BRANFORD, Conn. - Sachem Capital (NYSE:SACH) Corp. (NYSE American: SACH), a mortgage REIT specializing in short-term, secured nonbanking loans, has announced the launch of a public offering for unsecured, unsubordinated Notes, with a due date five years from issuance.
The offering is subject to market conditions and the Notes are expected to receive a BBB+ rating from Egan-Jones Ratings Company, a Nationally Recognized Statistical Ratings Organization. However, potential investors are cautioned that a securities rating is not a recommendation to purchase and can change or be withdrawn at any time.
The company has appointed Oppenheimer & Co. Inc. as the sole bookrunner for the transaction. The offering is only being made through a prospectus supplement and an accompanying base prospectus, part of a registration statement that the U.S. Securities and Exchange Commission (SEC) has declared effective. Interested parties can obtain these documents from Oppenheimer & Co. Inc. or by visiting the SEC's EDGAR database online.
Sachem Capital's portfolio primarily consists of loans secured by first mortgages on residential or commercial real estate, with a conservative loan to value ratio. The firm also engages in opportunistic real estate purchases beyond its lending operations.
The announcement of this offering follows the filing of a preliminary prospectus supplement with the SEC, which details the terms of the Notes and the offering. Investors are advised to read these documents thoroughly before investing to understand the risks and charges associated with Sachem Capital Corp .
This initiative represents an opportunity for Sachem Capital to raise capital, although the company has not disclosed the intended use of the proceeds from the offering. The information based on the press release statement indicates that the offering is in compliance with legal and regulatory requirements, and does not constitute an offer to sell in jurisdictions where such an action would be unlawful.
In other recent news, Sachem Capital Corp. has unveiled significant developments, including financial results and an executive appointment. The company's revenue rose by 25.5% to $65.6 million, and it reported 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.
On the executive front, Nicholas M. Marcello was appointed as interim Chief Financial Officer, an expanded role that will encompass the oversight of financial and capital markets activities, portfolio management, investment strategies, foreclosures, workouts, legal affairs, and human resources. These recent developments underscore the company's resilience and potential for continued growth in the face of market uncertainties.
InvestingPro Insights
Sachem Capital Corp. (NYSE American: SACH) is navigating the market with a strategic public offering of unsecured, unsubordinated Notes. As investors consider the potential of this mortgage REIT, several key metrics and InvestingPro Tips can provide valuable insights. With a market capitalization of 132.37 million USD and a P/E ratio that has adjusted to 10.43 over the last twelve months as of Q1 2024, Sachem presents a profile of a company with a modest valuation in the sector.
An intriguing aspect for income-focused investors is Sachem's significant dividend yield, which stands at a notable 15.77% as of the latest data. This is coupled with the InvestingPro Tip that Sachem pays a significant dividend to shareholders, which can be particularly attractive in the current market environment. Moreover, the company's liquid assets surpass its short-term obligations, indicating a strong liquidity position that may reassure investors looking for stability.
However, Sachem's stock has experienced notable price volatility, with a 32.13% decline in total return over the last three months. The InvestingPro Tip highlighting this volatility suggests that while there may be opportunities for gains, potential investors should be prepared for swings in stock price. For those considering adding SACH to their portfolios, the InvestingPro platform offers additional tips and insights, including the fact that analysts predict the company will be profitable this year, a testament to Sachem's operational efficiency.
For those interested in deeper analysis and more tips like these, consider exploring the full range of insights available on the InvestingPro platform. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With seven additional InvestingPro Tips listed for Sachem Capital, investors have a wealth of information at their fingertips to make informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.