Sachem Capital | 8-K: FY2025 Q3 Revenue: USD 12 M

Revenue: As of FY2025 Q3, the actual value is USD 12 M.

EPS: As of FY2025 Q3, the actual value is USD 0.

EBIT: As of FY2025 Q3, the actual value is USD -2.213 M.

Total revenue for the third quarter of 2025 was $12.0 million, a decrease from $14.8 million in the third quarter of 2024, primarily due to lower net new origination and an elevated amount of nonperforming loans and real estate owned.
Revenue mix for the quarter included $8.3 million of interest income on loans, $2 million of loan fees, $1.1 million from LLC investments, $0.1 million from other investment income, and $0.5 million of other income.
Net loss attributable to common shareholders for the third quarter of 2025 was $0.1 million, or $0.00 per common share, compared to a net loss of $6.1 million, or $0.13 per common share, in the third quarter of 2024.
Total operating costs and expenses for the third quarter of 2025 were $12.4 million, down from $19.6 million in the same quarter last year.
The provision for credit losses related to loans held for investment was $0.8 million, significantly lower than $8.1 million in the third quarter of 2024.
Interest expense was $6.6 million.
Compensation and benefits were $2.3 million, including onetime bonuses of about $0.4 million.

Net cash provided by operating activities for the nine months ended September 30, 2025, was $5.6 million, compared to $13.5 million for the same period in 2024.
Net cash provided by investing activities was $1.6 million for the nine months ended September 30, 2025, compared to $44.3 million in 2024.
Net cash used in financing activities was - $14.1 million for the nine months ended September 30, 2025, compared to - $64.5 million in 2024.
Cash at quarter end was $11.2 million.

The effective interest rate on loans held for investment for the three months ended September 30, 2025, was 12.4%, slightly down from 12.6% in the same period of 2024.
Nonperforming loans (NPLs) had a gross unpaid principal balance of $104.1 million, down from $119.6 million at June 30, 2025.
Real Estate Owned (REO) net increased by $300,000 or 1.5% over the June 30 quarter.
Subsequent to quarter end, reductions in REO included sales of 2 building lots for $226,000, a building lot under contract for $115,000, and a commercial office building under contract for $3.72 million.
Book value as of September 30, 2025, was $2.47 per share, a 2.8% decrease from June 30, 2025.
The company had invested an aggregate of $33.7 million in projects managed by Shem Creek Capital through 6 investment funds, generating approximately $4.1 million in revenue for the nine months ended September 30, 2025.

The company aims to capitalize on high-quality lending opportunities to drive long-term shareholder value into 2026 and beyond, following the successful completion of a $100 million senior secured notes private placement.
The company remains focused on reducing nonperforming loans and monetizing REO, funding high-return loans against strong collateral, and managing liquidity, leverage, and debt maturities.
The company is well positioned to capitalize on new opportunities as the market adjusts to the evolving environment.
The company remains committed to its disciplined approach in evaluating new loans, focusing on single-family and multifamily residential assets in markets with strong underlying fundamentals.