Sachem Capital Corp. ( (SACH) ) has released its Q4 earnings. Here is a breakdown of the information Sachem Capital Corp. presented to its investors.
Sachem Capital Corp. is a mortgage Real Estate Investment Trust (REIT) that specializes in providing short-term loans secured by first mortgages on real property, primarily catering to real estate investors for property acquisition and improvement. The company operates in the real estate lending sector, focusing on a conservative loan-to-value ratio and occasionally engaging in opportunistic real estate purchases.
In its latest earnings report for the year ending December 31, 2024, Sachem Capital Corp. reported a decline in total revenue to $57.5 million from $64.7 million in the previous year. This decrease was attributed to reduced loan originations and a smaller loan portfolio. Despite these challenges, the company saw a significant 48.8% increase in income from partnership investments.
Key financial metrics revealed a net loss attributable to common shareholders of $43.9 million, or $0.93 per share, compared to a net income of $12.1 million, or $0.27 per share, in 2023. The increase in operating costs to $75.3 million, driven by higher provisions for credit losses and general administrative expenses, contributed to this loss. Total assets decreased to $492.0 million, reflecting a net reduction in loans held for investment.
Looking ahead, Sachem Capital Corp. remains focused on managing its loan portfolio and capital effectively, with an emphasis on reducing credit losses and exploring investment opportunities. The management is optimistic about returning to growth by leveraging industry relationships and maintaining a disciplined capital allocation strategy, aiming to enhance shareholder value.