Sachem Capital Reports Full Year 2025 Results
Rhea-AI Summary
Sachem Capital (NYSE American: SACH) reported full-year 2025 results on March 12, 2026, highlighting stabilization of its credit profile and strengthened capital structure.
Key points include net income of $1.8M, issuance of $100.0M senior secured notes ( $90.0M drawn), reduced credit charges, and sale of a Westport office generating $19.9M net proceeds.
Positive
- Net income $1.8M vs $43.9M loss in 2024
- Issued $100.0M senior secured notes (9.875%) due 2030
- Westport property sale: ~$19.9M net proceeds; ~$4.0M gain
Negative
- Net interest income down to $11.7M from $20.5M
- Net interest margin declined 130 basis points to 3.1%
- Impairment loss on real estate owned rose to $1.1M
Key Figures
Market Reality Check
Peers on Argus
SACH was up 0.92% pre‑news, while key mortgage REIT peers were mixed: LOAN, AFCG, CHMI down, LFT flat, SEVN up. This points to a largely stock‑specific setup.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Neutral | +0.0% | Q3 revenue decline but loss narrowed sharply versus prior year. |
| Aug 05 | Q2 2025 earnings | Positive | +2.6% | Revenue down but swung to net income and maintained dividends. |
| May 01 | Q1 2025 earnings | Negative | -1.9% | Revenue dropped and quarter moved from profit to small loss. |
| Mar 27 | Full year 2024 | Negative | -9.6% | Full‑year revenue decline and large net loss versus prior profit. |
| Nov 14 | Q3 2024 earnings | Negative | -7.2% | Lower revenue and net loss driven by higher credit provisions. |
Earnings releases have generally been received in line with their tone, with negative reports seeing declines and improving quarters getting stable to positive reactions.
Over the past year, Sachem’s earnings reports showed pressure on revenue and credit quality, with 2024 marked by a large net loss and shrinking assets and book value. Through 2025, quarterly updates highlighted lower revenues but improving credit costs and a gradual return toward profitability. The new full‑year 2025 results confirm positive net income to common shareholders and continued balance sheet adjustment, extending the stabilization trend seen in prior quarters. Prior earnings days often saw modest share price declines, especially on weaker reports.
Historical Comparison
Across the last 5 earnings releases, SACH’s average 24‑hour move was -3.22%, with price reactions generally matching the underlying earnings tone.
Earnings history shows a shift from heavy 2024 losses to improving 2025 quarters, with tightening credit costs and gradual progress toward sustained profitability.
Market Pulse Summary
This announcement highlights a move from a $43.9M loss in 2024 to positive net income for common shareholders in 2025, alongside lower operating expenses and active liability management. Book value per share edged down to $2.46, and net interest margin also compressed, underscoring ongoing credit and funding‑cost challenges. Investors may monitor future earnings for trends in nonaccrual loans, loan originations, and gains on real estate dispositions, as well as the company’s ability to sustain dividends under its REIT framework.
Key Terms
net interest margin financial
nonaccrual loans financial
real estate owned financial
revolving credit facility financial
real estate investment trust financial
cumulative redeemable preferred stock financial
weighted average cost of capital financial
AI-generated analysis. Not financial advice.
- Company to Host Webcast and Conference Call -
BRANFORD, Conn., March 12, 2026 (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 year ended December 31, 2025.
John Villano, CPA, Sachem’s Chief Executive Officer, commented, “We closed 2025 with strong momentum and a continued focus on disciplined capital allocation and balance sheet strength. We’re taking decisive steps to address legacy exposures while positioning the company for meaningful value creation. As we move forward, we remain focused on originating high-quality, secured real estate loans under conservative underwriting standards, while driving profitable growth and operational excellence. With a strong balance sheet and experienced team, we believe we are well positioned to deliver attractive risk-adjusted returns and long-term shareholder value.”
