Sachem Capital Reports Third Quarter 2025 Results
MWN-AI** Summary
Sachem Capital Corp. (NYSE American: SACH), a real estate lender, reported its third quarter 2025 financial results, reflecting challenges in a tough macroeconomic environment. Total revenue fell to $12 million from $14.8 million in the same quarter of 2024, largely due to a significant decline in net new loan origination over the past year, resulting in a reduction of loans held for investment and an increase in nonperforming loans. The effective interest rate on loans held for investment slightly decreased to 12.4%.
CEO John Villano emphasized the company’s commitment to disciplined portfolio management and capital preservation. Following a successful $100 million senior secured notes private placement, Sachem repaid $56.3 million of unsecured subordinated notes, enhancing liquidity and extending its debt maturity profile. The firm's operating costs significantly decreased to $12.4 million from $19.6 million year-over-year, primarily due to lower revenues and an ease in credit loss provisions. Notably, net loss attributable to common shareholders was reduced to $0.1 million, or $0.00 per share, compared to $6.1 million, or $0.13 per share, in the prior year.
As of September 30, 2025, total assets were $484.4 million, with total liabilities slightly reducing to $308.8 million. Shareholders' equity decreased to $175.6 million from $181.7 million at year-end 2024. Book value per common share stood at $2.47, a decline attributed to dividend payouts and net income for the year-to-date period. The company paid dividends, including $0.05 per common share during this quarter.
Sachem Capital plans to continue its operations as a Real Estate Investment Trust (REIT) and is hosting a conference call to discuss these results further.
MWN-AI** Analysis
Sachem Capital Corp. (NYSE American: SACH) recently announced its financial results for Q3 2025, revealing a mixed performance amid a challenging economic climate. Total revenue decreased to $12 million from $14.8 million year-over-year, primarily due to declines in loan origination and an increase in nonperforming loans. Despite these challenges, management, led by CEO John Villano, highlighted strategic capital preservation efforts and improved liquidity following a $100 million senior secured notes placement.
The company’s focus on disciplined portfolio management appears prudent given the liquidity pressures in the market. The repayment of $56.3 million in unsecured subordinated notes has extended its debt maturity profile, which could enhance financial stability as interest rates remain volatile. While total operating costs decreased significantly, from $19.6 million to $12.4 million, the consistent interest expenses suggest a focus on controlling operational costs.
Sachem’s effective interest rate declined slightly from 12.6% to 12.4%, reflecting a cautious lending strategy that might appeal to risk-averse investors. The net loss of $0.1 million is a substantial improvement compared to the $6.1 million loss in Q3 2024, suggesting that both operational improvements and reduced credit loss provisions may positively impact future performance.
Investors should pay close attention to the upcoming webcast and conference call, where management may provide insights into future strategies and the potential for capitalizing on high-quality lending opportunities. With a book value of $2.47 and consistent dividend payments, Sachem Capital remains attractive for income-focused investors. A careful monitoring of the company’s efforts in managing its nonperforming loans and leveraging market opportunities could yield further upside as it navigates future challenges.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Company to Host Webcast and Conference Call -
BRANFORD, Conn., Nov. 05, 2025 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) (the “Company”), a real estate lender specializing in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property, today announced its financial results for the quarter ended September 30, 2025.
John Villano, CPA, Sachem’s Chief Executive Officer, commented, “In the third quarter, amid a challenging macroeconomic backdrop, our focus remained on disciplined portfolio management and capital preservation. Following the successful completion of our $100 million senior secured notes private placement, we used a portion of the proceeds to repay $56.3 million of unsecured subordinated notes, extending our debt maturity profile and strengthening our liquidity. As a result, we are in a better position to capitalize on high-quality lending opportunities, which we believe will drive long-term shareholder value into 2026 and thereafter.”
Results of operations for the quarter ended September 30, 2025
Total revenue was $12.0 million compared to $14.8 million in the third quarter of 2024. The change in revenue was primarily due to the cumulative effect of materially lower net new origination over the last twelve months, resulting in a reduction in the unpaid principal balance of loans held for investment, in addition to a currently elevated amount of nonperforming loans and real estate owned. Utilizing the average performing loans held for investment balance for the three months ended September 30, 2025 of $268.1 million, the effective interest rate on loans held for investment for the three months ended September 30, 2025 was 12.4%. Comparatively, utilizing the average performing loans held for investment balance for the three months ended September 30, 2024 of $361.7 million, the effective interest rate on loans held for investment for the three months ended September 30, 2024 was 12.6%. Income from limited liability company investments decreased by $0.4 million as the Company has reduced its investments in limited liability companies by $12.8 million since December 31, 2024. The Company used returns of capital from its investments in limited liability companies to fund additional loans held for investment during the period.
