BRANFORD, Conn., June 12, 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 that Sachem Capital Corporation Holdings, LLC, an indirect, wholly-owned subsidiary of the Company, consummated a private placement of $100 million aggregate principal amount of five-year Senior Secured Notes due June 11, ...

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Revenue and Income - Total revenue for Q1 2025 was $11.4 million, down 32.5% from $16.8 million in Q1 2024[4] - Net loss attributable to common shareholders for Q1 2025 was $213,000, or $0.00 per share, compared to net income of $3.6 million, or $0.08 per share in Q1 2024[6] - Net income for the three months ended March 31, 2025, was $904 million, a decrease of 80.7% compared to $4,670 million in the same period of 2024[24] Operating Costs and Expenses - Total operating costs and expenses decreased to $10.4 million in Q1 2025 from $12.5 million in Q1 2024, primarily due to reductions in interest and amortization expenses[5] Assets and Equity - Total assets as of March 31, 2025, were $491.4 million, a slight decrease from $492.0 million as of December 31, 2024[7] - Total shareholders' equity decreased to $179.3 million at March 31, 2025, from $181.7 million at year-end 2024[9] - Book value per common share decreased to $2.57 at March 31, 2025, from $2.64 at year-end 2024[9] Cash Flow and Investments - Net cash provided by operating activities decreased significantly to $191 million from $4,217 million year-over-year[24] - Net cash provided by investing activities increased to $5,747 million, up from $4,319 million in the previous year[24] - Cash and cash equivalents at the end of the period rose to $24,414 million, compared to $18,413 million at the end of the same period last year[24] - Proceeds from lines of credit amounted to $36,100 million, a substantial increase from $460 million in the prior year[24] - The company made investments totaling $4,223 million in limited liability companies, compared to $3,186 million in the same period last year[24] Dividends and Debt - The company paid a dividend of $0.05 per share to common shareholders on March 31, 2025[12] - Dividends paid on common shares decreased to $2,363 million from $5,144 million year-over-year[24] - Total indebtedness at quarter-end was $305.6 million, including $227.0 million of notes payable[8] Loan Portfolio and Capital Management - The company remains focused on managing its loan portfolio and protecting capital while seeking quality investment opportunities[3] - Principal collections on loans were $47,742 million, down from $51,398 million in the same period last year[24] Losses and Adjustments - The company reported a loss on sale of equity securities of $125 million, compared to a gain of $397 million in the previous year[24] - The total adjustments and operating changes resulted in a negative impact of $713 million, compared to a negative impact of $453 million in the previous year[24] Membership Investments - Income from preferred membership limited liability company investments increased approximately 71.7% compared to Q1 2024[4]

Core Viewpoint - Sachem Capital Corp. reported financial results for Q1 2025, indicating stability despite challenges in the real estate market, with a focus on managing its loan portfolio and capital allocation [2][3]. Financial Performance - Total revenue for Q1 2025 was $11.4 million, down from $16.8 million in Q1 2024, primarily due to fewer loan originations and an increase in nonperforming loans [3]. - Operating costs decreased to $10.4 million in Q1 2025 from $12.5 million in the same quarter last year, attributed to reductions in interest, amortization, and employee benefits [4]. - The net loss attributable to common shareholders was $213,000, or $0.00 per share, compared to a net income of $3.6 million, or $0.08 per share, in Q1 2024 [5]. Balance Sheet Overview - Total assets as of March 31, 2025, were $491.4 million, slightly down from $492.0 million at the end of 2024 [6]. - Total liabilities increased to $312.1 million from $310.3 million at year-end 2024 [6]. - Total shareholders' equity decreased to $179.3 million from $181.7 million at year-end 2024, with a book value per common share of $2.57 [8]. Dividend Information - The company paid a dividend of $0.484375 per share to Series A Preferred Stockholders and $0.05 per share to common shareholders in Q1 2025 [10][11]. - As a Real Estate Investment Trust (REIT), the company intends to distribute at least 90% of taxable income to shareholders [9]. Company Profile - Sachem Capital Corp. specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property, primarily offering short-term loans to real estate investors [15].

