Sachem Capital Q2 2020 Earnings Report
Key Takeaways
Sachem Capital Corp. announced its financial results for the second quarter ended June 30, 2020, revealing a 41% increase in revenue and a 98% increase in net income compared to the same period in 2019. Despite the COVID-19 pandemic, the company generated strong financial performance by focusing on capital preservation and portfolio maintenance.
Total revenue increased by 41% to approximately $4.3 million compared to $3.1 million in Q2 2019.
Net income increased by 98% to approximately $2.3 million, or $0.10 per share, compared to $1.1 million, or $0.06 per share in Q2 2019.
Interest income and net origination fees were approximately $3.3 million and $647,000, respectively.
The company restricted lending and conserved cash in response to the COVID-19 pandemic.
Sachem Capital
Sachem Capital
Sachem Capital Revenue by Segment
Forward Guidance
Sachem Capital will continue to prudently deploy capital and pursue opportunistic expansion and diversification of its loan portfolio, while remaining cautiously optimistic heading into the second half of the year.
Positive Outlook
- Forbearance requests decreased from 42 at the end of Q1 2020 to 23 at the end of Q2 2020.
- The company is pursuing opportunistic expansion.
- The company is pursuing diversification of its loan portfolio.
- Loan pipeline is robust.
- The company is cautiously optimistic heading into the second half of the year.
Challenges Ahead
- COVID-19 pandemic's potential impact on the overall business environment.
- Strategic decision to restrict lending.
- Strategic decision to conserve cash.
- Growth strategy was put on hold temporarily.
- Focus shifted to preservation of capital and careful maintenance of existing portfolio.
Revenue & Expenses
Visualization of income flow from segment revenue to net income