- iStar ( NYSE: STAR ) shares dipped 1.4% in Tuesday morning trading after Raymond James analyst Stephen Laws viewed its deal with Safehold ( NYSE: SAFE ) as an "appropriate" reason to downgrade STAR to Market Perform from Overweight.
- "With STAR’s valuation tied to SAFE, we believe a Market Perform rating is appropriate," he wrote in a note.
- Upon closing of the merger , which Laws assumed will take effect on May 15, STAR shareholders are expected to receive a special dividend of remaining SAFE shares in addition to interest in SpinCo.
- That yield will be determined by SAFE's price at closing. Using the current SAFE price, though, Laws estimated a special dividend of around $6.15 per share, or ~$0.18 SAFE shares per STAR share.
- See why Seeking Alpha contributor Preferred Stock Trader last month expected the iStar-Safehold combination to be an "excellent high yielding opportunity."
- In November 2022, iStar ( STAR ) declared a one-time special dividend payable in Safehold ( SAFE ) stock.
For further details see:
iStar loses bull rating at RayJay in wake of Safehold merger