Financial Highlights - Net income attributable to common stockholders in 1Q 2025 was $165 million, or $070 per diluted common share[14] - Cash Available for Distribution (CAD) in 1Q 2025 was $045 per diluted common share[15] - Book Value per diluted common share increased by 15% to $1722[24] - A dividend of $050 per common share was paid for 1Q 2025[13] Portfolio Composition - The total portfolio principal was $12 billion[15] - The portfolio is composed of 85 investments[15] - The weighted average Loan-to-Value (LTV) of the portfolio is 587%[40] - The weighted average Debt Service Coverage Ratio (DSCR) of the portfolio is 146x[40] Capitalization - The debt to equity ratio was 133x as of March 31, 2025[17] - $447 million of Series B Preferred stock was raised by selling 18 million shares[17] - Outstanding Repo Financing equates to 754% advance rate on CMBS B-Piece and IO Strips Portfolio[18]

Financial Data and Key Metrics Changes - The economic return for Q1 2025 was 3%, consistent with the previous quarter, with earnings available for distribution per share at $0.72 [18][19] - Book value per share slightly declined to $19.02, a decrease of less than 1% quarter over quarter [19][22] - The common stock dividend was increased from $0.65 to $0.70 per share, reflecting earnings momentum [7][19] Business Line Data and Key Metrics Changes - The Agency portfolio saw a notional growth of $3.5 billion, driven by purchases of intermediate coupon TBAs [10][11] - The Residential Credit portfolio decreased by $340 million quarter over quarter, ending at $6.6 billion in market value [12][13] - The Mortgage Servicing Rights (MSR) portfolio remained relatively unchanged at $3.3 billion in market value [15][16] Market Data and Key Metrics Changes - Economic leverage increased modestly to 5.7 turns, remaining at the low end of the historical range [9][19] - The housing market showed signs of regional disparity, with home price appreciation slowing down due to increased inventory and affordability issues [13][60] - Inventory levels increased by 18% year over year, impacting existing home sales, which were at their lowest since February [57][58] Company Strategy and Development Direction - The company aims to maintain a conservative leverage approach amidst market volatility while focusing on agency investments due to attractive returns [17][37] - The strategic alignment with industry-leading sub-servicing partners is expected to create competitive advantages in the MSR business [15][16] - The company is optimistic about the potential for regulatory reforms that could positively impact the market dynamics [32][71] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains uncertain, with volatility expected to persist [9][17] - The outlook for the housing market is stable in the long term, supported by low delinquencies and tight underwriting standards, despite short-term pullbacks [60][61] - The company is prepared for potential market fluctuations with a diversified and actively managed portfolio [17][22] Other Important Information - The company has approximately $7.5 billion in assets available for financing, reflecting a $600 million increase compared to the previous quarter [22] - The weighted average repo days extended to 50 days, indicating a strategic shift in financing [21] Q&A Session Summary Question: Update on book value quarter to date - The book value was off roughly 3.5% as of the latest update, improving from a 4.5% decline post-Easter [25] Question: Outlook for spreads and regulatory impacts - Swap spreads have tightened due to volatility, and regulatory reforms are anticipated to positively influence market conditions [26][32] Question: Thoughts on leverage amidst spread widening - The company is balancing the opportunity to increase leverage against the risks posed by high volatility [36][37] Question: Housing price moderation and systemic risks - Housing price increases are regional, with some areas experiencing declines, but overall, the market remains stable due to strong borrower equity [60][61] Question: Agency portfolio supply-demand dynamics - Demand from fixed income funds was strong before recent volatility, with banks and REITs also showing reasonable demand [85] Question: Impact of rate and spread volatility on loan acquisitions - The company is adopting a more defensive posture in response to increased spreads, but lock volumes remain stable [90]

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].

