NYSE:SAFE

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.

Rewards

Earnings are forecast to grow 61.23% per year

Earnings grew by 243% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



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: SAFE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.6%

SAFE

0.4%

US REITs

0.3%

US Market


1 Year Return

117.8%

SAFE

12.5%

US REITs

18.5%

US Market

Return vs Industry: SAFE exceeded the US REITs industry which returned 12.5% over the past year.

Return vs Market: SAFE exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

SAFEIndustryMarket
7 Day5.6%0.4%0.3%
30 Day24.1%1.5%1.5%
90 Day51.5%0.4%5.7%
1 Year123.5%117.8%17.3%12.5%21.1%18.5%
3 Yearn/a34.9%18.1%45.9%36.4%
5 Yearn/a56.8%24.4%71.4%52.5%

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

Valuation

Is Safehold undervalued compared to its fair value and its price relative to the market?

49.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAFE ($41.87) is trading above our estimate of fair value ($0.76)

Significantly Below Fair Value: SAFE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SAFE is poor value based on its PE Ratio (49.4x) compared to the REITs industry average (38.8x).

PE vs Market: SAFE is poor value based on its PE Ratio (49.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SAFE is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SAFE is good value based on its PB Ratio (2x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

61.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAFE's forecast earnings growth (61.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SAFE's earnings (61.2% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: SAFE's revenue (40.8% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: SAFE's revenue (40.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAFE's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Safehold performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAFE has high quality earnings.

Growing Profit Margin: SAFE's current net profit margins (26.8%) are higher than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: SAFE's earnings have grown significantly by 31.9% per year over the past 5 years.

Accelerating Growth: SAFE's earnings growth over the past year (243%) exceeds its 5-year average (31.9% per year).

Earnings vs Industry: SAFE earnings growth over the past year (243%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: SAFE's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


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: SAFE has a high level of physical assets or inventory.

Debt Coverage by Assets: SAFE's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

1.49%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: SAFE's dividend (1.49%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SAFE's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.5%), SAFE's dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Jay Sugarman (56yo)

3.2yrs

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

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: SAFE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

