The following is a summary of the Sachem Capital Corp. (SACH) Q4 2023 Earnings Call Transcript:
Financial Performance:
Sachem Capital's revenue showed significant growth in 2023, having increased by 25.5% to $65.6 million from $52.3 million in the previous year.
Non-cash impairments led to a cost of about $6.4 million, mainly arising from two office loans.
Operating costs and expenses grew to $49.7 million in 2023 due to higher interest rates, compared to $31.4 million in 2022.
A decrease in Net income was observed, falling to $12.1 million in 2023 from $17.2 million in 2022.
Earnings per share saw a decline from $0.46 in 2022 to $0.27 in 2023.
Business Progress:
Sachem expanded its loan originations during 2023 to approximately $205 million.
The company secured additional revenue of approximately $4.1 million, owing to its effective strategies with loan extensions, modifications, and defaults.
The investment in partnerships marked a $12.2 million increase from the previous year due to significant participation in the multifamily and workforce housing sectors.
Despite a challenging economic scenario and rising interest rates, Sachem is planning to focus on capital protection, shareholder value growth, and liquidity maintenance.
Sachem Capital has embraced stricter lending criteria and aims to reduce loan count in the coming quarters, focusing on better quality sponsors, larger down payments, and quality properties.
More details: Sachem Capital Corp IR
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