RBC downgrades Safehold to Sector Perform amid overhangs

As previously reported, RBC Capital downgraded Safehold (SAFE) to Sector Perform from Outperform with a price target of $16, down from $18. Given an overhang from ongoing litigation related to the Park Hotels portfolio and uncertainty related to the 50th St asset, the firm sees limited upside potential for shares, the analyst tells investors. The firm is also incorporating an upward revision in discount rate and long-term funding costs given the rate backdrop, the analyst noted.