Safehold Closes Two Affordable Housing Ground Leases in California

(Neutral)

Rhea-AI Summary

Safehold (NYSE: SAFE) reported that it closed two new ground leases in June 2026 for the development of Affordable Housing communities in California totaling 570 units upon completion. The Low-Income Housing Tax Credit (LIHTC) projects are located in Simi Valley in Ventura County and San Ysidro in San Diego County.

Both developments will be built by The Pacific Companies, a repeat Safehold customer. According to Safehold, it has now closed more than 25 ground leases on LIHTC developments across California. The two projects are supported by tax credit equity from U.S. Bank and Wells Fargo, respectively, and are part of Safehold’s broader Affordable Housing platform.

Market Context

With a confirmed S-3ASR shelf effective through 2029 and low reported short positioning, the Afforda...

Analysis

With a confirmed S-3ASR shelf effective through 2029 and low reported short positioning, the Affordable Housing ground leases sit against a backdrop of accessible capital but limited squeeze dynamics. Investors may watch how additional ground leases translate into revenue and whether the shelf is tapped again.

Key Figures

Affordable units: 570 units Ground leases closed: 2 ground leases LIHTC ground leases in CA: more than 25 ground leases

3 metrics

Affordable units 570 units Total units from two California Affordable Housing ground leases

Ground leases closed 2 ground leases New Affordable Housing developments in California closed in June

LIHTC ground leases in CA more than 25 ground leases Cumulative LIHTC developments in California mentioned by management

Historical Context

5 past events · Latest: Jun 25 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 25	ground lease closing	Positive	-0.3%	Closed Austin Affordable Housing LIHTC ground lease for 336 planned units.
Jun 23	ground lease financing	Positive	+1.4%	Closed $45M Santa Cruz Affordable Housing ground lease with 256 planned units.
Jun 15	private placement	Positive	+0.0%	Closed $225M senior unsecured notes due 2056 with 6.615% stated coupon.
Jun 15	dividend declaration	Positive	-0.8%	Declared Q2 2026 common dividend of $0.177 per share, $0.708 annualized.
Jun 11	joint venture announcement	Positive	-1.7%	Formed Brookfield JV for portfolio with about $14M annualized cash ground rent.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive corporate and financing news has often seen muted or negative next‑day moves, with 3 of the last 5 events diverging from their generally favorable tone.

Key Terms

low-income housing tax credit, lihtc, ground lease, reit

4 terms

low-income housing tax credit financial

"The Low-Income Housing Tax Credit developments are located in the Simi Valley"

A low-income housing tax credit is a government incentive that gives a dollar-for-dollar reduction in federal taxes to people or firms that invest money into building or renovating rental housing for lower-income renters. Think of it like buying a tax coupon that helps fund affordable apartments: investors put up capital in exchange for steady rental income and a predictable cut in the taxes they owe, making these projects more financially attractive and lowering risk for lenders and investors.

lihtc financial

"We've now closed more than 25 ground leases on LIHTC developments throughout"

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.

ground lease financial

"closed on two ground leases in June for the development of Affordable Housing"

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.

reit financial

"The Company, which is taxed as a real estate investment trust (REIT), seeks"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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07/14/2026 - 04:05 PM

NEW YORK, July 14, 2026 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, closed on two ground leases in June for the development of Affordable Housing communities in California, which will provide a total of 570 units upon completion. The Low-Income Housing Tax Credit developments are located in the Simi Valley area of Ventura County and the San Ysidro area of San Diego County. Both projects will be developed by The Pacific Companies, one of the most active Affordable Housing developers in the U.S. and a repeat Safehold customer.

"We're thrilled to expand our relationship with The Pacific Companies, as we continue to grow Safehold's focus on the Affordable Housing sector," said Steve Wylder, Safehold's Head of Investments. "We've now closed more than 25 ground leases on LIHTC developments throughout the State of California, where there's significant unmet demand for high-quality Affordable product."

The developments are supported by tax credit equity from U.S. Bank and Wells Fargo, respectively.

"We're positioning our capital as a tool to fill capital structure gaps and move projects forward, and we're excited to see the growing adoption of the ground lease structure amongst developers and their debt and equity sources," Wylder added.

Additional information on Safehold's Affordable Housing platform 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.

Transaction Contacts:	IR Contact:

Steve Wylder	Pearse Hoffmann
Head of Investments	SVP, Head of Corporate Finance
T: 310.315.5566	T: 212.930.9400
E: swylder@safeholdinc.com	E: investors@safeholdinc.com

Ethan Torbati
Vice President, Investments
T: 310.315.5580
E: etorbati@safeholdinc.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/safehold-closes-two-affordable-housing-ground-leases-in-california-302825305.html

SOURCE Safehold

FAQ

What did Safehold (NYSE: SAFE) announce about new affordable housing ground leases in California on July 14, 2026?

Safehold announced it closed two ground leases in June 2026 for Affordable Housing communities in California totaling 570 units. According to Safehold, the LIHTC developments are in Simi Valley and San Ysidro and will be developed by The Pacific Companies.

How many affordable housing units are included in Safehold’s new California ground leases (SAFE)?

The two newly closed ground leases will support Affordable Housing communities totaling 570 units upon completion. According to Safehold, these Low-Income Housing Tax Credit developments are located in the Simi Valley area of Ventura County and San Ysidro in San Diego County.

Who is developing the new LIHTC affordable housing projects under Safehold’s California ground leases (SAFE)?

The projects will be developed by The Pacific Companies, described as a highly active Affordable Housing developer. According to Safehold, The Pacific Companies is a repeat customer, and these new developments expand their existing relationship in California’s LIHTC market.

Which financial institutions are providing tax credit equity for Safehold’s new affordable housing projects (SAFE)?

Tax credit equity for the two projects is being provided by U.S. Bank and Wells Fargo, respectively. According to Safehold, this equity supports the Low-Income Housing Tax Credit structures used to finance the Affordable Housing developments in Simi Valley and San Ysidro.

How many LIHTC ground leases has Safehold closed in California including these new deals (SAFE)?

Safehold stated it has now closed more than 25 ground leases on Low-Income Housing Tax Credit developments across California. According to Safehold, the two new Affordable Housing ground leases in Simi Valley and San Ysidro are part of this growing portfolio.

Where can investors find more information on Safehold’s Affordable Housing platform (SAFE)?

Investors can find more information on Safehold’s Affordable Housing platform at its dedicated website, www.safeholdaffordablehousing.com. According to Safehold, the platform highlights its role in using ground leases to support Affordable and LIHTC housing developments across property markets.