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 Analysis

Solid track record with high growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2T3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.8%

2T3

1.9%

DE REITs

2.2%

DE Market


1 Year Return

n/a

2T3

2.6%

DE REITs

-17.2%

DE Market

Return vs Industry: Insufficient data to determine how 2T3 performed against the German REITs industry.

Return vs Market: Insufficient data to determine how 2T3 performed against the German Market.


Shareholder returns

2T3IndustryMarket
7 Day11.8%1.9%2.2%
30 Day17.8%-19.3%-15.7%
90 Day61.0%-13.1%-24.0%
1 Yearn/a6.0%2.6%-14.9%-17.2%
3 Yearn/a1.2%-13.3%-16.4%-23.3%
5 Yearn/a0.7%-21.5%-16.5%-27.8%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2T3 (€57) is trading below our estimate of fair value (€116.5)

Significantly Below Fair Value: 2T3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2T3 is poor value based on its PE Ratio (70.3x) compared to the REITs industry average (7.5x).

PE vs Market: 2T3 is poor value based on its PE Ratio (70.3x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: 2T3 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 2T3 is overvalued based on its PB Ratio (2.7x) compared to the DE REITs industry average (1.3x).


Next Steps

Future Growth

How is Safehold forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

44.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2T3's forecast earnings growth (44.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: 2T3's earnings (44.5% per year) are forecast to grow faster than the German market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2T3's revenue (34.7% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: 2T3's revenue (34.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2T3's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Safehold performed over the past 5 years?

39.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2T3 has high quality earnings.

Growing Profit Margin: 2T3's current net profit margins (29.8%) are higher than last year (24.3%).


Past Earnings Growth Analysis

Earnings Trend: 2T3's earnings have grown significantly by 39.4% per year over the past 5 years.

Accelerating Growth: 2T3's earnings growth over the past year (135.9%) exceeds its 5-year average (39.4% per year).

Earnings vs Industry: 2T3 earnings growth over the past year (135.9%) exceeded the REITs industry 35.5%.


Return on Equity

High ROE: 2T3's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Safehold's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 2T3 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2T3's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: 2T3's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 2T3 has a sufficient allowance for bad loans.

Low Risk Liabilities: 2T3 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 2T3 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 2T3 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 2T3 has an appropriate level of bad loans.


Next Steps

Dividend

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

0.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2T3's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: 2T3's dividend (0.99%) is low compared to the top 25% of dividend payers in the German market (4.87%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2T3 has been paying a dividend for less than 10 years.

Growing Dividend: 2T3's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.6%), 2T3's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2T3's dividends in 3 years are forecast to be thoroughly covered by earnings (0.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Jay Sugarman (56yo)

3.42s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jay Sugarman
CEO & Chairman3.42yrsno data0.22% $6.4m
Marcos Alvarado
President & Chief Investment Officer1.67yrsno data0.051% $1.5m
Garett Rosenblum
Chief Accounting Officerno datano datano data
Jason Fooks
Senior Vice President of Investor Relationsno datano datano data
Douglas Heitner
Chief Legal Officer1yrno datano data
Nina Matis
Vice Chairman2yrsno data0.080% $2.3m
Tye Palonen
Senior Vice President of Ground Lease Investments1.42yrsno datano data
Tim Doherty
Executive VP & Co-Head of Investmentsno datano datano data
Elisha Blechner
Executive VP & Co-Head of Investmentsno datano datano data
Geoffrey Dugan
General Counsel & Corporate Secretaryno datano datano data

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: 2T3's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jay Sugarman
CEO & Chairman3.42yrsno data0.22% $6.4m
Dean Adler
Independent Director2.83yrsUS$195.05kno data
Robin Josephs
Director2.67yrsUS$195.05k0.061% $1.8m
Jay Nydick
Independent Director2.67yrsUS$195.05k0.089% $2.6m
Stefan Selig
Lead Independent Director3.17yrsUS$195.05k0.079% $2.3m

2.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 2T3's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 70.2%.


Top Shareholders

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$3.215b
  • Listing Market Cap: US$2.925b
  • Shares outstanding: 50.84m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:13
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.