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Sachem Capital Reports Full Year 2024 Results

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Sachem Capital Corp. (NYSE American: SACH) reported its financial results for the year ended December 31, 2024, showing significant challenges. Total revenue declined to $57.5 million from $64.7 million in 2023, while interest income decreased to $43.2 million from $49.3 million.

The company reported a net loss of $43.9 million ($0.93 per share) compared to net income of $12.1 million ($0.27 per share) in 2023. Total assets decreased to $492.0 million from $620.9 million, primarily due to a $130.5 million reduction in loans held for investment. Total liabilities reduced to $310.3 million from $390.8 million.

The company maintained its dividend payments, declaring a $0.05 quarterly dividend per common share and $0.484375 per Series A Preferred Stock share for March 2025.

Sachem Capital Corp. (NYSE American: SACH) ha riportato i risultati finanziari per l'anno conclusosi il 31 dicembre 2024, evidenziando sfide significative. I ricavi totali sono diminuiti a 57,5 milioni di dollari rispetto ai 64,7 milioni del 2023, mentre il reddito da interessi è sceso a 43,2 milioni di dollari rispetto ai 49,3 milioni dell'anno precedente.

La società ha registrato una perdita netta di 43,9 milioni di dollari (0,93 dollari per azione) rispetto a un utile netto di 12,1 milioni di dollari (0,27 dollari per azione) nel 2023. Gli attivi totali sono diminuiti a 492,0 milioni di dollari rispetto ai 620,9 milioni, principalmente a causa di una riduzione di 130,5 milioni di dollari nei prestiti detenuti per investimento. Le passività totali sono scese a 310,3 milioni di dollari rispetto ai 390,8 milioni.

La società ha mantenuto i pagamenti dei dividendi, dichiarando un dividendo trimestrale di 0,05 dollari per azione comune e 0,484375 dollari per azione di azioni privilegiate di Serie A per marzo 2025.

Sachem Capital Corp. (NYSE American: SACH) informó sus resultados financieros para el año que terminó el 31 de diciembre de 2024, mostrando desafíos significativos. Los ingresos totales disminuyeron a 57,5 millones de dólares desde 64,7 millones en 2023, mientras que los ingresos por intereses cayeron a 43,2 millones de dólares desde 49,3 millones.

La compañía reportó una pérdida neta de 43,9 millones de dólares (0,93 dólares por acción) en comparación con una ganancia neta de 12,1 millones de dólares (0,27 dólares por acción) en 2023. Los activos totales disminuyeron a 492,0 millones de dólares desde 620,9 millones, principalmente debido a una reducción de 130,5 millones de dólares en préstamos mantenidos para inversión. Las pasivos totales se redujeron a 310,3 millones de dólares desde 390,8 millones.

La compañía mantuvo sus pagos de dividendos, declarando un dividendo trimestral de 0,05 dólares por acción común y 0,484375 dólares por acción de acciones preferentes de Serie A para marzo de 2025.

Sachem Capital Corp. (NYSE American: SACH)는 2024년 12월 31일 종료된 연도의 재무 결과를 보고하며 상당한 도전 과제를 보여주었습니다. 총 수익이 감소했습니다 2023년 64.7백만 달러에서 57.5백만 달러로, 이자 수익은 49.3백만 달러에서 43.2백만 달러로 줄어들었습니다.

회사는 순손실 43.9백만 달러(주당 0.93달러)를 보고했으며, 이는 2023년 12.1백만 달러(주당 0.27달러)의 순이익과 비교됩니다. 총 자산은 620.9백만 달러에서 492.0백만 달러로 감소했으며, 이는 주로 투자용으로 보유한 대출이 130.5백만 달러 줄어든 데 기인합니다. 총 부채는 390.8백만 달러에서 310.3백만 달러로 줄어들었습니다.

회사는 배당금 지급을 유지하며, 2025년 3월에 보통주당 0.05달러, A형 우선주당 0.484375달러의 분기 배당금을 선언했습니다.

