Sachem Capital Corp. is a short-term real estate lender serving investors and developers primarily in select U.S. markets, focusing on originating larger, high-quality loans while managing risk and a diversified portfolio.

# Sachem Capital Corp. - Company Summary

## Business Overview
- **Type of Business:** Real estate finance company focusing on originating, underwriting, funding, servicing, and managing short-term mortgage loans secured by first lien on real estate.
- **Primary Revenue Sources:** 
  - Interest payments from borrowers on loans
  - Fees related to origination, maintenance, servicing, modification, and extension of loans
- **Loan Characteristics:** 
  - Typically short-term (1 to 3 years)
  - Secured by first mortgages on real estate, often with additional collateral (other real estate, ownership interests, personal guarantees)
  - Usually funded in full at closing or partially for renovation/construction projects
- **Customer Profile:** 
  - Real estate investors and developers
  - Borrowers use proceeds for acquisition, renovation, rehabilitation, development, or improvement of residential or commercial properties
  - Properties may or may not generate income
- **Geographic Focus:** Primarily operates in Connecticut, Florida, Massachusetts, and New York

## Financial and Operational Highlights (2024)
- **Employees:** 29 total (28 full-time)
- **Revenue:** $57.5 million (decreased 11.2% from 2023)
  - Interest income: $43.2 million
  - Fee income: $8.6 million
  - Income from LLC investments: $5.2 million
  - Other investment income: $0.4 million
- **Net (Loss) Income:** 
  - **2024:** Net loss of **$43.9 million** (first net loss since 2017)
  - **2023:** Net income of **$12.1 million**
- **Per Share Results (2024):** 
  - Net loss per common share: **$0.93**
  - Book value per share as of December 31, 2024: **$2.64** (down from $3.83 in 2023)
- **Loan Portfolio:**
  - Loans disbursed in 2024: **$134.3 million**
  - Loans repaid: **$191 million**
  - Loans sold (32 loans with $55.8 million principal): resulted in net proceeds of **$36.1 million**
  - Outstanding loans held for investment: **157 loans** with a gross principal of **$377 million**
  - Loans ranged in size from **$35,000** to **$42.9 million**
- **Real Estate Owned & Investment:**
  - Owns 1 rental property (commercial, Westport, CT, acquired June 2023, valued at **$14.0 million**)
  - Owns 20 properties (mostly acquired via foreclosure in 2024), with total real estate assets valued at **$18.6 million**
- **Investments-Limited Liability Companies:** **$53.9 million** in real estate note and asset management investments
- **Debt & Capital:**
  - Total debt at December 31, 2024: **$304.9 million**
  - Capital structure: **62% debt** and **38% equity**
  - Repaid $58.2 million on maturing notes in 2024
  - Total assets decreased by 20.8% to **$492 million** from 2023
  - Total liabilities decreased by 20.6% to **$310 million**

## Additional Details
- **Market:** Listed on NYSE American (symbol: SACH)
- **Customer Base:** 71 shareholders of record as of March 28, 2025
- **Employees:** 29 as of December 31, 2024
- **Revenue Focus:** Growth through originating larger, higher-quality loans, and managing risk
- **Recent Strategic Actions:**
  - Terminated previous credit facilities and replaced with new ones
  - Raised capital through sales of common and preferred stock
  - Focused on larger loans, mainly in northeastern and southeastern US markets
  - Managed a high level of non-performing loans and foreclosures, specifically involving larger loans (> $1 million)

**In summary, Sachem Capital Corp. is a specialized short-term real estate lender primarily serving real estate investors and developers in select U.S. markets, with a focus on conservative loan-to-value ratios and managing a diversified portfolio of loans and properties.**

Sachem Capital Corp. is a real estate finance company that specializes in providing short-term mortgage loans secured by first mortgage liens on real property, primarily targeting real estate investors and developers.

# Company Overview: Sachem Capital Corp.

## Business Structure
- **Founded:** January 2016 as HML Capital Corp; renamed to Sachem Capital Corp. on December 15, 2016.
- **Type:** Real Estate Investment Trust (REIT) since 2017.
  
## Headquarters
- **Location:** Branford, Connecticut.

## Business Focus
Sachem Capital Corp. is a real estate finance company that specializes in:
- **Loan Origination:** Focused on short-term loans (1-3 years) secured by first mortgage liens on real property.
- **Target Borrowers:** Primarily real estate investors and developers (not owner-occupants) who use funds for:
  - Acquisition
  - Renovation
  - Rehabilitation
  - Improvement of residential or commercial properties.
  
## Loan Portfolio and Financials
- **Assets:** As of December 31, 2023, the total outstanding principal balance of the mortgage loan portfolio was approximately **$499.2 million** with **311 loans**.
- **Loan Size Range:** Loans range from approximately **$12,000 to $37.4 million**.
  - **Average Loan Size:** Approximately **$1.6 million**.
  - **Median Loan Size:** Approximately **$577,000**.
  
## Customers
- **Number of Loans:** Approximately **311 loans** outstanding as of December 31, 2023.
- **Borrower Relationships:** Ongoing relationships with many borrowers lead to repeat business; at December 31, 2023, **206 loans** totaling **$92.5 million** in the portfolio were extensions of prior loans.
  
## Employees
- **Total Employees:** **32** as of December 31, 2023, with **29** being full-time employees.

## Financial Performance
- **Revenue:** In 2023, the mortgage lending revenue was approximately **$60 million** compared to **$51.9 million** in 2022.
- **Net Income:** The company's net income, including other revenues and expenses, reflects its capacity to maintain operations and satisfy its obligations.
- **Operating Expenses:** Operating expenses increased significantly in 2023 due to higher compensation expenses and interest payments from its increased debt load.

## Strategic Focus
- Sachem Capital aims to continue growing its loan portfolio while maintaining a disciplined approach to capital preservation and risk management.
- The company intends to focus on larger-value loans and expand its geographic footprint beyond Connecticut, with loans already made in 15 states, including California, Florida, and New York.

### Summary
Sachem Capital Corp. has established itself in the real estate finance sector by focusing on short-term mortgage loans specifically designed for real estate investors and developers. With a sound portfolio and strategic intent to grow despite market volatility, the company aims to deliver attractive risk-adjusted returns to its shareholders.

Sachem Capital Corp.

10-K / March 31, 2025

10-K / April 1, 2024

10-K / March 31, 2025

Sachem Capital Corp. - Company Summary

Business Overview

Financial and Operational Highlights (2024)

Additional Details