Safehold (SAFE) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: 4.34%
• Average Volume (3M): 459.62K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.65
• Revenue Growth: 1.59%
• EPS Growth: N/A
• Country: US
• Employees: 74
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Diversified
• EPS (TTM): 0.39
• Shares Outstanding: 71,755,960
• 10 Day Avg. Volume: 352,105
• 30 Day Avg. Volume: 459,618
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.82
• Enterprise Value/Revenue: 15.07
• Enterprise Value/Gross Profit: 15.24
• Enterprise Value/Ebitda: 17.58
• 1Y Price Target: $19.38
• Price Target Upside: 18.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $17.00 ▲(4.29% Upside)

Safehold's overall stock score reflects strong financial performance and attractive valuation, tempered by technical indicators suggesting caution and challenges highlighted in the earnings call. The company's strategic initiatives and leadership changes are positive, but high leverage and market uncertainties remain key risks.

Positive Factors

Financial Performance

SAFE delivered 2Q25 EPS of $0.39, which exceeded expectations when adjusted for required loan reserves.

Liquidity

The company maintains a strong liquidity position of $1.3 billion with no debt maturities until 2027.

Strategic Positioning

SAFE's strategy of acquiring and aggregating a portfolio of ground net leases is seen as attractive on a risk-adjusted basis.

Negative Factors

Interest Rate Environment

SAFE's business remains challenged in this interest rate environment.

Lease Agreements

Park hotel is not expected to renew 2 of the 5 hotels in its master lease with SAFE, which is likely to cause an income drag.

Valuation

SAFE's valuation looks expensive on a cash flow multiple basis, with current cash flow production net of debt and overhead being very low.

Safehold Business Overview & Revenue Model

Company Description

Safehold Inc. (SAFE) is a real estate investment trust (REIT) focused on acquiring, owning, and managing ground leases for commercial properties across the United States. The company operates primarily in the real estate sector, providing long-term, stable income through investments in land leases. Safehold’s core service involves structuring ground leases that are typically 99 years in duration, allowing property owners to develop and utilize their properties while providing Safehold with a consistent revenue stream from lease payments.

How the Company Makes Money

Safehold generates revenue primarily through the collection of ground lease payments from property owners. These leases generally involve long-term agreements where Safehold retains ownership of the land while leasing it to developers or businesses that build and operate on the land. The company benefits from the appreciation of land value and the stability of rental income over time. Additionally, Safehold may engage in providing financing solutions for the property owners, further enhancing its revenue potential. The company's ability to secure favorable lease terms and maintain a diversified portfolio of properties across various sectors contributes significantly to its earnings. Strategic partnerships with real estate developers and financial institutions also play a crucial role in expanding its market presence and securing new ground lease opportunities.

Safehold Financial Statement Overview

Summary

Safehold demonstrates solid revenue growth and profitability with strong margins. However, high leverage and moderate cash generation pose potential risks. The company appears to be on a positive trajectory, but careful management of debt levels and cash flow is essential 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	374.10M	365.69M	361.62M	279.37M	193.29M	158.73M
Gross Profit	369.95M	361.46M	347.93M	-55.05M	190.63M	156.25M
EBITDA	320.82M	320.36M	140.41M	239.56M	163.43M	135.92M
Net Income	102.68M	105.76M	-54.97M	135.42M	73.12M	59.29M
Balance Sheet
Total Assets	7.06B	6.90B	6.55B	3.25B	4.52B	3.21B
Cash, Cash Equivalents and Short-Term Investments	19.09M	15.58M	28.47M	20.07M	29.62M	56.95M
Total Debt	4.35B	4.23B	3.97B	3.53B	2.70B	1.69B
Total Liabilities	4.66B	4.53B	4.25B	1.83B	2.83B	1.83B
Stockholders Equity	2.37B	2.34B	2.23B	2.14B	1.68B	1.38B
Cash Flow
Free Cash Flow	53.06M	37.85M	15.39M	24.61M	-1.22B	-21.04M
Operating Cash Flow	53.06M	37.85M	15.39M	47.67M	26.92M	35.71M
Investing Cash Flow	-199.51M	-212.37M	-576.57M	2.79B	-1.29B	-530.64M
Financing Cash Flow	147.36M	144.89M	559.53M	1.09B	1.20B	544.62M

Safehold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.30
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 16.3 is above the 20-day moving average (MA) of 15.74, above the 50-day MA of 15.24, and below the 200-day MA of 16.53, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 62.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAFE.

Safehold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAFE	74 Outperform	$1.17B	11.22	4.38%	4.34%	1.59%	―
BNL	71 Outperform	$3.53B	36.43	3.32%	6.26%	2.74%	-37.41%
ESRT	66 Neutral	$1.35B	33.32	4.36%	1.76%	1.77%	-8.72%
Sector *	63 Neutral	$7.09B	13.58	-0.39%	6.87%	4.08%	-25.24%
AAT	62 Neutral	$1.28B	17.18	6.26%	6.48%	11.68%	37.31%
GOOD	59 Neutral	$702.52M	36.70	8.51%	9.08%	5.85%	―
GNL	57 Neutral	$1.77B	―	-11.87%	11.31%	-11.06%	29.36%

Safehold Corporate Events

Safehold Releases Q2 2025 Earnings Presentation

On August 5, 2025, Safehold Inc. released its earnings presentation for the quarter ended June 30, 2025, on its website. This presentation is provided for informational purposes and is not filed under the Securities Exchange Act of 1934, nor is it incorporated into any registration statement under the Securities Act of 1933.

Safehold’s Caret Units Vesting Update

Safehold Inc. has a Caret Performance Incentive Plan that involves the issuance of Caret units, which are performance-based awards granted to employees, directors, and service providers. As of June 30, 2025, most of these units are fully vested, except for those related to the iStar merger and certain awards to a former employee. The company owns 84.3% of the outstanding Caret units, with a portion sold to third-party investors. This plan is part of Safehold’s broader strategy to align incentives and potentially enhance shareholder value.

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.