Sachem Capital Reports Full Year 2025 Results
MWN-AI** Summary
Sachem Capital Corp. (NYSE American: SACH) has announced its financial results for the year ended December 31, 2025, marking a year of recovery and strategic repositioning. CEO John Villano emphasized the company's commitment to disciplined capital allocation and improving its credit profile, which was evident in the significant reduction of credit-related charges compared to 2024. The company's net income attributable to common shareholders for 2025 was $1.8 million, or $0.04 per share, a stark contrast to a net loss of $43.9 million, or $0.93 per share, in the previous year.
Importantly, Sachem achieved a marked decrease in interest income due to moderated loan originations in a high-interest environment. Net interest income totaled $11.7 million, down from $20.5 million in 2024, with a corresponding decline in net interest margin from 4.4% to 3.1%. Despite these challenges, total operating expenses decreased to $13.1 million from $15.7 million, aided by improved expense discipline and reduced credit-related charges.
The company reported total assets of $460 million and total liabilities of $285.1 million as of December 31, 2025, reflecting efforts to enhance its capital structure through the issuance of $100 million in Senior Secured Notes. Shareholders’ equity stood at $174.9 million, down from $181.7 million, primarily due to dividend payments totaling $14 million throughout the year.
Sachem Capital remains focused on its core strategy of securing real estate loans, navigating a challenging market while pursuing operational excellence. A conference call will be held on March 13, 2026, to further discuss these results and the company's future outlook.
MWN-AI** Analysis
Sachem Capital Corp. (NYSE American: SACH) concluded 2025 with a more stabilized financial posture following strategic moves made to strengthen its balance sheet and improve credit quality. The reported net income of $1.8 million for 2025, a recovery from a significant net loss in 2024, reflects the effectiveness of these measures. Key highlights include substantial reductions in credit-related charges, with provisioning tied to loan-specific adjustments rather than broad reserves, indicating a targeted approach to credit management.
Despite a 43% decline in net interest income year-on-year to $11.7 million, the company's proactive steps to issue $100 million in Senior Secured Notes allowed for an extension of the debt maturity profile, thereby cushioning against interest rate hikes. The new funding structure also provides a diversified source of capital, which will be crucial as the company continues to navigate a higher interest rate environment.
While net interest margin suffered a decline to 3.1% from 4.4%, this contraction highlights the cyclical challenges the company faced, including lower average earning assets. Investors should keep an eye on Sachem's disciplined underwriting practices moving forward, as they will be critical if the interest rate landscape remains volatile.
As the company transitions from restructuring to growth, the successful sale of its Westport, Connecticut property for $19.9 million, coupled with a $4 million book gain, is a positive indicator of its operational execution and could serve as a catalyst for future investments.
Looking ahead, investors may want to closely monitor the upcoming webcast and conference call on March 13, 2026, for deeper insights into Sachem's ongoing strategies and outlook, especially as the company aims to enhance its risk-adjusted returns amid market uncertainties. Given the potential for recovery and strategic alignment, a cautious, yet optimistic investment approach may prove beneficial.
**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., March 12, 2026 (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 year ended December 31, 2025.
John Villano, CPA, Sachem’s Chief Executive Officer, commented, “We closed 2025 with strong momentum and a continued focus on disciplined capital allocation and balance sheet strength. We’re taking decisive steps to address legacy exposures while positioning the company for meaningful value creation. As we move forward, we remain focused on originating high-quality, secured real estate loans under conservative underwriting standards, while driving profitable growth and operational excellence. With a strong balance sheet and experienced team, we believe we are well positioned to deliver attractive risk-adjusted returns and long-term shareholder value.”
2025 Year in Review
During 2025, the Company focused on stabilizing its credit profile and strengthening its capital structure following the portfolio repositioning actions taken in 2024 and 2025. Key developments during 2025 included:
- A significant reduction in credit-related charges compared to 2024, as provisioning reflected loan-specific adjustments rather than broad-based reserve recalibration.
- No comparable large-scale loan sale losses, resulting in improved earnings comparability relative to the prior year.
- Issuance of $100.0 million ($90.0 million drawn as of December 31, 2025) of Senior Secured Notes due 2030 bearing interest at 9.875%, which extended the Company’s weighted average debt maturity profile and diversified funding sources.
- Reduction of certain short-term borrowings and repayment of maturing unsecured notes, decreasing near-term refinancing concentration.
- Successfully completed the sale of its office property located in Westport, Connecticut generating net cash proceeds of approximately $19.9 million and realized a book gain of approximately $4.0 million. The Westport asset was sourced, managed, and executed through Urbane Capital, the Company’s in-house development and asset management platform.
