What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-05 compared with 2025-08-05 · 266 added, 249 removed, 656 unchanged (44% of the section changed)

3 unchanged sentences

(dollars in thousands, except share data)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(unaudited) (audited)

31 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 June 30, 2025 and December 31, 2024

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

47,691,121 and 46,965,306 issued and outstanding at September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 257,600 256,956

7 unchanged sentences

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

11 unchanged sentences

Change in valuation allowance related to loans held for sale 33 — ( 1,014 ) —

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

Impairment loss on real estate owned 185 320 185 397

Loss (gain) on sale of real estate owned and property and equipment, net 312 ( 30 ) 181 ( 294 )

Other expenses 447 339 1,287 1,205

Total operating expenses 12,367 19,607 32,489 50,400

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

Operating (loss) income ( 367 ) ( 4,822 ) 1,728 ( 3,665 )

Other income, net

Gain on equity securities 821 61 696 458

Gain (loss) on equity securities 1,364 ( 229 ) 2,060 229

Total other income, net 1,364 ( 229 ) 2,060 229

1 unchanged sentence

Preferred stock dividends ( 1,117 ) ( 1,095 ) ( 3,352 ) ( 3,187 )

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 )

Net (loss) income attributable to common shareholders $ ( 120 ) $ ( 6,146 ) $ 436 $ ( 6,623 )

Basic and diluted (loss) earnings per common share $ 0.00 $ ( 0.13 ) $ 0.01 $ ( 0.14 )

Basic and diluted weighted average number of common shares outstanding 46,902,151 47,339,635 46,854,457 47,390,113

3 unchanged sentences

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

10 unchanged sentences

(dollars in thousands, except share data)

FOR THE THREE MONTHS ENDED JUNE 30, 2025

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025

Preferred Shares Common Shares Additional

5 unchanged sentences

Shares Amount Shares Amount

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

Balance, July 1, 2025 2,306,748 $ 2 47,310,139 $ 47 $ 257,384 $ — $ 38,309 $ ( 117,835 ) $ 177,907

Stock-based compensation, less shares forfeited — — 380,982 1 216 — — — 217

2 unchanged sentences

Net income — — — — — — 997 — 997

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

Balance, September 30, 2025 2,306,748 $ 2 47,691,121 $ 48 $ 257,600 $ — $ 39,306 $ ( 121,338 ) $ 175,618

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024

Preferred Shares Common Shares Additional

5 unchanged sentences

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

Balance, July 1, 2024 2,206,128 $ 2 47,547,051 $ 48 $ 255,928 $ — $ 76,704 $ ( 102,514 ) $ 230,168

Issuance of Series A Preferred Stock, net of expenses 73,696 — — — 1,541 — — — 1,541

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

Stock buyback — — ( 535,369 ) ( 1 ) ( 1,372 ) — — — ( 1,373 )

Stock-based compensation — — ( 333 ) — 213 — — — 213

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

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

Dividends paid on Series A Preferred Stock — — — — — — — ( 1,095 ) ( 1,095 )

1 unchanged sentence

Net loss — — — — — — ( 5,051 ) — ( 5,051 )

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

Balance, September 30, 2024 2,279,824 $ 2 47,011,349 $ 47 $ 256,310 $ — $ 71,653 $ ( 107,405 ) $ 220,607

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.

2 unchanged sentences

(dollars in thousands, except share data)

FOR THE SIX MONTHS ENDED JUNE 30, 2025

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

Preferred Shares Common Shares Additional

10 unchanged sentences

Net income — — — — — — 3,788 — 3,788

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

Balance, September 30, 2025 2,306,748 $ 2 47,691,121 $ 48 $ 257,600 $ — $ 39,306 $ ( 121,338 ) $ 175,618

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

Preferred Shares Common Shares Additional

8 unchanged sentences

Issuance of common shares, net of expenses — — 568,711 1 2,049 — — — 2,050

Stock buyback — — ( 535,369 ) ( 1 ) ( 1,372 ) — — — ( 1,373 )

Stock-based compensation — — 212,524 — 650 — — — 650

4 unchanged sentences

Net income — — — — — — ( 3,436 ) — ( 3,436 )

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

Balance, September 30, 2024 2,279,824 $ 2 47,011,349 $ 47 $ 256,310 $ — $ 71,653 $ ( 107,405 ) $ 220,607

2 unchanged sentences

(dollars in thousands)

