New York-based Safety, Income and Growth was founded in 2017 with the objective of acquiring, owning, managing, financing and capitalizing on ground net leases. GNLs involves leasing land, typically for a long period of time (ranging from 30 to 99 years), to a tenant for the purpose of building real estate on the property and are most often "triple net" leases, which means the tenant is responsible for costs including: development costs, capital expenditures and all property operating expenses.
SAFE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SAFE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Safehold Inc ranked in the 63th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 113.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Safehold Inc, consider:
Safehold Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Real Estate), Safehold Inc has a reliance on debt greater than just 24% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Safehold Inc? See ACC, RVI, IRM, PGRE, and CLNC.
The only REIT focused exclusively on ground leases is Safehold Inc (SAFE). This article takes a close look at how they should be valued and what that value is. Wall Street analysts have a price target for SAFE that is only 23% above the present price. This article argues that...
Safety, Income and Growth (SAFE) delivered earnings and revenue surprises of -14.29% and -0.65%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?