SAFE

Business Context and Reporting Period

This Form 8-K Current Report was filed by Safehold Inc. on July 30, 2026, regarding events occurring as of June 30, 2026. Safehold Inc. (formerly iStar Inc. following a 2023 merger) operates as a ground lease investment company, owning properties through Safehold GL Holdings LLC. The filing primarily discloses an updated estimate of the company's Unrealized Capital Appreciation (UCA) in its owned residual portfolio.

Key Financial Metrics

The filing provides specific valuation metrics for the owned residual portfolio as of June 30, 2026. Standard financial metrics such as revenue, net income, operating cash flow, and debt levels are not disclosed in this specific report.

Note: Combined Property Value includes applicable percentage interests in unconsolidated ventures, two recently expired lease properties now operated by the company, and $1,007.6 million related to unfunded commitments. Ground Lease Cost includes $188.5 million of unfunded commitments.

Material Changes and Valuation Methodology

The filing details the methodology used to determine the UCA, which represents the aggregate Combined Property Value in excess of the aggregate cost basis. Independent valuations are conducted by CBRE, Inc., utilizing sales comparison and income capitalization approaches. Key valuation assumptions by property type include:

• Hotels: Stabilized occupancy 66.00% - 86.00%; Going-in cap rates 5.25% - 8.75%.
• Office: Stabilized occupancy 80.00% - 99.00%; Overall cap rates 5.50% - 12.00%.
• Multi-Family: Stabilized occupancy 91.00% - 98.00%; Overall cap rates 4.50% - 6.25%.
• Life Science: Stabilized occupancy 90.00% - 96.00%; Overall cap rates 6.00% - 7.00%.

The filing does not provide a direct numerical comparison to the prior period's UCA, though it notes that rolling valuations may not reflect current market conditions and values may decline materially in the future.

Outlook, Risks, and Contingencies

Management emphasizes that the UCA is a non-GAAP measure not subject to independent audit and that there is no assurance the company will realize incremental value from it. Significant risks and contingencies include:

• Tenant Rights: Certain leases contain provisions that may limit realized value, including tenant rights to level buildings, purchase properties, or exercise buy-out options (e.g., a buy-out option in year 49 of one lease).
• Valuation Limitations: The company relies on tenant-supplied information and does not independently verify it. Valuations assume hypothetical fee simple ownership and stabilized market rents, which may differ from actual conditions.
• Operational Risks: Upon lease expiration, the company may assume operating responsibilities (taxes, insurance, maintenance) for properties, introducing new cost structures.
• Market Correlation: While management believes commercial real estate values correlate with inflation, specific asset values depend on location and lease terms.

Equity Incentives: As of June 30, 2026, the company owns 83.4% of outstanding Caret units. Certain units granted to executives in 2023 are subject to cliff vesting on March 31, 2027, contingent on the stock price averaging $60.00 or more for 30 consecutive trading days.

Investor Verification Checklist

• Verify the specific valuation assumptions (cap rates, occupancy) used by CBRE for the company's largest ground lease assets.
• Review the "Risk Factors" section of the 2025 Annual Report (Form 10-K) for detailed disclosures on tenant rights that may limit UCA realization.
• Confirm the status of the two properties with recently expired leases now operated by Safehold and their impact on future cash flows.
• Monitor the stock price performance relative to the $60.00 threshold required for the vesting of executive Caret units in March 2027.
• Assess the impact of unfunded commitments ($1,007.6 million in value, $188.5 million in cost) included in the UCA calculation.