Safehold Receives Credit Ratings Upgrade to A- from Fitch
Safehold Inc. (NYSE: SAFE) has received a credit rating upgrade to A- from BBB+ from Fitch Ratings, with a stable outlook. The upgrade extends to the company's operating subsidiary, Safehold GL Holdings Fitch's decision reflects SAFE's focus on low-risk ground lease assets, increased use of unsecured debt, improved portfolio diversity, strong asset quality, low leverage, solid dividend coverage, and experienced management.
The company's CFO, Brett Asnas, highlighted that having 'A' ratings from two major agencies will improve cost and access to capital, benefiting both shareholders and customers. Safehold, established in 2017, specializes in modern ground lease solutions for various property types including multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties.
Safehold Inc. (NYSE: SAFE) ha ricevuto un miglioramento del rating creditizio a A- da BBB+ da Fitch Ratings, con un outlook stabile. L'upgrade si estende alla controllata operativa della società, Safehold GL Holdings. La decisione di Fitch riflette il focus di SAFE sugli asset a basso rischio di locazione del terreno, un uso aumentato di debito non garantito, una maggiore diversificazione del portafoglio, una qualità degli asset forte, una leva finanziaria bassa, una solida copertura dei dividendi e una gestione esperta.
Il CFO dell'azienda, Brett Asnas, ha sottolineato che avere rating 'A' da due importanti agenzie migliorerà i costi e l'accesso al capitale, a beneficio sia degli azionisti che dei clienti. Safehold, fondata nel 2017, si specializza in soluzioni moderne di locazione del terreno per vari tipi di proprietà, tra cui residenze multifamiliari, uffici, industrie, ospitalità, alloggi per studenti, scienze della vita e proprietà a uso misto.
Safehold Inc. (NYSE: SAFE) ha recibido una mejora en la calificación crediticia a A- desde BBB+ por parte de Fitch Ratings, con una perspectiva estable. La mejora se extiende a la subsidiaria operativa de la empresa, Safehold GL Holdings. La decisión de Fitch refleja el enfoque de SAFE en activos de arrendamiento de terreno de bajo riesgo, un mayor uso de deuda no asegurada, una mejor diversificación de la cartera, una fuerte calidad de activos, baja carga financiera, sólida cobertura de dividendos y gestión experimentada.
El CFO de la empresa, Brett Asnas, destacó que contar con calificaciones 'A' de dos agencias importantes mejorará los costos y el acceso al capital, beneficiando tanto a los accionistas como a los clientes. Safehold, fundada en 2017, se especializa en soluciones modernas de arrendamiento de terreno para diversos tipos de propiedades, incluyendo multifamiliares, oficinas, industriales, hospitalidad, alojamiento para estudiantes, ciencias de la vida y propiedades de uso mixto.
Safehold Inc. (NYSE: SAFE)는 Fitch Ratings로부터 BBB+에서 A-로 신용 등급이 향상되었으며, 안정적인 전망을 가지고 있습니다. 이 향상은 회사의 운영 자회사인 Safehold GL Holdings에도 적용됩니다. Fitch의 결정은 SAFE가 저위험 토지 임대 자산에 주력하고, 무담보 부채의 사용이 증가하며, 포트폴리오 다각화가 개선되고, 강력한 자산 품질, 낮은 레버리지, 견고한 배당 커버리지, 경험이 풍부한 경영진을 갖추고 있음을 반영합니다.
회사의 CFO인 Brett Asnas는 두 주요 기관으로부터 'A' 등급을 받는 것이 비용과 자본 접근성을 개선하여 주주와 고객 모두에게 혜택을 줄 것이라고 강조했습니다. 2017년에 설립된 Safehold는 다세대, 사무실, 산업, 환대, 학생 주택, 생명과학, 복합 용도의 다양한 부동산에 대한 현대적인 토지 임대 솔루션을 전문으로 하고 있습니다.
Safehold Inc. (NYSE: SAFE) a reçu une amélioration de sa note de crédit à A- par Fitch Ratings, passant de BBB+ avec une perspective stable. Cette amélioration s'étend à la filiale opérationnelle de l'entreprise, Safehold GL Holdings. La décision de Fitch reflète l'accent mis par SAFE sur des actifs de baux fonciers à faible risque, une utilisation accrue de la dette non garantie, une meilleure diversification du portefeuille, une qualité d'actifs solide, un faible niveau d'endettement, une forte couverture des dividendes et une direction expérimentée.
