Safehold Inc. extended the maturity date of its term loan to Star Holdings by one year to March 31, 2029, in an amendment filed with the Securities and Exchange Commission on September 29, 2026. The company, acting as lender, entered into a Third Amendment to the credit agreement originally dated March 31, 2023. Star Holdings paid Safehold a maturity extension fee of $2.4 million in connection with the amendment.
The outstanding principal balance of the term loan was $115.0 million as of September 29, 2026. The amendment permits Star Holdings to extend the maturity date further to September 30, 2029, subject to specific conditions including the payment of an extension fee equal to 0.5% of the then-outstanding loans. If exercised, the interest rate on outstanding borrowings would increase by 1.0% per annum during that additional extension period.
The Third Amendment also allows Star Holdings to make voluntary prepayments of up to $50.0 million in the aggregate. This amount is inclusive of any restricted cash held by the margin loan lender on its margin loan facility that is secured by Safehold common stock owned by Star Holdings. Additionally, the amendment creates a new restricted payments basket permitting Star Holdings to repurchase up to $10.0 million of its common shares for cash, provided it has prepaid its margin loan facility by at least $40.0 million, excluding prepayments using restricted cash held by the margin loan lender.
Star Holdings agreed not to make any additional borrowings under the margin loan facility. There were no outstanding borrowings on the incremental facility as of the amendment date.
Simultaneously, Safehold Management Services Inc., a wholly-owned subsidiary of Safehold Inc., entered into a Second Amendment to its management agreement with Star Holdings. The amendment sets minimum quarterly management fees of $1.25 million for the period from April 1, 2027 through March 31, 2028, and $625,000 for the period from April 1, 2028 through March 31, 2029.
The amendment increased the termination fee payable to Safehold Management Services Inc. from $55.0 million to $62.5 million. This fee is reduced by the aggregate amount of management fees paid prior to the termination date. The period during which a termination by Star Holdings without cause requires payment of this fee has been extended to March 31, 2029.
Safehold Inc. is incorporated in Maryland and has its principal executive offices in New York, New York. The company's common stock trades on the New York Stock Exchange under the ticker symbol SAFE. Brett Asnas, Chief Financial Officer of Safehold Inc., signed the report on October 2, 2026.