cancelable operating leases as of June 30, 2023 are as follows ($ in thousands):⁽¹⁾


2023 (remaining six months)	$	2,863
2024		5,692
2025		5,680
2026		—
2027		—
Thereafter		—
Total undiscounted cash flows		14,235
Present value discount⁽¹⁾		(1,294)
Other adjustments⁽²⁾		5,401
Lease liabilities	$	18,342

(1)

(2)

Unfunded Commitments—The Company has unfunded commitments to certain of its Ground Lease tenants related to leasehold improvement allowances that it expects to fund upon the completion of certain conditions. As of June 30, 2023, the Company had $250.6 million of such commitments, excluding commitments to be funded by noncontrolling interests.

The Company also has unfunded forward commitments related to agreements that it entered into for the acquisition of new Ground Leases or additions to existing Ground Leases if certain conditions are met (refer to Note 13). These commitments may also include leasehold improvement allowances that will be funded to the Ground Lease tenants when certain conditions are met. As of June 30, 2023, the Company had an aggregate $271.2 million of such commitments. There can be no assurance that the conditions to closing for these transactions will be satisfied and that the Company will acquire the Ground Leases or fund the leasehold improvement allowances.

Other Commitments—Through the Leasehold Loan Fund, the Company will generally fund construction and development loans and build-outs of space in real estate assets over a period of time if and when the borrowers and tenants meet established milestones and other performance criteria. We refer to these arrangements as performance-based commitments. As of June 30, 2023, the Company had $127.7 million of such commitments.

Legal Proceedings—The Company evaluates developments in legal proceedings that could require a liability to be accrued and/or disclosed. Based on its current knowledge, and after consultation with legal counsel, the Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding that would have a material adverse effect on the Company’s consolidated financial statements.

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Net Investment in Sales Type Leases

The Company’s net investment in sales-type leases were comprised of the following ($ in thousands):


	June 30, 2023		December 31, 2022
Total undiscounted cash flows	$	29,741,069	$	29,586,227
Unguaranteed estimated residual value		2,915,013		2,900,218
Present value discount		(29,487,782)		(29,379,846)
Allowance for credit losses		(336)		—
Net investment in sales-type leases⁽¹⁾	$	3,167,964	$	3,106,599

(1)	As of June 30, 2023, $6.5 million was attributable to noncontrolling interests.

Schedule of rollforward of net investment in sales-type leases and Ground Lease receivables

The following table presents a rollforward of the Company’s net investment in sales-type leases and Ground Lease receivables for the six months ended June 30, 2023 and 2022 ($ in thousands):


	Net Investment in		Ground Lease
	Sales-type Leases		Receivables		Total
Six Months Ended June 30, 2023
Beginning balance	$	3,106,599	$	1,374,716	$	4,481,315
Impact from adoption of new accounting standard (refer to Note 3)		(351)		(199)		(550)
Origination/acquisition/fundings⁽¹⁾		33,122		97,948		131,070
Accretion		28,579		12,505		41,084
(Provision for) recovery of credit losses		15		(22)		(7)
Ending balance⁽²⁾	$	3,167,964	$	1,484,948	$	4,652,912


	Net Investment in		Ground Lease
	Sales-type Leases		Receivables		Total
Six Months Ended June 30, 2022
Beginning balance	$	2,412,716	$	796,252	$	3,208,968
Origination/acquisition/fundings⁽¹⁾		474,281		430,517		904,798
Accretion		24,684		8,975		33,659
Ending balance	$	2,911,681	$	1,235,744	$	4,147,425

(1)

(2)

Schedule of changes in allowance for credit losses on net investment in sales-type leases and Ground Lease receivables


	Net investment in sales-type leases
	Stabilized		Development		Unfunded
Three Months Ended June 30, 2023	Properties		Properties		Commitments		Total
Allowance for credit losses at beginning of period	$	255	$	70	$	1	$	326
Provision for credit losses⁽¹⁾		4		7		—		11
Allowance for credit losses at end of period⁽²⁾	$	259	$	77	$	1	$	337


