Sachem Capital (SACH) Q4 2025 earnings summary

Executive summary

• 2025 marked a stabilization year following 2024 portfolio repositioning, with a focus on capital preservation, liquidity, and credit quality, resulting in a return to profitability and a foundation for sustainable growth.

• Achieved strong momentum in 2025, emphasizing disciplined capital allocation and balance sheet strength.

• Addressed legacy exposures and prioritized high-quality, secured real estate loans under conservative underwriting standards.

• Monetization of non-performing assets and redeployment of capital into new originations are key priorities entering 2026.

• The lending pipeline is robust, with larger, higher-quality loans and attractive pricing, supporting a positive outlook for 2026.

Financial highlights

• Net income attributable to common shareholders was $1.8 million ($0.04 per share) for 2025, compared to a net loss of $43.9 million ($0.93 per share) in 2024.

• Net interest income for 2025 was $11.7 million, down from $20.5 million in 2024, driven by lower average earning assets and higher non-accrual loans.

• Net interest margin declined to 3.1% from 4.4% year-over-year due to increased cost of capital and portfolio contraction.

• Total operating expenses fell to $13.1 million from $15.7 million, reflecting lower credit-related charges and improved cost discipline.

• Book value per share at year-end was $2.46, a decrease from 2024, mainly due to dividends paid.

Outlook and guidance

• Focus remains on resolving non-performing loans, monetizing REO, disciplined origination, and managing liquidity and leverage.

• Management remains focused on originating high-quality, secured real estate loans and driving profitable growth.

• Significant resolutions of non-performing loans are expected through 2026, with proceeds to be redeployed into new loans.

• Dividend policy will continue to be evaluated quarterly, with the next declaration in March 2026.

• Plans to continue operating as a REIT and comply with the 90% taxable income distribution requirement.