Exploring Safehold Inc. (SAFE) Investor Profile: Who’s Buying and Why?

You're looking at Safehold Inc. (SAFE) and wondering who is actually buying into the modern ground lease (GL) model, especially with the stock trading near $13.38 but analysts pegging its fair value closer to $20.64. The answer is clear: the big money is already there, with institutional investors holding a commanding 70.38% of the company's stock as of November 2025. This isn't a retail-driven fad; it's a structural play by giants like Blackrock Inc., which owns over 9.4 million shares valued at $127.04 million, and Vanguard Group Inc., holding over 7.5 million shares. Their conviction rests on the predictable, long-term cash flows from a portfolio that hit a $7.0 billion gross book value in Q3 2025, plus the massive embedded value of the land itself-the Unrealized Capital Appreciation (UCA)-which stands at an estimated $9.1 billion. So, what are these seasoned funds seeing that the broader market is missing, and how does Q3's $0.41 EPS and a 5.3% dividend yield fit into their long-term, inflation-protected strategy?

Who Invests in Safehold Inc. (SAFE) and Why?

If you're looking at Safehold Inc. (SAFE), you need to know who else is sitting at the table. The short answer is: this is an institutional-grade stock, with a significant chunk held by the company's own insiders. The investor profile is not dominated by the everyday retail trader, but by large funds and institutions looking for predictable, long-duration cash flows that act as a hedge against inflation. This is a very different setup than your typical growth stock.

Key Investor Types: The Institutional Anchor

The ownership structure of Safehold Inc. is heavily skewed toward professional money managers. As of late 2025, institutional investors hold roughly 70.4% of the outstanding shares, making them the dominant force in the stock's trading volume and sentiment. Retail investors, the 'you' and 'me' of the market, account for only about 1.03%. This means the stock's movement is defintely driven by the big funds, not individual speculation.

The remaining significant portion, around 32.26%, is held by company insiders, including executives and affiliates like Holdings Star. This high insider ownership is a double-edged sword: it aligns management's interests with long-term shareholder value, but it also reduces the public float, which can sometimes amplify price volatility.

Here is a snapshot of the ownership breakdown and major institutional players as of the third quarter of 2025:

Core Investment Motivations: Income and Long-Term Value

Investors are drawn to Safehold Inc. for two primary reasons: the immediate, stable income from rent and the massive, long-term capital appreciation embedded in the ground lease structure. The company's unique ground lease model-where they own the land and lease it back to property developers-provides a bond-like stream of income that is contractually structured to increase over time, often tied to inflation.

The appeal boils down to these core motivations:

• Predictable Income: The annualized dividend is currently $0.71 per share, providing a yield of approximately 5.3%, which is attractive in a volatile market.
• Massive Reversionary Value: The estimated Unrealized Capital Appreciation (UCA) in the portfolio, which is the value of the buildings and improvements that revert to Safehold Inc. at the end of the long-term leases, reached an estimated $9.1 billion as of September 30, 2025. This is the ultimate long-term growth driver.
• Growth in Earnings: Analysts project Safehold Inc. will post earnings per share (EPS) of about $1.58 for the 2025 fiscal year, showing steady profitability.

Here's the quick math on the UCA: that $9.1 billion is a potential future value that is not fully reflected in the current market capitalization of about $960 million, which is what gets value investors interested.

Strategies in Play: Value and Duration Matching

The dominant investment strategies for Safehold Inc. are long-term holding and value investing, driven by the nature of the ground lease asset. You don't buy this stock for a quick flip. The long-term nature of the ground leases (some with terms up to 99 years) means institutional investors, especially pension funds and insurance companies, use Safehold Inc. to match long-duration liabilities. This is called duration matching, and it's a bedrock of conservative portfolio management.

For hedge funds and active managers, the strategy is often pure value investing. The stock's price-to-earnings (P/E) ratio of 9.36 is sharply lower than the peer average of 20.2x for US Specialized REITs, suggesting it may be undervalued. This is why you see the narrative that the stock is undervalued by nearly 30%, with a fair value estimated around $20.64 compared to its recent trading price near $14.47.

What this estimate hides is the market's ongoing concern about rising interest rates and the complexity of the Caret (Capital Appreciation Rights) structure, which is a key part of the long-term value proposition. Still, the long-term holding strategy is clearly favored. If you want to understand the mechanics of the ground lease model and how that UCA is generated, you can read more here: Safehold Inc. (SAFE): History, Ownership, Mission, How It Works & Makes Money.

Institutional Ownership and Major Shareholders of Safehold Inc. (SAFE)

You need to know who is driving the bus at Safehold Inc. (SAFE), and the answer is clear: institutional investors hold the vast majority of the shares. This high concentration means their investment decisions defintely shape the stock's stability and the company's long-term strategy, particularly around its innovative ground lease model.

As of late 2025, institutional investors own roughly 70.4% of Safehold Inc.'s common stock. That's a huge chunk of the company's market capitalization, which sits near $960.10 million. This level of ownership is typical for a specialized Real Estate Investment Trust (REIT) focused on long-duration assets, but it also signals that the stock's trading volume and price movements are largely controlled by a small number of massive players.

