BRANFORD, CT – Sachem Capital (NYSE:SACH) Corp. (NYSE American: SACH), a Real Estate Investment Trust, held its 2024 Annual Meeting of Shareholders on Monday, where five incumbent directors were re-elected, and key advisory resolutions were passed, including the approval of independent auditors and executive compensation policies.
The election results saw John L. Villano, Leslie Bernhard, Arthur L. Goldberg, Brian A. Prinz, and Jeffery C. Walraven secure their positions on the board for another term, with votes for each director ranging from 13,210,115 to 13,923,290. There were no competing nominees, and the number of withheld votes varied for each candidate, while broker non-votes remained consistent at 15,624,964 across the board.
Shareholders also expressed their advisory approval of Hoberman & Lesser, LLP as the company's independent auditors for the fiscal year 2024, with an overwhelming 29,286,189 votes in favor.
In the non-binding advisory vote on executive compensation, commonly referred to as "Say-on-Pay," 12,015,785 votes were cast in favor, while 2,490,753 were against, and 561,280 abstained. Additionally, the frequency of future "Say-on-Pay" votes was set at every year, as preferred by a plurality of votes, with 7,617,950 supporting the annual frequency.
Following the feedback from the "Say-on-Frequency" advisory vote, the Board decided on Monday that the company will continue to hold annual advisory votes on executive compensation. This decision will stand until at least the annual meeting in 2030, when the next frequency vote is scheduled.
In other recent news, Sachem Capital Corp . has made a strategic investment, acquiring a 20% stake in Shem Creek Capital for $5 million. This move represents a diversification of Sachem's business model and an opportunity for potential expansion.
In addition to this, Sachem Capital reported a net loss of $4.1 million on revenues of $15.1 million in the second quarter. The company has also revised the compensation package for its Chief Financial Officer, Nicholas M. Marcello, and declared a dividend for preferred stockholders.
Analysts at Oppenheimer and Jones Trading have maintained their ratings on Sachem Capital, despite a lower than expected GAAP earnings per share (EPS).
This was attributed to a higher-than-anticipated credit loss provision. Moving forward, Sachem Capital plans to adopt a cautious stance on new loan originations, focusing on protecting the existing loan portfolio. The company is also considering share buybacks and potentially increasing its credit facility with Needham Bank.
InvestingPro Insights
Following Sachem Capital Corp.'s (NYSE American: SACH) 2024 Annual Meeting of Shareholders, InvestingPro data provides additional context to the company's financial position and market performance. The company's market capitalization stands at $116.11 million, reflecting its current size in the REIT sector.
Notably, SACH offers a significant dividend yield of 13.06%, which aligns with one of the InvestingPro Tips highlighting that the company "pays a significant dividend to shareholders." This high yield may be attractive to income-focused investors, particularly in light of the recent shareholder meeting where governance and compensation practices were affirmed.
However, investors should be aware that the stock has faced challenges, with InvestingPro data showing a 6-month price total return of -28.09%. This performance is consistent with another InvestingPro Tip indicating that the "stock has taken a big hit over the last six months." This decline may have influenced shareholder sentiment during the annual meeting, particularly regarding executive compensation votes.
For a more comprehensive analysis, InvestingPro offers 8 additional tips for SACH, providing deeper insights into the company's financial health and market position.
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