Safehold (SAFE) AI Stock Analysis

• Market Cap: $1.06B
• Dividend Yield: 4.92%
• Average Volume (3M): 363.18K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.69
• Revenue Growth: 1.54%
• EPS Growth: N/A
• Country: US
• Employees: 74
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Diversified
• EPS (TTM): 0.44
• Shares Outstanding: 71,723,270
• 10 Day Avg. Volume: 319,740
• 30 Day Avg. Volume: 363,182
• PEG Ratio: -7.73
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.94
• Enterprise Value/Market Cap: 5.02
• Enterprise Value/Revenue: 3.57
• Enterprise Value/Gross Profit: 14.58
• Enterprise Value/Ebitda: 4.82
• 1Y Price Target: $20.56
• Price Target Upside: 42.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 62 Neutral
• Price Target: $16.00 ▲(11.11%Upside)

Safehold's overall stock score reflects a balance between solid profitability and growth prospects against challenges of high leverage and market volatility. The company's valuation appears attractive, enhancing its appeal to value-focused investors. However, technical indicators and market conditions suggest caution in the short term.

Positive Factors

Financial Performance

SAFE delivered a first quarter EPS slightly above analyst estimates, indicating better-than-expected financial performance.

Liquidity

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

Negative Factors

Interest Rate Environment

Interest rate volatility and economic uncertainty have been a headwind with investment activity declining.

New Deal Originations

There were no new originations in the quarter compared to $22 million in the previous quarter.

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 makes money primarily through the acquisition and management of ground leases. Ground leases separate ownership of the land from the ownership of the buildings on it. Safehold purchases the land underlying commercial properties and then leases it back to the property owners under long-term agreements. The company generates revenue from the rent payments made by these property owners. Additionally, Safehold benefits from the appreciation of the land value over time. Key revenue streams include the rent collected from ground leases and potential gains from the appreciation of the land. The company may also engage in strategic partnerships with developers and property owners to structure ground leases that provide mutually beneficial financial terms.

Safehold Financial Statement Overview

Summary

Safehold demonstrates solid revenue growth and profitability with strong margins. However, the high debt-to-equity ratio and moderate cash generation pose potential risks, especially if economic conditions worsen.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	365.69M	352.58M	158.05M	187.01M	155.43M
Gross Profit	361.46M	347.93M	-55.05M	184.35M	152.95M
EBITDA	320.36M	140.41M	229.76M	163.43M	135.92M
Net Income	105.76M	-54.97M	-197.27M	73.12M	59.29M
Balance Sheet
Total Assets	6.90B	6.55B	3.25B	4.52B	3.21B
Cash, Cash Equivalents and Short-Term Investments	15.58M	28.47M	1.44B	29.62M	56.95M
Total Debt	4.23B	3.97B	1.60B	2.70B	1.69B
Total Liabilities	4.53B	4.25B	1.83B	2.83B	1.83B
Stockholders Equity	2.34B	2.23B	1.41B	1.68B	1.38B
Cash Flow
Free Cash Flow	37.85M	15.39M	24.61M	-1.22B	-21.04M
Operating Cash Flow	37.85M	15.39M	47.67M	26.92M	35.71M
Investing Cash Flow	-212.37M	-576.57M	2.79B	-1.29B	-530.64M
Financing Cash Flow	144.89M	559.53M	-1.78B	1.20B	544.62M

Safehold Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.4 is below the 20-day moving average (MA) of 15.25, below the 50-day MA of 15.19, and below the 200-day MA of 17.50, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 14.76 is Positive, 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
AAT	70 Outperform	$1.22B	15.04	6.74%	6.77%	12.64%	49.11%
GOOD	69 Neutral	$622.03M	46.16	7.51%	8.99%	3.01%	―
BNL	66 Neutral	$3.00B	26.72	3.79%	7.36%	0.73%	-37.65%
SAFE	62 Neutral	$1.06B	9.96	4.51%	4.92%	1.54%	―
Sector *	61 Neutral	AU$2.87B	8.34	4.17%	5.12%	17.25%	41.52%
ESRT	59 Neutral	$1.25B	32.83	5.44%	1.89%	4.36%	-8.72%
GNL	57 Neutral	$1.60B	―	-13.01%	13.01%	16.69%	39.04%

Safehold Corporate Events

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.

Safehold Releases Q1 2025 Earnings Presentation

On May 6, 2025, Safehold Inc. released an earnings presentation for the quarter ending March 31, 2025. The presentation, available on their website, is not considered filed under the Securities Exchange Act of 1934, indicating it is for informational purposes only and not subject to certain legal liabilities.

Safehold Completes Vesting of Caret Units by March 2025

Safehold Inc. announced that as of March 31, 2025, all outstanding Caret units awarded under its Caret Performance Incentive Plan are fully vested, except for certain grants related to its merger with iStar on March 31, 2023. The company has sold 122,500 Caret units to third-party investors, and it owns 84.3% of the outstanding Caret units. This development reflects Safehold’s strategic efforts to align its employee incentives with its market performance and to attract external investment, potentially impacting its stock valuation and stakeholder interests.