Safehold (SAFE) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 4.64%
• Average Volume (3M): 457.16K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.65
• Revenue Growth: 1.59%
• EPS Growth: N/A
• Country: US
• Employees: 74
• Sector: Real Estate
• Sector Strength: 45
• Industry: REIT - Diversified
• EPS (TTM): 0.39
• Shares Outstanding: 71,755,960
• 10 Day Avg. Volume: 582,183
• 30 Day Avg. Volume: 457,159
• 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: 5.15
• Enterprise Value/Revenue: 15.07
• Enterprise Value/Gross Profit: 15.24
• Enterprise Value/Ebitda: 17.58
• 1Y Price Target: $19.31
• Price Target Upside: 26.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $17.00 ▲(11.48% Upside)

Safehold's overall stock score reflects strong financial performance and reasonable valuation, supported by strategic corporate changes. However, financial risks due to high leverage and market challenges noted in the earnings call temper the outlook. The stock's lower volatility and attractive dividend yield are additional positives.

Positive Factors

Financial Performance

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

Investment Strategy

SAFE originated $220m at a 7.2% economic yield across 7 new deals, which is an improvement compared to last quarter's $20m funding.

Liquidity Position

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

Negative Factors

Income Challenges

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.

Interest Rate Environment

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

Valuation Concerns

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. (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 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: Neutral
• Last Price: 15.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFE, the sentiment is Neutral. The current price of 15.25 is above the 20-day moving average (MA) of 14.55, above the 50-day MA of 15.05, and below the 200-day MA of 16.87, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 94.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SAFE.

Safehold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNL	76 Outperform	$3.17B	32.73	3.32%	6.91%	2.74%	-37.41%
SAFE	72 Outperform	$1.09B	10.49	4.38%	4.64%	1.59%	―
Sector *	71 Outperform	¥233.02B	14.83	10.65%	3.47%	19.64%	27.23%
AAT	68 Neutral	$1.19B	16.01	6.26%	6.93%	11.68%	37.31%
ESRT	66 Neutral	$1.26B	31.06	4.36%	1.88%	1.77%	-8.72%
GOOD	64 Neutral	$616.34M	36.50	8.51%	9.13%	5.85%	―
GNL	56 Neutral	$1.65B	―	-11.87%	12.43%	-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.

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’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.

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 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.