Safehold (NYSE:SAFE) Posts Earnings Results, Misses Expectations By $0.02 EPS

Safehold (NYSE:SAFE) issued its quarterly earnings results on Tuesday. The company reported $0.41 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.02), FiscalAI reports. The company had revenue of $118.68 million during 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 Performance

Shares of NYSE SAFE traded down $0.37 during trading on Tuesday, reaching $11.18. The stock had a trading volume of 562,870 shares, compared to its average volume of 418,096. The firm’s 50 day moving average price is $12.90 and its two-hundred day moving average price is $14.69. Safehold has a one year low of $10.61 and a one year high of $17.45. The stock has a market cap of $791.98 million, a PE ratio of 6.90, a P/E/G ratio of 3.28 and a beta of 1.78. The company has a debt-to-equity ratio of 1.77, a quick ratio of 34.36 and a current ratio of 34.37.

Safehold Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders 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 6.3%. The ex-dividend date was Wednesday, September 30th. Safehold’s payout ratio is 43.83%.

Analyst Ratings Changes

A number of research firms have commented on SAFE. Weiss Ratings downgraded shares of Safehold from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, October 6th. JPMorgan Chase & Co. downgraded shares of Safehold from a “neutral” rating to an “underweight” rating and set a $14.00 target price for the company. in a research report on Thursday, September 24th. Raymond James Financial initiated coverage on shares of Safehold in a research note on Wednesday, August 19th. They issued a “market perform” rating on the stock. Zacks Research raised shares of Safehold from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 21st. Finally, Citizens Jmp cut shares of Safehold from an “outperform” rating to a “market perform” rating in a research report on Wednesday, October 14th. 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’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $14.17.

Insider Buying and Selling

In other Safehold news, Director Robin Josephs sold 9,500 shares of the business’s stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $14.56, for a total transaction of $138,320.00. Following the completion of the sale, the director owned 89,068 shares in the company, valued at $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 Securities & Exchange Commission, which is available at this link. 3.80% of the stock is currently 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.