BRANFORD, Conn. - Sachem Capital (NYSE:SACH) Corp. (NYSE American: SACH) has announced its decision to delist its 7.125% unsecured, unsubordinated notes from the NYSE American exchange. The notes, due to mature on June 30, 2024, will no longer be traded after Thursday, with the company set to redeem them at their par value plus any accrued and unpaid interest until the maturity date.
Noteholders can expect the final payment to be made on July 1, 2024, which accounts for a non-trading day on June 30, 2024, as detailed in the prospectus supplement. Sachem Capital has clarified that note holders are not required to take any action and will be informed directly about the redemption process.
Specializing in short-term, secured non-banking loans for real estate investors, Sachem Capital is known for its conservative loan-to-value ratio underwriting criteria. The loans provided by the company are backed by first mortgages on residential or commercial real estate, which are often intended for resale or investment. These loans are also personally guaranteed by the borrower's principal(s).
The delisting and redemption of the notes mark a shift in Sachem Capital's financial strategy, although the company has not indicated plans for the notes to be listed or registered on another securities exchange or quotation medium.
The information provided in this article is based on a press release statement from Sachem Capital Corp .
In other recent news, Sachem Capital Corp. has reported a revenue increase of 25.5% to $65.6 million and a net income attributable to common shareholders of approximately $12.1 million, with earnings per share at $0.27. Amid these financial results, Oppenheimer revised its outlook on Sachem Capital, reducing the price target to $4.50 from the previous $5.00, while maintaining an Outperform rating on the stock. This decision was influenced by Sachem Capital's first-quarter earnings report and the firm's projections for the company's 2024 and 2025 earnings per share.
Sachem Capital has also appointed Nicholas M. Marcello as its interim Chief Financial Officer. Marcello's expanded role will encompass the oversight of financial and capital markets activities, portfolio management, investment strategies, foreclosures, workouts, legal affairs, and human resources.
These are recent developments that underscore the company's resilience and potential for continued growth. Oppenheimer's analysts suggest that Sachem Capital may surpass these projections if the company's management continues its cautious approach to new lending opportunities and refinances its debt maturities due in 2024. Sachem Capital ended the year with strong liquidity, holding $50.4 million in cash and cash equivalents, and a total debt of $377.7 million.
InvestingPro Insights
As Sachem Capital Corp. (NYSE American: SACH) takes a notable step in its financial management by delisting its unsecured notes, it's valuable for investors to consider the company's current financial health and market performance. Here are some insights based on recent data and InvestingPro Tips:
InvestingPro Data shows that Sachem Capital has a market capitalization of 126.21 million USD and boasts a relatively low price-to-earnings (P/E) ratio of 9.94 as of the last twelve months ending Q1 2024. This suggests that the company's shares might be priced attractively relative to its earnings. Additionally, the company has a high dividend yield of 16.54%, which can be particularly appealing to income-focused investors.
According to InvestingPro Tips, Sachem Capital pays a significant dividend to shareholders, which aligns with the high dividend yield observed. This aspect of shareholder return may be of interest to those looking for regular income streams from their investments. Moreover, the company's stock price is currently trading near its 52-week low, presenting a potential entry point for investors believing in the company's fundamentals and long-term prospects.
Another metric that stands out is the company's solid operating income margin of 55.22% for the same period, which indicates operational efficiency and the ability to translate revenues into profit effectively.
Investors should note that while the stock has experienced significant volatility and a downtrend over the last three months, analysts predict that Sachem will be profitable this year. For those considering a deeper dive into Sachem Capital's financials and future outlook, there are additional InvestingPro Tips available. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, providing access to comprehensive analysis and insights that can help make informed investment decisions.
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