Safehold (NYSE:SAFE) Announces Earnings Results, Misses Estimates By $0.02 EPS

by · The Markets Daily

Safehold (NYSE:SAFE – Get Free Report) announced its earnings results on Tuesday. The company reported $0.41 earnings per share 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 the consensus estimate of $117.38 million. Safehold had a return on equity of 4.76% and a net margin of 27.70%.

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 Down 2.4%

NYSE SAFE traded down $0.26 during mid-day trading on Wednesday, hitting $10.97. The company’s stock had a trading volume of 279,863 shares, compared to its average volume of 417,306. The company’s 50 day simple moving average is $12.82 and its 200 day simple moving average is $14.68. Safehold has a twelve month low of $10.61 and a twelve month high of $17.45. The company has a current ratio of 34.37, a quick ratio of 34.36 and a debt-to-equity ratio of 1.77. The firm has a market capitalization of $776.61 million, a price-to-earnings ratio of 6.77, a PEG ratio of 3.45 and a beta of 1.82.

Safehold Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were issued a $0.1770 dividend. This represents a $0.71 dividend on an annualized basis and a dividend yield of 6.5%. The ex-dividend date was Wednesday, September 30th. Safehold’s dividend payout ratio (DPR) is currently 43.83%.

Insider Transactions at Safehold

In other Safehold 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 transaction of $138,320.00. Following the completion of the sale, the director directly 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 position. The sale 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.

Analysts Set New Price Targets

A number of analysts have weighed in on SAFE shares. Zacks Research upgraded Safehold from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 21st. Citizens Jmp downgraded Safehold from an “outperform” rating to a “market perform” rating in a research note on Wednesday, October 14th. Mizuho cut their target price on Safehold from $16.00 to $14.00 and set a “neutral” rating on the stock in a research report on Thursday, September 17th. Truist Financial cut their target price on Safehold from $17.00 to $13.00 and set a “hold” rating on the stock in a research report on Monday, September 28th. Finally, Cantor Fitzgerald reaffirmed a “neutral” rating on shares of Safehold in a research note on Tuesday, August 4th. Two research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $14.17.

Check Out Our Latest Stock Report on SAFE

About Safehold

(Get Free Report)

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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