Sachem Capital Reports First Quarter 2025 Results

- Company to Host Webcast and Conference Call - May 01, 2025 07:00 ET | Source: Sachem Capital Corp. 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 $11.4 million compared to $16.8 million in the first quarter of 2024. The change in revenue was primarily due to the cumulative effect of fewer originations over the last fifteen months, resulting in a reduction in the unpaid principal balance of loans held for investment, in addition to a currently elevated amount of nonperforming loans and real estate owned. On the other hand, income from our preferred membership limited liability company investments increased approximately 71.7%, compared to the three months ended March 31, 2024. Total operating costs and expenses for the first quarter of 2025 were $10.4 million compared to $12.5 million in the same quarter last year. The change was primarily due to reductions in interest and amortization expense of $1.4 million, compensation and employee benefits, provision for credit losses related to loans, and other expenses totaling $0.8 million. Net loss attributable to common shareholders for the first quarter of 2025 was $213,000, or $0.00 per share, compared to net income attributable to common shareholders of $3.6 million, or $0.08 per share for the first quarter of 2024. Balance Sheet Total assets as of March 31, 2025 were $491.4 million compared to $492.0 million as of December 31, 2024. Total liabilities as of March 31, 2025 were $312.1 million compared to $310.3 million as of December 31, 2024. Total indebtedness at quarter-end was $305.6 million. This includes: $227.0 million of notes payable (net of $3.2 million of deferred financing costs) and $78.6 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 March 31, 2025 was $179.3 million compared to $181.7 million at year-end 2024. Book value per common share at March 31, 2025 was $2.57 compared to $2.64 at year-end 2024. The $0.07 decrease in book value is primarily due to the aggregate $3.5 million in preferred and common dividends declared and paid during this first quarter 2025. 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 90% of taxable income each year to its shareholders, and the Company intends to comply with this requirement for the current year. On March 31, 2025, the Company paid a dividend of $0.484375 per share to the holders of its Series A Preferred Stock of record on March 15, 2025. On March 31, 2025, the Company paid a dividend of $0.05 per share to its common shareholders of record on March 17, 2025. 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 $2,225 and $1,950) 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 $4,876 and $4,880) 10,974 10,970 Interest and fees receivable (net of allowance of $2,981 and $3,133) 4,281 3,768 Due from borrowers (net of allowance of $1,956 and $1,135) 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 $3,232 and $3,713) $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 - $0.001 par value; 5,000,000 shares authorized; 2,903,000 shares designated as Series A Preferred Stock; 2,306,748 shares of Series A Preferred Stock issued and outstanding at March 31, 2025 and December 31, 2024 2 2 Common Shares - $0.001 par value; 200,000,000 shares authorized; 47,310,139 and 46,965,306 issued and outstanding at March 31, 2025 and December 31, 2024, respectively 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

Sachem Capital Reports First Quarter 2025 Results

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