Sachem Capital Reports Second Quarter 2024 Results – Reports Quarterly Revenues of $15.1 Million
Sachem Capital Corp. (NYSE American: SACH), a real estate lender, reported its Q2 2024 financial results. Total revenue was $15.1 million, down from $16.3 million in Q2 2023. The company experienced a net loss of $4.1 million, or $0.09 per share, compared to a net income of $4.8 million, or $0.11 per share, in Q2 2023. This shift was primarily due to an $8.5 million provision for credit losses. Despite challenges, Sachem maintained a disciplined approach, reducing total indebtedness by $33.8 million. Total assets stood at $586.3 million, with net mortgages receivable at $485.7 million. The company paid a quarterly dividend of $0.08 per share and intends to continue operating as a REIT.
Sachem Capital Corp. (NYSE American: SACH), un prestatore immobiliare, ha riportato i risultati finanziari per il secondo trimestre del 2024. Il fatturato totale è stato di 15,1 milioni di dollari, in calo rispetto ai 16,3 milioni di dollari del secondo trimestre del 2023. L'azienda ha subito una perdita netta di 4,1 milioni di dollari, ovvero 0,09 dollari per azione, rispetto a un reddito netto di 4,8 milioni di dollari, o 0,11 dollari per azione, nel secondo trimestre del 2023. Questo cambiamento è stato principalmente dovuto a una riserva di 8,5 milioni di dollari per perdite su crediti. Nonostante le difficoltà, Sachem ha mantenuto un approccio disciplinato, riducendo l'indebitamento totale di 33,8 milioni di dollari. Le attività totali ammontavano a 586,3 milioni di dollari, con crediti ipotecari netti pari a 485,7 milioni di dollari. L'azienda ha pagato un dividendo trimestrale di 0,08 dollari per azione e intende continuare a operare come REIT.
Sachem Capital Corp. (NYSE American: SACH), un prestamista inmobiliario, reportó sus resultados financieros del segundo trimestre de 2024. Los ingresos totales fueron de 15,1 millones de dólares, una disminución en comparación con los 16,3 millones de dólares del segundo trimestre de 2023. La compañía experimentó una pérdida neta de 4,1 millones de dólares, o 0,09 dólares por acción, en comparación con una ganancia neta de 4,8 millones de dólares, o 0,11 dólares por acción, en el segundo trimestre de 2023. Este cambio se debió principalmente a una provisión de 8,5 millones de dólares para pérdidas crediticias. A pesar de los desafíos, Sachem mantuvo un enfoque disciplinado, reduciendo la deuda total en 33,8 millones de dólares. Los activos totales alcanzaron los 586,3 millones de dólares, con préstamos hipotecarios netos de 485,7 millones de dólares. La empresa pagó un dividendo trimestral de 0,08 dólares por acción y tiene la intención de seguir operando como un REIT.
Sachem Capital Corp. (NYSE American: SACH), 부동산 대출기관이 2024년 2분기 재무 결과를 보고했습니다. 총 수익은 1,510만 달러로, 2023년 2분기의 1,630만 달러에서 감소했습니다. 회사는 410만 달러의 순손실을 기록했으며, 이는 주당 0.09달러에 해당하고, 2023년 2분기의 순이익 480만 달러, 또는 주당 0.11달러와 비교됩니다. 이러한 변화는 주로 850만 달러의 신용 손실 충당금 때문이었습니다. 어려움에도 불구하고 Sachem은 총 부채를 3,380만 달러 감소시키면서 징계된 접근을 유지했습니다. 총 자산은 5억 8,630만 달러로, 순 담보 대출이 4억 8,570만 달러에 달했습니다. 회사는 주당 0.08달러의 분기 배당금을 지급했으며, REIT으로 운영을 계속할 계획입니다.
Sachem Capital Corp. (NYSE American: SACH), un prêteur immobilier, a publié ses résultats financiers pour le deuxième trimestre de 2024. Les revenus totaux se sont élevés à 15,1 millions de dollars, en baisse par rapport à 16,3 millions de dollars au deuxième trimestre 2023. L'entreprise a subi une perte nette de 4,1 millions de dollars, soit 0,09 dollar par action, comparativement à un bénéfice net de 4,8 millions de dollars, soit 0,11 dollar par action, au deuxième trimestre 2023. Ce changement est dû principalement à une provision de 8,5 millions de dollars pour pertes de crédit. Malgré les difficultés, Sachem a maintenu une approche disciplinée, réduisant son endettement total de 33,8 millions de dollars. Les actifs totaux s'élevaient à 586,3 millions de dollars, avec des créances hypothécaires nettes de 485,7 millions de dollars. L'entreprise a versé un dividende trimestriel de 0,08 dollar par action et prévoit de continuer à opérer en tant que REIT.
