[8-K] Sachem Capital Corp. Reports Material Event
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sachem Capital Corp. reported a return to profitability for 2025 after heavy losses in 2024. GAAP net income was $6.3 million, with $1.8 million, or $0.04 per common share, attributable to common shareholders versus a $43.9 million loss, or $(0.93) per share, a year earlier.
Results improved mainly because credit-related charges and loan sale losses dropped sharply, and the company realized $4.1 million of gains on real estate and developmental asset sales, including a $4.0 million gain on a Westport, Connecticut office property. However, core lending profitability weakened: net interest income fell to $11.7 million from $20.5 million and net interest margin compressed to 3.1% from 4.4% as average earning assets declined and nonaccrual loans increased.
At December 31, 2025, total assets were $460.0 million, total liabilities $285.1 million and shareholders’ equity $174.9 million. Book value per common share slipped to $2.46 from $2.64, as $14.0 million of cash dividends exceeded annual net income. The company issued $100 million of 9.875% senior secured notes due 2030 and reduced short-term borrowings. Nonperforming loans rose to $117.6 million of unpaid principal, though management noted that a post‑year‑end Naples, Florida transaction shifted about $40 million into development real estate and returned a $12 million loan to performing status, which they expect to support future resolutions and capital recycling.
Positive
- None.
Negative
- None.
Insights
Sachem swings back to profit, but margin pressure and elevated nonperformers keep risk elevated.
Sachem Capital delivered a notable turnaround in 2025 with GAAP net income of $6.3 million after a $39.6 million loss in 2024. The improvement came largely from sharply lower provisions, the absence of large loan sale losses and $4.1 million of gains on real estate and developmental dispositions.
Core earnings power is weaker, though. Net interest income dropped to $11.7 million from $20.5 million, and net interest margin narrowed to 3.1% from 4.4%, reflecting smaller average loan balances, higher funding costs and a larger pool of nonaccrual loans. Nonperforming loans were $117.6 million of unpaid principal at December 31, 2025, well above the prior year.
Balance sheet actions were meaningful: issuance of $100.0 million of 9.875% senior secured notes due 2030 extended maturities and reduced reliance on short‑term borrowings, while asset sales, including the Westport office property, bolstered liquidity. Management also highlighted a post‑year‑end Naples restructuring that moved roughly $40 million from nonaccrual loans into developmental real estate and restored a $12 million loan to performing status, which, if executed well, could ease credit overhang and support future originations.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 12, 2026
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of Principal Executive Office) | (Zip Code) | |||||||
Registrant's telephone number, including area code (203 ) 433-4736
| (Former Name or Former Address, if Changed Since Last Report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Ticker symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On March 12, 2026, Sachem Capital Corp. (the “Company”) issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, announcing its financial results for the year ended December 31, 2025.
Item 7.01. Regulation FD Disclosure.
On March 13, 2026, the Company hosted a conference call for investors to discuss its financial condition and operating results for the year ended December 31, 2025. A transcript of the call is attached hereto as Exhibit 99.2.
The information furnished pursuant to this Item 7.01 shall not be deemed to constitute an admission that such information is required to be furnished pursuant to Regulation FD or that such information or exhibits contain material information that is not otherwise publicly available. In addition, the Company does not assume any obligation to update such information in the future.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | ||||
| 99.1 | Press release, dated March 12, 2026, announcing financial results for the year ended December 31, 2025. | ||||
| 99.2 | Transcript from the investor conference call held on March 13, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, furnished pursuant to Items 2.02 and 7.01, including Exhibits 99.1 and 99.2, respectively, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
*****
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Sachem Capital Corp. | ||||||||
| Dated: March 18, 2026 | By: | /s/ John L. Villano | ||||||
| John L. Villano, CPA | ||||||||
| President and Chief Executive Officer | ||||||||
3
EXHIBIT 99.1
Earnings Release - Fiscal Year 2025SACHEM CAPITAL REPORTS
FULL YEAR 2025 RESULTS
- Company to Host Webcast and Conference Call -
BRANFORD, Conn., March 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 announced its financial results for the year ended December 31, 2025.
John Villano, CPA, Sachem’s Chief Executive Officer, commented, “We closed 2025 with strong momentum and a continued focus on disciplined capital allocation and balance sheet strength. We’re taking decisive steps to address legacy exposures while positioning the company for meaningful value creation. As we move forward, we remain focused on originating high-quality, secured real estate loans under conservative underwriting standards, while driving profitable growth and operational excellence. With a strong balance sheet and experienced team, we believe we are well positioned to deliver attractive risk-adjusted returns and long-term shareholder value.”
2025 Year in Review
During 2025, the Company focused on stabilizing its credit profile and strengthening its capital structure following the portfolio repositioning actions taken in 2024 and 2025. Key developments during 2025 included:
•A significant reduction in credit-related charges compared to 2024, as provisioning reflected loan-specific adjustments rather than broad-based reserve recalibration.
•No comparable large-scale loan sale losses, resulting in improved earnings comparability relative to the prior year.
•Issuance of $100.0 million ($90.0 million drawn as of December 31, 2025) of Senior Secured Notes due 2030 bearing interest at 9.875%, which extended the Company’s weighted average debt maturity profile and diversified funding sources.
•Reduction of certain short-term borrowings and repayment of maturing unsecured notes, decreasing near-term refinancing concentration.
•Successfully completed the sale of its office property located in Westport, Connecticut generating net cash proceeds of approximately $19.9 million and realized a book gain of approximately $4.0 million. The Westport asset was sourced, managed, and executed through Urbane Capital, the Company’s in-house development and asset management platform.