Top Institutional Investors and Their Stakes

The top shareholders in Safehold Inc. are the usual suspects-the world's largest asset managers-but you'll also see a significant stake from a related entity, Star Holdings. These firms are buying into the core thesis of the ground lease business: a protected, long-term stream of income.

Here is a snapshot of the largest institutional holders, based on the most recent 2025 filings, showing their commitment to the company:

Here's the quick math: the top five institutional holders alone control over 56% of the company's outstanding shares. That's concentration. The fact that firms like BlackRock and Vanguard are index and passive fund giants means a large portion of their holding is non-discretionary, but their sheer size still gives them enormous voting power.

Recent Shifts in Institutional Ownership

The trading activity in 2025 shows a mixed, but generally active, picture. While some major players have been trimming their positions, a number of smaller and mid-sized funds have been aggressively accumulating shares, indicating a strong belief in the long-term value proposition.

The overall institutional share count (long positions) decreased by about 2.14% in the most recent quarter. Still, the net activity among specific funds has been notable:

• JPMorgan Chase & Co. increased its stake by 24.7%, adding substantial shares.
• Russell Investments Group Ltd. made a massive increase, boosting its holdings by 5,437.1%, though from a smaller base.
• On the selling side, UBS Group AG reduced its position by 23.1%, while BNP Paribas Financial Markets cut its stake by 37.7%.

This tells me the market is bifurcated: some investors are taking profits or reducing exposure to real estate, but others are using the price dips to buy into the company's unique value proposition, especially with the stock trading near its 52-week low of $12.83.

Impact of Institutional Investors on Strategy

With over seven out of ten shares held by institutions, these investors are not passive bystanders; they are the primary stakeholders influencing Safehold Inc.'s strategic direction. Their focus is on the long-term, predictable cash flows generated by the ground leases, which is a core tenet of the company's Mission Statement, Vision, & Core Values of Safehold Inc. (SAFE).

The primary impact is on governance and capital allocation. Large holders demand clarity on the Unclaimed Capital Appreciation (UCA), which is the estimated value of the land's reversionary interest at the end of the long-term ground leases. As of September 30, 2025, the estimated UCA in their owned residual portfolio was a staggering $9,069 million. Institutional investors ensure management stays focused on maximizing this long-term value, which is the ultimate payoff for the ground lease structure.

They also provide a crucial floor for the stock price. Their sheer buying and holding power limits volatility, which is why analysts generally have a consensus Hold rating with an average 12-month price target of about $19.56, despite current market fluctuations. The investment community is betting on the long game, and the institutions are the ones holding the line.

Actionable Insight: Track the 13F filings of the top five holders. Any significant, non-index-driven change in their position-a 10%+ move-should trigger a deeper dive into your own thesis on the stock.

Key Investors and Their Impact on Safehold Inc. (SAFE)

You're looking at Safehold Inc. (SAFE) and trying to figure out who's really driving the bus, and honestly, the answer is a mix of massive institutional money and a powerful insider core. The direct takeaway is that while nearly two-thirds of the stock is held by institutions, the most significant influence on strategy comes from the company's founding and management group.

As of late 2025, the ownership structure is heavily skewed toward professional money managers and company insiders. Institutional investors own approximately 66.71% of the company, with insiders holding a substantial 32.26%. That's a huge block of stock that doesn't trade much, so any shift in the remaining float (shares available to the public) can have an outsized effect on the stock price. The market capitalization sits around $960 million, making it a mid-cap REIT where large block trades are defintely noticeable.

The Institutional Giants and Their Stakes

When you look at the top institutional holders, you see the usual suspects-the passive index funds and the active managers who want a piece of the ground lease (a long-term lease of land only) innovation Safehold Inc. pioneered. These funds are primarily buying for exposure to the unique asset class, seeking safe, growing income, which is the core promise of the ground lease model.

The three largest institutional holders alone control a significant portion of the company's shares. Here's the quick math on the top three, based on 2025 data:

• Blackrock Inc.: Holds over 9.47 million shares, valued at about $127.04 million.
• Vanguard Group Inc.: Owns over 7.59 million shares, valued at roughly $101.90 million.
• T Rowe Price Investment Management Inc.: Holds over 4.22 million shares, worth about $56.67 million.

These massive holdings, especially from passive giants like Blackrock and Vanguard, mean there's a strong, stable base of ownership. They aren't going anywhere, but they also aren't typically activist. Their influence is mostly felt through proxy voting on governance issues, not daily operational decisions.

Insider Control and Strategic Influence

The real power center stems from the insider ownership. The largest single shareholder is an insider entity, Holdings Star, which owns over 13.52 million shares, representing 18.85% of the company, valued at approximately $181.34 million. Plus, Jay Sugarman, the Chairman and Chief Executive Officer, is also a significant insider owner.

This structure is a direct result of the 2023 merger where iStar Inc., the company's original manager and largest shareholder, merged into Safehold Inc. and changed its name to Safehold Inc. The legacy of iStar's real estate expertise and its management team remains the driving force. This high insider ownership ensures management has a long-term focus, but it also means outside investors have less leverage to force strategic changes. That's the trade-off you accept when investing in a company with a controlling shareholder.

