Safehold (SAFE) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: 4.64%
• Average Volume (3M): 327.75K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.67
• Revenue Growth: 1.54%
• EPS Growth: N/A
• Country: US
• Employees: 74
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Diversified
• EPS (TTM): 0.44
• Shares Outstanding: 71,723,270
• 10 Day Avg. Volume: 273,966
• 30 Day Avg. Volume: 327,748
• PEG Ratio: <0.01
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.02
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: 0.48
• 1Y Price Target: $21.13
• Price Target Upside: 38.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 63 Neutral
• Price Target: $16.50 ▲(8.06%Upside)

Safehold's stock is moderately rated due to strong valuation metrics and strategic initiatives, tempered by high leverage, market uncertainties, and mixed technical indicators.

Positive Factors

Financial Performance

SAFE delivered a first quarter EPS slightly above analyst estimates, indicating better-than-expected financial performance.

Growth Potential

The company has approximately $386 million in non-binding letters of intent in the pipeline, suggesting potential for future growth.

Liquidity and Debt Management

Safehold advantageously issued some notes to extend the maturity profile of the balance sheet and create some additional liquidity.

Negative Factors

Deal Origination

Deal originations were zero during the quarter, indicating slow activity in securing new deals.

Economic Environment

Interest rate volatility and economic uncertainty have been a headwind with investment activity declining.

Investment Activity

Investment volume during the quarter was anemic, with just one new ground lease investment in a multifamily asset.

Safehold Business Overview & Revenue Model

Company Description

Safehold Inc. (SAFE) is a real estate investment trust (REIT) that specializes in ground leases. The company focuses on transforming the ground lease sector by providing capital solutions for owners and developers of high-quality commercial real estate. Safehold's innovative approach helps property owners unlock value and achieve greater efficiency in their real estate operations while maintaining ownership of their buildings.

How the Company Makes Money

Safehold makes money primarily through the acquisition and management of ground leases. Ground leases separate ownership of the land from the ownership of the buildings on it. Safehold purchases the land underlying commercial properties and then leases it back to the property owners under long-term agreements. The company generates revenue from the rent payments made by these property owners. Additionally, Safehold benefits from the appreciation of the land value over time. Key revenue streams include the rent collected from ground leases and potential gains from the appreciation of the land. The company may also engage in strategic partnerships with developers and property owners to structure ground leases that provide mutually beneficial financial terms.

Safehold Financial Statement Overview

Summary

Safehold exhibits strong revenue growth and profitability with robust margins, but high leverage and moderate cash generation present potential risks. Solid operational efficiency is counterbalanced by the need for careful management of debt levels and cash flow to sustain financial health.

Income Statement

Safehold's revenue has shown consistent growth over the past few years, with a TTM revenue growth rate of 1.37% from the previous year. The company's gross profit margin is strong at 98.19%, indicating excellent control over cost of goods sold. The net profit margin for the TTM is 28.17%, reflecting solid profitability, though slightly down from the previous year. EBIT and EBITDA margins are robust at 37.11% and 84.83%, respectively, indicating strong operational efficiency. However, past volatility in net income suggests potential risks in maintaining profitability.

Balance Sheet

Safehold's balance sheet shows a high debt-to-equity ratio of 1.81, indicating significant leverage. However, the return on equity is healthy at 4.44%, demonstrating effective use of equity capital. The equity ratio stands at 33.93%, suggesting moderate reliance on equity financing. While the company has a stable asset base, the high leverage could pose risks in an adverse economic environment.