EXHIBIT 99.1
Earnings Release - Fiscal Year 2025•Continued disciplined underwriting in a higher interest rate environment, resulting in moderated net loan originations and a focus on sponsor quality and collateral protection.
Results of operations for the year ended December 31, 2025
Net interest income was $11.7 million compared to $20.5 million in 2024. The decrease was primarily driven by lower interest income, as loan originations have moderated since peaking in June 2024, resulting in a lower average loan balance. Utilizing the average performing loans held for investment balance for the year ended December 31, 2025 of $269.3 million, the effective interest rate on loans held for investment for the year ended December 31, 2025 was 12.0%. Comparatively, utilizing the average performing loans held for investment balance for the year ended December 31, 2024 of $366.6 million, the effective interest rate on loans held for investment for the year ended December 31, 2024 was 11.8%.
The Company’s net interest margin for the year ended December 31, 2025 was 3.1% as compared to 4.4% for the year ended December 31, 2024. Net interest margin represents net interest income, calculated as interest income less interest expense, expressed as a percentage of average loans outstanding for the applicable period. The 130 basis point decline in net interest margin reflects both structural and cyclical factors. Structurally, refinancing activity during the year increased the weighted average cost of capital. Cyclically, lower average earning assets and a higher concentration of nonaccrual loans reduced interest-earning balances.
Total other income remained relatively consistent year over year at $9.9 million for the year ended December 31, 2025 as compared to $9.4 million for year ended December 31, 2024, with underlying components shifting in composition rather than magnitude.
Total operating expenses for 2025 were $13.1 million compared to $15.7 million in 2024. Total operating expenses declined year over year due to lower credit-related charges and improved expense discipline relative to portfolio size.
•Compensation and employee benefits were $7.6 million, an increase of $0.8 million compared to $6.8 million in 2024, reflecting strategic additions to personnel and performance-based compensation adjustments as management continues to align staffing levels with portfolio scale and operational complexity.
•General and administrative expenses were $6.5 million, a decrease of $0.3 million from $6.8 million in 2024, primarily due to reduced professional fees and a continued focus on cost management following the prior year’s market slowdown.
•Impairment loss on real estate owned totaled $1.1 million, compared to $0.5 million in 2024, representing an increase of $0.6 million related to specific property-level valuation adjustments based on updated market data and revised liquidation timelines.
EXHIBIT 99.1
Earnings Release - Fiscal Year 2025•Gain on sale of investments in developmental real estate, real estate owned and property and equipment, net was $4.1 million, compared to $0.4 million in 2024, reflecting gains realized on the disposition of select real estate assets and developmental projects driven by improved value creation execution relative to carrying value and successful asset repositioning, whereas the prior year included more limited disposition activity.
Net income attributable to common shareholders for 2025 was $1.8 million, or $0.04 per common share, compared to net loss attributable to common shareholders of $43.9 million, or $0.93 per common share for 2024.
Balance Sheet
As of December 31, 2025, total assets were $460.0 million compared to $492.0 million as of December 31, 2024 and total liabilities were $285.1 million compared to $310.3 million as of December 31, 2024.
Total indebtedness at December 31, 2025 was $277.8 million. This includes: $171.3 million of unsecured notes payable (net of $1.9 million of deferred financing costs), $86.6 million of senior secured notes payable (net of $3.4 million of deferred financing costs), $19.0 million outstanding on a $50.0 million revolving credit facility and $0.9 million of outstanding principal on a loan secured by a mortgage on the Company’s office building.
Total shareholders’ equity as of December 31, 2025 was $174.9 million compared to $181.7 million as of December 31, 2024.
Book value per common share
Book value per common share as of December 31, 2025, was $2.46, compared to book value per common share as of December 31, 2024 of $2.64. This change is primarily due to aggregate cash dividends declared and paid for the year ended December 31, 2025 on issued and outstanding common shares and shares of Series A Preferred Stock totaling $14.0 million, partially offset by net income for the year ended December 31, 2025 of $6.3 million. The change is also impacted by an increase in the liquidation preference amount for the Series A Preferred stock as we issued 6,010 shares during the year ended December 31, 2025, as well as an increase in common shares outstanding of approximately 720,000 shares.
EXHIBIT 99.1
Earnings Release - Fiscal Year 2025Dividends
The Company currently operates and qualifies as a Real Estate Investment Trust (REIT) for federal income tax purposes and intends to continue to qualify and operate as a REIT. Under federal income tax rules, a REIT is required to distribute a minimum of 90% of taxable income each year to its shareholders, and the Company intends to comply with this requirement for the current year.
Over the course of 2025, the Company paid an aggregate of $4.5 million in dividends to holders of its Series A Cumulative Redeemable Preferred Stock and $9.5 million to the holders of its common shares.
Investor Conference Webcast and Call
The Company is hosting a webcast and conference call Friday, March 13, 2026 at 8:00 a.m. Eastern Time, to discuss its financial results for the year ended December 31, 2025 in greater detail. A webcast of the call may be accessed on the Company’s website at https://sachemcapitalcorp.com/investor-relations/events-and-presentations/default.aspx. Interested parties can access the conference call via telephone by dialing toll free 1-877-704-4453 for U.S. callers or 1-201-389-0920 for international callers.
Replay
The webcast will also be archived on the Company’s website and a telephone replay of the call will be available through Friday, March 27, 2026, and can be accessed by dialing 1-844-512-2921 for U.S. callers or 1-412-317-6671 for international callers and by entering replay passcode: 13757434.
About Sachem Capital Corp
Sachem 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. Loans are secured by mortgage liens on real estate and often are personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.