2025 Year in Review
During 2025, the Company focused on stabilizing its credit profile and strengthening its capital structure following the portfolio repositioning actions taken in 2024 and 2025. Key developments during 2025 included:
- A significant reduction in credit-related charges compared to 2024, as provisioning reflected loan-specific adjustments rather than broad-based reserve recalibration.
- No comparable large-scale loan sale losses, resulting in improved earnings comparability relative to the prior year.
- Issuance of
$100.0 million ($90.0 million drawn as of December 31, 2025) of Senior Secured Notes due 2030 bearing interest at9.875% , which extended the Company’s weighted average debt maturity profile and diversified funding sources. - Reduction of certain short-term borrowings and repayment of maturing unsecured notes, decreasing near-term refinancing concentration.
- Successfully completed the sale of its office property located in Westport, Connecticut generating net cash proceeds of approximately
$19.9 million and realized a book gain of approximately$4.0 million . The Westport asset was sourced, managed, and executed through Urbane Capital, the Company’s in-house development and asset management platform. - Continued disciplined underwriting in a higher interest rate environment, resulting in moderated net loan originations and a focus on sponsor quality and collateral protection.
Results of operations for the year ended December 31, 2025
Net interest income was
The Company’s net interest margin for the year ended December 31, 2025 was
Total other income remained relatively consistent year over year at
Total operating expenses for 2025 were
- Compensation and employee benefits were
$7.6 million , an increase of$0.8 million compared to$6.8 million in 2024, reflecting strategic additions to personnel and performance-based compensation adjustments as management continues to align staffing levels with portfolio scale and operational complexity. - General and administrative expenses were
$6.5 million , a decrease of$0.3 million from$6.8 million in 2024, primarily due to reduced professional fees and a continued focus on cost management following the prior year’s market slowdown. - Impairment loss on real estate owned totaled
$1.1 million , compared to$0.5 million in 2024, representing an increase of$0.6 million related to specific property-level valuation adjustments based on updated market data and revised liquidation timelines. - Gain on sale of investments in developmental real estate, real estate owned and property and equipment, net was
$4.1 million , compared to$0.4 million in 2024, reflecting gains realized on the disposition of select real estate assets and developmental projects driven by improved value creation execution relative to carrying value and successful asset repositioning, whereas the prior year included more limited disposition activity.
Net income attributable to common shareholders for 2025 was
Balance Sheet
As of December 31, 2025, total assets were
Total indebtedness at December 31, 2025 was
Total shareholders’ equity as of December 31, 2025 was
Book value per common share
Book value per common share as of December 31, 2025, was
Dividends
The Company currently operates and qualifies as a Real Estate Investment Trust (REIT) for federal income tax purposes 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
Over the course of 2025, the Company paid an aggregate of
Investor Conference Webcast and Call
The Company is hosting a webcast and conference call Friday, March 13, 2026 at 8:00 a.m. Eastern Time, to discuss its financial results for the year ended December 31, 2025 in greater detail. 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 Friday, March 27, 2026, 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: 13757434.
