Safehold Secures $400 Million Loan to Enhance Liquidity and Optimize Real Estate Assets

Safehold Secures $400 Million Unsecured Term Loan to Enhance Financial Flexibility

Safehold Inc., a leader in the modern ground lease sector, announces the successful closure of a $400 million unsecured term loan, set to mature on November 15, 2030, with options for two additional one-year extensions. The loan, which features a borrowing rate tied to the Secured Overnight Financing Rate (SOFR) plus 90 basis points, is bolstered by Safehold's strong credit ratings of A3/A-/A-. This financial maneuver not only strengthens the company's liquidity position to $1.3 billion but also actively addresses its near-term debt obligations. By hedging the loan through a SOFR swap at a 3.0% strike rate until April 2028, Safehold demonstrates a proactive approach to managing interest rate risks.

The proceeds from the newly secured loan are earmarked for repaying $227 million of secured debt due in 2027, allowing Safehold to unencumber twelve ground lease assets that were previously tied as collateral. This strategic debt repayment not only frees up valuable assets but also aligns with Safehold's operational philosophy of optimizing real estate ownership for clients. As Brett Asnas, Chief Financial Officer of Safehold, notes, the financing not only boosts liquidity but also positions the company favorably in the marketplace. The company leverages its strong banking relationships to secure attractive capital solutions, reaffirming its commitment to delivering value to shareholders.

Safehold’s innovative approach within the ground lease industry underscores its dedication to providing property owners with enhanced returns while mitigating associated risks. This latest financial development not only exemplifies Safehold’s strategic foresight but also highlights its ability to navigate the complexities of the real estate market. With major banks like JPMorgan Chase Bank, Bank of America, and Goldman Sachs participating in this transaction, it reflects confidence in Safehold's business model and long-term growth potential. As the company continues to expand its footprint in the ground lease market, these financial maneuvers serve to bolster its position as a pioneer in real estate ownership solutions.

In addition to enhancing its liquidity, Safehold's recent loan transaction illustrates the company's commitment to maintaining a robust balance sheet. The flexibility of unsecured capital allows Safehold to pursue growth opportunities while ensuring that it meets its financial obligations in a timely manner. This financial stability is crucial as Safehold continues to support property owners in maximizing their investment returns.