Safehold stock maintains market outperform rating at Citizens JMP

Published 09/06/2025, 10:20
Safehold stock maintains market outperform rating at Citizens JMP

On Monday, Citizens JMP analysts reaffirmed their Market Outperform rating for Safehold stock (NYSE: NYSE:SAFE) with a price target of $32, representing a potential 108% upside from the current price of $15.36. The stock, which has seen a 26% decline over the past six months, is currently trading at an attractive P/B ratio of 0.47. The decision comes after discussions with Safehold’s management at NAREIT’s REITWeek conference, where various topics were addressed, including the company’s diverse investment alternatives.

Safehold is noted as the only ground lease-focused REIT in public markets. According to InvestingPro data, the company maintains strong financial health with a current ratio of 40.73, indicating excellent liquidity. Analysts at Citizens JMP believe the company is well-positioned to benefit from an improving macroeconomic environment and decreased volatility in financing markets. Safehold’s unique position and extensive network of relationships have contributed to a consistent flow of organic deals, resulting in a diversified ground lease portfolio of approximately $7 billion since its IPO in mid-2017.

The management’s execution of a diversified investment strategy, which includes recapitalization, developments, and traditional acquisitions, is seen as vital for the company’s future growth. This strategy is essential in navigating the current uncertain and challenging market conditions. For deeper insights into Safehold’s investment potential and comprehensive analysis, check out the detailed Pro Research Report available on InvestingPro.

Citizens JMP analysts emphasize the durability of Safehold’s ground lease cash flows and its strong liquidity position, which supports external growth. With an impressive gross profit margin of 98.9% and a P/E ratio of 10.53, the company demonstrates strong operational efficiency. They also highlight the company’s unrealized capital appreciation pool of around $9 billion as a significant factor in maintaining their positive investment outlook.

In other recent news, Safehold Inc. reported robust financial results for the first quarter of 2025, with earnings per share (EPS) of $0.44, surpassing the forecasted $0.42. The company’s revenue also exceeded expectations, reaching $97.7 million against the anticipated $94.83 million. These results were well-received, reflecting the company’s strategic focus and robust pipeline. Meanwhile, RBC Capital Markets revised its price target for Safehold shares, lowering it from $21.00 to $20.00, but maintained an "Outperform" rating, highlighting optimism for the company’s long-term prospects in the ground lease market.

Additionally, Safehold’s shareholders approved key proposals during the recent annual meeting, including the election of directors and ratification of Deloitte & Touche LLP as the independent auditor. The approval of executive compensation was also secured, demonstrating shareholder confidence in the company’s leadership. The meeting outcomes reflect Safehold’s commitment to corporate governance and strategic oversight.

These developments come amidst a backdrop of market volatility, with Safehold exploring joint venture partnerships and capital recycling strategies to further strengthen its portfolio. The company’s focus on multifamily assets and a strong pipeline of ground leases and loans positions it well for future growth. Investors and analysts will be closely monitoring Safehold’s navigation of the evolving commercial real estate landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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