EXHIBIT 99.1
Earnings Release - Fiscal Year 2025Forward 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 2025 filed with the U.S. Securities and Exchange Commission on March 12, 2026, 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
EXHIBIT 99.1
Earnings Release - Fiscal Year 2025SACHEM CAPITAL CORP.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)
| Years Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ 10,924 | $ 18,066 | |||||||||
| Investment securities (at fair value) | 936 | 1,517 | |||||||||
Loans held for investment (net of deferred loan fees of $2,230 and $1,950) | 375,188 | 375,041 | |||||||||
| Allowance for credit losses | (11,510) | (18,470) | |||||||||
| Loans held for investments, net of allowances for credit losses | 363,678 | 356,571 | |||||||||
| Loans held for sale (net of valuation allowance of $— and $4,880) | — | 10,970 | |||||||||
| Interest and fees receivable (net of allowance of $2,598 and $3,133) | 4,116 | 3,768 | |||||||||
| Due from borrowers (net of allowance of $1,084 and $1,135) | 6,978 | 5,150 | |||||||||
| Real estate owned (net of impairment of $1,110 and $465) | 16,402 | 18,574 | |||||||||
| Investments in limited liability companies | 39,132 | 53,942 | |||||||||
| Investments in developmental real estate, net | 9,719 | 14,032 | |||||||||
| Property and equipment, net | 3,160 | 3,222 | |||||||||
| Other assets | 5,002 | 6,164 | |||||||||
| Total assets | $ 460,047 | $ 491,976 | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||
| Liabilities: | |||||||||||
Notes payable (net of deferred financing costs of $1,905 and $3,713) | $ 171,349 | $ 226,526 | |||||||||
| Senior secured notes payable (net of deferred financing costs of $3,427 and $—) | 86,573 | — | |||||||||
| Repurchase agreements | — | 33,708 | |||||||||
| Mortgage payable | 917 | 1,002 | |||||||||
| Lines of credit | 19,000 | 40,000 | |||||||||
| Accounts payable and accrued liabilities | 3,255 | 4,377 | |||||||||
| Advances from borrowers | 4,016 | 4,047 | |||||||||
| Below market lease intangible | — | 665 | |||||||||
| Total liabilities | 285,110 | 310,325 | |||||||||
| Commitments and contingencies – Note 14 | |||||||||||
| Shareholders’ equity: | |||||||||||
Preferred shares - $0.001 par value; 5,000,000 shares authorized; 3,332,000 and 2,903,000 shares designated as Series A Preferred Stock at December 31, 2025 and 2024, respectively; 2,312,758 and 2,306,748 shares of Series A Preferred Stock issued and outstanding at December 31, 2025 and 2024, respectively | 2 | 2 | |||||||||
Common stock - $0.001 par value; 200,000,000 shares authorized; 47,684,955 and 49,965,306 issued and outstanding at December 31, 2025 and 2024, respectively | 48 | 47 | |||||||||
| Additional paid-in capital | 257,905 | 256,956 | |||||||||
| Cumulative net earnings | 41,826 | 35,518 | |||||||||
| Cumulative dividends paid | (124,844) | (110,872) | |||||||||
| Total shareholders’ equity | 174,937 | 181,651 | |||||||||
| Total liabilities and shareholders’ equity | $ 460,047 | $ 491,976 | |||||||||
EXHIBIT 99.1
Earnings Release - Fiscal Year 2025SACHEM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| Years Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Interest income from loans | $ 32,222 | $ 43,154 | |||||||||
| Interest income from limited liability company investments | 4,838 | 5,127 | |||||||||
| Interest expense and amortization of deferred financing costs | (25,390) | (27,798) | |||||||||
| Net interest income | 11,670 | 20,483 | |||||||||
| Provision for credit losses related to loans held for investment | (3,280) | (26,928) | |||||||||
| Gain (loss) on sale of loans | 121 | (21,973) | |||||||||
| Change in valuation allowance related to loans held for sale | 1,014 | (4,880) | |||||||||
| Net interest income (loss) after provision for credit losses related to loans held for investment, gain (loss) on sale of loans, and changes in valuation allowance related to loans held for sale | 9,525 | (33,298) | |||||||||
| Other income | |||||||||||
| Fee income from loans | 5,978 | 8,594 | |||||||||
| Income from limited liability company investments | 467 | 112 | |||||||||
| Other investment income | 141 | 391 | |||||||||
| Gain on investment securities | 1,566 | 178 | |||||||||
| Other income | 1,726 | 122 | |||||||||
| Total other income | 9,878 | 9,397 | |||||||||
| Operating expenses | |||||||||||
| Compensation and employee benefits | (7,661) | (6,824) | |||||||||
| General and administrative expenses | (6,482) | (6,841) | |||||||||
| Impairment loss on real estate owned | (1,060) | (492) | |||||||||
| Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net | 4,055 | 439 | |||||||||
| Other expenses | (1,947) | (1,952) | |||||||||
| Total operating expenses | (13,095) | (15,670) | |||||||||
| Net income (loss) | 6,308 | (39,571) | |||||||||
| Preferred stock dividends | (4,472) | (4,304) | |||||||||
| Net income (loss) attributable to common shareholders | 1,836 | (43,875) | |||||||||
| Basic and diluted earnings (losses) per Common Share | $ 0.04 | $ (0.93) | |||||||||
| Basic and diluted weighted average Common Shares outstanding | 46,893,413 | 47,413,012 | |||||||||
EXHIBIT 99.1
Earnings Release - Fiscal Year 2025SACHEM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Years Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net income (loss) | $ 6,308 | $ (39,571) | |||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Amortization of deferred financing costs | 2,202 | 2,456 | |||||||||
| Depreciation expense | 525 | 372 | |||||||||
| Stock-based compensation | 840 | 863 | |||||||||
| Provision for credit losses related to loans held for investment | 3,280 | 26,928 | |||||||||
| Change in valuation allowance related to loans held for sale | (1,014) | 4,880 | |||||||||
| (Gain) loss on sale of loans | (121) | 21,973 | |||||||||
| Impairment loss on real estate owned | 1,060 | 492 | |||||||||
| Gain on sale of investments in developmental real estate, real estate owned, and property and equipment, net | (4,055) | (439) | |||||||||
| Gain on extinguishment of debt | (140) | — | |||||||||
| Gain on investment securities | (1,566) | (178) | |||||||||
| Deferred loan fees revenue | 280 | (2,697) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Interest and fees receivable, net | (191) | 2,476 | |||||||||
| Other assets | (766) | 2,676 | |||||||||
| Due from borrowers, net | (3,681) | (1,431) | |||||||||
| Accounts payable and accrued liabilities | (268) | 1,041 | |||||||||
| Advances from borrowers | (31) | (6,951) | |||||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,662 | 12,890 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Purchase of investment securities | — | (7,767) | |||||||||
