Safehold (SAFE) AI Stock Analysis

• Market Cap: $965.12M
• Dividend Yield: 5.26%
• Average Volume (3M): 423.90K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.44
• 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: 360,751
• 30 Day Avg. Volume: 423,901
• 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: 5.91
• Enterprise Value/Revenue: 15.03
• Enterprise Value/Gross Profit: 15.21
• Enterprise Value/Ebitda: 17.22
• 1Y Price Target: $19.75
• Price Target Upside: 46.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.62
• Revenue Forecast (FY): $376.98M

• Rating: 65 Neutral
• Price Target: $14.50 ▲(7.81% Upside)

Safehold's overall stock score is driven by strong profitability and attractive valuation, with a low P/E ratio and high dividend yield. However, high leverage and declining cash flow growth present financial risks. Technical indicators suggest bearish momentum, and while the earnings call showed growth potential, it also highlighted operational challenges.

Positive Factors

Strong Profit Margins

High profit margins indicate efficient operations and pricing power, allowing Safehold to maintain profitability even with modest revenue growth.

Robust Liquidity Position

A strong liquidity position provides Safehold with the flexibility to pursue growth opportunities and manage financial obligations effectively.

Expansion in Ground Lease Market

Expansion in the ground lease market, particularly in multifamily housing, supports long-term revenue growth and diversification of income streams.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially impacting Safehold's ability to finance operations and growth.

Declining Cash Flow Growth

Declining cash flow growth may limit Safehold's ability to reinvest in its business and meet financial obligations, affecting long-term sustainability.

Challenges with Park Hotel Master Lease

Litigation and operational challenges with major leases can disrupt revenue streams and create uncertainty in Safehold's business model.

Safehold Business Overview & Revenue Model

Company Description

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Through its modern ground lease capital solution, Safehold helps owners of high quality multifamily, office, industrial, hospitality and mixed-use properties in major markets throughout the United States generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT) and is managed by its largest shareholder, iStar Inc., seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.

How the Company Makes Money

Safehold generates revenue primarily through the collection of rent from its ground leases. The company enters into long-term ground lease agreements with property developers and owners, allowing them to utilize the land while Safehold retains ownership. These leases typically span periods of 49 to 99 years, providing a stable and predictable income stream. Additionally, Safehold benefits from the appreciation of land values over time, which enhances the overall value of its portfolio. The company may also engage in partnerships with developers or other real estate firms to expand its footprint and leverage expertise in urban development, further contributing to its revenue growth. The combination of long-term lease agreements and the potential for land value appreciation forms the backbone of Safehold's revenue model.

Safehold Financial Statement Overview

Summary

Safehold demonstrates strong profitability and operational efficiency, as evidenced by high margins. However, the company faces challenges with high leverage and declining cash flow growth, which could impact future financial flexibility. While revenue growth is stable, the company needs to manage its debt levels and improve cash flow generation to sustain long-term growth.

Income Statement

Safehold's income statement shows strong profitability with a high gross profit margin of 98.89% and a solid net profit margin of 27.45% for TTM. Revenue growth is modest at 1.63% TTM, indicating stable but slow growth. The EBIT and EBITDA margins are robust at 82.66% and 85.76% respectively, reflecting efficient operations. However, the growth rate has slowed compared to previous years.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.83, indicating significant leverage, which could pose risks if interest rates rise. Return on equity is low at 4.39%, suggesting limited profitability relative to equity. The equity ratio stands at 33.44%, showing a moderate level of equity financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -18.22% TTM, which is concerning. The operating cash flow to net income ratio is 0.42, indicating that cash generation is not fully aligned with net income. However, the free cash flow to net income ratio is 1.0, suggesting that all net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	379.55M	365.69M	352.58M	270.31M	187.01M	158.73M
Gross Profit	375.06M	361.46M	347.93M	267.20M	184.35M	156.25M
EBITDA	331.43M	320.36M	140.41M	285.57M	165.05M	135.92M
Net Income	112.63M	105.76M	-54.97M	135.42M	73.12M	59.29M
Balance Sheet
Total Assets	7.15B	6.90B	6.55B	5.85B	4.52B	3.21B
Cash, Cash Equivalents and Short-Term Investments	21.26M	15.58M	28.47M	20.07M	29.62M	56.95M
Total Debt	4.58B	4.23B	3.97B	3.53B	2.70B	1.69B
Total Liabilities	4.73B	4.53B	4.25B	3.69B	2.83B	1.83B
Stockholders Equity	2.39B	2.34B	2.23B	2.14B	1.68B	1.38B
Cash Flow
Free Cash Flow	43.39M	37.85M	15.39M	64.85M	-1.22B	5.00M
Operating Cash Flow	43.39M	37.85M	15.39M	64.85M	26.92M	61.76M
Investing Cash Flow	-201.53M	-212.37M	-576.57M	-1.15B	-1.29B	-8.20M
Financing Cash Flow	155.14M	144.89M	559.53M	1.09B	1.20B	-255.47M

Safehold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.45
• 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 13.45 is below the 20-day moving average (MA) of 13.55, below the 50-day MA of 14.63, and below the 200-day MA of 15.44, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 64.57 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SAFE	65 Neutral	$965.12M	8.45	4.82%	5.26%	1.30%	-6.14%
ESRT	65 Neutral	$1.20B	34.36	3.80%	1.99%	0.45%	-24.85%
GOOD	59 Neutral	$539.50M	59.95	5.96%	10.95%	4.95%	-6.49%
AAT	59 Neutral	$1.19B	19.19	5.29%	6.75%	5.95%	5.06%
GNL	59 Neutral	$1.80B	―	-12.53%	10.25%	-28.94%	-28.24%
AHH	56 Neutral	$526.61M	48.59	4.09%	9.97%	-39.94%	―

Safehold Corporate Events

Safehold Inc. Earnings Call: Growth Amid Challenges

Safehold Inc.’s recent earnings call presented a mixed sentiment, highlighting significant growth in multifamily ground leases and a robust liquidity position. However, these positives were tempered by challenges related to the Park Hotel master lease and ongoing litigation. While economic yields showed promise for profitability, concerns arose from a slight decline in rent coverage and extended timelines for deal closures.

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.