Safehold sets first quarter dividend at $0.177 per share

NEW YORK - Safehold Inc. (NYSE: SAFE), a real estate investment trust currently trading at $18.57, has declared a quarterly dividend of $0.177 per common share for the first quarter of 2025. This dividend, announced today, corresponds to an annualized payment of $0.708 per share, representing a 3.8% yield. According to InvestingPro analysis, the stock appears undervalued despite maintaining strong financial health metrics. Shareholders on record as of March 31, 2025, will be eligible for the dividend, which is scheduled for distribution on April 15, 2025.

The company, known for pioneering the modern ground lease model, focuses on providing land ownership solutions that aim to enhance value for property owners. With an impressive gross profit margin of 99% and a healthy current ratio of 40, Safehold’s approach has been to offer ground leases as a means to free up capital for owners of various high-quality real estate assets, including multifamily, office, industrial, and hospitality properties. InvestingPro subscribers can access detailed analysis of Safehold’s financial metrics and 6 additional exclusive ProTips.

Since its establishment in 2017, Safehold has positioned itself as an innovator in the real estate sector, striving to deliver consistent income and long-term capital appreciation for its shareholders. The company’s business model involves less risk for property owners by allowing them to retain ownership of their buildings while unlocking the value of the underlying land through the company’s ground lease strategy.

This dividend declaration is part of Safehold’s commitment to providing shareholders with steady and growing income. The announcement is based on a press release statement from Safehold Inc. and reflects the company’s financial distributions to its shareholders for the current quarter.

In other recent news, Safehold Inc. reported a significant unrealized capital appreciation (UCA) of approximately $9.128 billion in its portfolio as of December 31, 2024. This UCA reflects the excess value of the company’s ground lease investments compared to their cost basis, with the Combined Property Value estimated at $15.523 billion against a ground lease cost of $6.395 billion. Additionally, Safehold received a credit rating upgrade from Fitch Ratings, moving from BBB+ to A-, with a stable outlook. Fitch highlighted Safehold’s strategic focus on the ground lease asset class, portfolio diversification, and conservative leverage as key factors for the upgrade.

Furthermore, JMP Securities adjusted its price target for Safehold from $35.00 to $32.00, while maintaining a Market Outperform rating. This revision was influenced by the current volatile interest rate environment and uncertainties related to Safehold’s Capitalization Rate Enhancement Terms (CARET) program. Safehold’s innovative ground lease structuring, including the CARET initiative, aims to optimize capital efficiency. The company’s recent SEC filing also mentioned the Caret Performance Incentive Plan, with additional vesting conditions for executive officers post-merger.

These developments underscore Safehold’s strategic efforts to enhance its financial position and maintain a strong credit profile. The company’s focus on high-quality assets and stable funding sources is expected to benefit shareholders and customers. Safehold’s management continues to navigate the real estate market, aiming for long-term capital appreciation and secure income for its investors.

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