Sachem Capital Reports First Quarter 2025 Results
- Income from preferred membership LLC investments increased 71.7% year-over-year
- Operating costs decreased by $2.1 million compared to previous year
- Maintained stable balance sheet with total assets of $491.4 million
- Continued dividend payments maintaining REIT status
- Revenue declined 32.1% year-over-year to $11.4 million
- Reported net loss of $213,000 compared to $3.6 million profit in Q1 2024
- Book value per share decreased from $2.64 to $2.57
- Elevated amount of nonperforming loans and real estate owned
- Reduced loan originations over the past fifteen months
Insights
Sachem Capital shows financial deterioration with Q1 revenue down 32% YoY, resulting in a net loss despite expense reductions and balance sheet stability.
Sachem Capital's Q1 2025 results reveal significant challenges for this mortgage REIT. Revenue declined
The company did manage to cut operating expenses by
Despite these cost-cutting measures, Sachem posted a net loss of
The balance sheet remained relatively stable quarter-over-quarter at
One positive signal was the
Management's commentary emphasizes stabilization after a difficult period, focusing on capital preservation rather than growth. The statement that "dividend growth will return" suggests current dividend levels (
- Company to Host Webcast and Conference Call -
BRANFORD, Conn., May 01, 2025 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) (the “Company”), a real estate lender specializing in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property, today announced its financial results for the quarter ended March 31, 2025.
John Villano, CPA, Sachem Capital’s Chief Executive Officer commented, “The first quarter was one of stability for the Company as we put the challenges of the past year behind us. Our balance sheet showed almost no change from the prior quarter, as we remain focused on effectively managing our loan portfolio and protecting our capital. Our goal is to grow our balance sheet, capitalizing on quality opportunities to invest capital at attractive yields, while maintaining a prudent capital allocation approach. Overall, while uncertainty across the real estate and capital markets remain elevated, we are pleased with the stability of our portfolio and the liquidity on our balance sheet, and we are confident that cash flow and dividend growth will return as we leverage our industry relationships and focus on driving shareholder value.”
Results of operations for the quarter ended March 31, 2025
Total revenue was
Total operating costs and expenses for the first quarter of 2025 were
Net loss attributable to common shareholders for the first quarter of 2025 was
Balance Sheet
Total assets as of March 31, 2025 were
Total indebtedness at quarter-end was
Total shareholders’ equity at March 31, 2025 was
Dividends
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
On March 31, 2025, the Company paid a dividend of
On March 31, 2025, the Company paid a dividend of
Investor Conference Webcast and Call
The Company is hosting a webcast and conference call Thursday, May 1, 2025 at 8:00 a.m. Eastern Time, to discuss in greater detail its financial results for the quarter ended March 31, 2025. A webcast of the call may be accessed on the Company’s website at https://sachemcapitalcorp.com/investor-relations/events-and-presentations/default.aspx.
Interested parties can access the conference call via telephone by dialing toll free 1-877-704-4453 for U.S. callers or 1-201-389-0920 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 Thursday, May 15, 2025, 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: 13752977.
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 loans 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. Such forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2024 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2025. Because of these risks, uncertainties and assumptions, any forward-looking events and circumstances discussed in this press release may not occur. You should not rely upon forward-looking statements as predictions of future events. 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. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| (unaudited) | (audited) | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 24,414 | $ | 18,066 | ||||
| Investment securities (at fair value) | 1,392 | 1,517 | ||||||
| Loans held for investment (net of deferred loan fees of | 365,635 | 375,041 | ||||||
| Allowance for credit losses | (18,122 | ) | (18,470 | ) | ||||
| Loans held for investment, net | 347,513 | 356,571 | ||||||
| Loans held for sale (net of valuation allowance of | 10,974 | 10,970 | ||||||
| Interest and fees receivable (net of allowance of | 4,281 | 3,768 | ||||||
| Due from borrowers (net of allowance of | 4,413 | 5,150 | ||||||
| Real estate owned, net | 18,865 | 18,574 | ||||||
| Investments in limited liability companies | 53,935 | 53,942 | ||||||
| Investments in developmental real estate, net | 16,432 | 14,032 | ||||||
| Property and equipment, net | 3,209 | 3,222 | ||||||
| Other assets | 5,967 | 6,164 | ||||||
| Total assets | $ | 491,395 | $ | 491,976 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Liabilities: | ||||||||
| Notes payable (net of deferred financing costs of | $ | 227,007 | $ | 226,526 | ||||
| Repurchase agreements | 41,519 | 33,708 | ||||||