| Proceeds from the sale of investment securities | 2,147 | 43,888 | |||||||||
| Purchase of interests in limited liability companies | (6,447) | (18,271) | |||||||||
| Proceeds from limited liability companies returns of capital | 21,257 | 7,366 | |||||||||
| Proceeds from sale of real estate owned | 7,511 | 1,624 | |||||||||
| Acquisitions of and improvements to real estate owned | — | (510) | |||||||||
| Proceeds from sale of investments in developmental real estate and property and equipment | 19,874 | 9 | |||||||||
| Purchase of property and equipment | (162) | (77) | |||||||||
| Improvements in investment in rental real estate | (3,216) | (3,025) | |||||||||
| Principal disbursements for loans | (151,776) | (134,298) | |||||||||
| Principal collections on loans | 140,162 | 190,971 | |||||||||
| NET CASH PROVIDED BY INVESTING ACTIVITIES | 29,350 | 79,910 | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Proceeds from lines of credit | 75,840 | 27,959 | |||||||||
| Repayments on lines of credit | (96,840) | (49,751) | |||||||||
| Proceeds from repurchase agreements | 11,693 | 19,055 | |||||||||
| Repayments of repurchase agreements | (45,401) | (11,808) | |||||||||
| Repayment of mortgage payable | (85) | (79) | |||||||||
| Dividends paid on Common Shares | (9,500) | (16,508) | |||||||||
| Dividends paid on Series A Preferred Stock | (4,472) | (4,304) | |||||||||
| Proceeds from issuance of Senior Secured Notes | 90,000 | — | |||||||||
| Payment of deferred financing costs | (3,653) | — | |||||||||
| Proceeds from issuance of common shares, net of expenses | — | 2,049 | |||||||||
| Repurchase of Common Shares | — | (1,488) | |||||||||
| Proceeds from issuance of Series A Preferred Stock, net of expenses | 109 | 5,706 | |||||||||
| Repayment of notes payable | (56,845) | (58,163) | |||||||||
| NET CASH USED IN FINANCING ACTIVITIES | (39,154) | (87,332) | |||||||||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (7,142) | 5,468 | |||||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 18,066 | 12,598 | |||||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 10,924 | $ 18,066 | |||||||||
Sachem Capital Corp. FQ4 2025 Earnings Call Friday, March 13, 2026 12:00 PM GMT S&P Global Market Intelligence Estimates -FQ4 2025- -FQ1 2026- CONSENSUS ACTUAL SURPRISE CONSENSUS CONSENSUS EPS (GAAP) 0.01 0.03 200.00 0.01 0.02 Revenue (mm) 12.18 NA NA 11.70 46.74 Currency: USD Consensus as of Mar-13-2026 3:18 PM GMT - EPS (GAAP) - CONSENSUS ACTUAL FQ1 2025 (0.06) 0.00 FQ2 2025 0.01 0.02 FQ3 2025 0.01 0.00 FQ4 2025 0.01 0.03 -FY 2025- ACTUAL 0.04 NA SURPRISE NM 100.00 % (100.00 200.00 % 100.00 NA -FY 2026- 0.07 48.32 1 NYSEAM:SACH Transcripts SURPRISE CONSENSUS %) COPYRIGHT spglobal.com/marketintelligence © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All rights reserved
Contents Table of Conten ts Call Partic ipan ts .................................................................................. Pres en ta tion .................................................................................. Ques tion and Ans wer .................................................................................. 3 4 9 2COPYRIGHT spglobal.com/marketintelligence © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All rights reserved
Call Partic ipants EXECUTIVES J effe ry C. Walraven Executive VP & CFO John L. V illano Founder, Chairman, President & CEO Stephen Swett ANAL YSTS Christopher Whitbread Patrick Nolan Ladenburg Tha lmann & Co. Inc., Research Divis ion Gaurav Mehta Alliance Globa l Partners , Research Divis ion Copyright © 2026 S&P Global Market Intelligence, a division of S&P spglobal.com/marketintelligence MAR 13, 2026 lobal Inc. All Rights reserved. 3 SACHEM CAPITAL CORP. FQ4 2025 EARNINGS CALL G
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 Presentation Operator Greetings, and welcome to the Sachem Capital Corp. Fourth Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Steve Swett, Investor Relations. Thank you, sir. You may begin. S tephen Swett Good morning, and thank you for joining Sachem Capital Corp.'s Fourth Quarter and Full Year 2025 Earnings Conference Call. On the call from Sachem Capital today are Chief Executive Officer, John Villano, CPA; and Executive Vice President and Chief Financial Officer, Jeff Walraven. Last evening, the company announced its operating and financial results for the year ended December 31, 2025. The press release is posted on the company's website at www.sachemcapitalcorp.com. In addition, the company filed its Form 10-K last evening, which can be accessed on the company's website as well as at the SEC's website at www.sec.gov. As a reminder, remarks made on today's conference call may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today. These include the risks detailed in our annual Form 10-K and other filings with the SEC, including risks related to nonperforming loans, credit losses and market conditions. We do not undertake any obligation to update our forward-looking statements in light of new information or future events. For a more detailed discussion of the factors that may affect the company's results, please refer to our earnings release and our most recent SEC filings. During this call, the company will be discussing certain non-GAAP financial measures. More information about these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are contained in our SEC filings. With that, I'll now turn the call over to John. J ohn L. Villano Founder, Chairman, President & CEO Thank you, and thank you to everyone for joining us today. I will begin by reviewing our operating and portfolio activities for the full year 2025 and provide an update on our strategic progress. I will then turn the call over to Jeff to discuss our financial results and balance sheet, after which we will open the call to questions. 