Sachem Capital Earnings Call Transcripts
Fiscal Year 2026
Fiscal Year 2025
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2025 saw a return to profitability driven by disciplined expense control, proactive capital structure management, and progress on resolving non-performing loans. Liquidity and credit quality improved, with significant asset sales and portfolio repositioning setting the stage for growth in 2026.
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Q3 2025 saw improved sequential revenue, reduced credit costs, and full repayment of $56.3M in unsecured notes. NPLs and REO assets declined, with strong loan yields and disciplined underwriting maintained. Naples NPL remains a key risk pending mediation.
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Second quarter revenue declined year-over-year due to lower loan originations and elevated NPLs, but asset growth resumed with a new $100 million notes facility. Progress continues on resolving legacy NPLs, especially a large Naples exposure, while liquidity and book value remain stable.
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Q1 2025 saw revenue decline 31.9% year-over-year due to fewer loan originations and higher non-performing loans, but operating expenses fell and book value remained stable. Management is focused on resolving NPLs, securing new credit facilities, and targeting growth in single-family and multifamily lending.
Fiscal Year 2024
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2024 saw significant losses driven by non-performing loans and asset sales, but proactive portfolio stabilization and diversification efforts have positioned the business for recovery. Liquidity remains strong, with a focus on resolving troubled assets and selective new lending.
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Q3 2024 saw a net loss of $6.1M on $14.8M revenue, driven by lower originations and higher reserves. A $78.8M loan sale aims to reduce non-accruals and free capital, while a strategic investment in Shem Creek diversifies income. Dividend remains at $0.05 per share.
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Q2 2024 saw revenue decline to $15.1M and a net loss of $4.1M, driven by higher credit loss provisions amid ongoing real estate market uncertainty. Liquidity remains strong with $30M in cash, and management is focused on defensive strategies and selective lending.