Fintel reports that on August 23, 2023, Goldman Sachs initiated coverage of Safehold (NYSE:SAFE) with a Buy recommendation.

Analyst Price Forecast Suggests 85.59% Upside

As of August 2, 2023, the average one-year price target for Safehold is 38.47. The forecasts range from a low of 31.31 to a high of $48.30. The average price target represents an increase of 85.59% from its latest reported closing price of 20.73.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Safehold is 335MM, an increase of 3.68%. The projected annual non-GAAP EPS is 1.64.

Safehold Declares $0.18 Dividend

On June 15, 2023 the company declared a regular quarterly dividend of $0.18 per share ($0.71 annualized). Shareholders of record as of June 30, 2023 received the payment on July 14, 2023. Previously, the company paid $0.18 per share.

At the current share price of $20.73 / share, the stock’s dividend yield is 3.42%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.79%, the lowest has been 0.72%, and the highest has been 3.67%. The standard deviation of yields is 0.84 (n=236).

The current dividend yield is 1.93 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.39. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.09%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 401 funds or institutions reporting positions in Safehold. This is a decrease of 1 owner(s) or 0.25% in the last quarter. Average portfolio weight of all funds dedicated to SAFE is 0.18%, a decrease of 13.00%. Total shares owned by institutions decreased in the last three months by 1.92% to 43,296K shares. The put/call ratio of SAFE is 0.41, indicating a bullish outlook.

What are Other Shareholders Doing?

Msd Capital L P holds 5,205K shares representing 8.14% ownership of the company. No change in the last quarter.

Long Pond Capital holds 4,135K shares representing 6.47% ownership of the company. In it’s prior filing, the firm reported owning 3,259K shares, representing an increase of 21.19%. The firm increased its portfolio allocation in SAFE by 12.60% over the last quarter.

NewEdge Wealth holds 2,792K shares representing 4.37% ownership of the company. In it’s prior filing, the firm reported owning 2,814K shares, representing a decrease of 0.78%. The firm decreased its portfolio allocation in SAFE by 29.44% over the last quarter.

IJR – iShares Core S&P Small-Cap ETF holds 2,783K shares representing 4.35% ownership of the company. In it’s prior filing, the firm reported owning 1,802K shares, representing an increase of 35.26%. The firm increased its portfolio allocation in SAFE by 54.01% over the last quarter.

T. Rowe Price Investment Management holds 2,518K shares representing 3.94% ownership of the company. In it’s prior filing, the firm reported owning 2,326K shares, representing an increase of 7.64%. The firm decreased its portfolio allocation in SAFE by 16.88% over the last quarter.

Safehold Background Information
(This description is provided by the company.)

Safehold Inc. is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT) and is managed by its largest shareholder, iStar Inc., seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.

This article originally appeared on Fintel

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