- Continued disciplined underwriting in a higher interest rate environment, resulting in moderated net loan originations and a focus on sponsor quality and collateral protection.
Results of operations for the year ended December 31, 2025
Net interest income was $11.7 million compared to $20.5 million in 2024. The decrease was primarily driven by lower interest income, as loan originations have moderated since peaking in June 2024, resulting in a lower average loan balance. Utilizing the average performing loans held for investment balance for the year ended December 31, 2025 of $269.3 million, the effective interest rate on loans held for investment for the year ended December 31, 2025 was 12.0%. Comparatively, utilizing the average performing loans held for investment balance for the year ended December 31, 2024 of $366.6 million, the effective interest rate on loans held for investment for the year ended December 31, 2024 was 11.8%.
The Company’s net interest margin for the year ended December 31, 2025 was 3.1% as compared to 4.4% for the year ended December 31, 2024. Net interest margin represents net interest income, calculated as interest income less interest expense, expressed as a percentage of average loans outstanding for the applicable period. The 130 basis point decline in net interest margin reflects both structural and cyclical factors. Structurally, refinancing activity during the year increased the weighted average cost of capital. Cyclically, lower average earning assets and a higher concentration of nonaccrual loans reduced interest-earning balances.
Total other income remained relatively consistent year over year at $9.9 million for the year ended December 31, 2025 as compared to $9.4 million for year ended December 31, 2024, with underlying components shifting in composition rather than magnitude.
Total operating expenses for 2025 were $13.1 million compared to $15.7 million in 2024. Total operating expenses declined year over year due to lower credit-related charges and improved expense discipline relative to portfolio size.
- Compensation and employee benefits were $7.6 million, an increase of $0.8 million compared to $6.8 million in 2024, reflecting strategic additions to personnel and performance-based compensation adjustments as management continues to align staffing levels with portfolio scale and operational complexity.
- General and administrative expenses were $6.5 million, a decrease of $0.3 million from $6.8 million in 2024, primarily due to reduced professional fees and a continued focus on cost management following the prior year’s market slowdown.
- Impairment loss on real estate owned totaled $1.1 million, compared to $0.5 million in 2024, representing an increase of $0.6 million related to specific property-level valuation adjustments based on updated market data and revised liquidation timelines.
- Gain on sale of investments in developmental real estate, real estate owned and property and equipment, net was $4.1 million, compared to $0.4 million in 2024, reflecting gains realized on the disposition of select real estate assets and developmental projects driven by improved value creation execution relative to carrying value and successful asset repositioning, whereas the prior year included more limited disposition activity.
Net income attributable to common shareholders for 2025 was $1.8 million, or $0.04 per common share, compared to net loss attributable to common shareholders of $43.9 million, or $0.93 per common share for 2024.
Balance Sheet
As of December 31, 2025, total assets were $460.0 million compared to $492.0 million as of December 31, 2024 and total liabilities were $285.1 million compared to $310.3 million as of December 31, 2024.
Total indebtedness at December 31, 2025 was $277.8 million. This includes: $171.3 million of unsecured notes payable (net of $1.9 million of deferred financing costs), $86.6 million of senior secured notes payable (net of $3.4 million of deferred financing costs), $19.0 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 December 31, 2025 was $174.9 million compared to $181.7 million as of December 31, 2024.
Book value per common share
Book value per common share as of December 31, 2025, was $2.46, compared to book value per common share as of December 31, 2024 of $2.64. This change is primarily due to aggregate cash dividends declared and paid for the year ended December 31, 2025 on issued and outstanding common shares and shares of Series A Preferred Stock totaling $14.0 million, partially offset by net income for the year ended December 31, 2025 of $6.3 million. The change is also impacted by an increase in the liquidation preference amount for the Series A Preferred stock as we issued 6,010 shares during the year ended December 31, 2025, as well as an increase in common shares outstanding of approximately 720,000 shares.
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.
Over the course of 2025, the Company paid an aggregate of $4.5 million in dividends to holders of its Series A Cumulative Redeemable Preferred Stock and $9.5 million to the holders of its common shares.
Investor Conference Webcast and Call
The Company is hosting a webcast and conference call Friday, March 13, 2026 at 8:00 a.m. Eastern Time, to discuss its financial results for the year ended December 31, 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 or 1-201-389-0920 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 Friday, March 27, 2026, 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: 13757434.
