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Sachem Capital Corp. Announces Tax Reporting Information

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Sachem Capital Corp. (SACH) announced the tax treatment for the Company's distributions on its common stock and preferred stock paid with respect to the calendar year ended December 31, 2023. The total tax information for common stock distributions amounted to $0.480000 per share, with no capital gains or non-dividend distributions. On the other hand, the total tax information for preferred stock distributions was $1.937500 per share, also with no capital gains or non-dividend distributions.
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From a taxation perspective, the announcement by Sachem Capital Corp. regarding the tax treatment of their common and preferred stock distributions is essential for both individual and institutional investors. The breakdown into ordinary dividends and Section 199A dividends is particularly noteworthy. Ordinary dividends are taxable as ordinary income, while Section 199A dividends may qualify for a deduction under the Qualified Business Income (QBI) provision, potentially reducing the tax liability for eligible shareholders.

The absence of capital gains distributions suggests that the company did not realize significant capital gains from the sale of investments or assets, which could indicate a strategy focused on income generation rather than capital appreciation. This information can influence investment decisions, especially for income-focused investors such as retirees or those seeking steady cash flow.

Examining the dividend payout and its consistency is a critical factor for financial analysts. Sachem Capital Corp.'s distribution indicates a steady stream of income to its shareholders, which can be a sign of financial stability and a commitment to returning value to shareholders. The provided information shows that the dividends were maintained at a consistent rate for common stock and preferred stock throughout the year, which can be seen as a positive signal to the market.

Furthermore, the lack of capital gain distributions could imply that the company is not actively engaging in selling assets for profit, which might be relevant for investors' expectations regarding the company's growth strategy and future earnings potential.

As an investment advisor, understanding the implications of dividend distributions on portfolio performance is crucial. The announcement by Sachem Capital Corp. provides clarity on the tax implications of their distributions, which can affect the after-tax return for investors. The structure of these dividends, being classified entirely as ordinary income, can have different impacts on taxable accounts versus tax-advantaged accounts like IRAs or 401(k)s.

The consistency in dividend payments could be attractive to investors seeking predictable income, particularly in a low-interest-rate environment. However, investors should also consider the company's ability to sustain these distributions without compromising its capital structure or growth prospects.

BRANFORD, Conn., Jan. 31, 2024 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) announced today the tax treatment for the Company's distributions on its common stock (CUSIP: 78590A109) and preferred stock (CUSIP: 78590A505) paid with respect to the calendar year ended December 31, 2023:

COMMON STOCK TAX INFORMATION

   Box 1aBox 1b Box 2aBox 3Box 5
Record
Date
Payable DateRate per
Share
Ordinary
Dividends Per
Share
Qualified
Dividends Per
Share
Total Capital
Gain Per
Share
Nondividend Dist.
Per Share
Section 199A
Dividends Per Share
(1)
04/17/202304/24/2023$0.130000$0.130000$0.000000$0.000000$0.000000$0.130000
08/07/202308/11/2023$0.130000$0.130000$0.000000$0.000000$0.000000$0.130000
10/31/202311/07/2023$0.110000$0.110000$0.000000$0.000000$0.000000$0.110000
12/29/202301/10/2024$0.110000$0.110000$0.000000$0.000000$0.000000$0.110000
 Total$0.480000$0.480000$0.000000$0.000000$0.000000$0.480000
        
 (1) Amounts in Box 5 are included in Box 1a      
      

PREFERRED STOCK TAX INFORMATION

   Box 1aBox 1bBox 2aBox 3Box 5
Record
Date
Payable DateRate per
Share
Ordinary
Dividends Per
Share
Qualified
Dividends Per
Share
Total Capital
Gain Per
Share
Nondividend Dist.
Per Share
Section 199A
Dividends Per Share
(1)
03/15/202303/30/2023$0.484375$0.484375$0.000000$0.000000$0.000000$0.484375
06/15/202306/30/2023$0.484375$0.484375$0.000000$0.000000$0.000000$0.484375
09/15/202309/30/2023$0.484375$0.484375$0.000000$0.000000$0.000000$0.484375
12/15/202312/30/2023$0.484375$0.484375$0.000000$0.000000$0.000000$0.484375
 Total$1.937500$1.937500$0.000000$0.000000$0.000000$1.937500

About Sachem Capital Corp.
Sachem Capital Corp. is a mortgage REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property. It offers short-term (i.e., three years or less) secured, nonbanking loans to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and is personally guaranteed by the principal(s) of the borrower. The company also makes opportunistic real estate purchases apart from its lending activities.

Investors:
Email: investors@sachemcapitalcorp.com


FAQ

What is the total tax information for common stock distributions?

The total tax information for common stock distributions amounted to $0.480000 per share, with no capital gains or non-dividend distributions.

What is the total tax information for preferred stock distributions?

The total tax information for preferred stock distributions was $1.937500 per share, also with no capital gains or non-dividend distributions.

Sachem Capital Corp. Common Shares

NYSE:SACH

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151.35M
45.34M
4.49%
22.43%
1.97%
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United States of America
BRANFORD

About SACH

since 2010, sachem capital has been financing opportunistic real estate transactions in the new england area. sachem capital provides quick, short-term bridge capital for real estate investors, builders or developers who need immediate funding or to solve an immediate problem. our creative real estate financing solutions are developed exclusively for those seeking alternatives to conventional bank loans. the executive team has extensive experience in real estate acquisitions, investments, management and development. our hands-on managers have the expertise to quickly assess complex opportunities and non-conventional situations to deliver a closing product that is efficient and opportunistic to our borrowers, and profitable to our shareholders. sachem capital was listed on the nyse on february 10, 2017. the company was designed to address the constant volatility and instability in today's financial markets. we are exited to share with you this extraordinary opportunity to seize favorabl