Sachem Capital Corp. (NYSE American: SACH) a publié ses résultats financiers pour l'année se terminant le 31 décembre 2024, montrant des défis significatifs. Les revenus totaux ont diminué à 57,5 millions de dollars contre 64,7 millions en 2023, tandis que les revenus d'intérêts ont baissé à 43,2 millions de dollars contre 49,3 millions.

L'entreprise a enregistré une perte nette de 43,9 millions de dollars (0,93 dollar par action) par rapport à un bénéfice net de 12,1 millions de dollars (0,27 dollar par action) en 2023. Les actifs totaux ont diminué à 492,0 millions de dollars contre 620,9 millions, principalement en raison d'une réduction de 130,5 millions de dollars des prêts détenus pour investissement. Les passifs totaux ont diminué à 310,3 millions de dollars contre 390,8 millions.

L'entreprise a maintenu ses paiements de dividendes, déclarant un dividende trimestriel de 0,05 dollar par action ordinaire et 0,484375 dollar par action d'actions privilégiées de série A pour mars 2025.

Sachem Capital Corp. (NYSE American: SACH) hat seine finanziellen Ergebnisse für das am 31. Dezember 2024 endende Jahr veröffentlicht und erhebliche Herausforderungen aufgezeigt. Der Gesamtumsatz ist gesunken auf 57,5 Millionen Dollar von 64,7 Millionen Dollar im Jahr 2023, während die Zinserträge auf 43,2 Millionen Dollar von 49,3 Millionen Dollar zurückgingen.

Das Unternehmen berichtete von einem Nettoverlust von 43,9 Millionen Dollar (0,93 Dollar pro Aktie) im Vergleich zu einem Nettogewinn von 12,1 Millionen Dollar (0,27 Dollar pro Aktie) im Jahr 2023. Die Gesamtaktiva sanken auf 492,0 Millionen Dollar von 620,9 Millionen Dollar, hauptsächlich aufgrund einer Reduzierung der für Investitionen gehaltenen Kredite um 130,5 Millionen Dollar. Die Gesamtverbindlichkeiten reduzierten sich auf 310,3 Millionen Dollar von 390,8 Millionen Dollar.

Das Unternehmen hielt an seinen Dividendenzahlungen fest und erklärte eine vierteljährliche Dividende von 0,05 Dollar pro Stammaktie und 0,484375 Dollar pro Aktie der Serie A Vorzugsaktien für März 2025.

Positive
  • 48.8% year-over-year increase in income from partnership investments
  • Reduced total liabilities by $80.5 million
  • Maintained REIT status and continued dividend payments
Negative
  • Net loss of $43.9 million compared to $12.1 million profit in 2023
  • Revenue declined 11.1% to $57.5 million from $64.7 million
  • $21.3 million increase in provision for credit losses
  • Total assets decreased by $128.9 million
  • Reduction in loans held for investment by $130.5 million
  • Interest income decreased by $6.1 million

Insights

Sachem Capital's 2024 results reveal significant financial deterioration with a concerning net loss of $43.9 million ($0.93 per share) compared to 2023's net income of $12.1 million—representing a stark 462% negative swing. This dramatic shift stems primarily from a $21.3 million increase in credit loss provisions, signaling serious concerns about loan quality in their real estate lending portfolio.

The company's defensive posture is evident in their substantial deleveraging efforts, including a $130.5 million reduction in loans held for investment, repayment of $58.3 million in unsecured notes, and $21.8 million reduction in credit lines. Total assets dropped 20.8% to $492 million, while shareholder equity declined 21% to $181.7 million—a substantial erosion of capital.

Most telling for income-focused REIT investors is the significant dividend reduction to $0.05 per common share, reflecting management's need to conserve capital amid deteriorating fundamentals. Revenue declined 11.1% to $57.5 million while operating expenses surged 51.5% to $75.3 million, creating an unsustainable expense-to-revenue ratio of 131%.

