None of them will reflect the time spent, depth of research, or degree of communication with management that lie behind what you find here. This article to the public site, delayed a few days, is focused on the main points and the end of the story. It may help you decide whether to invest, or whether to come learn more details from the article linked above and future coverage. Yes, today, inflation is way higher at 8%+, but this is largely due to temporary issues caused by the pandemic and war in Ukraine, which won’t last forever. The market is only worrying about the asset side of the balance sheet and forgetting about the liabilities, which in this case provides a great inflation hedge.

• Others have seemed to think that those units were entirely owned by management as a vehicle to rip off the shareholders, or that they granted shares of common SAFE stock to management This is not correct.
• Safehold’s portfolio includes senior and mezzanine real estate loans, senior and subordinated loans to corporations, whole loans, loan participations and debt securities.
• Tomi Kilgore is MarketWatch’s deputy investing and corporate news editor and is based in New York.
• A modern ground lease has to protect the interest of four parties, the landlord, the building owner, and one lender for each of them.
• We have long been convinced that the real value of SAFE, and by implication of STAR, has been far above its present price.
• Special committees of the two Boards, including only external directors, got together (25 times!) and played “let’s make a deal”.

SAFE undertakes no obligation to update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. This press release should be read in conjunction with our consolidated financial statements and related https://forex-reviews.org/ notes in our Annual Report on Form 10-K, as amended by Form 10K/A (“Form 10-K”), for the year ended December 31, 2022. A modern ground lease has to protect the interest of four parties, the landlord, the building owner, and one lender for each of them.

Other members made decisions about whether to hold SAFE or STAR going forward. SAFE seems the more secure choice, with lots to go right and little to go wrong. But STAR will pay off more strongly if the disposition of those legacy assets is faster or more https://forex-review.net/ lucrative than the base plan describes. At the valuation of $2B, this translates to $27 per share (59% of the close for SAFE last Friday.) And you can bet that MSD Partners sees the Caret units as undervalued and likely to increase in value from here.

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Overall, the industry employs over 35,000 people and rakes in around $4 billion annually. Others have seemed to think that those units were entirely owned by management as a vehicle to rip off the shareholders, or that they granted shares of common SAFE stock to management This is not correct. As described in my previous articles, writing such ground leases creates a lot of value.

• The three main legacy assets will be Asbury Park, Magnolia Green, and an oceanfront parcel in the entertainment district of Coney Island.
• Prices and returns on equities are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling.
• The intent was to use the assets of iStar to support the explosive growth of Safehold to a self-sufficient size.

This applies every bit as much to businesses using real estate as to those using computers. Ground leases reduce the capital needed to buy or construct the buildings needed by a business, increasing the return on equity. 29% is obviously far greater than the current inflation rate so that’s additional protection.

1 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for iStar in the last twelve months. The consensus among Wall Street analysts is that investors should “hold” STAR shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in STAR, but not buy additional shares or sell existing shares. Paul is one of the analysts at the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts. It is the same as saying that a trust fund that you will receive sometime in the future has no value today because you don’t have access to it.

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Safehold will also get a bit of income as a management fee from SpinCo, discussed next, during the years it takes to wind that down. And if you exclude the value of the shares of SAFE it holds, the book value of iStar is negative (see the Q Earnings Call Presentation). This made it time to internalize the management of Safehold and find a way to liquidate iStar. The share price of SAFE has dropped significantly over the past months and it has also dragged STAR’s shares lower. There is one more factor that provides long-term inflation protection.

What the Rideau Canal’s ice woes tell us for Canada’s winter sport future

Michael Dell’s family office is one of the most respected investors out there in the landscape, and certainly in the family office space. And they are investing 200 million into New Safehold, via their purchase of iStar SAFE shares. The bottom line is that STAR enjoys better inflation protection than the market is giving it credit for. The market is focused on the fixed rent hikes but appears to ignore or at least overlook how the 2-1 fixed rate leverage, CPI lookback, the UCA, and spread investing offer additional inflation hedging benefits. This press release should be read in conjunction with our consolidated financial statements and related notes in our Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2022.

Safehold Inc (Safehold), formerly iStar Inc, is a real estate finance and investment company. It develops, finances and invests in real estate and commercial real estate-related projects. The company provides financing to private and corporate owners of real estate. Safehold’s portfolio includes senior and mezzanine real estate loans, senior and subordinated loans to corporations, whole loans, loan participations and debt securities. It also offers management services for its ground lease investments.

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Where they ended up does not please everyone, but that will soon be water under the bridge. Ground leases have been used for centuries by the wealthy in Europe and especially https://forexbroker-listing.com/ Britain. They have enabled landowners to protect their assets while taking income from them. You will find on SA, now and later, other comments on this combination.

‘Panic’ on disinflation and a Catch-22 for risk in ’24 – J.P. Morgan’s Kolanovic

Prior to the distribution, shares of iStar common stock that trade in the “regular way” market on the New York Stock Exchange (“NYSE”) will trade with the right to receive Star Holdings common shares on the distribution date. After completion of the distribution and the merger, Star Holdings’ common shares will begin trading regular way on the Nasdaq and New Safe common stock will begin trading regular way on the NYSE. Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although SAFE believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.

According to Daniel Scott, some years provide a window into what the Canadian winter will look like in the future. Experts believe the fate of the Rideau Canal Skateway is a portent for all winter sports in Canada. The average skating season on the canal is 50 days but has been getting shorter over the years as temperatures rise. Last year, for the first time in the Skateway’s 52-year history, there was no skating season on the canal. On Tuesday, the NCC put out an alert for residents to keep off the ice, as winter is not quite here yet.

The Caret units hold the rights to the value of the eventual return of assets to Safehold. (More precisely, they hold rights to all earnings of Safehold beyond that from the ground-lease rents.) Common shareholders of SAFE will own, after that sale, about 83% of the Caret units. Existing holders of STAR shares will own 37% of Safehold directly, and 14% indirectly through SpinCo. Whatever value the get from the legacy assets, net of debt, will be small compared to likely appreciation of their SAFE holdings. Safehold will be almost entirely a pure-play, ground-lease company and soon should have a credit rating at the A level. They will issue debt and equity and use those funds to grow their ground-lease portfolio.