Safehold Secures $225 Million in Long-Term Debt Financing

The financing arrangement, priced on May 28, 2026, carries an all-in coupon of 6.615% based on a 30-year Treasury rate of 4.99% plus a 162.5 basis point spread. To manage cash flow, the notes employ a stairstep structure starting at a 4.00% cash interest rate, which incrementally increases to 6.615% by year 21. Any difference between the stated rate and the cash interest paid will accrue and be added to the principal balance for repayment at maturity.

Accounting for the $30 million cash settlement gain from recent hedge terminations, Safehold anticipates an effective semi-annual yield to maturity of roughly 5.83%. CFO Brett Asnas noted that the offering successfully attracted both U.S. and U.K. investors, allowing the firm to align its capital structure with its long-term asset base. The company intends to direct the proceeds toward reducing revolver borrowings, working capital requirements, and funding new property commitments. Morgan Stanley & Co. LLC acted as the lead placement agent, supported by RBC Capital Markets.