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. Loans are secured by mortgage liens on real estate and often are 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 2025 filed with the U.S. Securities and Exchange Commission on March 12, 2026, 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. CONSOLIDATED BALANCE SHEETS (dollars in thousands, except share data) | |||||||
| Years Ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 10,924 | $ | 18,066 | |||
| Investment securities (at fair value) | 936 | 1,517 | |||||
| Loans held for investment (net of deferred loan fees of $2,230 and $1,950) | 375,188 | 375,041 | |||||
| Allowance for credit losses | (11,510 | ) | (18,470 | ) | |||
| Loans held for investments, net of allowances for credit losses | 363,678 | 356,571 | |||||
| Loans held for sale (net of valuation allowance of and $4,880) | — | 10,970 | |||||
| Interest and fees receivable (net of allowance of $2,598 and $3,133) | 4,116 | 3,768 | |||||
| Due from borrowers (net of allowance of $1,084 and $1,135) | 6,978 | 5,150 | |||||
| Real estate owned (net of impairment of $1,110 and $465) | 16,402 | 18,574 | |||||
| Investments in limited liability companies | 39,132 | 53,942 | |||||
| Investments in developmental real estate, net | 9,719 | 14,032 | |||||
| Property and equipment, net | 3,160 | 3,222 | |||||
| Other assets | 5,002 | 6,164 | |||||
| Total assets | $ | 460,047 | $ | 491,976 | |||
| Liabilities and Shareholders' Equity | |||||||
| Liabilities: | |||||||
| Notes payable (net of deferred financing costs of $1,905 and $3,713) | $ | 171,349 | $ | 226,526 | |||
| Senior secured notes payable (net of deferred financing costs of $3,427 and ) | 86,573 | — | |||||
| Repurchase agreements | — | 33,708 | |||||
| Mortgage payable | 917 | 1,002 | |||||
| Lines of credit | 19,000 | 40,000 | |||||
| Accounts payable and accrued liabilities | 3,255 | 4,377 | |||||
| Advances from borrowers | 4,016 | 4,047 | |||||
| Below market lease intangible | — | 665 | |||||
| Total liabilities | 285,110 | 310,325 | |||||
| Commitments and contingencies – Note 14 | |||||||
| Shareholders’ equity: | |||||||
| Preferred shares - $0.001 par value; 5,000,000 shares authorized; 3,332,000 and 2,903,000 shares designated as Series A Preferred Stock at December 31, 2025 and 2024, respectively; 2,312,758 and 2,306,748 shares of Series A Preferred Stock issued and outstanding at December 31, 2025 and 2024, respectively | 2 | 2 | |||||
| Common stock - $0.001 par value; 200,000,000 shares authorized; 47,684,955 and 49,965,306 issued and outstanding at December 31, 2025 and 2024, respectively | 48 | 47 | |||||
| Additional paid-in capital | 257,905 | 256,956 | |||||
| Cumulative net earnings | 41,826 | 35,518 | |||||
| Cumulative dividends paid | (124,844 | ) | (110,872 | ) | |||
| Total shareholders’ equity | 174,937 | 181,651 | |||||
| Total liabilities and shareholders’ equity | $ | 460,047 | $ | 491,976 | |||
| SACHEM CAPITAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) | |||||||
| Years Ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| Interest income from loans | $ | 32,222 | $ | 43,154 | |||
| Interest income from limited liability company investments | 4,838 | 5,127 | |||||
| Interest expense and amortization of deferred financing costs | (25,390 | ) | (27,798 | ) | |||
| Net interest income | 11,670 | 20,483 | |||||
| Provision for credit losses related to loans held for investment | (3,280 | ) | (26,928 | ) | |||
| Gain (loss) on sale of loans | 121 | (21,973 | ) | ||||
| Change in valuation allowance related to loans held for sale | 1,014 | (4,880 | ) | ||||
| Net interest income (loss) after provision for credit losses related to loans held for investment, gain (loss) on sale of loans, and changes in valuation allowance related to loans held for sale | 9,525 | (33,298 | ) | ||||
| Other income | |||||||
| Fee income from loans | 5,978 | 8,594 | |||||
| Income from limited liability company investments | 467 | 112 | |||||
| Other investment income | 141 | 391 | |||||
| Gain on investment securities | 1,566 | 178 | |||||
| Other income | 1,726 | 122 | |||||
| Total other income | 9,878 | 9,397 | |||||
| Operating expenses | |||||||
| Compensation and employee benefits | (7,661 | ) | (6,824 | ) | |||
| General and administrative expenses | (6,482 | ) | (6,841 | ) | |||
| Impairment loss on real estate owned | (1,060 | ) | (492 | ) | |||
| Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net | 4,055 | 439 | |||||
| Other expenses | (1,947 | ) | (1,952 | ) | |||
| Total operating expenses | (13,095 | ) | (15,670 | ) | |||
| Net income (loss) | 6,308 | (39,571 | ) | ||||
| Preferred stock dividends | (4,472 | ) | (4,304 | ) | |||