Loan Portfolio - As of March 31, 2025, the company disbursed loans totaling $41.308 million and repaid loans amounting to $47.742 million[109] - The gross principal amount of loans held for investment was $367.860 million, with a weighted average contractual interest rate of 12.88%[109] - The loan portfolio included 143 loans, with 68 loans (47.6%) amounting to $27.410 million classified as $1,000,000 or less[112] - The primary markets for the company's loans were Connecticut (51.0%), Florida (13.3%), and New York (14.7%) as of March 31, 2025[112] - The company’s loan portfolio included loans ranging in size from $35,000 to $42.8 million[112] - Residential properties accounted for 52.4% of the aggregate gross principal amount of loans held for investment as of March 31, 2025[113] - The allowance for credit losses as of March 31, 2025, was $18.122 million, representing 4.9% of the aggregate gross principal amount[115] - The company recorded a non-performing loan reserve of $6.106 million for loans in foreclosure, representing 25.6% of the respective principal amount[115] Financial Performance - Total revenue for Q1 2025 was $11.4 million, a decrease of $5.4 million or 31.9% compared to $16.8 million in Q1 2024[119] - Total operating expenses for Q1 2025 were $10.4 million, down $2.1 million or 16.9% from $12.5 million in Q1 2024[120] - Net loss attributable to common shareholders for Q1 2025 was $0.2 million, or $0.00 per share, compared to net income of $3.6 million, or $0.08 per share, in Q1 2024[122] Balance Sheet - Total assets at March 31, 2025 were $491.4 million, a slight decrease of $0.6 million or 0.1% from $492.0 million at December 31, 2024[125] - Total liabilities increased to $312.1 million as of March 31, 2025, up $1.8 million or 0.6% from $310.3 million at December 31, 2024[126] - Total shareholders' equity decreased to $179.3 million as of March 31, 2025, down $2.3 million or 1.3% from $181.7 million at December 31, 2024[127] - Book value per common share decreased to $2.57 as of March 31, 2025, down $0.07 from $2.64 at December 31, 2024[124] Cash Flow and Financing - Cash and cash equivalents increased to $24.4 million as of March 31, 2025, up $6.0 million or 30.3% from $18.4 million at the end of Q1 2024[129] - SN Holdings borrowed $36.1 million under the new Credit Agreement as of March 31, 2025, with a principal payment of $9.9 million made on April 1, 2025[132] - The company anticipates sufficient cash flows from operations to fund its operations for the next 12 months[130] Real Estate Activities - The company may engage in opportunistic real estate purchases and investments apart from its lending activities[104] - The company owned 20 properties as of March 31, 2025, with a total carrying value of $18.865 million[116]

Company Announcement - Sachem Capital Corp. will release its first quarter 2025 financial results before market open on May 1, 2025 [1] - A webcast and conference call to discuss the results will be held on May 1, 2025, at 8:00 a.m. Eastern Time [1] Webcast and Conference Call Details - The webcast will be available on the Investors section of the Company's website, and participants are advised to register at least 15 minutes prior to the start time [2] - For the telephone conference call, domestic participants can dial 1-877-704-4453, while international participants can call 1-201-389-0920 [3] - Conference call playback will be available until May 15, 2025, with specific numbers provided for domestic and international access [3] Company Overview - 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 [3] - The Company offers short-term secured, nonbanking loans to real estate investors for various property-related activities, with a focus on a conservative loan to value ratio [3] - Loans are secured by first mortgage liens on real estate and are personally guaranteed by the principal(s) of the borrower, with the Company also engaging in opportunistic real estate purchases [3]