2025 represented an important stabilization year for Sachem following the portfolio repositioning actions taken in 2024. During 2025, we continued executing our plan to stabilize and strengthen the balance sheet while positioning Sachem for disciplined growth. Our focus throughout 2025 centered on preserving capital, enhancing liquidity and improving the overall credit quality of our portfolio. These efforts enabled us to return to profitability and reestablish a foundation for sustainable growth. As we enter 2026, we are increasingly focused on monetizing nonperforming assets, redeploying capital to new originations. Over the course of the year, we refinanced and amended key credit facilities, secured new senior secured financing and proactively managed our debt maturities. At year-end, debt represented approximately 61.4% of total capital, consistent with prior year and aligned with our long-term capital structure targets. We remain focused on reducing our overall cost of capital and maintaining adequate liquidity as we approach note maturities beginning in late 2026. Turning to the portfolio. As of December 31, 2025, we had 115 loans held for investment with an aggregate gross principal balance of approximately $377.4 million. During the year, we originated 30 loans totaling approximately $152.6 million and received approximately $162.7 million of loan repayments. Our weighted average contractual interest rate, inclusive of default interest was 13.1% at year-end. Portfolio performance remained broadly consistent with our expectations as we continued working through legacy nonperforming assets. As of December 31, 2025, we had approximately $117.6 million gross unpaid principal balance of nonperforming loans included in loans held for investment, up $30.5 million gross from the $87.1 million gross as of December 31, 2024. Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 4
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 While nonperforming balances remain elevated relative to historical levels, we believe the actions taken over the past year position the portfolio for accelerating resolution activity for the coming quarters. I will highlight some such activity here very shortly. As these legacy assets move through resolution, our objective is to convert those positions back to liquidity and redeploy that capital into new originations. This capital recycling is a core component of our business model and an important driver of future net interest income growth. REO decreased nominally by $2.2 million or 11.7% over the year. Full year activity reflected our continued focus on actively managing and repositioning assets through Urbane Capital, our asset management platform and working through legacy NPL and REO exposure. During the fourth quarter, we completed the sale of our Westport, Connecticut office assets, generating approximately $19.9 million in net proceeds and a $4 million book gain, further strengthening our liquidity and balance sheet. Certain foreclosure processes also concluded during the year, resulting in additions to REO that we are now positioning for monetization. Solving NPLs and REO can be a lengthy process, but we made steady progress throughout the year. As of December 31, 2025, our book value was $2.46 per share, representing a 6.8% decrease from year-end 2024. Urbane remains a key component of our strategy, providing the capability to actively manage and maximize value on assets that transition from lending into ownership through foreclosure or restructuring. Turning to Naples. Subsequent to year-end, we took a significant step in addressing this legacy 2021 exposure by acquiring 100% of the membership interest in the entity holding the condominium assets associated with our prior loan at an approximate net book value of $39.9 million with no material book gain or loss at closing. We now directly control 3 completed condominium units and the southern parcel of the property, which had previously been in dispute and approved for 4 additional units. Through Urbane, we have assumed responsibility for actively managing and monetizing these assets over the next 18 to 24 months, subject to market conditions. We also retained our $12.3 million first mortgage on the separate waterfront parcel as a senior secured lender. Consolidating control of the condominium assets while maintaining our secured lender position simplifies the capital structure and enhances execution clarity. At year-end, we had invested $36.6 million across 7 Shem Creek Capital funds, including our 20% interest in the manager, providing attractive exposure to commercial multifamily and industrial finance alongside experienced sponsors. From a capital markets perspective, during 2025, we issued $100 million of senior secured notes due 2030, reduced certain short-term borrowings and repaid maturing unsecured notes. Subsequent to year-end, we extended our $50 million Needham credit facility to March 2028 with an option to extend to 2029, further enhancing liquidity and balance sheet flexibility. Turning to the macro environment. Our industry continues to navigate a cautious lending environment. While short-term rates have declined from peak levels, medium- and longer-term borrowing costs remain elevated, keeping affordability stretched and existing home sales below historical averages. While these conditions continue to weigh on origination activity and contribute to elevated NPLs and REO across the industry, it also create opportunities for experienced lenders like Sachem to provide flexible capital solutions where traditional financing remains constrained. Our disciplined approach to credit will guide new originations with a focus on single-family and multifamily residential assets, supported by strong fundamentals, experience and sponsorship. With that, I will now turn the call over to Jeff. Jeffery C. W alraven Executive VP & CFO Thank you, John. I'll walk through Sachem Capital's financial highlights for the year ended December 31, 2025. Starting with our financial results and key drivers behind the year-over-year change. This year-end, we refined our income statement presentation to better highlight our core earnings drivers. As a credit-focused mortgage REIT, our primary source of value creation is net interest income and net interest margin. The revised format elevates those metrics and aligns our reporting more closely with industry peers. This change was presentation only and did not impact our reported net income or shareholders' equity. Net interest income for the year ended 2025 totaled $11.7 Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 5
