Sachem Capital Reports Full Year 2024 Results
Rhea-AI Summary
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.
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
Total operating costs and expenses for 2024 were
Net loss attributable to common shareholders for 2024 was
Balance Sheet
Total assets as of the year ended December 31, 2024 were
Total indebtedness at year-end was
Total shareholders’ equity at year-end 2024 was
Dividends
Over the course of 2024, the Company paid an aggregate of
On February 24, 2025, the Company declared a dividend of
On March 6, 2025, the Company declared 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 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 | 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 | 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 | $ | 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?
How much did SACH's revenue decline in 2024 compared to 2023?
What is SACH's current dividend payment for common shareholders in 2025?
How much did Sachem Capital's total assets decrease in 2024?
What is Sachem Capital's (SACH) total debt position as of December 31, 2024?
