Safehold (NYSE:SAFE) Announces Quarterly Earnings Results

Key Points

• Safehold reported quarterly EPS of $0.41, missing the $0.43 consensus estimate, while revenue of $118.68 million exceeded forecasts of $117.38 million.
• Management said higher interest rates are delaying and disrupting real estate transactions; third-quarter originations were $38 million, though year-to-date originations of about $242 million nearly doubled full-year production in 2024 and 2025.
• Safehold cited $1.3 billion in available liquidity and no significant debt maturities until 2029, while continuing share repurchases based on management’s view that the stock trades below its net asset value.

Safehold (NYSE:SAFE - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.02), FiscalAI reports. The firm had revenue of $118.68 million during the quarter, compared to analyst estimates 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 Price Performance

Safehold stock traded down $0.37 during trading hours on Tuesday, hitting $11.18. The stock had a trading volume of 562,870 shares, compared to its average volume of 418,096. The company has a debt-to-equity ratio of 1.77, a current ratio of 34.37 and a quick ratio of 34.36. The stock has a market capitalization of $791.98 million, a price-to-earnings ratio of 6.90, a PEG ratio of 3.28 and a beta of 1.78. Safehold has a 1-year low of $10.61 and a 1-year high of $17.45. The stock's fifty day moving average is $12.90 and its two-hundred day moving average is $14.69.

Safehold Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were given 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 payout ratio is presently 43.83%.

Analysts Set New Price Targets

Several analysts have recently weighed in on SAFE shares. Truist Financial lowered their target price on shares of Safehold from $17.00 to $13.00 and set a "hold" rating on the stock in a report on Monday, September 28th. Citizens Jmp cut shares of Safehold from an "outperform" rating to a "market perform" rating in a report on Wednesday, October 14th. Mizuho cut their price target on shares of Safehold from $16.00 to $14.00 and set a "neutral" rating for the company in a report on Thursday, September 17th. Cantor Fitzgerald restated a "neutral" rating on shares of Safehold in a research report on Tuesday, August 4th. Finally, UBS Group lowered Safehold to a "market perform" rating in a report on Wednesday, October 14th. Two equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $14.17.

Insider Activity at Safehold

In other Safehold news, Director Robin Josephs sold 9,500 shares of the firm's stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $14.56, for a total transaction of $138,320.00. Following the completion of the transaction, the director owned 89,068 shares of the company's stock, valued at approximately $1,296,830.08. This trade represents a 9.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 3.80% of the stock is owned by corporate insiders.

About Safehold

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.

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