Should SFL’s (SFL) New Equity Offering and DRIP Structure Require Action From Investors?

• In November 2025, SFL Corporation Ltd. completed an US$81.4 million follow-on equity offering, issuing 10,000,000 common shares at US$8.14 as part of a structure that also incorporates a dividend reinvestment plan.
• This fresh equity raise not only brings in new capital but also signals how SFL is choosing to fund its fleet-focused growth while managing shareholder dilution and income reinvestment options.
• Next, we’ll examine how issuing 10,000,000 new shares and using a dividend reinvestment plan may reshape SFL’s investment narrative.

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SFL Investment Narrative Recap

To own SFL, you need to believe in its ability to turn a mixed, asset-heavy shipping and energy portfolio into sustainable earnings and dividends despite sector volatility and regulatory pressures. The US$81.4 million follow-on equity raise, including a dividend reinvestment plan, modestly influences the near term by improving funding flexibility, but it does not materially change the key catalyst of redeploying high value assets or the main risk around capital intensity and dividend coverage right now.

The most directly connected recent announcement is the November 2025 decision to maintain the quarterly dividend at US$0.20 per share, even as SFL remains unprofitable and interest coverage looks tight. Against that backdrop, issuing 10,000,000 new shares and offering a dividend reinvestment option ties income expectations more closely to future cash flows and capital needs, which matter for both the company’s sizeable capex commitments and its exposure to shifts in global shipping and fossil fuel demand.

Yet beneath the headline of fresh equity and steady dividends, there is a funding and dividend sustainability risk that investors should be aware of, especially if...

Read the full narrative on SFL (it's free!)

SFL’s narrative projects $742.1 million revenue and $132.0 million earnings by 2028.

Uncover how SFL's forecasts yield a $9.42 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span a wide band from US$2.59 to US$9.43, showing how far opinions can stretch. Set against this, concerns about dividend coverage and capital commitments remind you to weigh these varied viewpoints against SFL’s ability to fund its fleet and payouts through the cycle.

Explore 4 other fair value estimates on SFL - why the stock might be worth less than half the current price!

Build Your Own SFL Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SFL research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free SFL research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SFL's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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