Sachem Capital Reports Second Quarter 2025 Results

Core Viewpoint - Sachem Capital Corp. reported a decline in total revenue and net loans held for investment for the second quarter of 2025, while also highlighting a significant reduction in operating expenses and a return to profitability compared to the same quarter in 2024 [2][4][6]. Financial Performance - Total revenue for the second quarter of 2025 was $10.8 million, down from $15.1 million in the same quarter of 2024, primarily due to lower net new origination and an increase in nonperforming loans [4][23]. - Net loans held for investment decreased to $364.5 million as of June 30, 2025, from $485.7 million a year earlier, reflecting a decline of $121.2 million [4][23]. - Other income increased by $0.5 million due to rental income from a project, which was not recorded in the prior year [4]. Operating Costs and Expenses - Total operating costs and expenses for the second quarter of 2025 were $9.7 million, significantly lower than $18.3 million in the same quarter of 2024, mainly due to a reduction in the provision for credit losses, which fell by $7.6 million or 89.1% [5][23]. - The decrease in operating expenses was partially offset by a rise in compensation and employee benefits by $0.5 million [5]. Net Income - Net income attributable to common shareholders for the second quarter of 2025 was $0.8 million, or $0.02 per share, compared to a net loss of $4.1 million, or $0.09 per share, in the same quarter of 2024 [6][23]. Balance Sheet - Total assets at the end of the quarter were $501.8 million, up from $492.0 million at the end of 2024, while total liabilities increased to $323.9 million from $310.3 million [7][9]. - Total shareholders' equity decreased to $177.9 million from $181.7 million at year-end 2024 [9]. Dividends - The company paid a dividend of $0.05 per share to common shareholders and $0.484375 per share to Series A Preferred Stock holders during the quarter [13][12]. Future Outlook - The company remains focused on prudent capital allocation and disciplined portfolio management to capitalize on high-quality lending opportunities as market conditions stabilize [3].