Sachem Capital's Q2 revenue falls due to lower loan originations
Overview
Sachem Capital Q2 revenue falls to $10.8 mln from $15.1 mln year-over-year
Net income for Q2 reaches $0.8 mln, reversing a loss from last year
Operating expenses drop due to reduced credit loss provisions
Company closes $100 mln private placement of senior secured notes
Result Drivers
NONPERFORMING LOANS - Elevated nonperforming loans impacted year-over-year revenue, per CEO John Villano
LOAN ORIGINATION DECLINE - Revenue decline attributed to lower net new loan origination over the past 12 months
CREDIT LOSS PROVISION - Significant reduction in provision for credit losses helped decrease operating expenses
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $10.80 mln |
|
Q2 EPS |
| $0.02 |
|
Q2 Net Income |
| $800,000 |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy."
Wall Street's median 12-month price target for Sachem Capital Corp is $1.88, about 37.3% above its July 31 closing price of $1.18
Press Release: ID:nGNXbCWzmQ
