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]

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 [30] - 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 per common share at year-end 2024 was $2.64, down from $3.83 in 2023, reflecting a year-over-year change of $1.19 [33][37] 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 $36.3 million in foreclosure status [8][57] - The company funded approximately $134 million in loans, modifications, and extensions during the year [14] - The portfolio included 157 loans with a gross principal value of $377 million and a weighted average contractual interest rate of 12.53% [13] Market Data and Key Metrics Changes - The company has diversified its portfolio across 14 states and the District of Columbia, with over 56% of the principal balance in residential real estate [14] - Multifamily investments generated approximately $5.1 million in revenues, representing a low-risk double-digit yield [20] Company Strategy and Development Direction - The company aims to stabilize its portfolio and position itself for future opportunities by removing non-performing loans and focusing on higher quality loans [9][10] - The company is pursuing a diversification strategy through partnerships, such as with Schemcrete Capital, to enhance its real estate finance capabilities [19][48] - The company plans to selectively build a pipeline of development projects to minimize completion risk and capture market rate earnings [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 due to restrictive bank lending policies and increased construction costs, impacting borrowers' ability to refinance [7] - The company is optimistic about its financial position moving into 2025, with a focus on protecting liquidity and seeking cost-effective capital [22][49] - Management expressed confidence in resolving non-performing loans and expects to generate sufficient cash flow to meet upcoming obligations [25][50] Other Important Information - The company closed on a new credit facility with Needham Bank, providing up to $50 million of committed liquidity [21] - The board declared a quarterly common dividend of $0.05 per share, aligning future dividend declarations with preferred stock payments [46] Q&A Session Summary Question: What is the balance for the loans in non-accrual and foreclosure status as of Q4? - Non-performing loans are approximately $100 million as of December 31st, with significant progress made in resolving them [55] 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 68% [79][80] Question: What is the status of unfunded loan commitments? - Approximately $54 million in unfunded commitments exists, expected to be funded ratably over the year [72]

Core Viewpoint - Sachem Capital Corp. reported a significant decline in financial performance for the year ended December 31, 2024, primarily due to reduced loan originations and increased credit loss provisions, while expressing confidence in future growth through disciplined capital allocation and strong industry relationships [2][3][5]. Financial Performance - Total revenue for 2024 was $57.5 million, down from $64.7 million in 2023, attributed to fewer loan originations and lower interest and fee income [3]. - Interest income decreased to $43.2 million in 2024 from $49.3 million in 2023, while income from partnership investments rose by approximately 48.8% year-over-year [3]. - Total operating costs and expenses increased to $75.3 million in 2024 from $49.7 million in 2023, mainly due to a $21.3 million rise in provisions for credit losses [4]. - The net loss attributable to common shareholders for 2024 was $43.9 million, or $0.93 per share, compared to a net income of $12.1 million, or $0.27 per share, in 2023 [5]. Balance Sheet Overview - Total assets as of December 31, 2024, were $492.0 million, down from $620.9 million in 2023, primarily due to a $130.5 million reduction in loans held for investment [6]. - Total liabilities decreased to $310.3 million in 2024 from $390.8 million in 2023, largely due to the repayment of $58.3 million in unsecured notes and a $21.8 million reduction in lines of credit [6]. - Total shareholders' equity at year-end 2024 was $181.7 million, down from $230.1 million at year-end 2023, mainly due to the operational net loss and dividends paid [8]. Dividends and Shareholder Returns - In 2024, the company paid a total of $4.3 million in dividends to Series A Preferred Stockholders and $11.4 million to common shareholders [9]. - A dividend of $0.484375 per share on Series A Preferred Stock was declared on February 24, 2025, payable on March 31, 2025 [10]. - A quarterly dividend of $0.05 per common share was also declared on March 6, 2025, expected to be paid on March 31, 2025 [10]. Company Profile - Sachem Capital Corp. operates as a mortgage REIT, focusing on originating, underwriting, funding, servicing, and managing loans secured by first mortgages on real property [15]. - The company provides short-term, secured, nonbanking loans to real estate investors for property acquisition and improvement, maintaining a conservative loan-to-value ratio [15].

"If you want have better performance than the crowd, you must do things differently than the crowd" Sir John Templeton I am a value investor and I try to look for misplaced bets, bets where the odds are heavily on my side. I make my own research, reach my own conclusions and try be an independent thinker.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SACH, SCCD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opi ...

- Sets Date for Fourth Quarter 2024 Earnings Release and Conference Call -BRANFORD, Conn., March 06, 2025 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) (the “Company”) announced today that its board of directors authorized and declared a quarterly dividend of $0.05 per common share to be paid to shareholders of record as of the close of trading on the NYSE American on March 17, 2025. The dividend is payable on March 31, 2025. The Company expects to release its fourth quarter 2024 financial ...

BRANFORD, Conn., Jan. 27, 2025 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE:SACH) announced today the tax treatment for the Company's distributions on its common stock (CUSIP: 78590A109) and preferred stock (CUSIP: 78590A505) paid with respect to the calendar year ended December 31, 2024: COMMON STOCK TAX INFORMATION    Box 1aBox 1bBox 2aBox 3Box 5Record DatePayable DateRate per ShareOrdinary Dividends Per ShareQualified Dividends Per ShareTotal Capital Gain Per ShareNondividend Dist. Per ShareSection 199 ...

BRANFORD, Conn., Dec. 24, 2024 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE:SACH) reminds holders that its 6.875% unsecured, unsubordinated Notes due December 30, 2024 ("Notes"), ticker symbol "SACC," will mature on December 30, 2024, as scheduled. The company will redeem the Notes at par plus accrued and unpaid interest up to, but not including, the maturity date. Sachem expects the last trading day for the Notes will be December 27, 2024.  After the maturity date, no Notes will remain outstanding. Ticke ...