If you want to dive deeper into the fundamentals that underpin this strategy, you can check out Breaking Down Safehold Inc. (SAFE) Financial Health: Key Insights for Investors.

Recent Investor Moves and Market Reaction

The recent trading activity shows that smaller, active funds are still bullish on the growth story, even as the stock trades well below its 52-week high of $21.90.

For example, Hantz Financial Services Inc. boosted its stake by a staggering 928.2% in the second quarter of 2025, and Russell Investments Group Ltd. lifted its holdings by 115.0% in the same period. These moves suggest conviction in Safehold Inc.'s ability to execute its ground lease strategy despite a challenging interest rate environment.

However, the market's reaction to positive news shows the collective caution. Even after Safehold Inc. reported strong Q3 2025 results-revenue of $96.2 million and GAAP earnings per share of $0.41-the stock still dipped slightly in after-hours trading. That's a clear sign that while the fundamentals are solid, with the portfolio reaching a gross book value of $7.0 billion, investors are still cautious about the ground lease business model's sensitivity to interest rate fluctuations.

Here's a quick look at the recent institutional buying activity:

What this estimate hides is the fact that these smaller, percentage-wise huge boosts are on a relatively small share count, but they signal positive sentiment from a diverse set of active managers. To be fair, the consensus analyst recommendation is a 'Hold,' with an average 12-month price target of about $19.56, which reflects the mixed outlook.

Your next step is to monitor the Q4 2025 filings to see if this smaller-scale institutional buying continued, especially as the company closed an additional $34 million in ground lease originations in Q4 2025 to date.

Market Impact and Investor Sentiment

You're looking at Safehold Inc. (SAFE) and wondering who's buying and why the stock price seems stuck, even with good news. The direct takeaway is this: institutional investors hold a dominant position, but their collective sentiment is best described as cautiously neutral, leading to a 'Hold' consensus from analysts. This mixed view is why the market is defintely weighing long-term potential against near-term economic risks.

Safehold's investor base is heavily skewed toward institutional money, which owns about 66.71% to 73.89% of the company's shares. This is a typical profile for a specialized real estate investment trust (REIT). The largest individual shareholder, Holdings Star, holds a substantial stake of 13.52 million shares, valued at approximately $181.34 million as of 2025 data. That kind of concentration signals a strong conviction in the unique ground lease business model, but it also means the stock can be sensitive to large block trades.

• Institutional ownership is high, boosting stability.
• Insider ownership is also significant, around 22.42%.
• Major holders include Vanguard Group Inc. and State Street Corp.

Recent Market Reactions and Investor Caution

The stock market's response to Safehold's 2025 performance has been a study in cognitive dissonance. For example, in Q3 2025, the company reported strong financial results: revenue hit $96.2 million, a 6% year-over-year (YoY) increase, and GAAP earnings per share (EPS) jumped 52% to $0.41, beating analyst expectations. But, the stock still dipped slightly by 0.62% in after-hours trading. Why? Investors are still cautious.

The stock's volatility shows this tension. As of early November 2025, the share price was down about 22.6% year-to-date, trading well below its 52-week high of $21.90. This decline, despite portfolio growth, suggests the market is pricing in macroeconomic headwinds, specifically higher interest rates and general real estate market uncertainty. To be fair, the market is struggling to properly value the massive estimated unrealized capital appreciation (UCA) of $9.1 billion on the balance sheet, which is a key part of Safehold's long-term value proposition. The company's focus on long-term, inflation-protected cash flows, which you can read more about in their Mission Statement, Vision, & Core Values of Safehold Inc. (SAFE), is a long-horizon play that the short-term market often struggles with.

Analyst Perspectives: The 'Hold' Consensus

If you look at the analyst community, the prevailing sentiment is a collective 'Hold.' Out of ten firms covering the stock in November 2025, seven recommend a Hold and only three suggest a Buy. Here's the quick math: the average 12-month price target is around $19.56. This target is a meaningful upside from the current trading price, but it's still a downgrade from prior estimates, showing a clear tempering of expectations.

What this estimate hides is the split view on valuation. Some analysts see the stock as significantly undervalued, with a fair value estimate around $20.64, implying a potential upside of nearly 30%. Others are more conservative, citing the high debt-to-equity ratio of 1.85 and the low return on equity (ROE) of 4.70% as of the last quarter. For the full 2025 fiscal year, analysts project a core EPS of approximately $1.58, which is the number to watch to see if the company is executing on its growth plan.

The key for Safehold is the portfolio itself. As of Q3 2025, the total portfolio value reached an impressive $7.0 billion. The analysts who are more bullish, like those at JMP Securities, focus on this growing asset base and the company's strategic push into resilient sectors like affordable housing. The less bullish analysts, however, are simply waiting for a clearer path through the current high-rate environment before upgrading their ratings.

Next step: Track the Q4 2025 earnings call for any changes in the estimated unrealized capital appreciation and new ground lease originations. That will be the real test of their growth story.