Sachem Capital Corp. ( (SACH) ) has released its Q3 earnings. Here is a breakdown of the information Sachem Capital Corp. presented to its investors.
Sachem Capital Corp., a mortgage real estate investment trust (REIT), focuses on providing short-term loans secured by first mortgages on real estate properties, primarily serving the needs of real estate investors. The company is known for its conservative loan-to-value ratio and offers loans for property acquisition, renovation, and development.
In its third-quarter 2024 earnings report, Sachem Capital announced revenues of $14.8 million, reflecting a decline from the previous year’s $17.8 million for the same period. The company emphasized strategic initiatives during the quarter, including diversification through investment in Shem Creek Capital and the sale of non-performing mortgages to strengthen its financial position.
Key financial metrics revealed a net loss of $6.1 million, or $0.13 per share, compared to a net income of $5.2 million, or $0.12 per share, in the third quarter of 2023. This downturn was largely due to a significant provision for credit losses amounting to $8.1 million and decreased interest and fee income. Total operating expenses rose to $19.6 million from $11.3 million in the previous year, primarily driven by the credit loss provision.
The company’s balance sheet showed total assets of $555.5 million, down from $625.5 million at the end of 2023, with reductions in the mortgage loan portfolio and investment securities. Total liabilities also decreased to $334.9 million, with notable reductions in notes payable and credit facilities. Shareholders’ equity at quarter-end amounted to $220.6 million.
Looking ahead, Sachem Capital remains focused on building its lending platform and increasing shareholder value through dividends, despite the challenging macroeconomic environment. The management expressed confidence in navigating market cycles and positioning the company for growth in the coming year.
