Citizens JMP reaffirms Safehold stock rating on portfolio strength

Published 26/06/2025, 09:58
Citizens JMP reaffirms Safehold stock rating on portfolio strength

Investing.com - Citizens JMP analyst Mitch Germain reiterated a Market Outperform rating and $32.00 price target on Safehold (NYSE:SAFE), representing over 100% upside from the current price of $15.13, following virtual investor meetings with the company’s management team. According to InvestingPro data, the stock trades at attractive multiples with a P/E ratio of 10.5x and P/B of 0.46x.

The meetings included Safehold Chairman and Chief Executive Officer Jay Sugarman, Chief Financial Officer Brett Asnas, and Senior Vice President, Head of Capital Markets Pearse Hoffmann, during which management highlighted the company’s highly scalable and diversified portfolio of high credit quality investments. The company maintains strong financial health with a current ratio of 40.7x, indicating robust liquidity management.

Safehold has grown its portfolio from approximately $300 million at its 2017 IPO to $6.8 billion across roughly 150 ground leases as of the first quarter of 2025, with investments diversified across sectors and focused on the top 30 Metropolitan Statistical Areas.

Citizens JMP noted that Safehold offers a durable income stream with recurring escalators of 2% per annum and inflation lookbacks every 10 years, plus capital appreciation potential for improvements on the land that revert to Safehold at the conclusion of ground leases.

The firm believes Safehold’s share price has been "overly penalized from macro issues (higher interest rates)" despite these strengths and Safehold’s unique position as the sole public ground-lease focused Real Estate Investment Trust.

In other recent news, Safehold Inc. reported first-quarter 2025 earnings that surpassed expectations, with earnings per share (EPS) of $0.44 and revenue of $97.7 million, both exceeding analysts’ forecasts. This performance reflects the company’s strategic focus on multifamily assets and a robust pipeline. During the same period, Safehold declared a quarterly dividend of $0.177 per share for the second quarter of 2025, with an annualized rate of $0.708 per share. Additionally, Safehold’s stock continues to receive positive evaluations from analysts; Citizens JMP reaffirmed their Market Outperform rating with a price target of $32, citing the company’s strong position in the ground lease market. Meanwhile, RBC Capital Markets adjusted their price target for Safehold to $20, down from $21, but maintained an Outperform recommendation, emphasizing the company’s long-term prospects. At its annual shareholder meeting, Safehold announced the election of directors and ratified Deloitte & Touche LLP as its independent auditor. These developments are part of Safehold’s ongoing efforts to maintain strong governance and strategic growth.

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