Sachem Capital Corp. (NYSE American: SACH), ein Immobilienkreditgeber, hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Der Gesamtumsatz betrug 15,1 Millionen Dollar, ein Rückgang von 16,3 Millionen Dollar im zweiten Quartal 2023. Das Unternehmen verzeichnete einen Nettoverlust von 4,1 Millionen Dollar, oder 0,09 Dollar pro Aktie, im Vergleich zu einem Nettogewinn von 4,8 Millionen Dollar, oder 0,11 Dollar pro Aktie, im zweiten Quartal 2023. Diese Verschiebung war hauptsächlich auf eine Rückstellung für Kreditverluste in Höhe von 8,5 Millionen Dollar zurückzuführen. Trotz der Herausforderungen verfolgte Sachem einen disziplinierten Ansatz und reduzierte die Gesamtverschuldung um 33,8 Millionen Dollar. Die Gesamtaktiva betrugen 586,3 Millionen Dollar, mit netto ausstehenden Hypotheken in Höhe von 485,7 Millionen Dollar. Das Unternehmen zahlte eine vierteljährliche Dividende von 0,08 Dollar pro Aktie und beabsichtigt, weiterhin als REIT zu operieren.
- Reduced total indebtedness by $33.8 million, including $23.7 million repayment of unsecured unsubordinated notes
- Maintained quarterly dividend of $0.08 per share
- Total shareholders' equity increased slightly to $230.2 million from $230.1 million at year-end 2023
- Total revenue decreased to $15.1 million from $16.3 million in Q2 2023
- Net loss of $4.1 million ($0.09 per share) compared to net income of $4.8 million ($0.11 per share) in Q2 2023
- $8.5 million provision for credit losses compared to $94,000 in Q2 2023
- Fee income from loans down approximately 37.2% compared to Q2 2023
- Total assets decreased to $586.3 million from $625.5 million at year-end 2023
Insights
Sachem Capital's Q2 2024 results reveal a challenging quarter with some concerning trends.
The company's deleveraging efforts are notable, with a
Sachem's Q2 results reflect the broader challenges in the real estate lending market. The
However, the company's strategic focus on balance sheet strength is prudent in this environment. The reduction in total indebtedness by
Sachem Capital's Q2 performance indicates a strategic shift towards caution in a challenging real estate market. The company's focus on cash retention and selective lending reflects a defensive posture, likely in response to broader economic uncertainties and potential real estate market volatility.
The maintained dividend and slight increase in book value demonstrate management's commitment to shareholder value, even in a difficult operating environment. However, the significant increase in credit loss provisions warrants close monitoring, as it could signal potential future challenges in loan performance.
Looking ahead, Sachem's strategy of building its platform for 2025 growth suggests management anticipates a potential market recovery. Investors should watch for signs of improving market conditions and Sachem's ability to capitalize on new opportunities while maintaining its strengthened balance sheet position.
- Company to Host Webcast and Conference Call -
BRANFORD, Conn., Aug. 14, 2024 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH), a real estate lender that specializes 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 second quarter ended June 30, 2024.
John Villano, CPA, Sachem Capital’s Chief Executive Officer, stated: “During the second quarter, we maintained our disciplined approach across our business by retaining cash, being selective with our lending, and exercising prudence in our borrowing. Specifically, in the second quarter we reduced the total amount of our indebtedness by
Results of operations for quarter ended June 30, 2024
Total revenue for the quarter was
Total operating costs and expenses for the quarter ended June 30, 2024 were
Net loss attributable to common shares for the three months ended June 30, 2024 was
Balance Sheet
Total assets were
Total indebtedness at June 30, 2024 was
Total shareholders’ equity at June 30, 2024 rose
Dividends
On August 6, 2024, we paid a quarterly dividend of
Sachem 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 is hosting a webcast and conference call Wednesday, August 14, 2024 at 8:00 a.m. Eastern Time, to discuss in greater detail its financial results for the quarter ended June 30, 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 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 Wednesday, August 28, 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: 13746956.
