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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on SAFE

Safehold Inc.'s recent performance was driven by a strong Q4 2025 earnings release, which showcased the company's resilience in the face of NYC uncertainty. The headline numbers revealed a solid quarter, with key metrics exceeding Wall Street estimates. Additionally, the consensus price target hints at a 28.9% upside potential, fueled by an upward trend in earnings estimate revisions. Furthermore, the company's Q4 2025 earnings call transcript provided valuable insights into its operations and future prospects.

1.c. Company Highlights

2. Safehold Inc. Delivers Steady Performance in Q4 2025

Safehold Inc. reported a GAAP revenue of $97.9 million and net income of $27.9 million for the fourth quarter, with a full-year GAAP revenue of $385.6 million and net income of $114.5 million. The company's earnings per share (EPS) came in at $0.42, in line with analyst estimates. The portfolio continues to perform well, earning a 3.8% cash yield and a 5.4% annualized yield, with an economic yield of 5.9% and additional upside from periodic CPI lookbacks.

Publication Date: Feb -22

📋 Highlights
  • 2026 Strategic Focus Areas: Adding ground lease volume, recognizing Carats value, and utilizing share repurchase program as outlined by CEO Jay Sugarman.
  • 2025 Financial Performance: FY2025 GAAP revenue $385.6M, net income $114.5M; Q4 revenue $97.9M, net income $27.9M.
  • Portfolio Yield Metrics: 3.8% cash yield, 5.4% annualized yield, 5.9% economic yield with CPI lookback upside; top 10 markets hold 65% of portfolio.
  • Capital Structure: $4.9B debt, $1.2B cash and credit facility availability; $265M in unfunded commitments (5%+ yield) and $125M in loan commitments (SOFR+300).
  • Buyback Strategy: Stock viewed as discounted; $140M in ground lease and $125M in loan unfunded commitments support accretive debt-side value.

Financial Performance Highlights

The company's financial performance was characterized by a diversified portfolio with top 10 markets by gross book value representing approximately 65% of the portfolio. The capital structure remains robust, with approximately $4.9 billion of debt and $1.2 billion of cash and credit facility availability. As Brett Asnas, CFO, noted, the company is well-positioned to continue driving down debt cost of capital, with credit spreads at all-time tights.

Valuation and Growth Prospects

With a P/E Ratio of 9.99 and a P/B Ratio of 0.47, the stock appears to be reasonably valued. Analysts estimate next year's revenue growth at 6.2%, indicating a positive outlook for the company's top line. The company's focus on adding ground lease volume, recognizing Carats value, and utilizing the share repurchase program is expected to drive long-term value creation.

Operational Highlights and Outlook

The company is making progress outside of California, with several transactions under LOI in other states expected to translate into closings over the coming quarters. The company's leasehold loans provide a one-stop shop solution, with a blended cost of capital that is attractive to customers. With a net G&A guidance number of high $40 million for 2026, the company is poised for continued growth and profitability.

Capital Management and Leverage

Brett Asnas discussed the company's capital recycling exercises, emphasizing the importance of strategic transactions that add multiple values. The company has room for incremental leverage, but is not prioritizing raising more equity capital versus tapping the unsecured bond market in the near term. The company's focus on maintaining a leverage-neutral position is expected to support long-term value creation.

3. NewsRoom

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Safehold Named 2026 Ivory Prize Finalist for Affordable Housing Innovation

Feb -19

Source: prnewswire.com

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Contrasting Equity Residential (NYSE:EQR) & Safehold (NYSE:SAFE)

Feb -18

Source: defenseworld.net

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Michael Dell's Strategic Moves: Significant Reduction in Hayward Holdings Inc.

Feb -18

Source: gurufocus.com

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Star Holdings Reports Fourth Quarter and Fiscal Year 2025 Results

Feb -17

Source: prnewswire.com

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Safehold Inc. (SAFE) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

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SAFE or ESS: Which Is the Better Value Stock Right Now?

Feb -12

Source: zacks.com

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Wall Street Analysts Think Safehold (SAFE) Could Surge 28.9%: Read This Before Placing a Bet

Feb -12

Source: zacks.com

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Safehold (SAFE) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Ground Leases

Expected Growth: 4.0%

Safehold Inc.'s Ground Leases growth is driven by increasing demand for modernized and redeveloped properties, expansion into new markets, and a strong pipeline of acquisitions. Additionally, the company's unique business model, which focuses on providing long-term, triple-net leases, provides a stable source of revenue and attracts high-quality tenants, contributing to its 4.0% growth.

7. Detailed Products

iStar 2.0

A comprehensive platform that provides a single, integrated solution for managing and optimizing commercial real estate investments.

Ground Lease Capital Solutions

A platform that provides access to capital for ground lease transactions, allowing property owners to monetize their land.

Safehold Portfolio

A diversified portfolio of ground leases and other commercial real estate investments.

iStar Property Management

A comprehensive property management platform that provides services including leasing, property operations, and construction management.

8. Safehold Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Safehold Inc. is moderate due to the presence of alternative real estate investment trusts (REITs) and other investment options.

Bargaining Power Of Customers

The bargaining power of customers is low for Safehold Inc. as the company's diversified portfolio and strong brand reputation reduce the negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Safehold Inc. as the company relies on a diverse range of suppliers for its operations, but has some negotiating power due to its scale and reputation.

Threat Of New Entrants

The threat of new entrants is high for Safehold Inc. due to the relatively low barriers to entry in the REIT industry and the potential for new competitors to emerge.

Intensity Of Rivalry

The intensity of rivalry is high for Safehold Inc. due to the competitive nature of the REIT industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.02%
Debt Cost 4.42%
Equity Weight 35.98%
Equity Cost 8.14%
WACC 5.75%
Leverage 177.93%

11. Quality Control: Safehold Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Global Net Lease

A-Score: 6.7/10

Value: 7.1

Growth: 3.3

Quality: 4.8

Yield: 10.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Peakstone Realty Trust

A-Score: 6.0/10

Value: 7.2

Growth: 5.1

Quality: 3.7

Yield: 9.0

Momentum: 6.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Safehold

A-Score: 5.3/10

Value: 5.9

Growth: 5.2

Quality: 5.8

Yield: 7.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Medalist Diversified REIT

A-Score: 5.0/10

Value: 5.3

Growth: 4.6

Quality: 2.8

Yield: 5.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Generation Income Properties

A-Score: 4.7/10

Value: 9.8

Growth: 5.3

Quality: 3.5

Yield: 3.0

Momentum: 5.5

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Empire State Realty Trust

A-Score: 4.2/10

Value: 5.4

Growth: 4.4

Quality: 4.2

Yield: 3.0

Momentum: 1.5

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.94$

Current Price

15.94$

Potential

-0.00%

Expected Cash-Flows