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 million compared to $20.5 million in the prior year. The drivers of net interest income this year were $32.2 million of interest income on loans, $4.8 million of interest income from LLC investments, all Shem Creek and $25.4 million of interest expense and amortization of deferred financing costs. The net interest margin in 2025 was 3.1% compared to 4.4% in 2024. The 130 basis point decline in net interest margin reflects both structural and cyclical factors. Structurally, refinancing activity during the year increased the weighted average cost of capital. Cyclically, lower average earning assets and a higher concentration of nonaccrual loans reduced interest-earning balances. While asset yields remained strong on performing loans, 12% in 2025 as compared to 11.8% in 2024, overall margin compression occurred due to balance sheet contraction and capital structure repositioning. We expect margin stabilization to depend on continued resolution of our nonperforming loans, normalization of earning asset levels and disciplined origination activity at spreads consistent with current funding costs. A few pieces of detailed color on the above. Interest income from loans decreased year-over-year, primarily reflecting continuing lower net originations over the past 18 months since our historical peak balance in loans held for investment of $508.9 million in June of 2024, which reduced the average unpaid principal balance of loans held for investment. Year-over-year, average loans held for investment were $376.4 million versus $468.8 million. Comparatively, the effective yield on total loans held for investment was 8.6% versus 9.2% Year-over-year, average on total performing loans held for investment were $269.3 million versus $366.6 million. Comparatively, the effective yield on performing loans was 12% versus 11.8%. The difference between total portfolio yield and performing yield reflects the impact of nonaccrual loans, which do not generate current interest income. Year-over-year average nonperforming loans held for investment were $107.1 million versus $102.2 million. Interest income from limited liability company investments in the Shem Creek funds and direct loan co-investment vehicles decreased year-over-year. The decrease was primarily attributable to lower average capital deployed within these investment vehicles during 2025 rather than changes in underlying loan yields or credit performance. As underlying mortgage loans repaid, capital was returned to the company and not redeployed at prior levels within those structures. Interest expense and amortization of deferred financing costs decreased year-over-year, primarily attributable to the lower average borrowings of $277.8 million versus $301.2 million, resulting from a decline in the average earning assets. The reduction in the average earning assets reduced funding requirements with corresponding interest expense. Now turning to expenses and bottom line. Total operating expenses for the year were $13.1 million, down from $15.7 million in 2024. The decline was due to lower credit-related charges and improved expense discipline relative to our portfolio size. Compensation and benefits were $7.6 million, up $0.8 million year-over-year, driven by strategic hires and staffing aligned with the scale and complexity of the current portfolio. General and administrative expenses were $6.5 million, down $0.4 million year-over-year, primarily due to lower professional fees and continued cost discipline. Impairment on real estate owned was $1.1 million, up $0.6 million year-over-year, reflecting updated property valuations and revised liquidation time lines. Gain on the sale of real estate and developmental investments was $4.1 million, up from $0.4 million, driven by successful asset repositioning and increased disposition activity. We delivered GAAP net income of $6.3 million. After $4.5 million of Series A preferred dividends, net income attributable to common shareholders was $1.8 million or $0.04 per share compared to a loss of $0.93 per share in the prior year. On a net basis, 2025 represented a disciplined repositioning year for Sachem with a rightsized balance sheet, tighter expense control, proactive capital structure repositioning and a return to GAAP profitability despite lower average earning assets. Turning to credit portfolio mix and activity. We ended the year with 115 first lien loans, $377.4 million gross, $363.7 million net after $11.5 million of current expected credit loss allowance or approximately 3% of unpaid principal and net of deferred fees. Aggregate principal balance on our nonaccrual loans was $117.6 million, up from $87.1 million in the prior year. The weighted average contractual rate, including the default rate was 13.1%, and the weighted average remaining term is 8 months. Our collateral property mix was approximately 54% residential, 29% commercial, 12% mixed-use and 5% land. Geography remains diversified with concentrations in Connecticut and Florida of 42% and 14%, respectively, of outstanding principal. Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 6
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 REO totaled $16.4 million across 14 properties as of December 31, 2025. There were no loans held for sale as 3 loans were sold, 1 loan was transferred to real estate owned and 7 loans were transferred back to loans held for investment during the year. In 2025, we dispersed $152.6 million, collected $162.7 million and converted $22.1 million of loan principal to REO through foreclosure, blocking and tackling as we work through these legacy files, underwriting and funding new disciplined business. Our LLC investments, largely our Shem Creek funds and manager interest generated $5.3 million of total income in 2025, including the $4.8 million of interest income and $0.5 million of other income relative to the manager. These positions continue to generate attractive returns for Sachem. Our balance sheet is straightforward with total assets of $460 million and liabilities of $285.1 million, resulting in assets to liabilities coverage of approximately 1.61x. Cash at year-end was $10.9 million. During 2025, as unsecured notes matured, we began repositioning our capital structure by issuing secured notes. These notes replaced a portion of lower rate unsecured debt and reduced our reliance on repurchase agreements and lines of credit. As a result, year-over-year, unsecured notes decreased by $55.2 million, repurchase agreements decreased by $33.7 million, senior secured notes increased by $86.6 million and the Needham line decreased by $21 million. Further on our credit facilities and related covenants. On the Needham revolver, $19.0 million outstanding at prime minus 50 basis points or 6.5% at December 31, 2025, secured by pledged and assigned assets of $88.4 million with customary covenants, including at least 150% asset coverage. Senior secured notes due 2030 has $90 million outstanding at 9.875% fixed, secured and pledged and assigned assets of $198.5 million, gross value or $154.6 million net after note agreement required valuation limits and haircuts with standard leverage and liquidity covenants and a 1% commitment fee on the yet undrawn $10 million. Churchill facility, we mutually terminated and repaid in full that facility during the fourth quarter of 2025. On all of our facilities, we were in compliance