Safehold Inc. Secures $225 Million in Long-Term Structured Debt Offering

On June 15, 2026, Safehold Inc. (NYSE: SAFE), a leader in innovative real estate financing, disclosed its successful completion of a $225 million private placement of structured senior unsecured notes, which are set to mature on August 1, 2056. This strategic financial maneuver is part of Safehold's ongoing efforts to enhance its capital structure to better align with its long-term asset goals.

Financial Details of the Offering

The note purchase agreement signed by Safehold GL Holdings LLC outlines that the pricing was set on May 28, 2026, at an influential rate derived from the 30-year Treasury yield at 4.99%, plus an additional spread of 162.5 basis points. This results in an overall coupon rate of 6.615%. The unique structure of the notes includes a stair-stepping coupon mechanism, starting with a cash interest rate of 4% that will progressively escalate to 4.5% in the fifth year, 5% in the ninth year, and further increase to reach 6.615% by year 21.

What makes these notes particularly appealing is how the difference between the stated rate and the cash interest will accrue and be added to the outstanding principal, which will be settled upon maturity in 2056. This structure is subject to maintaining specific credit ratings, ensuring Safehold’s financial robustness.

Impact of Recent Financial Moves

Recently, Safehold terminated certain hedges, resulting in a notable cash settlement gain of approximately $30 million. This gain allows the company to anticipate an effective semi-annual yield to maturity on the new notes of about 5.83%. CFO Brett Asnas expressed satisfaction with the completion of this structured debt offering, emphasizing the favorable cash and net effective costs matched with existing in-the-money hedges. Furthermore, he highlighted the participation of both UK and US investors, broadening Safehold's capital base.

Utilization of Proceeds

The net proceeds from this offering are earmarked for a variety of corporate purposes. These may include repaying outstanding borrowings, investing further into ground leases, facilitating working capital, and meeting existing obligations commitments. This broad application of funds will support Safehold in expanding its investment footprint while managing financial commitments efficiently.

Regulatory Considerations

It’s vital to note that these notes have not undergone registration under the U.S. Securities Act of 1933 or any state securities laws. Consequently, they cannot be sold or offered in the United States unless an exemption applies or the appropriate registration is secured. This stipulation underscores the importance of regulatory compliance in Safehold's operations.

About Safehold Inc.

Safehold Inc. has distinguished itself by pioneering modern ground lease structures since 2017. The company aims to provide real estate owners with an innovative pathway to unlock the value of their underlying land. By focusing on high-quality sectors—such as multifamily housing, commercial office spaces, industrial facilities, and more—Safehold enhances return potential for stakeholders while minimizing risk exposure. The firm, structured as a Real Estate Investment Trust (REIT), is dedicated to ensuring sustainable, growing income and capital appreciation for its shareholders.

For those interested in learning more about Safehold and their innovative approach to real estate financing, additional information is readily available on their official website.

Conclusion

The recent debt placement marks a significant milestone for Safehold, reflecting a robust appetite for structured financing that can effectively support its operational mandates. As the market landscape continues to evolve, Safehold's strategic financial initiatives place it in a favorable position to capitalize on emerging opportunities in the real estate sector.