Safehold (SAFE) AI Stock Analysis

• Market Cap: $955.79M
• Dividend Yield: 5.15%
• Average Volume (3M): 393.62K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.45
• Revenue Growth: 1.30%
• EPS Growth: -6.14%
• Country: US
• Employees: 74
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.41
• Shares Outstanding: 71,756,330
• 10 Day Avg. Volume: 585,037
• 30 Day Avg. Volume: 393,616
• PEG Ratio: -0.04
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 3.61
• P/FCF Ratio: 34.84
• Enterprise Value/Market Cap: 5.97
• Enterprise Value/Revenue: 15.25
• Enterprise Value/Gross Profit: 15.42
• Enterprise Value/Ebitda: 17.79
• 1Y Price Target: $18.00
• Price Target Upside: 30.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.62
• Revenue Forecast (FY): $376.26M

• Rating: 69 Neutral
• Price Target: $15.50 ▲(12.73% Upside)

Safehold's overall stock score reflects strong financial performance and attractive valuation, offset by bearish technical indicators and challenges highlighted in the earnings call. The company's high leverage and litigation issues present potential risks, but its growth in multifamily ground leases and robust liquidity provide a solid foundation for future performance.

Positive Factors

Revenue Growth

Strong revenue growth reflects Safehold's successful expansion strategy and ability to capture market opportunities, enhancing long-term value.

Liquidity Position

A robust liquidity position allows Safehold to pursue growth opportunities and manage financial obligations, supporting long-term stability.

Multifamily Ground Leases

Expansion in multifamily ground leases indicates strategic growth in a key sector, enhancing revenue streams and market presence.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting Safehold's ability to invest in growth and weather downturns.

Litigation Issues

Litigation can lead to financial and reputational risks, diverting resources and focus from core operations and growth initiatives.

Extended Deal Closure Timeframes

Extended deal closure timeframes can delay revenue realization and disrupt cash flow, affecting Safehold's growth and operational efficiency.

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 strong revenue growth and profitability with high margins, indicating efficient operations. However, the high leverage and moderate cash flow coverage ratios suggest potential financial risks. The company is on a growth trajectory but must manage its debt levels carefully to maintain financial stability.

Income Statement

Safehold's income statement shows strong performance with a high gross profit margin of 98.89% and a solid net profit margin of 27.45% in the TTM. Revenue growth is impressive at 92% TTM, indicating robust expansion. EBIT and EBITDA margins are also strong, reflecting efficient operations. However, the volatility in net income over previous years suggests some instability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.83, indicating significant leverage, which could pose risks if not managed carefully. Return on equity is modest at 4.39%, suggesting average profitability relative to equity. The equity ratio is not explicitly calculated, but the company's substantial assets provide a solid base.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 6.51% TTM, indicating improving cash generation. However, the operating cash flow to net income ratio of 0.42 suggests that cash generation from operations is not fully covering net income, which could be a concern. The free cash flow to net income ratio is 1.0, showing alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	374.10M	365.69M	352.58M	270.31M	187.01M	158.73M
Gross Profit	369.95M	361.46M	347.93M	267.20M	184.35M	156.25M
EBITDA	320.82M	320.36M	140.41M	285.57M	165.05M	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	5.85B	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	3.69B	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: Negative
• Last Price: 13.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 13.75 is below the 20-day moving average (MA) of 14.80, below the 50-day MA of 15.34, and below the 200-day MA of 15.63, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 27.60 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
SAFE	69 Neutral	$955.79M	8.37	4.82%	5.15%	1.30%	-6.14%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESRT	65 Neutral	$1.25B	35.67	3.80%	1.88%	0.45%	-24.85%
GOOD	59 Neutral	$535.59M	59.51	5.96%	10.68%	4.95%	-6.49%
AAT	59 Neutral	$1.18B	19.02	5.29%	6.75%	5.95%	5.06%
AHH	56 Neutral	$510.58M	47.12	4.09%	9.72%	-39.94%	―
GNL	52 Neutral	$1.72B	―	-12.53%	10.66%	-28.94%	-28.24%

Safehold Corporate Events

Safehold Inc. Reports Steady Financial Performance

Safehold Inc. is a real estate investment trust (REIT) specializing in ground leases, offering a unique approach to property investment by separating land ownership from building ownership.

Safehold Releases Q3 2025 Earnings Presentation

On November 5, 2025, Safehold Inc. released its earnings presentation for the quarter ending September 30, 2025, on its website. The presentation is provided for informational purposes and is not considered filed under the Securities Exchange Act of 1934, nor will it be incorporated into any registration statements under the Securities Act of 1933 unless specifically referenced.

The most recent analyst rating on (SAFE) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Safehold stock, see the SAFE Stock Forecast page.

Safehold Updates Caret Performance Incentive Plan Details

Safehold Inc. announced details regarding its Caret Performance Incentive Plan as of September 30, 2025. The company holds all GL units of Portfolio Holdings and has awarded Caret units to employees and third-party investors. As of the stated date, 14.4% of Caret units are owned by officers and employees, with 128,971 units available for future awards. Additionally, Safehold owns 84.3% of the outstanding Caret units, with significant involvement from third-party investors like MSD Partners, L.P. This update highlights the company’s strategic focus on incentivizing performance and maintaining significant control over its Caret units, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (SAFE) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Safehold stock, see the SAFE Stock Forecast page.

Safehold Inc. Earnings Call: Growth Amid Challenges

The recent earnings call for Safehold Inc. presented a balanced view, highlighting strong new origination activity and positive pipeline growth, while also acknowledging market challenges and a decline in GAAP earnings. Despite these hurdles, the company maintains a solid financial position, supported by strategic hedging. However, concerns linger over the Park Hotels portfolio and broader market conditions.

Safehold Inc. Reports Strong Q2 2025 Results

Safehold Inc., a real estate investment trust (REIT) specializing in modern ground leases, offers property owners a unique way to unlock land value beneath their buildings, focusing on high-quality multifamily, office, industrial, and mixed-use properties.