	Ground Lease receivables
	Stabilized		Development		Unfunded
Three Months Ended June 30, 2023	Properties		Properties		Commitments		Total
Allowance for credit losses at beginning of period	$	93	$	102	$	63	$	258
Provision for (recovery of) credit losses⁽¹⁾		1		25		(3)		23
Allowance for credit losses at end of period⁽²⁾	$	94	$	127	$	60	$	281


	Net investment in sales-type leases
	Stabilized		Development		Unfunded
Six Months Ended June 30, 2023	Properties		Properties		Commitments		Total
Allowance for credit losses at beginning of period	$	—	$	—	$	—	$	—
Impact from adoption of new accounting standard (refer to Note 3)⁽³⁾		280		71		6		357
Provision for (recovery of) credit losses⁽¹⁾		(21)		6		(5)		(20)
Allowance for credit losses at end of period⁽²⁾	$	259	$	77	$	1	$	337


	Ground Lease receivables
	Stabilized		Development		Unfunded
Six Months Ended June 30, 2023	Properties		Properties		Commitments		Total
Allowance for credit losses at beginning of period	$	—	$	—	$	—	$	—
Impact from adoption of new accounting standard (refer to Note 3)⁽³⁾		102		97		84		283
Provision for (recovery of) credit losses⁽¹⁾		(8)		30		(24)		(2)
Allowance for credit losses at end of period⁽²⁾	$	94	$	127	$	60	$	281

(1)

(2)	Allowance for credit losses on unfunded commitments is recorded in “Accounts payable and accrued expenses” on the Company’s consolidated balance sheets.

(3)

Amortized Cost Basis in Ground Lease Receivables

The Company’s amortized cost basis in Ground Lease receivables, presented by year of origination and by stabilized or development status, was as follows as of June 30, 2023 ($ in thousands):


	Year of Origination
	2023		2022		2021		2020		2019		Prior to 2019		Total
Ground Lease receivables
Stabilized properties	$	—	$	523,491	$	238,734	$	179,092	$	445,730	$	—	$	1,387,047
Development properties		1		63,868		34,253		—		—		—		98,122
Total	$	1	$	587,359	$	272,987	$	179,092	$	445,730	$	—	$	1,485,169

Future Minimum Lease Payments Under Sales-type Leases


					Fixed Bumps
	Fixed Bumps				with
	with Inflation		Fixed		Percentage
	Adjustments		Bumps		Rent		Total
2023 (remaining six months)	$	49,341	$	1,117	$	292	$	50,750
2024		101,639		2,256		586		104,481
2025		103,607		2,283		586		106,476
2026		105,567		2,311		586		108,464
2027		107,475		2,339		586		110,400
Thereafter		28,577,374		583,455		99,669		29,260,498
Total undiscounted cash flows	$	29,045,003	$	593,761	$	102,305	$	29,741,069

Recognized Interest Income from Sales type Leases

During the three and six months ended June 30, 2023 and 2022, the Company recognized interest income from sales-type leases in its consolidated statements of operations as follows ($ in thousands):


	Net Investment		Ground
	in Sales-type		Lease
Three Months Ended June 30, 2023	Leases		Receivables		Total
Cash	$	25,168	$	12,286	$	37,454
Non-cash		14,353		6,351		20,704
Total interest income from sales-type leases	$	39,521	$	18,637	$	58,158


	Net Investment		Ground
	in Sales-type		Lease
Three Months Ended June 30, 2022	Leases		Receivables		Total
Cash	$	21,935	$	8,501	$	30,436
Non-cash		12,979		4,832		17,811
Total interest income from sales-type leases	$	34,914	$	13,333	$	48,247


	Net Investment		Ground
	in Sales-type		Lease
Six Months Ended June 30, 2023	Leases		Receivables		Total
Cash	$	50,050	$	24,090	$	74,140
Non-cash		28,575		12,505		41,080
Total interest income from sales-type leases	$	78,625	$	36,595	$	115,220


	Net Investment		Ground
	in Sales-type		Lease
Six Months Ended June 30, 2022	Leases		Receivables		Total
Cash	$	41,761	$	15,858	$	57,619
Non-cash		24,684		8,975		33,659
Total interest income from sales-type leases	$	66,445	$	24,833	$	91,278

Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Interest income from sales-type leases

^[1]

$ 58,158

$ 48,247

$ 115,220

$ 91,278

Other Income

^[2]

