Safehold Inc. Achieves Credit Rating Upgrade, Strengthening Market Position and Growth Potential

Safehold Secures Credit Rating Upgrade, Reinforcing Market Position

Safehold Inc. has recently achieved a significant milestone in its financial journey, with a credit rating upgrade from S&P Global Ratings, moving its rating from BBB+ to A-. This upgrade, which also applies to Safehold’s operating subsidiary, Safehold GL Holdings LLC, marks a critical moment in the company’s evolution since its inception in 2017. Chief Financial Officer Brett Asnas emphasizes that this upgrade is not merely a reflection of numeric ratings but a testament to Safehold's robust credit profile, which is underpinned by its position as a leader in the modern ground lease industry.

The company has successfully built a high-quality portfolio of institutional ground leases, catering to a diverse array of property types, including multifamily, office, industrial, hospitality, student housing, life sciences, and mixed-use properties. This innovative approach allows property owners to unlock the value of their land, leading to enhanced returns while mitigating risks associated with traditional real estate investments. The recent credit rating upgrade from S&P underscores the stability of Safehold's business model, especially as it navigates challenges within the broader commercial real estate sector.

With the A- rating now recognized by all three major credit rating agencies, Safehold anticipates improved capital access and reduced funding costs. This is expected to provide a dual benefit – not only enhancing the company’s financial flexibility but also delivering added value to its customers and shareholders. The upgrade is a strong endorsement of Safehold’s asset quality and operational resilience, reinforcing its commitment to offering safe, growing income and long-term capital appreciation in a challenging economic environment.

In addition to the credit upgrade, Safehold remains focused on its growth strategy and market expansion. The company continues to innovate within the ground lease sector, providing an attractive alternative for property owners seeking to maximize land value. This strategic focus positions Safehold favorably for future opportunities in a rapidly evolving real estate landscape.