Sachem Capital Corp. reported significant financial changes for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues for Q3 2024 were $14.8 million, down 16.8% from $17.8 million in Q3 2023. For the nine-month period, revenues decreased by 3.3% to $46.7 million from $48.3 million in 2023. The decline in revenue was primarily attributed to a decrease in loan originations, which fell by 32.1%, impacting both interest and fee income.

The company experienced a substantial net loss attributable to common shareholders of $6.6 million for the nine months ended September 30, 2024, a stark contrast to the net income of $14.2 million reported for the same period in 2023. This loss was largely driven by a provision for credit losses of $18.0 million, significantly higher than the $65,000 recorded in 2023, reflecting declines in the value of assets securing mortgage loans. Operating expenses surged by 59.0% to $50.4 million, influenced by a 35.5% increase in general and administrative costs, primarily due to legal and advisory fees related to shareholder activism.

As of September 30, 2024, total assets decreased to $555.5 million from $625.5 million at the end of 2023, while total liabilities also fell to $334.9 million from $395.5 million. Shareholders' equity was reported at $220.6 million, down from $230.1 million, impacted by dividends paid and the net loss. The accumulated deficit increased to $(35.8 million) from $(20.1 million) at the end of 2023.

The company’s mortgage loan portfolio showed a carrying value of $477.1 million, down from $499.2 million at the end of 2023. The allowance for credit losses related to mortgage loans rose to $27.2 million, reflecting the challenges in the current market. The company also reported that 23.9% of its loans were in foreclosure proceedings, up from 18.0% at the end of 2023.

Strategically, Sachem Capital Corp. completed the acquisition of a commercial office building in Westport, CT, for $10.6 million in August 2023. The company also engaged in a stock repurchase plan, repurchasing 535,369 common shares for approximately $1.4 million during the nine-month period. The company’s financial outlook remains cautious, with potential further write-downs related to loans and ongoing challenges in the real estate and capital markets.