Sachem Capital Corp (SACH) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus.com11-15

Net Loss: $6.1 million or negative $0.13 per diluted share for Q3 2024. Dividend: Quarterly dividend of $0.5 per share declared on November 7, 2024. Net Fundings: Approximately $31.3 million for ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSachem Capital Corp (SACH) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-15 15:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/sachem-capital-corp-sach-q3-070853218.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net Loss: $6.1 million or negative $0.13 per diluted share for Q3 2024.\nDividend: Quarterly dividend of $0.5 per share declared on November 7, 2024.\nNet Fundings: Approximately $31.3 million for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sachem-capital-corp-sach-q3-070853218.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SACH-A","symbol_name":"Sachem Capital Corp","start_time":0,"source_url":"https://finance.yahoo.com/news/sachem-capital-corp-sach-q3-070853218.html","article_id":"2483112143","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/fffJpf4LMheEdQRJbEP0Uw--~B/aD0xODA7dz0xODA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/5dc923953b0f829590b4e9979af1071e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483112143","pubTimestamp":1731654533,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Net Loss: $6.1 million or negative $0.13 per diluted share for Q3 2024.Dividend: Quarterly dividend of $0.5 per share declared on November 7, 2024.Net Fundings: Approximately $31.3 million for mortgage loans in Q3 2024.Principal Pay Downs: Approximately $55.6 million in Q3 2024.Loan Portfolio: 226 loans with a total unpaid principal balance of approximately $477.1 million as of September 30, 2024.Weighted Average Interest Rate: 13.1% on the loan portfolio.Non-Accrual Loans: $147 million in principal balance, including 54 loans in foreclosure.GuruFocus has detected 6 Warning Signs with SACH.Sachem Capital Corp  declared a quarterly dividend of $0.5 per share, indicating a commitment to returning value to shareholders.Sachem Capital Corp  is actively working to sell non-accrual loans, which will provide liquidity and reduce the drag on earnings.Sachem Capital Corp  is repositioning itself as a market leader in small balance real estate finance, with plans to enhance lending operations an","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SACH-A":"Sachem Capital Corp","SACH":"Sachem Capital Corp."},"translate_title":"Sachem Capital Corp(SACH)2024年第三季度收益看涨期权亮点：应对挑战……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SACH":1,"SACH-A":1},"content_text":"Net Loss: $6.1 million or negative $0.13 per diluted share for Q3 2024.\nDividend: Quarterly dividend of $0.5 per share declared on November 7, 2024.\nNet Fundings: Approximately $31.3 million for mortgage loans in Q3 2024.\nPrincipal Pay Downs: Approximately $55.6 million in Q3 2024.\nLoan Portfolio: 226 loans with a total unpaid principal balance of approximately $477.1 million as of September 30, 2024.\nWeighted Average Interest Rate: 13.1% on the loan portfolio.\nNon-Accrual Loans: $147 million in principal balance, including 54 loans in foreclosure.\nReal Estate Owned: $4.3 million as of September 30, 2024.\nTotal Assets: $555.5 million as of September 30, 2024.\nCash and Cash Equivalents: $5.9 million as of September 30, 2024.\nTotal Debt Outstanding: $324.7 million as of September 30, 2024.\nLoan Sale: Targeting sale of 41 loans with approximately $78.8 million unpaid principal balance.\n\n\nWarning! GuruFocus has detected 6 Warning Signs with SACH.\n High Yield Dividend Stocks in Gurus' Portfolio\nThis Powerful Chart Made Peter Lynch 29% A Year For 13 Years\nHow to calculate the intrinsic value of a stock?\n\nRelease Date: November 14, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\n$Sachem Capital Corp(SACH-A)$ (SACH) declared a quarterly dividend of $0.5 per share, indicating a commitment to returning value to shareholders.\nThe company has a geographically diverse loan portfolio covering 16 states, focusing on growth markets in the Southeast and stable markets in the Northeast.\nSachem Capital Corp (SACH) is actively working to sell non-accrual loans, which will provide liquidity and reduce the drag on earnings.\nThe company is targeting to close on the sale of 41 loans, which will help eliminate significant costs related to foreclosure and bankruptcy processes.\nSachem Capital Corp (SACH) is repositioning itself as a market leader in small balance real estate finance, with plans to enhance lending operations and increase dividends.\n\n Negative Points \n\nSachem Capital Corp (SACH) reported a net loss attributable to common shareholders of $6.1 million for the third quarter of 2024.\nLoan originations remained challenged due to the current capital markets environment, impacting growth opportunities.\nThe company has a significant portion of its loan portfolio in non-accrual status, with $147 million in principal balance affected.\nThere is a potential for another dividend cut, which could further impact shareholder returns.\nSachem Capital Corp (SACH) faces high professional fees stemming from shareholder activism, which has affected financial performance.\n\n Q & A Highlights \nQ: Can you provide more details on the non-accrual loans and the mortgage loan sale? A: The increase in non-accrual loans is mainly due to a large loan in Naples, Florida, affected by litigation with a second mortgage holder. We are working to resolve this. The mortgage loan sale includes over $41 million in non-accrual loans, aiming to redeploy capital into better credit products. We expect to close the sale by December 30, 2024.\nQ: How do you plan to address the $34 million debt maturity in December? A: We expect to use proceeds from the loan sale to pay down the $34.5 million debt due in December. This will allow us to reduce our credit facility with Needham Bank and start rebuilding our business.\nQ: What is the current strategy for capital allocation, given recent share repurchases and investments? A: We believe our shares are undervalued and see potential in residential lending. We are currently managing our business through the loan sale and plan to reassess our capital allocation strategy in January.\nQ: How do you view the potential for REO (Real Estate Owned) growth in the coming quarters? A: We do not expect significant growth in REO. Many loans in foreclosure resolve through short sales or refinancing. We may take back some REO strategically to facilitate sales, but this is not indicative of a broader increase.\nQ: How will the $78 million loan sale be accounted for in the fourth quarter? A: The loan sale will result in a reserve recovery for loans previously reserved against, offset by a realized loss based on the execution price. Details will be included in our upcoming filings.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483112143"}