Safehold (NYSE:SAFE) Releases Quarterly Earnings Results, Misses Estimates By $0.07 EPS

Key Points

• Safehold reported Q1 EPS of $0.40, missing consensus by $0.07, but revenue of $110.85 million topped estimates and the company closed the quarter with a $7.1 billion portfolio, $9.5 billion estimated unrealized capital appreciation and roughly $1.1 billion of liquidity.
• Originations and pipeline remain active — Q1 closed four transactions totaling $68 million with management holding about $255 million of non‑binding LOIs, while the firm is increasing multifamily exposure (now 104 multifamily ground leases) and expanding LIHTC activity beyond California.
• Management initiated buybacks (about $3.4 million) and pays a quarterly dividend of $0.177 (annualized yield ~4.4%), but near‑term legal and operational risks — including two Park Hotels converting to fee simple that cut Q1 net income by ~$3.5 million and a tenant tax‑payment issue at the Fiftieth Street asset — could pressure results.

Safehold (NYSE:SAFE - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.07), FiscalAI reports. Safehold had a net margin of 29.69% and a return on equity of 4.92%. The business had revenue of $110.85 million during the quarter, compared to analyst estimates of $96.26 million.

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

• Safehold ended Q1 with a total portfolio of $7.1 billion and estimated unrealized capital appreciation (UCA) of $9.5 billion (up >$200 million QoQ), and reported roughly $1.1 billion of available liquidity.
• Originations and pipeline remain active — Q1 closed four transactions totaling $68 million with underwriting metrics (GLTV ~40%, rent coverage 2.9x, economic yield 7.2%), and management has ~$255 million of non‑binding LOIs they expect to close over the next 1–2 quarters.
• Management is leaning into multifamily (now 104 multifamily ground leases) and is expanding affordable LIHTC activity beyond California with its first non‑California LIHTC closing in Austin, Texas.
• Management initiated a buyback program late in the quarter (repurchased about $3.4 million at an average price of $14.39), saying the stock is undervalued and buybacks can be pursued alongside continued originations without materially moving leverage.
• Near‑term legal and operational uncertainty — two Park Hotels converted from ground lease to fee simple (reducing Q1 net income by ~$3.5 million) with trial set for early next year, and the tenant at the Fiftieth Street asset has repeatedly failed to pay property taxes, which could force Safehold to exercise lease rights if not resolved.

Safehold Stock Up 1.3%

NYSE:SAFE traded up $0.21 during trading hours on Thursday, reaching $16.02. 359,616 shares of the stock were exchanged, compared to its average volume of 364,989. Safehold has a twelve month low of $12.76 and a twelve month high of $17.16. The company has a debt-to-equity ratio of 1.88, a current ratio of 34.97 and a quick ratio of 34.97. The firm has a 50 day moving average of $14.99 and a 200 day moving average of $14.54. The stock has a market cap of $1.15 billion, a PE ratio of 10.01, a PEG ratio of 1.66 and a beta of 1.84.

Safehold Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were given a dividend of $0.177 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $0.71 dividend on an annualized basis and a yield of 4.4%. Safehold's dividend payout ratio is 44.38%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Morgan Stanley lowered Safehold from an "equal weight" rating to an "underweight" rating and decreased their price objective for the company from $16.00 to $14.00 in a research report on Thursday, January 22nd. Wall Street Zen raised Safehold from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. Zacks Research downgraded Safehold from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 25th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Safehold in a research report on Tuesday, April 21st. Finally, Royal Bank Of Canada upped their price target on Safehold from $17.00 to $18.00 and gave the stock an "outperform" rating in a research report on Friday, February 20th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $19.25.

Institutional Investors Weigh In On Safehold

A number of institutional investors and hedge funds have recently made changes to their positions in SAFE. Long Pond Capital LP bought a new stake in shares of Safehold during the 4th quarter worth approximately $12,936,000. Michelson Medical Research Foundation Inc. bought a new stake in shares of Safehold during the 2nd quarter worth approximately $4,629,000. Deutsche Bank AG raised its stake in shares of Safehold by 339.9% during the 4th quarter. Deutsche Bank AG now owns 370,042 shares of the company's stock worth $5,066,000 after purchasing an additional 285,920 shares in the last quarter. Millennium Management LLC raised its stake in shares of Safehold by 883.8% during the 3rd quarter. Millennium Management LLC now owns 237,373 shares of the company's stock worth $3,677,000 after purchasing an additional 213,244 shares in the last quarter. Finally, Tudor Investment Corp ET AL raised its stake in shares of Safehold by 936.9% during the 4th quarter. Tudor Investment Corp ET AL now owns 223,678 shares of the company's stock worth $3,062,000 after purchasing an additional 202,106 shares in the last quarter. Institutional investors own 70.38% of the company's stock.

About Safehold

Safehold Inc is a real estate investment trust that seeks to redefine land ownership for commercial property owners. The company acquires perpetual ground leases from landowners and structures long-term leaseback arrangements, enabling building owners to unlock the value of underlying land without relinquishing operational control of their properties. By separating land ownership from building ownership, Safehold offers an alternative to traditional mortgage financing and land sale–leaseback transactions.

Safehold’s portfolio spans multiple commercial real estate sectors, including office, multifamily, industrial and retail, with a focus on high-quality properties in major U.S.

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