Safehold Secures $400 Million in Senior Unsecured Notes

Safehold Inc. Announces Major Offering of Senior Notes

Safehold Inc. (NYSE: SAFE) has taken a significant step in bolstering its financial position by pricing a public offering of $400 million in senior unsecured notes due in 2035. This strategic move reflects the company’s commitment to optimize its capital structure and advance its business objectives.

Details of the Notes Offering

The newly issued notes, featuring a coupon rate of 5.650%, are designed to mature on January 15, 2035. The offering is scheduled to settle shortly, pending customary closing conditions. Investors will recognize the public offering price at 98.812% of the principal amount, yielding an effective semi-annual yield to maturity of approximately 5.804%.

Financial Gains through Hedging

Recently, Safehold has successfully executed the termination of certain hedges, leading to a realized cash settlement gain estimated at around $22 million. This additional capital will enhance the effective yield to approximately 5.09% after incorporating the recent financial maneuvers.

Intended Use for Proceeds

The net proceeds from this offering are earmarked for various corporate purposes, including the repayment of borrowings linked to its unsecured revolver, funding new investments in ground leases, and ensuring adequate working capital to meet existing commitments. This strategic allocation showcases Safehold's commitment to growth while maintaining financial flexibility.

Collaborating Underwriters

A reputable group of financial institutions has joined forces as underwriters for this offering. J.P. Morgan Securities LLC, BofA Securities, Goldman Sachs & Co. LLC, and Truist Securities, Inc. are leading this endeavor. Additional support comes from various other financial service firms, emphasizing the project’s credibility and appeal in the market.

About Safehold Inc.

Founded with the vision of revolutionizing real estate ownership, Safehold Inc. is at the forefront of modern ground lease innovations. By unlocking the value of land ownership, Safehold is helping property owners across multiple sectors—including multifamily, office, and hospitality—achieve significant returns while minimizing risks. As a real estate investment trust (REIT), Safehold aims to deliver steady income and long-term capital appreciation for its shareholders.

Safehold's Commitment to Shareholders

Safehold's recent notes offering is just one of the many strategies it employs to optimize financial performance and contribute to shareholder value. By carefully managing its capital resources, the company reinforces its reputation as a trustworthy and forward-thinking investment entity.

Frequently Asked Questions

What is the primary purpose of Safehold's recent notes offering?

The primary purpose is to enhance corporate liquidity for general corporate purposes, including debt repayment and investments.

How does the recent gain from hedging impact the yield?

The recent $22 million gain from hedging improves the effective semi-annual yield to approximately 5.09%.

Who are the underwriters involved in this offering?

The offering includes J.P. Morgan Securities, BofA Securities, Goldman Sachs, and several other reputable firms as underwriters.

What kinds of properties does Safehold target with its investments?

Safehold invests in a diverse range of property types, including multifamily, office, industrial, and mixed-use real estate.

How does Safehold aim to create value for its shareholders?

Safehold focuses on innovative land lease solutions to deliver growth and sustainable returns, thereby creating long-term value for its shareholders.

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