8,372

185

8,738

551

General and administrative

^[3]

18,916

10,458

33,983

19,651

Related party

Interest income from sales-type leases

2,100

General and administrative

8,000

$ 9,500

21,000

$ 17,400

Related party | Management fees

Other Income

$ 7,200

[1]	For the six months ended June 30, 2022, the Company recorded $2.1 million of “Interest income from sales-type leases” in its consolidated statements of operations from Ground Leases with iStar Inc. (“iStar”).
[2]	For the three and six months ended June 30, 2023, includes $7.2 million of management fees from related parties.
[3]	For the three months ended June 30, 2023 and 2022, includes $8.0 million and $9.5 million, respectively, of general and administrative expenses incurred to related parties that includes management fees, expense reimbursements to the Former Manager (refer to Note 1) and equity-based compensation (including equity-based compensation to employees). For the six months ended June 30, 2023 and 2022, includes $21.0 million and $17.4 million, respectively, of general and administrative expenses incurred to related parties that includes management fees, expense reimbursements to the Former Manager (refer to Note 1) and equity-based compensation (including equity-based compensation to employees).

Earnings Per Share (Earnings Allocable to Common Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator for basic and diluted earnings per share:
Net income attributable to Safehold Inc. common shareholders - basic	$ 22,130	$ 22,678	$ 26,812	$ 47,551
Net income attributable to Safehold Inc. common shareholders - diluted	$ 22,130	$ 22,678	$ 26,812	$ 47,551
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding for basic earnings (in shares)	63,944,000	63,252,000	63,809,000	61,279,000
Weighted average common shares outstanding for diluted earnings per common share (in shares)	63,944,000	63,252,000	63,809,000	61,279,000
Basic and diluted earnings per common share:
Net income attributable to Safehold Inc. common shareholders - basic	$ 0.35	$ 0.36	$ 0.42	$ 0.78
Net income attributable to Safehold Inc. common shareholders - diluted	$ 0.35	$ 0.36	$ 0.42	$ 0.78
Restricted stock units that are anti-dilutive	452		456

Summary of Significant Policies (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Fair Value, by Balance Sheet Grouping

The following table presents the carrying value and fair value for the Company’s financial instruments ($ in millions):


	As of June 30, 2023				As of December 31, 2022
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Net investment in sales-type leases⁽¹⁾	$	3,168	$	3,381	$	3,107	$	3,236
Ground Lease receivables⁽¹⁾		1,485		1,669		1,375		1,501
Loans receivable, net - related party⁽¹⁾		112		112		—		—
Cash and cash equivalents⁽²⁾		14		14		20		20
Restricted cash⁽²⁾		28		28		28		28

Liabilities
Debt obligations, net⁽¹⁾
Level 1		739		579		738		573
Level 3		3,243		2,810		2,783		2,358
Total debt obligations, net		3,982		3,389		3,521		2,931

(1)

(2)	The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values and are classified as Level 1 within the fair value hierarchy.

Schedule of Purchase Consideration for Acquisition of iStar

The table below shows the Company’s purchase consideration for the acquisition of iStar ($ in thousands):


Total Company shares as purchase price⁽¹⁾		1,195,034
Stock price of the Company’s common stock⁽²⁾	$	29.78
Fair value of the Company's stock transferred		35,588
Cash consideration paid by the Company to iStar		88,685
Purchase consideration	$	124,273

(1)

(2)	Based on the closing price of Old SAFE’s common stock as of March 30, 2023, representing the final closing price prior to the effective time of the Merger.

Schedule of Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed


	Preliminary		Measurement		Revised
	Purchase Price Allocation		Period Adjustments		Purchase Price Allocation
Cash and cash equivalents	$	3,213	$	—	$	3,213
Real estate		1,508		—		1,508
Equity investments⁽¹⁾		61,247		—		61,247
Deferred tax asset⁽²⁾		—		6,292		6,292
Deferred expenses and other assets⁽³⁾		25,442		—		25,442
Total assets acquired		91,410		6,292		97,702

Accounts payable, accrued expenses and other liabilities⁽⁴⁾		(22,939)		—		(22,939)
Debt obligations⁽⁵⁾		(99,995)		—		(99,995)
Total liabilities assumed		(122,934)		—		(122,934)

Net identifiable (liabilities assumed) assets acquired		(31,524)		6,292		(25,232)

Purchase consideration	$	124,273	$	—	$	124,273
Add: net identifiable liabilities assumed		31,524		(6,292)		25,232
Goodwill⁽⁶⁾		155,797		(6,292)		149,505

(1)	Equity investments were valued using discount rates between 7.2% and 13.9% and are classified as Level 3 within the fair value hierarchy.

