Safehold reported a decrease in investment activity from $1.2 billion in the last three months of 2019 to just $77 million for ground leases this quarter. The iStar-managed ground lease REIT is gearing up for unique opportunities this market will present, and have already engaged with landlords who are in need of liquidity.
- Steady and secure: The firm’s income from existing ground leases has held steady, and the firm has collected 100 percent of ground rent due in April, with less than 2 percent of leasehold tenants having made inquiries about possible relief, TRD noted. Safehold’s shares are up 26.4% year to date.
- Heard on the Street: CEO Jay Sugarman: “We’re certainly concerned that the hospitality industry is going to struggle to come back as quickly. Some of these assets are in very good markets, but reading the tea leaves from all the hospitality folks we talk to, it’s not going to be a snap back here.” The Hotel sector makes up 19 percent of the company’s portfolio.