Six Months Ended

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 2,791 $ 1,615

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

Net income (loss) $ 3,788 $ ( 3,436 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Amortization of deferred financing costs 1,653 1,860

4 unchanged sentences

Impairment loss on real estate owned 185 397

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

Loss (gain) on sale of real estate owned and property and equipment, net 181 ( 294 )

Gain on extinguishment of debt ( 140 ) —

Gain on equity securities ( 2,060 ) ( 229 )

14 unchanged sentences

Proceeds from sale of real estate owned 3,282 2,008

Acquisitions of and improvements to real estate owned ( 235 ) —

Purchase of property and equipment ( 55 ) 26

2 unchanged sentences

Principal collections on loans 112,045 135,265

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

NET CASH PROVIDED BY INVESTING ACTIVITIES 1,589 44,262

CASH FLOWS FROM FINANCING ACTIVITIES

9 unchanged sentences

Payments of deferred financing costs ( 3,590 ) —

Repurchase of common shares — ( 1,373 )

Proceeds from issuance of common shares, net of expenses — 2,050

Proceeds from issuance of Series A Preferred Stock, net of expenses — 5,157

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

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

NET CASH USED IN FINANCING ACTIVITIES ( 14,107 ) ( 64,489 )

NET DECREASE IN CASH AND CASH EQUIVALENTS ( 6,894 ) ( 6,717 )

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

4 unchanged sentences

(dollars in thousands)

Six Months Ended

Nine months ended

September 30,

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION

Cash paid during the period for interest $ 17,072 $ 19,852

Cash paid during the period for income tax $ 201 $ 140

Real estate acquired in connection with foreclosure of certain mortgages $ 17,185 $ —

1 unchanged sentence

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

Developmental real estate transferred from real estate owned $ 4,250 $ —

Loans originated from sale of real estate owned $ 840 $ —

2 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 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 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.

Results of operations for the three and nine months ended September 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

2 unchanged sentences

Actual amounts could differ from those estimates.

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

Significant estimates include the provisions for Current Expected Credit Losses ("CECL"), as described in Note 4 below, 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.

5 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 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 Company.

1 unchanged sentence

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.

As of September 30, 2025, SN Holdings had total assets of $ 90.6 million and total liabilities of $ 36.0 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 2025 Needham Credit Facility.

2 unchanged sentences

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.

Holdings is a VIE under the guidance of FASB 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.

As of September 30, 2025, Holdings had total assets of $ 206.8 million and total liabilities of $ 92.6 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

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

The following table presents assets and liabilities measured at fair value on a recurring basis:

Fair Value Measurement

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

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

Investment securities $ 1,429 $ 1,517

Loans held for sale, net 8,797 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) June 30, 2025 December 31, 2024

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

Individually evaluated loans, net of allowance for credit losses $ 77,619 $ 80,757

Real estate owned, net 18,912 18,574

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:

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

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

The following table presents the carrying amounts and fair values of financial instruments at September 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

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

Cash and cash equivalents $ 11,172 $ 18,066 $ 11,172 $ 18,066

7 unchanged sentences

Advances from borrowers 5,811 4,047 5,811 4,047

Senior secured notes payable 90,000 — 91,038 —

Mortgage payable 939 1,002 939 1,002

2 unchanged sentences

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 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 and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, June 30,

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

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

6 unchanged sentences

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

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

As of September 30, 2025 and December 31, 2024, the Company did not hold any debt securities.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

Loans and Allowance for Credit Losses

2 unchanged sentences

Loans held for investment

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.

As of September 30, 2025 and December 31, 2024, the Company had 119 and 157 loans held for investment, respectively.

As of September 30, 2025 and December 31, 2024, the Company had direct reserves on outstanding principal for loans held for investment of $ 5.5 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.

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

Nevertheless, as of September 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 $ 0.6 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:

As of December 31, 2024, the Company had designated 11 loans as held for sale.

These 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 September 30, 2025 and December 31, 2024, such loans were on non-accrual status and pending foreclosure.

The following table presents relevant data relating to the Company's loans held for sale as of September 30, 2025:

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

June 30, 2025

September 30, 2025

(in thousands)

1 unchanged sentence

Total loans held for sale, net $ 10,970 $ — $ 1,014 $ ( 3,187 ) $ 8,797

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Loan portfolio

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:

As of September 30, 2025 and December 31, 2024, loans held for investment on non-accrual status had an outstanding principal balance of $ 104.1 million and $ 87.1 million, respectively.

The non-accrual loans are inclusive of loans pending foreclosure.

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

Loans held for investment

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

As of September 30, 2025 $ 261,595 $ 9,559 $ — $ 104,066 $ 375,220

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

1 unchanged sentence

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 %.

As of September 30, 2025, the Company’s mortgage loan portfolio includes loans with stated interest rates ranging from 7.0 % 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

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

As of September 30, 2025 and December 31, 2024, the Company had one borrower representing 13.4 % and 14.0 % of the outstanding mortgage loan portfolio, or $ 50.4 million and $ 55.0 million, respectively.

These loans are included in our nonperforming loan portfolio.

The following table presents the Company’s loans held for investment portfolio by geographical location as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024

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

4 unchanged sentences

Total $ 375,220 100.0 % $ 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)

The following tables present the carrying value of the Company’s loans held for investment portfolio based on credit quality indicators in assessing estimated credit losses and vintage of origination at the dates indicated:

September 30, 2025 Year Originated (1)

FICO Score (2) (in thousands)

10 unchanged sentences

Total $ 375,220 $ 78,711 $ 41,769 $ 79,532 $ 38,506 $ 127,657 $ 9,045

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

December 31, 2024 Year Originated (1)

13 unchanged sentences

(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

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

(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.

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

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

(in thousands) Three Months Ended September 30, 2025

Carrying Value % of Total

3 unchanged sentences

Term extension $ 28,952 8.0 % A weighted average of 9.9 months were added to the life of the loans

(in thousands) Three Months Ended June 30, 2024

(in thousands) Three Months Ended September 30, 2024

Carrying Value % of Total

3 unchanged sentences

Term extension $ 16,113 3.5 % A weighted average of 5.0 months were added to the life of the loans

(in thousands) Six Months Ended June 30, 2025

(in thousands) Nine Months Ended September 30, 2025

Carrying Value % of Total

3 unchanged sentences

Term extension $ 75,269 20.8 % A weighted average of 7.9 months were added to the life of the loans

Six Months Ended June 30, 2024

(in thousands) Nine Months Ended September 30, 2024

Carrying Value % of Total

3 unchanged sentences

Term extension $ 132,602 29.0 % A weighted average of 8.4 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.

As of September 30, 2025, the Company had commitments to lend additional amounts totaling approximately $ 6.8 million to borrowers experiencing financial difficulty.

During the nine months ended September 30, 2025, the

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

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

Company modified the interest rate on thirteen loans with an outstanding principal balance of $ 30.4 million.

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

The following table 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, one loan defaulted during the period.

As of September 30, 2025

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

2 unchanged sentences

Deferred loan fees

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.

As of September 30, 2025 and December 31, 2024, the Company had $ 2.4 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 September 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 June 30, 2025:

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

The following table presents the financial statement line items that are impacted by the allowance for credit losses for the three months ended September 30, 2025:

Balance as of June 30, 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

September 30, 2025

(in thousands)

5 unchanged sentences

Total allowance for credit losses $ 23,424 $ 812 $ — $ ( 8,449 ) $ 15,787

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:

The following table presents the financial statement line items that are impacted by the allowance for credit losses for the nine months ended September 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

September 30, 2025

(in thousands)

7 unchanged sentences

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

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

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

Allowance for credit losses as of June 30, 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,

as of September 30,

(in thousands)

4 unchanged sentences

Total $ 17,645 $ ( 3,923 ) $ — $ ( 2,639 ) $ 11,083

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:

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

Allowance for credit losses as of

2 unchanged sentences

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

as of June 30,

as of September 30,

(in thousands)

4 unchanged sentences

Total $ 18,470 $ ( 6,905 ) $ 3,292 $ ( 3,774 ) $ 11,083

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

The following table presents charge-offs on loan principal related to loans held for investment by fiscal year of origination for the three months ended September 30, 2025:

2025 2024 2023 2022 2021 Prior Total

2 unchanged sentences

Total $ — $ — $ — $ 158 $ 2,481 $ — $ 2,639

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

The following table presents charge-offs on loan principal related to loans held for investment by fiscal year of origination for the nine months ended September 30, 2025:

2025 2024 2023 2022 2021 Prior Total

4 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

Investment in Developmental Real Estate, net

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

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

September 30, 2025 Cost Accumulated Depreciation Investment in Developmental

Real Estate, Net

17 unchanged sentences

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 .

During the three and nine months ended September 30, 2025, the Company acquired a developmental property for $ 1.5 million and transferred two land parcels carried at an aggregate value of $ 4.3 million from real estate owned to investments in developmental real estate.

There were no such acquisitions or transfers during the three and nine months ended September 30, 2024.

For the nine months ended September 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.

Amortization related to tenant improvements and intangibles was $ 71,000 for the nine months ended September 30, 2025 compared to no such amortization for the nine months ended September 30, 2024 .

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

4 unchanged sentences

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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:

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

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

Years Ending December 31, Amount

(in thousands)

2025 (remaining six months) $ —

2025 (remaining three 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.

The Company acquired one property in investment in developmental real estate that was subject to an in place lease during 2023.

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

2 unchanged sentences

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 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

As of September 30, 2025 and December 31, 2024, real estate owned, net totaled $ 18.9 million and $ 18.6 million, respectively.

During the nine months ended September 30, 2025, the Company recorded an impairment loss on real estate owned of $ 0.2 million 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 activity during the nine months ended September 30, 2025:

(in thousands)

1 unchanged sentence

Principal basis transferred to real estate owned 17,185

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

Investment in real estate owned 235

Charge-offs on principal transferred ( 8,344 )

Proceeds from sale of real estate owned ( 3,282 )

Real estate owned transferred to investment in developmental real estate ( 4,250 )

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

Impairment of real estate owned ( 185 )

Loss on sale of real estate owned ( 181 )

Real estate owned at September 30, 2025 $ 18,912

As of September 30, 2025, REO included $ 0.8 million of real estate held for rental and $ 18.1 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 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.

During the nine months ended September 30, 2025, the Company sold ten properties held for sale and recognized a loss on sale of $ 0.2 million.

In addition, the Company transferred two properties held for sale to investments in developmental real estate carried at an aggregate value of $ 4.3 million.

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

There were no properties

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

transferred from held for sale to investments in developmental real estate during the three and nine months ended September 30, 2024.

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.

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:

As of September 30, 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.

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

Years Ending December 31, Amount

(in thousands)

2025 (remaining six months) $ 27

2025 (remaining three months) $ 18

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

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

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

(in thousands)

15 unchanged sentences

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

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

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

September 30, 2025 December 31, 2024

(in thousands)

14 unchanged sentences

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 June 30, 2025 and December 31, 2024, respectively.

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.

8 unchanged sentences

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

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

As of September 30, 2025 and December 31, 2024, the total outstanding principal balances on the respective Needham Credit Facilities were $ 32.7 million and $ 40.0 million, respectively, with interest rates of 7.00 % and 7.25 %, respectively.

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.

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

Interest is paid monthly.

All outstanding revolving loans and accrued but unpaid interest are due and payable on the maturity date.

As of September 30, 2025, SN Holdings had $ 90.6 million of assets pledged to Needham.

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

Mortgage Payable – New Haven Bank

6 unchanged sentences

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 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.

As of September 30, 2025 and December 31, 2024, the total outstanding principal balance on the NHB Mortgage was $ 0.9 million and $ 1.0 million, respectively.

Churchill MRA Funding I LLC Repurchase Financing Facility

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

As of September 30, 2025 and December 31, 2024, the effective interest rate charged under the facility was 8.33 % 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 following table summarizes the outstanding balances under the Churchill Facility:

June 30, 2025 December 31, 2024

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

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

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

September 30, 2025 December 31, 2024

Outstanding Rate Total

2 unchanged sentences

Repurchase Agreement $ 7,825 8.33 % $ 33,708 8.69 %

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

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

September 30, 2025 December 31, 2024

Total Carrying Value

3 unchanged sentences

Loans held for investment sold under the repurchase agreement $ 30,718 7 $ 66,365 17

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

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

September 30, 2025 December 31, 2024

(in thousands)

4 unchanged sentences

Unsecured Notes Payable

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”);

(ii) Notes having an aggregate principal amount of $ 51.7 million bearing interest at 6.0 % per annum and maturing December 30, 2026 (the “December 2026 Notes”);

(iii) Notes having an aggregate principal amount of $ 51.9 million bearing interest at 6.0 % per annum and maturing March 30, 2027 (the “March 2027 Notes”);

(iv) Notes having an aggregate principal amount of $ 30.0 million bearing interest at 7.125 % per annum and maturing June 30, 2027 (the “June 2027 Notes”);

(v) Notes having an aggregate principal amount of $ 40.3 million bearing interest at 8.00 % per annum and maturing September 30, 2027 (the “September 2027 Notes”).

