SCCF - Sachem Capital: Avoid The 12% Common Dividend Yield For The Bonds
2024-04-05 12:14:48 ET
Summary
- Sachem Capital's EPS currently does not fully cover its dividend.
- The mREIT's book value dipped on the back of provision for credit losses and a year-over-year dip in EPS.
- A focus on high-quality shorter-term loans is attractive, but loan quality has deteriorated.
Sachem Capital's (SACH) double-digit slump after its fiscal 2023 earnings brought the mortgage REIT back in line with the dip we've seen across the space after a rally to a 52-week high before the earnings report. At risk for bulls is the dividend with SACH last declaring a quarterly cash distribution of $0.11 per share, kept unchanged sequentially and $0.44 per share annualized for a 12% dividend yield. The dip was led by a higher than expected provision for credit losses as SACH's revenue for the full year 2023 grew to $65.6 million , a 25.5% growth over its year-ago comp and ahead of consensus by $1.28 million. ...
Sachem Capital: Avoid The 12% Common Dividend Yield For The Bonds