Financial Performance - Total revenue for 2024 was $57.5 million, a decrease of 11.2% from $64.7 million in 2023[208]. - Net loss attributable to common shareholders for 2024 was $43.9 million, compared to a net income of $12.1 million in 2023, resulting in a net loss per share of $0.93[211][212]. - Total operating costs and expenses increased by 51.5% to $75.3 million in 2024, primarily due to a $21.3 million increase in provision for credit losses[209]. Assets and Liabilities - Total assets decreased by 20.8% to $492.0 million at December 31, 2024, down from $620.9 million at the end of 2023[215]. - Total liabilities decreased by 20.6% to $310.3 million at December 31, 2024, primarily due to the repayment of $58.2 million in unsecured notes[216]. - Total shareholders' equity decreased by 21.0% to $181.7 million at December 31, 2024, attributed to a $22.0 million loss on the sale of loans and $26.9 million provisions related to loans[217]. - Book value per common share decreased to $2.64 in 2024, down from $3.83 in 2023, a decrease of $1.19[214]. Cash Flow and Dividends - The company declared and paid total dividends of $11.4 million in 2024[206]. - Cash and cash equivalents increased by 30.3% to $18.1 million at December 31, 2024, compared to $12.6 million at the beginning of the year[220]. - A dividend of $0.484375 per share on the 7.75% Series A Preferred Stock was declared, payable on March 31, 2025[227]. - A quarterly dividend of $0.05 per Common Share was authorized, payable on March 31, 2025[228]. Credit Facilities and Indebtedness - The new Needham Credit Facility has a committed amount of $50 million, with a maturity date of March 2, 2026, and an option to extend for one year if covenants are met[223]. - The company repaid the entire outstanding balance of the old credit facility, amounting to $39.6 million, and drew $36.1 million on the new facility, reducing outstanding indebtedness by $3.5 million[225]. - As of March 20, 2025, the company's outstanding indebtedness is projected to be $26.2 million after a principal payment of $9.9 million due on April 1, 2025[225]. Other Obligations - The company identified an over issuance of 362,915 restricted Common Shares, which remain unvested and restricted[230]. - Total contractual obligations as of December 31, 2024, amount to $54.248 million, with $40.597 million due within one year[234].

Loan Agreement Details - The Borrower, SN Holdings, LLC, has entered into a revolving line of credit agreement to support its mortgage finance activities and working capital needs[11]. - The agreement is dated March 20, 2025, and involves multiple parties including Sachem Capital Corp. as the Guarantor and Needham Bank as the Administrative Agent[9]. - The agreement includes provisions for interest charges, borrowing procedures, and optional loan prepayments[2]. - The agreement outlines conditions precedent for the revolving loans, ensuring that the Borrower meets specific requirements before funds are disbursed[4]. - The agreement includes confidentiality provisions to protect sensitive information shared among the parties[13]. - The Maximum Revolving Loan Commitment is set at $50 million[73]. - The initial Expiration Date for the loan is March 2, 2026, with a possible extension to March 2, 2027, subject to conditions[53]. - The Facility Unused Fee is 0.25% per annum on the average daily amount exceeding the principal balance under the Revolving Line of Credit[54]. - The Borrowing Request must be submitted to the Administrative Agent for a Revolving Loan[26]. - Each Revolving Loan will accrue interest at the greater of the Prime Rate or the Floor, calculated on a 360-day basis[107]. - The Borrower can borrow, repay, and re-borrow amounts under the Revolving Line of Credit without penalty prior to the Expiration Date[111]. Financial Definitions and Metrics - The Borrower's Adjusted EBITDA is defined as consolidated net income plus interest expense, tax expense, depreciation, and other specified non-cash expenses[15]. - Asset Coverage is defined as the ratio of the Borrower's total assets to total Debt, expressed as a percentage, excluding certain liabilities[20]. - The Borrowing Base is defined as fifty percent (50%) of the outstanding principal balance of the Eligible Mortgage Loans[25]. - The definition of Debt includes all indebtedness for borrowed money and obligations evidenced by notes, bonds, or similar instruments[39]. - The term "Change in Control" refers to the Guarantor no longer being subject to reporting requirements under the Securities Exchange Act of 1934[28]. - The term "Event of Default" is defined in Section 8 of the agreement[50]. - The Default Rate is set at five percent (5.0%) per annum, in addition to the applicable interest rate[41]. - The definition of "Material Adverse Effect" includes significant impacts on financial condition, business prospects, and legal enforceability[72]. - The definition of "Obligations" includes all debts and liabilities arising under Loan Documents, including Hedging Obligations[81]. - The term "Hedging Obligations" encompasses all liabilities under any Hedging Contract entered into by the Borrower[62]. Compliance and Reporting Requirements - The Loan Parties are collectively responsible for compliance with various financial