with covenants as of December 31, 2025. With the $10.9 million of cash at year-end, availability under our revolving credit facility and continued resolution across the portfolio, we believe we have multiple sources of liquidity and financing flexibility to address upcoming debt maturities at December 31, 2026, and into 2027. Capital and dividends. Our book value per common share was $2.46 at year-end compared to $2.64 in the prior year. The driver was simple, preferred and common share aggregate cash dividends paid in 2025 of $14 million exceeded annual GAAP net income of $6.3 million. As always, our Board evaluates dividend levels in the context of operating performance, liquidity, REIT distributions and long-term capital management. The company's Board has addressed the first quarter 2026 dividend declaration and payment considerations as announced on March 4, 2026. This is consistent with the company's prior communication that the intended normal dividend cadence for both preferred and common will be addressed in March, June, September and December each year. Wrapping up, our management team remains focused on 3 core priorities: first, reducing nonperforming loans and monetizing REO; second, originate disciplined, high-return loans backed by strong collateral; and third, actively managing liquidity, leverage and upcoming debt maturities. Executing consistently across these 3 areas is how we intend to continue strengthening our balance sheet, stabilizing book value and supporting sustainable dividend framework going forward. I'll now turn the call back to John for closing comments. John L. V illano Founder, Chairman, President & CEO Thanks, Jeff. As we close out 2025, our focus has been on strengthening Sachem's credit profile, extending our debt maturities and enhancing liquidity following the repositioning actions taken over the past 2 years. We made meaningful progress reducing credit- related charges, improving earnings quality and diversifying our funding sources with the issuance of long-term secured notes. Looking ahead, our priorities remain centered on resolving nonperforming assets, maintaining disciplined underwriting, stabilizing net interest margin and thoughtfully addressing upcoming unsecured note maturities through operating cash flow, asset resolutions and capital markets activity as conditions permit. Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 7
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 We are confident in our strategic direction and the strength of our platform as we move into 2026, and we remain committed to driving long-term value for our shareholders. Our objective remains clear: resolve legacy assets, stabilize book value and redeploy capital into high-return originations that support a sustainable dividend framework. We look forward to updating you on our progress throughout the year. Thank you, and we will now open the call to questions. Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 8
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 Question and Answer Operator [Operator Instructions] Our first question comes from the line of Gaurav Mehta with Alliance Global Partners. Gaurav Mehta Alliance Global Partners, Research Division I wanted to ask if you could provide some color on what you're seeing in the lending market and opportunities for loan originations this year. J ohn L. Villano Founder, Chairman, Pres ident & CEO Yes. We are quite positive on the lending market as we see. We are cautious in some areas, and I'll get to that. Right now, our portfolio pipeline is full. We have attractive pricing, which has remained over the past -- the quality of our borrowers are increasing, which I think is good for our overall industry. We are seeing larger loans. It seems like with the rise in prices and [indiscernible] of availability of housing, affordable housing, we have price creep. So we're seeing bigger deals. We still have attractive pricing and our borrowers are of a much better quality than we've entertained in the past. So we are very comfortable moving into 2026, and we look forward to a very strong lending... Gaurav Mehta Alliance Globa l Partners , Research Divis ion All right. Second question I want to ask you on nonperforming loans after the Naples asset, what else is left in your portfolio? And any color on timing or resolution of the remaining nonperforming? J ohn L. Villano Founder, Chairman, Pres ident & CEO Okay. I'll try to take this in pieces. So first and foremost, in our discussion we just had, nonperforming balances have increased during 2023. Subsequent to year-end, with the acquisition of the Naples asset, we were able to take approximately $50 million of our nonperforming and move it into real estate held for development. The great thing here is we now have control. Our Urbane unit has now taken over the project with direct control not only [indiscernible] that will begin shortly, but also the management and sales of the existing [indiscernible] we do expect the completed units, and we have 3 of those to be remarketed immediately. And we could have proceeds from that in 2026. The next 18 to 24 months, we will be building the South building. You heard us talk about that. Those are 4 luxury condominiums cited in a better location than the existing units we have, so we should have better pricing. And we do think with Urbane oversight, the construction process, not have as many hitches and road blocks as we've had in the past. With respect to the rest of our nonperforming loans, these assets have been working through the foreclosure and the workout process. It just takes time. And most of them are in late-stage resolution. So we're getting very close to monetizing these assets. We've had significant inroads with respect to valuations where our foreclosure properties are getting great pricing. And some of these are getting resolved really on the courthouse steps. So we do expect significant resolutions through 2026. And you've heard us discuss this morning that this money back into our bank, we will be putting the money to work. And of course, it will increase the bottom line and overall performance. Opera tor Our next question comes from the line of Christopher Nolan with Ladenburg Thalmann. Chris topher Whitbread Pa trick Nolan Ladenburg Tha lmann & Co. Inc., Research Divis ion Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 9
