Sachem Capital Provides Fourth Quarter and Full Year 2025 Business Update

Rhea-AI Summary

Sachem Capital (NYSE American: SACH) provided a Q4 and full‑year 2025 business update highlighting portfolio sales, a noncash asset acquisition, and a credit facility extension.

Key actions: sale of Westport office for $19.9M cash with ~$4.0M book gain; noncash exchange to acquire condominium assets with ~$39.9M net book value; retention of a $12.3M first mortgage; and extension of a $50.0M revolving facility maturity to March 2, 2028.

Preliminary 2025 results show expected EPS of $0.01–$0.04 versus a 2024 loss of $0.93, and book value per share of $2.43–$2.46 versus $2.64 at year end 2024.

Positive

• Net cash proceeds of $19.9M from Westport sale
• Realized book gain of approximately $4.0M
• Acquired condominium assets with ~$39.9M net book value
• Maintains secured position on a $12.3M waterfront mortgage
• Extended $50.0M revolving credit facility maturity to 2028
• Preliminary EPS turnaround to $0.01–$0.04 in 2025

Negative

• Book value per share declined to $2.43–$2.46 from $2.64
• Dividends paid in 2025 exceeded net income, reducing equity
• Expected condominium sales rollout spans 18–24 months, delaying cash recovery

News Market Reaction – SACH

-2.91%

1 alert

-2.91% News Effect

-$1M Valuation Impact

$48M Market Cap

0.1x Rel. Volume

On the day this news was published, SACH declined 2.91%, reflecting a moderate negative market reaction. This price movement removed approximately $1M from the company's valuation, bringing the market cap to $48M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Westport sale proceeds: $19.9 million Westport sale gain: $4.0 million Naples legacy exposure: $39.9 million +5 more

8 metrics

Westport sale proceeds $19.9 million Net cash proceeds from Westport, Connecticut office asset sale on Dec 31, 2025

Westport sale gain $4.0 million Book gain realized on Westport office asset sale

Naples legacy exposure $39.9 million Net book value, principal and accrued interest/fees of legacy Naples mortgage

Naples waterfront mortgage $12.3 million First mortgage on separate waterfront development parcel in Naples

Revolving credit facility $50.0 million Size of Needham Bank revolving credit facility extended to March 2, 2028

2025 EPS guidance range $0.01 to $0.04 per share Expected 2025 net income attributable to common shareholders vs 2024 loss

2024 EPS -$0.93 per share Net loss attributable to common shareholders for 2024

2025 book value per share $2.43 to $2.46 Expected book value per common share at Dec 31, 2025 vs $2.64 in 2024

Market Reality Check

Price: $1.01 Vol: Volume 99,506 is at 0.85x...

normal vol

$1.01 Last Close

Volume Volume 99,506 is at 0.85x the 20-day average, suggesting no pre-news accumulation. normal

Technical Shares at $1.03 are trading below the $1.10 200-day MA and about 23.7% under the 52-week high.

Peers on Argus

SACH was flat pre‑announcement, while peers were mixed: LOAN +0.14%, AFCG +0.87%...

SACH was flat pre‑announcement, while peers were mixed: LOAN +0.14%, AFCG +0.87%, CHMI -2.3%, LFT -2.96%, SEVN -1.25%, indicating stock‑specific drivers rather than a clear sector trend.

Historical Context

5 past events · Latest: Jan 29 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 29	Tax reporting details	Neutral	-0.9%	Released 2025 tax reporting breakdown for common and preferred distributions.
Dec 04	Dividend declaration	Positive	+1.0%	Declared quarterly common and 7.75% Series A preferred dividends for December 2025.
Nov 05	Q3 2025 earnings	Positive	+0.0%	Reported smaller common loss, returned to YTD profitability, refinanced with senior secured notes.
Oct 22	Earnings call schedule	Neutral	-1.8%	Announced timing and access details for Q3 2025 earnings release and conference call.
Sep 24	Note repayment	Neutral	-2.6%	Detailed maturity and full repayment plans for 7.75% unsecured unsubordinated notes (SCCC).

Pattern Detected

Recent news often saw flat to negative reactions, even on operational or balance sheet updates, suggesting a tendency toward cautious or selling responses around announcements.

Recent Company History

Over the past several months, Sachem Capital focused on balance sheet and funding actions. In September 2025, it fully repaid and delisted 7.75% notes. By Q3 2025, it returned to year‑to‑date profitability and completed a $100 million senior secured notes placement while reducing unsecured notes. Dividend declarations and detailed tax reporting for 2025 followed. Today’s update on asset sales, Naples restructuring, credit facility extension, and a swing from a $0.93 loss per share in 2024 to modest 2025 EPS fits this ongoing balance sheet and portfolio optimization narrative.