Cash Flow

The company has shown positive free cash flow growth, with a TTM growth rate of 31.64%. The operating cash flow to net income ratio is 0.48, and the free cash flow to net income ratio is 0.48, indicating adequate cash generation relative to net income. However, the cash flow from operations is relatively low compared to the debt levels, which could impact future liquidity if not managed carefully.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
370.69M	365.69M	352.58M	158.05M	187.01M	155.43M
	Gross Profit
363.99M	361.46M	347.93M	-55.05M	184.35M	152.95M
	EBIT
137.54M	87.08M	-77.08M	-7.11M	151.45M	123.84M
	EBITDA
314.35M	320.36M	140.41M	229.76M	163.43M	135.92M
	Net Income Common Stockholders
104.40M	105.76M	-54.97M	-197.27M	73.12M	59.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.19M	15.58M	28.47M	1.44B	29.62M	56.95M
	Total Assets
6.93B	6.90B	6.55B	3.25B	4.52B	3.21B
	Total Debt
4.25B	4.23B	3.97B	1.60B	2.70B	1.69B
	Net Debt
4.23B	4.22B	3.95B	157.90M	2.67B	1.63B
	Total Liabilities
4.55B	4.53B	4.25B	1.83B	2.83B	1.83B
	Stockholders Equity
2.35B	2.34B	2.23B	1.41B	1.68B	1.38B
Cash Flow		Free Cash Flow
49.82M	37.85M	15.39M	24.61M	-1.22B	-21.04M
	Operating Cash Flow
49.82M	37.85M	15.39M	47.67M	26.92M	35.71M
	Investing Cash Flow
-163.89M	-212.37M	-576.57M	2.79B	-1.29B	-530.64M
	Financing Cash Flow
58.10M	144.89M	559.53M	-1.78B	1.20B	544.62M

Safehold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFE, the sentiment is Negative. The current price of 15.27 is above the 20-day moving average (MA) of 15.25, below the 50-day MA of 15.42, and below the 200-day MA of 19.11, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 53.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAFE.

Safehold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAT	73 Outperform	$1.25B	15.24	6.74%	6.74%	12.64%	49.11%
BNL	70 Outperform	$3.05B	27.12	3.79%	7.20%	0.73%	-37.65%
ESRT	69 Neutral	$1.47B	28.22	5.44%	1.61%	1.41%	3.11%
GOOD	64 Neutral	$683.07M	50.07	7.51%	8.29%	3.01%	―
SAFE	63 Neutral	$1.10B	10.32	4.51%	4.64%	1.54%	―
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
GNL	50 Neutral	$1.65B	―	-13.01%	10.28%	16.69%	39.04%

Safehold Corporate Events

Safehold Appoints New Chief Accounting Officer

On June 4, 2025, Safehold Inc. announced the appointment of Christopher Uhlick as the new Chief Accounting Officer, effective July 7, 2025. Mr. Uhlick, who has extensive experience in accounting and financial reporting, will succeed Brett Asnas, who will continue as the Chief Financial Officer. This leadership change is expected to strengthen Safehold’s financial operations and maintain its strategic focus in the industry.

The most recent analyst rating on (SAFE) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Safehold stock, see the SAFE Stock Forecast page.

Safehold Elects Directors and Ratifies Auditor

On May 15, 2025, Safehold held its Annual Meeting virtually, where shareholders elected five directors to serve until the 2026 Annual Meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, and a non-binding advisory vote approved the compensation of the company’s named executive officers.

The most recent analyst rating on (SAFE) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Safehold stock, see the SAFE Stock Forecast page.

Safehold Releases Q1 2025 Earnings Presentation

On May 6, 2025, Safehold Inc. released an earnings presentation for the quarter ending March 31, 2025. The presentation, available on their website, is not considered filed under the Securities Exchange Act of 1934, indicating it is for informational purposes only and not subject to certain legal liabilities.

Safehold Completes Vesting of Caret Units by March 2025

Safehold Inc. announced that as of March 31, 2025, all outstanding Caret units awarded under its Caret Performance Incentive Plan are fully vested, except for certain grants related to its merger with iStar on March 31, 2023. The company has sold 122,500 Caret units to third-party investors, and it owns 84.3% of the outstanding Caret units. This development reflects Safehold’s strategic efforts to align its employee incentives with its market performance and to attract external investment, potentially impacting its stock valuation and stakeholder interests.

Safehold Announces Board Member Jesse Hom’s Departure

On March 20, 2025, Jesse Hom informed Safehold Inc. that he will not seek re-election to the Board of Directors at the 2025 annual meeting and will resign from all his positions effective May 15, 2025. This decision is not due to any disagreement with the company’s operations or policies, and following his resignation, the Board will reduce its size from six to five directors.