56yo

Average Age

Experienced Board: SAFE's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SAFE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$129,999,98622 Nov 19
iStar Inc.
EntityCompany
Shares3,823,529
Max PriceUS$34.00
BuyUS$30,57308 Nov 19
Jay Sugarman
EntityIndividual
Role
Chief Executive Officer
CEO & Chairman
Shares900
Max PriceUS$33.97
BuyUS$505,87528 Oct 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$34.03
BuyUS$15,71728 Oct 19
iStar Inc.
EntityCompany
Shares452
Max PriceUS$34.77
BuyUS$766,41723 Oct 19
iStar Inc.
EntityCompany
Shares22,400
Max PriceUS$34.32
BuyUS$511,55318 Oct 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$34.19
BuyUS$757,59016 Oct 19
iStar Inc.
EntityCompany
Shares22,098
Max PriceUS$34.43
BuyUS$771,32211 Oct 19
iStar Inc.
EntityCompany
Shares22,361
Max PriceUS$34.71
BuyUS$515,64009 Oct 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$34.43
BuyUS$251,85007 Oct 19
iStar Inc.
EntityCompany
Shares7,500
Max PriceUS$33.58
BuyUS$225,32307 Oct 19
iStar Inc.
EntityCompany
Shares7,500
Max PriceUS$30.04
BuyUS$698,44502 Oct 19
iStar Inc.
EntityCompany
Shares22,500
Max PriceUS$31.67
BuyUS$449,28827 Sep 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$29.98
BuyUS$674,00326 Sep 19
iStar Inc.
EntityCompany
Shares22,500
Max PriceUS$29.98
BuyUS$1,294,42420 Sep 19
iStar Inc.
EntityCompany
Shares43,319
Max PriceUS$29.99
BuyUS$903,31517 Sep 19
iStar Inc.
EntityCompany
Shares30,000
Max PriceUS$30.35
BuyUS$223,73317 Sep 19
iStar Inc.
EntityCompany
Shares7,500
Max PriceUS$29.83
BuyUS$125,86014 Sep 19
Marcos Alvarado
EntityIndividual
Role
President
President & Chief Investment Officer
Shares4,340
Max PriceUS$29.00
BuyUS$2,493,23412 Sep 19
iStar Inc.
EntityCompany
Shares87,450
Max PriceUS$29.18
BuyUS$643,23007 Sep 19
iStar Inc.
EntityCompany
Shares22,500
Max PriceUS$28.96
BuyUS$653,19003 Sep 19
iStar Inc.
EntityCompany
Shares22,500
Max PriceUS$29.16
BuyUS$992,16928 Aug 19
iStar Inc.
EntityCompany
Shares34,500
Max PriceUS$29.09
BuyUS$645,67523 Aug 19
iStar Inc.
EntityCompany
Shares22,500
Max PriceUS$28.88
BuyUS$653,31020 Aug 19
iStar Inc.
EntityCompany
Shares22,500
Max PriceUS$29.08
BuyUS$1,140,90316 Aug 19
iStar Inc.
EntityCompany
Shares40,000
Max PriceUS$28.62
BuyUS$324,43102 Aug 19
iStar Inc.
EntityCompany
Shares9,730
Max PriceUS$33.43
BuyUS$501,26001 Aug 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$33.81
BuyUS$333,46029 Jul 19
iStar Inc.
EntityCompany
Shares10,000
Max PriceUS$33.48
BuyUS$495,70524 Jul 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$33.17
BuyUS$482,30019 Jul 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$33.21
BuyUS$486,15516 Jul 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$32.56
BuyUS$484,66511 Jul 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$32.73
BuyUS$467,78008 Jul 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$31.53
BuyUS$452,07002 Jul 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$30.64
BuyUS$286,35027 Jun 19
iStar Inc.
EntityCompany
Shares10,000
Max PriceUS$29.07
BuyUS$264,08726 Jun 19
iStar Inc.
EntityCompany
Shares9,186
Max PriceUS$28.77
BuyUS$425,49621 Jun 19
iStar Inc.
EntityCompany
Shares14,826
Max PriceUS$28.90
BuyUS$436,69519 Jun 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$29.71
BuyUS$427,70013 Jun 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$29.03
BuyUS$329,94410 Jun 19
iStar Inc.
EntityCompany
Shares11,185
Max PriceUS$30.10
BuyUS$1,047,54005 Jun 19
iStar Inc.
EntityCompany
Shares36,000
Max PriceUS$30.14
BuyUS$419,27503 Jun 19
iStar Inc.
EntityCompany
Shares15,000
Max PriceUS$28.54
BuyUS$268,94228 May 19
iStar Inc.
EntityCompany
Shares9,205
Max PriceUS$29.26
BuyUS$282,98521 May 19
iStar Inc.
EntityCompany
Shares10,000
Max PriceUS$28.34
BuyUS$267,44417 May 19
iStar Inc.
EntityCompany
Shares9,525
Max PriceUS$28.15
BuyUS$250,075,48514 May 19
iStar Inc.
EntityCompany
Shares12,502,800
Max PriceUS$26.96
BuyUS$64,12625 Apr 19
iStar Inc.
EntityCompany
Shares2,600
Max PriceUS$24.66

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 31.3%.


Management Team

  • Jay Sugarman (56yo)

    CEO & Chairman

    • Tenure: 3.2yrs
  • Nina Matis (71yo)

    Vice Chairman

    • Tenure: 1.8yrs
  • Geoff Dugan

    General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Jason Fooks

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Marcos Alvarado (38yo)

    President & Chief Investment Officer

    • Tenure: 1.4yrs
  • Tye Palonen

    Senior Vice President of Ground Lease Investments

    • Tenure: 1.3yrs
  • Elisha Blechner

    Executive VP & Co-Head of Investments

    • Tenure: 0yrs
  • Tim Doherty

    Executive VP & Co-Head of Investments

    • Tenure: 0yrs
  • Douglas Heitner

    Chief Legal Officer

    • Tenure: 0.8yrs

Board Members

  • Jay Sugarman (56yo)

    CEO & Chairman

    • Tenure: 3.2yrs
  • Dean Adler (62yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$195.05k
  • Robin Josephs (59yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$195.05k
  • Jay Nydick (54yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$195.05k
  • Stefan Selig (56yo)

    Lead Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$195.05k

Company Information

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


Key Information

  • Name: Safehold Inc.
  • Ticker: SAFE
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$1.994b
  • Shares outstanding: 47.33m
  • 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 cap ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:52
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.