Sachem Capital Corp. 2025 Annual Report: Key Investor Highlights

Company Overview and Structure

Sachem Capital Corp. (“Sachem”) is a real estate investment trust (REIT) incorporated in New York and headquartered in Branford, CT. As a REIT, Sachem is required to distribute at least 90% of its taxable income to shareholders annually. The company has consistently maintained its REIT status since its IPO in 2017. As of March 10, 2026, Sachem had 47,967,172 common shares outstanding, with an aggregate public float value of approximately \$54 million as of June 30, 2025 [[31]].

Business Model and Investment Strategy

Sachem specializes in originating, managing, and servicing short-term, high-yield real estate loans, primarily secured by residential and commercial properties. The company employs rigorous due diligence processes, including title, lien, and judgment searches, on-site visits or independent appraisals, and background checks for borrowers. Loan commitments are issued following comprehensive executive review, focusing on property value, borrower creditworthiness, and market dynamics. The asset management team monitors projects until completion [[40]].

Loan Portfolio Performance

• Loans Disbursed (2025): \$152.6 million
• Loan Repayments (2025): \$162.7 million
• Total Loans Outstanding (End 2025): \$377.0 million
• Weighted Average Contractual Interest Rate: 13.10% (2025), up from 12.53% in 2024
• Weighted Average Term to Maturity: 4 months
• Debt as Percentage of Total Capital: 61.4% (2025), slightly down from 62.4% (2024)

The company remains open to adjusting leverage to optimize capital costs, depending on market conditions and risk assessments [[42]].

Geographic and Loan Size Diversification

Sachem’s portfolio is diversified across several primary markets, including Connecticut, Florida, Massachusetts, and New York. As of December 31, 2025, the breakdown by loan size reflects:

• 49 loans under \$1 million (42.6% of total loans, \$21.1 million)
• 10 loans between \$5 million and \$10 million (8.7% of loans, \$39 million)
• Largest concentration remains in smaller loan sizes, implying risk diversification [[45], [46]]

Securities and Capital Structure

Sachem’s capital structure includes multiple classes of debt securities and preferred shares:

• Common Shares (SACH)
• 6.00% Notes Due 2026 (SCCD)
• 6.00% Notes Due 2027 (SCCE)
• 7.125% Notes Due 2027 (SCCF)
• 8.00% Notes Due 2027 (SCCG)
• 7.75% Series A Cumulative Redeemable Preferred Stock (SACHPRA)

All securities are listed on NYSE American LLC [[28], [29]].

Regulatory Status and Compliance

• Sachem is a non-accelerated filer and a smaller reporting company, which may affect disclosure and compliance requirements.
• The company is not an emerging growth company and does not qualify as a shell company.
• All required SEC filings and submission of interactive data files have been completed on time.
• No corrections or restatements of previously issued financial statements were reported.
• No documents incorporated by reference.

Forward-Looking Statements and Risk Factors

The report includes cautionary statements regarding forward-looking projections. Management warns that actual results may differ materially due to various risks and uncertainties, including market conditions, borrower credit quality, regulatory changes, and the cost of capital. Investors are advised to evaluate the company’s future prospects in light of these risks [[38]].

Potential Price-Sensitive Issues for Investors

• Interest Rate Trends: Sachem’s weighted average interest rate increased year-over-year, suggesting improved loan pricing power but potentially higher risk.
• Leverage Strategy: The company’s willingness to adjust leverage based on market conditions could impact future returns and risk profile.
• Loan Repayment and Origination Volumes: Slightly higher repayments than new originations may indicate a cautious lending environment or tightening credit standards.
• Geographic and Loan Size Concentration: Continued diversification in loan size and geography helps mitigate risk, but changes in regional real estate markets could materially affect performance.
• No Financial Statement Restatements or Corrections: Provides assurance for investors on the reliability of reported financials.

Conclusion

Sachem Capital Corp.’s 2025 annual report reflects a stable business model with prudent risk management, a diversified loan portfolio, and a commitment to compliance as a REIT. The company’s strategy to adjust leverage and loan pricing, combined with robust geographic diversification, positions it for resilience amidst changing market conditions. Investors should closely monitor interest rate trends, leverage decisions, and regional real estate dynamics, as these factors may materially impact future performance and share value.

Disclaimer: This article is based on Sachem Capital Corp.’s 2025 annual SEC 10-K filing and is intended for informational purposes only. It does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisers before making investment decisions. Forward-looking statements are subject to risks and uncertainties and actual results may differ materially.

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