Safehold Elevates Its Financial Standing with Credit Upgrade
NEW YORK – Safehold Inc. (the "Company" or "Safehold") (NYSE: SAFE) is excited to announce a significant achievement: an upgrade in its credit rating from S&P Global Ratings. The company now holds an A- rating, previously sitting at BBB+, and this upgrade comes with a stable outlook. This implications of this upgrade extend to Safehold's operating subsidiary, Safehold GL Holdings LLC, which also received an A- rating accompanied by a stable outlook.
A Milestone for Safehold
Brett Asnas, the Chief Financial Officer, expressed optimism about the implications of this upgrade. He remarked, "This ratings upgrade marks another significant milestone for Safehold's business, and we appreciate S&P's recognition of the strength of Safehold's credit profile, driven by our market leading position and high-quality portfolio of institutional ground leases. Our long-term financial stability showcases our commitment to delivering value to both customers and shareholders."
Understanding the Upgrade's Context
This ratings elevation by S&P isn't purely ceremonial. The agency highlighted the guiding reasons for this upgrade in their report, which emphasizes that Safehold's asset quality and operational steadiness have been maintained even amidst turmoil in the commercial real estate (CRE) sector. Such resilience underscores the structural integrity of the company's ground leases, clearly differentiating it from other firms maintaining BBB+ ratings.
Safehold's Innovative Approach to Real Estate Ownership
Safehold Inc. has pioneered a transformative approach to real estate ownership, allowing property owners to harness the value of the land on which their assets stand. Starting its journey in 2017, the company has shaken up the ground lease market, assisting owners of various property types—including multifamily, office, industrial, hospitality, and life science sectors—in generating favorable returns while mitigating risks.
Enhancing Shareholder Value
Being structured as a real estate investment trust (REIT), Safehold aims not only for growth but also for delivering a consistent income stream along with long-term capital appreciation to its investors. This marked shift in the real estate landscape has opened avenues for safer investments and is positioning Safehold to thrive in a competitive marketplace. As the market continues to evolve, Safehold's innovative strategies are a beacon for potential investors looking for robust opportunities.
Company Contact Information
For further details about their operations, Safehold welcomes inquiries. Pearse Hoffmann, Senior Vice President and Head of Corporate Finance, is available for any questions. You can reach him at 212.930.9400 for a discussion on how Safehold is shaping the future of real estate ownership.
Frequently Asked Questions
What is the significance of Safehold's A- rating?
The upgrade to an A- rating signifies that Safehold has established a strong credit profile, allowing for better access to capital and potentially lower borrowing costs.
How does Safehold's business model work?
Safehold revolutionizes real estate ownership by enabling property owners to monetize the land underneath their buildings through innovative ground leases.
What types of properties does Safehold focus on?
Safehold invests in a diverse range of properties, including multifamily, office, industrial, hospitality, and life science sectors, supporting owners in achieving better financial results.
Who can I contact for more information about Safehold?
For inquiries, Pearse Hoffmann, the Senior Vice President at Safehold, can be reached at 212.930.9400.
How does the upgraded credit rating benefit investors?
The upgraded credit rating enhances Safehold's reputation, potentially leading to improved investor trust and access to more favorable financing options.