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. 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 (dollars in thousands, except share data) (unaudited) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| (audited) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 10,577 | $ | 12,598 | ||||
| Investment securities (at fair value) | 1,798 | 37,776 | ||||||
| Mortgages receivable | 500,133 | 499,235 | ||||||
| Less: Allowance for credit losses | (14,405 | ) | (7,523 | ) | ||||
| Mortgages receivable, net of allowance for credit losses | 485,728 | 491,712 | ||||||
| Interest and fees receivable, net | 7,769 | 8,475 | ||||||
| Due from borrowers, net | 5,636 | 5,597 | ||||||
| Real estate owned | 3,872 | 3,462 | ||||||
| Investments in partnerships | 46,952 | 43,036 | ||||||
| Investments in rental real estate, net | 11,904 | 10,554 | ||||||
| Property and equipment, net | 3,277 | 3,373 | ||||||
| Other assets | 8,808 | 8,956 | ||||||
| Total assets | $ | 586,321 | $ | 625,539 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Liabilities: | ||||||||
| Notes payable (net of deferred financing costs of | $ | 259,913 | $ | 282,353 | ||||
| Repurchase facility | 22,993 | 26,461 | ||||||
| Mortgage payable | 1,042 | 1,081 | ||||||
| Lines of credit | 55,000 | 61,792 | ||||||
| Accrued dividends payable | — | 5,144 | ||||||
| Accounts payable and accrued liabilities | 2,800 | 2,322 | ||||||
| Advances from borrowers | 8,893 | 10,998 | ||||||
| Below market lease intangible | 665 | 665 | ||||||
| Deferred revenue | 4,847 | 4,647 | ||||||
| Total liabilities | 356,153 | 395,463 | ||||||
| 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; 2,206,128 and 2,029,923 shares of Series A Preferred Stock issued and outstanding at June 30, 2024 and December 31, 2023, respectively | $ | 2 | $ | 2 | ||||
| Common shares - $.001 par value; 200,000,000 shares authorized; 47,547,051 and 46,765,483 issued and outstanding at June 30, 2024 and December 31, 2023 | 48 | 47 | ||||||
| Additional paid-in capital | 255,928 | 249,826 | ||||||
| Accumulated other comprehensive income | — | 316 | ||||||
| Accumulated deficit | (25,810 | ) | (20,115 | ) | ||||
| Total shareholders’ equity | 230,168 | 230,076 | ||||||
| Total liabilities and shareholders’ equity | $ | 586,321 | $ | 625,539 | ||||
| SACHEM CAPITAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (dollars in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Interest income from loans | $ | 11,754 | $ | 11,898 | $ | 24,395 | $ | 22,882 | ||||||||
| Fee income from loans | 2,083 | 3,319 | 4,699 | 5,489 | ||||||||||||
| Income from partnership investments | 1,217 | 1,006 | 2,413 | 1,556 | ||||||||||||
| Other investment income | 70 | 34 | 386 | 633 | ||||||||||||
| Other income | 22 | 16 | 57 | 30 | ||||||||||||
| Total revenues | 15,146 | 16,273 | 31,950 | 30,590 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Interest and amortization of deferred financing costs | 6,973 | 7,139 | 14,442 | 14,012 | ||||||||||||
| Compensation and employee benefits | 1,365 | 1,562 | 3,308 | 3,342 | ||||||||||||
| General and administrative expenses | 1,258 | 1,317 | 2,496 | 2,215 | ||||||||||||
| Provision for credit losses related to loans | 8,503 | 94 | 9,868 | 197 | ||||||||||||
| Other expenses | 362 | 213 | 866 | 297 | ||||||||||||
| Total operating expenses | 18,461 | 10,325 | 30,980 | 20,063 | ||||||||||||
| Income before other income (loss) | (3,315 | ) | 5,948 | 970 | 10,527 | |||||||||||
| Other income (loss) | ||||||||||||||||
| Impairment loss | (77 | ) | (413 | ) | (77 | ) | (413 | ) | ||||||||
| Gain (loss) on sale of real estate and property and equipment, net | 275 | (21 | ) | 264 | 127 | |||||||||||
| Gain on equity securities | 61 | 184 | 458 | 577 | ||||||||||||
| Total other income (loss), net | 259 | (250 | ) | 645 | 291 | |||||||||||
| Net income (loss) | (3,056 | ) | 5,698 | 1,615 | 10,818 | |||||||||||
| Preferred stock dividend | (1,068 | ) | (925 | ) | (2,091 | ) | (1,850 | ) | ||||||||
