Sachem Capital Corp. ( (SACH) ) has released its Q2 earnings. Here is a breakdown of the information Sachem Capital Corp. presented to its investors.
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Sachem Capital Corp. is a real estate investment trust (REIT) focused on providing short-term loans secured by first mortgages on real property, primarily catering to real estate investors for property acquisition and development.
In its second quarter of 2025 earnings report, Sachem Capital Corp. highlighted a strategic focus on portfolio management and capital preservation, supported by a successful $100 million Senior Secured Notes private placement. Despite challenges from elevated nonperforming loans impacting revenue, the company reported stable credit reserves and continued income from investments.
Key financial metrics revealed a total revenue of $10.8 million, a decrease from $15.1 million in the previous year, attributed to reduced loan origination and increased nonperforming loans. However, operating expenses significantly decreased to $9.7 million from $18.3 million, primarily due to a reduction in credit loss provisions. The company achieved a net income of $0.8 million, a turnaround from a net loss of $4.1 million in the same quarter last year.
The balance sheet showed total assets of $501.8 million, with liabilities at $323.9 million. Shareholders’ equity stood at $177.9 million, reflecting a slight decrease due to dividend payouts. The company maintained its REIT status, distributing dividends to meet federal requirements.
Looking ahead, Sachem Capital Corp. remains committed to prudent capital allocation and disciplined portfolio management, aiming to leverage high-quality lending opportunities as market conditions stabilize to enhance long-term shareholder value.