| Mortgage payable | 981 | 1,002 | ||||||
| Lines of credit | 36,100 | 40,000 | ||||||
| Accounts payable and accrued liabilities | 2,705 | 4,377 | ||||||
| Advances from borrowers | 3,079 | 4,047 | ||||||
| Below market lease intangible | 665 | 665 | ||||||
| Total liabilities | 312,056 | 310,325 | ||||||
| Commitments and Contingencies - Note 13 | ||||||||
| Shareholders’ equity: | ||||||||
| Preferred shares - | 2 | 2 | ||||||
| Common Shares - | 47 | 47 | ||||||
| Additional paid-in capital | 257,220 | 256,956 | ||||||
| Cumulative net earnings | 36,422 | 35,518 | ||||||
| Cumulative dividends paid | (114,352 | ) | (110,872 | ) | ||||
| Total shareholders’ equity | 179,339 | 181,651 | ||||||
| Total liabilities and shareholders’ equity | $ | 491,395 | $ | 491,976 | ||||
| SACHEM CAPITAL CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | ||||||||
| Interest income from loans | $ | 7,887 | $ | 12,641 | ||||
| Fee income from loans | 1,425 | 2,616 | ||||||
| Income from limited liability company investments | 2,052 | 1,195 | ||||||
| Other investment income | 6 | 316 | ||||||
| Other income | 72 | 35 | ||||||
| Total revenues | 11,442 | 16,803 | ||||||
| Operating expenses | ||||||||
| Interest and amortization of deferred financing costs | 6,094 | 7,469 | ||||||
| Compensation and employee benefits | 1,771 | 1,943 | ||||||
| General and administrative expenses | 1,355 | 1,239 | ||||||
| Provision for credit losses related to loans held for investment | 1,052 | 1,365 | ||||||
| Change in valuation allowance related to loans held for sale | (4 | ) | — | |||||
| Loss on sale of real estate owned and property and equipment, net | — | 11 | ||||||
| Other expenses | 145 | 503 | ||||||
| Total operating expenses | 10,413 | 12,530 | ||||||
| Operating income | 1,029 | 4,273 | ||||||
| Other (loss) income, net | ||||||||
| (Loss) gain on equity securities | (125 | ) | 397 | |||||
| Total other (loss) income, net | (125 | ) | 397 | |||||
| Net income | 904 | 4,670 | ||||||
| Preferred stock dividend | (1,117 | ) | (1,022 | ) | ||||
| Net (loss) income attributable to common shareholders | $ | (213 | ) | $ | 3,648 | |||
| Basic and diluted (loss) earnings per Common Share | $ | (0.00 | ) | $ | 0.08 | |||
| Basic and diluted weighted average Common Shares outstanding | 46,784,744 | 47,128,511 | ||||||
| SACHEM CAPITAL CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income | $ | 904 | $ | 4,670 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Amortization of deferred financing costs | 545 | 624 | ||||||
| Depreciation expense | 92 | 94 | ||||||
| Stock-based compensation | 264 | 239 | ||||||
| Provision for credit losses related to loans held for investment | 1,052 | 1,365 | ||||||
| Change in valuation allowance related to loans held for sale | (4 | ) | — | |||||
| Loss on sale of real estate owned and property and equipment, net | — | 11 | ||||||
| Loss (gain) on equity securities | 125 | (397 | ) | |||||
| Change in deferred loan fees | 275 | (291 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Interest and fees receivable, net | (361 | ) | 392 | |||||
| Other assets | 133 | (63 | ) | |||||
| Due from borrowers, net | (254 | ) | (1,038 | ) | ||||
| Accounts payable and accrued liabilities | (1,612 | ) | 433 | |||||
| Advances from borrowers | (968 | ) | (1,822 | ) | ||||
| Total adjustments and operating changes | (713 | ) | (453 | ) | ||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 191 | 4,217 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of investment securities | — | (7,725 | ) | |||||
| Proceeds from the sale of investment securities | — | 7,128 | ||||||
| Purchase of interests in limited liability companies | (4,223 | ) | (3,186 | ) | ||||
| Proceeds from limited liability companies returns of capital | 4,230 | — | ||||||
| Proceeds from sale of real estate owned | 89 | 121 | ||||||
| Acquisitions of and improvements to real estate owned | — | (749 | ) | |||||
| Purchase of property and equipment | (41 | ) | (14 | ) | ||||
| Improvements in investment in developmental real estate | (742 | ) | — | |||||
| Principal disbursements for loans | (41,308 | ) | (42,654 | ) | ||||
| Principal collections on loans | 47,742 | 51,398 | ||||||
| NET CASH PROVIDED BY INVESTING ACTIVITIES | 5,747 | 4,319 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from lines of credit | 36,100 | 460 | ||||||
| Repayments on lines of credit | (40,000 | ) | (600 | ) | ||||
| Proceeds from repurchase agreements | 11,693 | — | ||||||
| Repayments of repurchase agreements | (3,882 | ) | — | |||||
| Repayment of mortgage payable | (21 | ) | (20 | ) | ||||
| Dividends paid on Common Shares | (2,363 | ) | (5,144 | ) | ||||
| Dividends paid on Series A Preferred Stock | (1,117 | ) | (1,022 | ) | ||||
| Proceeds from issuance of Common Shares, net of expenses | — | 2,049 | ||||||
| Proceeds from issuance of Series A Preferred Stock, net of expenses | — | 1,556 | ||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 410 | (2,721 | ) | |||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 6,348 | 5,815 | ||||||
| CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD | 18,066 | 12,598 | ||||||
| CASH AND CASH EQUIVALENTS – END OF PERIOD | $ | 24,414 | $ | 18,413 | ||||
FAQ
What were Sachem Capital's (SACH) Q1 2025 earnings results?
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