Sachem Capital returns to profit in 2025 after prior-year loss

Overview

• US real estate lender's 2025 net income rose after prior-year loss

• Company completed $19.9 mln office property sale and issued $100 mln in senior secured notes

Outlook

• Company intends to continue qualifying as a REIT and distributing at least 90% of taxable income

Result Drivers

• LOWER ORIGINATIONS - For the year, net interest income and margin declined due to lower loan originations and a reduced average loan balance

• HIGHER FUNDING COSTS - Net interest margin fell due to increased weighted average cost of capital from refinancing activity and a higher concentration of nonaccrual loans

• ASSET SALES - Gains on sale of real estate assets and developmental projects contributed to improved results

Company press release: ID:nGNXc0FKQ5

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "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 $1.23, about 11.4% above its March 11 closing price of $1.10

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

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