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 John, your microphone is not picking up your voice very well. You're coming in and out. And your answer to the previous question was not complete at least from what I heard. Am I correct that with the change in the Naples property, $50 million was moved from nonperforming to real estate held development on Naples? John L. V illano Founder, Chairman, President & CEO That is correct. That is correct. Jeffery C. W alraven Executive VP & CFO Let me make one nuance in there. $40 million of that $50 million was moved into investment and developmental real estate. A little over $10 million of that because in total number, it's $52 million moved into -- back into performing loans. Because within the Naples environment, there was the one asset in which we have purchased and moved into investment into development, and we have modified and brought current the other asset that John referenced in his prepared comments relative to the $12 million mortgage. That is now a performing mortgage subsequent to all the activity we've had with the developer. Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division So am I correct that $50 million, the Naples was previously categorized as nonaccrual? John L. V illano Founder, Chairman, President & CEO Correct. Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division And so it's no longer categorized as nonaccruals, is that right? John L. V illano Founder, Chairman, President & CEO That is correct. Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division Okay. And so the total nonaccruals went up despite that, correct? John L. V illano Founder, Chairman, President & CEO They went up. So the -- our control of the Naples property was subsequent to year-end. So we've talked about having $117 million of nonaccruals compared to $87 million in '24. You need to back out the $50 million of nonaccruals from that $117 million number. Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division Okay. Great. And then I guess turning to the financing. The secured facility, I didn't see it on the K, but is there -- what's the limit on that, please? John L. V illano Founder, Chairman, President & CEO $100 million, of which we've taken -- we've drawn $90 million. Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 1 0
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 And do you guys have any current strategy or plans of what vehicle you're going to use for paying down the maturing debt in the second half of the year? Or are you just going to use maturing investments? John L. V illano Founder, Chairman, President & CEO It's most likely, Chris, it's going to be a combination of a couple of things, right? It will be obviously loan repayments, have availability on our credit facilities, REO monetization throughout the year. We're really trying to be patient for better interest rates... Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division John, you're cutting out again. John L. V illano Founder, Chairman, President & CEO I'm going to take my headset off. I'm sorry, Chris. Let me go back and redo that. So we are aware of the debt maturities, not only December of '26, but throughout 2027. Our liquidity is going to come from a couple of things, ongoing loan repayments, asset resolutions as we monetize the REL and also the available fundings we have on our credit facilities. And as you saw in mid-'25, we do have access to the secured credit markets. So we are taking this very seriously. It's a topic of discussion every day, and we're very proactive as we get towards December. Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division Final question is the $3.4 million gain -- real estate gain that was on the income statement. What was that related to, please? John L. V illano Founder, Chairman, President & CEO I believe that was the sale of -- we call it Glendenning. It's a Westport office asset. Jeff, am I correct with that? Jeffery C. W alraven Executive VP & CFO Yes. Yes. The gain on developmental real estate is you heard us talk before about the Westport asset, the Connecticut office. That was an asset we had purchased in '23 and had redeveloped on the interior, had leased it out and the in-place tenant offered to actually purchase the building and all of it's related, we did, and we were sold that at a $4 million gain. Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division Great. And then final question back to Naples again. So year-to-date, has there been any change in the nonaccrual levels from year- end? I'm not. John L. V illano Founder, Chairman, President & CEO Sure I get -- Go ahead. Jeff. Jeffery C. W alraven Executive VP & CFO If you're -- Chris, if you start with the $117 million balance that's as disclosed, if we were taking a snapshot as of today, the $117 million would be reduced by $40 million going to investment in developmental real estate related to the one portion of Naples asset, where we bought the asset, bought the investment, and we are completing selling the remaining 3 condos and building the South parcel or North parcel and build that and sell it out. Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 1 1
S ACHEM CAP I TAL CORP . FQ4 2 0 2 5 EARNI NGS CALL MAR 1 3 , 2 0 2 6 In addition to that same borrower/developer, there was another asset that was a loan on the books is at $12 million. We have modified in everything we did with the purchase of the asset and the modification of the loans. That $12 million loan will go into performing loans this quarter. And there has been other resolutions. So if we were putting out a -- if our 2 was already done and being put out, the nonperforming loan balances would be $50 million less at a minimum than where they currently sit today. Christopher Whitbread Patrick Nolan Ladenburg Thalmann & Co. Inc., Research Division Okay. So just to sum it up, $117 million in nonaccruals at year-end. The Naples resolution deducts at $40 million, so you got $77 million and then the other $12 million, so you're down to $65 million or so. Is that a fair characterization? John L. V illano Founder, Chairman, President & CEO Right. And there will be other resolutions that will have occurred this quarter also. A dollar amount on that. Operator Thank you. Ladies and gentlemen, that concludes our question-and-answer session, and we'll conclude our call today. We thank you for your interest and participation. You may now disconnect your lines. Copyright © 2026 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved. s p g lo b a l.c o m / m a r k e t in t e llig e n c e 1 2
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Sachem Capital
NYSE:SACH
SACH Rankings
SACH Latest News
SACH Latest SEC Filings
Mar 12, 2026
[10-K] Sachem Capital Corp. Files Annual Report
Feb 18, 2026
[8-K] Sachem Capital Corp. Reports Material Event
Jan 22, 2026
[8-K] Sachem Capital Corp. Reports Material Event