Raymond James resumes Safehold stock coverage with Market Perform

Raymond James resumed covering Safehold Inc. (NYSE: SAFE) with a Market Perform rating, highlighting the potential for increased usage of the company’s ground leases. However, the analyst noted that Safehold’s current return profile is underwhelming due to its 92-year weighted average lease term. The firm believes shares are fairly valued at current levels with a blended multiple of approximately 13 times GAAP EPS, estimated AFFO, and dividend yield, coupled with a 4.4% dividend yield.

Safehold’s stock trades at a P/E ratio of 9.22, while InvestingPro analysis suggests it is undervalued based on its Fair Value assessment. The analyst described the company’s exposure as having a synthetic AAA nature, and emphasized the unrealized capital appreciation, or UCA, created on land over the life of ground leases. Raymond James noted that Safehold’s metrics align with net lease REITs, which it uses as a comparison set.

For further analysis, investors can refer to InvestingPro's comprehensive Pro Research Report on SAFE, along with 10 additional ProTips. Safehold Inc. reported its Q2 2026 earnings, which met Wall Street’s profit forecasts, with earnings per share of $0.42 and revenue of $114.6 million. The stock experienced a decline despite these results.

Citizens maintained its Market Outperform rating for Safehold with a price target of $28.00, but lowered its earnings per share estimates for 2026 and 2027 to $1.60 and $1.70, respectively, due to performance delays.