Financial Data and Key Metrics Changes - The company reported GAAP net income attributable to common stockholders of $5.3 million or $0.04 per share for the first quarter [5] - Distributable earnings were $11.4 million or $0.09 per share, while adjusted distributable earnings were $20.1 million or $0.16 per share [5][19] - Current liquidity stands at $310 million, including $145 million in unrestricted cash [5][22] - GAAP net book value decreased to $7.92 per share from $8.08 in the previous quarter [19] - Undepreciated book value decreased to $8.75 per share from $8.89 [19] Business Line Data and Key Metrics Changes - The company received $133 million in repayments across nine loans, including five full payoffs [14] - New loan commitments totaled $182 million across five new loan originations during the quarter [14] - The loan portfolio consists of 74 investments with an average loan balance of $33 million [14] - Watch list loan exposure stands at $396 million, a reduction of $15 million quarter over quarter [18] Market Data and Key Metrics Changes - The commercial real estate (CRE) market is experiencing wider credit spreads, but lenders have not withdrawn from the market [8] - The Manhattan leasing market is recovering, with an uptick in leasing inquiries for Long Island City properties [12] - The mortgage REIT sector has seen a significant decline in valuation, with the company's stock trading at a 45% discount to its undepreciated book value [13] Company Strategy and Development Direction - The company aims to maintain its dividend while regrowing earnings and improving its balance sheet [14] - The focus is on increasing loan inquiries and evaluating new loans daily, despite challenges in refinancing [9][10] - The company is optimistic about the market dynamics and is seeing more lenders encouraging borrowers to refinance [11] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing market volatility due to tariff discussions and credit market conditions [7] - There is a concern about potential recessionary impacts, but lower interest rates could benefit borrowers seeking refinancing [31] - The company expects to maintain its dividend and aims to grow its portfolio to $3.5 billion to support this goal [46] Other Important Information - The company is in the final stages of exiting its Phoenix multifamily property and anticipates selecting a buyer soon [12] - The San Jose hotel loan remains in default, with progress being made toward foreclosure [17] Q&A Session Summary Question: What is the remaining buyback authorization? - The share repurchase program was reapproved at $50 million for the upcoming year [26] Question: What is the impact of lower rates on the portfolio and borrowers? - Lower rates are expected to help borrowers refinance, but spreads may widen, which could affect credit performance [31][32] Question: Is the company still targeting $1 billion in originations this year? - The company needs to increase its portfolio to $3.5 billion to sustain and grow its dividend, with current challenges in actionable deals [42][46] Question: Can you provide an update on the San Jose hotel property? - The asset is unlevered, and the company is awaiting resolution of the foreclosure process [54][56] Question: What is the expectation for CLO issuance? - The company plans to execute a CLO in the fourth quarter of the year, despite recent market widening [60][61]

Financial Data and Key Metrics Changes - The company reported GAAP net income attributable to common stockholders of $5.3 million or $0.04 per share for Q1 2025 [4] - Distributable earnings were $11.4 million or $0.09 per share, while adjusted distributable earnings were $20.1 million or $0.16 per share [4][18] - Current liquidity stands at $310 million, with $145 million in unrestricted cash [4][21] - GAAP net book value decreased to $7.92 per share from $8.08 in the previous quarter [18] - Undepreciated book value decreased to $8.75 per share from $8.89 [18] Business Line Data and Key Metrics Changes - The company received $133 million in repayments across nine loans, including five full payoffs [13] - New loan commitments totaled $182 million across five new loan originations during the quarter [13] - The loan portfolio consists of 74 investments with an average loan balance of $33 million [13] - Watch list loan exposure stands at $396 million, a reduction of $15 million quarter over quarter [17] Market Data and Key Metrics Changes - The commercial real estate (CRE) market is experiencing increased loan inquiries, although transaction volume remains below historic levels [7][8] - The Manhattan leasing market is recovering, with an uptick in leasing inquiries for Long Island City properties [11] - The mortgage REIT sector has seen a significant decline in valuation, with BrightSpire trading at a 45% discount to its undepreciated book value [12] Company Strategy and Development Direction - The company aims to maintain its dividend while regrowing earnings and improving its balance sheet [12] - The focus is on increasing loan originations to reach a portfolio size of $3.5 billion, which would support a return to $0.20 per share in earnings [44] - The company is navigating complex market dynamics, with a shift towards lender-driven transactions [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current environment for CRE lenders, despite market volatility and challenges in refinancing [6][7] - The company is encouraged by the progress in portfolio management, with year-to-date deployments outpacing repayments for the first time since 2022 [10] - Management highlighted the need for borrowers to refinance existing debt, indicating a strong demand for new loans [35] Other Important Information - The company has no corporate debt or final facility maturities due until 2027 [21] - Specific CECL reserves of approximately $9 million were recorded related to the resolution of a multifamily loan [19] Q&A Session Summary Question: What is the remaining buyback authorization? - The share repurchase program was reapproved at $50 million for the upcoming year [25] Question: Impact of lower rates on the portfolio and borrowers? - Lower rates are expected to help borrowers refinance, although spreads may widen [30][31] Question: Any hesitancy among borrowers regarding loan demand? - There is a significant need for refinancing, but borrowers are cautious about putting equity into properties [36] Question: Is the goal of $1 billion in originations still valid? - The company needs to increase the portfolio to $3.5 billion to sustain and grow the dividend [44] Question: Update on the San Jose hotel property? - The asset is unlevered, and the company is awaiting resolution of the foreclosure process [52] Question: Expectations for CLO issuance? - The company plans to execute a CLO in the fourth quarter of the year [58]

Financial Data and Key Metrics Changes - FBRT reported GAAP earnings of $23.7 million or $0.20 per diluted common share for Q1 2025, while distributable earnings were negative $6.2 million or negative $0.12 per fully converted share [15] - Distributable earnings before realized losses were $31.9 million or $0.31 per fully converted common share [15] - The book value per fully converted common share at the end of the quarter stood at $14.95, reflecting a decrease primarily due to dividend payouts exceeding earnings [18] Business Line Data and Key Metrics Changes - The company originated $341 million in new loan commitments during Q1 2025, with multifamily loans accounting for 79% of total origination volume [18] - Loan repayments totaled $353 million, predominantly from loans originated in 2021 and 2022 [18] - The average cost of debt on the core portfolio was SOFR plus 2.18% [19] Market Data and Key Metrics Changes - The core portfolio totaled $4.8 billion at quarter end, comprised of 152 loans, with multifamily securing 71% of the portfolio [23] - The average risk rating at quarter end was 2.2, with 146 of 152 positions risk-weighted at two or three [12] Company Strategy and Development Direction - The pending acquisition of NewPoint is expected to provide meaningful synergies and aligns with the strategic focus on the multifamily sector, enhancing earnings quality and consistency [13] - The company aims to recycle the bulk of its legacy book into current vintage loans, positioning itself for sustained growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the NewPoint acquisition, viewing it as a catalyst for long-term value creation [13] - The company anticipates challenges in dividend coverage in the near term due to REO and non-performing loan portfolios, but believes in its long-term earning power [17] Other Important Information - The company has a liquidity position of $913 million, including $215 million in unrestricted cash [12] - The REO portfolio stood at 12 positions at quarter end, with plans to liquidate assets for optimal recovery [28] Q&A Session Summary Question: Plans for loan portfolio and REO proceeds - Management indicated that any new capital from REO sales would be proactively reinvested into new originations as soon as possible [35] Question: Impact of NewPoint acquisition on expenses - Expenses in Q1 included transaction costs related to NewPoint and REO expenses, which elevated overall costs [36] Question: Dividend sustainability and REO impact - Management is monitoring how quickly REO assets can be turned over and the potential impact of market volatility on dividend coverage [46][47] Question: Originations and deal flow - Management noted that while originations were paused for cash gathering for NewPoint, they expect to resume soon with a consistent deal flow available [55][58] Question: Changes at Fannie, Freddie, and HUD - Management expressed uncertainty about government actions but highlighted the unique opportunity presented by the NewPoint acquisition to build a competitive multifamily lending platform [62] Question: Agency business revenue contribution - Management did not disclose specific percentages for agency business revenue at close but indicated more details would be provided in the future [79]

Financial Data and Key Metrics Changes - FBRT reported GAAP earnings of $23.7 million or $0.20 per diluted common share for Q1 2025, while distributable earnings were negative $6.2 million or negative $0.12 per fully converted share [16] - Distributable earnings before realized losses were $31.9 million or $0.31 per fully converted common share [16] - The book value per fully converted common share at the end of the quarter stood at $14.95, reflecting a decrease primarily due to dividend payouts exceeding earnings [20] Business Line Data and Key Metrics Changes - The company originated $341 million in new loan commitments during Q1 2025, with multifamily loans accounting for 79% of total origination volume [20] - Loan repayments totaled $353 million, predominantly from loans originated in 2021 and 2022, with multifamily loans making up the majority of pay downs [20] - The average cost of debt on the core portfolio was SOFR plus 2.18%, with 81% of financing through CLOs [21] Market Data and Key Metrics Changes - The company’s liquidity stood at $913 million at quarter end, including $215 million in unrestricted cash [13] - The average risk rating at quarter end was 2.2, with 146 of 152 positions risk-weighted at two or three [13] - Watch list loans represented 4% of the total portfolio, comprising six names at the end of the quarter [13] Company Strategy and Development Direction - The pending acquisition of NewPoint is expected to provide meaningful synergies and aligns with the strategic focus on the multifamily sector, enhancing earnings