Jay Sugarman, chairman and CEO of Safehold Inc. (NYSE: SAFE), participated in a video interview in conjunction with Nareit’s REITweek: Virtual Investor Conference (held June 2-4).
Safehold’s performance has been strong during the past year, Sugarman said, with the portfolio growing over 100%. The company was also included in the S&P 600.
Sugarman said Safehold’s strategy is even more attractive in the current environment.
“We think low-cost capital that needs limited rights, that doesn’t require repayment, should help building owners in almost any environment. With capital scarce and more expensive now, it should certainly be an even better solution today,” he said.
Sugarman highlighted the fact that the REIT’s portfolio has seen consistent growth since Safehold’s IPO two-and-a-half years ago. He also stressed the importance of value in the current climate. “When you look at the comparable benchmarks for high quality, long duration cash flow, our portfolio has generated significantly higher returns” in a low rate environment, he noted.