Safehold Announces $400 Million Unsecured Term Loan

Rhea-AI Summary

Safehold (NYSE: SAFE) closed a $400 million unsecured term loan with a fully extended maturity of November 15, 2030 (two twelve-month extension options). The facility carries a borrowing rate tied to SOFR + 90 bps based on the company's A3 / A- / A- credit ratings and is hedged by a SOFR swap at a 3.0% strike through April 2028. Proceeds will repay debt and support general corporate purposes, including full repayment of $227 million of secured debt that unencumbered twelve ground-lease assets, and increase liquidity to $1.3 billion.

Positive

• Closed $400 million unsecured term loan
• Liquidity increased to $1.3 billion
• Repaid and replaced $227 million secured debt
• Unencumbered 12 ground lease assets
• SOFR swap hedge at 3.0% through Apr 2028

Negative

• Variable-rate exposure resumes after April 2028 when hedge ends

Insights

Capital Markets Analyst

Safehold secured a $400M unsecured term loan, boosting liquidity and replacing secured 2027 debt.

The company issued a $400 million unsecured term loan with a fully extended maturity of November 15, 2030 and two twelve-month extension options, replacing $227 million of secured 2027 debt and increasing liquidity to $1.3 billion. The facility pricing is SOFR plus 0.90%, and the company holds a SOFR swap at a 3.0% strike through April 2028 to hedge interest exposure. This structure converts near-term secured obligations into unsecured, longer-dated financing while preserving optional extension features.

Key dependencies and risks include the ongoing effectiveness of the SOFR hedge through April 2028, the ability to exercise the extension options as planned, and maintaining the stated credit ratings that underpin the pricing. Replacing secured debt by unencumbering twelve ground-lease assets reduces asset-level constraints, but it also leaves the company with unsecured liabilities; covenant or market changes could alter access or cost of future capital.

Watch the credit ratings, utilization of the $1.3 billion liquidity buffer, any covenant language tied to the new loan, and the outcome of the swap hedge at or before April 2028. Near-term timeline items to monitor include refinancing behavior around each extension option and any disclosures about covenant tests or uses of proceeds over the next 6–24 months.

NEW YORK, Nov. 25, 2025 /PRNewswire/ -- Safehold Inc. (the "Company" or "Safehold") (NYSE: SAFE) today announced that it has closed on a $400 million unsecured term loan. The new term loan has a fully extended maturity date of November 15, 2030 which includes two twelve-month extension options. Pursuant to the terms of the loan, Safehold's current A3 / A- / A- credit ratings provide for a borrowing rate of SOFR plus 90 basis points. The Company has a SOFR swap at a 3.0% strike rate through April 2028 that will hedge this transaction.

Proceeds will be used for debt repayment and general corporate purposes. The Company recently fully repaid $227 million of secured debt due 2027, unencumbering the twelve ground lease assets that had served as collateral. The new unsecured term loan replaces that capital and increases the Company's liquidity position to $1.3 billion.

"This financing represents a strong outcome for Safehold, increasing liquidity and proactively addressing our nearest-term maturity with flexible unsecured capital," said Brett Asnas, Chief Financial Officer. "We value the support of our banking partners, and believe Safehold's uniquely long-term and laddered balance sheet positions us well to deliver attractive capital solutions to customers and create value for shareholders."

JPMorgan Chase Bank, N.A. is acting as the Administrative Agent. JPMorgan Chase Bank, N.A., Bank of America, N.A., Goldman Sachs Bank USA, Mizuho Bank, Ltd., Royal Bank of Canada, and Truist Securities, Inc. are serving as Joint Bookrunners and Joint Lead Arrangers.

About Safehold:

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders. Additional information on Safehold is available on its website at www.safeholdinc.com.

Company Contact:

Pearse Hoffmann
Senior Vice President
Head of Corporate Finance 
T 212.930.9400
E investors@safeholdinc.com

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SOURCE Safehold

FAQ

What are the key terms of Safehold's $400 million term loan (SAFE) announced Nov 25, 2025?

Safehold secured a $400 million unsecured term loan maturing Nov 15, 2030 with two 12-month extension options and a borrowing rate of SOFR + 90 bps.

How does Safehold's Nov 25, 2025 loan affect its liquidity and debt profile (NYSE: SAFE)?

The loan increases reported liquidity to $1.3 billion and replaced $227 million of secured debt, unencumbering twelve ground-lease assets.

What interest-rate protection does Safehold have for the $400 million loan (SAFE)?

Safehold has a SOFR swap at a 3.0% strike that hedges the loan through April 2028.

Who are the lead arrangers for Safehold's unsecured term loan (SAFE)?

JPMorgan Chase is the Administrative Agent; joint bookrunners and lead arrangers include JPMorgan, Bank of America, Goldman Sachs, Mizuho, RBC, and Truist.

What will Safehold use the $400 million term loan proceeds for (SAFE)?

Proceeds will be used for debt repayment and general corporate purposes.