covenants, including minimum liquidity and debt service coverage ratios[7]. - The Loan Parties must provide regular financial statements and reports to the lenders as part of their affirmative covenants[5]. - The Borrower must comply with financial covenants for any unsecured debt incurred, ensuring no Event of Default exists[85]. - The Borrower is required to maintain compliance with the financial covenants for the most recently completed Fiscal Quarter[85]. - Each Loan Party must be in material compliance with all covenants and agreements set forth in the Loan Documents[199]. - Each Loan Party has filed all required tax returns and paid all taxes due, with adequate reserves for accrued but not yet payable taxes[170]. - Each Loan Party possesses all necessary permits and licenses for its business operations, with no material adverse effects from any non-compliance[171]. - Each Loan Party is in compliance with all applicable laws, with no events of default or material judgments against them[169][173]. Borrower Obligations - The Borrower must provide an appraisal and environmental due diligence for Mortgage Loans exceeding $350,000[44]. - The Borrower must maintain a title insurance policy that reflects a first priority lien on the related Mortgaged Property[44]. - The Borrower must ensure that no Event of Default exists at the time of submitting a Borrowing Request[106]. - The Borrower is required to deliver Collateral Assignment Documents if the Assigned Loans balance falls below the required threshold[113]. - The Borrower must execute and deliver Notes to evidence the Lender's Share of the Revolving Loans[146]. - The Borrower must deliver an executed Borrowing Base Certificate dated no more than 31 days prior to the Borrowing Request[198]. - The Borrower will use proceeds from the Revolving Loan for the origination or acquisition of Mortgage Loans[182]. - The Borrower must prepay any excess principal balance over the Maximum Revolving Loan Amount within two business days[109]. - The Borrower is required to reimburse the Administrative Agent for legal fees and expenses incurred, with a cap of $20,000[134]. - All payments made by the Borrower must be free of any deductions for taxes, and the Borrower agrees to indemnify the Lenders for any taxes levied[135]. - The Borrower is obligated to maintain records of Collateral at specified locations or notify the Administrative Agent of any changes[115]. Guarantor Responsibilities - The Guarantor unconditionally guarantees the punctual payment of all Obligations, including principal and interest[121]. - The Guarantor guarantees that the Guaranteed Obligations will be paid in accordance with the terms of the Agreement, with liability being unlimited, irrevocable, absolute, and unconditional[122]. - The Guarantor waives any defenses related to the validity or enforceability of the Agreement, including any changes in payment terms or amendments[123]. - The Guarantor will not exercise subrogation rights until Payment in Full is achieved, and any amounts received prior to that must be held in trust for the Lender[127]. - The Guaranty is a continuing guaranty and remains in effect until Payment in Full[129]. Administrative Agent Functions - The Administrative Agent has the authority to file proofs of claim and manage the loan agreements among lenders[10]. - The Administrative Agent has the authority to file UCC financing statements to perfect the security interests granted[116]. - The Administrative Agent reviews and reconciles all activities under the Revolving Line of Credit weekly, notifying lenders of any discrepancies by noon on each Settlement Date[148]. - Monthly interest payments to lenders are made around the fifth day of each month, based on their respective shares of the aggregate interest received[149]. - During a Continuing Event of Default, funds are allocated first to fees and expenses incurred by the Administrative Agent, then to lenders based on their shares of obligations[150]. - If a lender fails to fund its share of a Revolving Loan, the Administrative Agent may assume the lender has made the funds available unless notified otherwise by noon on the funding date[152]. - In the event of insufficient funds, payments are applied first to interest and fees, then to principal on Revolving Loans, ratably among lenders[157]. - Defaulting lenders have restricted rights regarding amendments and will not receive their share of Facility Unused Fees during the default period[159]. - The obligations of lenders to make Revolving Loans are several, meaning the failure of one lender does not relieve others of their obligations[155].

