Safehold Closes 20th Affordable Housing Ground Lease, First in Texas

Rhea-AI Summary

Safehold (NYSE: SAFE) closed its 20th Affordable Housing ground lease for a Low-Income Housing Tax Credit development in Austin, Texas, marking Safehold's first transaction in Texas.

The project, developed by The NRP Group, will deliver 348 units in 2028 and contributes to Safehold's Affordable Housing portfolio of 3,100+ units. Safehold launched a dedicated Affordable Housing team in 2025 and says it will continue expanding its low-cost ground lease capital across the U.S.

Positive

• Closed 20th LIHTC ground lease, showing sector experience
• Project adds 348 units scheduled for delivery in 2028
• Portfolio now facilitates over 3,100 Affordable units
• First Affordable Housing ground lease in Texas, expanding geographic footprint

Negative

• None.

Key Figures

Affordable units in Austin project: 348 units LIHTC ground leases: 20th ground lease Affordable units facilitated: over 3,100 units +2 more

5 metrics

Affordable units in Austin project 348 units Low-Income Tax Credit development delivering in 2028

LIHTC ground leases 20th ground lease Total LIHTC sector ground leases after this transaction

Affordable units facilitated over 3,100 units Affordable housing units supported by 20 LIHTC ground leases

Project delivery year 2028 Expected completion of Austin affordable housing community

Affordable Housing team launch 2025 Year Safehold established dedicated Affordable Housing team

Market Reality Check

Price: $15.13 Vol: Volume 256,633 is below t...

normal vol

$15.13 Last Close

Volume Volume 256,633 is below the 20-day average of 332,542 (relative volume 0.77x) ahead of this announcement. normal

Technical Shares at $15.21 trade above the 200-day MA of $14.93 but remain 22.12% below the 52-week high of $19.53.

Peers on Argus

SAFE fell 1.23% while several diversified REIT peers like GNL, AAT, AHH, and GOO...

1 Up 1 Down

SAFE fell 1.23% while several diversified REIT peers like GNL, AAT, AHH, and GOOD showed gains and CTO was slightly negative. Momentum scanner peers (ESRT, NXDT) were split between up and down moves, pointing to a more stock-specific reaction than a broad sector move.

Historical Context

5 past events · Latest: Feb 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 19	Award recognition	Positive	-0.1%	Ivory Prize finalist nod for affordable housing innovation and ground lease model.
Feb 17	Peer earnings impact	Negative	-3.0%	Star Holdings reported losses partly from SAFE mark-to-market charges.
Feb 11	Earnings results	Positive	-1.4%	Q4 and FY’25 revenue growth and higher unrealized capital appreciation.
Jan 29	Earnings scheduling	Neutral	+1.1%	Announcement of Q4 and FY’25 earnings release date and webcast details.
Jan 22	Dividend tax details	Neutral	-5.7%	Disclosure of 2025 dividend amounts and detailed tax characterization.

Pattern Detected

Recent history shows several instances where positive or neutral news was followed by mild to moderate price declines.

Recent Company History

Over the last few months, Safehold’s news flow has centered on earnings, capital appreciation metrics, dividends, and affordable housing positioning. Q4 and FY’25 results on Feb 11, 2026 highlighted revenue of $385.6 million and significant unrealized capital appreciation, yet the stock declined after that release. The company also detailed 2025 dividend tax treatment and was named a 2026 Ivory Prize finalist for housing affordability. Today’s Austin affordable housing ground lease extends the 2025 launch of its dedicated Affordable Housing team and continues the strategy of scaling ground lease capital in that segment.

Market Pulse Summary

This announcement highlights Safehold’s continued build-out of its Affordable Housing platform, addi...

Analysis

This announcement highlights Safehold’s continued build-out of its Affordable Housing platform, adding a 348-unit Low-Income Tax Credit project in Austin and bringing its LIHTC ground lease count to 20, supporting over 3,100 affordable units. It follows the formation of a dedicated Affordable Housing team in 2025 and recent recognition for housing affordability innovation. Investors may watch future disclosures on pipeline size, geographic expansion, and financing terms to assess how this strategy contributes to long-term growth.

Key Terms

ground lease, lihtc, capital structure

3 terms

ground lease financial

"Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry"

A ground lease is a long-term agreement where someone rents land from the owner, often for many decades. The person renting can build on or develop the land, but they don’t own it outright; the land remains owned by someone else. This matters because it affects how property is used and who benefits from its future value.

lihtc regulatory

"This transaction represents our 20th ground lease in the LIHTC sector"

A Low-Income Housing Tax Credit (LIHTC) is a U.S. federal tax incentive that gives a dollar-for-dollar reduction in taxes to investors who fund the construction or rehabilitation of affordable rental housing. Think of it like a valuable coupon investors buy into: it lowers their tax bill in exchange for financing apartments reserved for lower-income tenants. For investors, LIHTC changes a project’s cash flow, risk profile and potential return because much of the economic value comes from the tax benefit rather than rent alone.

capital structure financial

"tool to help developers fill capital structure gaps and move projects forward"

Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.

