Safehold Reports Two Q3 Ground-Lease Originations Totaling $38 Million

Safehold Inc. originated two ground leases totaling $38 million in the third quarter of 2026 as higher rates increased uncertainty around closings and contributed to retrades and repricing that delayed or disrupted transactions.

Recent deals carried economic yields in the low- to mid-7% range. CEO and Chairman Jay Sugarman said the business faces tougher conditions when long-term rates reach 20-year highs.

“No question, our business gets tough during periods when long rates rise to 20-year highs,” Sugarman said.

Management cited $1.3 billion in available liquidity and a 2x leverage target. Safehold’s permanent debt had an approximately 18-year weighted average maturity and a 4.4% effective cost.

The company continued share repurchases. Management described much of the dividend as discretionary because taxable income was low.

Management characterized affordable housing as relatively insulated from daily rate volatility. It was evaluating sectors that favor multifamily properties for liquidity, long-term fundamentals and risk-adjusted returns, and identified recapitalizations and high-quality developments as opportunities.