About Sachem Capital Corp
Sachem 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., one to three years), 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. Loans are secured by mortgage liens on real estate and often are 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 the Company’s 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 2025 filed with the U.S. Securities and Exchange Commission on March 12, 2026, as supplemented by our subsequently filed Quarterly Reports on Form 10-Q. 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) | |||||||
| Years Ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 10,924 | $ | 18,066 | |||
| Investment securities (at fair value) | 936 | 1,517 | |||||
| Loans held for investment (net of deferred loan fees of | 375,188 | 375,041 | |||||
| Allowance for credit losses | (11,510 | ) | (18,470 | ) | |||
| Loans held for investments, net of allowances for credit losses | 363,678 | 356,571 | |||||
| Loans held for sale (net of valuation allowance of $— and | — | 10,970 | |||||
| Interest and fees receivable (net of allowance of | 4,116 | 3,768 | |||||
| Due from borrowers (net of allowance of | 6,978 | 5,150 | |||||
| Real estate owned (net of impairment of | 16,402 | 18,574 | |||||
| Investments in limited liability companies | 39,132 | 53,942 | |||||
| Investments in developmental real estate, net | 9,719 | 14,032 | |||||
| Property and equipment, net | 3,160 | 3,222 | |||||
| Other assets | 5,002 | 6,164 | |||||
| Total assets | $ | 460,047 | $ | 491,976 | |||
| Liabilities and Shareholders' Equity | |||||||
| Liabilities: | |||||||
| Notes payable (net of deferred financing costs of | $ | 171,349 | $ | 226,526 | |||
| Senior secured notes payable (net of deferred financing costs of | 86,573 | — | |||||
| Repurchase agreements | — | 33,708 | |||||
| Mortgage payable | 917 | 1,002 | |||||
| Lines of credit | 19,000 | 40,000 | |||||
| Accounts payable and accrued liabilities | 3,255 | 4,377 | |||||
| Advances from borrowers | 4,016 | 4,047 | |||||
| Below market lease intangible | — | 665 | |||||
| Total liabilities | 285,110 | 310,325 | |||||
| Commitments and contingencies – Note 14 | |||||||
| Shareholders’ equity: | |||||||
| Preferred shares - | 2 | 2 | |||||
| Common stock - | 48 | 47 | |||||
| Additional paid-in capital | 257,905 | 256,956 | |||||
| Cumulative net earnings | 41,826 | 35,518 | |||||
| Cumulative dividends paid | (124,844 | ) | (110,872 | ) | |||
| Total shareholders’ equity | 174,937 | 181,651 | |||||
| Total liabilities and shareholders’ equity | $ | 460,047 | $ | 491,976 | |||
| SACHEM CAPITAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) | |||||||
| Years Ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| Interest income from loans | $ | 32,222 | $ | 43,154 | |||
| Interest income from limited liability company investments | 4,838 | 5,127 | |||||
| Interest expense and amortization of deferred financing costs | (25,390 | ) | (27,798 | ) | |||
| Net interest income | 11,670 | 20,483 | |||||
| Provision for credit losses related to loans held for investment | (3,280 | ) | (26,928 | ) | |||
| Gain (loss) on sale of loans | 121 | (21,973 | ) | ||||
| Change in valuation allowance related to loans held for sale | 1,014 | (4,880 | ) | ||||
| Net interest income (loss) after provision for credit losses related to loans held for investment, gain (loss) on sale of loans, and changes in valuation allowance related to loans held for sale | 9,525 | (33,298 | ) | ||||
| Other income | |||||||
| Fee income from loans | 5,978 | 8,594 | |||||
| Income from limited liability company investments | 467 | 112 | |||||
| Other investment income | 141 | 391 | |||||
| Gain on investment securities | 1,566 | 178 | |||||
| Other income | 1,726 | 122 | |||||
| Total other income | 9,878 | 9,397 | |||||
| Operating expenses | |||||||
| Compensation and employee benefits | (7,661 | ) | (6,824 | ) | |||
| General and administrative expenses | (6,482 | ) | (6,841 | ) | |||
| Impairment loss on real estate owned | (1,060 | ) | (492 | ) | |||
| Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net | 4,055 | 439 | |||||
| Other expenses | (1,947 | ) | (1,952 | ) | |||
| Total operating expenses | (13,095 | ) | (15,670 | ) | |||
