5 Cheap REITs with Huge Upside

3. Safehold Inc. (NYSE:SAFE)

Number of Hedge Fund Holders: 10

Average Upside Potential Based on Analyst Ratings: 67.90% 

Average Analyst Price Target: $21.00

Safehold Inc. (NYSE:SAFE) is transforming real estate ownership by offering a ground lease capital solution that enables property owners to maximize the value of their land. By utilizing this approach, the company assists owners of high-quality properties in major markets throughout the United States, such as multifamily, office, industrial, hospitality, and mixed-use properties, to generate higher returns with less risk. Safehold is structured as a real estate investment trust. Safehold Inc. (NYSE:SAFE) is one of the best cheap REITs to watch. On March 16, Exane BNP Paribas initiated coverage of Safehold with an Outperform rating.

On March 30, iStar (NYSE:STAR) announced that it will conduct a reverse stock split, which involves combining each outstanding share of its common stock into 0.160 shares. This reverse split of iStar’s common stock will take place just before the iStar and Safehold Inc. (NYSE:SAFE) merger becomes effective.

According to Insider Monkey’s fourth quarter database, 10 hedge funds were long Safehold Inc. (NYSE:SAFE), compared to 11 funds in the prior quarter. John Khoury’s Long Pond Capital held the largest stake in the company, comprising 913,523 shares worth $26 million. 

Aristotle Small Cap Equity Strategy made the following comment about Safehold Inc. (NYSE:SAFE) in its Q4 2022 investor letter:

Safehold Inc. (NYSE:SAFE), is a real estate investment trust (REIT) focused on acquiring, owning, managing and capitalizing ground leases. We inherited shares of Safehold via a special dividend from existing holding iStar, which holds a meaningful stake in Safehold. We maintain our shares ahead of the anticipated business combination between the two entities, which will create the only self‐managed, pure‐play ground lease company in the public markets.”