Le CFO de l'entreprise, Brett Asnas, a souligné que disposer de notations 'A' de deux agences majeures améliorera les coûts et l'accès au capital, au bénéfice des actionnaires et des clients. Safehold, fondée en 2017, se spécialise dans des solutions modernes de baux fonciers pour divers types de propriétés, y compris résidences multifamiliales, bureaux, industrie, hôtellerie, logements étudiants, sciences de la vie et propriétés à usage mixte.
Safehold Inc. (NYSE: SAFE) hat eine Heraufstufung der Kreditwürdigkeit von BBB+ auf A- durch Fitch Ratings erhalten, mit einem stabilen Ausblick. Die Heraufstufung gilt auch für die operative Tochtergesellschaft des Unternehmens, Safehold GL Holdings. Die Entscheidung von Fitch spiegelt SAFEs Fokus auf risikoarme Pachtverträge, zunehmende Nutzung von unbesicherten Schulden, verbesserte Portfolio-Diversifizierung, starke Asset-Qualität, niedrige Verschuldung, solide Dividendenabdeckung und erfahrenes Management wider.
Der CFO des Unternehmens, Brett Asnas, hob hervor, dass die 'A'-Ratings von zwei großen Agenturen die Kosten und den Zugang zu Kapital verbessern werden, was sowohl den Aktionären als auch den Kunden zugutekommen wird. Safehold, gegründet im Jahr 2017, ist auf moderne Pachtlösungen für verschiedene Immobilientypen spezialisiert, einschließlich Mehrfamilienhäuser, Büros, Industrie, Gastgewerbe, Studentenunterkünfte, Lebenswissenschaften und gemischt genutzte Immobilien.
- Credit rating upgrade to A- from BBB+ by Fitch
- Improved access to capital at better rates
- Strong asset quality performance noted by Fitch
- Low leverage and solid dividend coverage
- Expanded use of unsecured debt
- None.
Insights
The upgrade to an A- rating from Fitch represents a important milestone for Safehold, marking exceptional creditworthiness in the REIT sector. This upgrade, combined with an existing A-rating from another major agency, creates a powerful dual A-rating status that will significantly reduce borrowing costs and enhance capital market access.
The ground lease business model's inherent strength lies in its overcollateralized revenue streams and long-dated contracts, providing remarkable stability. The shift toward unsecured debt indicates strong balance sheet management and increased financial flexibility. Think of it like upgrading from a secured credit card to a premium unsecured card - it demonstrates higher creditworthiness and opens up better financial terms.
For investors, this translates to:
- Lower interest expenses, directly improving the bottom line
- Enhanced ability to secure funding for growth opportunities
- Reduced refinancing risk in volatile market conditions
- Stronger competitive position in securing new ground lease opportunities
The credit upgrade validates Safehold's innovative ground lease model and its execution in the commercial real estate space. The "significant overcollateralization" Fitch mentions is important - it means the land value plus the safety cushion from building value provides exceptional security, similar to having a loan with an extremely low loan-to-value ratio.
The improved portfolio diversity highlighted by Fitch is particularly noteworthy in the current market environment. By spreading investments across multifamily, office, industrial, hospitality, student housing and life science properties, Safehold has built resilience against sector-specific downturns. This diversification, combined with the inherent safety of ground leases, creates a uniquely defensive yet growth-oriented investment profile in the REIT space.
"This ratings upgrade is a strong result for the Company, and we appreciate Fitch's recognition of the significant steps we have taken to build a best-in-class credit profile, emphasizing high quality assets, stable funding sources and conservative leverage," said Brett Asnas, Chief Financial Officer. "We expect having 'A' ratings from two major agencies will drive better cost and access to capital, benefitting both shareholders and customers."
Fitch cited the rationale behind the ratings upgrade in their report: "The upgrade reflects SAFE's focus on the relatively low-risk ground lease asset class, characterized by growing, long-dated revenue streams and significant overcollateralization; expanded use of unsecured debt as a proportion of total debt; improved portfolio diversity; strong asset quality performance; low leverage; solid dividend coverage and an experienced management team."
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
Capital Markets & Investor Relations
T 212.930.9400
E investors@safeholdinc.com
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SOURCE Safehold
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