AI-generated analysis. Not financial advice.

NEW YORK, March 10, 2026 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on a ground lease for the development of an Affordable Housing community in Austin, Texas. The Low-Income Tax Credit development will provide 348 total units upon delivery in 2028. The project will be developed by The NRP Group, one of the most active developers of Affordable Housing in the United States.

"We're thrilled to establish a relationship with the team at NRP, and to break into the Affordable Housing market in Texas," said Steve Wylder, Safehold's Head of Investments. "As we continue to expand our Affordable Housing business, we are positioning our low-cost ground lease capital as an innovative new tool to help developers fill capital structure gaps and move projects forward."

The project is located in Southeast Austin, a high-growth region with strong long-term fundamentals and demand for high-quality housing product.

"This transaction represents our 20^th ground lease in the LIHTC sector, facilitating the development of over 3,100 Affordable units," Wylder added. "We're encouraged by the strong demand for our capital and intend to continue growing our presence in the Texas market and throughout the U.S."

Safehold established a dedicated Affordable Housing team in 2025, with the goal of expanding its investment into the sector.

Additional information is available at www.safeholdaffordablehousing.com.

About Safehold:

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, affordable housing, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders. Additional information on Safehold is available on its website at www.safeholdinc.com.

About The NRP Group:

The NRP Group is a vertically integrated developer, owner, builder, and manager of best-in-class multifamily housing with a mission to create exceptional rental housing communities for individuals and families, regardless of income. Since its founding in 1994, NRP has developed more than 62,000 apartment homes and currently manages over 30,000 residential units. Through its disciplined approach to vetting opportunities, NRP has established a track record of delivering impressive returns for investors. The company's formidable size and depth of talent provide the experience and infrastructure necessary to execute developments of varying degrees of complexity and scope in both urban-infill and suburban locations, including market-rate, affordable, mixed-income, and senior housing. The NRP Group has been consistently named a largest developer and builder in the U.S. on the NMHC "Top 50" lists, the Top 5 on the Multi-Housing News' "Top Multifamily Developers" list, named a Top Affordable Housing Developer by Affordable Housing Finance, and has won three NAHB Pillar awards since 2020 for Development, Construction and Ones to Watch. The NRP Group has become the top multifamily developer in the U.S. that creates both affordable and market-rate housing at a national scale. Based on over 30 years of experience and expertise, NRP provides construction and property management services to outside owners and developers. For additional information, visit www.nrpgroup.com.

Transaction Contacts:    Steve Wylder Head of Investments T: 310.315.5566 E: swylder@safeholdinc.com   Michael Mancini  Vice President, Investments T: 212.930.9471 E: mmancini@safeholdinc.com

IR Contact:   Pearse Hoffmann SVP, Head of Corporate Finance T: 212.930.9400 E: investors@safeholdinc.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/safehold-closes-20th-affordable-housing-ground-lease-first-in-texas-302709679.html

SOURCE Safehold

FAQ

What did Safehold (SAFE) announce about its Austin, Texas Affordable Housing deal on March 10, 2026?

Safehold closed its first Texas Affordable Housing ground lease, a LIHTC project set to deliver 348 units in 2028. According to Safehold, the development was done with The NRP Group and represents the company's 20th ground lease in the LIHTC sector.

How many Affordable Housing units has Safehold (SAFE) facilitated through its LIHTC ground leases?

Safehold has facilitated development of over 3,100 Affordable units via LIHTC ground leases. According to Safehold, the Austin transaction contributes to that total and reflects growth since the Affordable Housing team launched in 2025.

Who is developing the Safehold (SAFE) Austin Affordable Housing project and when will it be delivered?

The NRP Group is developing the Austin LIHTC project, with delivery expected in 2028. According to Safehold, NRP is one of the most active US affordable housing developers and partnered on this Southeast Austin development.

What strategic purpose does the Austin ground lease serve for Safehold (SAFE)?

The transaction expands Safehold's Affordable Housing footprint into Texas and provides low-cost ground lease capital to close financing gaps. According to Safehold, this aligns with their 2025-established Affordable Housing team and planned continued geographic growth.

Will the Austin deal materially change Safehold's Affordable Housing portfolio size for investors?

The Austin project adds 348 units to a portfolio facilitating over 3,100 Affordable units, a modest incremental increase. According to Safehold, it is notable as the company's first Texas ground lease and supports broader expansion plans.

How does Safehold (SAFE) describe the Austin location for the Affordable Housing project?

Safehold characterizes the site as Southeast Austin, a high-growth region with strong long-term fundamentals and housing demand. According to Safehold, the location supports the project's viability and the company’s strategy in new regional markets.