Market Pulse Summary

This announcement details several balance sheet and portfolio steps: a $19.9 million Westport asset ...

Analysis

This announcement details several balance sheet and portfolio steps: a $19.9 million Westport asset sale with a $4.0 million gain, restructuring of roughly $39.9 million in Naples exposure, and extension of the $50.0 million Needham credit facility. Management also flagged a swing from a $0.93 per-share loss in 2024 to modest 2025 EPS, while book value per share is expected to decline to $2.43–$2.46. Investors may watch Naples monetization progress, credit performance, and dividend coverage relative to earnings.

Key Terms

first mortgages, net book value, noncash exchange transaction, revolving credit facility, +1 more

5 terms

first mortgages financial

"portfolio of loans secured by first mortgages on real property, today provided"

A first mortgage is the primary loan secured against a property that has priority over all other loans or claims on that same property. Think of it as the person first in line to be repaid from the sale of a house if the borrower defaults; that priority lowers the lender’s risk and makes first mortgages more attractive to investors because they typically offer greater recovery potential and clearer collateral protection than subordinate loans.

net book value financial

"legacy Naples, Florida mortgage loan held for investment having net book value, principal"

Net book value is the value of an asset or a business shown on the balance sheet after subtracting accumulated depreciation, amortization and any write-downs from the asset’s original cost. Investors use it as a conservative, accounting-based estimate of what would remain if assets were sold or obligations settled — like the 'used' value on a car title — helping identify whether a stock appears cheap relative to the company's recorded assets.

noncash exchange transaction financial

"On February 5, 2026, the Company completed a noncash exchange transaction to acquire"

A noncash exchange transaction is when a company trades goods, services, assets, or equity for something other than cash — for example, issuing shares for equipment or swapping inventory for services. Investors care because these trades change what the company owns and who owns it without moving cash, so they can affect apparent profitability, asset values and ownership stakes while leaving liquidity unchanged, much like trading a car for a boat alters what you own but not your cash on hand.

revolving credit facility financial

"with respect to the Company’s $50.0 million revolving credit facility. The amendment"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

senior secured lender financial

"will continue to monitor this loan held for investment with respect to this parcel in its capacity as a senior secured lender"

A senior secured lender is a creditor that has the top legal claim on specific assets of a borrower because the loan is backed by collateral, and 'senior' means it gets paid before other creditors if the borrower runs into financial trouble. For investors this matters because these loans are generally lower-risk and recover more value in default—think of them like a mortgage holder first in line to claim a house compared with unsecured creditors.

AI-generated analysis. Not financial advice.

BRANFORD, Conn., Feb. 12, 2026 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) (the “Company”), a real estate lender specializing in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property, today provided an update on the Company’s recent portfolio and financing activities, and preliminary results for the fourth quarter and full year ended December 31, 2025.

John Villano, CPA, the Company’s Chief Executive Officer, commented, “We closed 2025 with meaningful progress on our portfolio initiatives, completing two important transactions in the fourth quarter. First, we sold our Westport, Connecticut office asset and used the proceeds to strengthen our liquidity and balance sheet. Second, subsequent to the quarter end, we accomplished a significant step in addressing our legacy Naples, Florida exposure by acquiring the underlying condominium assets and, through our Urbane Capital subsidiary, have assumed the active management, development, and monetization of those assets. Additionally, in early 2026, we extended our Needham credit facility, further strengthening our liquidity and balance sheet flexibility. We remain focused on disciplined capital allocation as we position Sachem to drive long-term shareholder value.”

Portfolio and Financing Activities

Sale of Westport, Connecticut Office Asset

During the fourth quarter of 2025, the Company successfully completed the sale of its office property located in Westport, Connecticut. The transaction closed on December 31, 2025, generating net cash proceeds of approximately $19.9 million and realized a book gain of approximately $4.0 million. Proceeds from the sale further strengthened the Company’s liquidity position and balance sheet and provide additional flexibility to support portfolio optimization and capital deployment initiatives.

The Westport asset was sourced, managed, and executed through Urbane Capital, the Company’s in-house development and asset management platform.

Update on Naples, Florida Assets and Subsequent Events

On February 5, 2026, the Company completed a noncash exchange transaction to acquire 100% of the membership interests of the entity holding the condominium assets associated with its legacy Naples, Florida mortgage loan held for investment having net book value, principal and accrued but unpaid interest and fees, of approximately $39.9 million.