| Net income (loss) attributable to common shareholders | 1,836 | (43,875 | ) | ||||
| Basic and diluted earnings (losses) per Common Share | $ | 0.04 | $ | (0.93 | ) | ||
| Basic and diluted weighted average Common Shares outstanding | 46,893,413 | 47,413,012 | |||||
| SACHEM CAPITAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||
| Years Ended | |||||||
| December 31, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income (loss) | $ | 6,308 | $ | (39,571 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Amortization of deferred financing costs | 2,202 | 2,456 | |||||
| Depreciation expense | 525 | 372 | |||||
| Stock-based compensation | 840 | 863 | |||||
| Provision for credit losses related to loans held for investment | 3,280 | 26,928 | |||||
| Change in valuation allowance related to loans held for sale | (1,014 | ) | 4,880 | ||||
| (Gain) loss on sale of loans | (121 | ) | 21,973 | ||||
| Impairment loss on real estate owned | 1,060 | 492 | |||||
| Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net | (4,055 | ) | (439 | ) | |||
| Gain on extinguishment of debt | (140 | ) | — | ||||
| Gain on investment securities | (1,566 | ) | (178 | ) | |||
| Deferred loan fees revenue | 280 | (2,697 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Interest and fees receivable, net | (191 | ) | 2,476 | ||||
| Other assets | (766 | ) | 2,676 | ||||
| Due from borrowers, net | (3,681 | ) | (1,431 | ) | |||
| Accounts payable and accrued liabilities | (268 | ) | 1,041 | ||||
| Advances from borrowers | (31 | ) | (6,951 | ) | |||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,662 | 12,890 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchase of investment securities | — | (7,767 | ) | ||||
| Proceeds from the sale of investment securities | 2,147 | 43,888 | |||||
| Purchase of interests in limited liability companies | (6,447 | ) | (18,271 | ) | |||
| Proceeds from limited liability companies returns of capital | 21,257 | 7,366 | |||||
| Proceeds from sale of real estate owned | 7,511 | 1,624 | |||||
| Acquisitions of and improvements to real estate owned | — | (510 | ) | ||||
| Proceeds from sale of investments in developmental real estate and property and equipment | 19,874 | 9 | |||||
| Purchase of property and equipment | (162 | ) | (77 | ) | |||
| Improvements in investment in rental real estate | (3,216 | ) | (3,025 | ) | |||
| Principal disbursements for loans | (151,776 | ) | (134,298 | ) | |||
| Principal collections on loans | 140,162 | 190,971 | |||||
| NET CASH PROVIDED BY INVESTING ACTIVITIES | 29,350 | 79,910 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Proceeds from lines of credit | 75,840 | 27,959 | |||||
| Repayments on lines of credit | (96,840 | ) | (49,751 | ) | |||
| Proceeds from repurchase agreements | 11,693 | 19,055 | |||||
| Repayments of repurchase agreements | (45,401 | ) | (11,808 | ) | |||
| Repayment of mortgage payable | (85 | ) | (79 | ) | |||
| Dividends paid on Common Shares | (9,500 | ) | (16,508 | ) | |||
| Dividends paid on Series A Preferred Stock | (4,472 | ) | (4,304 | ) | |||
| Proceeds from issuance of Senior Secured Notes | 90,000 | — | |||||
| Payment of deferred financing costs | (3,653 | ) | — | ||||
| Proceeds from issuance of common shares, net of expenses | — | 2,049 | |||||
| Repurchase of Common Shares | — | (1,488 | ) | ||||
| Proceeds from issuance of Series A Preferred Stock, net of expenses | 109 | 5,706 | |||||
| Repayment of notes payable | (56,845 | ) | (58,163 | ) | |||
| NET CASH USED IN FINANCING ACTIVITIES | (39,154 | ) | (87,332 | ) | |||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (7,142 | ) | 5,468 | ||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 18,066 | 12,598 | |||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 10,924 | $ | 18,066 |
FAQ**
How does Sachem Capital Corp. SACH plan to maintain its balance sheet strength and address legacy exposures while achieving growth following the portfolio repositioning actions taken in 2024 and 2025?
What strategies is Sachem Capital Corp. SACH implementing to ensure high-quality loan originations under conservative underwriting standards in the current higher interest rate environment?
Could you elaborate on the impact of the Senior Secured Notes issued by Sachem Capital Corp. SACH on the company's debt maturity profile and overall capital structure moving forward?
What are the key factors behind the significant reduction in credit-related charges for Sachem Capital Corp. SACH in 2025 compared to 202and how does the company plan to sustain this positive trend?
**MWN-AI FAQ is based on asking OpenAI questions about Sachem Capital Corp. (NYSE: SACH).
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