Sachem Capital(SACH)2025-03-27 14:23Financial 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]