The acquired assets include:

• The condominium association,
• Three completed condominium units, which are expected to be remarketed for sale immediately under renewed marketing efforts, and
• The southern parcel, which is entitled for the development of four additional condominium units. The Company intends to commence construction and marketing activities for these units, with anticipated sales occurring over the next 18 to 24 months, subject to market conditions.
  

At closing, the transaction did not result in a material gain or loss relative to the Company’s net book value of the related assets.

Following the transaction, Urbane Capital, subsidiary of the Company, has assumed responsibility for the active management, development, and monetization of the condominium assets described above, consistent with its role in overseeing the Company’s owned real estate and development initiatives.

In addition, the Company retained and further enhanced its interest in the existing approximate $12.3 million first mortgage secured by a separate and unrelated waterfront development parcel in Naples. The Company does not control or manage development activities related to the waterfront parcel and is not assuming development responsibility for that asset. The Company will continue to monitor this loan held for investment with respect to this parcel in its capacity as a senior secured lender, consistent with its objective of protecting principal and maximizing value.

Management believes that consolidating control of the condominium assets while maintaining a secured lender position on the waterfront parcel simplifies the overall capital structure, enhances execution clarity, and positions the Company to actively manage and monetize the assets it directly controls over time.

Credit Facility Update

Subsequent to year end, on January 21, 2026, the Company entered into Amendment No. 2 to its Credit, Security and Guaranty Agreement with Needham Bank, as administrative agent, and the lenders party thereto, with respect to the Company’s $50.0 million revolving credit facility. The amendment extends the stated maturity of the facility from March 2, 2026 to March 2, 2028, and provides the Company with the ability to request an additional one-year extension to March 2, 2029, subject to lender consent and customary conditions. All other material terms of the credit facility remain unchanged. 

The extension enhances the Company’s liquidity profile and provides additional balance sheet flexibility as it continues to manage its portfolio and capital allocation strategy.

Preliminary Results year ended December 31, 2025

Net income attributable to common shareholders for 2025 is expected to be within a range of $0.01 to $0.04 per share compared to net loss attributable to common shareholders of $0.93 per share for 2024.

Book value per common share

Book value per common share for the year ended December 31, 2025, is expected to be within a range of $2.43 to $2.46, a decrease from the book value per share as of December 31, 2024 of $2.64. The decrease in book value is due to cash dividends declared and paid for the year ended December 31, 2025 on issued and outstanding shares of common and Series A Preferred Stock in excess of net income for the year ended December 31, 2025.

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., one to three years), 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. Every loan is secured by a first mortgage lien on real estate and is usually personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.

Forward Looking Statements

This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding the Company’s future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words “anticipate,” “estimate,” “expect,” “project,” “plan,” “seek,” “intend,” “believe,” “may,” “might,” “will,” “should,” “could,” “likely,” “continue,” “design,” and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based primarily on management’s current expectations and projections about future events and trends that management believes may affect the company’s financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2024 filed with the U.S. Securities and Exchange Commission on March 31, 2025, as supplemented by our subsequently filed Quarterly Reports on Form 10-Q. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the Company in the context of these risks and uncertainties.

Investor & Media Contact:
Email: investors@sachemcapitalcorp.com 

FAQ

What did Sachem Capital announce about the Westport office sale (SACH) on Dec 31, 2025?

The company sold the Westport office generating $19.9M net cash proceeds and a ~$4.0M book gain. According to the company, proceeds strengthened liquidity and support portfolio optimization and capital deployment plans going forward.

What was Sachem Capital's Naples, Florida transaction and what assets were acquired (SACH)?

Sachem completed a noncash exchange to acquire condominium assets with ~$39.9M net book value. According to the company, assets include the condo association, three completed units, and a southern parcel entitled for four additional units.

How will Sachem Capital monetize the acquired Naples condominium assets and what is the timeline (SACH)?

The company intends to market three completed units and develop four more, targeting sales over 18–24 months. According to the company, Urbane Capital will manage development, marketing, and monetization subject to market conditions.

What change occurred to Sachem Capital's credit facility with Needham Bank (SACH)?

Sachem extended its $50.0M revolving credit facility maturity from March 2, 2026 to March 2, 2028, with a possible one‑year extension. According to the company, the amendment enhances liquidity and balance sheet flexibility.

What preliminary 2025 per‑share results did Sachem Capital report (SACH)?

Preliminary net income attributable to common shareholders is expected at $0.01–$0.04 per share for 2025 versus a $0.93 loss in 2024. According to the company, this reflects portfolio actions and financing updates completed during the period.

Why did Sachem Capital's book value per share decrease for 2025 (SACH)?

Book value per share is expected at $2.43–$2.46, down from $2.64 in 2024 because dividends paid exceeded 2025 net income. According to the company, dividend distributions reduced equity despite operational results.