quality and consistency [14] - The company aims to recycle the bulk of its legacy book into current vintage loans, positioning itself for sustained growth and potential premium trading to book value [14] Management Comments on Operating Environment and Future Outlook - Management acknowledged that the REO portfolio has created a near-term drag on earnings but emphasized a proactive approach to recover invested capital [10] - The company anticipates potential shortfalls in dividend coverage in the near term due to REO and non-performing loan portfolios [12] - Management expressed confidence in the long-term earning power of the company to cover dividends, contingent on the pace of REO sales and market conditions [19] Other Important Information - The company has moved four loans to watch list status, bringing the total to six, with ongoing discussions regarding loan modifications [26] - The foreclosure REO portfolio stood at 12 positions at quarter end, with plans to liquidate assets for the best possible outcome [29] - The integration of NewPoint is expected to create book value growth and enhanced earning powers over time [31] Q&A Session Summary Question: Plans for loan portfolio and REO proceeds - Management indicated that any new capital from REO sales would be proactively reinvested into new originations, although cash is being held for the NewPoint acquisition [35] Question: Impact of NewPoint acquisition on expenses - Expenses in Q1 were elevated due to transaction costs related to NewPoint and ongoing REO expenses, which are expected to normalize post-acquisition [38] Question: Balancing REO asset sales versus holding for potential gains - Management stated that each asset is evaluated on a case-by-case basis, prioritizing the liquidation of REO to redeploy capital into earning loans [43] Question: Dividend sustainability and potential adjustments - Management noted that the ability to cover dividends will be monitored closely, particularly in relation to the pace of REO turnover and market volatility [48] Question: Changes in originations and market conditions - Management confirmed that originations have been consistent, with a temporary pause for cash gathering for the NewPoint acquisition, but expect to resume soon [57] Question: Insights on agency lending and regulatory changes - Management expressed uncertainty regarding future government actions but highlighted the unique opportunity presented by the NewPoint acquisition to enhance their multifamily lending platform [64]

Core Viewpoint - The article emphasizes the importance of focusing on dividend income rather than stock price volatility, especially in the current uncertain economic environment. It highlights three specific stocks that offer reliable dividends. Group 1: TD Bank - TD Bank's shares are nearly 30% below their 2022 highs, placing it in a bear market, which has resulted in a historically high yield of around 5% [2][3] - Despite regulatory challenges due to money laundering issues in its U.S. business, TD Bank's core Canadian operations remain strong, allowing it to sustain and grow its dividend, which was recently raised by 3% [3] - The bank's ability to provide a reliable and growing dividend makes it a low-risk investment opportunity for conservative investors [3] Group 2: Vici Properties - Vici Properties is a net lease REIT primarily investing in casinos, which is perceived as risky; however, it does not operate the casinos and will continue to receive rent payments regardless of the economic conditions [4][5] - The REIT has consistently increased its dividend since its IPO, with a current yield of 5.3%, supported by long-term leases that include inflation-based rent hikes [5] - Vici's business model is designed to maintain dividends even during economic downturns, making it a stable investment option [5] Group 3: Enbridge - Enbridge is a North American midstream company with reliable cash flows from transporting oil and natural gas, allowing it to increase its dividend annually for 30 consecutive years [6][7] - The company is diversifying its operations, with 25% of its business focused on regulated natural gas utilities and clean energy, positioning it for long-term sustainability [7] - Enbridge offers a dividend yield of 5.7%, appealing to investors looking for both current income and long-term growth potential [6][7]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net loss to common shareholders of $1 million, translating to a diluted earnings per share of negative $0.01, primarily due to fair value declines from interest rate volatility and credit spread widening [2][10] - The book value per share as of March 31 was $15.43, a modest decrease from December 31 [2] - The run rate return potential for PMT is currently averaging $0.35 per share, down from $0.37 in the prior quarter [14] Business Line Data and Key Metrics Changes - The Credit Sensitive Strategies contributed $1 million to pretax income, while losses from organically created CRT investments were $5 million [10] - The interest rate sensitive strategies incurred a pretax loss of $5 million, with fair value declines on MSR investments amounting to $56 million [10] - PMT's Correspondent Production segment generated $10 million in income, down from the prior quarter [13] Market Data and Key Metrics Changes - Total correspondent loan acquisition volume was $23 billion in Q1, down 18% from the previous quarter [12] - PMT retained 21% of total conventional correspondent production in Q1, an increase from 19% in the fourth quarter [12] - Current third-party estimates for industry originations in 2025 average $2 trillion, indicating growth in overall volumes [2] Company Strategy and Development Direction - PMT aims to leverage its relationship with PFSI to capitalize on unique investment opportunities, focusing on credit-sensitive