| Net income (loss) attributable to common shareholders | $ | (4,124 | ) | $ | 4,773 | $ | (476 | ) | $ | 8,968 | ||||||
| Basic earnings (loss) per common share | $ | (0.09 | ) | $ | 0.11 | $ | (0.01 | ) | $ | 0.21 | ||||||
| Diluted earnings (loss) per common share | $ | (0.09 | ) | $ | 0.11 | $ | (0.01 | ) | $ | 0.21 | ||||||
| Basic weighted average common shares outstanding | 47,504,875 | 43,844,285 | 47,415,630 | 43,321,303 | ||||||||||||
| Diluted weighted average common shares outstanding | 47,504,875 | 43,844,285 | 47,415,630 | 43,321,303 | ||||||||||||
| SACHEM CAPITAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (dollars in thousands) | ||||||||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income | $ | 1,615 | $ | 10,818 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Amortization of deferred financing costs and bond discount | 1,275 | 1,225 | ||||||
| Depreciation expense | 189 | 109 | ||||||
| Stock-based compensation | 437 | 396 | ||||||
| Provision for credit losses related to loans | 9,868 | 197 | ||||||
| Impairment Loss | 77 | 413 | ||||||
| (Gain) on sale of real estate and property and equipment, net | (264 | ) | (127 | ) | ||||
| (Gain) on equity securities | (458 | ) | (577 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Interest and fees receivable, net | 411 | (1,456 | ) | |||||
| Other assets | 80 | (700 | ) | |||||
| Due from borrowers, net | (624 | ) | (1,521 | ) | ||||
| Accounts payable and accrued liabilities | 478 | 153 | ||||||
| Deferred revenue | 200 | 455 | ||||||
| Advances from borrowers | (2,105 | ) | 2,694 | |||||
| Total adjustments | 9,564 | 1,261 | ||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 11,179 | 12,079 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of investment securities | (7,767 | ) | (18,347 | ) | ||||
| Proceeds from the sale of investment securities | 43,964 | 6,560 | ||||||
| Purchase of interests in investment partnerships, net | (3,916 | ) | (4,568 | ) | ||||
| Proceeds from sale of real estate owned | 1,403 | 191 | ||||||
| Acquisitions of and improvements to real estate owned, net | — | (180 | ) | |||||
| Purchases of property and equipment | (26 | ) | (722 | ) | ||||
| Improvements in investment in rental real estate | (1,424 | ) | — | |||||
| Principal disbursements for mortgages receivable | (84,328 | ) | (114,468 | ) | ||||
| Principal collections on mortgages receivable | 79,628 | 66,356 | ||||||
| Other assets – pre-offering costs | — | 19 | ||||||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 27,534 | (65,159 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Net proceeds from (repayment of) lines of credit | (6,792 | ) | 32,313 | |||||
| Net proceeds from (repayment of) repurchase facility | (3,468 | ) | 7,976 | |||||
| Proceeds from (repayment of) mortgage payable | (39 | ) | 899 | |||||
| Dividends paid on common shares | (10,363 | ) | (11,048 | ) | ||||
| Dividends paid on Series A Preferred Stock | (2,091 | ) | (1,850 | ) | ||||
| Proceeds from issuance of common shares, net of expenses | 2,050 | 9,689 | ||||||
| Repurchase of common shares | — | (225 | ) | |||||
| Proceeds from issuance of Series A Preferred Stock, net of expenses | 3,616 | 517 | ||||||
| Gross proceeds from (repayment of) notes payable | (23,647 | ) | 6,225 | |||||
| NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (40,734 | ) | 44,496 | |||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (2,021 | ) | (8,584 | ) | ||||
| CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD | 12,598 | 23,713 | ||||||
| CASH AND CASH EQUIVALENTS – END OF PERIOD | $ | 10,577 | $ | 15,129 | ||||
FAQ
What was Sachem Capital's revenue for Q2 2024?
How did Sachem Capital's Q2 2024 earnings compare to Q2 2023?
What was the main reason for Sachem Capital's net loss in Q2 2024?
How much did Sachem Capital reduce its total indebtedness in Q2 2024?
What dividend did Sachem Capital pay for Q2 2024?