Financial Data and Key Metrics Changes - Revenue totaled $57.5 million, including $43.2 million in interest income, $8.6 million in fees from loans, and $5.2 million from LLC partnership investments [29] - Operating and other costs totaled $97.1 million, resulting in a GAAP net loss of $39.6 million, and a net loss available to common shareholders of $43.9 million after preferred stock dividends [30][31] - Book value at year-end 2024 was $2.64 per share, down from $3.83 per share in the prior year, reflecting a year-over-year change of 1.19% [36] Business Line Data and Key Metrics Changes - The non-performing loan book grew year-over-year by $18.3 million to $102.9 million, with $25.6 million gross in foreclosures or deeds in lieu [8][51] - Loans held in the investment portfolio included 157 loans with a gross principal value of $377 million and a weighted average contractual interest rate of 12.53% [13] - The company funded approximately $134 million in loans, modifications, and extensions during the year [40] Market Data and Key Metrics Changes - The company has diversified its business model, with significant investments in multifamily housing through partnerships, generating approximately $5.1 million in revenue from these investments [19] - The lending environment remains challenging due to restrictive bank lending policies and interest rate uncertainty, impacting borrowers' ability to secure financing [7] Company Strategy and Development Direction - The company aims to selectively build a pipeline of development projects with minimized completion risk and potential asset appreciation [16] - The strategic focus includes enhancing underwriting guidelines and construction service policies through its subsidiary Urbane New Haven [15] - The company is pursuing a more offensive strategy to seek affordable capital while protecting liquidity in the current tight funding environment [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial position moving into 2025, highlighting low leverage compared to peers and the ability to satisfy upcoming notes due [22][24] - The company anticipates challenges in the industry but remains optimistic about refilling the loan pipeline and funding accretive projects [47] - Management noted that the resolution of non-performing loans is ongoing, with significant progress made during 2024 [51] Other Important Information - The company successfully resolved $25.1 million of net unpaid principal balance (UPB) for $31.1 million in cash during 2024 [26] - The company has approximately $54 million in unfunded commitments, with expectations for funding to occur ratably over the year [70] Q&A Session Summary Question: What is the balance for the loans in non-accrual and foreclosure status as of 4Q? - Non-performing loans are approximately $100 million as of December 31, with significant progress made in resolving these loans [51][52] Question: Can you provide specifics on the loan sales? - The total UPB in the loan sale was $55.8 million, comprising 32 loans, with an average realization of around 65% [79] Question: What is the expectation on the timing of sales of REO or held-for-sale loans? - The company expects to see REO assets start to fall off the books quickly, with buyers available at reasonable prices [84]

Company Performance - Sachem Capital Corp. reported a quarterly loss of $0.33 per share, which was better than the Zacks Consensus Estimate of a loss of $0.43, but worse than a loss of $0.05 per share a year ago, indicating a 560% increase in loss year-over-year [1] - The company posted revenues of $10.77 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 18.45%, and down from $16.91 million in the same quarter last year [2] - Over the last four quarters, Sachem Capital has surpassed consensus EPS estimates only once [2] Stock Performance - Sachem Capital shares have declined approximately 14.8% since the beginning of the year, compared to a decline of 2.9% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $13.91 million, and for the current fiscal year, it is $0.26 on revenues of $56.06 million [7] Industry Outlook - The Financial - Miscellaneous Services industry, to which Sachem Capital belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Sachem Capital's stock performance [5]