Morgan Stanley Turns Bearish on Safehold Inc. (SAFE) Citing Litigation and Fee Income Risks

TheFly reported connected January 22 that Morgan Stanley downgraded SAFE from Equal Weight to Underweight and reduced its terms people to $14 from $16. The steadfast saw 2 large pressures: a precocious dividend payout ratio and dilatory origination activity. The much cautious attack was besides influenced by continuing litigation with a tenant, obstacles pertaining to Star Holdings interest income, and constricted visibility into unlocking worth from Caret.

Separately, earlier this month, connected January 12, Mizuho raised its terms people for Safehold Inc. (NYSE:SAFE) to $15 from $14 portion maintaining a Neutral rating. The accommodation came arsenic portion of the firm’s 2026 outlook for the REIT sector. Mizuho noted a mixed macroeconomic environment, with valuations appearing costly comparative to fixed-income alternatives, and cautioned that a slowing system could airs risks successful fiscal 2026 contempt improving supply-and-demand fundamentals.

Safehold Inc. (NYSE:SAFE). is simply a U.S. existent property concern spot (REIT) that pioneered modern crushed leases, providing long-term, cost-efficient superior to unlock onshore worth for commercialized spot owners. The institution helps owners and developers heighten returns with little hazard crossed multifamily, office, industrial, hospitality, and mixed-use properties.

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