While management's focus on selling non-performing loans and reducing debt load represents appropriate defensive measures in challenging market conditions, the magnitude of losses relative to the company's ~$54.5 million market capitalization raises serious concerns about their trajectory. The 48.8% increase in partnership investment income provides the only notable bright spot in an otherwise deeply troubling financial report.

- Company to Host Webcast and Conference Call -

BRANFORD, Conn., March 27, 2025 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH), 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 year ended December 31, 2024.

John Villano, CPA, Sachem Capital’s Chief Executive Officer commented, “We remain focused on effectively managing our loan portfolio and protecting our capital as we continue our efforts to navigate challenging financial and real estate markets. These efforts include managing our debt load and the associated carrying costs and selling non-performing loans, which should reduce the allowances for credit losses that have been a drag on earnings. We continue to evaluate attractive opportunities to invest capital while maintaining a disciplined capital allocation approach. With our experienced team, we remain confident that growth will return as we leverage strong industry relationships and work to increase shareholder value.”

Results of operations for year ended December 31, 2024

Total revenue was $57.5 million compared to $64.7 million in 2023. The decline in revenue was primarily due to fewer originations and a reduction in the number of loans held for investment. Also, interest income, fee income from loans and other investment income was lower compared to 2023. Interest income in 2024 was $43.2 million compared to $49.3 million for 2023. On the other hand, income from partnership investments increased approximately 48.8%, year-over-year.

Total operating costs and expenses for 2024 were $75.3 million compared to $49.7 million in 2023. The change was primarily due to an increase of $21.3 million in provision for credit losses and a $1.9 million increase in general and administrative expenses. These increases were offset by lower interest and amortization expense of $1.4 million.

Net loss attributable to common shareholders for 2024 was $43.9 million, or $0.93 per share compared to net income attributable to common shareholders of $12.1 million, or $0.27 per share for 2023.

Balance Sheet

Total assets as of the year ended December 31, 2024 were $492.0 million compared to $620.9 million as of December 31, 2023. The change was primarily due to net reduction in loans held for investment by $130.5 million. Total liabilities as of December 31, 2024 were $310.3 million compared to $390.8 million as of December 31, 2023, with the primary decreases coming from the repayment of unsubordinated unsecured five year notes that matured in 2024, in the aggregate principal amount of $58.3 million, and the paydown of lines of credit balances in the aggregate amount of $21.8 million.

Total indebtedness at year-end was $301.2 million. This includes: $226.5 million of notes payable (net of $3.7 million of deferred financing costs) and $74.7 million aggregate outstanding principal amount of the amounts due under various credit facilities and the mortgage loan on the Company’s office building.

Total shareholders’ equity at year-end 2024 was $181.7 million compared to $230.1 million at year-end 2023. The change was primarily due to an operational total net loss for the year of $39.6 million and preferred and common stock dividends declared and paid of $15.7 million.

Dividends

Over the course of 2024, the Company paid an aggregate of $4.3 million in dividends to holders of its Series A Cumulative Redeemable Preferred Stock and $11.4 million to the holders of its common shares.

On February 24, 2025, the Company declared a dividend of $0.484375 per share on the Series A Preferred Stock, payable on March 31, 2025 to Series A Preferred Stock shareholders of record on March 15, 2025.

On March 6, 2025, the Company declared a quarterly dividend of $0.05 per common share payable to common shareholders of record on March 17, 2025. The dividend is expected to be paid March 31, 2025.

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 90% of taxable income each year to its shareholders, and the Company intends to comply with this requirement for the current year.

Investor Conference Webcast and Call

The Company is hosting a webcast and conference call Thursday, March 27, 2025 at 8:00 a.m. Eastern Time, to discuss in greater detail its financial results for the full year ended December 31, 2024. 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 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, April 10, 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: 13750432.

