Ground lease REIT Safehold Q1 revenue beats estimates

Overview

• US ground lease REIT's Q1 revenue beat analyst expectations

• Q1 EPS was $0.40; net income attributable to shareholders reached $28.9 mln

• Company closed $68 mln in new originations, including 3 ground leases and one leasehold loan

Outlook

• Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

• NEW ORIGINATIONS - Closed $68 mln of new originations, including 3 ground leases and one leasehold loan in Q1

• PIPELINE DEVELOPMENT - Management said it is encouraged by how the pipeline is developing, with non-binding LOIs totaling ~$255 mln

• UCA GROWTH - Estimated Unrealized Capital Appreciation increased to $9.5 bln in Q1

Company press release: ID:nPn82dQLJa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the diversified reits peer group is "buy"

• Wall Street's median 12-month price target for Safehold Inc is $19.00, about 20.2% above its April 29 closing price of $15.81

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

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