Safehold Inc. (SAFE) | Investment Case

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 negatively impacted by its Q3 2025 earnings release, which revealed a mixed bag of results. Although the company reported strong growth in its ground lease portfolio, its earnings per share (EPS) and revenue metrics were closely watched by investors. A reduction in holdings by Allspring Global Investments Holdings LLC, which trimmed its position by 29.8%, may have also contributed to downward pressure. Additionally, the company's "Hold" rating from brokerages, as reported by Marketbeat.com, may have tempered investor enthusiasm.

1.c. Company Highlights

Last Price	13.45
Change Percentage	0.52%
Open	13.47
Previous Close	13.38
Market Cap ( Millions)	965
Volume	328267
Year High	21.9
Year Low	12.76
M A 50	14.5
M A 200	15.64

FCF Yield	5.50%
Dividend Yield	5.26%
ROE	4.39%
Debt / Equity	183.37%
Net Debt / EBIDTA	1352.19%
Price To Book	0.41
Price Earnings Ratio	9.4
Price To FCF	18.19
Price To sales	2.58
EV / EBITDA	16.53

2. Safehold's Q3 2025 Earnings: Steady Activity in Ground Lease Business

Safehold reported GAAP revenue of $96.2 million, net income of $29.3 million, and earnings per share (EPS) of $0.41, beating estimates of $0.4. The company's ground lease portfolio generated a 5.9% economic yield, which increased to 6.0% on an inflation-adjusted basis and 7.5% with estimated unrealized capital appreciation. The total portfolio stood at $7 billion, with an estimated unrealized capital appreciation of $9.1 billion. The company's strong balance sheet and liquidity position were evident, with approximately $1.1 billion of liquidity and a weighted average debt maturity of 19 years.

Publication Date: Nov -17

                                    📋 Highlights
                                    Financial Performance::
                                                Q3 GAAP revenue $96.2M, net income $29.3M, EPS $0.41, reflecting steady operational results.
Portfolio Growth::
                                                Total ground lease portfolio of $7B, 21x increase since IPO, with $9.1B estimated UCA (unrealized capital appreciation).
Deal Activity::
                                                Originated $42M in Q3 and $34M in Q4 to date for 8 multifamily ground leases, all in affordable housing, with a $300M+ pipeline.
Yields & Liquidity::
                                                5.9% economic yield (7.5% with UCA), $1.1B liquidity, and 19-year average debt maturity, ensuring strong balance sheet resilience.
Legal & Strategic Focus::
                                                Park Hotel litigation ongoing due to lease breaches; emphasis on affordable housing expansion and diversifying into office/industrial sectors.

                                

Operational Highlights

The company originated 4 multifamily ground leases for $42 million in Q3 and an additional 4 for $34 million in Q4 to date, all within the affordable housing subsegment. The ground lease portfolio had 155 assets, including 92 multifamily properties, and has grown 21x since its IPO. Safehold sees momentum in affordable housing deals and expects to close more transactions in Q4 and 2026, with a diversifying deal pipeline that includes opportunities in office, industrial, and other property types.

Litigation Update

Regarding the Park Hotel master lease, Safehold sent a lease termination notice due to breaches of contractual obligations, and the matter is now in litigation. The company will pursue all contractual rights to protect shareholder value, and the tenant is still paying rent. Safehold doesn't see the recent litigation outcome as an indicator of anything or a precedent for anything and doesn't think it impacts their view on the ground lease ecosystem.

Valuation and Outlook

With a P/E Ratio of 9.37 and a Dividend Yield of 5.28%, Safehold's valuation appears reasonable. The company's pipeline is sensitive to interest rate moves, with more transactions when rates dip down. Analysts estimate next year's revenue growth at 4.9%. The company's focus on affordable housing and its potential to create value through ground leases in areas like New York City could drive future growth. As of now, around 41% of the company's multifamily portfolio is affordable housing, and they are working on penetrating larger states, particularly in the Sun Belt and coastal areas.

3. NewsRoom

Safehold Reports Inducement Awards Under NYSE Listing Rule 303A.08

Dec -03

Source: prnewswire.com

Safehold Appoints Michael Trachtenberg as President

Dec -01

Source: prnewswire.com

Safestore Shares Rise 2% After Robust FY Trading Update

Nov -27

Source: forbes.com

B&I Capital AG Cuts Stock Position in Safehold Inc. $SAFE

Nov -27

Source: defenseworld.net

Safehold Announces $400 Million Unsecured Term Loan

Nov -25

Source: prnewswire.com

Safehold Receives Credit Ratings Upgrade to A- from S&P Global Ratings

Nov -24

Source: prnewswire.com

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

Nov -14

Source: gurufocus.com

REIT Replay: REIT Indexes Outperform Broader Markets During 1st Week Of November

Nov -11

Source: seekingalpha.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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Global Net Lease

A-Score: 6.1/10

Value: 6.9

Growth: 3.3

Quality: 3.6

Yield: 10.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

Peakstone Realty Trust

A-Score: 5.5/10

Value: 7.0

Growth: 5.1

Quality: 3.6

Yield: 9.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

Safehold

A-Score: 5.1/10

Value: 5.4

Growth: 5.3

Quality: 5.8

Yield: 7.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

Medalist Diversified REIT

A-Score: 4.8/10

Value: 5.0

Growth: 4.7

Quality: 2.8

Yield: 5.0

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

Generation Income Properties

A-Score: 4.3/10

Value: 7.0

Growth: 5.4

Quality: 3.9

Yield: 3.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

Empire State Realty Trust

A-Score: 4.2/10

Value: 5.7

Growth: 4.4

Quality: 4.4

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.32%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.75%

Safehold Inc. - US78646V1070

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SAFE

1.c. Company Highlights

Weak Momentum

Average Quality

Medium Volatility

Earnings Beats

Revenues Beats

Average Yield

Lower Quality

Stable Momentum

Strong Momentum

Revenues Miss

Average Growth

2. Safehold's Q3 2025 Earnings: Steady Activity in Ground Lease Business

Operational Highlights

Litigation Update

Valuation and Outlook

3. NewsRoom

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%

7. Detailed Products

iStar 2.0

Ground Lease Capital Solutions

Safehold Portfolio

iStar Property Management

8. Safehold Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.45$

Current Price

13.45$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA