What changed in this filing

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Item 1. Financial Statements

2025-08-05 compared with 2025-05-01 · 520 added, 334 removed, 385 unchanged (69% of the section changed)

3 unchanged sentences

(dollars in thousands, except share data)

March 31, 2025

December 31, 2024

June 30, 2025 December 31, 2024

(unaudited) (audited)

Cash and cash equivalents $ 22,474 $ 18,066

1 unchanged sentence

Loans held for investment (net of deferred loan fees of $ 2,631 and $ 1,950 )

382,108 375,041

Allowance for credit losses ( 17,645 ) ( 18,470 )

3 unchanged sentences

Due from borrowers (net of allowance of $ 1,676 and $ 1,135 )

Real estate owned, net

Real estate owned (net of impairment of $ 0 and $ 492 )

18,626 18,574

Investments in limited liability companies 48,710 53,942

1 unchanged sentence

Property and equipment, net 3,126 3,222

Other assets 7,049 6,164

Total assets $ 501,763 $ 491,976

Liabilities and Shareholders’ Equity

Notes payable (net of deferred financing costs of $ 2,741 and $ 3,713 )

$ 227,498 $ 226,526

Senior secured notes payable (net of deferred financing costs of $ 3,556 and $ 0 )

Repurchase agreements 14,442 33,708

10 unchanged sentences

2,903,000 shares designated as Series A Preferred Stock;

2,306,748 shares of Series A Preferred Stock issued and outstanding at March 31, 2025 and December 31, 2024

2,306,748 shares of Series A Preferred Stock issued and outstanding at June 30, 2025 and December 31, 2024

Common Shares - $ 0.001 par value;

200,000,000 shares authorized;

47,310,139 and 46,965,306 issued and outstanding at March 31, 2025 and December 31, 2024, respectively

47,310,139 and 46,965,306 issued and outstanding at June 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 257,384 256,956

7 unchanged sentences

(dollars in thousands, except share and per share data)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

Interest income from loans $ 7,482 $ 11,754 $ 15,370 $ 24,395

2 unchanged sentences

Other investment income 12 70 17 386

Other income 532 22 604 57

Total revenues 10,775 15,146 22,217 31,950

5 unchanged sentences

Change in valuation allowance related to loans held for sale ( 1,043 ) — ( 1,047 ) —

Loss on sale of real estate owned and property and equipment, net

Gain on sale of real estate owned and property and equipment, net ( 131 ) ( 275 ) ( 131 ) ( 264 )

Other expenses 694 439 839 943

Total operating expenses 9,709 18,263 20,122 30,793

Operating income

Other (loss) income, net

(Loss) gain on equity securities

Total other (loss) income, net

Preferred stock dividend

Net (loss) income attributable to common shareholders

Basic and diluted (loss) earnings per Common Share

Basic and diluted weighted average Common Shares outstanding

Operating income (loss) 1,066 ( 3,117 ) 2,095 1,157

Other income, net

Gain on equity securities 821 61 696 458

Total other income, net 821 61 696 458

Net income (loss) 1,887 ( 3,056 ) 2,791 1,615

Preferred stock dividends ( 1,118 ) ( 1,068 ) ( 2,235 ) ( 2,091 )

Net income (loss) attributable to common shareholders $ 769 $ ( 4,124 ) $ 556 $ ( 476 )

Basic and diluted earnings (loss) per Common Share $ 0.02 $ ( 0.09 ) $ 0.01 $ ( 0.01 )

Basic and diluted weighted average number of Common Shares outstanding 46,875,187 47,504,875 46,830,215 47,415,630

The accompanying notes, together with the Notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, are an integral part of these financial statements.

SACHEM CAPITAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)

(dollars in thousands, except share and per share data)

Three Months Ended

Other comprehensive income:

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

Net income (loss) $ 1,887 $ ( 3,056 ) $ 2,791 $ 1,615

Other comprehensive income (loss):

Reversal of losses from unrealized to realized — ( 65 ) — ( 65 )

Unrealized holding losses on available for sale (“AFS”) securities — ( 126 ) — ( 251 )

Comprehensive income

Comprehensive income (loss) $ 1,887 $ ( 3,247 ) $ 2,791 $ 1,299

Preferred stock dividend $ ( 1,118 ) $ ( 1,068 ) $ ( 2,235 ) $ ( 2,091 )

Total comprehensive (loss) income attributable to common shareholders

Total comprehensive income (loss) attributable to common shareholders $ 769 $ ( 4,315 ) $ 556 $ ( 792 )

2 unchanged sentences

(dollars in thousands, except share data)

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Preferred Shares

Common Shares

FOR THE THREE MONTHS ENDED JUNE 30, 2025

Preferred Shares Common Shares Additional

Capital Accumulated

Comprehensive

Income (Loss)

Dividends Paid

Income (Loss) Cumulative

Net Earnings Cumulative

Dividends Paid Totals

Shares Amount Shares Amount

Balance, April 1, 2025 2,306,748 $ 2 47,310,139 $ 47 $ 257,220 $ — $ 36,422 $ ( 114,352 ) $ 179,339

Stock-based compensation, less shares forfeited — — — — 164 — — — 164

Dividends paid on Series A Preferred Stock — — — — — — — ( 1,118 ) ( 1,118 )

Dividends paid on Common Shares — — — — — — — ( 2,365 ) ( 2,365 )

Net income — — — — — — 1,887 — 1,887

Balance, June 30, 2025 2,306,748 $ 2 47,310,139 $ 47 $ 257,384 $ — $ 38,309 $ ( 117,835 ) $ 177,907

FOR THE THREE MONTHS ENDED JUNE 30, 2024

Preferred Shares Common Shares Additional

Capital Accumulated

Comprehensive

Income (Loss) Cumulative

Net Earnings Cumulative

Dividends Paid Totals

Shares Amount Shares Amount

Balance, April 1, 2024 2,108,957 $ 2 47,446,051 $ 47 $ 253,670 $ 191 $ 79,760 $ ( 96,227 ) $ 237,443

Issuance of Series A Preferred Stock, net of expenses 97,171 — — — 2,061 — — — 2,061

Issuance of Common Shares, net of expenses — — — — — — — — —

Stock-based compensation — — 101,000 1 197 — — — 198

Reversal of losses from unrealized to realized — — — — — ( 65 ) — — ( 65 )

Unrealized holding losses on AFS securities — — — — — ( 126 ) — — ( 126 )

Dividends paid on Series A Preferred Stock — — — — — — — ( 1,068 ) ( 1,068 )

Dividends Paid on Common Shares — — — — — — — ( 5,219 ) ( 5,219 )

Net loss — — — — — — ( 3,056 ) — ( 3,056 )

Balance, June 30, 2024 2,206,128 $ 2 47,547,051 $ 48 $ 255,928 $ — $ 76,704 $ ( 102,514 ) $ 230,168

SACHEM CAPITAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited)

(dollars in thousands, except share data)

FOR THE SIX MONTHS ENDED JUNE 30, 2025

Preferred Shares Common Shares Additional

Capital Accumulated

Comprehensive

Income (Loss) Cumulative

Net Earnings Cumulative

Dividends Paid Totals

Shares Amount Shares Amount

Balance, January 1, 2025 2,306,748 $ 2 46,965,306 $ 47 $ 256,956 $ — $ 35,518 $ ( 110,872 ) $ 181,651

2 unchanged sentences

Dividends paid on Common Shares — — — — — — — ( 4,728 ) ( 4,728 )

Balance, March 31, 2025

FOR THE THREE MONTHS ENDED MARCH 31, 2024

Preferred Shares

Common Shares

Net income — — — — — — 2,791 — 2,791

Balance, June 30, 2025 2,306,748 $ 2 47,310,139 $ 47 $ 257,384 $ — $ 38,309 $ ( 117,835 ) $ 177,907

FOR THE SIX MONTHS ENDED JUNE 30, 2024

Preferred Shares Common Shares Additional

Capital Accumulated

Comprehensive

Income (Loss)

Dividends Paid

Income (Loss) Cumulative

Net Earnings Cumulative

Dividends Paid Totals

Shares Amount Shares Amount

Balance, January 1, 2024 2,029,923 $ 2 46,765,483 $ 47 $ 249,826 $ 316 $ 75,089 $ ( 95,204 ) $ 230,076

5 unchanged sentences

Dividends paid on Series A Preferred Stock — — — — — — — ( 2,091 ) ( 2,091 )

Balance, March 31, 2024

Dividends Paid on Common Shares — — — — — — — ( 5,219 ) ( 5,219 )

Net income — — — — — — 1,615 — 1,615

Balance, June 30, 2024 2,206,128 $ 2 47,547,051 $ 48 $ 255,928 $ — $ 76,704 $ ( 102,514 ) $ 230,168

SACHEM CAPITAL CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(dollars in thousands)

Three Months Ended

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 2,791 $ 1,615

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization of deferred financing costs 1,101 1,275

Depreciation expense

Depreciation and amortization expense 234 189

Stock-based compensation 428 437

1 unchanged sentence

Change in valuation allowance related to loans held for sale ( 1,047 ) —

Loss on sale of real estate owned and property and equipment, net

Loss (gain) on equity securities

Impairment loss on real estate owned — 77

Gain on sale of real estate owned and property and equipment, net ( 131 ) ( 264 )

Gain on equity securities ( 696 ) ( 458 )

Change in deferred loan fees 681 200

1 unchanged sentence

Interest and fees receivable, net ( 462 ) 411

Other assets ( 1,010 ) 80

Due from borrowers, net ( 2,277 ) ( 624 )

7 unchanged sentences

Purchase of interests in limited liability companies ( 5,731 ) ( 5,110 )

Proceeds from limited liability companies returns of capital

Proceeds from investments in limited liability companies 10,963 1,194

Proceeds from sale of real estate owned 1,559 1,403

Acquisitions of and improvements to real estate owned

Purchase of property and equipment ( 43 ) ( 26 )

Improvements in investment in developmental real estate

Investments in developmental real estate ( 1,022 ) ( 1,424 )

Principal disbursements for loans ( 80,952 ) ( 84,328 )

Principal collections on loans 71,394 79,628

NET CASH PROVIDED BY INVESTING ACTIVITIES

NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES ( 2,658 ) 27,534

CASH FLOWS FROM FINANCING ACTIVITIES

4 unchanged sentences

Repayment of mortgage payable ( 42 ) ( 39 )

Repayment of notes payable — ( 23,647 )

Dividends paid on Common Shares ( 4,728 ) ( 10,363 )

Dividends paid on Series A Preferred Stock ( 2,235 ) ( 2,091 )

Proceeds from issuance of Senior Secured Notes 50,000 —

Payments of deferred financing costs ( 3,593 ) —

Proceeds from issuance of Common Shares, net of expenses — 2,050

1 unchanged sentence

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 6,374 ( 40,734 )

NET INCREASE IN CASH AND CASH EQUIVALENTS

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,408 ( 2,021 )

CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD 18,066 12,598

4 unchanged sentences

(dollars in thousands)

Six Months Ended

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION

1 unchanged sentence

Real estate acquired in connection with foreclosure of certain mortgages $ 6,298 $ 1,627

Loans held for sale transferred to loans held for investment $ 6,479 $ —

Developmental real estate acquired in settlement of loan held for investment $ 1,696 $ —

3 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Sachem Capital Corp.

15 unchanged sentences

The balance sheet information as of December 31, 2024 is derived from audited financial statements, but does not include all disclosures required by GAAP.

Results of operations for the three month period ended March 31, 2025, is not necessarily indicative of the operating results to be attained in the entire fiscal year or for any subsequent period.

Results of operations for the three and six months ended June 30, 2025, are not necessarily indicative of the operating results to be attained in the entire fiscal year or for any subsequent period.

Basis of Presentation and Principles of Consolidation

The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Management bases the use of estimates on (a) various assumptions that consider prior reporting results, (b) the Company’s projections regarding future operations and (c) general financial market and local and general economic conditions.

The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Management bases the use of estimates on (a) various assumptions that consider prior reporting results, (b) projections regarding future operations and (c) general financial market and local and general economic conditions.

Actual amounts could differ from those estimates.

Significant estimates include the provisions for current expected credit losses, loans held for sale at fair value and real estate owned.

Significant estimates include the provisions for Current Expected Credit Losses ("CECL"), loans held for sale at fair value and real estate owned.

The accompanying unaudited condensed consolidated financial statements of the Company include the accounts of all subsidiaries in which the Company has control over significant operating, financial and investing decisions of the entity.

All intercompany accounts and transactions have been eliminated in consolidation.

Variable Interest Entity

Variable Interest Entities

On March 20, 2025, the Company formed SN Holdings LLC (“SN Holdings”), a wholly owned subsidiary of the Company, for the sole purpose of acting as the borrower under a new revolving credit facility with Needham Bank (the “2025 Needham Credit Facility”).

Simultaneously with the execution of the new facility, the Company terminated and repaid in full the outstanding balance under its previous facility with Needham Bank.

Simultaneously with the execution of the2025 Needham Credit Facility, the Company terminated and repaid in full the outstanding balance under its previous credit facility with Needham Bank.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

SN Holdings is a variable interest entity (“VIE”) under the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810-10, Consolidation , as it was established with insufficient equity at risk and does not have independent operations apart from the parent company.

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

The Company has determined that it is the primary beneficiary of SN Holdings because it has both (i) the power to direct the activities that most significantly impact SN Holdings’ economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be significant to SN Holdings, primarily through its role as the guarantor of the 2025 Needham Credit Facility and through its ability to direct all operational and financing decisions.

Accordingly, SN Holdings has been consolidated in the Company’s financial statements.

As of March 31, 2025, SN Holdings had total assets of $ 83.5 million and total liabilities of $ 36.1 million, consisting primarily of collateralized mortgage loans and borrowings under the 2025 Needham Credit Facility.

The assets of SN Holdings can only be used to settle obligations of SN Holdings and are not available to the Company or its creditors, other than as permitted under the intercompany guaranty and lien release provisions of the Credit Agreement.

Accordingly, SN Holdings has been consolidated in the Company’s condensed consolidated financial statements.

As of June 30, 2025, SN Holdings had total assets of $ 78.9 million and total liabilities of $ 28.4 million, consisting primarily of collateralized mortgage loans and borrowings under the 2025 Needham Credit Facility.

On June 11, 2025, Sachem Capital Corporation Holdings, LLC ("Holdings"), an indirect, wholly-owned subsidiary of the Company, consummated a private placement of $ 100.0 million aggregate principal amount of Senior Secured Notes due June 11, 2030 (the "Secured Notes") to various institutional investors under a Note Purchase and Guaranty Agreement (the "Agreement").

See Note 11 - Secured Notes Payable.

Holdings was formed for the sole purpose of acting as the issuer of the Secured Notes.

Holdings is a variable interest entity (“VIE”) under the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810-10, Consolidation , as it was established with insufficient equity at risk and does not have independent operations apart from the Company.

The Company has determined that it is the primary beneficiary of Holdings because it has both (i) the power to direct the activities that most significantly impact Holdings’ economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be significant to Holdings, primarily through its role as the guarantor of the Secured Notes and through its ability to direct all operational and financing decisions.

Accordingly, Holdings has been consolidated in the Company’s condensed consolidated financial statements.

As of June 30, 2025, Holdings had total assets of $ 217.6 million and total liabilities of $ 49.2 million, consisting primarily of collateralized mortgage loans and indebtedness evidenced by the Secured Notes.

The assets of Holdings can only be used to settle obligations of Holdings and are not available to the Company or its creditors.

Reclassifications

Certain amounts included in the Company’s June 30, 2024 condensed consolidated financial statements have been reclassified to conform to the June 30, 2025 presentation.

These reclassifications had no effect on net income for the three and six months ended June 30, 2024.

Fair Value Measurement

1 unchanged sentence

Fair Value Measurement

(in thousands)

March 31, 2025

December 31, 2024

(in thousands) June 30, 2025 December 31, 2024

Investment securities $ 1,039 $ 1,517

Loans held for sale, net 8,830 10,970

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

The following table illustrates assets and liabilities measured at fair value on a nonrecurring basis:

Fair Value Measurement

(in thousands)

March 31, 2025

December 31, 2024

(in thousands) June 30, 2025 December 31, 2024

Individually evaluated loans, net of allowance for credit losses $ 83,564 $ 80,757

Real estate owned, net 18,626 18,574

There were no nonrecurring fair value adjustments to the above assets for the three months ended March 31, 2025.

Carrying amounts and fair values of financial instruments at March 31, 2025 and December 31, 2024:

Carrying Amount

Fair Value Measurement

(in thousands)

March 31, 2025

December 31, 2024

March 31, 2025

December 31, 2024

There were no nonrecurring fair value adjustments to the above assets for the six months ended June 30, 2025.

Carrying amounts and fair values of financial instruments at June 30, 2025 and December 31, 2024:

Carrying Amount Fair Value Measurement

(in thousands) June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024

Cash and cash equivalents $ 22,474 $ 18,066 $ 22,474 $ 18,066

8 unchanged sentences

Mortgage payable 960 1,002 960 1,002

Loans held for investment, net/Loans held for sale, net/Real estate owned, net (Level 3):

The Company utilizes third-party appraisals of collateral in determining the fair value of the underlying asset, with unobservable inputs of appraised value adjustments made by management for qualitative factors such as economic conditions and estimated liquidation expenses.

The Company estimates liquidation as a selling cost percentage in connection with the asset, which typically ranges from 1-8%.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Impact of Fair Value of Available-for-sale Securities on Other Comprehensive Income

The following table presents the impact of the Company’s AFS securities - debt securities on its Other Comprehensive Income (“OCI”) for the three months ended March 31, 2025 and 2024:

Three Months Ended

(in thousands)

The following table presents the impact of the Company’s AFS securities - debt securities on its Other Comprehensive Income (“OCI”) for the three and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

(in thousands) (in thousands)

OCI from AFS securities – debt securities:

4 unchanged sentences

Balance at end of period $ — $ — $ — $ —

As of March 31, 2025 and December 31, 2024, the Company held no debt securities.

As of June 30, 2025 and December 31, 2024, the Company held no debt securities.

Loans and Allowance for Credit Losses

2 unchanged sentences

Loans held for investment

As of March 31, 2025 and December 31, 2024, the Company had 143 and 157 loans held for investment, respectively.

As of March 31, 2025 and December 31, 2024, the Company had direct reserves on outstanding principal for loans held for investment of $ 13.1 million and $ 13.3 million, respectively.

As of June 30, 2025 and December 31, 2024, the Company had 135 and 157 loans held for investment, respectively.

As of June 30, 2025 and December 31, 2024, the Company had direct reserves on outstanding principal for loans held for investment of $ 11.9 million and $ 13.3 million, respectively.

Loans held for sale

1 unchanged sentence

The Company does not originate loans with the intent to designate them as loans held for sale.

As of both March 31, 2025 and December 31, 2024, the Company maintained eleven loans held for sale with a gross outstanding principal balance of $ 15.9 million, of which had an aggregate valuation allowance of $ 4.9 million in connection with pricing based on lower of cost or market.

As of both March 31, 2025 and December 31, 2024, such loans were on nonaccrual status and in pending/pre-foreclosure.

Nevertheless, as of June 30, 2025, the Company had designated seven loans as held for sale.

These seven loans had a gross outstanding principal balance of $ 9.4 million and an aggregate valuation allowance of $ 0.5 million based on the lower of cost or market value.

As of December 31, 2024, the Company had designated eleven loans as held for sale.

These eleven loans had a gross outstanding principal balance of $ 15.9 million and an aggregate valuation allowance of $ 4.9 million based on the lower of cost or market value.

As of both June 30, 2025 and December 31, 2024, such loans were on non-accrual status and pending foreclosure.

The below table represents the Company's loans held for sale as of June 30, 2025:

Balance as of December 31, 2024 Transfers in Change in valuation allowance Transfers out, net Balance as of

June 30, 2025

(in thousands)

Loans held for sale, net $ 10,970 $ — $ 1,047 $ ( 3,187 ) $ 8,830

Total loans held for sale, net $ 10,970 $ — $ 1,047 $ ( 3,187 ) $ 8,830

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Loan portfolio

As of March 31, 2025 and December 31, 2024, loans held for investment on nonaccrual status had an outstanding principal balance of $ 107.6 million and $ 87.0 million, respectively.

The nonaccrual loans are inclusive of loans pending foreclosure and loans held for sale.

Interest income recorded on nonaccrual loans due to payments received for the three months ended March 31, 2024 was $ 0.3 million, while such income for the three months ended March 31, 2025 was nominal.

As of June 30, 2025 and December 31, 2024, loans held for investment on non-accrual status had an outstanding principal balance of $ 119.6 million and $ 87.0 million, respectively.

The non-accrual loans are inclusive of loans pending foreclosure and loans held for sale.

The below table summarizes the Company’s loan portfolio by the past due status:

Loans held for investment

(in thousands)

30-59 days past due

60-89 days past due

Greater than 90 days

(in thousands) Current 30-59 days past due 60-89 days past due Greater than 90 days Total

As of June 30, 2025 $ 257,780 $ 6,065 $ 1,295 $ 119,599 $ 384,739

As of March 31, 2025 $ 220,538 $ 37,617 $ 2,114 $ 107,591 $ 367,860

As of December 31, 2024 $ 223,513 $ 49,460 $ 16,936 $ 87,082 $ 376,991

As of June 30, 2025, the Company’s mortgage loan portfolio includes loans with an outstanding principal balance amount up to $ 38.3 million with stated interest rates ranging from 6.5 % to 15.0 %.

The default interest rate is generally 18.0 %, but could be more or less depending on state usury laws and other considerations deemed relevant by the Company.

As of June 30, 2025 and December 31, 2024, the Company had one borrower representing 13.1 % and 14.0 % of the outstanding mortgage loan portfolio, or $ 50.4 million and $ 55.0 million, respectively.

Presented below is the Company’s loans held for investment portfolio by geographical location as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

(in thousands) Carrying Value % of Portfolio Carrying Value % of Portfolio

New England $ 173,756 45.2 % $ 179,421 47.6 %

Mid-Atlantic 46,288 12.0 % 42,304 11.2 %

South 164,695 42.8 % 151,165 40.1 %

West — — % 4,101 1.1 %

Total $ 384,739 100.0 % $ 376,991 100.0 %

The following tables allocate the carrying value of the Company’s loan portfolio based on credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated:

June 30, 2025 Year Originated (1)

FICO Score (2) (in thousands)

Value 2025 2024 2023 2022 2021 Prior

Loans held for investment:

Under 500 $ 300 $ — $ 300 $ — $ — $ — $ —

501-550 2,860 — — — — 1,060 1,800

551-600 1,096 — 1,096 — — — —

601-650 26,474 2,336 7,066 1,163 1,795 7,447 6,667

651-700 58,286 1,783 3,609 6,861 12,799 31,891 1,343

701-750 152,735 18,443 6,696 38,858 15,625 72,138 975

751-800 134,228 24,943 23,847 39,735 24,841 20,862 —

801-850 8,760 2,534 — 1,541 4,685 — —

Total $ 384,739 $ 50,039 $ 42,614 $ 88,158 $ 59,745 $ 133,398 $ 10,785

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

As of March 31, 2025, the Company’s mortgage loan portfolio includes loans ranging in size of $ 0.03 million up to $ 37.9 million with stated interest rates ranging from 6.5 % to 15.0 %.

The default interest rate is generally 18.0 % but could be more or less depending on state usury laws and other considerations deemed relevant by the Company.

As of March 31, 2025 and December 31, 2024, the Company had one borrower representing 13.6 % and 14.0 % of the outstanding mortgage loan portfolio, or $ 50.0 million and $ 55.0 million, respectively.

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

December 31, 2024 Year Originated (1)

FICO Score (2) (in thousands)

Value 2024 2023 2022 2021 2020 Prior

Loans held for investment:

Under 500 $ 140 $ 140 $ — $ — $ — $ — $ —

501-550 2,860 — — — 1,060 — 1,800

551-600 7,094 1,222 290 2,170 1,816 636 960

601-650 28,779 8,432 3,347 1,798 7,411 6,149 1,642

651-700 35,711 4,250 7,177 10,302 12,079 660 1,243

701-750 159,575 6,275 40,459 11,982 97,980 1,023 1,856

751-800 124,599 26,465 32,016 36,280 28,427 1,411 —

801-850 18,233 — 415 17,818 — — —

Total $ 376,991 $ 46,784 $ 83,704 $ 80,350 $ 148,773 $ 9,879 $ 7,501

_______________________________________________________________

(1) Represents the year of origination or amendment where the loan was subject to a full re-underwriting.

(2) The FICO Scores are calculated at the inception of the loan and are updated if the loan is modified or on an as needed basis.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Loan modifications made to borrowers experiencing financial difficulty

The tables below present loan modifications during the periods indicated made to borrowers experiencing financial difficulty:

(in thousands) Three Months Ended June 30, 2025

Carrying Value % of Total

Carrying Value of

Loans held for investment, net Financial Effect

Principal modification, with no term extension $ 14,042 3.5 % Unpaid interest/taxes/charges added to principal balance

Term extension $ 25,559 6.4 % A weighted average of 7.7 months were added to the life of the loans

(in thousands) Three Months Ended June 30, 2024

Carrying Value % of Total

Carrying Value of

Loans held for investment, net Financial Effect

Principal modification, with no term extension $ 3,408 0.7 % Unpaid interest/taxes/charges added to principal balance

Term extension $ 61,008 12.2 % A weighted average of 12.0 months were added to the life of the loans

(in thousands) Six Months Ended June 30, 2025

Carrying Value % of Total

Carrying Value of

Loans held for investment, net Financial Effect

Principal modification, with no term extension $ 14,042 3.5 % Unpaid interest/taxes/charges added to principal balance

Term extension $ 47,702 11.9 % A weighted average of 7.4 months were added to the life of the loans

Six Months Ended June 30, 2024

Carrying Value % of Total

Carrying Value of

Loans held for investment, net Financial Effect

Principal modification, with no term extension 21,373 4.3 % Unpaid interest/taxes/charges added to principal balance

Term extension 104,452 20.9 % A weighted average of 10.5 months were added to the life of the loans

As of June 30, 2025, the Company had commitments to lend additional amounts totaling approximately $ 7.7 million to borrowers experiencing financial difficulty.

During the six months ended June 30, 2025, the Company modified the interest rate on five loans with an outstanding principal balance of $ 18.9 million.

The change in the rate was due to taking the loan off default rate.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

The table below presents the performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty.

Of the loans that were modified in the last 12 months to borrowers experiencing financial difficulty, none have defaulted during the period.

As of June 30, 2025

(in thousands) Current 90-119 days past due 120+ days past due Total

Principal modification, with no term extension $ 15,268 $ — $ — $ 15,268

Term extension 61,692 12,895 — 74,587

Deferred loan fees

As of March 31, 2025 and December 31, 2024, the Company had $ 2.2 million and $ 2.0 million of deferred loan fee revenue relating to loans held for investment, respectively.

There were no such deferred fees for loans held for sale as of March 31, 2025 and December 31, 2024.

As of June 30, 2025 and December 31, 2024, the Company had $ 2.6 million and $ 2.0 million.

respectively, of deferred loan fee revenue relating to loans held for investment.

There were no such deferred fees for loans held for sale as of June 30, 2025 and December 31, 2024.

Allowance for credit losses

The below table represents the financial statement line items that are impacted by the allowance for credit losses for the three months ended March 31, 2025:

Balance as of

Provision for (recovery of) credit

Balance as of

December 31, 2024

losses related to loans

March 31, 2025

The below table represents the financial statement line items that are impacted by the allowance for credit losses for the three months ended June 30, 2025:

Balance as of March 31, 2025 Provision for (recovery of) credit

losses related to loans Reclassification of loans held for sale to loans held for investment Charge-offs Balance as of

June 30, 2025

(in thousands)

Loans held for investment $ 18,122 $ ( 3,256 ) $ 3,292 $ ( 513 ) $ 17,645

Interest and fees receivable 2,981 93 — — 3,074

1 unchanged sentence

Unfunded commitments 864 165 — — 1,029

Real estate owned — 3,978 — ( 3,978 ) —

Total allowance for credit losses $ 23,923 $ 925 $ 3,292 $ ( 4,716 ) $ 23,424

The following table summarizes the activity in the loans held for investment allowance for credit losses by geographic location for the three months ended March 31, 2025:

Provision for

Allowance for credit losses

The below table represents the financial statement line items that are impacted by the allowance for credit losses for the six months ended June 30, 2025:

Balance as of December 31, 2024 Provision for (recovery of) credit

losses related to loans Reclassification of loans held for sale to loans held for investment Charge-offs Balance as of

June 30, 2025

(in thousands)

Loans held for investment $ 18,470 $ ( 2,983 ) $ 3,292 $ ( 1,134 ) $ 17,645

Interest and fees receivable 3,133 ( 59 ) — — 3,074

Due from borrower 1,135 936 — ( 395 ) 1,676

Unfunded commitments 924 105 — — 1,029

Real estate owned — 3,978 — ( 3,978 ) —

Total allowance for credit losses $ 23,662 $ 1,977 $ 3,292 $ ( 5,507 ) $ 23,424

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

The following table summarizes the activity in the allowance for credit losses by geographic location with respect to loans held for investment for the three months ended June 30, 2025:

Allowance for credit losses as of March 31, 2025 Provision for

(recovery of) credit losses

related to loans Reclassification of loans held for sale to loans held for investment Charge-offs Allowance for credit losses

as of June 30,

(in thousands)

New England $ 12,878 $ ( 5,704 ) $ 3,292 $ — $ 10,466

Mid-Atlantic 1,864 2,658 — ( 466 ) 4,056

South 1,460 ( 123 ) — ( 47 ) 1,290

West 1,920 ( 87 ) — — 1,833

Total $ 18,122 $ ( 3,256 ) $ 3,292 $ ( 513 ) $ 17,645

The following table summarizes the activity in the allowance for credit losses by geographic location with respect to loans held for investment for the six months ended June 30, 2025:

Allowance for credit losses as of

December 31, 2024 Provision for

(recovery of) credit losses

as of March 31,

December 31, 2024

related to loans

related to loans Reclassification of loans held for sale to loans held for investment Charge-offs Allowance for credit losses

as of June 30,

(in thousands)

The following table presents charge-offs by fiscal year of origination for the three months ended March 31, 2025:

New England $ 12,844 $ ( 5,670 ) $ 3,292 $ — $ 10,466

Mid-Atlantic 1,857 2,665 — ( 466 ) 4,056

South 1,802 156 — ( 668 ) 1,290

West 1,967 ( 134 ) — — 1,833

Total $ 18,470 $ ( 2,983 ) $ 3,292 $ ( 1,134 ) $ 17,645

The following table presents charge-offs on loan principal by fiscal year of origination for the three months ended June 30, 2025:

2025 2024 2023 2022 2021 Prior Total

(in thousands)

Current period charge-offs $ — $ — $ — $ — $ 513 $ — $ 513

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Presented below is the Company’s loans held for investment portfolio by geographical location:

March 31, 2025

December 31, 2024

Total $ — $ — $ — $ — $ 513 $ — $ 513

The following table presents charge-offs on loan principal by fiscal year of origination for the six months ended June 30, 2025:

2025 2024 2023 2022 2021 Prior Total

(in thousands)

Carrying Value

% of Portfolio

Carrying Value

% of Portfolio

March 31, 2025

Year Originated (1)

FICO Score (2) (in thousands)

Loans held for investment:

December 31, 2024

Year Originated (1)

FICO Score (2) (in thousands)

Loans held for investment:

Represents the year of origination or amendment where the loan was subject to a full re-underwriting.

The FICO Scores are calculated at the inception of the loan and are updated if the loan is modified or on an as needed basis.

Current period charge-offs $ — $ 134 $ — $ 487 $ 513 $ — $ 1,134

Total $ — $ 134 $ — $ 487 $ 513 $ — $ 1,134

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Loan modifications made to borrowers experiencing financial difficulty

The tables below presents loan modifications during the period made to borrowers experiencing financial difficulty:

Three Months Ended March 31, 2025

Carrying Value of

(in thousands)

Carrying Value

Loans held for investment, net

Financial Effect

Term extension

A weighted average of 6.7 months were added to the life of the loans

The Company monitors the performance of loans modified during the period to borrowers experiencing financial difficulty.

The table below presents the performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty.

The Company considers loans that are 90 days past due to be in payment default.

Three Months Ended March 31, 2025

(in thousands)

90-119 days past due

120+ days past due

Term extension

The Company has committed to lend additional amounts totaling approximately $ 0.8 million to borrowers experiencing financial difficulty.

Of the loans that were modified that experienced financial difficulties during the three months ended March 31, 2025, no loans defaulted within the three months of the modification.

Of the loans that were modified that experienced financial difficulties during the period, one loan with an outstanding principal balance of $ 0.6 million experienced a rate decrease due to the modification.

The change in the rate was taking the loan off default rate.

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Investment in Developmental Real Estate, net

As of March 31, 2025 and December 31, 2024, investment in developmental real estate, net consisted of the following:

Investment in Rental

March 31, 2025

Accumulated Depreciation

As of June 30, 2025 and December 31, 2024, investment in developmental real estate, net consisted of the following:

June 30, 2025 Cost Accumulated Depreciation Investment in Developmental

Real Estate, Net

(in thousands)

Land $ 6,476 $ — $ 6,476

Building 4,936 ( 185 ) 4,751

Site improvements 359 ( 42 ) 317

1 unchanged sentence

Construction in progress 3,898 — 3,898

Investment in Rental

December 31, 2024

Accumulated Depreciation

Lease intangibles 81 ( 3 ) 78

Total $ 16,934 $ ( 270 ) $ 16,664

December 31, 2024 Cost Accumulated Depreciation Investment in Developmental

Real Estate, Net

(in thousands)

Land $ 4,557 $ — $ 4,557

Building 4,936 ( 154 ) 4,782

Site improvements 359 ( 30 ) 329

1 unchanged sentence

Construction in progress 3,141 — 3,141

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

For the three months ended March 31, 2025 and 2024, depreciation and amortization related to the asset was $ 0.1 million and $ 0.1 million, respectively, which is presented in other expenses on the Company’s condensed consolidated statements of operations.

Tenant improvements and other intangibles associated with the tenant have begun amortizing in connection with the commencement of the lease that occurred in February 2025.

The amounts of amortized costs were nominal for the three months ended March 31, 2025.

Lease intangibles 41 — 41

Total $ 14,216 $ ( 184 ) $ 14,032

For the six months ended June 30, 2025 and 2024, depreciation and amortization expense related to developmental real estate was $ 0.1 million and $ 0.1 million, respectively, which is presented in other expenses on the Company’s Condensed Consolidated Statements of Operations .

Tenant improvements and other intangibles associated with the tenant began amortizing upon commencement of the lease that occurred in February 2025.

Amortization related to tenant improvements and intangibles was $ 43,000 for the six months ended June 30, 2025 compared to no such amortization for the six months ended June 30, 2024.

Additionally, the Company leases space to a tenant under an operating lease.

2 unchanged sentences

The lease commenced February 2025 with a cash rent abatement period of 425 days.

As of March 31, 2025, future minimum rents under non-cancelable operating leases were as follows:

Years Ending December 31,

(in thousands)

2025 (remaining nine months)

As of March 31, 2025, estimated annual amortization of acquired below-market lease intangible is as follows:

Years Ending December 31,

(in thousands)

2025 (remaining nine months)

As of March 31, 2025, estimated annual amortization of acquired in-place lease intangible is as follows:

Years Ending December 31,

(in thousands)

2025 (remaining nine months)

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

As of March 31, 2025, estimated annual amortization of deferred leasing costs is as follows:

Years Ending December 31,

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

As of June 30, 2025, future minimum rents under non-cancelable operating leases were as follows:

Years Ending December 31, Amount

(in thousands)

2025 (remaining nine months)

2025 (remaining six months) $ —

Thereafter 8,852

Total $ 13,665

The Company acquired one property in investment in developmental real estate that was subject to an in place lease.

In the purchase price allocation, the Company recorded an acquired below market lease intangible of $ 0.7 million.

The estimated annual amortization of the below market lease intangible is $ 0.1 million per year.

Real Estate Owned (“REO”)

Property acquired through foreclosure are included on the Condensed Consolidated Balance Sheets as real estate owned and further categorized as held for sale or held for rental, described in detail below.

As of March 31, 2025 and December 31, 2024, real estate owned, net totaled $ 18.9 million and $ 18.6 million, respectively.

During the three months ended March 31, 2025, the Company’s real estate owned portfolio recorded no impairment loss compared to an impairment loss of $ 0.5 million for the year ended December 31, 2024, which is considered a Level 3 non-recurring fair market value adjustment.

The following table presents the Company’s REO as of March 31, 2025 (in thousands):

March 31, 2025

As of June 30, 2025 and December 31, 2024, real estate owned, net totaled $ 18.6 million.

During the six months ended June 30, 2025, the Company’s real estate owned portfolio recorded no impairment loss compared to an impairment loss of $ 0.5 million for the year ended December 31, 2024, which is considered a Level 3 non-recurring fair market value adjustment.

The following table presents the Company’s REO as of June 30, 2025:

June 30, 2025

(in thousands)

Real estate owned at the beginning of period

Real estate owned at December 31, 2024 $ 18,574

Principal basis transferred to real estate owned 6,298

Charge-off’s on principal transferred ( 3,978 )

Proceeds from sale of real estate owned ( 1,559 )

Loans origination from sale of real estate owned ( 840 )

Gain on sale of real estate owned 131

Balance at end of period $ 18,626

As of March 31, 2025, REO included $ 0.8 million of real estate held for rental and $ 18.1 million of real estate held for sale.

As of June 30, 2025, REO included $ 0.8 million of real estate held for rental and $ 17.8 million of real estate held for sale.

As of December 31, 2024, REO included $ 0.8 million of real estate held for rental and $ 17.8 million of real estate held for sale.

Properties Held for Sale

During the three months ended March 31, 2025, the Company sold five properties held for sale and recognized a gain on sale that was nominal.

During the three months ended March 31, 2024, the Company sold one property held for sale and recognized a gain on sale that was nominal.

Such sales are included in, “Loss on sale of real estate owned and property and equipment, net” on the Company’s condensed consolidated Statements of Operations.

Properties Held for Rental

As of March 31, 2025 and December 31, 2024, one property, a commercial building, was held for rental.

The tenant signed a 5-year lease that commenced on August 1, 2021.

During the six months ended June 30, 2025, the Company sold six properties held for sale and recognized a gain on sale of $ 0.1 million.

During the six months ended June 30, 2024, the Company sold eleven property held for sale and recognized a gain on sale of $ 0.3 million.

Such sales are included in gain on sale of real estate owned and property and equipment, net on the Company’s Condensed Consolidated Statements of Operations.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

As of March 31, 2025, future minimum rents under this lease were as follows:

Years Ending December 31,

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Properties Held for Rental

As of June 30, 2025 and December 31, 2024, one property, a commercial building, was held for rental.

The tenant signed a five-year lease that commenced on August 1, 2021.

As of June 30, 2025, future minimum rents under this lease were as follows:

Years Ending December 31, Amount

(in thousands)

2025 (remaining nine months)

Property and Equipment, net

The following tables represent the Company’s property and equipment, net as of March 31, 2025 and December 31, 2024:

March 31, 2025

Accumulated Depreciation

2025 (remaining six months) $ 27

Property and Equipment, net

The following tables represent the Company’s property and equipment, net as of June 30, 2025 and December 31, 2024:

June 30, 2025 Cost Accumulated Depreciation Property and Equipment, Net

(in thousands)

Building $ 2,594 $ ( 175 ) $ 2,419

Land 255 — 255

Furniture and fixtures 308 ( 151 ) 157

Computer hardware and software 300 ( 260 ) 40

Vehicles 435 ( 180 ) 255

Total property and equipment, net $ 3,892 $ ( 766 ) $ 3,126

December 31, 2024

Accumulated Depreciation

Property and Equipment, Net

December 31, 2024 Cost Accumulated Depreciation Property and Equipment, Net

(in thousands)

Building $ 2,557 $ ( 110 ) $ 2,447

Land 255 — 255

Furniture and fixtures 308 ( 117 ) 191

Computer hardware and software 295 ( 246 ) 49

Vehicles 435 ( 155 ) 280

Total property and equipment, net $ 3,850 $ ( 628 ) $ 3,222

As of March 31, 2025 and December 31, 2024, other assets consisted of the following:

March 31, 2025

December 31, 2024

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

As of June 30, 2025 and December 31, 2024, other assets consisted of the following:

June 30, 2025 December 31, 2024

(in thousands)

1 unchanged sentence

Other receivables 1,935 1,793

Other assets 412 190

Notes receivable 2,130 2,130

Deferred financing costs, net 145 —

Deferred leasing cost

Leases in place intangible

Straight line rent receivable 459 —

Deferred leasing costs, net 374 387

Acquired in-place lease intangible, net 549 568

Goodwill 391 391

Intangible asset – trade name 130 130

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Total $ 7,049 $ 6,164

The estimated annual amortization of acquired in-place lease intangible is $ 57,000 per year.

The estimated annual amortization of deferred leasing costs is $ 39,000 per year.

Lines of Credit, Mortgage Payable and Churchill Facility

Line of Credit – Needham Bank

The Company has maintained a Credit and Security Agreement (the “Credit Agreement”) with Needham Bank, a Massachusetts co-operative bank, as the administrative agent (“Needham”) for the lenders party thereto (the “Lenders”) with respect to revolving credit facility (“Needham Credit Facility”) with commitments of $ 50.0 million and $ 65.0 million, subject to borrowing base limitations and covenant compliance, at March 31, 2025 and December 31, 2024, respectively.

On March 20, 2025, the Company entered into a new Credit Agreement with Needham Bank, replacing the prior Needham Credit Facility, which was fully repaid and terminated on the same date.

The new facility matures on March 2, 2026, and includes an option to extend the term by one year upon satisfaction of certain conditions.

Under the new agreement, SN Holdings LLC (“SN Holdings”), a wholly owned subsidiary of the Company, serves as the borrower, and the Company, Sachem Capital Corp., serves as guarantor of all obligations.

On March 20, 2025, the Company entered into a new Credit Agreement with Needham, replacing the prior Needham Credit Facility, which was fully repaid and terminated on the same date.

The 2025 Needham Credit Facility matures on March 2, 2026, and includes an option to extend the term by one year upon satisfaction of certain conditions.

Under the new agreement, SN Holdings, a wholly owned subsidiary of the Company, serves as the borrower, and the Company serves as guarantor of all obligations.

The 2025 Needham Credit Facility is secured by a first priority lien on all the assets of SN Holdings, and includes a requirement that SN Holdings maintain assets equal to at least two times the outstanding principal balance under the facility.

In addition, SN Holdings is required to collaterally assign to Needham Bank a portfolio of mortgage loans with an outstanding principal balance of no less than the greater of $ 30.0 million or the full drawn balance on the facility.

In addition, SN Holdings is required to collaterally assign to Needham a portfolio of mortgage loans with an outstanding principal balance of no less than the greater of $ 30.0 million or the full drawn balance on the facility.

The Company, as guarantor, has also granted Needham a blanket lien on substantially all of its assets, with the ability to request lien releases to facilitate other financings.

3 unchanged sentences

and (C) an Asset Coverage Ratio (as defined) of at least 150 %.

As of March 31, 2025 and December 31, 2024, the total outstanding principal balances on the respective Needham Credit Facilities were $ 36.1 million and $ 40.0 million, respectively, with interest rates of 7.25 % and 7.25 %, respectively.

As of June 30, 2025 and December 31, 2024, the total outstanding principal balances on the respective Needham Credit Facilities were $ 26.2 million and $ 40.0 million, respectively, with interest rates of 7.25 % and 7.25 %, respectively.

Loans under the 2025 Needham Credit Facility accrue interest at the greater of (i) the annual rate of interest equal to the “prime rate,” as published in the “Money Rates” column of The Wall Street Journal minus one-quarter of one percent ( 0.25 %), and (ii) four and one-half percent ( 4.50 %).

Interest is paid monthly.

All outstanding revolving loans and accrued but unpaid interest is due and payable on the expiration date.

As of March 31, 2025, SN Holdings had $ 72.9 million of assets pledged to Needham.

The Company was in compliance with all facility covenants as of March 31, 2025.

All outstanding revolving loans and accrued

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

but unpaid interest are due and payable on the maturity date.

As of June 30, 2025, SN Holdings had $ 78.9 million of assets pledged to Needham.

The Company was in compliance with all facility covenants as of June 30, 2025.

Mortgage Payable– New Haven Bank

The Company has financed its headquarters property located at 568 East Main Street, Branford, Connecticut with New Haven Bank with an adjustable-rate first lien non-recourse mortgage loan in the original principal amount of $ 1.7 million (the “NHB Mortgage”).

The loan accrues interest at an initial rate of 5.75 % per annum for the first 60 months .

The Company has financed its headquarters property located at 568 East Main Street, Branford, Connecticut with an adjustable-rate first lien non-recourse mortgage loan from New Haven Bank in the original principal amount of $ 1.7 million (the “NHB Mortgage”).

The NHB Mortgage accrues interest at an initial rate of 5.75 % per annum for the first 60 months.

The interest rate will be adjusted on each of March 1, 2028, and March 1, 2033, to the then published 5 -year Federal Home Loan Bank of Boston Classic Advance Rate, plus 1.75 %.

Beginning on April 1, 2023, and through March 1, 2038, principal and interest will be due and payable on a monthly basis.

All payments under the loan are amortized based on a 20 -year amortization schedule.

Over the next five years, the Company is scheduled to make principal payments ranging from approximately $ 51,000 to $ 64,000 annually, with the remaining balance due thereafter.

All payments under the NHB Mortgage are amortized based on a 20 -year amortization schedule.

Over the next five years, the Company is scheduled to make principal payments of approximately $ 50,000 to $ 64,000 annually.

The unpaid principal amount of the loan and all accrued and unpaid interest are due and payable in full on March 1, 2038.

As of March 31, 2025 and December 31, 2024, the total outstanding principal balance on the NHB Mortgage was $ 1.0 million and $ 1.0 million, respectively.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

As of June 30, 2025 and December 31, 2024, the total outstanding principal balance on the NHB Mortgage was $ 1.0 million and $ 1.0 million, respectively.

Churchill MRA Funding I LLC Repurchase Financing Facility

On July 21, 2021, the Company consummated a $ 200 million master repurchase financing facility (“Churchill Facility”) with Churchill MRA Funding I LLC (“Churchill”), a subsidiary of Churchill Real Estate, a vertically integrated real estate finance company based in New York, New York.

The Company uses the proceeds from the Churchill Facility to finance the continued expansion of its lending business and for general corporate purposes.

Under the terms of the Churchill Facility, the Company has the right, but not the obligation, to sell mortgage loans to Churchill, and Churchill has the right, but not the obligation, to purchase those loans.

4 unchanged sentences

The cost of capital under the Churchill Facility is equal to the sum of (a) the greater of (i) 0.25 % and (ii) the 90-day SOFR (which replaced the 90-day LIBOR) plus (b) 3 %- 4 %, depending on the aggregate principal amount of the mortgage loans held by Churchill at that time.

As of March 31, 2025 and December 31, 2024, the effective interest rate charged under the facility was 8.31 % and 8.69 %, respectively.

As of June 30, 2025 and December 31, 2024, the effective interest rate charged under the facility was 8.32 % and 8.69 %, respectively.

The Churchill Facility is subject to other terms and conditions, including representations and warranties, covenants and agreements typically found in these types of financing arrangements.

3 unchanged sentences

The Company then has an additional 180 days after termination to repurchase all the mortgage loans held by Churchill.

The Company uses the proceeds from the Churchill Facility to finance the continued expansion of its lending business and for general corporate purposes.

The following table summarizes the outstanding balances under the Churchill Facility agreement:

March 31, 2025

December 31, 2024

(in thousands)

The following table summarizes the outstanding balances under the Churchill Facility:

June 30, 2025 December 31, 2024

Outstanding Rate Total

Outstanding Rate

(in thousands) (in thousands)

Repurchase Agreement $ 14,442 8.32 % $ 33,708 8.69 %

The following table summarizes loans held for investment pledged as collateral under the Churchill Facility agreement:

March 31, 2025

December 31, 2024

Total Carrying Value

Total $ 14,442 $ 33,708

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

The following table summarizes loans held for investment pledged as collateral under the Churchill Facility:

June 30, 2025 December 31, 2024

Total Carrying Value

Loans Pledged

Number of Loans

Loans Pledged

Number of Loans

(in thousands)

Loans Pledged Number of Loans Total Carrying Value

Loans Pledged Number of Loans

(in thousands) (in thousands)

Loans held for investment sold under the repurchase agreement $ 34,144 10 $ 66,365 17

The following table summarizes the contractual maturities for loans held for investment sold under the repurchase agreement:

March 31, 2025

December 31, 2024

Total $ 34,144 $ 66,365

The following table summarizes the contractual maturities for loans held for investment sold under the Churchill Facility agreement:

June 30, 2025 December 31, 2024

(in thousands)

Maturing within 1 year

After 1 but within 2 years

Maturing within one year $ 27,174 $ 56,050

After one but within two years 6,970 10,315

Total $ 34,144 $ 66,365

The NHB Mortgage and the Churchill Facility contain cross-default provisions.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Unsecured Notes Payable

At March 31, 2025, the Company had an aggregate of $ 230.2 million of unsecured, unsubordinated notes payable outstanding, net of $ 3.2 million of deferred financing costs (collectively, the “Notes”).

At March 31, 2025, the Company had five series of Notes outstanding:

At June 30, 2025, the Company h ad an aggregate of $ 230.2 million of unsecured, unsubordinated notes payable outstanding, net of deferred financing costs (collectively, the “Notes”).

At June 30, 2025, the Company had five series of Notes outstanding:

(i) Notes having an aggregate principal amount of $ 56.3 million bearing interest at 7.75 % per annum and maturing September 30, 2025 (the “September 2025 Notes”);

8 unchanged sentences

The Company may redeem the Notes, in whole or in part, without premium or penalty, at any time after their second anniversary of issuance upon at least 30 days prior written notice to the holders of the Notes.

The redemption price will be equal to the outstanding principal amount of the Notes redeemed plus the accrued but unpaid interest thereon up to, but not including the date of redemption.

The redemption price will be

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

equal to the outstanding principal amount of the Notes redeemed plus the accrued but unpaid interest thereon up to, but not including the date of redemption.

Currently, all the Notes are callable at any time.

The following are the future principal payments on the notes payable as of March 31, 2025:

Years ending December 31,

The following are the future principal payments on the notes payable as of June 30, 2025:

Years ending December 31, Amount

(in thousands)

2025 (remaining nine months)

2025 (remaining six months) $ 56,364

Total principal payments $ 230,239

1 unchanged sentence

Total notes payable, net of deferred financing costs $ 227,498

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

The estimated amortization of the deferred financing costs as of March 31, 2025 is as follows:

Years ending December 31,

The estimated amortization of the deferred financing costs as of June 30, 2025 is as follows:

Years ending December 31, Amount

(in thousands)

2025 (remaining nine months)

2025 (remaining six months) $ 837

Total deferred costs $ 2,741

Secured Notes Payable

On June 11, 2025, Holdings, an indirect, wholly-owned subsidiary of the Company, consummated a private placement of $ 100.0 million aggregate principal amount of Senior Secured Notes due June 11, 2030 (the "Senior Secured Notes") to various institutional investors under a Note Purchase and Guaranty Agreement (the "Agreement").

An initial draw of $ 50.0 million was made at closing, and the remaining $ 50.0 million may be drawn at any time on or prior to May 15, 2026.

The Senior Secured Notes bear interest at a fixed rate of 9.875 % per annum, with interest only payable quarterly on the 1st day of March, June, September and December, and include a commitment fee of 1.0 % on the undrawn portion of the Senior Secured Notes.

The Company paid an approximately $ 1.5 million original issue discount on the $ 100.0 million aggregate principal amount which is part of the $ 3.6 million of deferred financing costs recorded related to the Senior Secured Notes.

The deferred financing costs will be amortized over the five year term of the Senior Secured Notes at $ 0.7 million per year.

The Senior Secured Notes allow optional prepayment subject to a declining make-whole amount during the first three years , a declining prepayment premium in the fourth year, and then no make-whole payment or prepayment premium after the fourth year through maturity.

Upon a change of control, holders of the Senior Secured Notes have the right to prepayment, if accepted, at 101 % of the outstanding principal.

The Agreement contains affirmative and negative covenants customary for similar secured debt instruments, including:

•Minimum asset coverage ratio,

•Leverage and liquidity requirements,

•Restrictions on additional indebtedness, asset sales, and distributions under certain conditions, and

•Maintenance of REIT status by the Company.

The Agreement includes customary events for similar secured debt instruments.

Payment of the amounts due on the Senior Secured Notes is fully and unconditionally guaranteed by the Company and Sachem Capital Corporation Intermediate, LLC, a wholly-owned subsidiary of the Company.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Accounts Payable and Accrued Liabilities

As of March 31, 2025 and December 31, 2024, accounts payable and accrued liabilities include the following:

March 31, 2025

December 31, 2024

As of June 30, 2025 and December 31, 2024, accounts payable and accrued liabilities include the following:

June 30, 2025 December 31, 2024

(in thousands)

2 unchanged sentences

Accrued interest 625 525

Total $ 3,486 $ 4,377

Fee Income from Loans

For the three months ended March 31, 2025 and 2024, fee and other income consisted of the following:

Three Months Ended

(in thousands)

For the three and six months ended June 30, 2025 and 2024, fee income from loans consisted of the following:

Three Months Ended Six Months Ended

June 30, June 30,

2025 2024 2025 2024

(in thousands) (in thousands)

Origination and modification fees $ 761 $ 1,194 $ 1541 $ 2,656

3 unchanged sentences

Construction servicing fees 104 70 241 249

Legal fees 71 75 134 157

Other fees 474 211 541 672

Total $ 1,771 $ 2,083 $ 3,196 $ 4,699

Commitments and Contingencies

Unfunded Commitments

At March 31, 2025, the Company had future funding obligations on loans held for investment totaling $ 46.4 million and obligations relating to investments in limited liability companies totaling $ 4.8 million, which can be drawn by the borrowers when the conditions relating thereto have been satisfied.

At June 30, 2025, the Company had future funding obligations on loans held for investment totaling $ 54.6 million and obligations relating to investments in limited liability companies totaling $ 2.4 million, which can be drawn by the borrowers when the conditions relating thereto have been satisfied.

The unfunded commitments will be funded from loan payoffs and additional drawdowns under existing and future credit facilities and proceeds from sale of debt and equity securities.

The Company’s unfunded commitments are subject to allowances under the scope of CECL, see Note 4 – Loans and Allowance for Credit Losses for further details.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

The Company’s unfunded commitments are subject to accounting rules relating to allowances for credit losses.

(See Note 4 – Loans and Allowance for Credit Losses for further details.)

The Company is subject to various pending and threatened legal proceedings or other matters arising out of the normal conduct of business in which claims for monetary damages are asserted.

5 unchanged sentences

This is based on information currently available to the Company and involves elements of judgment and significant uncertainties.

While the Company does not believe that the outcome of pending or threatened litigation or other matters will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

While the Company does not believe that the outcome of pending or threatened litigation or other matters

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

In addition, regardless of the ultimate outcome of any such legal proceeding, inquiry or investigation, any such matter could cause the Company to incur additional expenses, which could be significant, and possibly material, to the Company’s results of operations in any future period.

1 unchanged sentence

The Company actively monitors these actions and, in all cases, believes there remains sufficient value in the subject property to assure that no loan impairment exists.

At March 31, 2025, there were two such properties.

The unpaid principal balance on the properties that are subject to these proceedings was $ 1.9 million.

At June 30, 2025, there were two such properties.

The unpaid principal balance of the loans secured by the properties that are subject to these proceedings was $ 1.9 million.

Related Party Transactions

2 unchanged sentences

The terms of such loans, including the interest rate, income, origination fees, and other closing costs are the same as those applicable to loans made to unrelated third parties in the portfolio.

As of March 31, 2025, and December 31, 2024, loans to known shareholders totaled $ 17.2 million and $ 17.2 million, respectively, which is included in loans held for investment, net in the Company’s accompanying condensed consolidated balance sheets.

Of the $ 17.2 million and $ 17.2 million loans to known shareholders as of March 31, 2025 and December 31, 2024, respectively, $ 16.9 million and $ 17.0 million, respectively, related to Mod 21, LLC, which is a wholly owned entity of the Company’s Senior Vice President of Asset Management and Vice President of Asset Management.

All such loans are performing and interest income earned on all related party loans for the three months ended March 31, 2025 and 2024 totaled $ 0.3 million and $ 0.6 million, respectively.

As of June 30, 2025, and December 31, 2024, loans to known shareholders totaled $ 19.2 million and $ 17.2 million, respectively, which is included in loans held for investment, net in the Company’s accompanying Condensed Consolidated Balance Sheets.

Of these amounts, $ 18.9 million and $ 17.0 million, respectively, were loaned to a wholly owned entity of the Company’s Senior Vice President of Asset Management and Vice President of Asset Management.

All such loans are performing.

Interest income earned on all related party loans for the three and six months ended June 30, 2025 totaled $ 0.3 million and $ 0.8 million, respectively.

Interest income earned on all related party loans for the three and six months ended June 30, 2024 totaled $ 0.5 million and $ 1.1 million, respectively.

In December 2021, the Company hired the daughter of the Company’s chief executive officer to perform certain internal audit and compliance services.

For the three months ended March 31, 2025 and 2024, she received compensation of $ 43,269 and $ 37,500 , respectively.

For the three and six months ended June 30, 2025, she received compensation of $ 60,587 and $ 103,857 , respectively.

For the three and six months ended June 30, 2024, she received compensation of $ 37,500 and $ 74,792 , respectively.

Stock-Based Compensation and Employee Benefits

1 unchanged sentence

On October 27, 2016, the Company adopted the 2016 Equity Compensation Plan (the “Plan”), the purpose of which is to align the interests of the Company’s officers, other employees, advisors and consultants or any subsidiary, if any, with those of the Company’s shareholders and to afford an incentive to such officers, employees, consultants and advisors to continue as such, to increase their efforts on the Company’s behalf and to promote the success of the Company’s business.

The Plan is administered by the Compensation Committee.

The maximum number of Common Shares reserved for the grant of awards under the Plan is 1,500,000 , subject to adjustment as provided in Section 5 of the Plan.

The number of securities remaining available for future issuance under the Plan as of March 31, 2025 was 436,762 .

The Plan is administered by the Company's Compensation Committee (the "Compensation Committee").

The maximum number of Common Shares reserved for the grant of awards under the Plan was 1,500,000 , subject to adjustment as provided in Section 5 of the Plan.

The number of securities remaining available for future issuance under the Plan as of June 30, 2025 was 435,054 .

The number of shares issuable to any one individual in a plan year is also limited to 100,000 shares, subject to adjustment as provided for in the Plan.

On July 9, 2025, the Company adopted the 2025 Omnibus Incentive Plan (the "2025 Plan"), which replaced the Plan.

The purpose of the 2025 Plan is consistent with that of the Plan and the maximum number of Common Shares reserved for grant of awards under the 2025 Plan is 2,936,762 .

No additional awards will be made under the Plan.

During the six months ended June 30, 2025 and 2024, the Company granted an aggregate of 767,668 and 111,857 , respectively, restricted Common Shares under the Plan.

Of the 767,668 shares granted during the six months ended June 30, 2025, a grant of 420,168 shares was rescinded immediately after the grant as discussed further below.

On March 10, 2025, the Compensation Committee authorized (i) a grant of 420,168 restricted Common Shares to John L.

Villano, which shares had a fair market value on the date of grant of approximately $ 0.5 million;

and (ii) a one-

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

During the three months ended March 31, 2025 and 2024, the Company granted an aggregate of 767,668 and 111,857 , respectively, restricted Common Shares under the Plan.

Such shares during the three months ended March 31, 2025 and 2024 had a fair value of $ 0.9 million and $ 0.5 million, respectively.

Of the 767,668 shares granted, 420,168 shares were forfeited immediately as discussed further below.

On March 10, 2025, the Company’s Compensation Committee authorized (i) a grant of 420,168 restricted Common Shares to John L.

Villano, which shares had a fair market value on the date of grant of approximately $ 0.5 million;

and (ii) a one-time bonus grant of 20,000 restricted Common Shares to each of the Company’s non-employee directors, Arthur Goldberg, Brian Prinz, Leslie Bernhard and Jeffery Walraven.

Each of the Company’s non-employee directors, with the except for Mr.

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

time bonus grant of 20,000 restricted Common Shares to each of the Company’s directors other than Mr.

Each of the grantees, except for Mr.

Walraven, also had the option, at his or her election, to receive the fair market value equivalent of his or her grant in a lump sum cash payment of $ 23,800 .

An aggregate of 60,000 restricted Common Shares were granted to the Company’s non-employee directors, which shares had an aggregate fair market value on the date of grant of approximately $ 71,400 .

Bernhard elected to receive the lump sum cash payment.

The Company identified subsequent to the above March 10, 2025 action of the Company’s Compensation Committee regarding authorization of issuance of 420,168 share of restricted stock to John L.

Villano under the effective 2016 Equity Compensation Plan that it had over authorized on the total issuance by 320,168 shares.

The over issuance is a result of a specified limitation in the Plan that no more than 100,000 shares of restricted Common Shares may be made subject to awards to a single individual in a single plan year, subject to adjustments as provided.

No identified adjustment provisions were deemed applicable.

In result of this identification it was also determined that in calendar 2023 and 2024 there were additional similar over issuances of 30,890 and 11,857 , respectively.

In total there were 362,915 restricted shares which have been issued in excess of Plan limitations, all of which still remain unvested and restricted.

No other plan years have identified any additional over issuances.

In an immediate full and in excess of necessary remediation of this matter on March 25, 2025, John L.

Villano voluntarily forfeited the 420,168 shares that were granted on March 10, 2025.

Stock-based compensation for the three months ended March 31, 2025 and 2024 was $ 0.3 million and $ 0.2 million, respectively.

As of March 31, 2025, there was unrecognized stock-based compensation expense of $ 0.9 million.

Additionally, during the three months ended March 31, 2025, the Company had 2,667 of unvested restricted Common Shares forfeited to the Company as a result of the resignation of a former employee.

One director elected the cash option.

Subsequent to the Compensation Committee's action on March 10, 2025, authorizing the issuance of 420,168 shares of restricted stock to John L.

Villano under the Plan, the Company realized that the grant exceeded the 100,000 share limit on grants to any single individual in any one year set forth in the Plan by 320,168 shares.