The Notes were sold in underwritten public offerings, were issued in denomination of $ 25.00 each and are listed on the NYSE American and trade under the symbols “SCCC,” “SCCD,” “SCCE,” “SCCF” and “SCCG,” respectively.

All the Notes were issued at par except for the last tranche of the September 2025 notes, in the original principal amount of $ 28 million, which were issued at $ 24.75 each.

At September 30, 2025, the Company h ad an aggregate of $ 173.3 million of unsecured, unsubordinated notes payable outstanding, net of deferred financing costs (collectively, the “Notes”).

At September 30, 2025, the Company had four series of Notes outstanding:

(i) Notes having an aggregate principal amount of $ 51.7 million bearing interest at 6.0 % per annum and maturing December 30, 2026 (the “December 2026 Notes”);

(ii) Notes having an aggregate principal amount of $ 51.8 million bearing interest at 6.0 % per annum and maturing March 30, 2027 (the “March 2027 Notes”);

(iii) Notes having an aggregate principal amount of $ 29.7 million bearing interest at 7.125 % per annum and maturing June 30, 2027 (the “June 2027 Notes”);

(iv) Notes having an aggregate principal amount of $ 40.1 million bearing interest at 8.00 % per annum and maturing September 30, 2027 (the “September 2027 Notes”).

The Notes were sold in underwritten public offerings, were issued in denomination of $ 25.00 each and are listed on the NYSE American and trade under the symbols “SCCD,” “SCCE,” “SCCF” and “SCCG,” respectively.

All the Notes were issued at par.

Interest on the Notes is payable quarterly on each March 30, June 30, September 30 and December 30 that they are outstanding.

So long as the Notes are outstanding, the Company is prohibited from making distributions in excess of 90 % of its taxable income, incurring any additional indebtedness or purchasing any shares of its capital stock unless it has an “Asset Coverage Ratio” of at least 150 % after giving effect to the payment of such dividend, the incurrence of such indebtedness or the application of the net proceeds, as the case may be.

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

The Company was in compliance with all

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.

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

debt covenants as of September 30, 2025.

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.

Currently, all the Notes are callable at any time.

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

The Company repaid in full the unsecured notes payable having an aggregate principal amount of $ 56.3 million which bore interest at 7.75 % per annum when they matured on September 30, 2025.

These notes previously traded on the NYSE American under the symbol "SCCC".

During the three months ended September 30, 2025, the Company repurchased and cancelled $ 0.6 million of unsecured notes payable for $ 0.5 million, resulting in a $ 0.1 million gain on extinguishment of debt which is included in other income in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2025.

The following table presents the future principal payments on the notes payable as of September 30, 2025:

Years ending December 31, Amount

(in thousands)

2025 (remaining six months) $ 56,364

2025 (remaining three months) $ —

Total principal payments $ 173,254

1 unchanged sentence

Total notes payable, net of deferred financing costs $ 171,013

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

The following table presents the estimated amortization of the deferred financing costs as of September 30, 2025:

Years ending December 31, Amount

(in thousands)

2025 (remaining six months) $ 837

2025 (remaining three months) $ 337

Total deferred costs $ 2,241

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.

Senior Secured Notes Payable

An initial draw of $ 50.0 million was made at closing, an additional draw of $ 40.0 million was made in September 2025, and the remaining $ 10.0 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 deferred financing costs will be amortized over the five year term of the Senior Secured Notes using the effective interest method and amortization by year is as follows:

2025 - $ 164,000 , 2026 - $ 609,000 , 2027 - $ 718,000 , 2028 - $ 804,000 , 2029 - $ 894,000 , and 2030 - $ 401,000 .

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.

Upon a change of control, holders of the Senior Secured Notes have the right to

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

prepayment, if accepted, at 101 % of the outstanding principal.

The Senior Secured Note Purchase 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 Company was in compliance with all debt covenants as of September 30, 2025.

The Senior Secured Note Purchase Agreement includes customary events for similar secured debt instruments.

