Sachem Capital adjusts CFO compensation, declares preferred stock dividend

Published 28/08/2024, 21:42
Sachem Capital adjusts CFO compensation, declares preferred stock dividend

BRANFORD, CT – Sachem Capital (NYSE:SACH) Corp. (NYSE American: SACH), a Real Estate Investment Trust, announced changes to its executive compensation and declared a dividend for its preferred stockholders today.

The company's Board of Directors ratified a new compensation package for Chief Financial Officer Nicholas M. Marcello, effective September 1, 2024. Marcello's package includes a $300,000 annual base salary, a one-time $20,000 payment, annual restricted stock awards valued at $125,000 starting January 1, 2025, and a potential cash bonus of up to 50% of his base salary. The bonus's exact amount will be determined by the Compensation Committee. Marcello will also continue to have access to the company's health insurance and other benefits.

In addition to executive compensation updates, the Board authorized a dividend of $0.484375 per share on the 7.75% Series A Cumulative Redeemable Preferred Stock. This dividend is payable on or about September 30, 2024, to shareholders of record as of September 15, 2024. The dividend covers the period from June 30, 2024, through September 29, 2024.

In other recent news, Sachem Capital Corp . reported a net loss of $4.1 million on revenues of $15.1 million in the second quarter. The company's GAAP earnings per share (EPS) for the quarter was reported at ($0.09), falling short of the consensus mean, while an adjusted EPS of $0.09 was achieved due to an $8.5 million credit loss provision taken during the quarter. Oppenheimer has reduced its price target for Sachem Capital to $4.00 from $4.50, citing an increase in the Current Expected Credit Loss (CECL) provision. Despite the revised price target, the firm maintained an Outperform rating on the stock.

Jones Trading also maintained a Hold rating on Sachem Capital, attributing the deviation from expected GAAP EPS to a higher-than-anticipated CECL provision. Sachem Capital's management is expected to adopt a cautious stance on new loan originations, focusing on protecting the existing loan portfolio. The company plans for a net portfolio growth of approximately $20 million for the remainder of the year and is considering share buybacks and potentially increasing its credit facility with Needham Bank.

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