Safehold (NYSE: SAFE) Achieves Credit Rating Upgrade, Strengthening Market Leadership in Ground Leases

Safehold Secures Credit Rating Upgrade, Reinforcing Market Leadership

Safehold Inc. (NYSE: SAFE) achieves a notable milestone with a credit rating upgrade from S&P Global Ratings, elevating its rating from BBB+ to A-. This enhancement, which also applies to Safehold's operating subsidiary, Safehold GL Holdings LLC, underscores the company's robust credit profile and its strategic position in the modern ground lease sector. Chief Financial Officer Brett Asnas emphasizes that this upgrade reflects the solid foundation Safehold has built since its inception in 2017, a period during which it has established itself as a leader in providing innovative ground lease solutions across a diverse array of property types, including multifamily, office, industrial, and hospitality.

The A- rating acknowledges Safehold's high-quality portfolio of institutional ground leases, which have proven resilient even amid challenges faced by the broader commercial real estate market. By offering property owners a pathway to unlock the intrinsic value of their land, Safehold enables them to generate higher returns while mitigating associated risks. This strategic approach not only solidifies Safehold's reputation in the industry but also positions the company favorably for continued growth and stability in an evolving real estate landscape. The upgrade from S&P is particularly significant as it highlights the strength of Safehold's asset quality and business model, reinforcing investor confidence in its operational resilience.

With the recognition from all three major credit rating agencies, Safehold anticipates improved access to capital and reduced funding costs, ultimately enhancing its ability to serve clients and boost shareholder value. This upgrade is expected to facilitate Safehold's ongoing mission to provide safe, growing income streams and long-term capital appreciation for its investors. As Safehold continues to navigate the complexities of the real estate market, this credit rating enhancement positions the company well for future opportunities, making it an influential player in the ground lease arena.

In related news, Safehold's innovative ground lease structure continues to attract interest from property owners looking to maximize their land's potential. The company’s approach not only supports property development but also aligns with sustainable growth strategies in the real estate sector. As the market evolves, Safehold remains committed to enhancing its offerings while maintaining a strong focus on risk management and operational excellence.