Safety Income and Growth Inc SAFE

Safety Income and Growth Inc SAFE

Valueline Timeliness = 1

Investor's Business Daily Composite Score = 96

April 15, 2019 Price = $23.08

I started with a list of stocks with a 1 in either timeliness or performance from valueline and cross referenced that with a list of stocks that had at least a 94 composite number from investors business daily.   I then ran a quick SSG from better investing.  I am searching for stocks that are in the buy range.

Safety Income and Growth Inc

SAFE

The stock is in the buy range, but there are only a few years of historical numbers to work with.  I prefer at least 5 and love a good 10 years of historical sales and earnings to evaluate.

Recent history of insider transactions has all buys, so the managers of this company are optimistic.  

• 2018
 - Q4
• Quarterly Earnings Presentation
• This is a nice summary of the company put together to show during their last quarter earnings call.  It's a sales piece, but does a nice job of describing what the company does and has in the works.
• 
  

Safehold Enters Greater Philadelphia Market

NEW YORK --(BUSINESS WIRE)--Mar. 4, 2019-- Safehold Inc. (NYSE: SAFE) today announced its expansion into the Greater Philadelphia market, offering its modern, customer-friendly Safehold ground lease capital in unison with a leasehold loan from an institutional national bank to facilitate the

Safehold Closes Two More Transactions in Texas

NEW YORK --(BUSINESS WIRE)--Feb. 28, 2019-- Safehold Inc. (NYSE: SAFE) continues its expansion in Texas with two Safehold™ ground leases in high growth submarkets of Dallas-Fort Worth . Both transactions were closed with our repeat client Admiral Capital . This press release features multimedia.

Funds from Operations (FFO) is a higher quality measure of SAFE’s earnings compared to net income. This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation. For SAFE, its FFO of US$8.7m makes up 40% of its gross profit, which means over a third of its earnings are high-quality and recurring.

Robust financial health can be measured using a common metric in the REIT investing world, FFO-to-debt. The calculation roughly estimates how long it will take for SAFE to repay debt on its balance sheet, which gives us insight into how much risk is associated with having that level of debt on its books. With a ratio of 2.8%, the credit rating agency Standard & Poor would consider this as aggressive risk. This would take SAFE 35.41 years to pay off using just operating income, which is a long time, and risk increases with time. But realistically, companies have many levers to pull in order to pay back their debt, beyond operating income alone.

Next, interest coverage ratio shows how many times SAFE’s earnings can cover its annual interest payments. Usually the ratio is calculated using EBIT, but for REITs, it’s better to use FFO divided by net interest. This is similar to the above concept, but looks at the nearer-term obligations. With an interest coverage ratio of 0.88x, SAFE is not generating an appropriate amount of cash from its borrowings. Typically, a ratio of greater than 3x is seen as safe.

https://simplywall.st/stocks/us/real-estate/nyse-safe/safety-income-growth/news/what-you-need-to-know-before-investing-in-safety-income-growth-inc-nysesafe/

Safety, Income and Growth has been portrayed as a relatively safe play - particularly as it trades below book value. However, there are real risks to the business model.

Currently, the company does not cover the dividend if all business expenses are considered as cash.

The business model makes zero on initial rent yields versus borrowing costs. There is little near-term economies of scale.

While contract escalators are tied to CPI, historically, LIBOR and CPI have had a different relationship. A return to historical norms would cause leases to be cash flow negative upon refinance.

https://seekingalpha.com/article/4208937-safety-income-growth-sober-look

BioSpecifics Technologies Corp (BSTC)

BioSpecifics Technologies Corp. is a biopharmaceutical company that has developed injectable collagenase for twelve clinical indications to date. Injectable collagenase (collagenase clostridium histolyticum or CCH) is marketed as XIAFLEX® in the U.S. for the treatment of Dupuytren's contracture and Peyronie's disease by BioSpecifics' partner, Endo International plc (Endo). XIAFLEX® is also commercialized in Japan, Europe, Canada and Australia for Dupuytren’s contracture and for Peyronie's disease in Canada, Europe and Australia. Endo is partnered with Paladin Labs, Sobi, Actelion and Asahi Kasei for Dupuytren's contracture and/or Peyronie's disease outside of the U.S. Recent News  Email Alerts Apr 2, 2019 BioSpecifics Technologies Corp. Reports Fourth Quarter and Full Year 2018 Financial Results Mar 18, 2019 BioSpecifics Technologies Corp. Announces Passing of President Thomas L. Wegman Nov 15, 2018 BioSpecifics Technologies Corp. Appoints Ron Law, Ph.D, J.D., as Senior Vice President of Business Development Corporate Presentation Corporate Presentation November 2018 BioSpecifics Corporate Presentation (2.3 MB) Recent and Upcoming Events 2017 Cantor Fitzgerald Global Healthcare Conference Wednesday, September 27, 2017 1:05pm EDT Rodman & Renshaw 19th Annual Global Investment Conference Tuesday, September 12, 2017 11:40am EDT Jefferies 2017 Global Healthcare Conference Tuesday, June 6, 2017 - Friday, June 9, 2017 16th Annual Needham Healthcare Conference Wednesday, April 5, 2017 8:00am EDT Based on the latest filings, there is 19.00% of insider ownership and 82.20% of institutional ownership. https://reagentsglobalmarket.com/2019/04/08/latest-movement-biospecifics-technologies-corp-nasdaq-bstc-2/

HFF, Inc (HF)

HFF, Inc. engages in the provision of commercial real estate and capital markets services. It offers investment banking, loan sales & distressed asset sales, investment advisory services, debt placement solutions & services, entity & project level equity services and commercial loan services. The company was founded in 1982 and is headquartered in Dallas, TX.

Company website investors page

http://phx.corporate-ir.net/phoenix.zhtml?c=205281&p=irol-irhome

Jones Lang LaSalle Inc. (JLL) is a leading professional service firm specializing in real estate and investment management. On March 19th, JLL announced an agreement in which it will purchase all outstanding shares of HFF Inc. (HF) in a cash and stock transaction valued at approximately $2 billion.

Under the terms of the agreement. HFF shareholders will receive $24.63 in cash and 0.1505 shares of JLL for each HFF share. This values HFF at $49.16 per share, a 6% premium over the March 18th closing price. JLL plans to fund the cash part of the deal using both cash reserves and its existing syndicated credit facility. The transaction has already received the approvals of the boards of directors of both companies. All seven HFF executive committee members have settled to vote their shares in favor of the deal, representing 3% ownership of the company. The transaction is expected to close in the third quarter of this year subject to HFF shareholder approval and regulatory review. At the close of the transaction, JLL and HFF shareholders are expected to own 87% and 13% of the combined company respectively
https://seekingalpha.com/article/4252303-jones-lang-lasalles-acquisition-hff-strengthens-capital-markets-presence