| Net income (loss) | 6,308 | (39,571 | ) | ||||
| Preferred stock dividends | (4,472 | ) | (4,304 | ) | |||
| Net income (loss) attributable to common shareholders | 1,836 | (43,875 | ) | ||||
| Basic and diluted earnings (losses) per Common Share | $ | 0.04 | $ | (0.93 | ) | ||
| Basic and diluted weighted average Common Shares outstanding | 46,893,413 | 47,413,012 | |||||
| SACHEM CAPITAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||
| Years Ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income (loss) | $ | 6,308 | $ | (39,571 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Amortization of deferred financing costs | 2,202 | 2,456 | |||||
| Depreciation expense | 525 | 372 | |||||
| Stock-based compensation | 840 | 863 | |||||
| Provision for credit losses related to loans held for investment | 3,280 | 26,928 | |||||
| Change in valuation allowance related to loans held for sale | (1,014 | ) | 4,880 | ||||
| (Gain) loss on sale of loans | (121 | ) | 21,973 | ||||
| Impairment loss on real estate owned | 1,060 | 492 | |||||
| Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net | (4,055 | ) | (439 | ) | |||
| Gain on extinguishment of debt | (140 | ) | — | ||||
| Gain on investment securities | (1,566 | ) | (178 | ) | |||
| Deferred loan fees revenue | 280 | (2,697 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Interest and fees receivable, net | (191 | ) | 2,476 | ||||
| Other assets | (766 | ) | 2,676 | ||||
| Due from borrowers, net | (3,681 | ) | (1,431 | ) | |||
| Accounts payable and accrued liabilities | (268 | ) | 1,041 | ||||
| Advances from borrowers | (31 | ) | (6,951 | ) | |||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,662 | 12,890 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchase of investment securities | — | (7,767 | ) | ||||
| Proceeds from the sale of investment securities | 2,147 | 43,888 | |||||
| Purchase of interests in limited liability companies | (6,447 | ) | (18,271 | ) | |||
| Proceeds from limited liability companies returns of capital | 21,257 | 7,366 | |||||
| Proceeds from sale of real estate owned | 7,511 | 1,624 | |||||
| Acquisitions of and improvements to real estate owned | — | (510 | ) | ||||
| Proceeds from sale of investments in developmental real estate and property and equipment | 19,874 | 9 | |||||
| Purchase of property and equipment | (162 | ) | (77 | ) | |||
| Improvements in investment in rental real estate | (3,216 | ) | (3,025 | ) | |||
| Principal disbursements for loans | (151,776 | ) | (134,298 | ) | |||
| Principal collections on loans | 140,162 | 190,971 | |||||
| NET CASH PROVIDED BY INVESTING ACTIVITIES | 29,350 | 79,910 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Proceeds from lines of credit | 75,840 | 27,959 | |||||
| Repayments on lines of credit | (96,840 | ) | (49,751 | ) | |||
| Proceeds from repurchase agreements | 11,693 | 19,055 | |||||
| Repayments of repurchase agreements | (45,401 | ) | (11,808 | ) | |||
| Repayment of mortgage payable | (85 | ) | (79 | ) | |||
| Dividends paid on Common Shares | (9,500 | ) | (16,508 | ) | |||
| Dividends paid on Series A Preferred Stock | (4,472 | ) | (4,304 | ) | |||
| Proceeds from issuance of Senior Secured Notes | 90,000 | — | |||||
| Payment of deferred financing costs | (3,653 | ) | — | ||||
| Proceeds from issuance of common shares, net of expenses | — | 2,049 | |||||
| Repurchase of Common Shares | — | (1,488 | ) | ||||
| Proceeds from issuance of Series A Preferred Stock, net of expenses | 109 | 5,706 | |||||
| Repayment of notes payable | (56,845 | ) | (58,163 | ) | |||
| NET CASH USED IN FINANCING ACTIVITIES | (39,154 | ) | (87,332 | ) | |||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (7,142 | ) | 5,468 | ||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 18,066 | 12,598 | |||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 10,924 | $ | 18,066 | |||
FAQ
What were Sachem Capital's net income and EPS for full-year 2025 (SACH)?
How did Sachem Capital's net interest income and margin change in 2025 (SACH)?
What capital markets action did Sachem Capital take in 2025 (SACH)?
What asset disposals did Sachem Capital complete in 2025 and what were proceeds (SACH)?
How did Sachem Capital's balance sheet and book value per share change in 2025 (SACH)?
