Sachem Capital Reports First Quarter 2024 Results – Revenues Grew 17.0% to $17.2 Million
Sachem Capital Corp. reported its first-quarter results for 2024, showcasing a 17.0% revenue growth to $17.2 million. The company highlighted a focus on maintaining strong liquidity, growing borrower relationships, and protecting capital amidst economic uncertainties. Total revenue, interest income, and other income sources increased, while operating costs saw a rise primarily due to a provision for credit losses. Net income for common shareholders decreased to $3.6 million, or $0.08 per share, compared to the same period in 2023. The balance sheet remained stable, with total assets and liabilities showing consistency. Sachem Capital's strategic approach to debt repayment and shareholder equity growth was evident in the financial results.
Revenue grew by 17.0% to $17.2 million in the first quarter of 2024.
Strong focus on maintaining liquidity, growing borrower relationships, and protecting capital amidst economic uncertainties.
Total revenue, interest income, net investment gain, and fee and other income sources increased.
Total shareholders' equity rose to $237.4 million, showcasing growth in additional paid-in capital and a reduction in accumulated deficit.
Net income attributable to common shareholders decreased to $3.6 million, or $0.08 per share, from $4.2 million, or $0.10 per share, in the same period of 2023.
Operating costs and expenses increased to $12.5 million from $9.6 million, primarily due to a $1.2 million non-cash increase in provision for credit losses.
Reduction in net mortgages receivable by $9.0 million contributed to the stability in total assets.
Total indebtedness at quarter end was $371.2 million, with focus on repayment of principal amounts due in 2024.
- Company to Host Webcast and Conference Call -
BRANFORD, Conn., May 10, 2024 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) announced its financial results for the first quarter ended March 31, 2024. The Company will host a conference call on Friday, May 10, 2024 at 8:00 a.m. Eastern Time to discuss its financial and operating results.
John Villano, CPA, Sachem Capital’s Chief Executive Officer, stated: “In the first quarter, we continued to navigate through an evolving and challenging macro environment marked by uncertainty regarding inflation, and the Federal Reserve’s future rate policy. We remain disciplined, and while long-term capital remains relatively unavailable to our borrowers, we are focused on maintaining strong liquidity, growing borrower relationships, and protecting our capital. Our diversified portfolio and solid balance sheet provide confidence as we patiently wait to resume building our business.”
Results of operations for quarter ended March 31, 2024
Total revenue grew
Total operating costs and expenses for the quarter ended March 31, 2024 were
Net income attributable to common shareholders for the three months ended March 31, 2024 was
Balance Sheet
Total assets remained relatively consistent at
Total indebtedness at quarter end was
Total shareholders’ equity at March 31, 2024 rose
Dividends
On April 16th, 2024, the Company paid a quarterly dividend of
The Company currently operates and qualifies as a Real Estate Investment Trust (REIT) for federal income taxes and intends to continue to qualify and operate as a REIT. Under federal income tax rules, a REIT is required to distribute a minimum of
Investor Conference Webcast and Call
The Company will host a webcast and conference call Friday, May 10, 2024 at 8:00 a.m. Eastern Time, to discuss in greater detail its financial results for the quarter ended March 31, 2024. A webcast of the call may be accessed on the Company’s website at https://ir.sachemcapitalcorp.com/ir-calendar.
Interested parties can access the conference call via telephone by dialing toll free 844-825-9789 for U.S. callers or +1-412-317-5180 for international callers.
Replay
The webcast will also be archived on the Company’s website and a telephone replay of the call will be available through Friday, May 24, 2024 and can be accessed by dialing 1-844-512-2921 for U.S. callers or +1 412-317-6671 for international callers and by entering replay passcode: 10187884.
About Sachem Capital Corp
Sachem Capital Corp. is a mortgage REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property. It offers short-term (i.e., three years or less) secured, nonbanking loan to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The Company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and is personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.
