Safehold (NYSE:SAFE) Releases Earnings Results

Safehold (NYSE:SAFE) posted its quarterly earnings data on Tuesday. The company reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.02), FiscalAI reports. The firm had revenue of $118.68 million for the quarter, compared to analysts’ expectations of $117.38 million. Safehold had a net margin of 27.70% and a return on equity of 4.76%.

Here are the key takeaways from Safehold’s conference call:

• Higher interest rates are disrupting transaction activity, causing greater closing uncertainty, repricing and delays across the pipeline. Third-quarter originations were $38 million, although year-to-date volume of approximately $242 million nearly doubled full-year production from 2024 and 2025.
• Safehold continues to see strong customer interest in affordable housing, where management believes ground leases can address capital gaps and support needed development. The company is also pursuing multifamily recapitalizations and developments as owners face maturing debt and higher financing costs.
• Third-quarter revenue was $118.7 million, net income was $28.8 million and EPS was $0.41, flat year over year. Growth from asset fundings and owned hotels was offset by lower Star Holdings management fees, weaker unconsolidated joint-venture earnings and higher general reserves.
• Management highlighted a relatively strong balance sheet, including $1.3 billion of available liquidity, approximately $5 billion of unencumbered assets, investment-grade ratings and no significant debt maturities until 2029. Permanent debt has an approximately 18-year weighted-average maturity at a 4.4% effective cost, which management estimates represents roughly $800 million of embedded value.
• Safehold continued repurchasing shares because management believes the stock trades at a significant discount to NAV and assigns little value to Caret, CPI-linked rent increases and the below-market debt portfolio. The company also expects future CPI look-backs and potential Caret growth to become increasingly meaningful sources of cash flow and value.

Safehold Stock Performance

NYSE:SAFE traded down $0.37 during mid-day trading on Tuesday, reaching $11.18. 562,870 shares of the stock were exchanged, compared to its average volume of 418,096. The company has a 50 day simple moving average of $12.90 and a 200-day simple moving average of $14.69. Safehold has a 1 year low of $10.61 and a 1 year high of $17.45. The stock has a market capitalization of $791.98 million, a P/E ratio of 6.90, a P/E/G ratio of 3.28 and a beta of 1.78. The company has a quick ratio of 34.36, a current ratio of 34.37 and a debt-to-equity ratio of 1.77.

Safehold Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were paid a dividend of $0.1770 per share. This represents a $0.71 dividend on an annualized basis and a yield of 6.3%. The ex-dividend date was Wednesday, September 30th. Safehold’s dividend payout ratio (DPR) is currently 43.83%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on SAFE shares. Citizens Jmp cut Safehold from an “outperform” rating to a “market perform” rating in a report on Wednesday, October 14th. Cantor Fitzgerald reiterated a “neutral” rating on shares of Safehold in a research note on Tuesday, August 4th. JPMorgan Chase & Co. cut Safehold from a “neutral” rating to an “underweight” rating and set a $14.00 price target for the company. in a report on Thursday, September 24th. Zacks Research upgraded shares of Safehold from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 21st. Finally, Weiss Ratings lowered shares of Safehold from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, October 6th. Two analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Safehold has an average rating of “Hold” and a consensus price target of $14.17.

Insider Buying and Selling at Safehold

In other news, Director Robin Josephs sold 9,500 shares of the business’s stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $14.56, for a total value of $138,320.00. Following the transaction, the director owned 89,068 shares of the company’s stock, valued at approximately $1,296,830.08. The trade was a 9.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 3.80% of the company’s stock.

Safehold Company Profile

Safehold Inc (NYSE: SAFE) is a real estate investment trust that owns and manages ground leases for commercial, multifamily, and other income-producing properties. Under a ground lease, Safehold owns the land beneath a building while the property owner leases the land for a long term and retains ownership of the improvements on it.

The company’s business model is designed to provide property owners with access to capital while allowing them to maintain control of their buildings. Safehold’s ground lease investments are generally structured as long-duration leases that can support the development, acquisition, refinancing, or recapitalization of real estate assets.