NYSE:SAFE

Stock Analysis Report

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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

High growth potential with solid 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

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


Market Performance


7 Day Return

3.3%

SAFE

-0.06%

US REITs

2.2%

US Market


1 Year Return

52.9%

SAFE

-7.4%

US REITs

16.2%

US Market

Return vs Industry: SAFE exceeded the US REITs industry which returned -7.9% over the past year.

Return vs Market: SAFE exceeded the US Market which returned 15.9% over the past year.


Shareholder returns

SAFEIndustryMarket
7 Day3.3%-0.06%2.2%
30 Day-11.9%1.9%4.9%
90 Day-1.5%12.0%17.8%
1 Year55.1%52.9%-3.6%-7.4%18.7%16.2%
3 Year186.5%165.2%16.8%3.0%41.1%32.0%
5 Yearn/a44.7%15.0%74.5%55.7%

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?

48.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAFE ($50.17) is trading above our estimate of fair value ($33.64)

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 (48.5x) compared to the US REITs industry average (28.8x).

PE vs Market: SAFE is poor value based on its PE Ratio (48.5x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: SAFE is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: SAFE is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Safehold forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAFE's forecast earnings growth (22.9% per year) is above the savings rate (2.2%).

Earnings vs Market: SAFE's earnings (22.9% per year) are forecast to grow faster than the US market (22.4% per year).

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

Revenue vs Market: SAFE's revenue (21.8% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: SAFE's revenue (21.8% 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 (5.5%).


Next Steps

Past Performance

How has Safehold performed over the past 5 years?

57.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAFE has high quality earnings.

Growing Profit Margin: SAFE's current net profit margins (35.5%) are higher than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: SAFE's earnings have grown significantly by 57.5% per year over the past 5 years.

Accelerating Growth: SAFE's earnings growth over the past year (165.3%) exceeds its 5-year average (57.5% per year).

Earnings vs Industry: SAFE earnings growth over the past year (165.3%) exceeded the REITs industry 3%.


Return on Equity

High ROE: SAFE's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Safehold's financial position?


Financial Position Analysis

Short Term Liabilities: SAFE's short term assets ($1.7B) exceed its short term liabilities ($30.2M).

Long Term Liabilities: SAFE's short term assets ($1.7B) exceed its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: SAFE's debt to equity ratio (121%) is considered high.

Reducing Debt: Insufficient data to determine if SAFE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SAFE's debt is not well covered by operating cash flow (1.2%).

Interest Coverage: SAFE's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAFE's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: SAFE's dividend (1.29%) is low compared to the top 25% of dividend payers in the US market (4.54%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (127.1%), SAFE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAFE's dividends in 3 years are forecast to be well covered by earnings (34.6% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Jay Sugarman (57 yo)

3.83yrs

Tenure

Mr. Jay S. Sugarman has been the Executive 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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jay Sugarman
CEO & Chairman3.83yrsno data0.22%
$ 5.4m
Marcos Alvarado
President & Chief Investment Officer2.08yrsno data0.051%
$ 1.3m
Jeremy Fox-Geen
Chief Financial Officer0.42yrno datano data
Garett Rosenblum
Chief Accounting Officerno datano datano data
Jason Fooks
Senior Vice President of Investor Relationsno datano datano data
Douglas Heitner
Chief Legal Officer1.42yrsno datano data
Tye Palonen
Senior Vice President of Ground Lease Investments1.92yrsno datano data
Tim Doherty
Executive VP & Co-Head of Investmentsno datano datano data
Elisha Blechner
Executive VPno datano datano data
Brett Asnas
Executive VP & Head of Capital Marketsno datano datano data
Geoffrey Dugan
General Counsel & Corporate Secretaryno datano datano data

1.9yrs

Average Tenure

39yo

Average Age

Experienced Management: SAFE's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jay Sugarman
CEO & Chairman3.83yrsno data0.22%
$ 5.4m
Dean Adler
Independent Director3.33yrsUS$271.90kno data
Robin Josephs
Director3.17yrsUS$271.90k0.072%
$ 1.8m
Jay Nydick
Independent Director3.17yrsUS$271.90k0.099%
$ 2.5m
Stefan Selig
Lead Independent Director3.17yrsUS$271.90k0.089%
$ 2.2m

3.2yrs

Average Tenure

57yo

Average Age

Experienced Board: SAFE's board of directors are considered experienced (3.2 years average tenure).


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 65.2%.


Top Shareholders

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$2.501b
  • Shares outstanding: 51.11m
  • 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 Analysis2020/08/04 23:50
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
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.