Forward Looking Statements
This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words “anticipate,” “estimate,” “expect,” “project,” “plan,” “seek,” “intend,” “believe,” “may,” “might,” “will,” “should,” “could,” “likely,” “continue,” “design,” and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based primarily on management’s current expectations and projections about future events and trends that management believes may affect the Company’s financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2023 filed with the U.S. Securities and Exchange Commission on April 1, 2024. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the Company in the context of these risks and uncertainties.
Investor & Media Contact:
Email: investors@sachemcapitalcorp.com
SACHEM CAPITAL CORP. CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
March 31, 2024 | December 31, 2023 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 18,413,401 | $ | 12,598,256 | ||||
Investment securities, net (at fair value) | 38,432,752 | 37,776,032 | ||||||
Mortgages receivable | 490,743,670 | 499,235,371 | ||||||
Less: Allowance for credit losses | (8,053,252 | ) | (7,523,160 | ) | ||||
Mortgages receivable, net of allowance for credit losses | 482,690,418 | 491,712,211 | ||||||
Investments in rental real estate, net | 11,266,309 | 10,554,461 | ||||||
Interest and fees receivable, net | 8,083,432 | 8,474,820 | ||||||
Due from borrowers, net | 5,241,976 | 5,596,883 | ||||||
Real estate owned | 3,703,519 | 3,461,519 | ||||||
Investments in partnerships | 46,221,719 | 43,035,895 | ||||||
Property and equipment, net | 3,330,653 | 3,373,485 | ||||||
Other assets | 9,143,300 | 8,955,250 | ||||||
Total assets | $ | 626,527,479 | $ | 625,538,812 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Notes payable (net of deferred financing costs of | $ | 282,958,513 | $ | 282,353,260 | ||||
Repurchase facility | 25,860,601 | 26,461,098 | ||||||
Mortgage payable | 1,061,720 | 1,081,303 | ||||||
Lines of credit | 62,251,343 | 61,792,330 | ||||||
Accrued dividends payable | — | 5,144,203 | ||||||
Accounts payable and accrued liabilities | 2,754,348 | 2,321,535 | ||||||
Advances from borrowers | 9,176,571 | 10,998,351 | ||||||
Below market lease intangible | 664,737 | 664,737 | ||||||
Deferred revenue | 4,356,605 | 4,647,302 | ||||||
Total liabilities | $ | 389,084,438 | $ | 395,464,119 | ||||
Commitments and Contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred shares - | $ | 2,109 | $ | 2,030 | ||||
Common stock - | 47,446 | 46,765 | ||||||
Paid-in capital | 253,669,954 | 249,825,780 | ||||||
Accumulated other comprehensive income | 190,329 | 315,614 | ||||||
Accumulated deficit | (16,466,797 | ) | (20,115,496 | ) | ||||
Total shareholders’ equity | 237,443,041 | 230,074,693 | ||||||
Total liabilities and shareholders’ equity | $ | 626,527,479 | $ | 625,538,812 |
SACHEM CAPITAL CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2024 | 2023 | ||||||
Revenue: | |||||||
Interest income from loans | $ | 12,641,444 | $ | 10,983,326 | |||
Investment gain, net | 527,824 | 274,796 | |||||
Income from partnership investments | 1,195,300 | 549,723 | |||||
Origination and modification fees, net | 1,461,966 | 1,475,920 | |||||
Fee and other income | 1,189,241 | 707,605 | |||||
Unrealized gain on equity securities | 185,181 | 716,389 | |||||
Total revenue | 17,200,956 | 14,707,759 | |||||
Operating costs and expenses: | |||||||
Interest and amortization of deferred financing costs | 7,469,442 | 6,872,967 | |||||
Compensation, fees and taxes | 1,943,197 | 1,779,318 | |||||
General and administrative expenses | 1,238,574 | 898,115 | |||||
Other expenses | 556,640 | 83,722 | |||||
(Gain) Loss on sale of real estate and property and equipment, net | 10,854 | (148,100 | ) | ||||
Provision for credit losses related to loans | 1,312,024 | 101,515 | |||||
Total operating costs and expenses | 12,530,731 | 9,587,537 | |||||
Net income | 4,670,225 | 5,120,222 | |||||
Preferred stock dividend | (1,021,526 | ) | (924,762 | ) | |||