Total operating costs and expenses for the third quarter of 2025 were $12.4 million compared to $19.6 million in the same quarter last year. Interest and amortization of deferred financing costs remained relatively consistent with the prior period at $6.6 million, but increased as a percentage of total revenues due to lower revenues in 2025. The increase in compensation and employee benefits of $0.6 million relates to one time cash bonuses of $0.4 million and additional headcount to build out the executive team due to resignation of the prior chief financial officer and the hiring of his replacement and a new chief accounting officer. The material decline in the provision for credit losses related to loans held for investment for the three months ended September 30, 2025 of $7.3 million as compared to the corresponding 2024 period is a result of the prior year build-up and recognition of credit loss allowance as the aggregate non-performing loan balances were increasing significantly. As the Company has been addressing its non-performing loan portfolio for the last year through loan sales, primarily during the fourth quarter of 2024, ongoing foreclosure sales and conversions to real estate owned with subsequent sale, material additional new material credit loss allowance has not been required.
Net loss attributable to common shareholders for the third quarter of 2025 was $0.1 million, or $0.00 per common share, compared to net loss attributable to common shareholders of $6.1 million, or $0.13 per common share for the third quarter of 2024.
Balance Sheet
At quarter end, total assets were $484.4 million compared to $492.0 million as of December 31, 2024 and total liabilities were $308.8 million compared to $310.3 million as of December 31, 2024.
Total indebtedness at quarter end was $298.8 million. This includes: $171.0 million of unsecured notes payable (net of $2.2 million of deferred financing costs), $86.4 million of senior secured notes payable (net of $3.6 million of deferred financing costs), $7.8 million of repurchase agreements, $32.7 million outstanding on a $50.0 million revolving credit facility and $0.9 million of outstanding principal on a loan secured by a mortgage on the Company’s office building.
Total shareholders’ equity as of September 30, 2025 was $175.6 million compared to $181.7 million as of December 31, 2024.
Book value per common share
Book value per common share as of September 30, 2025, was $2.47, a change of $0.17 from book value per common share as of December 31, 2024 of $2.64. This reduction is primarily due to cash dividends declared and paid for the nine months ended September 30, 2025 on issued and outstanding common shares and Series A Preferred Stock totaling $10.5 million, or $0.22 per common share, partially offset by net income for the nine months ended September 30, 2025 of $3.8 million, or $0.08 per common share.
Dividends
The Company currently operates and qualifies as a Real Estate Investment Trust (REIT) for federal income tax purposes and intends to continue to qualify and operate as a REIT. Under federal income tax rules, a REIT is required to distribute a minimum of 90% of taxable income each year to its shareholders, and the Company intends to comply with this requirement for the current year.
On September 30, 2025, the Company paid a dividend of $0.484375 per share to the holders of its Series A Preferred Stock and $0.05 per share to its common shareholders of record on September 15, 2025.
Investor Conference Webcast and Call
The Company is hosting a webcast and conference call Wednesday, November 5, 2025 at 8:00 a.m. Eastern Time, to discuss its financial results for the quarter ended September 30, 2025 in greater detail. A webcast of the call may be accessed on the Company’s website at https://sachemcapitalcorp.com/investor-relations/events-and-presentations/default.aspx .
Interested parties can access the conference call via telephone by dialing toll free 1-877-704-4453 for U.S. callers or1-201-389-0920 for international callers.
Replay
The webcast will also be archived on the Company’s website and a telephone replay of the call will be available through Wednesday, November 19, 2025, and can be accessed by dialing 1-844-512-2921 for U.S. callers or 1-412-317-6671 for international callers and by entering replay passcode: 13753427.
About Sachem Capital Corp
Sachem is a mortgage REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property. It offers short-term (i.e., one to three years), secured, nonbanking loans to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The Company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Every loan is secured by a first mortgage lien on real estate and is usually personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.
Forward Looking Statements
This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding the Company’s future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words “anticipate,” “estimate,” “expect,” “project,” “plan,” “seek,” “intend,” “believe,” “may,” “might,” “will,” “should,” “could,” “likely,” “continue,” “design,” and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based primarily on management’s current expectations and projections about future events and trends that management believes may affect the company’s financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2024 filed with the U.S. Securities and Exchange Commission on March 31, 2025, as supplemented by our subsequently filed Quarterly Reports on Form 10-Q. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the Company in the context of these risks and uncertainties.
