NEW YORK - Safehold Inc. (NYSE: NYSE:SAFE), a real estate investment trust known for pioneering the modern ground lease model, has announced the closure of a new $2.0 billion unsecured revolving credit facility. This new financial arrangement replaces the company's previous aggregate $1.85 billion unsecured revolving credit facilities.
The updated credit facility is set to mature on May 1, 2029, and includes options to extend the maturity date by an additional year through two six-month extensions. With Safehold's current credit ratings, the interest rate on the new facility is set at adjusted SOFR plus 85 basis points. This represents a slight reduction of 5 basis points from the interest rates of the prior facilities.
Brett Asnas, Safehold's Chief Financial Officer, expressed confidence in the new financial agreement, stating, "This execution is a strong outcome for Safehold, lowering the Company's cost of capital, extending term and increasing liquidity." He also acknowledged the role of the company's banking relationships in achieving this refinancing and emphasized the potential benefits for both customers and shareholders.
JPMorgan Chase (NYSE:JPM) Bank, N.A. served as the administrative agent for the transaction, with additional support from BofA Securities, Inc., Goldman Sachs (NYSE:GS) Bank USA, Mizuho Bank, Ltd., Royal Bank of Canada (TSX:RY), and Truist Securities, Inc. as joint lead arrangers. Other participating lenders include Sumitomo Mitsui (NYSE:SMFG) Banking Corporation, Morgan Stanley (NYSE:MS) Bank, N.A., Barclays (LON:BARC) Bank PLC, BNP Paribas (OTC:BNPQY), and Raymond James Bank.
The company focuses on multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties. As part of its growth strategy, Safehold aims to provide its shareholders with stable income and long-term capital appreciation.
The information in this article is based on a press release.
InvestingPro Insights
Safehold Inc. (NYSE: SAFE), amid its strategic financial restructuring with a new $2.0 billion credit facility, shows intriguing metrics and analyst sentiment in the latest data from InvestingPro. With a market capitalization of $1.36 billion, the company's financial health and future prospects are of keen interest to investors.
InvestingPro Tips indicate that analysts are optimistic about Safehold's potential, with net income expected to grow this year and two analysts having revised their earnings upwards for the upcoming period. This positive outlook is further supported by the company's strong liquidity position, as its liquid assets surpass short-term obligations. Notably, while Safehold was not profitable over the last twelve months, analysts predict the company will turn a profit this year, delineating a potential shift in financial performance.
From the InvestingPro Data, Safehold's revenue growth is particularly impressive, with a 34.88% increase over the last twelve months as of Q4 2023. The quarterly revenue growth for Q4 2023 is even more substantial at 46.37%. Despite a negative P/E ratio of -23.01, the adjusted P/E ratio for the last twelve months is a more favorable 14.23, suggesting a potential undervaluation of the company's earnings capacity. Furthermore, the gross profit margin stands at a robust 98.09%, highlighting the company's efficiency in managing its cost of goods sold.
Investors seeking a deeper analysis on Safehold Inc. can find additional InvestingPro Tips by visiting InvestingPro's dedicated page for SAFE. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With more tips available on the platform, investors can gain comprehensive insights to inform their investment decisions.
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