(2)

(3)

(4)

(5)	Debt obligations were valued using a discount rate of 6.7% and are classified as Level 3 within the fair value hierarchy.

(6)	Goodwill is calculated as the excess of purchase consideration over the fair value of the net identifiable assets acquired and primarily relates to the acquisition of iStar’s workforce and future synergies expected to be realized after the completion of the Merger.

Schedule of Pro Forma Revenues and Net Income (Loss)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Pro forma revenues	$	85,661	$	75,627	$	182,917	$	145,220
Pro forma net income (loss)		22,111		(89,865)		56,434		(163,478)



(1)	The pro forma revenues and net income (loss) are presented for informational purposes only and may not be indicative of what the actual results of operations of the Company would have been assuming the transaction occurred on January 1, 2022, nor do they purport to represent the Company’s results of operations for future periods. For the six months ended June 30, 2022, pro forma net loss includes $47.7 million of merger expenses (including $20.3 million of merger expenses borne by iStar), which are non-recurring in nature. For the three and six months ended June 30, 2022, pro forma net loss includes $116.6 million and $158.7 million, respectively, of losses on extinguishment of debt, which are non-recurring in nature. From the date of the Merger closing through June 30, 2023, $0.1 million of total revenues and $4.6 million of net income of the acquiree are included in the Company’s consolidated statements of operations.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Jul. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-15371
Entity Registrant Name	Safehold Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	95-6881527
Entity Address, Address Line One	1114 Avenue of the Americas
Entity Address, Address Line Two	39th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10036
City Area Code	212
Local Phone Number	930-9400
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	SAFE
Security Exchange Name	NYSE
Common Stock, Shares, Outstanding		63,965,605
Entity Central Index Key	0001095651
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated and Combined Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands

Jun. 30, 2023

Dec. 31, 2022

Net investment in sales-type leases, allowances

$ 336

$ 0

Ground Lease receivables, allowances

221

$ 0

Loans receivable, net - related party, allowances

$ 2,311

Common stock, par value (in dollars per share)

$ 0.01

Common stock, shares authorized (in shares)

400,000

Common stock, shares issued (in shares)

63,966

62,397

Common stock, shares outstanding (in shares)

63,966

62,397

Deferred expenses and other assets, net

^[1],[2]

$ 106,086

$ 67,564

Accounts payable, accrued expenses and other liabilities

^[2],[3]

119,797

100,357

Related party

Deferred expenses and other assets, net

$ 8,100

Accounts payable, accrued expenses and other liabilities

$ 8,500

[1]	As of June 30, 2023, includes $8.1 million due from related parties.
[2]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).
[3]	As of December 31, 2022, includes $8.5 million due to related parties.

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Net income	$	22,111	$	22,711	$	26,827	$	47,618
Net (income) attributable to noncontrolling interests		19		(33)		(15)		(67)
Net income attributable to Safehold Inc. common shareholders for basic and diluted earnings per common share	$	22,130	$	22,678	$	26,812	$	47,551


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Earnings attributable to common shares:
Numerator for basic and diluted earnings per share:
Net income attributable to Safehold Inc. common shareholders - basic	$	22,130	$	22,678	$	26,812	$	47,551
Net income attributable to Safehold Inc. common shareholders - diluted	$	22,130	$	22,678	$	26,812	$	47,551

Denominator for basic and diluted earnings per share:⁽¹⁾
Weighted average common shares outstanding for basic earnings per common share		63,944		63,252		63,809		61,279
Weighted average common shares outstanding for diluted earnings per common share		63,944		63,252		63,809		61,279

Basic and diluted earnings per common share:⁽¹⁾
Net income attributable to Safehold Inc. common shareholders - basic	$	0.35	$	0.36	$	0.42	$	0.78
Net income attributable to Safehold Inc. common shareholders - diluted	$	0.35	$	0.36	$	0.42	$	0.78

(1)

Net Investment in Sales-type Leases, Ground Lease Receivables and Loans Receivable, net - Related Party - Ground lease receivable by year of origination (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Lessor, Lease, Description [Line Items]
2023	$ 1
2022	587,359
2021	272,987
2020	179,092
2019	445,730
Total	1,485,169
Stabilized properties
Lessor, Lease, Description [Line Items]
2022	523,491
2021	238,734
2020	179,092
2019	445,730
Total	1,387,047
Development properties
Lessor, Lease, Description [Line Items]
2023	1
2022	63,868
2021	34,253
Total	$ 98,122

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale (Intangibles) (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Jun. 30, 2023

Jun. 30, 2022

Dec. 31, 2022

Finite-Lived Intangible Assets [Line Items]

Gross Intangible

$ 252,097

Accumulated Amortization

(37,651)

(34,302)

Carrying Value

^[1]

214,446

217,795

Below-market lease liabilities - Gross Intangible

68,618

Below-market lease liabilities - Accumulated Amortization

(4,446)

(4,027)

Below-market lease liabilities - Carrying Value

^[1]

64,172

64,591

Amortization of real estate related intangible liabilities

2,023

$ 2,022

Above-market lease assets, net

Finite-Lived Intangible Assets [Line Items]

Gross Intangible

186,002

Accumulated Amortization

(16,821)

(15,254)

Carrying Value

169,181

170,748

Above-market lease assets, net | Operating Lease Income

Finite-Lived Intangible Assets [Line Items]

Amortization of real estate related intangible liabilities

784

$ 784

1,567

In-place lease assets, net

Finite-Lived Intangible Assets [Line Items]

Gross Intangible

65,345

Accumulated Amortization

(20,789)

(19,011)

Carrying Value

44,556

46,334

In-place lease assets, net | Depreciation and amortization

Finite-Lived Intangible Assets [Line Items]

Amortization of real estate related intangible liabilities

889

897

1,778

1,789

Below-market lease | Operating Lease Income

Finite-Lived Intangible Assets [Line Items]

Amortization of real estate related intangible liabilities

209

419

Other intangible assets, net

Finite-Lived Intangible Assets [Line Items]

Gross Intangible

750

Accumulated Amortization

(41)

(37)

Carrying Value

709

$ 713

Other intangible assets, net | Operating Lease Income

Finite-Lived Intangible Assets [Line Items]

Amortization of real estate related intangible liabilities

$ 2

$ 4

[1]	Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”).

Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities

Note 7—Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities

Deferred expenses and other assets, net, consist of the following items ($ in thousands):


	As of
	June 30, 2023		December 31, 2022
Operating lease right-of-use asset⁽¹⁾	$	36,015	$	26,312
Interest rate hedge assets		41,690		29,346
Deferred finance costs, net⁽²⁾		6,371		4,461
Other assets⁽³⁾		16,046		2,664
Purchase deposits		4,333		4,333
Leasing costs, net		444		448
Corporate furniture, fixtures and equipment, net		1,187		—
Deferred expenses and other assets, net	$	106,086	$	67,564

(1)

(2)	Accumulated amortization of deferred finance costs was $8.3 million and $5.7 million as of June 30, 2023 and December 31, 2022, respectively.

(3)	As of June 30, 2023, includes $7.2 million of management fees due from Star Holdings.

Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands):


	As of
	June 30, 2023		December 31, 2022
Interest payable	$	63,209	$	55,459
Other liabilities⁽¹⁾		16,182		17,639
Dividends declared and payable		11,496		11,067
Operating lease liability⁽²⁾		18,342		5,471
Management fee payable		—		5,301
Accrued expenses⁽³⁾		10,568		5,420
Accounts payable, accrued expenses and other liabilities	$	119,797	$	100,357

(1)	As of December 31, 2022, other liabilities include $3.1 million due to the Former Manager for allocated payroll costs and costs it paid on the Company’s behalf.

(2)	Refer to Note 9.

(3)	As of June 30, 2023, accrued expenses includes accrued compensation, legal, audit and property expenses. As of December 31, 2022, accrued expenses includes accrued legal, audit and property expenses.