Recent news highlights include Sachem Capital reporting break-even earnings for Q3 2025, a 29% revenue decline reported in August 2025, and the Series A Preferred Stock shares crossing an 11% yield mark in April 2026.

• Sachem Capital Corp. reported break-even earnings for Q3 2025, indicating a stabilization in profitability during that period [N2].
• The company experienced a 29% decline in revenue as reported in August 2025, reflecting challenges in top-line growth [N6].
• Sachem Capital's Series A Preferred Stock shares crossed the 11% yield mark in April 2026, highlighting investor interest in its preferred securities [N5].

Sachem Capital's focused strategy on short-term, secured real estate loans to investors and developers allows it to capitalize on niche lending opportunities underserved by traditional banks. Its diversified loan portfolio and conservative underwriting may help manage credit risk across economic cycles. The company's operational agility and strong borrower relationships support loan origination and portfolio growth. Additionally, its status as a REIT provides a framework for returning income to shareholders through dividends. The company's digital marketing and strategic partnerships enhance its ability to attract new borrowers and maintain a steady loan pipeline.

The company operates in a highly competitive real estate finance market with competitors possessing greater financial resources and established customer bases. Its loan portfolio is exposed to credit risk, including non-performing loans and potential losses from foreclosures. Recent financial results show net losses and declining revenue, indicating challenges in profitability. The company's leverage level, while managed, presents financial risk, especially if market conditions deteriorate. Economic downturns, changes in real estate values, or borrower defaults could adversely impact the loan portfolio and financial performance. The company's reliance on short-term loans may also expose it to refinancing and extension risks.

Sachem Capital's competitive advantages include its experience and reputation in the niche market of short-term, hard money real estate loans, its ability to structure flexible loan terms tailored to borrower needs, and its operational agility allowing quick loan approvals. The company has developed strong borrower relationships and a brand identity in key eastern U.S. markets. Its conservative underwriting and diversified loan portfolio across property types and geographies help manage credit risk. However, the company faces competition from larger financial institutions with greater resources and established lending relationships. Its focus on small to mid-size real estate investors and developers, combined with its operational expertise, supports its differentiated position in the market.

• Credit Risk: The loan portfolio includes non-performing loans and loans in foreclosure, which may result in credit losses. The allowance for credit losses reflects historical and expected losses but may not fully cover future defaults.
• Market and Economic Conditions: Changes in real estate market liquidity, property values, and economic factors such as employment rates can affect borrower creditworthiness and collateral values, impacting loan performance.
• Competition: The company faces competition from banks, credit unions, specialty finance companies, REITs, and other institutional lenders with greater resources and established relationships.
• Leverage and Capital Structure: The company has significant debt representing over 60% of total capital, which may increase financial risk and limit flexibility in adverse conditions.
• Operational Risks: Risks related to loan underwriting, servicing, and portfolio management, including the ability to maintain operational excellence and manage loan extensions and modifications.

• Sachem Capital Corp. is a New York corporation organized in 2016, operating as a real estate investment trust (REIT) since 2017, specializing in originating, underwriting, funding, servicing, and managing a portfolio of short-term (1-3 years) loans secured by first mortgage liens on real property.
• The company primarily lends to real estate investors or developers for acquisition, renovation, rehabilitation, development, or improvement of residential or commercial properties held for investment or sale.
• Loans are typically secured by real estate and may have additional collateral such as other real estate owned by the borrower or principals, pledges of ownership interests, and personal guarantees.
• Revenue is generated mainly from interest on loans and fees related to loan origination, maintenance, servicing, modification, and extension.
• The company aims to grow its loan portfolio while preserving capital to provide attractive risk-adjusted returns to shareholders through dividends, focusing on profitable growth and operational excellence.
• Loan underwriting involves thorough due diligence on property value, borrower creditworthiness, and project scope, including third-party appraisals, credit reports, background checks, and on-site visits when feasible.
• Typical loan terms include principal amounts limited to 70% loan-to-value or 85% loan-to-cost for renovation projects, fixed interest rates generally between 10% and 13%, loan terms of 1-3 years with interest-only monthly payments and balloon principal payments at maturity.
• The company does not lend to owner-occupants of residential real estate and focuses on loans held for investment or resale.
• As of December 31, 2025, the loan portfolio consisted of 115 loans totaling approximately $377 million in gross principal amount, diversified across loan sizes and geographic regions primarily in Connecticut, Florida, Massachusetts, and New York.
• Loan portfolio composition by property type as of December 31, 2025 was approximately 54% residential, 29% commercial, 12% mixed-use, and 5% pre-development land.
• Allowance for credit losses was about 3.0% of the loan portfolio as of December 31, 2025, reflecting historical loss experience and current credit conditions.
• The company also invests in developmental real estate and may reposition or develop real estate acquired through foreclosure or acquisition.
• Management includes founder and CEO John L. Villano, CPA, and CFO Jeffery C. Walraven, with extensive experience in real estate finance and accounting.
• The company uses digital marketing, borrower retention, referrals, and strategic partnerships with banks and brokers to generate loan originations.
• Financial snapshot for Q1 2026 shows cash and equivalents of $11.565 million, short-term investments of $0.795 million, revenue of $12 million for Q3 2025, net loss of $6.077 million for Q1 2026, and basic and diluted EPS of -$0.15 per share for Q1 2026.
• Debt represented approximately 61.4% of total capital as of December 31, 2025, with no current plans to increase leverage but openness to reducing cost of capital.
• Recent news includes reporting break-even earnings for Q3 2025 and revenue down 29% as of August 2025, with the Series A Preferred Stock shares crossing an 11% yield mark in April 2026.
• The company operates in a competitive real estate finance market with competitors including banks, credit unions, specialty finance companies, REITs, investment banks, hedge funds, private equity, and family offices.
• The company maintains a conservative loan-to-value underwriting approach and focuses on risk-adjusted returns across various market conditions and geographies.
• Financial figures are summarized from the latest available SEC filings and are provided for informational purposes only — not financial advice.