In addition, upon further investigation, the Company determined that restricted stock grants made to Mr.

Villano with respect to calendar years 2023 and 2024, exceeded the Plan's 100,000 share limit by 30,890 and 11,857 shares, respectively.

Thus, in the aggregate, 362,915 restricted shares were issued in excess of Plan limitations.

All such shares were unvested and subject to restriction.

In an immediate full and in excess of necessary remediation of this matter, on March 24, 2025, the Compensation Committee rescinded the March 10, 2025 award to Mr.

Villano ab initio.

No other over issuances have been identified and no applicable adjustment have been identified.

Stock-based compensation for the three and six months ended June 30, 2025 was $ 0.2 million and $ 0.4 million, respectively.

Stock-based compensation for the three and six months ended June 30, 2024 was $ 0.2 million and $ 0.4 million, respectively.

As of June 30, 2025, there was unrecognized stock-based compensation expense of $ 0.9 million.

Employee Benefits

3 unchanged sentences

Under the terms of the 401(k) Plan, the Company is obligated to contribute 3 % of a participant’s compensation to the 401(k) Plan on behalf of an employee-participant.

For the three months ended March 31, 2025 and 2024, the 401(k) Plan expense was $ 24,293 and $ 48,210 , respectively, which is included within compensation, fees, and taxes in the accompanying condensed consolidated statements of comprehensive income.

For the three and six months ended June 30, 2025, the 401(k) Plan expense was $ 23,655 and $ 60,147 , respectively, and for the three and six months ended June 30, 2024, the 401(k) Plan expense was $ 27,252 and $ 75,462 , respectively, which is included within compensation and employee benefits in the accompanying Condensed Consolidated Statements of Operations.

On August 24, 2022, the Company filed a prospectus supplement to its Form S-3 Registration Statement covering the sale of up to $ 75.0 million of its Common Shares and shares of its Series A Preferred Stock with an aggregate liquidation preference of up to $ 25.0 million in an “at-the market” offering (the “ATM Offering”).

On June 17, 2024, the Company filed a new prospectus supplement (the “New Prospectus Supplement”) which modified the ATM Offering by reducing the amount of Common Shares the Company may offer and sell to up to an aggregate of $ 48.7 million, including the Common Shares the Company has already sold in the ATM Offering prior to the date of the New Prospectus Supplement.

On June 17, 2024, the Company filed a new prospectus supplement (the “New Prospectus Supplement”) which modified the ATM Offering by reducing the amount of Common Shares the Company may offer and sell up to an aggregate of $ 48.7 million, including the Common Shares the Company has already sold in the ATM Offering prior to the date of the New Prospectus Supplement.

All the other terms of the ATM Offering remained the same.

During the three months ended March 31, 2025, the Company did not sell any shares under the ATM Offering.

In February 2025, the effectiveness of the S-3 Registration Statement expired and, as a result, the ATM Offering terminated.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

During the six months ended June 30, 2025, the Company did not sell any shares under the ATM Offering.

In October 2022, the Board adopted a stock repurchase plan (the “Original Repurchase Plan”), pursuant to which the Company may repurchase up to an aggregate of $ 7.5 million of its Common Shares.

3 unchanged sentences

Under the New Repurchase Plan, the Company may repurchase up to an aggregate of $ 5,802,959 (the amount remaining under the Original Purchase Plan) of Common Shares and share repurchases will be made from time to time on the open market at prevailing market prices in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act.

During the three months ended March 31, 2025, the Company did not repurchase any Common Shares under the New Repurchase Plan.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Earnings (Losses) Per Share

Basic and diluted earnings (losses) per share are calculated in accordance with FASB ASC 260 (Earnings Per Share).

Basic and diluted earnings (lo sses) per share are calculated in accordance with FASB ASC 260 (Earnings Per Share).

Under FASB ASC 260, basic earnings per share is computed by dividing net income (loss) available to the common shareholders by the weighted-average number of Common Shares outstanding for the period.

1 unchanged sentence

The numerator in calculating both basic and diluted earnings (losses) per common share for each period is the reported net income (loss) available to common shareholders.

For the three months ended March 31, 2025, the Company had basic and diluted weighted average Common Shares of 46,784,744 outstanding, resulting in basic and diluted loss per share of $ 0.00 .

For the three months ended March 31, 2024, the Company had basic and diluted weighted average Common Shares of 47,128,511 outstanding, resulting in basic and diluted earnings per share of $ 0.08 .

For the three and six months ended June 30, 2025, the Company had basic and diluted weighted average Common Shares outstanding of 46,875,187 and 46,830,215 , respectively, resulting in basic and diluted earnings per share of $ 0.02 and $ 0.01 , respectively.

For the three and six months ended June 30, 2024, the Company had basic and diluted weighted average Common Shares outstanding of 47,504,875 and 47,415,630 , respectively, resulting in basic and diluted loss per share of $ 0.09 and $ 0.01 , respectively.

Limited Liability Company (“LLC”) Investments

The following table details the carrying value of each investment reflected on our condensed consolidated balance sheets as of March 31, 2025:

March 31, 2025

December 31, 2024

Ownership Percentage

(in thousands)

The following table details the carrying value of each investment reflected on our Condensed Consolidated Balance Sheets as of June 30, 2025:

June 30, 2025 December 31, 2024

Investment Carrying

Value Ownership Percentage Carrying

Value Ownership Percentage

(in thousands) (in thousands)

Shem Creek Capital Fund V LLC $ 1,112 7.6 % $ 1,143 7.6 %

5 unchanged sentences

Shem Creek Capital LLC 5,000 20.0 % 2,500 20.0 %

Total Shem LLC Invemestments

Total Shem LLC Investments $ 46,210 $ 51,442

Cordo CLT Investors LLC $ 2,500 7.2 % $ 2,500 7.2 %

1 unchanged sentence

Shem Creek (“Shem”)

For the three months ended March 31, 2025 and 2024, the Shem LLC investments generated $ 2.1 million and $ 1.2 million, respectively, of income for the Company.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025

At March 31, 2025, the Company had unfunded commitments totaling $ 4.8 million in the Shem LLC entities.

For the three and six months ended June 30, 2025, the Shem LLC investments generated $ 1.0 million and $ 3.0 million, respectively, of income for the Company.

For the three and six months ended June 30, 2024, the Shem LLC investments generated $ 1.2 million and $ 2.4 million, respectively, of income for the Company.

At June 30, 2025, the Company had unfunded commitments totaling $ 2.4 million to the Shem LLC entities.

Cordo CLT Investors LLC

In September 2024, the Company, through its wholly owned subsidiary Urbane Capital, LLC, initially acquired a 21.6 % interest in Cordo CLT Investors LLC for a one time contribution of $ 2.5 million.

As of March 31, 2025 and December 31, 2024, the Company held 7.2 % and 7.2 %, respectively, of total common member equity.

In September 2024, the Company, through its wholly owned subsidiary Urbane Capital, LLC, acquired a 21.6 % interest in Cordo CLT Investors LLC for a one time contribution of $ 2.5 million.

As of June 30, 2025 and December 31, 2024, the Company held 7.2 % of total common member equity.

This entity was formed for the sole purpose of developing a commercial multifamily property in Charlotte, North Carolina.

The Company anticipates the project to be completed by the end of 2026.

The Company anticipates the project construction to be completed by the end of 2026, with monetization of the Company's investment in the first half of 2028 upon rent stabilization of the project.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

The Company believes it qualifies as a real estate investment trust (“REIT”) for federal income tax purposes and operates accordingly.

9 unchanged sentences

The TRSs generate income, resulting in federal and state income tax liability for these entities.

During the three months ended March 31, 2025 and 2024, the Company’s TRSs recognized provisions for federal and state income tax of $ 0.0 million and $ 0.2 million, respectively, which is represented in Other expenses on the Company’s condensed consolidated statements of operations.

For the three and six months ended June 30, 2025, the Company’s TRSs recognized provisions for federal and state income tax of $ 0 and $ 0 , respectively, and for the three and six months ended June 30, 2024, the Company’s TRSs recognized provisions for federal and state income tax of $ 0 and $ 0.2 million, respectively,which is represented in other expenses on the Company’s Condensed Consolidated Statements of Operations.

The income tax provision for the Company differs from the amount computed from applying the statutory federal income tax rate to income before income taxes due to non-taxable REIT income and other permanent differences including the non-deductibility of acquisition costs of business combinations for federal income tax reporting.

2 unchanged sentences

The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in interest expense.

The Company has determined that there are no uncertain tax positions requiring accrual or disclosure in the accompanying condensed consolidated financial statements as of March 31, 2025 and December 31, 2024.

The Company has determined that there are no uncertain tax positions requiring accrual or disclosure in the accompanying condensed consolidated financial statements as of June 30, 2025 and December 31, 2024.

Subsequent Events

The Company evaluated subsequent events from April 1, 2025 until the financial statements were available to be issued.

The Company evaluated subsequent events from July 1, 2025 until the condensed consolidated financial statements were available to be issued.

Based on the evaluation, no adjustments were required in the accompanying condensed consolidated financial statements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements