Sachem Capital Corp. reported its financial results for the third quarter and the first nine months of 2025, revealing a total revenue of $12 million for the three months ended September 30, 2025, a decrease of 18.8% compared to $14.8 million in the same period of 2024. For the nine months ended September 30, 2025, total revenue was $34.2 million, down 26.8% from $46.7 million in the prior year. The decline in revenue was primarily attributed to a significant reduction in interest income from loans, which fell to $8.3 million in Q3 2025 from $11.4 million in Q3 2024, reflecting lower loan origination activity and an increase in nonperforming loans.
The company’s operating expenses also decreased, totaling $12.4 million in Q3 2025, down 36.9% from $19.6 million in Q3 2024. This reduction was driven by a significant drop in the provision for credit losses related to loans held for investment, which fell to $812,000 from $8.1 million in the prior year. The net income for the third quarter was $997,000, a notable recovery from a loss of $5.1 million in Q3 2024. For the nine-month period, the company reported a net income of $3.8 million, compared to a loss of $3.4 million in the same period last year.
Sachem Capital's total assets as of September 30, 2025, were $484.4 million, a slight decrease from $492 million at the end of 2024. The company’s liabilities also decreased marginally to $308.8 million from $310.3 million. Notably, the company issued $100 million in Senior Secured Notes in June 2025, which contributed to an increase in its senior secured notes payable to $86.4 million. The company’s total shareholders' equity was reported at $175.6 million, down from $181.7 million at the end of 2024, primarily due to dividend payments.
Operationally, Sachem Capital held 119 loans for investment as of September 30, 2025, with a gross principal amount of $375.2 million. The company has been actively managing its nonperforming loans, which totaled $104.1 million, and has made strategic decisions to address its loan portfolio, including sales and foreclosures. The company also reported a book value per common share of $2.47, down from $2.64 at the end of 2024.
Looking ahead, Sachem Capital remains focused on its core business of originating and managing mortgage loans while addressing the challenges posed by nonperforming assets. The company anticipates that its current cash balances, along with available credit facilities, will be sufficient to meet its operational needs over the next 12 months. The management is also actively working on improving its internal controls and financial reporting processes following a material weakness identified in previous evaluations.
About Sachem Capital Corp.
Sachem Capital Corp. is a real estate finance company specializing in originating, underwriting, funding, and managing short-term loans secured by first mortgages on residential and commercial properties. Its primary markets include the eastern U.S., serving real estate investors and developers. The company offers hard money loans with structured interest rates, fees, and collateral, focusing on risk-adjusted returns, operational efficiency, and borrower relationships.
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