Investor & Media Contact:
Email: investors@sachemcapitalcorp.com
SACHEM CAPITAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
| September 30, 2025 | December 31, 2024 | ||||||
| (unaudited) | (audited) | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 11,172 | $ | 18,066 | |||
| Investment securities (at fair value) | 1,429 | 1,517 | |||||
| Loans held for investment (net of deferred loan fees of $2,397 and $1,950) | 372,823 | 375,041 | |||||
| Allowance for credit losses | (11,083 | ) | (18,470 | ) | |||
| Loans held for investment, net | 361,740 | 356,571 | |||||
| Loans held for sale (net of valuation allowance of $574 and $4,880) | 8,797 | 10,970 | |||||
| Interest and fees receivable (net of allowance of $2,915 and $3,133) | 4,065 | 3,768 | |||||
| Due from borrowers (net of allowance of $906 and $1,135) | 5,794 | 5,150 | |||||
| Real estate owned (net of impairment of $185 and $492) | 18,912 | 18,574 | |||||
| Investments in limited liability companies | 41,167 | 53,942 | |||||
| Investments in developmental real estate, net | 22,612 | 14,032 | |||||
| Property and equipment, net | 3,053 | 3,222 | |||||
| Other assets | 5,656 | 6,164 | |||||
| Total assets | $ | 484,397 | $ | 491,976 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Liabilities: | |||||||
| Notes payable (net of deferred financing costs of $2,241 and $3,713) | $ | 171,013 | $ | 226,526 | |||
| Senior secured notes payable (net of deferred financing costs of $3,554 and $0) | 86,446 | — | |||||
| Repurchase agreements | 7,825 | 33,708 | |||||
| Mortgage payable | 939 | 1,002 | |||||
| Lines of credit | 32,740 | 40,000 | |||||
| Accounts payable and accrued liabilities | 3,377 | 4,377 | |||||
| Advances from borrowers | 5,811 | 4,047 | |||||
| Below market lease intangible | 628 | 665 | |||||
| Total liabilities | 308,779 | 310,325 | |||||
| Commitments and Contingencies - Note 14 | |||||||
| Shareholders’ equity: | |||||||
| Preferred shares - $0.001 par value; 5,000,000 shares authorized; 2,903,000 shares designated as Series A Preferred Stock; 2,306,748 shares of Series A Preferred Stock issued and outstanding at September 30, 2025 and December 31, 2024 | 2 | 2 | |||||
| Common Shares - $0.001 par value; 200,000,000 shares authorized; 47,691,121 and 46,965,306 issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 48 | 47 | |||||
| Additional paid-in capital | 257,600 | 256,956 | |||||
| Cumulative net earnings | 39,306 | 35,518 | |||||
| Cumulative dividends paid | (121,338 | ) | (110,872 | ) | |||
| Total shareholders’ equity | 175,618 | 181,651 | |||||
| Total liabilities and shareholders’ equity | $ | 484,397 | $ | 491,976 |
SACHEM CAPITAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(dollars in thousands, except share and per share data)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenues | |||||||||||||||
| Interest income from loans | $ | 8,326 | $ | 11,420 | $ | 23,696 | $ | 35,816 | |||||||
| Fee income from loans | 1,964 | 1,843 | 5,160 | 6,543 | |||||||||||
| Income from limited liability company investments | 1,098 | 1,495 | 4,128 | 3,907 | |||||||||||
| Other investment income | 85 | 3 | 102 | 388 | |||||||||||
| Other income | 527 | 24 | 1,131 | 81 | |||||||||||
| Total revenues | 12,000 | 14,785 | 34,217 | 46,735 | |||||||||||
| Operating expenses | |||||||||||||||
| Interest and amortization of deferred financing costs | 6,565 | 6,836 | 18,798 | 21,278 | |||||||||||
| Compensation and employee benefits | 2,334 | 1,745 | 5,926 | 5,053 | |||||||||||
| General and administrative expenses | 1,679 | 2,301 | 4,338 | 4,797 | |||||||||||
| Provision for credit losses related to loans held for investment | 812 | 8,096 | 2,788 | 17,964 | |||||||||||
| Change in valuation allowance related to loans held for sale | 33 | — | (1,014 | ) | — | ||||||||||
| Impairment loss on real estate owned | 185 | 320 | 185 | 397 | |||||||||||
| Loss (gain) on sale of real estate owned and property and equipment, net | 312 | (30 | ) | 181 | (294 | ) | |||||||||
| Other expenses | 447 | 339 | 1,287 | 1,205 | |||||||||||
| Total operating expenses | 12,367 | 19,607 | 32,489 | 50,400 | |||||||||||
| Operating (loss) income | (367 | ) | (4,822 | ) | 1,728 | (3,665 | ) | ||||||||
| Other income, net | |||||||||||||||
| Gain (loss) on equity securities | 1,364 | (229 | ) | 2,060 | 229 | ||||||||||
| Total other income, net | 1,364 | (229 | ) | 2,060 | 229 | ||||||||||
| Net income (loss) | 997 | (5,051 | ) | 3,788 | (3,436 | ) | |||||||||
| Preferred stock dividends | (1,117 | ) | (1,095 | ) | (3,352 | ) | (3,187 | ) | |||||||
