Another Player Joins the Ground Lease Crowd; Comments on a Clean JV Transaction with Brookfield

Research evidence excerpt

Another Player Joins the Ground Lease Crowd; Comments on a Clean JV Transaction with Brookfield

REITs

Safehold Inc. (SAFE)

EQUITY RESEARCH Company Update

June 15, 2026

Another Player Joins the Ground Lease Crowd; Price: 15.81

Price Target: $16.00 Comments on a Clean JV Transaction with Brookfield

Rating: Neutral

SUMMARY: SAFE announced the formation of a $348mm joint venture

Key Statistics: with Brookfield (BN, NC) on seven ground leases (with multifamily as

Symbol NYSE: SAFE the leasehold) in seven markets, whereby SAFE will retain 51% of the 52-Week Range 12.76 - 17.16

contributed assets. Net proceeds of ~$170mm initially addresses leverage Dividend Yield 4.5%

Debt/EBITDA 2.0x being slightly above the 2x debt-to-equity target, but we believe this could

NAV/Share $16.44 be the first chapter in the book of activity with Brookfield. Important to us is

Market Cap 1,132.2 the lack of a CARET event in the sale of partial interest, as discussed below.

ADV (3 mo) 357,437 Here are the key highlights as we see them:

EV ($M) 5,835

Shares Out (M) 71.6 ●Alternative Access to Equity Capital: The collection of assets in this

new JV reads as very middle-of-the-road, meaning neither prized nor

Research Analysts: bottom of the barrel within SAFE's existing portfolio. Brookfield's new

Richard Anderson alignment with SAFE allows it to get its foot in the Ground Lease door

929-441-6927 with an established platform, which also aligns well with insurance-

Richard.Anderson@cantor.com type capital (i.e., high-grade credit).

Jay Kornreich

718-865-3439 ●Pricing of the Sale: About $14mm of cash rents on the seven assets

Jay.Kornreich@cantor.com equates to a 4.1% cap rate (6%-6.5% on a GAAP basis). By comparison,

Jeffrey Carr with SAFE stock trading at ~9x forward EPS per our estimates, that