BRANFORD, Conn. - Sachem Capital Corp . (NYSE American: NYSE:SACH) has announced that its 6.875% unsecured, unsubordinated Notes, with the ticker symbol SACC, will reach maturity on December 30, 2024. In accordance with the terms set out in the prospectus supplement, the real estate investment trust (REIT) specializing in mortgage loans will redeem these Notes at par value, along with the accrued and unpaid interest, up to but excluding the maturity date. The announcement comes as the company, currently valued at $57.77 million, maintains a notable dividend yield of 16.26%. According to InvestingPro analysis, the stock appears undervalued at its current price of $1.23, despite experiencing significant market pressure with a 64% decline year-to-date.
The company has indicated that the final trading day for the Notes on the market will be Monday, December 27, 2024. After the maturity date, the Notes will no longer be outstanding. Note holders do not need to take any action as they will receive direct communication concerning the redemption process, which will ensure the final payment is made on or before the maturity date.
Sachem Capital Corp. operates in the real estate sector, providing short-term, secured, non-banking loans to real estate investors. These loans are primarily backed by first mortgages on residential or commercial real estate, with a conservative loan to value ratio as a key underwriting criterion. The properties are often intended for resale or investment, and each loan is typically personally guaranteed by the borrower's principal(s). InvestingPro data reveals the company maintains strong liquidity with a current ratio of 6.42, indicating robust ability to meet short-term obligations. The stock currently trades at just 0.26 times book value, suggesting potential value opportunity for investors seeking exposure to the real estate lending sector.
This announcement is based on a press release statement and does not include any forward-looking statements from the company. Sachem Capital has previously noted in filings with the U.S. Securities and Exchange Commission that forward-looking statements involve risks, uncertainties, and assumptions that could cause actual events or results to differ materially from those expressed. The company has disclaimed any obligation to update such statements.
Investors holding these Notes should expect the redemption process to proceed as outlined, with no further action required on their part. Sachem Capital continues to focus on its core business of loan origination and real estate investment, separate from its lending activities. For a comprehensive analysis of Sachem Capital's financial health, valuation metrics, and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US equities with expert insights and actionable intelligence.
In other recent news, Sachem Capital Corp. experienced a decrease in revenue to $14.8 million, down from $17.8 million in the same period last year. The company also reported a net loss of $6.1 million. These financial changes have been attributed to fewer loan originations due to rising construction costs and high interest rates. Sachem Capital is currently negotiating the sale of mortgage loans to recover approximately 70% of the unpaid principal balance in an effort to mitigate the impact of non-accrual loans and foreclosures.
Sachem Capital has also announced a change in its independent registered public accounting firm, terminating its relationship with Hoberman & Lesser CPA’s, LLP and appointing Baker Tilly US, LLP as its new auditor. This decision was approved by the Audit Committee of the company's Board of Directors. There were no disagreements on accounting principles, practices, or financial statement disclosures between Sachem Capital and Hoberman.
In terms of dividends, Sachem Capital's board of directors declared a quarterly dividend payment for its 7.75% Series A Cumulative Redeemable Preferred Stock, which is $0.48 per share. Additionally, the company declared a quarterly dividend of $0.05 per share for its shareholders. Lastly, Sachem Capital is making strategic investments, such as acquiring a 20% stake in Shem Creek Capital for $2.5 million. These are the recent developments for Sachem Capital.
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