Net income attributable to common shareholders | 3,648,699 | 4,195,460 | |||||
Other comprehensive income | |||||||
Unrealized (loss) gain on debt securities | (125,285 | ) | 91,637 | ||||
Total comprehensive income | $ | 3,523,414 | $ | 4,287,097 | |||
Basic and diluted net income per common share outstanding: | |||||||
Basic | $ | 0.08 | $ | 0.10 | |||
Diluted | $ | 0.08 | $ | 0.10 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 47,326,384 | 42,792,509 | |||||
Diluted | 47,326,384 | 42,792,509 |
SACHEM CAPITAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOW | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2024 | 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 4,670,225 | $ | 5,120,222 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Amortization of deferred financing costs and bond discount | 623,788 | 600,215 | |||||
Depreciation expense | 94,174 | 40,132 | |||||
Stock-based compensation | 238,712 | 173,315 | |||||
Provision for credit losses related to loans | 1,312,024 | 101,515 | |||||
Loss (Gain) on sale of real estate and equipment, net | 10,854 | (148,100 | ) | ||||
Unrealized gain on equity securities | (185,181 | ) | (716,389 | ) | |||
Gain on sale of investment securities | — | (275,879 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivable, net | 391,388 | (366,191 | ) | ||||
Other assets | (221,845 | ) | (489,696 | ) | |||
Due from borrowers, net | (1,037,945 | ) | (783,302 | ) | |||
Accounts payable and accrued liabilities | 432,813 | 10,483 | |||||
Deferred revenue | (290,697 | ) | 320,608 | ||||
Advances from borrowers | (1,821,780 | ) | 1,422,458 | ||||
Total adjustments | (453,695 | ) | (110,831 | ) | |||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 4,216,530 | 5,009,391 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchase of investment securities | (7,725,283 | ) | (13,971,218 | ) | |||
Proceeds from the sale of investment securities | 7,128,459 | 3,780,522 | |||||
Purchase of interests in investment partnerships, net | (3,185,824 | ) | (4,491,054 | ) | |||
Proceeds from sale of real estate owned | 121,146 | 515,136 | |||||
Acquisitions of and improvements to real estate owned, net | — | (103,136 | ) | ||||
Purchases of property and equipment | (14,505 | ) | (710,883 | ) | |||
Purchases of rental real estate | (748,685 | ) | — | ||||
Principal disbursements for mortgages receivable | (42,654,300 | ) | (58,883,824 | ) | |||
Principal collections on mortgages receivable | 51,398,181 | 39,884,300 | |||||
Other assets – pre-offering costs | — | 25,111 | |||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 4,319,189 | (33,955,046 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Net proceeds from lines of credit | 459,013 | 10,086,036 | |||||
Net proceeds from (repayment of) repurchase facility | (600,497 | ) | 11,522,349 | ||||
Proceeds from (repayment of) mortgage | (19,583 | ) | 910,000 | ||||
Accounts payable and accrued liabilities – principal payments on other notes | — | (4,252 | ) | ||||
Dividends paid on common shares | (5,144,203 | ) | (5,342,160 | ) | |||
Dividends paid on Series A Preferred Stock | (1,021,526 | ) | (924,762 | ) | |||
Proceeds from issuance of common shares, net of expenses | 2,050,040 | 9,181,158 | |||||
Proceeds from issuance of Series A Preferred Stock, net of expenses | 1,556,182 | 136,705 | |||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (2,720,574 | ) | 25,565,074 | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5,815,145 | (3,380,581 | ) | ||||
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD | 12,598,256 | 23,713,097 | |||||
CASH AND CASH EQUIVALENTS – END OF PERIOD | $ | 18,413,401 | $ | 20,332,516 |
FAQ
What was the revenue growth percentage reported by Sachem Capital Corp. for the first quarter of 2024?
What caused the increase in interest income for Sachem Capital Corp. in the first quarter of 2024?
What was the net income attributable to common shareholders for the three months ended March 31, 2024?
How did the total assets of Sachem Capital Corp. change from December 31, 2023, to March 31, 2024?