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 to be filed with the U.S. Securities and Exchange Commission (the “SEC”) on or before 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.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
       
     Years Ended
  December 31,
  2024  2023 
Assets   (unaudited)    (audited)  
Cash and cash equivalents $18,066  $12,598 
Investment securities (at fair value)  1,517   37,776 
Loans held for investment (net of deferred loan fees of $1,950 and $4,647)  375,041   494,588 
Allowance for credit losses  (18,470)  (7,523)
Loans held for investments, net of allowances for credit losses  356,571   487,065 
Loans held for sale (net, of valuation allowance of $4,880 and $0)  10,970    
Interest and fees receivable, net  3,768   8,475 
Due from borrowers, net  5,150   5,597 
Real estate owned, net  18,574   3,462 
Investments in limited liability companies  53,942   43,036 
Investments in rental real estate, net  14,032   10,554 
Property and equipment, net  3,222   3,373 
Other assets  6,164   8,956 
Total assets $491,976  $620,892 
Liabilities and Shareholders' Equity      
Liabilities:      
Notes payable (net of deferred financing costs of $3,713 and $6,048) $226,526  $282,353 
Repurchase agreements  33,708   26,461 
Mortgage payable  1,002   1,081 
Lines of credit  40,000   61,792 
Accrued dividends payable     5,144 
Accounts payable and accrued liabilities  4,377   2,322 
Advances from borrowers  4,047   10,998 
Below market lease intangible  665   665 
Total liabilities  310,325   390,816 
Commitments and Contingencies      
Shareholders’ equity:      
Preferred shares - $.001 par value; 5,000,000 shares authorized; 2,903,000 shares designated as Series A Preferred Stock; 2,306,748 and 2,029,923 shares of Series A Preferred Stock issued and outstanding at December 31, 2024 and December 31, 2023, respectively  2   2 
Common stock - $.001 par value; 200,000,000 shares authorized; 46,965,306 and 46,765,483 issued and outstanding at December 31, 2024 and December 31, 2023, respectively  47   47 
Additional paid-in capital  256,956   249,826 
Accumulated other comprehensive income     316 
Cumulative net earnings  35,518   75,089 
Cumulative dividends paid  (110,872)  (95,204)
Total shareholders’ equity  181,651   230,076 
Total liabilities and shareholders’ equity $491,976  $620,892 


SACHEM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
       
  Years Ended
  December 31, 
     2024 2023
Revenues  (unaudited)    (audited)  
Interest income from loans $43,154  $49,265 
Fee income from loans  8,594   10,699 
Income from limited liability company investments  5,239   3,522 
Other investment income  391   1,209 
Other income  122   54 
Total revenues  57,500   64,749 
       
Operating expenses      
Interest and amortization of deferred financing costs  27,798   29,190 
Compensation and employee benefits  6,824   6,932 
General and administrative expenses  6,841   4,955 
Provision for credit losses related to available-for-sale debt securities     809 
Provision for credit losses related to loans held for investment  26,928   5,588 
Change in valuation allowance, loans held for sale  4,880    
Impairment loss on real estate owned  492   794 
(Gain) loss on sale of real estate and property and equipment, net  (439)  88 
Other expenses  1,952   1,354 
Total operating expenses  75,276   49,710 
Operating (loss) income before other (loss) income  (17,776)  15,039 
       
Other (loss) income      
Gain on equity securities  178   860 
Loss on sale of loans  (21,973)   
Total other (loss) income, net  (21,795)  860 
Net (loss) income  (39,571)  15,899 
Preferred stock dividend  (4,304)  (3,795)
Net (loss) income attributable to common shareholders $(43,875) $12,104 
       
Basic (loss) earnings per Common Share $(0.93) $0.27 
Diluted (loss) earnings per Common Share $(0.93) $0.27 
Basic weighted average Common Shares outstanding  47,413,012   44,244,988 
Diluted weighted average Common Shares outstanding  47,413,012   44,244,988 


