Insider Activity: Safehold (SAFE)

Major fund holder continues to add to stake.

iStar Inc. continues to add to its stake in Safehold (SAFE). The fund recently picked up 22,361 shares, shelling out $771,000 and increasing its total stake to 27.2 million shares. That’s the fund’s fourth buy month-to-date, which includes a total of more than 52,000 shares then as well.

All told, the fund has been a steep buyer at prices as much as 21 percent higher in the past few months.

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  • Safehold specializes in ground leases to help property owners unlock higher values from their real estate holdings with less risk. The company is structured as a REIT, and iStar is its largest holder. iStar now owns over 67 percent of outstanding Safehold shares.

    Action to take: Safehold’s unique business model makes for an interesting niche space in real estate, and it’s possible that iStar may simply buy up the rest of the outstanding shares at a premium at the pace it’s adding to its stake.

    Shares are a buy up to $35.00, which gives investor a 1.8 percent dividend yield as well. Speculators expecting a buyout event that could send shares spiking higher may want to look at the April 2020 $35 calls, which could offer the best leveraged return and could nearly double if shares were to hit $40 in the next six months.