Accounts Payable and Accrued Liabilities

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

June 30, 2025 December 31, 2024

The table below presents the Company's accounts payable and accrued liabilities as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024

(in thousands)

4 unchanged sentences

Fee Income from Loans

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,

The table below presents the Company's fee income from loans for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

10 unchanged sentences

Unfunded Commitments

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.

At September 30, 2025, the Company had future funding obligations on loans held for investment totaling $ 47.3 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.

1 unchanged sentence

(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 AND NINE MONTHS ENDED SEPTEMBER 30, 2025

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

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.

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.

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 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.

At September 30, 2025, there was one such property.

The unpaid principal balance of the loan secured by the property that is subject to these proceedings was $ 0.3 million.

In comparison, at December 31, 2024, two properties securing loans in the Company's portfolio were subject to foreclosure proceedings.

These loans had an aggregate unpaid principal balance of $ 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 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.

As of September 30, 2025, and December 31, 2024, loans to known shareholders totaled $ 20.1 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, $ 20.1 million and $ 17.0 million, respectively, were loaned to an entity owned by 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 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.

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

Interest income earned on all related party loans for the three and nine months ended September 30, 2024 totaled $ 0.3 million and $ 1.0 million, respectively.

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

For the three and nine months ended September 30, 2025, she received compensation of $ 44,683 and $ 148,540 , respectively.

For the three and nine months ended September 30, 2024, she received compensation of $ 37,500 and $ 112,292 , 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 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.

The Plan was administered by the Company's Compensation Committee (the "Compensation

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

The maximum number of the Company's common shares, par value $ 0.001 per share (the "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 shares issuable to any one individual in a plan year was 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.

The number of securities remaining available for future issuance under the 2025 Plan as of September 30, 2025 was 2,553,447 .

During the nine months ended September 30, 2025 and 2024, the Company granted an aggregate of 1,150,983 and 212,857 , respectively, restricted Common Shares under the 2025 Plan and the Plan.

Of the 1,150,983 shares granted during the nine months ended September 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 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.

and (ii) a one-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.

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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.

Subsequent to the Compensation Committee's action on March 10, 2025, authorizing the issuance of 420,168 Common Shares, subject to certain restrictions, 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.

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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.

Stock-based compensation for the three and nine months ended September 30, 2025 was $ 0.2 million and $ 0.6 million, respectively.

Stock-based compensation for the three and nine months ended September 30, 2024 was $ 0.2 million and $ 0.7 million, respectively.

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

Employee Benefits

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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 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.

For the three and nine months ended September 30, 2025, the 401(k) Plan expense was $ 27,156 and $ 87,304 , respectively, and for the three and nine months ended September 30, 2024, the 401(k) Plan expense was $ 24,762 and $ 100,223 , 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 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.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

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

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

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

During the nine months ended September 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.

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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.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

Earnings (Losses) Per Share

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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 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.

For the three and nine months ended September 30, 2025, the Company had basic and diluted weighted average Common Shares outstanding of 46,902,151 and 46,854,457 , respectively, resulting in basic and diluted (loss) earnings per Common Share of $ 0.00 and $ 0.01 , respectively.

For the three and nine months ended September 30, 2024, the Company had basic and diluted weighted average Common Shares outstanding of 47,339,635 and 47,390,113 , respectively, resulting in basic and diluted loss per Common Share of $( 0.13 ) and $( 0.14 ), 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 June 30, 2025:

June 30, 2025 December 31, 2024

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

September 30, 2025 December 31, 2024

Investment Carrying

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Total investments in LLC’s $ 41,167 $ 53,942

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

Shem Creek (“Shem”)

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.

For the three and nine months ended September 30, 2025, the Shem LLC investments generated $ 1.1 million and $ 4.1 million, respectively, of income for the Company.

For the three and nine months ended September 30, 2024, the Shem LLC investments generated $ 1.5 million and $ 3.9 million, respectively, of income for the Company.

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

In October 2025, we funded $ 0.7 million of this commitment to the Shem LLC entities.

Cordo CLT Investors LLC

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.

As of September 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 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.

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

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.

For the three and nine months ended September 30, 2025, the Company’s TRSs recognized provisions for federal and state income tax of $ 0 and $ 0 , respectively, and for the three and nine months ended September 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.

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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 June 30, 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 September 30, 2025 and December 31, 2024.

SACHEM CAPITAL CORP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

Subsequent Events

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

The Company evaluated subsequent events from October 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