Safehold Raises $225M with 30-Year Notes; Declares $0.177 Q2 Dividend
SAFE•Safehold closed a $225 million private placement of senior unsecured notes due August 2056 with a stairstep coupon rising from 4% to 6.615% and anticipates a 5.83% effective yield after a $30 million hedge settlement gain. The company declared a $0.177 Q2 dividend per share, payable July 15 to shareholders of record June 30.
1. $225M Note Offering
Safehold GL Holdings LLC issued $225 million of senior unsecured notes due August 1, 2056, pricing May 28 at 30-year Treasury rate plus 162.5 bps for a 6.615% all-in coupon. The stairstep interest schedule starts at 4% and ratchets to 6.615% by year 21 via PIK accruals, and a $30 million hedge termination gain lifts the effective semi-annual yield to 5.83%.
2. Intended Use of Proceeds
Net proceeds will fund general corporate purposes, including repaying borrowings under the unsecured revolver, making additional ground lease investments, covering working capital needs and fulfilling existing commitments under ground leases.
3. Q2 Dividend Declaration
Safehold’s Board declared a $0.177 per share dividend for Q2, annualized at $0.708, payable July 15, 2026, to shareholders of record as of June 30, 2026.
