Sachem Capital Corp. 7.125% Not

Sachem Capital Corp. reported net income of $6.3 million for FY 2025, a significant improvement from a net loss of $39.6 million in FY 2024. Net income attributable to common shareholders was $1.8 million, compared to a loss of $43.9 million in the prior year. Key drivers included a substantial reduction in credit-related charges, with provision for credit losses decreasing to $3.3 million from $26.9 million, and the absence of large loan sale losses. Net interest income declined to $11.7 million from $20.5 million due to lower average loan balances and higher funding costs, resulting in net interest margin compression to 3.1% from 4.4%. The company strengthened its capital structure by issuing $90.0 million in Senior Secured Notes and extending its Needham Credit Facility. Forward-looking significance centers on managing elevated non-performing loans ($117.6 million at year-end), addressing $173.3 million in note maturities through 2027, and stabilizing net interest margin through disciplined origination and asset resolution.

Key Takeaways