DB:2T3

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

High growth potential with acceptable track record.

Share Price & News

How has Safehold's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

DB:2T3

2.5%

DE REITs

3.2%

DE Market


1 Year Return

n/a

DB:2T3

15.0%

DE REITs

-9.7%

DE Market

No trading data on 2T3.

No trading data on 2T3.


Share holder returns

2T3IndustryMarket
7 Day0.9%2.5%3.2%
30 Day-12.8%1.8%-4.4%
90 Day-0.08%6.0%-2.0%
1 Yearn/a19.1%15.0%-6.9%-9.7%
3 Yearn/a16.1%-0.2%11.8%2.2%
5 Yearn/a39.3%8.7%26.9%9.5%

Price Volatility Vs. Market

How volatile is Safehold's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Safehold undervalued based on future cash flows and its price relative to the stock market?

32.04x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Safehold's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Safehold's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Safehold is overvalued based on earnings compared to the DE REITs industry average.

Safehold is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Safehold is good value based on expected growth next year.


Price Based on Value of Assets

Safehold is good value based on assets compared to the DE REITs industry average.


Next Steps

Future Growth

How is Safehold expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

32.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Safehold's revenue is expected to grow significantly at over 20% yearly.

Safehold's earnings are expected to grow significantly at over 20% yearly.

Safehold's revenue growth is expected to exceed the Germany market average.

Safehold's earnings growth is expected to exceed the Germany market average.

Safehold's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Safehold is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Safehold performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Safehold has delivered over 20% year on year earnings growth in the past 5 years.

Safehold's 1-year earnings growth exceeds its 5-year average (420.1% vs 23.3%)

Safehold's earnings growth has exceeded the DE REITs industry average in the past year (420.1% vs 77.4%).


Return on Equity

Safehold has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Safehold used its assets less efficiently than the DE REITs industry average last year based on Return on Assets.


Return on Capital Employed

Safehold's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Safehold's financial position?


Financial Position Analysis

Safehold is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Safehold's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Safehold's level of debt (95.1%) compared to net worth is high (greater than 40%).

Unable to establish if Safehold's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (0.6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

What is Safehold's current dividend yield, its reliability and sustainability?

2.33%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Safehold's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).

Safehold's dividend is below the markets top 25% of dividend payers in Germany (4.18%).

Whilst dividend payments have been stable, Safehold has been paying a dividend for less than 10 years.

Dividend payments have increased, but Safehold only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (72.2x coverage).


Next Steps

Management

What is the CEO of Safehold's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Jay Sugarman (56yo)

2.8yrs

Tenure

0

Mr. Jay S. Sugarman has been the Chairman of the Board and Chief Executive Officer of iStar Inc. since founded in 1997. Mr. Sugarman serves as Chief Executive Officer of iStar Marlin LLC. He has been Chair ...


Management Age and Tenure

1.1yrs

Average Tenure

56yo

Average Age

The average tenure for the Safehold management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Safehold board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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Marcos Alvarado
EntityIndividual
Role
President
President & Chief Investment Officer
Shares2,900
Max PriceUS$14.10

Ownership Breakdown


Management Team

  • Jay Sugarman (56yo)

    CEO & Chairman

    • Tenure: 2.8yrs
  • Nina Matis (71yo)

    Vice Chairman

    • Tenure: 1.5yrs
  • Geoff Dugan

    General Counsel & Corporate Secretary

    • Tenure: 0.0yrs
  • Jason Fooks

    Senior Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Marcos Alvarado (38yo)

    President & Chief Investment Officer

    • Tenure: 1.1yrs
  • Tye Palonen

    Senior Vice President of Ground Lease Investments

    • Tenure: 0.9yrs
  • Elisha Blechner

    Executive VP & Co-Head of Investments

    • Tenure: 0.0yrs
  • Tim Doherty

    Executive VP & Co-Head of Investments

    • Tenure: 0.0yrs
  • Douglas Heitner

    Chief Legal Officer

    • Tenure: 0.4yrs

Board Members

  • Jay Sugarman (56yo)

    CEO & Chairman

    • Tenure: 2.8yrs
  • Dean Adler (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$195.05k
  • Robin Josephs (59yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$195.05k
  • Jay Nydick (54yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$195.05k
  • Stefan Selig (56yo)

    Lead Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$195.05k

Company Information

Safehold Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Safehold Inc.
  • Ticker: 2T3
  • Exchange: DB
  • Founded: 2016
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$1.124b
  • Listing Market Cap: US$1.014b
  • Shares outstanding: 40.44m
  • Website: https://www.safeholdinc.com

Location

  • Safehold Inc.
  • 1114 Avenue of the Americas
  • 39th Floor
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAFENYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2017
2T3DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2017

Biography

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 capi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 22:36
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.