strategies while maintaining a consistent securitization cadence [4][7] - The company plans to continue closing approximately one securitization of non-owner occupied loans per month and one jumbo loan securitization per quarter starting in Q2 [7] - PMT's strategy includes a focus on maintaining a stable dividend while navigating the current volatile market environment [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in PMT's ability to navigate the challenging mortgage market, citing strong risk management practices and a diversified investment portfolio [3][9] - The company anticipates continued low delinquency rates due to the overall credit strength of consumers and substantial home equity accumulation [7][8] - Management noted that the current economic environment has led to credit spread widening, but they expect the yield curve to normalize over time, which could improve returns on interest rate-sensitive strategies [36][38] Other Important Information - PMT completed three securitizations of investor loans totaling $1 billion in unpaid principal balance during the first quarter [6] - The fair value of PMT's MSR asset at the end of the quarter was $3.8 billion, slightly down from December 31 [11] Q&A Session Summary Question: Changes in book value and expected ROE since quarter end - Management indicated that book value has decreased by about 2% to 3% due to interest rate volatility and credit spread widening, but remains contained [17][18] Question: Expectation of acquiring a larger percentage of loans from PFSI - Management stated that PMT's acquisition strategy focuses on where capital can be most advantageously deployed, with no expectation of increasing the proportion of loans retained in the second half of the year [22] Question: Outlook on capital allocation and investment strategies - Management expressed satisfaction with current capital allocation, emphasizing the importance of growing credit-sensitive strategies while maintaining correspondent activity [28][30] Question: Visibility on volumes from correspondent loans - Management expects increased correspondent activity starting at the end of April, with the market centered on a $2 trillion origination market [31][32] Question: Outlook for the dividend amidst lower run rate earnings - Management expects the dividend to remain stable despite fluctuations in run rate, emphasizing the importance of dividend stability [36] Question: Return expectations on new loan securitizations - Management noted that return targets on subordinate bonds have increased due to credit spread widening, with expected returns in the mid-teens [41][42]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net loss to common shareholders of $1 million, translating to a diluted earnings per share of negative $0.01 [4][17] - The book value per share as of March 31 was $15.43, a modest decline from December 31 [5] - The run rate return potential decreased to an average of $0.35 per share from $0.37 in the prior quarter [24] Business Line Data and Key Metrics Changes - The credit-sensitive strategies contributed $1 million to pre-tax income, while losses from organically created CRT investments were $5 million [17] - The interest rate-sensitive strategies reported a pre-tax loss of $5 million, with fair value declines on MSR investments amounting to $56 million [18] - Total correspondent loan acquisition volume was $23 billion, down 18% from the prior quarter, with PMT acquiring $3 billion, a 20% decrease [20][21] Market Data and Key Metrics Changes - Current third-party estimates for industry originations are projected to average $2 trillion in 2025, indicating growth in overall volumes [5] - Delinquency rates for borrowers in PMT's MSR portfolio remain low, attributed to strong consumer credit and accumulated home equity [13] Company Strategy and Development Direction - PMT's relationship with PFSI provides competitive advantages, leveraging PFSI's operating platform and access to the origination market [7][8] - The company aims to continue closing approximately one securitization of non-owner-occupied loans per month and one jumbo loan securitization per quarter starting in Q2 [11] - PMT is focused on increasing investments in credit-sensitive strategies while maintaining a stable dividend of $0.40 per share [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a volatile market, emphasizing strong risk management practices [6][15] - The company expects to see increased correspondent activity and maintains a positive outlook on the $2 trillion origination market despite current volatility [50] Other Important Information - PMT completed three securitizations of investor loans totaling $1 billion in unpaid principal balance during Q1 [10] - The fair value of PMT's MSR asset at the end of the quarter was $3.8 billion, slightly down from December 31 [19] Q&A Session Summary Question: Changes in book value and expected ROE since quarter end - Management noted a decrease in book value by about 2% to 3% due to interest rate volatility and credit spread widening, but expressed satisfaction with the hedging program [31] Question: Expectation of acquiring a larger percentage of loans from PFSI - Management indicated that the focus is on capital deployment where most advantageous, and does not expect an increase in the proportion of loans retained in the back half of the year [37] Question: Outlook for dividend given lowered run rate earnings - Management expects the dividend to remain stable despite fluctuations in run rate, attributing the decline primarily to the yield curve shape [56] Question: Return expectations on new loan securitizations amid spread widening - Management stated that return targets on subordinate bonds have increased to mid-teens due to credit spread widening, which supports ongoing securitization activities [64]