| Net (loss) income attributable to common shareholders | $ | (120 | ) | $ | (6,146 | ) | $ | 436 | $ | (6,623 | ) | ||||
| Basic and diluted (loss) earnings per common share | $ | 0.00 | $ | (0.13 | ) | $ | 0.01 | $ | (0.14 | ) | |||||
| Basic and diluted weighted average number of common shares outstanding | 46,902,151 | 47,339,635 | 46,854,457 | 47,390,113 |
SACHEM CAPITAL CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
dollars in thousands)
| Nine Months Ended | |||||||
| September 30, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income (loss) | $ | 3,788 | $ | (3,436 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Amortization of deferred financing costs | 1,653 | 1,860 | |||||
| Depreciation and amortization expense | 368 | 281 | |||||
| Stock-based compensation | 645 | 650 | |||||
| Provision for credit losses related to loans held for investment | 2,788 | 17,964 | |||||
| Change in valuation allowance related to loans held for sale | (1,014 | ) | — | ||||
| Impairment loss on real estate owned | 185 | 397 | |||||
| Loss (gain) on sale of real estate owned and property and equipment, net | 181 | (294 | ) | ||||
| Gain on extinguishment of debt | (140 | ) | — | ||||
| Gain on equity securities | (2,060 | ) | (229 | ) | |||
| Change in deferred loan fees | 446 | (1,278 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Interest and fees receivable, net | (79 | ) | (563 | ) | |||
| Other assets | 310 | 3,509 | |||||
| Due from borrowers, net | (2,251 | ) | (1,666 | ) | |||
| Accounts payable and accrued liabilities | (960 | ) | 257 | ||||
| Advances from borrowers | 1,764 | (3,942 | ) | ||||
| Total adjustments and operating changes | 1,836 | 16,946 | |||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 5,624 | 13,510 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchase of investment securities | — | (7,767 | ) | ||||
| Proceeds from the sale of investment securities | 2,148 | 43,964 | |||||
| Purchase of interests in limited liability companies | (5,742 | ) | (11,082 | ) | |||
| Proceeds from investments in limited liability companies | 18,517 | — | |||||
| Proceeds from sale of real estate owned | 3,282 | 2,008 | |||||
| Acquisitions of and improvements to real estate owned | (235 | ) | — | ||||
| Purchase of property and equipment | (55 | ) | 26 | ||||
| Investments in developmental real estate | (2,762 | ) | (2,482 | ) | |||
| Principal disbursements for loans | (125,609 | ) | (115,670 | ) | |||
| Principal collections on loans | 112,045 | 135,265 | |||||
| NET CASH PROVIDED BY INVESTING ACTIVITIES | 1,589 | 44,262 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Proceeds from lines of credit | 58,840 | — | |||||
| Repayments on lines of credit | (66,100 | ) | (26,292 | ) | |||
| Proceeds from repurchase agreements | 11,693 | — | |||||
| Repayments of repurchase agreements | (37,576 | ) | (2,979 | ) | |||
| Repayment of mortgage payable | (63 | ) | (59 | ) | |||
| Repayment of notes payable | (56,845 | ) | (23,647 | ) | |||
| Dividends paid on common shares | (7,114 | ) | (14,159 | ) | |||
| Dividends paid on Series A Preferred Stock | (3,352 | ) | (3,187 | ) | |||
| Proceeds from issuance of Senior Secured Notes | 90,000 | — | |||||
| Payments of deferred financing costs | (3,590 | ) | — | ||||
| Repurchase of common shares | — | (1,373 | ) | ||||
| Proceeds from issuance of common shares, net of expenses | — | 2,050 | |||||
| Proceeds from issuance of Series A Preferred Stock, net of expenses | — | 5,157 | |||||
| NET CASH USED IN FINANCING ACTIVITIES | (14,107 | ) | (64,489 | ) | |||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (6,894 | ) | (6,717 | ) | |||
| CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD | 18,066 | 12,598 | |||||
| CASH AND CASH EQUIVALENTS – END OF PERIOD | $ | 11,172 | $ | 5,881 |
FAQ**
How does Sachem Capital Corp. SACH plan to address the challenges posed by the current macroeconomic backdrop mentioned in the Q3 2025 financial results?
What steps is Sachem Capital Corp. SACH taking to improve its portfolio management and reduce the elevated nonperforming loans reported?
In light of the $100 million senior secured notes private placement, what specific high-quality lending opportunities does Sachem Capital Corp. SACH foresee for its growth strategy moving into 2026?
Can Sachem Capital Corp. SACH provide insights on how the recent changes in executive leadership will influence the company's strategic direction and financial performance?
**MWN-AI FAQ is based on asking OpenAI questions about Sachem Capital Corp. (NYSE: SACH).
NASDAQ: SACH
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