Sachem Capital Corp. reported a significant turnaround in its financial performance for the fiscal year ending December 31, 2025, achieving a net income of $1.8 million compared to a net loss of $43.9 million in 2024. This recovery was attributed to a reduction in credit-related charges and the absence of large-scale loan sale losses that had previously impacted the company. Total revenue for 2025 was $21.5 million, a decrease from $29.5 million in 2024, primarily due to lower interest income from loans, which fell by 25.3% to $32.2 million. The company’s net interest margin also contracted to 3.1% from 4.4% in the prior year, reflecting both structural and cyclical factors affecting its loan portfolio.
In terms of operational developments, Sachem Capital's loan portfolio consisted of 115 loans held for investment, with a gross principal amount of $377.4 million as of December 31, 2025. The company reported a notable increase in non-performing loans, which reached $117.6 million, up from $87.0 million in 2024. Despite this, the company managed to reduce its provision for credit losses significantly, down 87.8% to $3.3 million, indicating improved asset quality management. The company also engaged in strategic asset sales, including the sale of its Westport office property, generating net cash proceeds of approximately $19.9 million.
Sachem Capital has made strategic moves to strengthen its capital structure, including the issuance of $100 million in Senior Secured Notes due 2030, which has extended the company’s debt maturity profile. The company also amended its revolving credit facility with Needham Bank, extending its maturity to March 2028, which enhances liquidity and provides additional balance sheet flexibility. As of December 31, 2025, total liabilities decreased to $285.1 million from $310.3 million in 2024, primarily due to the repayment of maturing unsecured notes and the termination of the Churchill Credit Facility.
Looking ahead, the company aims to stabilize its net interest margin and continue resolving non-performing assets while maintaining disciplined capital allocation. The management has indicated that future earnings performance will depend on broader real estate market conditions and the successful execution of its asset resolution strategies. The company is also focused on addressing upcoming unsecured note maturities through a combination of operating cash flow, asset resolutions, and capital market activities, although it acknowledges the uncertainty surrounding market conditions.
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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