President and CEO of Safety, Income and Growth, Inc. buy Shares After News of Increasing Credit Line


 
 
11:31 08/10/2018

Earlier today, Safety, Income & Growth Inc. (NYSE:SAFE) SAFE , disclosed that Chairman and CEO, Jay Sugarman, and President & CIO, Marcos Alvarado, bought over $300,000.00 worth of shares in the company. Today’s purchase transactions make Mr. Sugarman’s fifth purchase of stock transaction for 2018.

At the start of the week, Safety, Income & Growth SAFE  announced that Mizuho Bank has committed $50 million, upsizing the revolving credit facility to $350 million. The credit facility has an interest rate of LIBOR plus 135 basis points, one of the lowest priced secured revolving credit facilities among rated and unrated companies, reflecting the embedded safety that ground leases provide. The availability of low-interest, flexible capital enables SAFE to continue executing its strategic plan to expand its high quality ground lease portfolio and deliver value to its customers and shareholders.

Safety, Income & Growth Inc. SAFE  is the first publicly traded company that focuses on acquiring, owning, managing and capitalizing ground leases. The Company seeks to provide safe, growing income and capital appreciation to shareholders by building a diversified portfolio of high quality ground leases. The Company, which is taxed as a real estate investment trust (REIT), is managed by its largest shareholder, iStar Inc.

"We're very pleased to have increased our borrowing capacity and further diversify our lending sources. Mizuho Bank's $50 million commitment, demonstrates its confidence in our business model and our financial stability," said Andrew Richardson, Chief Financial Officer. "With access to efficient capital and sizeable drawing capacity, SAFE is well-positioned to continue along its growth trajectory.”

The credit facility may be utilized to acquire or finance ground lease transactions as well as for other corporate purposes.

On July 26th, Safety, Income & Growth Inc. SAFE  reported results for the second quarter ended June 30, 2018. Highlights for the quarter included, net income of $1.7 million or $0.09 per share, funds from Operations of $4.0 million or $0.22 per share, and Adjusted Funds from Operations of $3.0 million or $0.17 per share.

"We're pleased to see this quarter's new ground lease originations were sourced from both new customers, who are beginning to understand the revolutionary nature of our capital, and repeat customers who recognize the value creation that a SAFE Ground Lease™ provides," said Jay Sugarman, Safety, Income and Growth's Chairman and Chief Executive Officer.


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