Safehold Partners with Brookfield for Ground Lease Investment Strategy in the U.S.

Safehold and Brookfield Join Forces

On June 11, 2026, Safehold Inc., a key player in the modern ground lease industry, made a significant announcement that it has entered into a joint venture with an affiliate of Brookfield Asset Management. This partnership aims to manage a diversified portfolio of ground leases across various locations in the United States, creating new opportunities in real estate investment.

Financial Highlights

Safehold's contribution to this joint venture consists of ground lease assets, which are diverse in nature and collectively generate an impressive annual cash ground rent of approximately $14 million. As part of the agreement, Brookfield will acquire a non-controlling 49% stake in this venture, which is valued at around $348 million.

Moreover, Safehold has preserved its strategic flexibility by retaining call options to buy back Brookfield's share starting after year seven. This arrangement allows them to maintain operational control over the day-to-day management of the assets, ensuring that their vision can be executed effectively.

The structure of this joint venture is intended to provide Safehold with several pronounced benefits. As Brett Asnas, Safehold's Chief Financial Officer, articulated, the venture is expected to enhance their liquidity, lower their leverage, and provide additional capacity to pursue future investments in ground leases. The arrangement not only highlights institutional confidence in this asset class but also facilitates a pathway for Safehold to repurchase the venture's assets, should that align with their strategic goals.

A Strategic Move in U.S. Real Estate

Ben Brown, Co-President of Real Estate for Brookfield, expressed enthusiasm about the partnership, highlighting the access it offers to a well-rounded collection of high-quality ground leases across major markets in the U.S. Brookfield's investment strategy remains focused on opportunities that leverage durable real estate fundamentals and stable cash flows. They are dedicated to crafting capital solutions that support their partners' balance sheet objectives, which is underscored by their involvement in this partnership with Safehold.

Future Prospects

The net proceeds from this joint venture will be allocated towards debt repayment and other corporate needs, ensuring that Safehold can optimize its financial standing. This partnership is seen as a forward-looking initiative that reinforces Safehold's leading position in the modern ground lease landscape. As the company continues to innovate in ways to unlock land value beneath various types of properties—including multifamily units, offices, and hospitality venues—the support from Brookfield is poised to enhance their growth and expansion.

As a company that operates as a real estate investment trust (REIT), Safehold is committed to providing its shareholders with safe and growing income alongside long-term capital appreciation. Since its inception in 2017, Safehold's pioneering approach to the ground lease model has helped many property owners elevate their returns while mitigating risks.

The joint venture with Brookfield represents not just a financial transaction but a partnership built on shared vision and goals, positioning both entities for success in the evolving landscape of real estate investment.