GICS Sector : Real Estate
Sachem Capital Corp.operates as a real estate finance company.The company is involved in the originating, underwriting, funding, servicing, and managing a portfolio of short-term loans secured by first mortgage liens on real property located primarily in Northeastern United States and Florida.
Sachem Capital Corp.'s third-quarter 2025 financial performance revealed a revenue increase of 11.4% to $12 million, driven by a mix of interest income on loans ($8.3 million), loan fees ($2 million), LLC investments ($1.1 million), and other income ($0.5 million). The company's net loss to common shares was $0.12 million, or $0.00 per share, with actual EPS coming in at $0.02126, beating estimates of $0.01. Quarterly operating expenses were $12.4 million, down significantly from $19.6 million a year ago.
Publication Date: Dec -02
The company's loan yield on the average performing loan balance was approximately 12.4%, with a weighted average contractual rate of 13.21%. The gross unpaid principal balance of nonperforming loans decreased by $15.5 million to $104.1 million, and the REO balance increased nominally by $300,000 or 1.5%. Interest charges and late fees collected on NPLs during the workout process totaled $2.35 million, indicating some recovery from nonperforming assets.
Sachem Capital's balance sheet showed total assets at $484.4 million and liabilities at $308.8 million, resulting in an asset-to-liability coverage of approximately 1.57x. The company retired the 7.75% FCCC notes at maturity ($56.3 million) and repurchased $0.6 million of other unsecured notes, demonstrating a focus on managing debt. The book value per common share was $2.47, down from $2.54 at June 30, 2025.
Given the current price-to-book ratio of 0.27 and dividend yield of 19.61%, investors are likely pricing in the challenges associated with NPLs and the efforts to resolve them. The company's management is focused on reducing NPLs, with a mediation process scheduled to potentially secure assets and manage the sales process. With a significant portion of NPLs still on the books, the path forward will be closely watched. Analysts estimate revenue growth at 1.7% for next year, indicating a cautious outlook.
The company's efforts to resolve NPLs are ongoing, with $8.3 million in charge-offs moving into REO year-to-date. New loan originations are yielding around 12%, and the company is maintaining firm pricing. The mediation process, if successful, could lead to the construction of the South building, which has strong marketability. The company expects significant improvement in reducing NPLs over the next few months, driven by ongoing processes and no new additions to the total from post-COVID originations.
Sachem Capital Corp. Announces Common and Preferred Dividends
Dec -04
Sachem Capital Corp. (SACH) Q3 2025 Earnings Call Transcript
Nov -05
Sachem Capital Corp. (SACH) Reports Break-Even Earnings for Q3
Nov -05
SACH Pte. Ltd. Announces the Agreement and Plan of Merger with Quantumsphere Acquisition Corporation
Oct -04
3 REITs To Sell Before They Cut The Dividend
Sep -30
Sachem Capital Corp. Announces Full Repayment and Delisting of Maturing Unsecured Unsubordinated Notes From NYSE American
Sep -24
Granite Point Or Sachem Capital: I Went With Sachem's 11% Yielding A Preferreds
Sep -23
Sachem Capital (SACH) Revenue Down 29%
Aug -07
Sachem Capital Corp.'s 8.37% growth in Real Estate Investment Trust (REIT) is driven by increasing demand for mortgage financing, strong property acquisitions, and strategic expansion into new markets. Additionally, the company's diversified portfolio, efficient cost management, and favorable interest rate environment contribute to its growth momentum.
Sachem Capital Corp. originates, purchases, and sells mortgages, providing financing solutions to borrowers and investors.
Sachem Capital Corp. originates and securitizes commercial mortgages, creating investment opportunities for investors.
Sachem Capital Corp. provides small balance commercial loans to small businesses and property owners, offering flexible financing solutions.
Sachem Capital Corp. originates and securitizes residential mortgages, creating investment opportunities for investors.
Sachem Capital Corp. operates in the real estate investment trust (REIT) industry, which has a moderate threat of substitutes. While there are alternative investment options available, the company's diversified portfolio and strong financial performance mitigate the threat of substitutes.
Sachem Capital Corp.'s customers have limited bargaining power due to the company's strong market position and diversified portfolio. The company's ability to provide a range of financial services and products reduces the bargaining power of its customers.
Sachem Capital Corp. has a moderate bargaining power of suppliers due to its dependence on a few key suppliers for its mortgage loan origination business. However, the company's strong financial position and diversified portfolio mitigate the bargaining power of its suppliers.
The threat of new entrants in the REIT industry is low due to the high barriers to entry, including regulatory requirements and the need for significant capital investments. Sachem Capital Corp.'s established market position and strong financial performance make it difficult for new entrants to compete.
The REIT industry is highly competitive, with many established players competing for market share. Sachem Capital Corp. faces intense rivalry from its competitors, which can lead to downward pressure on prices and profit margins.
| Value | |
|---|---|
| Debt Weight | 61.77% |
| Debt Cost | 7.85% |
| Equity Weight | 38.23% |
| Equity Cost | 12.33% |
| WACC | 9.56% |
| Leverage | 161.55% |
Value: 7.7
Growth: 6.8
Quality: 6.1
Yield: 10.0
Momentum: 3.0
Volatility: 9.3
1-Year Total Return ->
Value: 4.5
Growth: 5.0
Quality: 8.2
Yield: 10.0
Momentum: 6.0
Volatility: 9.0
1-Year Total Return ->
Value: 5.7
Growth: 3.0
Quality: 5.9
Yield: 10.0
Momentum: 6.0
Volatility: 10.0
1-Year Total Return ->
Value: 7.6
Growth: 3.3
Quality: 5.8
Yield: 10.0
Momentum: 5.0
Volatility: 7.3
1-Year Total Return ->
Value: 8.0
Growth: 3.3
Quality: 5.6
Yield: 10.0
Momentum: 2.0
Volatility: 6.3
1-Year Total Return ->
Value: 7.0
Growth: 1.0
Quality: 3.0
Yield: 10.0
Momentum: 0.0
Volatility: 3.0
1-Year Total Return ->