SACHEM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
       
  Years Ended
  December 31,
     2024     2023 
CASH FLOWS FROM OPERATING ACTIVITIES  (unaudited)    (audited)  
Net (loss) income $(39,571) $15,899 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Amortization of deferred financing costs  2,456   2,415 
Depreciation expense  372   266 
Write-off of other assets - pre-offering costs     477 
Stock-based compensation  863   823 
Provision for credit losses related to available-for-sale debt securities     809 
Provision for credit losses related to loans held for investment  26,928   5,588 
Change in valuation allowance, loans held for sale  4,880    
Loss on sale of Loans  21,973    
Impairment loss on real estate owned  492   794 
(Gain) loss on sale of real estate and property and equipment, net  (439)  88 
(Gain) on equity securities  (178)  (860)
Changes in operating assets and liabilities:      
Interest and fees receivable, net  1,574   (2,285)
Other assets  2,656   (3,596)
Due from borrowers, net  (689)  (334)
Accounts payable and accrued liabilities  1,132   374 
Deferred loan fees revenue  (2,697)  287 
Advances from borrowers  (6,951)  1,106 
Total adjustments and operating changes  52,372   5,952 
NET CASH PROVIDED BY OPERATING ACTIVITIES  12,801   21,851 
       
CASH FLOWS FROM INVESTING ACTIVITIES        
Purchase of investment securities  (7,767)  (30,415)
Proceeds from the sale of investment securities  43,964   18,120 
Purchase of interests in limited liability companies  (18,271)  (13,896)
Proceeds from limited liability companies returns of capital  7,310   1,661 
Proceeds from sale of loans, net  36,122    
Proceeds from sale of real estate owned  2,613   450 
Acquisitions of and improvements to real estate owned  (510)  (229)
Proceeds from sale of property and equipment     1,299 
Purchase of property and equipment  (203)  (784)
Improvements in investment in rental real estate  (3,496)  (10,845)
Principal disbursements for loans  (134,298)  (204,885)
Principal collections on loans  154,654   167,036 
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES  80,118   (72,488)
       
CASH FLOWS FROM FINANCING ACTIVITIES        
Proceeds from lines of credit  27,959   58,204 
Repayments on lines of credit  (49,751)   
Proceeds from repurchase agreements  19,055   14,028 
Repayments of repurchase agreements  (11,808)  (30,100)
(Repayment of) proceeds from mortgage payable  (79)  331 
Dividends paid on Common Shares  (16,507)  (21,933)
Dividends paid on Series A Preferred Stock  (4,304)  (3,795)
Proceeds from issuance of common shares, net of expenses  2,050   20,450 
Repurchase of Common Shares  (1,489)  (226)
Proceeds from issuance of Series A Preferred Stock, net of expenses  5,706   2,563 
Repayment of notes payable  (58,283)   
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES  (87,451)  39,522 
       
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  5,468   (11,115)
       
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD  12,598   23,713 
       
CASH AND CASH EQUIVALENTS - END OF PERIOD $18,066  $12,598 

FAQ

What caused Sachem Capital's (SACH) significant net loss in 2024?

The net loss was primarily due to a $21.3 million increase in provision for credit losses and reduced revenue from fewer loan originations.

How much did SACH's revenue decline in 2024 compared to 2023?

Total revenue declined from $64.7 million in 2023 to $57.5 million in 2024, a decrease of $7.2 million.

What is SACH's current dividend payment for common shareholders in 2025?

SACH declared a quarterly dividend of $0.05 per common share, payable March 31, 2025.

How much did Sachem Capital's total assets decrease in 2024?

Total assets decreased by $128.9 million, from $620.9 million in 2023 to $492.0 million in 2024.

What is Sachem Capital's (SACH) total debt position as of December 31, 2024?

Total indebtedness was $301.2 million, including $226.5 million in notes payable and $74.7 million in credit facilities and mortgage loan.
Sachem Capital

NYSE:SACH

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49.91M
45.01M
5.8%
22.48%
3.52%
REIT - Mortgage
Real Estate Investment Trusts
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United States
BRANFORD